Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Feb. 18, 2015 | Jul. 01, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | Texas Roadhouse, Inc. | ||
Entity Central Index Key | 1289460 | ||
Document Type | 10-K | ||
Document Period End Date | 30-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -18 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,605,959,498 | ||
Entity Common Stock, Shares Outstanding | 69,844,329 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $86,122 | $94,874 |
Receivables, net of allowance for doubtful accounts of $10 in 2014 and $4 in 2013 | 34,023 | 25,391 |
Inventories, net | 14,256 | 11,954 |
Prepaid income taxes | 421 | |
Prepaid expenses | 10,552 | 10,250 |
Deferred tax assets | 2,773 | 2,853 |
Total current assets | 147,726 | 145,743 |
Property and equipment, net of accumulated depreciation of $347,222 at December 30, 2014 and $304,536 at December 31, 2013 | 649,637 | 586,212 |
Goodwill | 116,571 | 117,197 |
Intangible assets, net | 6,203 | 7,876 |
Other assets | 23,005 | 20,616 |
Total assets | 943,142 | 877,644 |
Current liabilities: | ||
Current maturities of long-term debt | 129 | 243 |
Accounts payable | 43,585 | 38,404 |
Deferred revenue - gift cards | 79,462 | 62,723 |
Accrued wages | 30,375 | 28,994 |
Income taxes payable | 1,583 | |
Accrued taxes and licenses | 17,592 | 17,434 |
Dividends payable | 10,443 | |
Other accrued liabilities | 32,802 | 28,054 |
Total current liabilities | 215,971 | 175,852 |
Long-term debt, excluding current maturities | 50,693 | 50,990 |
Stock option and other deposits | 6,005 | 4,639 |
Deferred rent | 26,964 | 23,742 |
Deferred tax liabilities | 6,004 | 5,774 |
Other liabilities | 22,549 | 22,787 |
Total liabilities | 328,186 | 283,784 |
Texas Roadhouse, Inc. and subsidiaries stockholders' equity: | ||
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding) | ||
Common stock ($0.001 par value, 100,000,000 shares authorized, 69,628,781 and 70,352,257 shares issued and outstanding at December 30, 2014 and December 31, 2013, respectively) | 70 | 70 |
Additional paid-in-capital | 189,168 | 215,051 |
Retained earnings | 419,436 | 374,190 |
Accumulated other comprehensive loss | -782 | -1,652 |
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 607,892 | 587,659 |
Noncontrolling interests | 7,064 | 6,201 |
Total equity | 614,956 | 593,860 |
Total liabilities and equity | $943,142 | $877,644 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ||
Receivables, allowance for doubtful accounts (in dollars) | $10 | $4 |
Property and equipment, accumulated depreciation (in dollars) | $347,222 | $304,536 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 69,628,781 | 70,352,257 |
Common stock, shares outstanding | 69,628,781 | 70,352,257 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Revenue: | |||
Restaurant sales | $1,568,556 | $1,410,118 | $1,252,358 |
Franchise royalties and fees | 13,592 | 12,467 | 10,973 |
Total revenue | 1,582,148 | 1,422,585 | 1,263,331 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | |||
Cost of sales | 553,144 | 492,306 | 423,615 |
Labor | 459,119 | 411,394 | 367,763 |
Rent | 33,174 | 28,978 | 25,797 |
Other operating | 246,339 | 224,882 | 204,318 |
Pre-opening | 18,452 | 17,891 | 12,399 |
Depreciation and amortization | 59,179 | 51,562 | 46,717 |
Impairment and closure | 636 | 399 | 1,624 |
Gain on sale of other concept | -1,800 | ||
General and administrative | 81,656 | 77,258 | 70,640 |
Total costs and expenses | 1,451,699 | 1,302,870 | 1,152,873 |
Income from operations | 130,449 | 119,715 | 110,458 |
Interest expense, net | 2,084 | 2,201 | 2,347 |
Equity income from investments in unconsolidated affiliates | -1,602 | -713 | -428 |
Income before taxes | 129,967 | 118,227 | 108,539 |
Provision for income taxes | 38,990 | 34,140 | 34,738 |
Net income including noncontrolling interests | 90,977 | 84,087 | 73,801 |
Less: Net income attributable to noncontrolling interests | 3,955 | 3,664 | 2,631 |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | 87,022 | 80,423 | 71,170 |
Other comprehensive income, net of tax: | |||
Unrealized gain on derivatives, net of tax of ($513), ($511) and ($84), respectively | 808 | 809 | 148 |
Foreign currency translation adjustment, net of tax of ($39) | 62 | ||
Total other comprehensive income, net of tax | 870 | 809 | 148 |
Total comprehensive income | $87,892 | $81,232 | $71,318 |
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | |||
Basic (in dollars per share) | $1.25 | $1.15 | $1.02 |
Diluted (in dollars per share) | $1.23 | $1.13 | $1 |
Weighted average shares outstanding: | |||
Basic (in shares) | 69,719 | 70,089 | 70,026 |
Diluted (in shares) | 70,608 | 71,362 | 71,485 |
Cash dividends declared per share (in dollars per share) | $0.60 | $0.48 | $0.46 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Condensed Consolidated Statements of Income and Comprehensive Income | |||
Unrealized gain (loss) on derivatives, tax | ($513) | ($511) | ($84) |
Foreign currency translation adjustment, tax | ($39) |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total Texas Roadhouse, Inc. and Subsidiaries | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 27, 2011 | $491,904 | $69 | $206,019 | $288,425 | ($2,609) | $3,918 | $495,822 |
Balance (in shares) at Dec. 27, 2011 | 69,186,967 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 71,170 | 71,170 | 2,631 | 73,801 | |||
Other comprehensive income | 148 | 148 | 148 | ||||
Noncontrolling interests contribution | 1,816 | 1,816 | |||||
Distributions to noncontrolling interests | -2,712 | -2,712 | |||||
Noncontrolling interests liquidation adjustments | -368 | -368 | -368 | ||||
Dividends declared and paid ($0.45, $0.48 and $0.27 per share for the year 2014, 2013 and 2012, respectively) | -18,951 | -18,951 | -18,951 | ||||
Dividends declared ($0.15 and $0.19 per share for the year 2014 and 2012, respectively) | -13,135 | -13,135 | -13,135 | ||||
Shares issued under stock option plan including tax effects | 14,277 | 1 | 14,276 | 14,277 | |||
Shares issued under stock option plan including tax effects (in shares) | 1,115,278 | ||||||
Repurchase shares of common stock | -29,421 | -2 | -29,419 | -29,421 | |||
Repurchase shares of common stock (in shares) | -1,786,855 | ||||||
Settlement of restricted stock units | 1 | -1 | |||||
Settlement of restricted stock units (in shares) | 683,614 | ||||||
Indirect repurchase of shares for minimum tax withholdings | -3,733 | -3,733 | -3,733 | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | -221,959 | ||||||
Share-based compensation | 13,193 | 13,193 | 13,193 | ||||
Balance at Dec. 25, 2012 | 525,084 | 69 | 199,967 | 327,509 | -2,461 | 5,653 | 530,737 |
Balance (in shares) at Dec. 25, 2012 | 68,977,045 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 80,423 | 80,423 | 3,664 | 84,087 | |||
Other comprehensive income | 809 | 809 | 809 | ||||
Distributions to noncontrolling interests | -3,116 | -3,116 | |||||
Noncontrolling interests liquidation adjustments | 36 | 36 | 36 | ||||
Dividends declared and paid ($0.45, $0.48 and $0.27 per share for the year 2014, 2013 and 2012, respectively) | -33,742 | -33,742 | -33,742 | ||||
Shares issued under stock option plan including tax effects | 20,028 | 1 | 20,027 | 20,028 | |||
Shares issued under stock option plan including tax effects (in shares) | 1,173,945 | ||||||
Repurchase shares of common stock | -12,761 | -1 | -12,760 | -12,761 | |||
Repurchase shares of common stock (in shares) | -461,600 | ||||||
Settlement of restricted stock units | 1 | -1 | |||||
Settlement of restricted stock units (in shares) | 991,446 | ||||||
Indirect repurchase of shares for minimum tax withholdings | -6,958 | -6,958 | -6,958 | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | -328,579 | ||||||
Share-based compensation | 14,740 | 14,740 | 14,740 | ||||
Balance at Dec. 31, 2013 | 587,659 | 70 | 215,051 | 374,190 | -1,652 | 6,201 | 593,860 |
Balance (in shares) at Dec. 31, 2013 | 70,352,257 | 70,352,257 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 87,022 | 87,022 | 3,955 | 90,977 | |||
Other comprehensive income | 870 | 870 | 870 | ||||
Noncontrolling interests contribution | 764 | 764 | |||||
Distributions to noncontrolling interests | -3,856 | -3,856 | |||||
Noncontrolling interests liquidation adjustments | 25 | 25 | 25 | ||||
Noncontrolling interest acquisition | -653 | -653 | -653 | ||||
Dividends declared and paid ($0.45, $0.48 and $0.27 per share for the year 2014, 2013 and 2012, respectively) | -31,333 | -31,333 | -31,333 | ||||
Dividends declared ($0.15 and $0.19 per share for the year 2014 and 2012, respectively) | -10,443 | -10,443 | -10,443 | ||||
Shares issued under stock option plan including tax effects | 8,165 | 1 | 8,164 | 8,165 | |||
Shares issued under stock option plan including tax effects (in shares) | 403,146 | ||||||
Issuance of shares for franchise acquisition | 1,284 | 1,284 | 1,284 | ||||
Issuance of shares for franchise acquisition (in shares) | 40,699 | ||||||
Repurchase shares of common stock | -42,744 | -2 | -42,742 | -42,744 | |||
Repurchase shares of common stock (in shares) | -1,675,000 | ||||||
Settlement of restricted stock units | 1 | -1 | |||||
Settlement of restricted stock units (in shares) | 766,035 | ||||||
Indirect repurchase of shares for minimum tax withholdings | -6,843 | -6,843 | -6,843 | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | -258,356 | ||||||
Share-based compensation | 14,883 | 14,883 | 14,883 | ||||
Balance at Dec. 30, 2014 | $607,892 | $70 | $189,168 | $419,436 | ($782) | $7,064 | $614,956 |
Balance (in shares) at Dec. 30, 2014 | 69,628,781 | 69,628,781 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Condensed Consolidated Statement of Stockholders' Equity | |||
Dividends declared and paid per share (in dollars per share) | ($0.45) | ($0.48) | ($0.27) |
Dividends declared per share (in dollars per share) | ($0.15) | ($0.19) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Cash flows from operating activities: | |||
Net income including noncontrolling interests | $90,977 | $84,087 | $73,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 59,179 | 51,562 | 46,717 |
Deferred income taxes | -480 | -947 | -2,166 |
Loss on disposition of assets | 4,987 | 3,794 | 2,805 |
Gain on sale of other concept | -1,800 | ||
Impairment and closure costs | 626 | 278 | 1,459 |
Equity income from investments in unconsolidated affiliates | -1,602 | -713 | -428 |
Distributions of income received from investments in unconsolidated affiliates | 541 | 444 | 429 |
Provision for doubtful accounts | 6 | 86 | 17 |
Share-based compensation expense | 14,883 | 14,740 | 13,193 |
Changes in operating working capital: | |||
Receivables | -8,634 | -9,063 | -4,953 |
Inventories | -2,278 | -1,057 | -119 |
Prepaid expenses and other current assets | -277 | -3,066 | -146 |
Other assets | -1,231 | -4,720 | -2,773 |
Accounts payable | 5,366 | 5,712 | 1,736 |
Deferred revenue-gift cards | 16,660 | 9,555 | 8,842 |
Accrued wages | 1,381 | 3,964 | 1,329 |
Excess tax benefits from share-based compensation | -2,885 | -4,887 | -3,605 |
Prepaid income taxes and income taxes payable | 5,128 | 7,931 | 806 |
Accrued taxes and licenses | 158 | 4,088 | 872 |
Other accrued liabilities | 4,905 | 5,891 | 3,842 |
Deferred rent | 3,222 | 3,453 | 3,035 |
Other liabilities | 1,081 | 4,504 | 3,353 |
Net cash provided by operating activities | 191,713 | 173,836 | 148,046 |
Cash flows from investing activities: | |||
Capital expenditures-property and equipment | -125,445 | -111,478 | -86,985 |
Acquisition of franchise restaurants, net of cash acquired | -4,297 | ||
Investment in unconsolidated affiliates | -1,180 | ||
Proceeds from sale of other concept, net | 1,387 | ||
Proceeds from sale of property and equipment, including insurance proceeds, and other | 1,205 | 23 | 1,128 |
Net cash used in investing activities | -124,240 | -111,248 | -90,154 |
Cash flows from financing activities: | |||
(Repayments of) proceeds from revolving credit facility | -10,000 | ||
Repurchase of shares of common stock | -42,744 | -12,761 | -29,421 |
Proceeds from noncontrolling interest contributions and other | 764 | 1,285 | |
Payment of debt assumed, net of cash acquired, in acquisition of noncontrolling interest | -1,050 | ||
Distributions to noncontrolling interests | -3,856 | -3,116 | -2,712 |
Excess tax benefits from share-based compensation | 2,885 | 4,887 | 3,605 |
Proceeds from stock option and other deposits, net | 1,083 | 593 | 172 |
Indirect repurchase of shares for minimum tax withholdings | -6,843 | -6,958 | -3,733 |
Principal payments on long-term debt and capital lease obligations | -411 | -369 | -303 |
Proceeds from exercise of stock options | 5,280 | 15,141 | 10,670 |
Dividends paid to shareholders | -31,333 | -46,877 | -24,486 |
Net cash used in financing activities | -76,225 | -49,460 | -54,923 |
Net (decrease) increase in cash and cash equivalents | -8,752 | 13,128 | 2,969 |
Cash and cash equivalents-beginning of year | 94,874 | 81,746 | |
Cash and cash equivalents-end of year | 86,122 | 94,874 | 81,746 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amounts capitalized | 2,374 | 2,400 | 2,478 |
Income taxes paid | 34,342 | 27,156 | 36,096 |
Capital expenditures included in accounts payable | 1,115 | 1,383 | 1,065 |
Supplemental schedule of noncash financing activities: | |||
Stock acquisition on noncontrolling interest in franchise restaurant | $1,284 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 30, 2014 | |
Basis of Presentation | |
Description of Business | |
(1) Description of Business | |
The accompanying Consolidated Financial Statements include the accounts of Texas Roadhouse, Inc. ("TRI"), our wholly-owned subsidiaries and subsidiaries in which we own more than 50 percent interest (collectively, the "Company", "we", "our" and/or "us") as of and for the 52 weeks ended December 30, 2014, the 53 weeks ended December 31, 2013 and the 52 weeks ended December 25, 2012. Our wholly-owned subsidiaries include: Texas Roadhouse Holdings LLC ("Holdings"), Texas Roadhouse Development Corporation ("TRDC"), Texas Roadhouse Management Corp ("Management Corp.") and Strategic Restaurant Concepts, LLC ("Strategic Concepts"). TRI and our subsidiaries operate restaurants primarily under the Texas Roadhouse name. Holdings also provides supervisory and administrative services for certain other franchise Texas Roadhouse restaurants. TRDC sells franchise rights and collects the franchise royalties and fees. Management Corp. provides management services to the Company and certain other franchise Texas Roadhouse restaurants. All significant balances and transactions between the consolidated entities have been eliminated. | |
As of December 30, 2014, we owned and operated 372 restaurants and franchised an additional 79 restaurants in 49 states and four foreign countries. Of the 451 restaurants that were operating at December 30, 2014, (i) 372 were Company-owned restaurants, 356 of which were wholly-owned and 16 of which were majority-owned and (ii) 79 were franchise restaurants, 23 of which we have 5.0% to 10.0% ownership interest. | |
As of December 31, 2013, we owned and operated 346 restaurants and franchised or licensed an additional 74 restaurants in 48 states and three foreign countries. Of the 420 restaurants that were operating at December 31, 2013, (i) 346 were Company-owned restaurants, 331 of which were wholly-owned and 15 of which were majority-owned and (ii) 74 were franchise restaurants, 23 of which we have 5.0% to 10.0% ownership interest. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 30, 2014 | |||||
Summary of Significant Accounting Policies | |||||
Summary of Significant Accounting Policies | |||||
(2) Summary of Significant Accounting Policies | |||||
(a) Principles of Consolidation | |||||
As of December 30, 2014 and December 31, 2013, we owned a 5.0% to 10.0% equity interest in 23 restaurants, respectively. Additionally, as of December 30, 2014 and December 31, 2013, we owned a 40% equity interest in four non-Texas Roadhouse restaurants as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. While we exercise significant control over these Texas Roadhouse franchise restaurants, we do not consolidate their financial position, results of operations or cash flows as it is immaterial to our consolidated financial position, results of operations and/or cash flows. Our investments in these unconsolidated affiliates are included in Other assets in our consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our consolidated statements of income and comprehensive income under Equity income from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the companies whose accounts have been consolidated have been eliminated. | |||||
(b) Fiscal Year | |||||
We utilize a 52 or 53 week accounting period that ends on the last Tuesday in December. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal years 2014 and 2012 were 52 weeks in length. Fiscal year 2013 was 53 weeks in length. In fiscal 2013, the 53rd week added approximately $32.0 million to restaurant sales and total revenues and an estimated $0.03 to $0.04 to diluted earnings per share in our consolidated statements of income and comprehensive income. | |||||
(c) Cash and Cash Equivalents | |||||
We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Book overdrafts are recorded in accounts payable and are included within operating cash flows. Cash and cash equivalents also included receivables from credit card companies, which amounted to $7.0 million and $7.7 million at December 30, 2014 and December 31, 2013, respectively, because the balances are settled within two to three business days. | |||||
(d) Receivables | |||||
Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening and other expenses, and amounts due for royalty fees from franchise restaurants. | |||||
Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience. We review our allowance for doubtful accounts quarterly. Past due balances over 120 days and a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||
(e) Inventories | |||||
Inventories, consisting principally of food, beverages and supplies, are valued at the lower of cost (first-in, first-out) or market. | |||||
(f) Pre-opening Expenses | |||||
Pre-opening expenses are charged to operations as incurred. These costs include opening team and training compensation and benefits, travel expenses, rent, food, beverage and other initial supplies and expenses incurred prior to a restaurant opening for business. | |||||
(g) Property and Equipment | |||||
Property and equipment are stated at cost. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight-line method. In some cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods. See note 2(p) for further discussion of leases and leasehold improvements. Depreciation and amortization expense as shown on our consolidated statements of income and comprehensive income is substantially all attributable to restaurant-level assets. | |||||
The estimated useful lives are: | |||||
Land improvements | 10 - 25 years | ||||
Buildings and leasehold improvements | 10 - 25 years | ||||
Equipment and smallwares | 3 - 10 years | ||||
Furniture and fixtures | 3 - 10 years | ||||
The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net. | |||||
Repairs and maintenance expense amounted to $17.9 million, $15.9 million and $13.8 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. These costs are included in other operating costs in our consolidated statements of income and comprehensive income. | |||||
(h) Impairment of Goodwill | |||||
Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other ("ASC 350"), we perform tests to assess potential impairments at the end of each fiscal year or during the year if an event or other circumstance indicates that goodwill may be impaired. Our assessment is performed at the reporting unit level, which is at the individual restaurant level. In the first step of the review process, we compare the estimated fair value of the restaurant with its carrying value, including goodwill. If the estimated fair value of the restaurant exceeds its carrying amount, no further analysis is needed. If the estimated fair value of the restaurant is less than its carrying amount, the second step of the review process requires the calculation of the implied fair value of the goodwill by allocating the estimated fair value of the restaurant to all of the assets and liabilities of the restaurant as if it had been acquired in a business combination. If the carrying value of the goodwill associated with the restaurant exceeds the implied fair value of the goodwill, an impairment loss is recognized for that excess amount. | |||||
The valuation approaches used to determine fair value are subject to key judgments and assumptions that are sensitive to change such as judgment and assumptions about appropriate revenue growth rates, operating margins, weighted average cost of capital and comparable company and acquisition market multiples. In estimating the fair value using the capitalization of earnings method or discounted cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods, expectations of future sales growth and terminal value. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. When developing these key judgments and assumptions, we consider economic, operational and market conditions that could impact fair value. The judgments and assumptions used are consistent with what we believe hypothetical market participants would use. However, estimates are inherently uncertain and represent only our reasonable expectations regarding future developments. If the estimates used in performing the impairment test prove inaccurate, the fair value of the restaurants may ultimately prove to be significantly lower, thereby causing the carrying value to exceed the fair value and indicating impairment has occurred. | |||||
In 2014 and 2012, as a result of our annual goodwill impairment analyses, we recorded goodwill impairment charges of $0.6 million and $0.3 million, respectively, as discussed further in note 15. In 2013, as a result of our annual goodwill impairment analysis, we determined that there was no goodwill impairment. Refer to note 6 for additional information related to goodwill and intangible assets. | |||||
(i) Other Assets | |||||
Other assets consist primarily of deferred compensation plan assets, investments in foreign operations, deposits and costs related to the issuance of debt. The debt issuance costs are being amortized to interest expense over the term of the related debt. For further discussion of the deferred compensation plan, see note 14. | |||||
(j) Impairment or Disposal of Long-lived Assets | |||||
In accordance with ASC 360-10-05, Property, Plant and Equipment, long-lived assets related to each restaurant to be held and used in the business, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. When we evaluate restaurants, cash flows are the primary indicator of impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12-month cash flow results below $300,000 at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its estimated useful life, which can be for a period of over 20 years. In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. If the carrying amount of the restaurant exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the assets. We generally measure fair value by independent third party appraisal. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. In 2014, as a result of our impairment analysis, we determined that there was no impairment. In 2013, we recorded $0.2 million of impairment related to one previously closed restaurant. In 2012, as a result of our impairment analysis, we determined that the building, equipment, furniture and fixtures at one restaurant was impaired. For further discussion regarding closures and impairments recorded in 2014, 2013 and 2012, including the impairments of goodwill and other long-lived assets, refer to note 15. | |||||
(k) Insurance Reserves | |||||
We self-insure a significant portion of expected losses under our workers compensation, general liability, employment practices liability, property insurance and employee healthcare programs. We purchase insurance for individual claims that exceed the amounts listed below: | |||||
Employment practices liability | $ | 250,000 | |||
Workers compensation | $ | 350,000 | |||
General liability | $ | 250,000 | |||
Property | $ | 50,000 | |||
Employee healthcare | $ | 250,000 | |||
We record a liability for unresolved claims and for an estimate of incurred but not reported claims at our anticipated cost based on estimates provided by management, a third party administrator and/or actuary. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances. | |||||
(l) Segment Reporting | |||||
We consider our restaurant and franchising operations as similar and have aggregated them into a single reportable segment. The majority of the restaurants operate in the U.S. within the casual dining segment of the restaurant industry, providing similar products to similar customers. The restaurants also possess similar pricing structures, resulting in similar long-term expected financial performance characteristics. As of December 30, 2014, we operated 372 restaurants, each as a single operating segment, and franchised an additional 79 restaurants. Revenue from external customers is derived principally from food and beverage sales. We do not rely on any major customers as a source of revenue. | |||||
(m) Revenue Recognition | |||||
Revenue from restaurant sales is recognized when food and beverage products are sold. Deferred revenue primarily represents our liability for gift cards that have been sold, but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. | |||||
For some of the gift cards that were sold, the likelihood of redemption is remote. When the likelihood of a gift card's redemption is determined to be remote, we record a breakage adjustment and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine when the likelihood of a gift card's redemption becomes remote and have determined that approximately 4% of the value of the gift cards sold by our company and our third party retailers will never be redeemed. The methodology we use to match the expected redemption value of unredeemed gift cards to our historic redemption patterns is to amortize the historic breakage rates over a three year period. As a result, the amount of unredeemed gift card liability included in deferred revenue is the full value of unredeemed gift cards less the amortized portion of the breakage rates. We recorded our gift card breakage adjustment as a reduction of other operating expense in our consolidated statements of income and comprehensive income. We review and adjust our estimates on a semi-annual basis. | |||||
We franchise Texas Roadhouse restaurants. We execute franchise agreements for each franchise restaurant which sets out the terms of our arrangement with the franchisee. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. Subject to our approval and payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration. We collect ongoing royalties of 2.0% to 4.0% of sales from our domestic franchisees, along with royalties paid to us by our international franchisees. These ongoing royalties are reflected in the accompanying consolidated statements of income and comprehensive income as franchise royalties and fees. We recognize initial franchise fees as revenue after performing substantially all initial services or conditions required by the franchise agreement, which is generally upon the opening of a restaurant. We received initial franchise fees of $0.6 million, $0.1 million and $0.2 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. Continuing franchise royalties are recognized as revenue as the fees are earned. We also perform supervisory and administrative services for certain franchise restaurants for which we receive management fees, which are recognized as the services are performed. Revenue from supervisory and administrative services is recorded as a reduction of general and administrative expenses in the accompanying consolidated statements of income and comprehensive income. Total revenue from supervisory and administrative services recorded for the years ended December 30, 2014, December 31, 2013 and December 25, 2012 was approximately $0.9 million, $0.7 million and $0.6 million, respectively. | |||||
Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue in the consolidated statements of income and comprehensive income. | |||||
(n) Income Taxes | |||||
We account for income taxes in accordance with ASC 740, Income Taxes, under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. | |||||
(o) Advertising | |||||
We have a domestic system-wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund's activity for the years ended December 30, 2014, December 31, 2013 and December 25, 2012. Domestic company and franchise restaurants are required to remit a designated portion of sales, currently 0.3%, to the advertising fund. These reimbursements do not exceed the costs incurred by the advertising fund throughout the year associated with various marketing programs which are developed internally by us. Therefore, the net amount of the advertising costs incurred less amounts remitted by company and franchise restaurants is included in general and administrative expense in our consolidated statements of income and comprehensive income. | |||||
Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income and comprehensive income. These costs and the company-owned restaurant contribution amounted to approximately $10.8 million, $10.1 million and $9.1 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. | |||||
(p) Leases and Leasehold Improvements | |||||
We lease land, buildings and/or certain equipment for the majority of our restaurants under non-cancelable lease agreements. Our land and/or building leases typically have initial terms ranging from 10 to 15 years, and certain renewal options for one or more five-year periods. We account for leases in accordance with ASC 840, Leases, and other related authoritative guidance. When determining the lease term, we include option periods for which failure to renew the lease imposes a penalty on us in such an amount that a renewal appears, at the inception of the lease, to be reasonably assured. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements which might become impaired if we choose not to continue the use of the leased property. | |||||
Certain of our operating leases contain predetermined fixed escalations of the minimum rent during the original term of the lease. For these leases, we recognize the related rent expense on a straight-line basis over the lease term and record the difference between the amounts charged to operations and amounts paid as deferred rent. We generally do not receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease. We may receive rent holidays, which would begin on the possession date and end when the lease commences, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense. | |||||
Additionally, certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. This may result in some variability in rent expense as a percentage of sales over the term of the lease in restaurants where we pay contingent rent. | |||||
The judgment regarding the probable term for each restaurant property lease impacts the classification and accounting for a lease as capital or operating, the rent holiday and/or escalation in payments that are taken into consideration when calculating straight-line rent and the term over which leasehold improvements for each restaurant are amortized. The material factor we consider when making this judgment is the total amount invested in the restaurant at the inception of the lease and whether management believes that renewal appears reasonably assured. While a different term may produce materially different amounts of depreciation, amortization and rent expense than reported, our historical lease renewal rates support the judgments made. We have not made any changes to the nature of the assumptions used to account for leases in any of the fiscal years presented in our consolidated financial statements. | |||||
(q) Use of Estimates | |||||
We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to insurance reserves, share-based compensation expense and income taxes. Actual results could differ from those estimates. | |||||
(r) Comprehensive Income | |||||
ASC 220, Comprehensive Income, establishes standards for reporting and the presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and other comprehensive income (loss) items that are excluded from net income under GAAP in the United States. Other comprehensive income (loss) consists of the effective unrealized portion of changes in fair value of cash flow hedges and foreign currency translation adjustments. The foreign currency translation adjustment included in comprehensive income on the consolidated statements of income and comprehensive income represents the unrealized impact of translating the financial statements of our foreign investment. This amount is not included in net income and would only be realized upon the disposition of the business. | |||||
(s) Fair Value of Financial Instruments | |||||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy. | |||||
(t) Derivative Instruments and Hedging Activities | |||||
We do not use derivative instruments for trading purposes. Currently, our only free standing derivative instruments are two interest rate swap agreements. | |||||
We account for derivatives and hedging activities in accordance with ASC 815, Derivatives and Hedging, which requires that all derivative instruments be recorded on the consolidated balance sheet at their respective fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship. Our current derivatives have been designated and qualify as cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. There was no hedge ineffectiveness recognized during the years ended December 30, 2014, December 31, 2013 and December 25, 2012. | |||||
(u) Reclassifications | |||||
Certain prior year amounts have been reclassified in our consolidated financial statements to conform with current year presentation. | |||||
(v) Recent Accounting Pronouncements | |||||
Discontinued Operations | |||||
(Accounting Standards Update 2014-08, "ASU 2014-08") | |||||
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the requirements for reporting discontinued operations and modifies related disclosure requirements. ASU 2014-08 is effective prospectively for fiscal years beginning on or after December 15, 2014 (our 2015 fiscal year). The adoption of this guidance is not expected to have an impact on our consolidated financial position, results of operations or cash flows. | |||||
Revenue Recognition | |||||
(Accounting Standards Update 2014-09, "ASU 2014-09") | |||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years beginning on or after December 15, 2016 (our 2017 fiscal year). Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial position, results of operations, cash flows and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||||
Going Concern | |||||
(Accounting Standards Update 2014-15, "ASU 2014-15") | |||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires the management of the Company to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016 (our 2017 fiscal year) and early adoption is permitted. We do not expect this standard to have an impact on our consolidated financial position, results of operations or cash flows upon adoption. | |||||
Consolidation | |||||
(Accounting Standards Update 2015-02, "ASU 2015-02") | |||||
In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity may apply the amendments using a modified retrospective approach or a full retrospective application. We have not yet determined the effect, if any, of the standard on our consolidated financial position, results of operations or cash flows. | |||||
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Acquisitions and Divestitures | |||||||||||
Acquisitions and Divestitures | |||||||||||
(3) Acquisitions and Divestitures | |||||||||||
On November 26, 2014, we acquired the remaining ownership interests in a franchise restaurant owned in part by us and certain officers or stockholders of the Company. Prior to the acquisition, we owned 5% of the franchise restaurant which we accounted for using the equity method. While we exercised significant control over the acquired restaurant prior to our acquisition of the remaining ownership interests, we did not consolidate their financial position, results of operations and/or cash flows nor recognize the noncontrolling interests as it was not material to our consolidated financial position, results of operations and /or cash flows. This acquisition is consistent with our long-term strategy to increase net income and earnings per share. | |||||||||||
Pursuant to the purchase agreement, we issued 40,699 shares of common stock valued at $1.3 million in exchange for the remaining ownership interests. The acquisition was accounted for as an equity transaction as defined in ASC 810, Consolidation—Overall ("ASC 810"). The difference between the $1.3 million in consideration paid and the book value of the noncontrolling interest in the unconsolidated affiliate of $0.7 million was recorded as a debit to equity. In conjunction with this acquisition, we received $0.2 million of cash and paid off outstanding debt related to the franchise restaurant of $1.3 million. | |||||||||||
On December 31, 2013, we sold our Aspen Creek concept, including two restaurants, and, pursuant to the terms of the purchase agreement, we received two Texas Roadhouse franchise restaurants in Ohio and $1.5 million in cash, for an aggregate transaction value of $6.0 million. We recorded a $1.8 million gain in conjunction with the sale of the Aspen Creek concept and restaurants. The acquisition of the two franchise restaurants did not have a significant net revenue or accretive impact since the restaurants were acquired on the last day of our fiscal year. The acquisition is consistent with our long-term strategy to increase net income and earnings per share. | |||||||||||
The acquisition of the two franchise restaurants was accounted for using the purchase method as defined in ASC 805, Business Combinations ("ASC 805"). Based on a purchase price of $4.5 million, $3.7 million of goodwill was generated by the acquisition, which is not amortizable for book purposes, but is deductible for tax purposes. | |||||||||||
The purchase price has been allocated as follows: | |||||||||||
Amounts | Measurement | As Adjusted | |||||||||
Previously | Period | ||||||||||
Recorded(1) | Adjustments(2) | ||||||||||
Current assets | $ | 64 | — | $ | 64 | ||||||
Property and equipment, net | 558 | 19 | 577 | ||||||||
Goodwill | 3,013 | 730 | 3,743 | ||||||||
Intangible asset | 1,154 | (749 | ) | 405 | |||||||
Current liabilities | (139 | ) | — | (139 | ) | ||||||
Other liabilities | (150 | ) | — | (150 | ) | ||||||
| | | | | | | | | | | |
$ | 4,500 | $ | 4,500 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | As previously reported in our 2013 Annual Report on Form 10-K. | ||||||||||
-2 | Measurement period adjustments were made during the 13 weeks ended April 1, 2014. | ||||||||||
As a result of this acquisition, we recorded an intangible asset associated with reacquired franchise rights of $0.4 million in accordance with ASC 805. ASC 805 requires that a business combination between two parties that have a preexisting relationship be evaluated to determine if a settlement of a preexisting relationship exists. ASC 805 also requires that certain reacquired rights (including the rights to the acquirer's trade name under a franchise agreement) be recognized as intangible assets apart from goodwill. | |||||||||||
The fair value of $0.4 million assigned to the intangible asset acquired was determined primarily using valuation methods that discount expected future cash flow to present value using estimates and assumptions determined by management. The intangible asset has a weighted-average life of approximately 2.7 years based on the remaining terms of the franchise agreements. We recorded amortization expense of relating to the intangible asset of $0.1 million for the year ended December 30, 2014. We expect the annual expense for the next two years to average approximately $0.1 million. | |||||||||||
Pro forma results of operations have not been presented because the effects of the acquisitions were not material to our consolidated financial position, results of operations or cash flows. | |||||||||||
Longterm_Debt_and_Obligations_
Long-term Debt and Obligations Under Capital Leases | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Long-term Debt | ||||||||
Long-term Debt and Obligations Under Capital Leases | ||||||||
(4) Long-term Debt | ||||||||
Long-term debt consisted of the following: | ||||||||
December 30, | December 31, | |||||||
2014 | 2013 | |||||||
Installment loans, due 2015-2020 | $ | 822 | $ | 1,233 | ||||
Revolver | 50,000 | 50,000 | ||||||
| | | | | | | | |
50,822 | 51,233 | |||||||
Less current maturities | 129 | 243 | ||||||
| | | | | | | | |
$ | 50,693 | $ | 50,990 | |||||
| | | | | | | | |
| | | | | | | | |
Maturities of long-term debt at December 30, 2014 are as follows: | ||||||||
2015 | $ | 129 | ||||||
2016 | 143 | |||||||
2017 | 159 | |||||||
2018 | 50,177 | |||||||
2019 | 196 | |||||||
Thereafter | 18 | |||||||
| | | | | ||||
$ | 50,822 | |||||||
| | | | | ||||
| | | | | ||||
The weighted average interest rate for installment loans outstanding at December 30, 2014 and December 31, 2013 was 10.46% and 10.54%, respectively. The debt is secured by certain land and buildings and is subject to certain prepayment penalties. | ||||||||
On November 1, 2013, we entered into Omnibus Amendment No. 1 and Consent to Credit Agreement and Guaranty with respect to our revolving credit facility dated as of August 12, 2011 with a syndicate of commercial lenders led by JP Morgan Chase Bank, N.A., PNC Bank, N.A., and Wells Fargo, N.A. The amended revolving credit facility, which has a maturity date of November 1, 2018, remains an unsecured, revolving credit agreement under which we may borrow up to $200.0 million. The amendment provides us with the option to increase the revolving credit facility by $200.0 million, up to $400.0 million, subject to certain limitations. | ||||||||
The terms of the amended revolving credit facility require us to pay interest on outstanding borrowings at the London Interbank Offered Rate ("LIBOR") plus a margin of 0.875% to 1.875%, depending on our leverage ratio, or the Alternate Base Rate, which is the higher of the issuing bank's prime lending rate, the Federal Funds rate plus 0.50% or the Adjusted Eurodollar Rate for a one month interest period on such day plus 1.0%. We are also required to pay a commitment fee of 0.125% to 0.30% per year on any unused portion of the amended revolving credit facility, depending on our leverage ratio. The weighted-average interest rate for the amended revolving credit facility at both December 30, 2014 and December 31, 2013 was 3.96%, including the impact of interest rate swaps. At December 30, 2014, we had $50.0 million outstanding under the amended revolving credit facility and $144.2 million of availability, net of $5.8 million of outstanding letters of credit. | ||||||||
The lenders' obligation to extend credit under the amended revolving credit facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio of 2.00 to 1.00 and a maximum consolidated leverage ratio of 3.00 to 1.00. The amended revolving credit facility permits us to incur additional secured or unsecured indebtedness outside the facility, except for the incurrence of secured indebtedness that in the aggregate exceeds 15% of our consolidated tangible net worth or circumstances where the incurrence of secured or unsecured indebtedness would prevent us from complying with our financial covenants. We were in compliance with all covenants as of December 30, 2014. | ||||||||
On October 22, 2008, we entered into an interest rate swap, starting on November 7, 2008, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our amended revolving credit facility. Under the terms of the swap, we pay a fixed rate of 3.83% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on November 7, 2015, effectively resulting in a fixed rate on the LIBOR component of the $25.0 million notional amount. Changes in the fair value of the interest rate swap will be reported as a component of accumulated other comprehensive income (loss). | ||||||||
On January 7, 2009, we entered into an interest rate swap, starting on February 7, 2009, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our amended revolving credit facility. Under the terms of the swap, we pay a fixed rate of 2.34% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on January 7, 2016, effectively resulting in a fixed rate on the LIBOR component of the $25.0 million notional amount. Changes in the fair value of the interest rate swap will be reported as a component of accumulated other comprehensive income (loss). | ||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Property and Equipment, Net | ||||||||
Property and Equipment, Net | ||||||||
(5) Property and Equipment, Net | ||||||||
Property and equipment were as follows: | ||||||||
December 30, | (As Adjusted) | |||||||
2014 | December 31, | |||||||
2013 | ||||||||
Land and improvements | $ | 105,055 | $ | 100,456 | ||||
Buildings and leasehold improvements | 519,905 | 457,282 | ||||||
Equipment and smallwares | 262,036 | 229,999 | ||||||
Furniture and fixtures | 80,637 | 70,828 | ||||||
Construction in progress | 20,730 | 25,516 | ||||||
Liquor licenses | 8,496 | 6,667 | ||||||
| | | | | | | | |
996,859 | 890,748 | |||||||
Accumulated depreciation and amortization | (347,222 | ) | (304,536 | ) | ||||
| | | | | | | | |
$ | 649,637 | $ | 586,212 | |||||
| | | | | | | | |
| | | | | | | | |
The amount of interest capitalized in connection with restaurant construction was approximately $0.7 million, $0.5 million and $0.4 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. | ||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Goodwill and Intangible Assets | ||||||||
Goodwill and Intangible Assets | ||||||||
(6) Goodwill and Intangible Assets | ||||||||
The changes in the carrying amount of goodwill and intangible assets are as follows: | ||||||||
Goodwill | Intangible | |||||||
Assets | ||||||||
Balance as of December 25, 2012 | 113,435 | 9,264 | ||||||
Additions | 3,762 | 256 | ||||||
Amortization expense | — | (1,644 | ) | |||||
Disposals and other, net | — | — | ||||||
Impairment | — | — | ||||||
| | | | | | | | |
Balance as of December 31, 2013 (As adjusted) | 117,197 | 7,876 | ||||||
Additions | — | — | ||||||
Amortization expense | — | (1,673 | ) | |||||
Disposals and other, net | — | — | ||||||
Impairment | (626 | ) | — | |||||
| | | | | | | | |
Balance as of December 30, 2014 | 116,571 | 6,203 | ||||||
| | | | | | | | |
| | | | | | | | |
Intangible assets consist of reacquired franchise rights. The gross carrying amount and accumulated amortization of the intangible assets at December 30, 2014 were $15.4 million and $9.2 million, respectively. As of December 31, 2013, the gross as adjusted carrying amount and accumulated amortization of the intangible assets was $15.4 million and $7.5 million. We amortize reacquired franchise rights on a straight-line basis over the remaining term of the franchise operating agreements, which varies by restaurant. Amortization expense for the next five years is expected to range from $0.8 million to $1.5 million. In 2014, as a result of our goodwill and/or long-lived impairment analysis, we determined that goodwill related to a certain restaurant was impaired as discussed in note 14. | ||||||||
Leases
Leases | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Leases | |||||||||||
Leases | |||||||||||
(7) Leases | |||||||||||
The following is a schedule of future minimum lease payments required for operating leases that have initial or remaining non-cancellable terms in excess of one year as of December 30, 2014: | |||||||||||
Operating | |||||||||||
Leases | |||||||||||
2015 | $ | 33,338 | |||||||||
2016 | 33,094 | ||||||||||
2017 | 33,274 | ||||||||||
2018 | 33,519 | ||||||||||
2019 | 33,698 | ||||||||||
Thereafter | 443,494 | ||||||||||
| | | | | |||||||
Total | $ | 610,417 | |||||||||
| | | | | |||||||
| | | | | |||||||
Rent expense for operating leases consisted of the following: | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Minimum rent—occupancy | $ | 32,288 | $ | 28,191 | $ | 25,110 | |||||
Contingent rent | 886 | 787 | 687 | ||||||||
| | | | | | | | | | | |
Rent expense, occupancy | 33,174 | 28,978 | 25,797 | ||||||||
Minimum rent—equipment and other | 3,724 | 3,502 | 3,393 | ||||||||
| | | | | | | | | | | |
Rent expense | $ | 36,898 | $ | 32,480 | $ | 29,190 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Income Taxes | |||||||||||
Income taxes | |||||||||||
(8) Income Taxes | |||||||||||
Components of our income tax (benefit) and provision for the years ended December 30, 2014, December 31, 2013 and December 25, 2012 are as follows: | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 31,176 | $ | 28,648 | $ | 29,286 | |||||
State | 7,913 | 6,439 | 7,618 | ||||||||
Foreign | 381 | — | — | ||||||||
| | | | | | | | | | | |
Total current | 39,470 | 35,087 | 36,904 | ||||||||
Deferred: | |||||||||||
Federal | (379 | ) | (919 | ) | (1,511 | ) | |||||
State | (101 | ) | (28 | ) | (655 | ) | |||||
| | | | | | | | | | | |
Total deferred | (480 | ) | (947 | ) | (2,166 | ) | |||||
| | | | | | | | | | | |
Income tax provision | $ | 38,990 | $ | 34,140 | $ | 34,738 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Our pre-tax income is substantially derived from domestic restaurants. | |||||||||||
A reconciliation of the statutory federal income tax rate to our effective tax rate for December 30, 2014, December 31, 2013 and December 25, 2012 is as follows: | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Tax at statutory federal rate | 35 | % | 35 | % | 35 | % | |||||
State and local tax, net of federal benefit | 3.5 | 3.5 | 3.7 | ||||||||
FICA tip tax credit | (6.9 | ) | (6.5 | ) | (6.2 | ) | |||||
Work opportunity tax credit | (1.0 | ) | (1.7 | ) | (0.9 | ) | |||||
Incentive stock options | (0.2 | ) | (0.7 | ) | (0.2 | ) | |||||
Nondeductible officer compensation | 0.2 | 0.4 | 1.2 | ||||||||
Net income attributable to noncontrolling interests | (1.0 | ) | (1.1 | ) | — | ||||||
Other | 0.4 | — | 0.2 | ||||||||
| | | | | | | | | | | |
Total | 30 | % | 28.9 | % | 32.8 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
In 2012, we deducted net income attributable to noncontrolling interests from income before taxes as shown in our consolidated statements of income and comprehensive income to determine the effective tax rate shown in the table above. The impact of including the net income attributable to noncontrolling interests would have reduced our effective tax rate to 32.0% for the year ended December 25, 2012. | |||||||||||
Components of deferred tax assets (liabilities) are as follows: | |||||||||||
December 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Insurance reserves | $ | 4,577 | $ | 3,876 | |||||||
Other reserves | 715 | 515 | |||||||||
Deferred rent | 9,838 | 8,563 | |||||||||
Share-based compensation | 5,336 | 5,246 | |||||||||
Deferred revenue—gift cards | 5,524 | 3,860 | |||||||||
Deferred compensation | 5,564 | 4,200 | |||||||||
Other assets and liabilities | 2,972 | 3,311 | |||||||||
| | | | | | | | ||||
Total deferred tax asset | 34,526 | 29,571 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Property and equipment | (31,682 | ) | (27,585 | ) | |||||||
Goodwill and intangibles | (4,163 | ) | (3,304 | ) | |||||||
Other assets and liabilities | (1,912 | ) | (1,603 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liability | (37,757 | ) | (32,492 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (3,231 | ) | $ | (2,921 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Current deferred tax asset | $ | 2,773 | $ | 2,853 | |||||||
Noncurrent deferred tax liability | (6,004 | ) | (5,774 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (3,231 | ) | $ | (2,921 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
We have not provided any valuation allowance as we believe the realization of our deferred tax assets is more likely than not. | |||||||||||
A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows: | |||||||||||
Uncertain tax | |||||||||||
positions | |||||||||||
impacting | |||||||||||
tax rate | |||||||||||
Balance at December 25, 2012 | $ | 182 | |||||||||
Additions to tax positions related to prior years | 102 | ||||||||||
Reductions due to exam settlements | (112 | ) | |||||||||
| | | | | |||||||
Balance at December 31, 2013 | 172 | ||||||||||
Additions to tax positions related to current year | — | ||||||||||
Reductions due to statute expiration | (43 | ) | |||||||||
Reductions due to exam settlement | (15 | ) | |||||||||
| | | | | |||||||
Balance at December 30, 2014 | $ | 114 | |||||||||
| | | | | |||||||
| | | | | |||||||
We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. As of December 30, 2014 and December 31, 2013, the total amount of accrued penalties and interest related to uncertain tax provisions was not material. | |||||||||||
All entities for which unrecognized tax benefits exist as of December 30, 2014 possess a December tax year-end. As a result, as of December 30, 2014, the tax years ended December 27, 2011, December 25, 2012 and December 31, 2013 remain subject to examination by all tax jurisdictions. As of December 30, 2014, no audits were in process by a tax jurisdiction that, if completed during the next twelve months, would be expected to result in a material change to our unrecognized tax benefits. Additionally, as of December 30, 2014, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 29, 2015. | |||||||||||
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 30, 2014 | |
Preferred Stock | |
Preferred Stock | |
(9) Preferred Stock | |
Our Board of Directors is authorized, without further vote or action by the holders of common stock, to issue from time to time up to an aggregate of 1,000,000 shares of preferred stock in one or more series. Each series of preferred stock will have the number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the Board of Directors, which may include, but are not limited to, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. There were no shares of preferred stock outstanding at December 30, 2014 and December 31, 2013. | |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2014 | |
Stock Repurchase Program | |
Stockholders' Equity | |
(10) Stockholders' Equity | |
On May 22, 2014, our Board of Directors approved a stock repurchase program under which we may repurchase up to $100.0 million of our common stock. This stock repurchase program has no expiration date and replaced a previous stock repurchase program which was approved on February 16, 2012. The previous program authorized us to repurchase up to $100.0 million of our common stock. All repurchases to date under our stock repurchase program have been made through open market transactions. The timing and the amount of any repurchases will be determined by management under parameters established by our Board of Directors, based on its evaluation of our stock price, market conditions and other corporate considerations. | |
For the years ended December 30, 2014, December 31, 2013 and December 25, 2012, we paid approximately $42.7 million, $12.8 million and $29.4 million to repurchase 1,675,000, 461,600 and 1,786,855 shares of our common stock, respectively. | |
On November 26, 2014, we issued 40,699 shares of our common stock in exchange for the remaining ownership interests in a franchise restaurant in which we previously owned 5%. See note 3 for further discussion. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
(11) Earnings Per Share | |||||||||||
The share and net income per share data for all periods presented are based on the historical weighted-average shares outstanding. The diluted earnings per share calculations show the effect of the weighted-average stock options and RSUs outstanding from our equity incentive plans as discussed in note 13. | |||||||||||
The following table summarizes the options and nonvested stock that were outstanding but not included in the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect: | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Nonvested stock | 16,740 | 23,520 | — | ||||||||
Options | — | — | 292,193 | ||||||||
| | | | | | | | | | | |
Total | 16,740 | 23,520 | 292,193 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The following table sets forth the calculation of earnings per share and weighted average shares outstanding (in thousands) as presented in the accompanying consolidated statements of income and comprehensive income: | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 87,022 | $ | 80,423 | $ | 71,170 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719 | 70,089 | 70,026 | ||||||||
| | | | | | | | | | | |
Basic EPS | $ | 1.25 | $ | 1.15 | $ | 1.02 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719 | 70,089 | 70,026 | ||||||||
Dilutive effect of stock options and nonvested stock | 889 | 1,273 | 1,459 | ||||||||
| | | | | | | | | | | |
Shares—diluted | 70,608 | 71,362 | 71,485 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS | $ | 1.23 | $ | 1.13 | $ | 1.00 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 30, 2014 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
(12) Commitments and Contingencies | |||||
The estimated cost of completing capital project commitments at December 30, 2014 and December 31, 2013 was approximately $153.2 million and $65.2 million, respectively. | |||||
Effective December 31, 2013, we sold two restaurants, which operated under the name Aspen Creek, located in Irving, TX and Louisville, KY. We assigned the leases associated with these restaurants to the acquirer, but remain contingently liable under the terms of the leases if the acquirer defaults. We are contingently liable for the initial term of the lease and any renewal periods. The Irving lease has an initial term that expires December 2019, along with three five-year renewals. The Louisville lease has an initial term that expires November 2023, along with three five-year renewals. The assignment of the Louisville lease releases us from liability after the initial lease term expiration contingent upon certain conditions being met by the acquirer. As the fair value of the guarantees is not considered significant, no liability has been recorded. | |||||
We entered into real estate lease agreements for five franchises, listed in the table below, before granting franchise rights for those restaurants. We have subsequently assigned the leases to the franchisees, but remain contingently liable if a franchisee defaults, under the terms of the lease. | |||||
Lease | Initial Lease | ||||
Assignment Date | Term Expiration | ||||
Everett, Massachusetts(1) | Sep-02 | Feb-18 | |||
Longmont, Colorado(1) | Oct-03 | May-19 | |||
Montgomeryville, Pennsylvania | Oct-04 | Jun-21 | |||
Fargo, North Dakota(1) | Feb-06 | Jul-16 | |||
Logan, Utah | Jan-09 | Aug-19 | |||
-1 | As discussed in note 17, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. | ||||
We are contingently liable for the initial term of the lease and any renewal periods. All of the leases have three five-year renewals. As the fair value of the guarantees is not considered significant, no liability has been recorded. | |||||
As of December 30, 2014 and December 31, 2013, we are contingently liable for $18.0 million and $18.7 million, respectively, for the seven leases discussed above. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of December 30, 2014 as the likelihood of default was deemed to be less than probable. | |||||
During the year ended December 30, 2014, we bought most of our beef from four suppliers. Although there are a limited number of beef suppliers, we believe that other suppliers could provide a similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. We have no material minimum purchase commitments with our vendors that extend beyond a year. | |||||
On September 30, 2011, the U.S. Equal Employment Opportunity Commission ("EEOC") filed a lawsuit styled Equal Employment Opportunity Commission v. Texas Roadhouse, Inc., Texas Roadhouse Holdings LLC, Texas Roadhouse Management Corp. in the United States District Court, District of Massachusetts, Civil Action Number 1:11-cv-11732. The complaint alleges that applicants over the age of 40 were denied employment in our restaurants in bartender, host, server and server assistant positions due to their age. The EEOC is seeking injunctive relief, remedial actions, payment of damages to the applicants and costs. We have filed an answer to the complaint, and the case is in discovery. We deny liability; however, in view of the inherent uncertainties of litigation, the outcome of this case cannot be predicted at this time. We cannot estimate the possible amount or range of loss, if any, associated with this matter. | |||||
Occasionally, we are a defendant in litigation arising in the ordinary course of business, including "slip and fall" accidents, employment related claims and claims from guests or employees alleging illness, injury or food quality, health or operational concerns. In the opinion of management, the ultimate disposition of these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. | |||||
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | |||||||||||||
Dec. 30, 2014 | ||||||||||||||
Share-based Compensation | ||||||||||||||
Share-based Compensation | ||||||||||||||
(13) Share-based Compensation | ||||||||||||||
On May 16, 2013, our stockholders approved the Texas Roadhouse, Inc. 2013 Long-Term Incentive Plan (the "Plan"). The Plan provides for the granting of incentive and non-qualified stock options to purchase shares of common stock, stock appreciation rights, and full value awards, including restricted stock, restricted stock units ("RSUs"), deferred stock units, performance stock and performance stock units. As a result of the approval of the Plan, no future awards will be made under the Texas Roadhouse, Inc. 2004 Equity Incentive Plan. | ||||||||||||||
Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by eliminating stock option grants and, instead, granting RSUs as a form of share-based compensation. An RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement. | ||||||||||||||
The following table summarizes the share-based compensation recorded in the accompanying consolidated statements of income and comprehensive income: | ||||||||||||||
Fiscal Year Ended | ||||||||||||||
December 30, | December 31, | December 25, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Labor expense | $ | 5,523 | $ | 5,439 | $ | 4,570 | ||||||||
General and administrative expense | 9,360 | 9,301 | 8,623 | |||||||||||
| | | | | | | | | | | ||||
Total share-based compensation expense | $ | 14,883 | $ | 14,740 | $ | 13,193 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Share-based compensation activity by type of grant as of December 30, 2014 and changes during the period then ended is presented below. | ||||||||||||||
Summary Details for RSUs | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Grant Date | Remaining | Value | ||||||||||||
Fair Value | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Outstanding at December 31, 2013 | 1,283,862 | $ | 18.68 | |||||||||||
Granted | 527,965 | 26.74 | ||||||||||||
Forfeited | (67,668 | ) | 20.09 | |||||||||||
Vested | (766,035 | ) | 19.2 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 30, 2014 | 978,124 | $ | 22.52 | 0.88 | $ | 33,041 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
As of December 30, 2014, with respect to unvested RSUs, there was $9.6 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.9 years. The vesting terms of the RSUs range from approximately 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the years ended December 30, 2014, December 31, 2013 and December 25, 2012 was $20.4 million, $21.3 million and $11.6 million, respectively. | ||||||||||||||
Summary Details for Share Options | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Outstanding at December 31, 2013 | 1,043,438 | $ | 13.77 | |||||||||||
Granted | — | — | ||||||||||||
Forfeited | (3,362 | ) | 15.05 | |||||||||||
Exercised | (403,146 | ) | 13.09 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 30, 2014 | 636,930 | $ | 14.2 | 1.74 | $ | 12,474 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 30, 2014 | 636,930 | $ | 14.2 | 1.74 | $ | 12,474 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
No stock options were granted during the fiscal years ended December 30, 2014, December 31, 2013 and December 25, 2012. | ||||||||||||||
The total intrinsic value of options exercised during the years ended December 30, 2014, December 31, 2013 and December 25, 2012 was $6.1 million, $11.2 million and $8.7 million, respectively. No stock options vested during the years ended December 30, 2014 and December 31, 2013, respectively. The total grant date fair value of stock options vested during the year ended December 25, 2012 was $0.2 million, respectively. | ||||||||||||||
For the years ended December 30, 2014, December 31, 2013 and December 25, 2012, cash received before tax withholdings from options exercised was $5.3 million, $15.1 million and $10.7 million, respectively. The excess tax benefit realized from tax deductions associated with options exercised for the years ended December 30, 2014, December 31, 2013 and December 25, 2012 was $2.9 million, $4.9 million and $3.6 million, respectively. | ||||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
(14) Fair Value Measurement | |||||||||||||||||
ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. | |||||||||||||||||
Level 1 | Inputs based on quoted prices in active markets for identical assets. | ||||||||||||||||
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the assets, either directly or indirectly. | ||||||||||||||||
Level 3 | Inputs that are unobservable for the asset. | ||||||||||||||||
There were no transfers among levels within the fair value hierarchy during the year ended December 30, 2014. | |||||||||||||||||
The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Level | December 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Interest rate swaps | 2 | $ | (1,375 | ) | $ | (2,696 | ) | ||||||||||
Deferred compensation plan—assets | 1 | 14,963 | 11,916 | ||||||||||||||
Deferred compensation plan—liabilities | 1 | (14,974 | ) | (11,913 | ) | ||||||||||||
The fair values of our interest rate swaps were determined based on industry-standard valuation models. Such models project future cash flows and discount the future amounts to present value using market-based observable inputs including interest rate curves. See note 16 for discussion of our interest rate swaps. | |||||||||||||||||
The Second Amended and Restated Deferred Compensation Plan of Texas Roadhouse Management Corp., as amended, (the "Deferred Compensation Plan") is a nonqualified deferred compensation plan which allows highly compensated employees to defer receipt of a portion of their compensation and contribute such amounts to one or more investment funds held in a rabbi trust. We report the accounts of the rabbi trust in our consolidated financial statements. These investments are considered trading securities and are reported at fair value based on third-party broker statements. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense in the consolidated statements of income and comprehensive income. | |||||||||||||||||
The following table presents the fair values for our assets and liabilities measured on a nonrecurring basis: | |||||||||||||||||
Total losses | |||||||||||||||||
Fair Value Measurements | 52 Weeks | 53 Weeks | |||||||||||||||
Ended | Ended | ||||||||||||||||
Level | December 30, | December 31, | December 30, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Long-lived assets | 2 | $ | — | $ | 1,203 | $ | 15 | $ | 195 | ||||||||
Goodwill | 3 | — | — | 626 | — | ||||||||||||
Long-lived assets included land and building related to a previously closed restaurant which was sold for a purchase price of $1.2 million, net of closing costs, during the 13 weeks ended July 1, 2014. At December 31, 2013, these assets were valued using Level 2 inputs, primarily broker estimates of sales price based on offers on the property, and included cost to market and/or sell the assets. | |||||||||||||||||
The loss on goodwill in the table above relates to one underperforming restaurant in which the carrying value of the associated goodwill was reduced to zero based on their historical results and future trends of operations. We determined the fair value of the underperforming restaurant using unobservable inputs, including sales projections and present value techniques. This charge is included in Impairment and closure costs in our consolidated statements of income and comprehensive income. For further discussion of impairment charges, see note 15. | |||||||||||||||||
At December 30, 2014 and December 31, 2013, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values based on the short-term nature of these instruments. The fair value of our amended revolving credit facility at December 30, 2014 and December 31, 2013 approximated its carrying value since it is a variable rate credit facility (Level 2). The fair value of our installment loans is estimated based on the current rates offered to us for instruments of similar terms and maturities. The carrying amounts and related estimated fair values for our installment loans are as follows: | |||||||||||||||||
December 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Installment loans—Level 2 | $ | 822 | $ | 955 | $ | 1,233 | $ | 1,434 | |||||||||
Impairment_and_Closure_Costs
Impairment and Closure Costs | 12 Months Ended |
Dec. 30, 2014 | |
Impairment and Closure Costs | |
Impairment and Closure Costs | |
(15) Impairment and Closure Costs | |
We recorded impairment charges of $0.6 million, $0.4 million and $1.6 million for the years ended December 30, 2014, December 31, 2013, and December 25, 2012, respectively, related to goodwill and/or long-lived assets. These charges were measured and recognized following current accounting guidance which requires that the carrying value of these assets be tested for impairment whenever circumstances indicate that impairment may exist, or at least annually in the case of goodwill. Refer to note 2 for further discussion of the methodology used by us to test for long-lived asset and goodwill impairment. | |
Impairment charges in 2014 included $0.6 million associated with the impairment of goodwill related to one restaurant. The goodwill impairment charges in 2014 resulted from our annual testing which relies, in part, on the historical trends and anticipated future trends of operations of individual restaurants. | |
Impairment charges in 2013 included $0.2 million related to the write-down of a building associated with one restaurant closed in 2009. The write-down of the building was based on broker estimates of sales price based on offers on the property. The remaining $0.2 million in expenses were ongoing closure costs associated with one restaurant that was closed in 2012 and one restaurant that was closed in 2009. | |
Impairment charges in 2012 included $0.5 million associated with the impairment of goodwill and intangible assets related to one restaurant and $0.9 million related to the write-down of building, equipment and furniture and fixtures associated with one restaurant closed in 2012. The goodwill impairment charges in 2012 resulted from our annual testing which relies, in part, on the historical trends and anticipated future trends of operations of individual restaurants. The remaining $0.2 million in expenses were ongoing closure costs associated with one restaurant that was closed in 2012 and one restaurant that was closed in 2009. | |
Derivative_and_Hedging_Activit
Derivative and Hedging Activities | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Derivative and Hedging Activities | |||||||||||||||||
Derivative and Hedging Activities | |||||||||||||||||
(16) Derivative and Hedging Activities | |||||||||||||||||
We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments under FASB ASC 815, Derivatives and Hedging ("ASC 815"). We use interest rate-related derivative instruments to manage our exposure to fluctuations of interest rates. By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We attempt to minimize the credit risk by entering into transactions with high-quality counterparties whose credit rating is evaluated on a quarterly basis. Our counterparty in the interest rate swaps is JP Morgan Chase Bank, N.A. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be taken. | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
On October 22, 2008, we entered into an interest rate swap, starting on November 7, 2008, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our amended revolving credit facility. Under the terms of the swap, we pay a fixed rate of 3.83% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on November 7, 2015, effectively resulting in a fixed rate on the $25.0 million notional amount. | |||||||||||||||||
On January 7, 2009, we entered into an interest rate swap, starting on February 7, 2009, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our amended revolving credit facility. Under the terms of the swap, we pay a fixed rate of 2.34% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on January 7, 2016, effectively resulting in a fixed rate on the $25.0 million notional amount. | |||||||||||||||||
We entered into the above interest rate swaps with the objective of eliminating the variability of our interest cost that arises because of changes in the variable interest rate for the designated interest payments. Changes in the fair value of the interest rate swaps will be reported as a component of accumulated other comprehensive income or loss ("AOCI"). Additionally, amounts related to the yield adjustment of the hedged interest payments are subsequently reclassified into interest expense in the same period which the related interest affects earnings. We will reclassify any gain or loss from AOCI, net of tax, in our consolidated balance sheet to interest expense in our consolidated statement of income and comprehensive income when the interest rate swap expires or at the time we choose to terminate the swap. See note 14 for fair value discussion of these interest rate swaps. | |||||||||||||||||
The following table summarizes the fair value and presentation in the consolidated balance sheets for derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||
Balance Sheet | December 30, | December 31, | December 30, | December 31, | |||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Derivative Contracts Designated as Hedging Instruments under ASC 815 | -1 | ||||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 1,375 | $ | 2,696 | |||||||||
| | | | | | | | | | | | | | | | | |
Total Derivative Contracts | $ | — | $ | — | $ | 1,375 | $ | 2,696 | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | The current portion of derivative assets and liabilities is included in other accrued liabilities while the long-term portion is included in other liabilities on the consolidated balance sheets. | ||||||||||||||||
The following table summarizes the effect of our interest rate swaps in the consolidated statements of income and comprehensive income for the 52 and 53 weeks ended December 30, 2014 and December 31, 2013, respectively: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
December 30, | December 31, | December 25, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Gain recognized in AOCI, net of tax (effective portion) | $ | 808 | $ | 809 | $ | 148 | |||||||||||
Loss reclassified from AOCI to income (effective portion) | $ | 1,480 | $ | 1,474 | $ | 1,444 | |||||||||||
The loss reclassified from AOCI to income was recognized in interest expense on our consolidated statements of income and comprehensive income. For each of the fiscal periods ended December 30, 2014, December 31, 2013 and December 25, 2012, we did not recognize any gain or loss due to hedge ineffectiveness related to the derivative instruments in the consolidated statements of income and comprehensive income. | |||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 30, 2014 | |
Related Party Transactions | |
Related Party Transactions | |
(17) Related Party Transactions | |
The Longview, Texas restaurant, which was acquired by us in connection with the completion of our initial public offering, leases the land and restaurant building from an entity controlled by Steven L. Ortiz, our former Chief Operating Officer. The initial lease term was 15 years and was scheduled to terminate in November 2014. We exercised our first renewal term so the lease will now expire on October 31, 2019. The lease can be renewed for three additional terms of five years each. Rent is approximately $20,500 per month. The lease can be terminated if the tenant fails to pay the rent on a timely basis, fails to maintain the insurance specified in the lease, fails to maintain the building or property or becomes insolvent. Total rent payments were approximately $0.2 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012. | |
The Bossier City, Louisiana restaurant, of which Mr. Ortiz beneficially owns 66.0% and we own 5.0%, leases the land and building from an entity owned by Mr. Ortiz. The lease term is 15 years and will terminate on March 31, 2020. Rent is approximately $16,600 per month and escalates 10% each five years during the term. The next rent escalation is in the second quarter of 2015. The lease can be terminated if the tenant fails to pay rent on a timely basis, fails to maintain insurance, abandons the property or becomes insolvent. Total rent payments were approximately $0.2 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012. | |
We have 14 franchise restaurants owned in whole or part by certain officers, directors and stockholders of the Company as of December 30, 2014. As of December 31, 2013 and December 25, 2012, we had 15 franchise restaurants owned in whole or part by certain officers, directors and stockholders of the Company. These entities paid us fees of $2.5 million, $2.4 million and $2.3 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. As discussed in note 12, we are contingently liable on leases which are related to three of these restaurants. | |
On November 26, 2014, we acquired the remaining ownership interests of a franchise restaurant owned in part by us and certain officers or stockholders of the Company. Prior to this acquisition, we owned 5% interest in the franchise restaurant which we accounted for using the equity method. While we did exercise significant control over the restaurant prior to our acquisition of the remaining ownership interests, we did not consolidate their financial position, results of operations and/or cash flows as it was immaterial to our financial position, results of operations and/or cash flows. See note 3 for further discussion of the acquisition. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
(18) Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
2014 | |||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 397,142 | $ | 395,363 | $ | 385,218 | $ | 404,425 | $ | 1,582,148 | |||||||
Total costs and expenses | $ | 356,958 | $ | 360,962 | $ | 356,397 | $ | 377,382 | $ | 1,451,699 | |||||||
Income from operations | $ | 40,184 | $ | 34,401 | $ | 28,821 | $ | 27,043 | $ | 130,449 | |||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 26,465 | $ | 23,081 | $ | 18,881 | $ | 18,595 | $ | 87,022 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.33 | $ | 0.27 | $ | 0.27 | $ | 1.25 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.33 | $ | 0.27 | $ | 0.26 | $ | 1.23 | |||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.60 | |||||||
2013 | |||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 359,676 | $ | 352,119 | $ | 334,770 | $ | 376,020 | $ | 1,422,585 | |||||||
Total costs and expenses | $ | 321,508 | $ | 322,322 | $ | 309,074 | $ | 349,966 | $ | 1,302,870 | |||||||
Income from operations | $ | 38,168 | $ | 29,797 | $ | 25,696 | $ | 26,054 | $ | 119,715 | |||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 26,171 | $ | 19,963 | $ | 17,170 | $ | 17,119 | $ | 80,423 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.29 | $ | 0.24 | $ | 0.24 | $ | 1.15 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.28 | $ | 0.24 | $ | 0.24 | $ | 1.13 | |||||||
Cash dividends declared per share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.48 | |||||||
In the fourth quarter of 2014, we recorded $0.6 million ($0.4 million after-tax) associated with the impairment of goodwill related to one restaurant in which the carrying value was reduced to fair value. See note 15 for further discussion of impairment and closure costs. | |||||||||||||||||
In the fourth quarter of 2013, we recorded a gain of $1.8 million ($1.2 million after-tax) associated with the sale of the Aspen Creek concept, including two restaurants. The fourth quarter of 2013 also includes an estimated impact of $0.03 to $0.04 per share for the 53rd week. See note 2 for further discussion. | |||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 30, 2014 | |||||
Summary of Significant Accounting Policies | |||||
Principles of Consolidation | |||||
(a) Principles of Consolidation | |||||
As of December 30, 2014 and December 31, 2013, we owned a 5.0% to 10.0% equity interest in 23 restaurants, respectively. Additionally, as of December 30, 2014 and December 31, 2013, we owned a 40% equity interest in four non-Texas Roadhouse restaurants as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. While we exercise significant control over these Texas Roadhouse franchise restaurants, we do not consolidate their financial position, results of operations or cash flows as it is immaterial to our consolidated financial position, results of operations and/or cash flows. Our investments in these unconsolidated affiliates are included in Other assets in our consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our consolidated statements of income and comprehensive income under Equity income from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the companies whose accounts have been consolidated have been eliminated. | |||||
Fiscal Year | |||||
(b) Fiscal Year | |||||
We utilize a 52 or 53 week accounting period that ends on the last Tuesday in December. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal years 2014 and 2012 were 52 weeks in length. Fiscal year 2013 was 53 weeks in length. In fiscal 2013, the 53rd week added approximately $32.0 million to restaurant sales and total revenues and an estimated $0.03 to $0.04 to diluted earnings per share in our consolidated statements of income and comprehensive income. | |||||
Cash and Cash Equivalents | |||||
(c) Cash and Cash Equivalents | |||||
We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Book overdrafts are recorded in accounts payable and are included within operating cash flows. Cash and cash equivalents also included receivables from credit card companies, which amounted to $7.0 million and $7.7 million at December 30, 2014 and December 31, 2013, respectively, because the balances are settled within two to three business days. | |||||
Receivables | |||||
(d) Receivables | |||||
Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening and other expenses, and amounts due for royalty fees from franchise restaurants. | |||||
Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience. We review our allowance for doubtful accounts quarterly. Past due balances over 120 days and a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||
Inventories | |||||
(e) Inventories | |||||
Inventories, consisting principally of food, beverages and supplies, are valued at the lower of cost (first-in, first-out) or market. | |||||
Pre-opening Expenses | |||||
(f) Pre-opening Expenses | |||||
Pre-opening expenses are charged to operations as incurred. These costs include opening team and training compensation and benefits, travel expenses, rent, food, beverage and other initial supplies and expenses incurred prior to a restaurant opening for business. | |||||
Property and Equipment | |||||
(g) Property and Equipment | |||||
Property and equipment are stated at cost. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight-line method. In some cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods. See note 2(p) for further discussion of leases and leasehold improvements. Depreciation and amortization expense as shown on our consolidated statements of income and comprehensive income is substantially all attributable to restaurant-level assets. | |||||
The estimated useful lives are: | |||||
Land improvements | 10 - 25 years | ||||
Buildings and leasehold improvements | 10 - 25 years | ||||
Equipment and smallwares | 3 - 10 years | ||||
Furniture and fixtures | 3 - 10 years | ||||
The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net. | |||||
Repairs and maintenance expense amounted to $17.9 million, $15.9 million and $13.8 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. These costs are included in other operating costs in our consolidated statements of income and comprehensive income. | |||||
Impairment of Goodwill | |||||
(h) Impairment of Goodwill | |||||
Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other ("ASC 350"), we perform tests to assess potential impairments at the end of each fiscal year or during the year if an event or other circumstance indicates that goodwill may be impaired. Our assessment is performed at the reporting unit level, which is at the individual restaurant level. In the first step of the review process, we compare the estimated fair value of the restaurant with its carrying value, including goodwill. If the estimated fair value of the restaurant exceeds its carrying amount, no further analysis is needed. If the estimated fair value of the restaurant is less than its carrying amount, the second step of the review process requires the calculation of the implied fair value of the goodwill by allocating the estimated fair value of the restaurant to all of the assets and liabilities of the restaurant as if it had been acquired in a business combination. If the carrying value of the goodwill associated with the restaurant exceeds the implied fair value of the goodwill, an impairment loss is recognized for that excess amount. | |||||
The valuation approaches used to determine fair value are subject to key judgments and assumptions that are sensitive to change such as judgment and assumptions about appropriate revenue growth rates, operating margins, weighted average cost of capital and comparable company and acquisition market multiples. In estimating the fair value using the capitalization of earnings method or discounted cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods, expectations of future sales growth and terminal value. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. When developing these key judgments and assumptions, we consider economic, operational and market conditions that could impact fair value. The judgments and assumptions used are consistent with what we believe hypothetical market participants would use. However, estimates are inherently uncertain and represent only our reasonable expectations regarding future developments. If the estimates used in performing the impairment test prove inaccurate, the fair value of the restaurants may ultimately prove to be significantly lower, thereby causing the carrying value to exceed the fair value and indicating impairment has occurred. | |||||
In 2014 and 2012, as a result of our annual goodwill impairment analyses, we recorded goodwill impairment charges of $0.6 million and $0.3 million, respectively, as discussed further in note 15. In 2013, as a result of our annual goodwill impairment analysis, we determined that there was no goodwill impairment. Refer to note 6 for additional information related to goodwill and intangible assets. | |||||
Other Assets | |||||
(i) Other Assets | |||||
Other assets consist primarily of deferred compensation plan assets, investments in foreign operations, deposits and costs related to the issuance of debt. The debt issuance costs are being amortized to interest expense over the term of the related debt. For further discussion of the deferred compensation plan, see note 14. | |||||
Impairment or Disposal of Long-lived Assets | |||||
(j) Impairment or Disposal of Long-lived Assets | |||||
In accordance with ASC 360-10-05, Property, Plant and Equipment, long-lived assets related to each restaurant to be held and used in the business, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. When we evaluate restaurants, cash flows are the primary indicator of impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12-month cash flow results below $300,000 at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its estimated useful life, which can be for a period of over 20 years. In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. If the carrying amount of the restaurant exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the assets. We generally measure fair value by independent third party appraisal. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. In 2014, as a result of our impairment analysis, we determined that there was no impairment. In 2013, we recorded $0.2 million of impairment related to one previously closed restaurant. In 2012, as a result of our impairment analysis, we determined that the building, equipment, furniture and fixtures at one restaurant was impaired. For further discussion regarding closures and impairments recorded in 2014, 2013 and 2012, including the impairments of goodwill and other long-lived assets, refer to note 15. | |||||
Insurance Reserves | |||||
(k) Insurance Reserves | |||||
We self-insure a significant portion of expected losses under our workers compensation, general liability, employment practices liability, property insurance and employee healthcare programs. We purchase insurance for individual claims that exceed the amounts listed below: | |||||
Employment practices liability | $ | 250,000 | |||
Workers compensation | $ | 350,000 | |||
General liability | $ | 250,000 | |||
Property | $ | 50,000 | |||
Employee healthcare | $ | 250,000 | |||
We record a liability for unresolved claims and for an estimate of incurred but not reported claims at our anticipated cost based on estimates provided by management, a third party administrator and/or actuary. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances. | |||||
Segment Reporting | |||||
(l) Segment Reporting | |||||
We consider our restaurant and franchising operations as similar and have aggregated them into a single reportable segment. The majority of the restaurants operate in the U.S. within the casual dining segment of the restaurant industry, providing similar products to similar customers. The restaurants also possess similar pricing structures, resulting in similar long-term expected financial performance characteristics. As of December 30, 2014, we operated 372 restaurants, each as a single operating segment, and franchised an additional 79 restaurants. Revenue from external customers is derived principally from food and beverage sales. We do not rely on any major customers as a source of revenue. | |||||
Revenue Recognition | |||||
(m) Revenue Recognition | |||||
Revenue from restaurant sales is recognized when food and beverage products are sold. Deferred revenue primarily represents our liability for gift cards that have been sold, but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. | |||||
For some of the gift cards that were sold, the likelihood of redemption is remote. When the likelihood of a gift card's redemption is determined to be remote, we record a breakage adjustment and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine when the likelihood of a gift card's redemption becomes remote and have determined that approximately 4% of the value of the gift cards sold by our company and our third party retailers will never be redeemed. The methodology we use to match the expected redemption value of unredeemed gift cards to our historic redemption patterns is to amortize the historic breakage rates over a three year period. As a result, the amount of unredeemed gift card liability included in deferred revenue is the full value of unredeemed gift cards less the amortized portion of the breakage rates. We recorded our gift card breakage adjustment as a reduction of other operating expense in our consolidated statements of income and comprehensive income. We review and adjust our estimates on a semi-annual basis. | |||||
We franchise Texas Roadhouse restaurants. We execute franchise agreements for each franchise restaurant which sets out the terms of our arrangement with the franchisee. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. Subject to our approval and payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration. We collect ongoing royalties of 2.0% to 4.0% of sales from our domestic franchisees, along with royalties paid to us by our international franchisees. These ongoing royalties are reflected in the accompanying consolidated statements of income and comprehensive income as franchise royalties and fees. We recognize initial franchise fees as revenue after performing substantially all initial services or conditions required by the franchise agreement, which is generally upon the opening of a restaurant. We received initial franchise fees of $0.6 million, $0.1 million and $0.2 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. Continuing franchise royalties are recognized as revenue as the fees are earned. We also perform supervisory and administrative services for certain franchise restaurants for which we receive management fees, which are recognized as the services are performed. Revenue from supervisory and administrative services is recorded as a reduction of general and administrative expenses in the accompanying consolidated statements of income and comprehensive income. Total revenue from supervisory and administrative services recorded for the years ended December 30, 2014, December 31, 2013 and December 25, 2012 was approximately $0.9 million, $0.7 million and $0.6 million, respectively. | |||||
Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue in the consolidated statements of income and comprehensive income. | |||||
Income Taxes | |||||
(n) Income Taxes | |||||
We account for income taxes in accordance with ASC 740, Income Taxes, under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. | |||||
Advertising | |||||
(o) Advertising | |||||
We have a domestic system-wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund's activity for the years ended December 30, 2014, December 31, 2013 and December 25, 2012. Domestic company and franchise restaurants are required to remit a designated portion of sales, currently 0.3%, to the advertising fund. These reimbursements do not exceed the costs incurred by the advertising fund throughout the year associated with various marketing programs which are developed internally by us. Therefore, the net amount of the advertising costs incurred less amounts remitted by company and franchise restaurants is included in general and administrative expense in our consolidated statements of income and comprehensive income. | |||||
Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income and comprehensive income. These costs and the company-owned restaurant contribution amounted to approximately $10.8 million, $10.1 million and $9.1 million for the years ended December 30, 2014, December 31, 2013 and December 25, 2012, respectively. | |||||
Leases and Leasehold Improvements | |||||
(p) Leases and Leasehold Improvements | |||||
We lease land, buildings and/or certain equipment for the majority of our restaurants under non-cancelable lease agreements. Our land and/or building leases typically have initial terms ranging from 10 to 15 years, and certain renewal options for one or more five-year periods. We account for leases in accordance with ASC 840, Leases, and other related authoritative guidance. When determining the lease term, we include option periods for which failure to renew the lease imposes a penalty on us in such an amount that a renewal appears, at the inception of the lease, to be reasonably assured. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements which might become impaired if we choose not to continue the use of the leased property. | |||||
Certain of our operating leases contain predetermined fixed escalations of the minimum rent during the original term of the lease. For these leases, we recognize the related rent expense on a straight-line basis over the lease term and record the difference between the amounts charged to operations and amounts paid as deferred rent. We generally do not receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease. We may receive rent holidays, which would begin on the possession date and end when the lease commences, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense. | |||||
Additionally, certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. This may result in some variability in rent expense as a percentage of sales over the term of the lease in restaurants where we pay contingent rent. | |||||
The judgment regarding the probable term for each restaurant property lease impacts the classification and accounting for a lease as capital or operating, the rent holiday and/or escalation in payments that are taken into consideration when calculating straight-line rent and the term over which leasehold improvements for each restaurant are amortized. The material factor we consider when making this judgment is the total amount invested in the restaurant at the inception of the lease and whether management believes that renewal appears reasonably assured. While a different term may produce materially different amounts of depreciation, amortization and rent expense than reported, our historical lease renewal rates support the judgments made. We have not made any changes to the nature of the assumptions used to account for leases in any of the fiscal years presented in our consolidated financial statements. | |||||
Use of Estimates | |||||
(q) Use of Estimates | |||||
We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to insurance reserves, share-based compensation expense and income taxes. Actual results could differ from those estimates. | |||||
Comprehensive Income | |||||
(r) Comprehensive Income | |||||
ASC 220, Comprehensive Income, establishes standards for reporting and the presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and other comprehensive income (loss) items that are excluded from net income under GAAP in the United States. Other comprehensive income (loss) consists of the effective unrealized portion of changes in fair value of cash flow hedges and foreign currency translation adjustments. The foreign currency translation adjustment included in comprehensive income on the consolidated statements of income and comprehensive income represents the unrealized impact of translating the financial statements of our foreign investment. This amount is not included in net income and would only be realized upon the disposition of the business. | |||||
Fair Value of Financial Instruments | |||||
(s) Fair Value of Financial Instruments | |||||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy. | |||||
Derivative Instruments and Hedging Activities | |||||
(t) Derivative Instruments and Hedging Activities | |||||
We do not use derivative instruments for trading purposes. Currently, our only free standing derivative instruments are two interest rate swap agreements. | |||||
We account for derivatives and hedging activities in accordance with ASC 815, Derivatives and Hedging, which requires that all derivative instruments be recorded on the consolidated balance sheet at their respective fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship. Our current derivatives have been designated and qualify as cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. There was no hedge ineffectiveness recognized during the years ended December 30, 2014, December 31, 2013 and December 25, 2012. | |||||
Reclassifications | |||||
(u) Reclassifications | |||||
Certain prior year amounts have been reclassified in our consolidated financial statements to conform with current year presentation. | |||||
Recent Accounting Pronouncements | |||||
(v) Recent Accounting Pronouncements | |||||
Discontinued Operations | |||||
(Accounting Standards Update 2014-08, "ASU 2014-08") | |||||
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the requirements for reporting discontinued operations and modifies related disclosure requirements. ASU 2014-08 is effective prospectively for fiscal years beginning on or after December 15, 2014 (our 2015 fiscal year). The adoption of this guidance is not expected to have an impact on our consolidated financial position, results of operations or cash flows. | |||||
Revenue Recognition | |||||
(Accounting Standards Update 2014-09, "ASU 2014-09") | |||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years beginning on or after December 15, 2016 (our 2017 fiscal year). Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial position, results of operations, cash flows and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||||
Going Concern | |||||
(Accounting Standards Update 2014-15, "ASU 2014-15") | |||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires the management of the Company to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016 (our 2017 fiscal year) and early adoption is permitted. We do not expect this standard to have an impact on our consolidated financial position, results of operations or cash flows upon adoption. | |||||
Consolidation | |||||
(Accounting Standards Update 2015-02, "ASU 2015-02") | |||||
In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity may apply the amendments using a modified retrospective approach or a full retrospective application. We have not yet determined the effect, if any, of the standard on our consolidated financial position, results of operations or cash flows. | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 30, 2014 | |||||
Summary of Significant Accounting Policies | |||||
Schedule of estimated useful lives of property and equipment | |||||
Land improvements | 10 - 25 years | ||||
Buildings and leasehold improvements | 10 - 25 years | ||||
Equipment and smallwares | 3 - 10 years | ||||
Furniture and fixtures | 3 - 10 years | ||||
Schedule of type of individual claims against which there is no insurance purchase | |||||
Employment practices liability | $ | 250,000 | |||
Workers compensation | $ | 350,000 | |||
General liability | $ | 250,000 | |||
Property | $ | 50,000 | |||
Employee healthcare | $ | 250,000 | |||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Acquisitions and Divestitures | |||||||||||
Schedule of purchase price allocations | |||||||||||
Amounts | Measurement | As Adjusted | |||||||||
Previously | Period | ||||||||||
Recorded(1) | Adjustments(2) | ||||||||||
Current assets | $ | 64 | — | $ | 64 | ||||||
Property and equipment, net | 558 | 19 | 577 | ||||||||
Goodwill | 3,013 | 730 | 3,743 | ||||||||
Intangible asset | 1,154 | (749 | ) | 405 | |||||||
Current liabilities | (139 | ) | — | (139 | ) | ||||||
Other liabilities | (150 | ) | — | (150 | ) | ||||||
| | | | | | | | | | | |
$ | 4,500 | $ | 4,500 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | As previously reported in our 2013 Annual Report on Form 10-K. | ||||||||||
-2 | Measurement period adjustments were made during the 13 weeks ended April 1, 2014. | ||||||||||
Longterm_Debt_and_Obligations_1
Long-term Debt and Obligations Under Capital Leases (Tables) | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Long-term Debt | ||||||||
Schedule of long-term debt and capital lease obligations | ||||||||
December 30, | December 31, | |||||||
2014 | 2013 | |||||||
Installment loans, due 2015-2020 | $ | 822 | $ | 1,233 | ||||
Revolver | 50,000 | 50,000 | ||||||
| | | | | | | | |
50,822 | 51,233 | |||||||
Less current maturities | 129 | 243 | ||||||
| | | | | | | | |
$ | 50,693 | $ | 50,990 | |||||
| | | | | | | | |
| | | | | | | | |
Schedule of maturities of long-term debt | ||||||||
2015 | $ | 129 | ||||||
2016 | 143 | |||||||
2017 | 159 | |||||||
2018 | 50,177 | |||||||
2019 | 196 | |||||||
Thereafter | 18 | |||||||
| | | | | ||||
$ | 50,822 | |||||||
| | | | | ||||
| | | | | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Property and Equipment, Net | ||||||||
Schedule of property and equipment, net | ||||||||
December 30, | (As Adjusted) | |||||||
2014 | December 31, | |||||||
2013 | ||||||||
Land and improvements | $ | 105,055 | $ | 100,456 | ||||
Buildings and leasehold improvements | 519,905 | 457,282 | ||||||
Equipment and smallwares | 262,036 | 229,999 | ||||||
Furniture and fixtures | 80,637 | 70,828 | ||||||
Construction in progress | 20,730 | 25,516 | ||||||
Liquor licenses | 8,496 | 6,667 | ||||||
| | | | | | | | |
996,859 | 890,748 | |||||||
Accumulated depreciation and amortization | (347,222 | ) | (304,536 | ) | ||||
| | | | | | | | |
$ | 649,637 | $ | 586,212 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 30, 2014 | ||||||||
Goodwill and Intangible Assets | ||||||||
Schedule of changes in the carrying amount of goodwill and intangible assets | ||||||||
Goodwill | Intangible | |||||||
Assets | ||||||||
Balance as of December 25, 2012 | 113,435 | 9,264 | ||||||
Additions | 3,762 | 256 | ||||||
Amortization expense | — | (1,644 | ) | |||||
Disposals and other, net | — | — | ||||||
Impairment | — | — | ||||||
| | | | | | | | |
Balance as of December 31, 2013 (As adjusted) | 117,197 | 7,876 | ||||||
Additions | — | — | ||||||
Amortization expense | — | (1,673 | ) | |||||
Disposals and other, net | — | — | ||||||
Impairment | (626 | ) | — | |||||
| | | | | | | | |
Balance as of December 30, 2014 | 116,571 | 6,203 | ||||||
| | | | | | | | |
| | | | | | | | |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Leases | |||||||||||
Schedule of future minimum lease payments required for operating leases that have initial or remaining noncancelable terms in excess of one year | |||||||||||
Operating | |||||||||||
Leases | |||||||||||
2015 | $ | 33,338 | |||||||||
2016 | 33,094 | ||||||||||
2017 | 33,274 | ||||||||||
2018 | 33,519 | ||||||||||
2019 | 33,698 | ||||||||||
Thereafter | 443,494 | ||||||||||
| | | | | |||||||
Total | $ | 610,417 | |||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of rent expense for operating leases | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Minimum rent—occupancy | $ | 32,288 | $ | 28,191 | $ | 25,110 | |||||
Contingent rent | 886 | 787 | 687 | ||||||||
| | | | | | | | | | | |
Rent expense, occupancy | 33,174 | 28,978 | 25,797 | ||||||||
Minimum rent—equipment and other | 3,724 | 3,502 | 3,393 | ||||||||
| | | | | | | | | | | |
Rent expense | $ | 36,898 | $ | 32,480 | $ | 29,190 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Income Taxes | |||||||||||
Schedule of components of income tax (benefit) and provision | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 31,176 | $ | 28,648 | $ | 29,286 | |||||
State | 7,913 | 6,439 | 7,618 | ||||||||
Foreign | 381 | — | — | ||||||||
| | | | | | | | | | | |
Total current | 39,470 | 35,087 | 36,904 | ||||||||
Deferred: | |||||||||||
Federal | (379 | ) | (919 | ) | (1,511 | ) | |||||
State | (101 | ) | (28 | ) | (655 | ) | |||||
| | | | | | | | | | | |
Total deferred | (480 | ) | (947 | ) | (2,166 | ) | |||||
| | | | | | | | | | | |
Income tax provision | $ | 38,990 | $ | 34,140 | $ | 34,738 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of the statutory federal income tax rate to the entity's effective tax rate | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Tax at statutory federal rate | 35 | % | 35 | % | 35 | % | |||||
State and local tax, net of federal benefit | 3.5 | 3.5 | 3.7 | ||||||||
FICA tip tax credit | (6.9 | ) | (6.5 | ) | (6.2 | ) | |||||
Work opportunity tax credit | (1.0 | ) | (1.7 | ) | (0.9 | ) | |||||
Incentive stock options | (0.2 | ) | (0.7 | ) | (0.2 | ) | |||||
Nondeductible officer compensation | 0.2 | 0.4 | 1.2 | ||||||||
Net income attributable to noncontrolling interests | (1.0 | ) | (1.1 | ) | — | ||||||
Other | 0.4 | — | 0.2 | ||||||||
| | | | | | | | | | | |
Total | 30 | % | 28.9 | % | 32.8 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of deferred tax assets (liabilities) | |||||||||||
December 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Insurance reserves | $ | 4,577 | $ | 3,876 | |||||||
Other reserves | 715 | 515 | |||||||||
Deferred rent | 9,838 | 8,563 | |||||||||
Share-based compensation | 5,336 | 5,246 | |||||||||
Deferred revenue—gift cards | 5,524 | 3,860 | |||||||||
Deferred compensation | 5,564 | 4,200 | |||||||||
Other assets and liabilities | 2,972 | 3,311 | |||||||||
| | | | | | | | ||||
Total deferred tax asset | 34,526 | 29,571 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Property and equipment | (31,682 | ) | (27,585 | ) | |||||||
Goodwill and intangibles | (4,163 | ) | (3,304 | ) | |||||||
Other assets and liabilities | (1,912 | ) | (1,603 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liability | (37,757 | ) | (32,492 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (3,231 | ) | $ | (2,921 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Current deferred tax asset | $ | 2,773 | $ | 2,853 | |||||||
Noncurrent deferred tax liability | (6,004 | ) | (5,774 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (3,231 | ) | $ | (2,921 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of the beginning and ending liability for unrecognized tax benefits | |||||||||||
Uncertain tax | |||||||||||
positions | |||||||||||
impacting | |||||||||||
tax rate | |||||||||||
Balance at December 25, 2012 | $ | 182 | |||||||||
Additions to tax positions related to prior years | 102 | ||||||||||
Reductions due to exam settlements | (112 | ) | |||||||||
| | | | | |||||||
Balance at December 31, 2013 | 172 | ||||||||||
Additions to tax positions related to current year | — | ||||||||||
Reductions due to statute expiration | (43 | ) | |||||||||
Reductions due to exam settlement | (15 | ) | |||||||||
| | | | | |||||||
Balance at December 30, 2014 | $ | 114 | |||||||||
| | | | | |||||||
| | | | | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 30, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Summary of options and nonvested stock that were outstanding but not included in the computation of diluted earnings per share | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Nonvested stock | 16,740 | 23,520 | — | ||||||||
Options | — | — | 292,193 | ||||||||
| | | | | | | | | | | |
Total | 16,740 | 23,520 | 292,193 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of calculation of weighted average shares outstanding | |||||||||||
Fiscal Year Ended | |||||||||||
December 30, | December 31, | December 25, | |||||||||
2014 | 2013 | 2012 | |||||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 87,022 | $ | 80,423 | $ | 71,170 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719 | 70,089 | 70,026 | ||||||||
| | | | | | | | | | | |
Basic EPS | $ | 1.25 | $ | 1.15 | $ | 1.02 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719 | 70,089 | 70,026 | ||||||||
Dilutive effect of stock options and nonvested stock | 889 | 1,273 | 1,459 | ||||||||
| | | | | | | | | | | |
Shares—diluted | 70,608 | 71,362 | 71,485 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted EPS | $ | 1.23 | $ | 1.13 | $ | 1.00 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 30, 2014 | |||||
Commitments and Contingencies | |||||
Schedule of real estate lease agreements for franchises | |||||
Lease | Initial Lease | ||||
Assignment Date | Term Expiration | ||||
Everett, Massachusetts(1) | Sep-02 | Feb-18 | |||
Longmont, Colorado(1) | Oct-03 | May-19 | |||
Montgomeryville, Pennsylvania | Oct-04 | Jun-21 | |||
Fargo, North Dakota(1) | Feb-06 | Jul-16 | |||
Logan, Utah | Jan-09 | Aug-19 | |||
-1 | As discussed in note 17, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. | ||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 30, 2014 | ||||||||||||||
Share-based Compensation | ||||||||||||||
Summary of allocation of share-based compensation expense | ||||||||||||||
Fiscal Year Ended | ||||||||||||||
December 30, | December 31, | December 25, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Labor expense | $ | 5,523 | $ | 5,439 | $ | 4,570 | ||||||||
General and administrative expense | 9,360 | 9,301 | 8,623 | |||||||||||
| | | | | | | | | | | ||||
Total share-based compensation expense | $ | 14,883 | $ | 14,740 | $ | 13,193 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Summary of stock option activity | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Grant Date | Remaining | Value | ||||||||||||
Fair Value | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Outstanding at December 31, 2013 | 1,283,862 | $ | 18.68 | |||||||||||
Granted | 527,965 | 26.74 | ||||||||||||
Forfeited | (67,668 | ) | 20.09 | |||||||||||
Vested | (766,035 | ) | 19.2 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 30, 2014 | 978,124 | $ | 22.52 | 0.88 | $ | 33,041 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Summary of restricted stock unit activity | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Outstanding at December 31, 2013 | 1,043,438 | $ | 13.77 | |||||||||||
Granted | — | — | ||||||||||||
Forfeited | (3,362 | ) | 15.05 | |||||||||||
Exercised | (403,146 | ) | 13.09 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 30, 2014 | 636,930 | $ | 14.2 | 1.74 | $ | 12,474 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 30, 2014 | 636,930 | $ | 14.2 | 1.74 | $ | 12,474 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Schedule of fair value of assets and liabilities measured on a recurring basis | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Level | December 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Interest rate swaps | 2 | $ | (1,375 | ) | $ | (2,696 | ) | ||||||||||
Deferred compensation plan—assets | 1 | 14,963 | 11,916 | ||||||||||||||
Deferred compensation plan—liabilities | 1 | (14,974 | ) | (11,913 | ) | ||||||||||||
Schedule of fair value of assets and liabilities measured on a nonrecurring basis | |||||||||||||||||
Total losses | |||||||||||||||||
Fair Value Measurements | 52 Weeks | 53 Weeks | |||||||||||||||
Ended | Ended | ||||||||||||||||
Level | December 30, | December 31, | December 30, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Long-lived assets | 2 | $ | — | $ | 1,203 | $ | 15 | $ | 195 | ||||||||
Goodwill | 3 | — | — | 626 | — | ||||||||||||
Schedule of carrying amounts and related estimated fair values for installment loans | |||||||||||||||||
December 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Installment loans—Level 2 | $ | 822 | $ | 955 | $ | 1,233 | $ | 1,434 | |||||||||
Derivative_and_Hedging_Activit1
Derivative and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Derivative and Hedging Activities | |||||||||||||||||
Summary of fair value presentation of derivative instruments designated as hedging instrument | |||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||
Balance Sheet | December 30, | December 31, | December 30, | December 31, | |||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Derivative Contracts Designated as Hedging Instruments under ASC 815 | -1 | ||||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 1,375 | $ | 2,696 | |||||||||
| | | | | | | | | | | | | | | | | |
Total Derivative Contracts | $ | — | $ | — | $ | 1,375 | $ | 2,696 | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | The current portion of derivative assets and liabilities is included in other accrued liabilities while the long-term portion is included in other liabilities on the consolidated balance sheets. | ||||||||||||||||
Summary of effect of interest rate swaps in the consolidated statements of income and comprehensive income | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
December 30, | December 31, | December 25, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Gain recognized in AOCI, net of tax (effective portion) | $ | 808 | $ | 809 | $ | 148 | |||||||||||
Loss reclassified from AOCI to income (effective portion) | $ | 1,480 | $ | 1,474 | $ | 1,444 | |||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 30, 2014 | |||||||||||||||||
Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
Schedule of selected quarterly financial data | |||||||||||||||||
2014 | |||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 397,142 | $ | 395,363 | $ | 385,218 | $ | 404,425 | $ | 1,582,148 | |||||||
Total costs and expenses | $ | 356,958 | $ | 360,962 | $ | 356,397 | $ | 377,382 | $ | 1,451,699 | |||||||
Income from operations | $ | 40,184 | $ | 34,401 | $ | 28,821 | $ | 27,043 | $ | 130,449 | |||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 26,465 | $ | 23,081 | $ | 18,881 | $ | 18,595 | $ | 87,022 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.33 | $ | 0.27 | $ | 0.27 | $ | 1.25 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.33 | $ | 0.27 | $ | 0.26 | $ | 1.23 | |||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.60 | |||||||
2013 | |||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 359,676 | $ | 352,119 | $ | 334,770 | $ | 376,020 | $ | 1,422,585 | |||||||
Total costs and expenses | $ | 321,508 | $ | 322,322 | $ | 309,074 | $ | 349,966 | $ | 1,302,870 | |||||||
Income from operations | $ | 38,168 | $ | 29,797 | $ | 25,696 | $ | 26,054 | $ | 119,715 | |||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 26,171 | $ | 19,963 | $ | 17,170 | $ | 17,119 | $ | 80,423 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.29 | $ | 0.24 | $ | 0.24 | $ | 1.15 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.28 | $ | 0.24 | $ | 0.24 | $ | 1.13 | |||||||
Cash dividends declared per share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.48 | |||||||
Description_of_Business_Detail
Description of Business (Details) | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
restaurant | restaurant | ||
item | item | ||
Description of Business | |||
Threshold percentage of ownership for consolidated subsidiaries | 50.00% | 50.00% | 50.00% |
Number of restaurants | 451 | 420 | |
Number of states in which restaurants operate | 49 | 48 | |
Number of countries in which restaurants operate | 4 | 3 | |
Company-owned | |||
Description of Business | |||
Number of restaurants | 372 | 346 | |
Company-owned | Wholly-owned | |||
Description of Business | |||
Number of restaurants | 356 | 331 | |
Company-owned | Majority-owned | |||
Description of Business | |||
Number of restaurants | 16 | 15 | |
Franchise | |||
Description of Business | |||
Number of restaurants | 79 | 74 | |
Franchise | Minority-owned | |||
Description of Business | |||
Number of restaurants | 23 | 23 | |
Franchise | Minority-owned | Minimum | |||
Description of Business | |||
Ownership percentage by entity | 5.00% | 5.00% | |
Franchise | Minority-owned | Maximum | |||
Description of Business | |||
Ownership percentage by entity | 10.00% | 10.00% | |
Franchised and/or licensed | |||
Description of Business | |||
Number of restaurants | 74 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 30, 2014 | Sep. 30, 2014 | Jul. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | Sep. 24, 2013 | Jun. 25, 2013 | Mar. 26, 2013 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
restaurant | restaurant | restaurant | restaurant | restaurant | ||||||||
Principles of Consolidation | ||||||||||||
Number of restaurants | 420 | 451 | 420 | 451 | 420 | |||||||
Fiscal Year | ||||||||||||
Length of fiscal year | 364 days | 371 days | 364 days | |||||||||
Restaurant sales | $32,000,000 | $1,568,556,000 | $1,410,118,000 | $1,252,358,000 | ||||||||
Total revenue | 32,000,000 | 404,425,000 | 385,218,000 | 395,363,000 | 397,142,000 | 376,020,000 | 334,770,000 | 352,119,000 | 359,676,000 | 1,582,148,000 | 1,422,585,000 | 1,263,331,000 |
Diluted EPS (in dollars per share) | $0.26 | $0.27 | $0.33 | $0.37 | $0.24 | $0.24 | $0.28 | $0.37 | $1.23 | $1.13 | $1 | |
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents included receivables from credit card entity | $7,700,000 | $7,000,000 | $7,700,000 | $7,000,000 | $7,700,000 | |||||||
Settlement period of credit card receivables, minimum | 2 days | |||||||||||
Settlement period of credit card receivables, maximum | 3 days | |||||||||||
Receivables | ||||||||||||
Minimum number of days receivable are past due, warranting individual evaluation for collectability | 120 days | |||||||||||
Minimum | ||||||||||||
Fiscal Year | ||||||||||||
Length of fiscal year | 364 days | |||||||||||
Length of fiscal quarter | 91 days | |||||||||||
Diluted EPS (in dollars per share) | $0.03 | $0.03 | ||||||||||
Maximum | ||||||||||||
Fiscal Year | ||||||||||||
Length of fiscal year | 371 days | |||||||||||
Length of fiscal quarter | 98 days | |||||||||||
Diluted EPS (in dollars per share) | $0.04 | $0.04 | ||||||||||
Unconsolidated restaurants | ||||||||||||
Principles of Consolidation | ||||||||||||
Number of restaurants | 23 | 23 | 23 | 23 | 23 | |||||||
Unconsolidated restaurants | Minimum | ||||||||||||
Principles of Consolidation | ||||||||||||
Ownership percentage by entity | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||
Unconsolidated restaurants | Maximum | ||||||||||||
Principles of Consolidation | ||||||||||||
Ownership percentage by entity | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||||||
Unconsolidated restaurants | China restaurant operator | ||||||||||||
Principles of Consolidation | ||||||||||||
Ownership percentage by entity | 40.00% | 40.00% | 40.00% | 40.00% | 40.00% | |||||||
Number of restaurants | 4 | 4 | 4 | 4 | 4 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
restaurant | restaurant | restaurant | restaurant | |||
Property and Equipment | ||||||
Repairs and maintenance expense | $17,900,000 | $15,900,000 | $13,800,000 | |||
Impairment of Goodwill | ||||||
Number of restaurants impaired | 2 | 1 | 1 | |||
Impairment of goodwill | 600,000 | 626,000 | 0 | 300,000 | ||
Impairment or Disposal of Long-Lived Assets | ||||||
Maximum threshold amount considered for impairment | 300,000 | |||||
Impairment analysis, estimated useful life of operating a restaurant | 20 years | |||||
Impairment of restaurant | $0 | $200,000 | ||||
Number of long-lived assets impaired | 1 | |||||
Land improvements | Minimum | ||||||
Property and Equipment | ||||||
Estimated useful life | 10 years | |||||
Land improvements | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful life | 25 years | |||||
Buildings and leasehold improvements | Minimum | ||||||
Property and Equipment | ||||||
Estimated useful life | 3 years | |||||
Buildings and leasehold improvements | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful life | 10 years | |||||
Equipment and smallwares | Minimum | ||||||
Property and Equipment | ||||||
Estimated useful life | 3 years | |||||
Equipment and smallwares | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful life | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | Dec. 30, 2014 |
Employment practices liability | |
Insurance Reserves | |
Self-insurance limits | $250,000 |
Workers compensation | |
Insurance Reserves | |
Self-insurance limits | 350,000 |
General liability | |
Insurance Reserves | |
Self-insurance limits | 250,000 |
Property | |
Insurance Reserves | |
Self-insurance limits | 50,000 |
Employee healthcare | |
Insurance Reserves | |
Self-insurance limits | $250,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) | Dec. 30, 2014 | Dec. 31, 2013 |
restaurant | restaurant | |
Segment Reporting | ||
Number of restaurants | 451 | 420 |
Company-owned | ||
Segment Reporting | ||
Number of restaurants | 372 | 346 |
Franchise | ||
Segment Reporting | ||
Number of restaurants | 79 | 74 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Revenue Recognition | |||
Estimated gift cards sold by Company that are never redeemed (as a percent) | 4.00% | ||
Amortization period of gift cards breakage | 3 years | ||
Ongoing royalties received as a percentage of sales from domestic franchisees and international franchisee, low end of range | 2.00% | ||
Ongoing royalties received as a percentage of sales from domestic franchisees and international franchisee, high end of range | 4.00% | ||
Initial franchise fees | $0.60 | $0.10 | $0.20 |
Revenue recorded for supervisory and administrative services | 0.9 | 0.7 | 0.6 |
Advertising | |||
Designated portion of sales from domestic and franchise restaurants remitted to the advertising fund | 0.30% | ||
Company-owned restaurant contribution and other costs related to marketing initiatives | $10.80 | $10.10 | $9.10 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Details 6) | 12 Months Ended |
Dec. 30, 2014 | |
Leases and Leasehold Improvements | |
Lease renewal term | 5 years |
Land and/or building | Minimum | |
Leases and Leasehold Improvements | |
Lease terms | 10 years |
Lease renewal option | 1 year |
Land and/or building | Maximum | |
Leases and Leasehold Improvements | |
Lease terms | 15 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
item | |||
Derivative Instruments and Hedging Activities | |||
Number of free standing interest rate swap agreements | 2 | ||
Amount of hedge ineffectiveness | $0 | $0 | $0 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2013 | Dec. 30, 2014 | Dec. 31, 2013 | Nov. 26, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | Apr. 01, 2014 | Nov. 25, 2014 | |
restaurant | ||||||||
Acquisitions and Divestitures | ||||||||
Issuance of shares for franchise acquisition | $1,284,000 | |||||||
Gain on sale of Aspen Creek concept and restaurants | 1,800,000 | 1,800,000 | ||||||
Purchase price allocated | ||||||||
Goodwill | 117,197,000 | 116,571,000 | 117,197,000 | 117,197,000 | 113,435,000 | |||
Amortization expense relating to the intangible asset | 1,673,000 | 1,644,000 | ||||||
Measurement Period Adjustments | ||||||||
Purchase price allocated | ||||||||
Property and equipment, net | 19,000 | |||||||
Goodwill | 730,000 | |||||||
Intangible asset | -749,000 | |||||||
Franchise restaurant jointly owned | ||||||||
Acquisitions and Divestitures | ||||||||
Ownership percentage by entity | 5.00% | |||||||
Issuance of shares for franchise acquisition (in shares) | 40,699 | |||||||
Issuance of shares for franchise acquisition | 1,300,000 | |||||||
Consideration paid | 1,300,000 | |||||||
Book value of noncontrolling interest | 700,000 | |||||||
Cash received on sale | 200,000 | |||||||
Debt repayment | 1,300,000 | |||||||
Franchise restaurants in Ohio | ||||||||
Acquisitions and Divestitures | ||||||||
Cash received on sale | 1,500,000 | |||||||
Number of franchise restaurants acquired | 2 | |||||||
Aggregate transaction value | 6,000,000 | 6,000,000 | 6,000,000 | |||||
Purchase price allocated | ||||||||
Current assets | 64,000 | |||||||
Property and equipment, net | 577,000 | |||||||
Goodwill | 3,743,000 | |||||||
Intangible asset | 405,000 | |||||||
Current liabilities | -139,000 | |||||||
Other liabilities | -150,000 | |||||||
Purchase Price | 4,500,000 | |||||||
Intangible assets weighted-average life | 2 years 8 months 12 days | |||||||
Amortization expense relating to the intangible asset | 100,000 | |||||||
Franchise restaurants in Ohio | Amounts Previously Recorded | ||||||||
Purchase price allocated | ||||||||
Current assets | 64,000 | 64,000 | 64,000 | |||||
Property and equipment, net | 558,000 | 558,000 | 558,000 | |||||
Goodwill | 3,013,000 | 3,013,000 | 3,013,000 | |||||
Intangible asset | 1,154,000 | 1,154,000 | 1,154,000 | |||||
Current liabilities | -139,000 | -139,000 | -139,000 | |||||
Other liabilities | -150,000 | -150,000 | -150,000 | |||||
Purchase Price | 4,500,000 | 4,500,000 | 4,500,000 | |||||
Franchise restaurants in Ohio | Forecast | ||||||||
Purchase price allocated | ||||||||
Expected average annual expense | 100,000 | |||||||
Aspen Creek concept | ||||||||
Acquisitions and Divestitures | ||||||||
Number of restaurants sold | 2 | |||||||
Gain on sale of Aspen Creek concept and restaurants | $1,800,000 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 12 Months Ended | |
Dec. 30, 2014 | Dec. 31, 2013 | |
Long-term Debt | ||
Long-term debt | $50,822,000 | $51,233,000 |
Less current maturities | 129,000 | 243,000 |
Long-term debt, excluding current maturities | 50,693,000 | 50,990,000 |
Maturities of long-term debt | ||
2015 | 129,000 | |
2016 | 143,000 | |
2017 | 159,000 | |
2018 | 50,177,000 | |
2019 | 196,000 | |
Thereafter | 18,000 | |
Interest rate swap, entered October 22, 2008 | ||
Maturities of long-term debt | ||
Notional amount of interest rate swap | 25,000,000 | |
Fixed interest rate of derivative (as a percent) | 3.83% | |
Notional amount of hedge obligation | 25,000,000 | |
Interest rate swap, entered January 7, 2009 | ||
Maturities of long-term debt | ||
Notional amount of interest rate swap | 25,000,000 | |
Fixed interest rate of derivative (as a percent) | 2.34% | |
Notional amount of hedge obligation | 25,000,000 | |
Installment loans, due 2014-2020 | ||
Long-term Debt | ||
Long-term debt | 822,000 | 1,233,000 |
Maturities of long-term debt | ||
Weighted-average interest rate (as a percent) | 10.46% | 10.54% |
Revolver | ||
Long-term Debt | ||
Long-term debt | 50,000,000 | 50,000,000 |
Maturities of long-term debt | ||
Weighted-average interest rate (as a percent) | 3.96% | 3.96% |
Revolving credit facility, maximum borrowing capacity | 200,000,000 | |
Revolving credit facility contingent increase in maximum borrowing capacity | 200,000,000 | |
Revolving credit facility maximum borrowing capacity after contingent increase | 400,000,000 | |
Revolving credit facility, amount outstanding | 50,000,000 | |
Revolving credit facility, remaining borrowing capacity | 144,200,000 | |
Letters of credit outstanding | $5,800,000 | |
Revolving credit facility, fixed charge coverage ratio | 2 | |
Revolving credit facility, leverage ratio | 3 | |
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth | 15.00% | |
Revolver | Minimum | ||
Maturities of long-term debt | ||
Percentage of commitment fee on unused credit facility | 0.13% | |
Revolver | Maximum | ||
Maturities of long-term debt | ||
Percentage of commitment fee on unused credit facility | 0.30% | |
Revolver | LIBOR | Minimum | ||
Maturities of long-term debt | ||
Interest rate added to base rate (as a percent) | 0.88% | |
Revolver | LIBOR | Maximum | ||
Maturities of long-term debt | ||
Interest rate added to base rate (as a percent) | 1.88% | |
Revolver | Federal Funds | ||
Maturities of long-term debt | ||
Interest rate added to base rate (as a percent) | 0.50% | |
Revolver | Adjusted Eurodollar Rate | ||
Maturities of long-term debt | ||
Interest rate added to base rate (as a percent) | 1.00% |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Property and Equipment, Net | |||
Property and Equipment, Gross | $996,859,000 | $890,748,000 | |
Accumulated depreciation and amortization | -347,222,000 | -304,536,000 | |
Property, Plant and Equipment, Net | 649,637,000 | 586,212,000 | |
Interest capitalized | 700,000 | 500,000 | 400,000 |
Land and improvements | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 105,055,000 | 100,456,000 | |
Buildings and leasehold improvements | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 519,905,000 | 457,282,000 | |
Equipment and smallwares | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 262,036,000 | 229,999,000 | |
Furniture and fixtures | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 80,637,000 | 70,828,000 | |
Construction in progress | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 20,730,000 | 25,516,000 | |
Liquor licenses | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | $8,496,000 | $6,667,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | $117,197,000 | $113,435,000 | ||
Additions | 3,762,000 | |||
Impairment | -600,000 | -626,000 | 0 | -300,000 |
Balance at the end of the period | 116,571,000 | 116,571,000 | 117,197,000 | 113,435,000 |
Changes in the carrying amount of intangible assets | ||||
Balance at the beginning of the period, net | 7,876,000 | 9,264,000 | ||
Additions | 256,000 | |||
Amortization expense | -1,673,000 | -1,644,000 | ||
Balance at the end of the period, net | 6,203,000 | 6,203,000 | 7,876,000 | 9,264,000 |
Gross carrying amount | 15,400,000 | 15,400,000 | 15,400,000 | |
Accumulated amortization | 9,200,000 | 9,200,000 | 7,500,000 | |
Minimum | ||||
Useful life | ||||
Expected amortization expense for each of the next five years | 800,000 | |||
Maximum | ||||
Useful life | ||||
Expected amortization expense for each of the next five years | $1,500,000 |
Leases_Details
Leases (Details) (USD $) | Dec. 30, 2014 |
In Thousands, unless otherwise specified | |
Schedule of future minimum lease payments required for operating leases that have initial or remaining noncancelable terms in excess of one year | |
2015 | $33,338 |
2016 | 33,094 |
2017 | 33,274 |
2018 | 33,519 |
2019 | 33,698 |
Thereafter | 443,494 |
Total | $610,417 |
Leases_Details_2
Leases (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Rent expense for operating leases | |||
Minimum rent-occupancy | $32,288 | $28,191 | $25,110 |
Contingent rent | 886 | 787 | 687 |
Rent expense, occupancy | 33,174 | 28,978 | 25,797 |
Minimum rent-equipment and other | 3,724 | 3,502 | 3,393 |
Rent expense | $36,898 | $32,480 | $29,190 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Current: | |||
Federal | $31,176 | $28,648 | $29,286 |
State | 7,913 | 6,439 | 7,618 |
Foreign | 381 | ||
Total current | 39,470 | 35,087 | 36,904 |
Deferred: | |||
Federal | -379 | -919 | -1,511 |
State | -101 | -28 | -655 |
Total deferred | -480 | -947 | -2,166 |
Income tax provision | 38,990 | 34,140 | 34,738 |
Reconciliation of the statutory federal income tax rate to the entity's effective tax rate | |||
Tax at statutory federal rate (as a percent) | 35.00% | 35.00% | 35.00% |
State and local tax, net of federal benefit (as a percent) | 3.50% | 3.50% | 3.70% |
FICA tip tax credit (as a percent) | -6.90% | -6.50% | -6.20% |
Work opportunity tax credit (as a percent) | -1.00% | -1.70% | -0.90% |
Incentive stock options (as a percent) | -0.20% | -0.70% | -0.20% |
Nondeductible officer compensation (as a percent) | 0.20% | 0.40% | 1.20% |
Net income attributable to noncontrolling interests (as a percent) | -1.00% | -1.10% | |
Other (as a percent) | 0.40% | 0.20% | |
Total (as a percent) | 30.00% | 28.90% | 32.80% |
Effective income tax rate after deducting net income attributable to noncontrolling interests (as a percent) | 32.00% | ||
Deferred tax assets: | |||
Insurance reserves | 4,577 | 3,876 | |
Other reserves | 715 | 515 | |
Deferred rent | 9,838 | 8,563 | |
Share-based compensation | 5,336 | 5,246 | |
Deferred revenue - gift cards | 5,524 | 3,860 | |
Deferred compensation | 5,564 | 4,200 | |
Other assets and liabilities | 2,972 | 3,311 | |
Total deferred tax asset | 34,526 | 29,571 | |
Deferred tax liabilities: | |||
Property and equipment | -31,682 | -27,585 | |
Goodwill and intangibles | -4,163 | -3,304 | |
Other assets and liabilities | -1,912 | -1,603 | |
Total deferred tax liability | -37,757 | -32,492 | |
Current deferred tax asset | 2,773 | 2,853 | |
Noncurrent deferred tax liability | -6,004 | -5,774 | |
Net deferred tax liability | ($3,231) | ($2,921) |
Income_Taxes_Details_2
Income Taxes (Details 2) (Uncertain tax positions impacting tax rate, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 |
Uncertain tax positions impacting tax rate | ||
Reconciliation of the beginning and ending liability for unrecognized tax benefits | ||
Balance at the beginning of the period | $172 | $182 |
Additions to tax positions related to prior years | 102 | |
Reductions due to statute expiration | -43 | -112 |
Reductions due to exam settlement | -15 | |
Balance at the end of the period | $114 | $172 |
Preferred_Stock_Details
Preferred Stock (Details) | Dec. 30, 2014 | Dec. 31, 2013 |
item | ||
Preferred Stock | ||
Number of preferred stock shares authorized to issue | 1,000,000 | 1,000,000 |
Minimum number of series of preferred stock authorized | 1 | |
Number of shares of preferred stock outstanding | 0 | 0 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | Nov. 26, 2014 | Feb. 16, 2012 | Feb. 17, 2011 | Nov. 25, 2014 |
Business Acquisition [Line Items] | |||||||
Repurchase of common stock authorized by board of directors | $100 | $100 | |||||
Amount paid for repurchase of common stock | $42.70 | $12.80 | $29.40 | ||||
Number of shares repurchased | 1,675,000 | 461,600 | 1,786,855 | ||||
Franchise restaurant jointly owned | |||||||
Business Acquisition [Line Items] | |||||||
Issuance of shares for franchise acquisition (in shares) | 40,699 | ||||||
Ownership percentage by entity | 5.00% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 30, 2014 | Sep. 30, 2014 | Jul. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | Sep. 24, 2013 | Jun. 25, 2013 | Mar. 26, 2013 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Antidilutive securities | |||||||||||
Anti-dilutive securities (in shares) | 16,740 | 23,520 | 292,193 | ||||||||
Earnings per share | |||||||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $18,595 | $18,881 | $23,081 | $26,465 | $17,119 | $17,170 | $19,963 | $26,171 | $87,022 | $80,423 | $71,170 |
Basic EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719,000 | 70,089,000 | 70,026,000 | ||||||||
Basic EPS (in dollars per share) | $0.27 | $0.27 | $0.33 | $0.38 | $0.24 | $0.24 | $0.29 | $0.38 | $1.25 | $1.15 | $1.02 |
Diluted EPS: | |||||||||||
Weighted-average common shares outstanding | 69,719,000 | 70,089,000 | 70,026,000 | ||||||||
Dilutive effect of stock options and nonvested stock (in shares) | 889,000 | 1,273,000 | 1,459,000 | ||||||||
Shares - diluted | 70,608,000 | 71,362,000 | 71,485,000 | ||||||||
Diluted EPS (in dollars per share) | $0.26 | $0.27 | $0.33 | $0.37 | $0.24 | $0.24 | $0.28 | $0.37 | $1.23 | $1.13 | $1 |
Nonvested stock | |||||||||||
Antidilutive securities | |||||||||||
Anti-dilutive securities (in shares) | 16,740 | 23,520 | |||||||||
Stock Options | |||||||||||
Antidilutive securities | |||||||||||
Anti-dilutive securities (in shares) | 292,193 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
item | item | restaurant | |
Commitments and Contingencies | |||
Estimated cost to complete capital project commitments (in dollars) | $153.20 | $65.20 | 65.2 |
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Number of franchises with real estate lease agreements | 5 | ||
Ownership percentage | 5.00% | ||
Amount of liability recorded for guarantees | 0 | ||
Contingently liable amount | $18 | $18.70 | 18.7 |
Number of leases entity contingently liable | 7 | 7 | |
Number of suppliers providing most of the company's beef | 4 | ||
Minimum age specified in age discrimination allegation against entity | 40 years | ||
Irving lease | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Louisville lease | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Everett, Massachusetts | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Ownership percentage | 5.00% | ||
Longmont, Colorado | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Ownership percentage | 5.00% | ||
Montgomeryville, Pennsylvania | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Fargo, North Dakota | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Ownership percentage | 5.00% | ||
Logan, Utah | |||
Real estate lease agreements | |||
Number of lease renewal terms | 3 | ||
Lease renewal term | 5 years | ||
Aspen Creek concept | |||
Real estate lease agreements | |||
Number of restaurants sold | 2 |
Sharebased_Compensation_Detail
Share-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 |
Share-based Compensation | |||
Number of common shares that an RSU holder would receive upon satisfaction of the vesting requirement (in shares) | 1 | ||
Share-based compensation expenses | |||
Share-based compensation expense | $14,883 | $14,740 | $13,193 |
Labor expense | |||
Share-based compensation expenses | |||
Share-based compensation expense | 5,523 | 5,439 | 4,570 |
General and administrative expense | |||
Share-based compensation expenses | |||
Share-based compensation expense | $9,360 | $9,301 | $8,623 |
Sharebased_Compensation_Detail1
Share-based Compensation (Detail 2) (RSUs, USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Share-based compensation | |||
Unrecognized compensation cost of unvested stock awards (in dollars) | $9,600,000 | ||
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards | 10 months 24 days | ||
Intrinsic value of awards vested (in dollars) | 20,400,000 | 21,300,000 | 11,600,000 |
Restricted Stock Units, Shares | |||
Outstanding at the beginning of the period (in shares) | 1,283,862 | ||
Granted (in shares) | 527,965 | ||
Forfeited (in shares) | -67,668 | ||
Vested (in shares) | -766,035 | ||
Outstanding at the end of period (in shares) | 978,124 | 1,283,862 | |
Restricted Stock Units, Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $18.68 | ||
Granted (in dollars per share) | $26.74 | ||
Forfeited (in dollars per share) | $20.09 | ||
Vested (in dollars per share) | $19.20 | ||
Outstanding at the end of the period (in dollars per share) | $22.52 | $18.68 | |
Weighted-Average Remaining Contractual Term (years) | |||
Weighted-Average Remaining Contractual Term | 10 months 17 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $33,041,000 | ||
Minimum | |||
Share-based compensation | |||
Vesting period | 1 year | ||
Maximum | |||
Share-based compensation | |||
Vesting period | 5 years |
Sharebased_Compensation_Detail2
Share-based Compensation (Detail 3) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Stock Options | |||
Shares | |||
Outstanding at the beginning of the period (in shares) | 1,043,438 | ||
Granted (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | -3,362 | ||
Exercised (in shares) | -403,146 | ||
Outstanding at the end of the period (in shares) | 636,930 | 1,043,438 | |
Exercisable at the end of period (in shares) | 636,930 | ||
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $13.77 | ||
Forfeited (in dollars per share) | $15.05 | ||
Exercised (in dollars per share) | $13.09 | ||
Outstanding at the end of the period (in dollars per share) | $14.20 | $13.77 | |
Exercisable at the end of the period (in dollars per share) | $14.20 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding at the end of the period | 1 year 8 months 27 days | ||
Exercisable at the end of the period | 1 year 8 months 27 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $12,474,000 | ||
Exercisable at the end of the period (in dollars) | 12,474,000 | ||
Intrinsic value of options exercised (in dollars) | 6,100,000 | 11,200,000 | 8,700,000 |
Awards vested (in shares) | 0 | 0 | |
Total grant date fair value of options vested (in dollars) | 200,000 | ||
Cash received before tax withholdings from options exercised | 5,300,000 | 15,100,000 | 10,700,000 |
Excess tax benefit realized from tax deductions associated with options exercised | $2,900,000 | $4,900,000 | $3,600,000 |
Fair_Value_Measurement_Detail
Fair Value Measurement (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | Jul. 01, 2014 |
restaurant | |||||
Fair Value Measurement | |||||
Transfer of asset levels within the fair value hierarchy | $0 | $0 | |||
Fair value of financial instruments | |||||
Interest rate swaps | -1,375 | -1,375 | -2,696 | ||
Goodwill impairment losses | 600 | 626 | 0 | 300 | |
Number of underperforming restaurant related to goodwill | 1 | ||||
Proceeds from sale | 1,205 | 23 | 1,128 | ||
Fair value measured on a recurring basis | Level 2 | |||||
Fair value of financial instruments | |||||
Interest rate swaps | -1,375 | -1,375 | -2,696 | ||
Fair value measured on a recurring basis | Level 1 | |||||
Fair value of financial instruments | |||||
Deferred compensation plan - assets | 14,963 | 14,963 | 11,916 | ||
Deferred compensation plan - liabilities | -14,974 | -14,974 | -11,913 | ||
Fair value measured on a nonrecurring basis | Level 2 | |||||
Fair value of financial instruments | |||||
Long-lived assets | 1,203 | ||||
Long-lived asset impairment losses | 15 | 195 | |||
Proceeds from sale | 1,200 | ||||
Fair value measured on a nonrecurring basis | Level 3 | |||||
Fair value of financial instruments | |||||
Goodwill impairment losses | $626 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details 2) (USD $) | Dec. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Carrying amount and Fair value of financial instruments | ||
Installment loans | $822 | $1,233 |
Fair Value | Level 2 | ||
Carrying amount and Fair value of financial instruments | ||
Installment loans | $955 | $1,434 |
Impairment_and_Closure_Costs_D
Impairment and Closure Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
restaurant | restaurant | restaurant | ||
Impairment and Closure Costs | ||||
Impairment charges related to goodwill and/or long-lived assets | $636,000 | $399,000 | $1,624,000 | |
Impairment of goodwill | 600,000 | 626,000 | 0 | 300,000 |
Number of restaurants | 451 | 451 | 420 | |
Goodwill impairment | ||||
Impairment and Closure Costs | ||||
Impairment of goodwill | 600,000 | |||
Number of restaurants | 1 | 1 | ||
Impairment of goodwill and intangible assets | ||||
Impairment and Closure Costs | ||||
Impairment of goodwill and intangible assets | 500,000 | |||
Number of restaurants | 1 | |||
Restaurant closed in 2009 | ||||
Impairment and Closure Costs | ||||
Impairment charges write-down of land, building, equipment and furniture and fixtures | 200,000 | |||
Number of restaurants | 1 | 1 | ||
Restaurants closed in 2012 and 2009 | ||||
Impairment and Closure Costs | ||||
Ongoing closure costs | 200,000 | 200,000 | ||
Restaurant closed in 2012 | ||||
Impairment and Closure Costs | ||||
Impairment charges write-down of land, building, equipment and furniture and fixtures | $900,000 | |||
Number of restaurants | 1 | 1 |
Derivative_and_Hedging_Activit2
Derivative and Hedging Activities (Details) (USD $) | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
Fair value of derivative instruments | |||
Fair value of Derivative Liabilities | $1,375,000 | $2,696,000 | |
Fair value of Derivative Liabilities, Interest rate swaps | 1,375,000 | 2,696,000 | |
Interest rate cash flow hedges | |||
Gain recognized in AOCI, net of tax (effective portion) | 808,000 | 809,000 | 148,000 |
Loss reclassified from AOCI to income (effective portion) | 1,480,000 | 1,474,000 | 1,444,000 |
Interest rate swap, entered October 22, 2008 | |||
Interest Rate Swaps | |||
Notional amount of interest rate swap | 25,000,000 | ||
Notional amount of hedge obligation | 25,000,000 | ||
Fixed interest rate of derivative (as a percent) | 3.83% | ||
Interest rate swap, entered January 7, 2009 | |||
Interest Rate Swaps | |||
Notional amount of interest rate swap | 25,000,000 | ||
Notional amount of hedge obligation | $25,000,000 | ||
Fixed interest rate of derivative (as a percent) | 2.34% |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | 12 Months Ended | |||
Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | Nov. 25, 2014 | |
restaurant | ||||
Related Party Transactions | ||||
Lease renewal term | 5 years | |||
Number of franchise restaurants owned, in whole or part, by certain of entity's officers, directors or 5% shareholders | 451 | 420 | ||
Franchise restaurant jointly owned | ||||
Related Party Transactions | ||||
Ownership percentage by entity | 5.00% | |||
Steven L. Ortiz | The Longview, Texas restaurant | ||||
Related Party Transactions | ||||
Lease term | 15 years | |||
Number of possible lease renewal terms | 3 | |||
Lease renewal term | 5 years | |||
Lease rent payments to related party per month | 20,500 | |||
Total lease rent payments to related party | 200,000 | 200,000 | 200,000 | |
Steven L. Ortiz | The Bossier City, Louisiana restaurant | ||||
Related Party Transactions | ||||
Lease term | 15 years | |||
Lease rent payments to related party per month | 16,600 | |||
Total lease rent payments to related party | 200,000 | 200,000 | 200,000 | |
Ownership percentage by related party | 66.00% | |||
Ownership percentage by entity | 5.00% | |||
Percentage of lease rent escalation during each five year period | 10.00% | |||
Officers, directors and shareholders | ||||
Related Party Transactions | ||||
Number of franchise restaurants owned, in whole or part, by certain of entity's officers, directors or 5% shareholders | 14 | 15 | 15 | |
Fees received from franchise and license restaurants | 2,500,000 | $2,400,000 | $2,300,000 | |
Number of restaurants for which the entity is contingently liable on the lease | 3 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 30, 2014 | Sep. 30, 2014 | Jul. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | Sep. 24, 2013 | Jun. 25, 2013 | Mar. 26, 2013 | Dec. 25, 2012 | Dec. 30, 2014 | Dec. 31, 2013 | Dec. 25, 2012 | |
restaurant | restaurant | restaurant | |||||||||||
Selected quarterly financial data | |||||||||||||
Revenue | $32,000,000 | $404,425,000 | $385,218,000 | $395,363,000 | $397,142,000 | $376,020,000 | $334,770,000 | $352,119,000 | $359,676,000 | $1,582,148,000 | $1,422,585,000 | $1,263,331,000 | |
Total costs and expenses | 377,382,000 | 356,397,000 | 360,962,000 | 356,958,000 | 349,966,000 | 309,074,000 | 322,322,000 | 321,508,000 | 1,451,699,000 | 1,302,870,000 | 1,152,873,000 | ||
Income from operations | 27,043,000 | 28,821,000 | 34,401,000 | 40,184,000 | 26,054,000 | 25,696,000 | 29,797,000 | 38,168,000 | 130,449,000 | 119,715,000 | 110,458,000 | ||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | 18,595,000 | 18,881,000 | 23,081,000 | 26,465,000 | 17,119,000 | 17,170,000 | 19,963,000 | 26,171,000 | 87,022,000 | 80,423,000 | 71,170,000 | ||
Basic EPS (in dollars per share) | $0.27 | $0.27 | $0.33 | $0.38 | $0.24 | $0.24 | $0.29 | $0.38 | $1.25 | $1.15 | $1.02 | ||
Diluted EPS (in dollars per share) | $0.26 | $0.27 | $0.33 | $0.37 | $0.24 | $0.24 | $0.28 | $0.37 | $1.23 | $1.13 | $1 | ||
Cash dividends declared per share (in dollars per share) | $0.15 | $0.15 | $0.15 | $0.15 | $0.12 | $0.12 | $0.12 | $0.12 | $0.60 | $0.48 | $0.46 | ||
Impairment of goodwill | 600,000 | 626,000 | 0 | 300,000 | |||||||||
Impairment of goodwill, net of tax | 400,000 | ||||||||||||
Gain on sale of Aspen Creek concept and restaurants | 1,800,000 | 1,800,000 | |||||||||||
Gain on sale of Aspen Creek concept and restaurants, after tax | $1,200,000 | ||||||||||||
Number of restaurants impaired | 2 | 1 | 1 | ||||||||||
Minimum | |||||||||||||
Selected quarterly financial data | |||||||||||||
Diluted EPS (in dollars per share) | $0.03 | $0.03 | |||||||||||
Maximum | |||||||||||||
Selected quarterly financial data | |||||||||||||
Diluted EPS (in dollars per share) | $0.04 | $0.04 |