Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'DNKN | ' |
Entity Registrant Name | 'DUNKIN' BRANDS GROUP, INC. | ' |
Entity Central Index Key | '0001357204 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 106,673,032 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $209,800 | $252,618 |
Accounts receivable, net of allowance for doubtful accounts of $2,503 and $2,483 as of September 28, 2013 and December 29, 2012, respectively | 46,124 | 32,407 |
Notes and other receivables, net of allowance for doubtful accounts of $854 and $1,204 as of September 28, 2013 and December 29, 2012, respectively | 9,837 | 20,649 |
Assets held for sale | 1,606 | 2,400 |
Deferred income taxes, net | 47,412 | 47,263 |
Restricted assets of advertising funds | 35,021 | 31,849 |
Prepaid income taxes | 3,283 | 10,825 |
Prepaid expenses and other current assets | 22,158 | 21,769 |
Total current assets | 375,241 | 419,780 |
Property and equipment, net of accumulated depreciation of $102,364 and $109,747 as of September 28, 2013 and December 29, 2012, respectively | 178,639 | 181,172 |
Equity method investments | 171,025 | 174,823 |
Goodwill | 891,880 | 891,900 |
Other intangible assets, net | 1,459,235 | 1,479,784 |
Restricted cash | 319 | 367 |
Other assets | 73,619 | 69,687 |
Total assets | 3,149,958 | 3,217,513 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 5,000 | 26,680 |
Capital lease obligations | 403 | 371 |
Accounts payable | 11,955 | 16,256 |
Liabilities of advertising funds | 52,897 | 45,594 |
Deferred income | 22,745 | 24,683 |
Other current liabilities | 177,071 | 239,931 |
Total current liabilities | 270,071 | 353,515 |
Long-term debt, net | 1,823,226 | 1,823,278 |
Capital lease obligations | 7,116 | 7,251 |
Unfavorable operating leases acquired | 17,354 | 19,061 |
Deferred income | 16,840 | 15,720 |
Deferred income taxes, net | 563,571 | 569,126 |
Other long-term liabilities | 65,464 | 79,587 |
Total long-term liabilities | 2,493,571 | 2,514,023 |
Commitments and contingencies (note 12) | ' | ' |
Redeemable noncontrolling interests | 5,113 | 0 |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at September 28, 2013 and December 29, 2012, respectively | ' | ' |
Common stock, $0.001 par value; 475,000,000 shares authorized; 107,065,302 issued and 106,648,002 outstanding at September 28, 2013; and 106,146,984 shares issued and outstanding at December 29, 2012 | 107 | 106 |
Additional paid-in capital | 1,202,808 | 1,251,498 |
Treasury stock, at cost | -17,190 | 0 |
Accumulated deficit | -809,286 | -914,094 |
Accumulated other comprehensive income | 4,764 | 9,141 |
Total stockholders' equity of Dunkin' Brands | 381,203 | 346,651 |
Noncontrolling interests | 0 | 3,324 |
Total stockholders' equity | 381,203 | 349,975 |
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | $3,149,958 | $3,217,513 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $2,503 | $2,483 |
Notes and other receivables, allowance for doubtful accounts | 854 | 1,204 |
Property and equipment, accumulated depreciation | $102,364 | $109,747 |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | ' | ' |
Preferred stock, shares outstanding (in shares) | ' | ' |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 107,065,302 | 106,146,984 |
Common stock, shares outstanding (in shares) | 106,648,002 | 106,146,984 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenues: | ' | ' | ' | ' |
Franchise fees and royalty income | $117,486 | $107,847 | $334,045 | $309,819 |
Rental income | 25,437 | 24,918 | 72,924 | 73,859 |
Sales of ice cream products | 30,429 | 27,118 | 86,818 | 78,283 |
Sales at company-owned restaurants | 6,250 | 5,913 | 18,261 | 16,706 |
Other revenues | 6,715 | 5,923 | 18,615 | 17,811 |
Total revenues | 186,317 | 171,719 | 530,663 | 496,478 |
Operating costs and expenses: | ' | ' | ' | ' |
Occupancy expenses-franchised restaurants | 13,445 | 12,965 | 39,041 | 38,797 |
Cost of ice cream products | 20,899 | 19,211 | 61,187 | 56,000 |
Company-owned restaurant expenses | 6,222 | 6,021 | 17,817 | 16,967 |
General and administrative expenses, net | 57,703 | 55,630 | 174,287 | 186,550 |
Depreciation | 5,591 | 9,011 | 16,961 | 22,533 |
Amortization of other intangible assets | 6,938 | 6,669 | 20,085 | 20,317 |
Impairment charges | 92 | 564 | 447 | 950 |
Total operating costs and expenses | 110,890 | 110,071 | 329,825 | 342,114 |
Net income of equity method investments, excluding impairment | 8,201 | 8,697 | 16,070 | 17,314 |
Impairment charge, net of tax | -873 | 0 | -873 | 0 |
Total net income of equity method investments | 7,328 | 8,697 | 15,197 | 17,314 |
Other operating income (expense) | -518 | 0 | 6,466 | 0 |
Operating income | 82,237 | 70,345 | 222,501 | 171,678 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 105 | 126 | 310 | 383 |
Interest expense | -19,805 | -18,920 | -60,523 | -52,306 |
Loss on debt extinguishment and refinancing transactions | 0 | -3,963 | -5,018 | -3,963 |
Other gains (losses), net | 12 | -265 | -1,191 | -472 |
Total other expense | -19,688 | -23,022 | -66,422 | -56,358 |
Income before income taxes | 62,549 | 47,323 | 156,079 | 115,320 |
Provision for income taxes | 22,505 | 18,022 | 51,664 | 41,886 |
Net income including noncontrolling interests | 40,044 | 29,301 | 104,415 | 73,434 |
Net loss attributable to noncontrolling interests | -177 | -225 | -416 | -539 |
Net income attributable to Dunkin' Brands | $40,221 | $29,526 | $104,831 | $73,973 |
Earnings per share: | ' | ' | ' | ' |
Common-basic | $0.38 | $0.26 | $0.99 | $0.63 |
Common-diluted | $0.37 | $0.26 | $0.97 | $0.62 |
Cash dividends declared per common share | $0.19 | $0.15 | $0.57 | $0.45 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income including noncontrolling interests | $40,044 | $29,301 | $104,415 | $73,434 |
Other comprehensive income (loss), net: | ' | ' | ' | ' |
Effect of foreign currency translation, net of deferred tax expense (benefit) of $(75) and $299 for the three and nine months ended September 28, 2013, respectively | 5,358 | 4,364 | -11,345 | 1,143 |
Unrealized gains (losses) on interest rate swaps, net of deferred tax expense (benefit) of $(1,412) and $4,887 for the three and nine months ended September 28, 2013, respectively | -2,071 | -2,454 | 7,145 | -2,454 |
Unrealized loss on pension plan, net of deferred tax benefit of $93 and $80 for the three and nine months ended September 28, 2013, respectively | -266 | -1,451 | -231 | -1,451 |
Other, net | -30 | -125 | 54 | -1,739 |
Total other comprehensive income (loss) | 2,991 | 334 | -4,377 | -4,501 |
Comprehensive income including noncontrolling interests | 43,035 | 29,635 | 100,038 | 68,933 |
Comprehensive loss attributable to noncontrolling interests | -177 | -225 | -416 | -539 |
Comprehensive income attributable to Dunkin' Brands | $43,212 | $29,860 | $100,454 | $69,472 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 |
Statement of Other Comprehensive Income (Parenthetical) [Abstract] | ' | ' |
Deferred tax expense, foreign currency translation | ($75) | $299 |
Deferred tax expense, unrealized gains on interest rate swaps | -1,412 | 4,887 |
Unrealized loss on pension plan, deferred tax effect | $93 | $80 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Cash flows from operating activities: | ' | ' |
Net income including noncontrolling interests | $104,415 | $73,434 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 37,046 | 42,850 |
Amortization of deferred financing costs and original issue discount | 3,586 | 4,110 |
Loss on debt extinguishment and refinancing transactions | 5,018 | 3,963 |
Impact of unfavorable operating leases acquired | -1,685 | -1,804 |
Deferred income taxes | -10,893 | -12,901 |
Impairment charges | 447 | 950 |
Provision for (recovery of) bad debt | 3,008 | -586 |
Share-based compensation expense | 5,750 | 5,907 |
Net income of equity method investments | -15,197 | -17,314 |
Dividends received from equity method investments | 7,226 | 6,497 |
Gain on sale of joint venture | -6,466 | 0 |
Other, net | -1,201 | -519 |
Change in operating assets and liabilities: | ' | ' |
Accounts, notes, and other receivables, net | -3,162 | 9,401 |
Other current assets | 1 | -247 |
Accounts payable | -517 | -1,442 |
Other current liabilities | -62,137 | -37,796 |
Liabilities of advertising funds, net | 4,847 | -2,222 |
Income taxes payable, net | -5,010 | -13,971 |
Deferred income | -814 | -1,137 |
Other, net | 1,053 | 257 |
Net cash provided by operating activities | 65,315 | 57,430 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -20,930 | -13,379 |
Proceeds from sale of joint venture | 7,200 | 0 |
Other, net | 755 | -925 |
Net cash used in investing activities | -12,975 | -14,304 |
Cash flows from financing activities: | ' | ' |
Repayment of long-term debt | -19,157 | -15,441 |
Payment of deferred financing and other debt-related costs | -6,157 | -5,773 |
Dividends paid on common stock | -60,707 | -54,189 |
Repurchases of common stock | -17,190 | -450,343 |
Proceeds from issuance of long-term debt | 0 | 396,000 |
Exercise of stock options | 6,287 | 1,791 |
Other, net | 1,906 | 3,397 |
Net cash used in financing activities | -95,018 | -124,558 |
Effect of exchange rates on cash and cash equivalents | -140 | 359 |
Decrease in cash and cash equivalents | -42,818 | -81,073 |
Cash and cash equivalents, beginning of period | 252,618 | 246,715 |
Cash and cash equivalents, end of period | 209,800 | 165,642 |
Supplemental cash flow information: | ' | ' |
Cash paid for income taxes | 68,504 | 70,106 |
Cash paid for interest | 58,997 | 47,493 |
Noncash investing activities: | ' | ' |
Property and equipment included in accounts payable and other current liabilities | 1,095 | 1,424 |
Purchase of leaseholds in exchange for capital lease obligations | $173 | $2,703 |
Description_of_Business_and_Or
Description of Business and Organization | 9 Months Ended |
Sep. 28, 2013 | |
Text Block [Abstract] | ' |
Description of Business and Organization | ' |
Description of Business and Organization | |
Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s leading franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We develop, franchise, and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, own and operate individual locations. Through our Dunkin’ Donuts brand, we develop and franchise restaurants featuring coffee, donuts, bagels, and related products. Through our Baskin-Robbins brand, we develop and franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international markets. | |
Throughout these consolidated financial statements, “Dunkin’ Brands,” “the Company,” “we,” “us,” “our,” and “management” refer to DBGI and its consolidated subsidiaries taken as a whole. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | ' | ||||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||||
(a) Unaudited Consolidated Financial Statements | |||||||||||||||||||
The consolidated balance sheet as of September 28, 2013, the consolidated statements of operations and comprehensive income for the three and nine months ended September 28, 2013 and September 29, 2012, and the consolidated statements of cash flows for the nine months ended September 28, 2013 and September 29, 2012, are unaudited. | |||||||||||||||||||
The accompanying consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, included in the Company’s Annual Report on Form 10-K. | |||||||||||||||||||
(b) Fiscal Year | |||||||||||||||||||
The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within our three- and nine-month periods ended September 28, 2013 and September 29, 2012 reflect the results of operations for the 13-week and 39-week periods ended on those dates. Operating results for the three- and nine-month periods ended September 28, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 28, 2013. | |||||||||||||||||||
(c) Accounting Estimates | |||||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the periods then ended. | |||||||||||||||||||
(d) Fair Value of Financial Instruments | |||||||||||||||||||
The carrying amounts of accounts receivable, notes and other receivables, assets and liabilities related to the advertising funds, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparties on a quarterly basis, and adjust the carrying values as necessary. We believe the carrying value of long-term receivables of $4.7 million and $5.8 million as of September 28, 2013 and December 29, 2012, respectively, approximates fair value. | |||||||||||||||||||
Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of September 28, 2013 and December 29, 2012 are summarized as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Quoted prices | Significant | Total | Quoted prices | Significant | Total | ||||||||||||||
in active | other | in active | other | ||||||||||||||||
markets for | observable | markets for | observable | ||||||||||||||||
identical assets | inputs | identical assets | inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||||
Mutual funds | $ | 2,163 | — | 2,163 | 2,505 | — | 2,505 | ||||||||||||
Interest rate swaps | — | 9,223 | 9,223 | — | — | — | |||||||||||||
Total assets | $ | 2,163 | 9,223 | 11,386 | 2,505 | — | 2,505 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 6,752 | 6,752 | — | 7,379 | 7,379 | ||||||||||||
Interest rate swaps | — | — | — | — | 2,809 | 2,809 | |||||||||||||
Total liabilities | $ | — | 6,752 | 6,752 | — | 10,188 | 10,188 | ||||||||||||
The mutual funds and deferred compensation liabilities primarily relate to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds mutual funds, as well as money market funds, to partially offset the Company’s liabilities under the NQDC Plan as well as other benefit plans. The changes in the fair value of the mutual funds are derived using quoted prices in active markets for the specific funds. As such, the mutual funds are classified within Level 1, as defined under U.S. GAAP. | |||||||||||||||||||
The Company uses readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives includes consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input, as defined under U.S. GAAP. As the magnitude of the CVA is not a significant component of the fair value of the interest rate swaps as of September 28, 2013, it is not considered a significant input and the derivatives are classified as Level 2. | |||||||||||||||||||
The carrying value and estimated fair value of long-term debt as of September 28, 2013 and December 29, 2012 were as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||
Term loans | $ | 1,828,226 | 1,836,621 | 1,849,958 | 1,878,980 | ||||||||||||||
The estimated fair value of our term loans is estimated based on current bid prices for our term loans. Judgment is required to develop these estimates. As such, our term loans are classified within Level 2, as defined under U.S. GAAP. | |||||||||||||||||||
(e) Derivative Instruments and Hedging Activities | |||||||||||||||||||
The Company uses derivative instruments to hedge interest rate risks. These derivative contracts are entered into with financial institutions. The Company does not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. | |||||||||||||||||||
We record all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the consolidated statements of operations immediately. Cash flows associated with the Company's interest rate swap agreements are classified as cash flows from operating activities in the consolidated statements of cash flows which is consistent with the classification of cash flows of the underlying hedged item. See note 6 for a discussion of the Company's use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information. | |||||||||||||||||||
(f) Concentration of Credit Risk | |||||||||||||||||||
The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. At September 28, 2013, one master licensee and majority owned subsidiaries of the master licensee, accounted for approximately 27% of total accounts and notes receivable, which was primarily due to the timing of orders and shipments of ice cream to the master licensee. At December 29, 2012, no individual franchisee or master licensee accounted for more than 10% of accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for the three and nine months ended September 28, 2013 or the three or nine months ended September 29, 2012. | |||||||||||||||||||
(g) Recent Accounting Pronouncements | |||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires presentation of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This guidance is effective for the Company in fiscal year 2014 with early adoption permitted. The Company has not adopted this guidance as of September 28, 2013, and does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. | |||||||||||||||||||
In February 2013, the FASB issued new guidance which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
In December 2011, the FASB issued guidance which enhanced existing disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. In January 2013, the FASB issued new guidance to clarify that the guidance issued in December 2011 on offsetting financial assets and financial liabilities was limited to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria or subject to a master netting arrangement or similar agreement. It further clarifies that ordinary trade receivables and other receivables are not in the scope of the existing guidance. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
(h) Subsequent Events | |||||||||||||||||||
Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Franchise_Fees_and_Royalty_Inc
Franchise Fees and Royalty Income | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Disclosure Franchise Fees And Royalty Income [Abstract] | ' | ||||||||||||
Franchise Fees and Royalty Income | ' | ||||||||||||
Franchise Fees and Royalty Income | |||||||||||||
Franchise fees and royalty income consisted of the following (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Royalty income | $ | 106,327 | 98,858 | 305,803 | 286,487 | ||||||||
Initial franchise fees, including renewal income | 11,159 | 8,989 | 28,242 | 23,332 | |||||||||
Total franchise fees and royalty income | $ | 117,486 | 107,847 | 334,045 | 309,819 | ||||||||
The changes in franchised and company-owned points of distribution were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Systemwide Points of Distribution: | |||||||||||||
Franchised points of distribution—beginning of period | 17,688 | 16,980 | 17,424 | 16,763 | |||||||||
Franchised points of distribution—opened | 360 | 310 | 904 | 879 | |||||||||
Franchised points of distribution—closed | (140 | ) | (124 | ) | (420 | ) | (472 | ) | |||||
Net transfers to company-owned points of distribution | — | — | — | (4 | ) | ||||||||
Franchised points of distribution in operation—end of period | 17,908 | 17,166 | 17,908 | 17,166 | |||||||||
Company-owned points of distribution—end of period | 32 | 37 | 32 | 37 | |||||||||
Total systemwide points of distribution—end of period | 17,940 | 17,203 | 17,940 | 17,203 | |||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
The change in the gross carrying amount of goodwill from December 29, 2012 to September 28, 2013 is due to the impact of foreign currency fluctuations. | |||||||||||||
Other intangible assets at September 28, 2013 consisted of the following (in thousands): | |||||||||||||
Weighted | Gross | Accumulated | Net carrying | ||||||||||
average | carrying | amortization | amount | ||||||||||
amortization | amount | ||||||||||||
period | |||||||||||||
(years) | |||||||||||||
Definite-lived intangibles: | |||||||||||||
Franchise rights | 20 | $ | 383,770 | (154,829 | ) | 228,941 | |||||||
Favorable operating leases acquired | 16 | 74,549 | (36,734 | ) | 37,815 | ||||||||
License rights | 10 | 6,230 | (4,721 | ) | 1,509 | ||||||||
Indefinite-lived intangible: | |||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||
$ | 1,655,519 | (196,284 | ) | 1,459,235 | |||||||||
Other intangible assets at December 29, 2012 consisted of the following (in thousands): | |||||||||||||
Weighted | Gross | Accumulated | Net carrying | ||||||||||
average | carrying | amortization | amount | ||||||||||
amortization | amount | ||||||||||||
period | |||||||||||||
(years) | |||||||||||||
Definite-lived intangibles: | |||||||||||||
Franchise rights | 20 | $ | 384,065 | (139,677 | ) | 244,388 | |||||||
Favorable operating leases acquired | 15 | 77,653 | (35,207 | ) | 42,446 | ||||||||
License rights | 10 | 6,230 | (4,250 | ) | 1,980 | ||||||||
Indefinite-lived intangible: | |||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||
$ | 1,658,918 | (179,134 | ) | 1,479,784 | |||||||||
The changes in the gross carrying amounts of other intangible assets from December 29, 2012 to September 28, 2013 are primarily due to the impairment of favorable operating leases acquired resulting from lease terminations and the impact of foreign currency fluctuations. Impairment of favorable operating leases acquired totaled $77 thousand and $350 thousand for the three months ended September 28, 2013 and September 29, 2012, respectively, and $358 thousand and $667 thousand for the nine months ended September 28, 2013 and September 29, 2012, respectively, and is included within long-lived asset impairment charges in the consolidated statements of operations. Total estimated amortization expense for fiscal years 2013 | |||||||||||||
through 2017 is presented below (in thousands). The amount reflected below for fiscal year 2013 includes year-to-date amortization. | |||||||||||||
Fiscal year: | |||||||||||||
2013 | $ | 26,904 | |||||||||||
2014 | 25,447 | ||||||||||||
2015 | 25,120 | ||||||||||||
2016 | 22,188 | ||||||||||||
2017 | 21,406 | ||||||||||||
The impact of our unfavorable leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Increase in rental income | $ | 246 | 286 | 752 | 814 | ||||||||
Decrease in rental expense | 367 | 302 | 933 | 990 | |||||||||
Total increase in operating income | $ | 613 | 588 | 1,685 | 1,804 | ||||||||
Debt
Debt | 9 Months Ended |
Sep. 28, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
In February 2013, Dunkin’ Brands, Inc. (“DBI”), a subsidiary of DBGI, amended its senior credit facility, resulting in a reduction of the interest rates and an extension of the maturity dates for both the term loans and the revolving credit facility. | |
Subsequent to the amendment, the term loans bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, (c) the LIBOR rate plus 1.0%, and (d) 2.0% or (2) a LIBOR rate provided that LIBOR shall not be lower than 1.0%. The applicable margin under the term loan facility is 1.75% for loans based upon the base rate and 2.75% for loans based upon the LIBOR rate. The amendment extended the maturity of the term loans to February 2020. The effective interest rate for term loans, including the amortization of original issue discount and deferred financing costs, was 4.0% at September 28, 2013. | |
Subsequent to the amendment, borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, and (c) the LIBOR rate plus 1.0%, or (2) a LIBOR rate. The applicable margin under the revolving credit facility is 1.5% for loans based upon the base rate and 2.5% for loans based upon the LIBOR rate. In addition, we are required to pay a 0.5% commitment fee per annum on the unused portion of the revolver and a fee for letter of credit amounts outstanding of 2.5%. The amendment extended the maturity of the revolving credit facility to February 2018. | |
In connection with the amendment, certain lenders, holding $214.3 million of term loans, exited the term loan lending syndicate. The principal of the exiting lenders was replaced with additional loans from both existing and new lenders. As a result, during the first quarter of 2013, the Company recorded a loss on debt extinguishment and refinancing transactions of $5.0 million, including $3.9 million related to the write-off of original issuance discount and deferred financing costs and $1.1 million of fees paid to third parties. The amended term loans were issued with an original issue discount of 0.25%, or $4.6 million, which was recorded as a reduction to long-term debt. Total debt issuance costs incurred and capitalized in connection with the amendment were $375 thousand. | |
Repayments are required to be made under the term loans equal to approximately $19.0 million per calendar year, payable in quarterly installments through December 2019, with the remaining principal balance due in February 2020. Additionally, following the end of each fiscal year, the Company is required to prepay an amount equal to 25% of excess cash flow (as defined in the senior credit facility) for such fiscal year. If DBI’s leverage ratio, which is a measure of DBI’s outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the senior credit facility), is no greater than 4.75x, no excess cash flow payments are required. If DBI’s leverage ratio is greater than 5.50x, the Company is required to prepay an amount equal to 50% of excess cash flow. During the nine months ended September 28, 2013, the Company made total principal payments of $19.2 million. Based on all payments made, including the required excess cash flow payment in the first quarter of 2013, no additional principal payments are required in the next twelve months, though the Company may elect to make voluntary payments. The Company has reflected a $5.0 million voluntary payment, which was paid during the first week of the fourth quarter of 2013, within the current portion of long-term debt as of September 28, 2013 on the consolidated balance sheets. Other events and transactions, such as certain asset sales and incurrence of debt, may trigger additional mandatory prepayments. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Transactions | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Derivative Instruments and Hedging Transactions | ' | |||||||||||||
Derivative Instruments and Hedging Transactions | ||||||||||||||
The Company is exposed to global market risks, including the effect of changes in interest rates, and may use derivative instruments to mitigate the impact of these changes. The Company does not use derivatives with a level of complexity or with a risk higher than the exposures to be hedged and does not hold or issue derivatives for trading purposes. The Company’s hedging instruments consist solely of interest rate swaps at September 28, 2013. The Company’s risk management objective and strategy with respect to the interest rate swaps is to limit the Company’s exposure to increased interest rates on its variable rate debt by reducing the potential variability in cash flow requirements relating to interest payments on a portion of its outstanding debt. The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. | ||||||||||||||
In September 2012, the Company entered into variable-to-fixed interest rate swap agreements with three counterparties to hedge the risk of increases in cash flows (interest payments) attributable to increases in three-month LIBOR above 1.0%, the designated benchmark interest rate being hedged, through November 2017. The notional value of the swaps totals $900.0 million, and the Company is required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.37%, resulting in a total interest rate of approximately 4.12% on the hedged amount when considering the applicable margin in effect at September 28, 2013. In exchange, the Company receives interest on the notional amount at a variable rate based on a three-month LIBOR spot rate, subject to a 1.0% floor. Interest is settled quarterly on a net basis with each counterparty. The swaps have been designated as hedging instruments and are classified as cash flow hedges. They are recognized on the Company’s consolidated balance sheets at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (loss) and/or current earnings. | ||||||||||||||
The fair values of derivatives instruments consisted of the following (in thousands): | ||||||||||||||
September 28, | December 29, | Consolidated Balance Sheet Classification | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps - asset | $ | 9,223 | — | Other assets | ||||||||||
Total fair values of derivative instruments - asset | $ | 9,223 | — | |||||||||||
Interest rate swaps - liability | $ | — | 2,809 | Other long-term liabilities | ||||||||||
Total fair values of derivative instruments - liability | $ | — | 2,809 | |||||||||||
The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for the three months ended September 28, 2013: | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | (4,328 | ) | (845 | ) | Interest expense | $ | (3,483 | ) | |||||
Income tax effect | 1,755 | 343 | Provision for income taxes | 1,412 | ||||||||||
Net of income taxes | $ | (2,573 | ) | (502 | ) | $ | (2,071 | ) | ||||||
The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for the nine months ended September 28, 2013: | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | 9,495 | (2,537 | ) | Interest expense | $ | 12,032 | |||||||
Income tax effect | (3,847 | ) | 1,040 | Provision for income taxes | (4,887 | ) | ||||||||
Net of income taxes | $ | 5,648 | (1,497 | ) | $ | 7,145 | ||||||||
The Company recorded $19 thousand of interest expense related to the swaps which is included in interest expense in the consolidated statements of operations for the three and nine months ended September 29, 2012. | ||||||||||||||
There was no ineffectiveness of the interest rate swaps during the three and nine months ended September 28, 2013, and therefore, ineffectiveness had no impact on the consolidated statements of operations. As of September 28, 2013 and December 29, 2012, $864 thousand of interest expense related to interest rate swaps is accrued in other current liabilities in the consolidated balance sheets. During the next twelve months, the Company estimates that $3.4 million will be reclassified from accumulated other comprehensive income as an increase to interest expense based on current projections of LIBOR. | ||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. To mitigate counterparty credit risk, the Company only enters into contracts with major financial institutions based upon their credit ratings and other factors, and continually assesses the creditworthiness of its counterparties. At September 28, 2013, all of the counterparties to the interest rate swaps had investment grade ratings. To date, all counterparties have performed in accordance with their contractual obligations. | ||||||||||||||
The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. As of September 28, 2013, the Company has not posted any collateral related to these agreements. The Company holds one derivative instrument with each of its derivative counterparties, each of which is settled net with the respective counterparties in accordance with the swap agreements. There is no offsetting of these financial instruments on the consolidated balance sheets. As of September 28, 2013, the termination value of derivatives is a net asset position of $8.6 million, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements. |
Other_Current_Liabilities
Other Current Liabilities | 9 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Other Current Liabilities | ' | ||||||
Other Current Liabilities | |||||||
Other current liabilities consisted of the following (in thousands): | |||||||
September 28, | December 29, | ||||||
2013 | 2012 | ||||||
Gift card/certificate liability | $ | 71,601 | 145,981 | ||||
Gift card breakage liability | 16,835 | — | |||||
Accrued salary and benefits | 22,427 | 31,136 | |||||
Accrued legal liabilities (see note 12(d)) | 27,267 | 27,305 | |||||
Accrued interest | 10,748 | 13,564 | |||||
Accrued professional costs | 2,737 | 2,996 | |||||
Other | 25,456 | 18,949 | |||||
Total other current liabilities | $ | 177,071 | 239,931 | ||||
The decrease in the gift card/certificate liability is driven primarily by the seasonality of our gift card program. Additionally, during the second quarter of fiscal year 2013, the Company determined that sufficient historical redemption patterns existed to revise breakage estimates related to unredeemed Dunkin’ Donuts gift cards. Based on historical redemption rates, breakage is estimated and recognized over time in proportion to actual gift card redemptions. The Company recognizes breakage as income only up to the amount of gift card program costs. Any incremental breakage is committed to fund future initiatives that will benefit the gift card program, and is recorded as gift card breakage liability within other current liabilities in the consolidated balance sheets. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Segment Information | ' | ||||||||||||
Segment Information | |||||||||||||
The Company is strategically aligned into two global brands, Dunkin’ Donuts and Baskin-Robbins, which are further segregated between U.S. operations and international operations. As such, the Company has determined that it has four operating segments, which are its reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International primarily derive their revenues through royalty income, franchise fees, and rental income. Dunkin’ Donuts U.S. also derives revenue through retail sales at company-owned restaurants. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues from the sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization, long-lived asset impairment charges, loss on debt extinguishment and refinancing transactions, other gains and losses, and unallocated corporate charges, referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements. | |||||||||||||
Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenue earned through arrangements with third parties in which our brand names are used and revenue generated from online training programs for franchisees that are not allocated to a specific segment. Revenues by segment were as follows (in thousands): | |||||||||||||
Revenues | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts U.S. | $ | 134,254 | 123,622 | 382,560 | 357,282 | ||||||||
Dunkin’ Donuts International | 4,174 | 3,671 | 12,728 | 11,489 | |||||||||
Baskin-Robbins U.S. | 11,899 | 11,667 | 34,000 | 34,259 | |||||||||
Baskin-Robbins International | 32,759 | 29,657 | 93,104 | 84,004 | |||||||||
Total reportable segment revenues | 183,086 | 168,617 | 522,392 | 487,034 | |||||||||
Other | 3,231 | 3,102 | 8,271 | 9,444 | |||||||||
Total revenues | $ | 186,317 | 171,719 | 530,663 | 496,478 | ||||||||
Expenses included in “Corporate and other” in the segment profit (loss) table below include corporate overhead costs, such as payroll and related benefit costs and professional services. Segment profit (loss) by segment was as follows (in thousands): | |||||||||||||
Segment profit (loss) | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts U.S. | $ | 100,278 | 91,122 | 274,188 | 260,981 | ||||||||
Dunkin’ Donuts International | (1,052 | ) | 2,402 | 3,093 | 7,496 | ||||||||
Baskin-Robbins U.S. | 8,327 | 8,069 | 22,048 | 22,386 | |||||||||
Baskin-Robbins International | 16,795 | 16,047 | 45,548 | 35,171 | |||||||||
Total reportable segment profit | 124,348 | 117,640 | 344,877 | 326,034 | |||||||||
Corporate and other | (29,490 | ) | (31,051 | ) | (84,883 | ) | (110,556 | ) | |||||
Interest expense, net | (19,700 | ) | (18,794 | ) | (60,213 | ) | (51,923 | ) | |||||
Depreciation and amortization | (12,529 | ) | (15,680 | ) | (37,046 | ) | (42,850 | ) | |||||
Long-lived asset impairment charges | (92 | ) | (564 | ) | (447 | ) | (950 | ) | |||||
Loss on debt extinguishment and refinancing transactions | — | (3,963 | ) | (5,018 | ) | (3,963 | ) | ||||||
Other gains (losses), net | 12 | (265 | ) | (1,191 | ) | (472 | ) | ||||||
Income before income taxes | $ | 62,549 | 47,323 | 156,079 | 115,320 | ||||||||
Net income of equity method investments is included in segment profit (loss) for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Income included in “Other” in the segment profit table below represents the reduction of depreciation and amortization expense reported by BR Korea Co., Ltd. (“BR Korea”) as the Company recorded an impairment charge in fiscal year 2011 related to the underlying long-lived assets of BR Korea. Net income of equity method investments by reportable segment was as follows (in thousands): | |||||||||||||
Net income (loss) of equity method investments | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts International | $ | (431 | ) | 414 | (177 | ) | 1,797 | ||||||
Baskin-Robbins International | 7,467 | 7,504 | 14,131 | 12,848 | |||||||||
Total reportable segments | 7,036 | 7,918 | 13,954 | 14,645 | |||||||||
Other | 292 | 779 | 1,243 | 2,669 | |||||||||
Total net income of equity method investments | $ | 7,328 | 8,697 | 15,197 | 17,314 | ||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
Stockholders’ Equity and Redeemable Noncontrolling Interests | ||||||||||||||||
The changes in total stockholders' equity and redeemable noncontrolling interests were as follows (in thousands): | ||||||||||||||||
Stockholders' equity | Redeemable noncontrolling interests | |||||||||||||||
Total stockholders’ equity of Dunkin’ Brands | Noncontrolling interests | Total stockholders’ equity | ||||||||||||||
Balance at December 29, 2012 | $ | 346,651 | 3,324 | 349,975 | — | |||||||||||
Net income attributable to Dunkin' Brands | 104,831 | — | 104,831 | — | ||||||||||||
Net loss attributable to noncontrolling interests | — | (239 | ) | (239 | ) | (177 | ) | |||||||||
Other comprehensive loss | (4,377 | ) | — | (4,377 | ) | — | ||||||||||
Dividends paid on common stock | (60,707 | ) | — | (60,707 | ) | — | ||||||||||
Exercise of stock options | 6,287 | — | 6,287 | — | ||||||||||||
Repurchases of common stock | (17,190 | ) | — | (17,190 | ) | — | ||||||||||
Share-based compensation expense | 5,750 | — | 5,750 | — | ||||||||||||
Reclassification to redeemable noncontrolling interests | — | (3,085 | ) | (3,085 | ) | 3,085 | ||||||||||
Contributions from noncontrolling interests | — | — | — | 2,205 | ||||||||||||
Other, net | (42 | ) | — | (42 | ) | — | ||||||||||
Balance at September 28, 2013 | $ | 381,203 | — | 381,203 | 5,113 | |||||||||||
(a) Redeemable Noncontrolling Interests | ||||||||||||||||
During the nine months ended September 28, 2013, the Company amended the partnership agreement with the noncontrolling owners to provide the noncontrolling owners the option in early 2017 to sell their entire interest to the Company. As a result of the amendment, the partnership agreement now contains a redemption feature that is not currently redeemable, but it is probable to become redeemable in the future. As such, the Company reclassified the noncontrolling interests during the nine months ended September 28, 2013 to temporary equity (between liabilities and stockholders’ equity). As of September 28, 2013, the consolidated balance sheets included $4.0 million of cash and cash equivalents and $5.9 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership. | ||||||||||||||||
(b) Treasury Stock | ||||||||||||||||
During the nine months ended September 28, 2013, the Company repurchased a total of 417,300 shares of common stock at a weighted average price per share of $41.18 from existing stockholders. The Company accounts for treasury stock under the cost method, and as such recorded an increase in common treasury stock of $17.2 million during the nine months ended September 28, 2013, based on the fair market value of the shares on the date of repurchase and direct costs incurred. | ||||||||||||||||
(c) Equity Incentive Plans | ||||||||||||||||
The Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan (the “2011 Plan”) was adopted in July 2011, and is the only plan under which the Company currently grants awards. A maximum of 7,000,000 shares of common stock may be delivered in satisfaction of awards under the 2011 Plan. | ||||||||||||||||
During the nine months ended September 28, 2013, the Company granted options to purchase 1,177,999 shares of common stock and 94,495 restricted stock units to employees and directors under the 2011 Plan. The stock options vest in equal annual amounts over a four-year period subsequent to the grant date, and have a maximum contractual term of ten years. The stock options were granted at a price of $37.26 per share and have a grant-date fair value of $9.92 per share. The restricted stock units generally vest in equal annual amounts over a one-year or three-year period subsequent to the grant date. | ||||||||||||||||
Total compensation expense related to all share-based awards was $2.1 million and $3.1 million for the three months ended September 28, 2013 and September 29, 2012, respectively, and $5.8 million and $5.9 million for the nine months ended September 28, 2013 and September 29, 2012, respectively, and is included in general and administrative expenses, net in the consolidated statements of operations. | ||||||||||||||||
(d) Accumulated Other Comprehensive Income | ||||||||||||||||
The changes in the components of accumulated other comprehensive income were as follows (in thousands): | ||||||||||||||||
Effect of foreign | Unrealized losses on interest rate swaps | Unrealized loss on pension plan | Other | Accumulated | ||||||||||||
currency | other | |||||||||||||||
translation | comprehensive | |||||||||||||||
income | ||||||||||||||||
Balance at December 29, 2012 | $ | 14,914 | (1,655 | ) | (2,486 | ) | (1,632 | ) | 9,141 | |||||||
Other comprehensive income (loss)(1) | (11,345 | ) | 7,145 | (231 | ) | 54 | (4,377 | ) | ||||||||
Balance at September 28, 2013 | $ | 3,569 | 5,490 | (2,717 | ) | (1,578 | ) | 4,764 | ||||||||
(1) | The Company reclassified $1.5 million of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to the interest rate swaps for the nine months ended September 28, 2013 (see note 6). Additionally, the Company reclassified $57 thousand of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to The Baskin-Robbins Employees’ Pension Plan for the nine months ended September 28, 2013, of which $76 thousand of losses are included in general and administrative expenses, net, and $19 thousand of a tax benefit is included in provision for income taxes. | |||||||||||||||
(e) Dividends | ||||||||||||||||
The Company paid quarterly dividends of $0.19 per share of common stock on February 20, 2013, June 6, 2013, and September 4, 2013 totaling approximately $20.2 million, $20.3 million, and $20.3 million, respectively. On October 24, 2013, we announced that our board of directors approved the next quarterly dividend of $0.19 per share of common stock payable November 26, 2013 to shareholders of record as of the close of business on November 18, 2013. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per Share | ' | ||||||||||||
Earnings per Share | |||||||||||||
The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Net income attributable to Dunkin’ Brands—basic and diluted | $ | 40,221 | 29,526 | 104,831 | 73,973 | ||||||||
Allocation of net income to common stockholders: | |||||||||||||
Common—basic(1) | 40,221 | 29,508 | 104,831 | 73,842 | |||||||||
Common—diluted(1) | 40,221 | 29,509 | 104,831 | 73,863 | |||||||||
Weighted average number of common shares: | |||||||||||||
Common—basic | 106,531,827 | 112,720,961 | 106,421,114 | 117,499,678 | |||||||||
Common—diluted | 108,164,925 | 115,075,000 | 108,178,632 | 119,459,154 | |||||||||
Earnings per common share: | |||||||||||||
Common—basic | $ | 0.38 | 0.26 | 0.99 | 0.63 | ||||||||
Common—diluted | 0.37 | 0.26 | 0.97 | 0.62 | |||||||||
(1) | Net income allocated to common shareholders for the three months ended September 29, 2012 excludes $18 thousand and $17 thousand for basic and diluted earnings per share, respectively, and $131 thousand and $110 thousand for basic and diluted earnings per share, respectively, for the nine months ended September 29, 2012, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for the three and nine months ended September 28, 2013, as all restricted shares were fully vested as of September 28, 2013. | ||||||||||||
The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,633,098 and 2,354,039 restricted shares and stock options for the three months ended September 28, 2013 and September 29, 2012, respectively, and includes the dilutive effect of 1,757,518 and 1,959,476 restricted shares and stock options for the nine months ended September 28, 2013 and September 29, 2012, respectively, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all performance-based restricted stock and stock options outstanding for which the performance criteria were not yet met as of the fiscal period end. As of September 28, 2013, there were no common restricted stock awards or stock options that were performance-based and for which the performance criteria were not yet met. As of September 29, 2012, there were approximately 4,000 common restricted stock awards that were performance-based and for which the performance criteria was not yet met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes 1,181,338 and 1,046,753 stock options for the three months ended September 28, 2013 and September 29, 2012, respectively, and 1,441,640 and 728,719 stock options for the nine months ended September 28, 2013 and September 29, 2012, respectively, as they would be antidilutive. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Income tax expense and the effective tax rate were $22.5 million and 36.0%, respectively, for the three months ended September 28, 2013, and $18.0 million and 38.1%, respectively, for the three months ended September 29, 2012. Income tax expense and the effective tax rate were $51.7 million and 33.1%, respectively, for the nine months ended September 28, 2013, and $41.9 million and 36.3%, respectively, for the nine months ended September 29, 2012. | |
The effective rate may fluctuate from quarter to quarter for various reasons, including discrete items, such as the settlement or resolution of specific federal and state tax issues. During the three months ended September 28, 2013, the Company recorded a net tax benefit of $1.1 million primarily related to closing costs of our Canadian ice cream manufacturing plant. During the nine months ended September 28, 2013, the Company recorded a net tax benefit of $6.2 million primarily related to the reversal of reserves of $8.4 million for uncertain tax positions for which settlement with the taxing authorities was reached, as well as the benefit related to closing costs of our Canadian ice cream manufacturing plant, offset by tax expense of $2.9 million primarily due to an increase in our overall state tax rate resulting from a shift in estimated apportionment of income within state jurisdictions. The Company recorded a net tax benefit of $2.4 million during the nine months ended September 29, 2012 primarily related to the reversal of reserves for uncertain tax positions for which settlement with the taxing authorities was reached. | |
Tax authorities periodically audit the Company. We record reserves for identified exposures and evaluate these issues on a quarterly basis to adjust for events, such as court rulings or audit settlements, which may impact our ultimate payment for such exposures. During the nine months ended September 28, 2013, the Company made cash payments of approximately $5.2 million representing tax, penalty, and interest due on settlements with taxing authorities. These amounts were fully accrued as of December 29, 2012 and did not impact the effective rate. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
(a) Lease Commitments | |
The Company is party to various leases for property, including land and buildings, leased automobiles, and office equipment under noncancelable operating and capital lease arrangements. | |
(b) Guarantees | |
Financial Guarantees | |
The Company has established agreements with certain financial institutions whereby the Company’s franchisees can obtain financing with terms of approximately 3 to 10 years for various business purposes. Substantially all loan proceeds are used by the franchisees to finance store improvements, new store development, new central production locations, equipment purchases, related business acquisition costs, working capital, and other costs. In limited instances, the Company guarantees a portion of the payments and commitments of the franchisees, which is collateralized by the store equipment owned by the franchisee. Under the terms of the agreements, in the event that all outstanding borrowings come due simultaneously, the Company would be contingently liable for $4.0 million and $4.7 million at September 28, 2013 and December 29, 2012, respectively. At September 28, 2013 and December 29, 2012, there were no amounts under such guarantees that were due. The fair value of the guarantee liability and corresponding asset recorded on the consolidated balance sheets was $355 thousand and $374 thousand, respectively, at September 28, 2013 and $601 thousand and $572 thousand, respectively, at December 29, 2012. The Company assesses the risk of performing under these guarantees for each franchisee relationship on a quarterly basis. As of September 28, 2013 and December 29, 2012, the Company had recorded reserves for such guarantees of $49 thousand and $389 thousand, respectively. | |
Supply Chain Guarantees | |
In 2012, the Company entered into a third-party guarantee with a distribution facility of franchisee products that guarantees franchisees would sell a certain volume of cooler beverages each year over a 4-year period. During the second quarter of fiscal year 2013, the Company determined that the franchisees will not achieve the required sales volume, and therefore, the Company accrued the maximum guarantee under the agreement of $7.5 million, which is included in other current liabilities in the consolidated balance sheets and general and administrative expenses, net in the consolidated statements of operations. No additional guarantee payments will be required under the agreement. | |
The Company has also entered into a third-party guarantee with this distribution facility that guarantees franchisees will purchase a certain volume of product over a 10-year period. As product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. As of September 28, 2013 and December 29, 2012, the Company was contingently liable for $6.0 million and $6.8 million, respectively, under this guarantee. Additionally, the Company has various supply chain contracts that generally provide for purchase commitments or exclusivity, the majority of which result in the Company being contingently liable upon early termination of the agreement or engaging with another supplier. As of September 28, 2013 and December 29, 2012, the Company was contingently liable under such supply chain agreements for approximately $54.4 million and $57.5 million, respectively. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we have not recorded any liabilities related to these commitments, except for the liability recorded in connection with the cooler beverage commitment discussed above. | |
Equipment Guarantee | |
In April 2013, the Company entered into a third-party guarantee with an equipment vendor that guarantees franchisees will purchase a total minimum quantity of certain equipment by March 31, 2014. Under the terms of the agreement, in the event that franchisees do not purchase the required minimum quantity, the Company would be contingently liable for purchasing the remaining quantity of equipment. As of September 28, 2013, the Company was contingently liable for $486 thousand under this guarantee. The Company assesses the risk of performing under this guarantee on a quarterly basis, and, based on internal forecasts, we have not recorded any liabilities related to this commitment. | |
Lease Guarantees | |
As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants and the guarantee of certain other leases, we are contingently liable on certain lease agreements. These leases have varying terms, the latest of which expires in 2024. As of September 28, 2013 and December 29, 2012, the potential amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessee was $6.4 million and $5.6 million, respectively. Our franchisees are the primary lessees under the majority of these leases. The Company generally has cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of nonpayment under the lease. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases. Accordingly, we do not believe it is probable that the Company will be required to make payments under such leases, and we have not recorded a liability for such contingent liabilities. | |
(c) Letters of Credit | |
At September 28, 2013 and December 29, 2012, the Company had standby letters of credit outstanding for a total of $11.9 million and $11.5 million, respectively. There were no amounts drawn down on these letters of credit. | |
(d) Legal Matters | |
In May 2003, a group of Dunkin’ Donuts franchisees from Quebec, Canada filed a lawsuit against the Company on a variety of claims, based on events which primarily occurred 10 to 15 years ago, including but not limited to, alleging that the Company breached its franchise agreements and provided inadequate management and support to Dunkin’ Donuts franchisees in Quebec (the “Bertico litigation”). On June 22, 2012, the Quebec Superior Court found for the plaintiffs and issued a judgment against the Company in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest, representing loss in value of the franchises and lost profits. During the second quarter of 2012, the Company increased its estimated liability related to the Bertico litigation by $20.7 million to reflect the judgment amount and estimated plaintiff legal costs and interest. During the third and fourth quarters of 2012, the Company accrued an additional $493 thousand for interest that continues to accrue on the judgment amount. During the three and nine months ended September 28, 2013, the Company accrued an additional $235 thousand and $718 thousand, respectively, of interest, resulting in an estimated liability of $25.8 million, including the impact of foreign exchange, as of September 28, 2013. The Company strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. As such, the Company is vigorously appealing the decision. | |
The Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. At September 28, 2013 and December 29, 2012, contingent liabilities, excluding the Bertico litigation, totaling $1.5 million, were included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the potential loss which may be incurred in connection with these matters. While the Company intends to vigorously defend its positions against all claims in these lawsuits and disputes, it is reasonably possible that the losses in connection with all matters could increase by up to an additional $12.0 million based on the outcome of ongoing litigation or negotiations. | |
(e) Line of Credit to Distribution Facility | |
In May 2013, the Company provided a secured revolving line of credit to a distribution facility of franchisee products for an aggregate maximum principal amount of up to $8.0 million plus interest. The entire principal balance and accrued and unpaid interest is due June 1, 2014. The purpose of this line of credit is to provide funding for the purchase and storage of certain inventory, which was pledged as collateral under a security agreement entered into in connection with the line of credit agreement. Through September 28, 2013, no amounts have been drawn on this line of credit. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related-Party Transactions | ' | ||||||||||||
Related-Party Transactions | |||||||||||||
(a) Advertising Funds | |||||||||||||
At September 28, 2013 and December 29, 2012, the Company had a net payable of $17.9 million and $13.7 million, respectively, to the various advertising funds. | |||||||||||||
To cover administrative expenses of the advertising funds, the Company charges each advertising fund a management fee for items such as facilities, accounting services, information technology, data processing, product development, legal, administrative support services, and other operating expenses, which amounted to $1.5 million and $1.4 million for the three months ended September 28, 2013 and September 29, 2012, respectively, and $4.3 million for the nine months ended September 28, 2013 and September 29, 2012. Such management fees are reflected in the consolidated statements of operations as a reduction in general and administrative expenses, net. | |||||||||||||
The Company made discretionary contributions to certain advertising funds for the purpose of supplementing national and regional advertising in certain markets of $62 thousand and $105 thousand during the three months ended September 28, 2013 and September 29, 2012, respectively, and $1.2 million and $844 thousand, during the nine months ended September 28, 2013 and September 29, 2012, respectively, which are included in general and administrative expenses, net in the consolidated statements of operations. Additionally, the Company made net contributions to the advertising funds based on retail sales as owner and operator of company-owned restaurants of $256 thousand and $205 thousand during the three months ended September 28, 2013 and September 29, 2012, respectively, and $749 thousand and $579 thousand during the nine months ended September 28, 2013 and September 29, 2012, respectively, which are included in company-owned restaurant expenses in the consolidated statements of operations. During the three and nine months ended September 28, 2013, the Company also made $357 thousand and $3.6 million, respectively, of contributions to fund future initiatives that will benefit the gift card program, which was contributed from the gift card breakage liability included within other current liabilities in the consolidated balance sheets. | |||||||||||||
(b) Sponsors | |||||||||||||
Through the first quarter of fiscal year 2012, DBGI was majority-owned by investment funds affiliated with Bain Capital Partners, LLC, The Carlyle Group, and Thomas H. Lee Partners, L.P. (collectively, the “Sponsors”). Subsequently, the Sponsors sold all of their remaining shares in the Company. One representative of each Sponsor continues to serve on the board of directors. | |||||||||||||
At December 29, 2012, certain affiliates of the Sponsors held $52.4 million of term loans issued under the Company’s senior credit facility. The terms of these loans were identical to all other term loans issued to unrelated lenders in the senior credit facility. As of September 28, 2013, there were no term loans held by affiliates of the Sponsors. | |||||||||||||
The Sponsors have historically held a substantial interest in our Company as well as several other entities. The existence of such common ownership and management control could result in differences within our operating results or financial position than if the entities were autonomous; however, we believe such transactions were negotiated at arms-length. The Company made payments to entities in which the Sponsors have ownership interests totaling approximately $492 thousand and $298 thousand during the three months ended September 28, 2013 and September 29, 2012, respectively, and $1.7 million and $1.2 million during the nine months ended September 28, 2013 and September 29, 2012, respectively, primarily for the purchase of consulting services, training services, and leasing of restaurant space. At December 29, 2012, the Company had a net payable of $150 thousand to these entities. At September 28, 2013, the Company had no net payable to these entities. | |||||||||||||
(c) Equity Method Investments | |||||||||||||
The Company recognized royalty income from its equity method investees as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
B-R 31 Ice Cream Co., Ltd. | $ | 838 | 1,107 | 1,842 | 2,257 | ||||||||
BR Korea Co., Ltd. | 1,036 | 939 | 3,065 | 2,706 | |||||||||
Coffee Alliance, S.L. (“Coffee Alliance”) | — | — | 130 | — | |||||||||
$ | 1,874 | 2,046 | 5,037 | 4,963 | |||||||||
At September 28, 2013 and December 29, 2012, the Company had $1.2 million of royalties receivable from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful accounts, in the consolidated balance sheets. | |||||||||||||
The Company made net payments to its joint ventures totaling approximately $929 thousand and $376 thousand during the three months ended September 28, 2013 and September 29, 2012, respectively, and $3.0 million and $1.1 million during the nine months ended September 28, 2013 and September 29, 2012, respectively, primarily for the purchase of ice cream products and incentive payments. | |||||||||||||
During the three and nine months ended September 28, 2013, the Company made additional loans of $496 thousand and $2.1 million, respectively, to our Spain joint venture, Coffee Alliance. As of September 28, 2013 and December 29, 2012, the Company had $2.7 million and $666 thousand, respectively, of notes receivable from Coffee Alliance, which are included in other assets in the consolidated balance sheets. During the three months ended September 28, 2013, the Company fully reserved all outstanding notes and accounts receivable totaling $2.8 million, and fully impaired its equity investment in Coffee Alliance of $873 thousand. The reserves on accounts and notes receivable are included in general and administrative expenses, net, and the impairment of the equity investment is included in net income of equity method investments in the consolidated statements of operations. | |||||||||||||
During the three and nine months ended September 28, 2013, the Company recognized sales of ice cream products of $749 thousand and $3.3 million, respectively in the consolidated statements of operations from the sale of ice cream products to Palm Oasis Ventures Pty. Ltd. (“Australia JV”), of which the Company owns a 20 percent equity interest (see note 15). As of September 28, 2013, the Company had $2.1 million of receivables from the Australia JV, which were recorded in accounts receivables, net of allowance for doubtful accounts, in the consolidated balance sheets. | |||||||||||||
(d) Board of Directors | |||||||||||||
Certain family members of one of our directors, who retired in May 2013, hold an ownership interest in an entity that owns and operates Dunkin’ Donuts restaurants, and hold the right to develop additional restaurants under store development agreements. The Company received royalty and rental payments from this entity of $216 thousand during the three months ended September 29, 2012, and $343 thousand and $848 thousand during the nine months ended September 28, 2013 and September 29, 2012, respectively. The Company recognized $6 thousand of income related to store development agreements with this entity during the nine months ended September 28, 2013, and $40 thousand and $120 thousand during the three and nine months ended September 29, 2012, respectively. No such income was recognized during the three months ended September 28, 2013. All material terms of the franchise and store development agreements with this entity are consistent with other unrelated franchisees in the market. |
Closure_of_Manufacturing_Plant
Closure of Manufacturing Plant | 9 Months Ended |
Sep. 28, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Closure of Manufacturing Plant | ' |
Closure of Manufacturing Plant | |
During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, which supplied ice cream to certain of Baskin-Robbins’ international markets. Manufacturing of ice cream products that had been produced in Peterborough began transitioning to existing third-party partner suppliers during the third quarter of 2012, and production ceased at the plant at the end of September 2012. The majority of the costs and activities related to the closure of the plant and transition to third-party suppliers occurred in fiscal year 2012. | |
The Company recorded cumulative costs related to the plant closure of $12.6 million, of which $66 thousand and $654 thousand were recorded during the three and nine months ended September 28, 2013, respectively, and $5.3 million and $8.9 million were recorded during the three and nine months ended September 29, 2012, respectively. The Company also expects to incur additional costs of approximately $3 million to $4 million primarily related to the settlement of our Canadian pension plan upon final government approval, which likely will not be obtained until early 2014. | |
As of December 29, 2012, the Company had recorded reserves for ongoing termination benefits and one-time termination benefits of $636 thousand and $55 thousand, respectively, substantially all of which were paid during the nine months ended September 28, 2013. |
Sale_of_Baskin_Robbins_Austral
Sale of Baskin Robbins Australia | 9 Months Ended |
Sep. 28, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Sale of Baskin-Robbins Australia | ' |
Sale of Baskin-Robbins Australia | |
In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.5 million, net of transaction costs, which is included in other operating income in the consolidated statements of operations for the nine months ended September 28, 2013. The gain consisted of net proceeds of $6.7 million, offset by the carrying value of the business included in the sale, which totaled $216 thousand. As of September 28, 2013, unpaid transaction-related costs totaling $518 thousand are included in other current liabilities on the consolidated balance sheets. The Company retained the remaining 20% ownership of the Australia JV, which is included in equity method investments on the consolidated balance sheets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | ' | ||||||||||||||||||
Unaudited Financial Statements | ' | ||||||||||||||||||
Unaudited Consolidated Financial Statements | |||||||||||||||||||
The consolidated balance sheet as of September 28, 2013, the consolidated statements of operations and comprehensive income for the three and nine months ended September 28, 2013 and September 29, 2012, and the consolidated statements of cash flows for the nine months ended September 28, 2013 and September 29, 2012, are unaudited. | |||||||||||||||||||
The accompanying consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, included in the Company’s Annual Report on Form 10-K. | |||||||||||||||||||
Fiscal Year | ' | ||||||||||||||||||
Fiscal Year | |||||||||||||||||||
The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within our three- and nine-month periods ended September 28, 2013 and September 29, 2012 reflect the results of operations for the 13-week and 39-week periods ended on those dates. Operating results for the three- and nine-month periods ended September 28, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 28, 2013. | |||||||||||||||||||
Accounting Estimates | ' | ||||||||||||||||||
Accounting Estimates | |||||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the periods then ended. | |||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||
The carrying amounts of accounts receivable, notes and other receivables, assets and liabilities related to the advertising funds, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparties on a quarterly basis, and adjust the carrying values as necessary. We believe the carrying value of long-term receivables of $4.7 million and $5.8 million as of September 28, 2013 and December 29, 2012, respectively, approximates fair value. | |||||||||||||||||||
Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of September 28, 2013 and December 29, 2012 are summarized as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Quoted prices | Significant | Total | Quoted prices | Significant | Total | ||||||||||||||
in active | other | in active | other | ||||||||||||||||
markets for | observable | markets for | observable | ||||||||||||||||
identical assets | inputs | identical assets | inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||||
Mutual funds | $ | 2,163 | — | 2,163 | 2,505 | — | 2,505 | ||||||||||||
Interest rate swaps | — | 9,223 | 9,223 | — | — | — | |||||||||||||
Total assets | $ | 2,163 | 9,223 | 11,386 | 2,505 | — | 2,505 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 6,752 | 6,752 | — | 7,379 | 7,379 | ||||||||||||
Interest rate swaps | — | — | — | — | 2,809 | 2,809 | |||||||||||||
Total liabilities | $ | — | 6,752 | 6,752 | — | 10,188 | 10,188 | ||||||||||||
The mutual funds and deferred compensation liabilities primarily relate to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds mutual funds, as well as money market funds, to partially offset the Company’s liabilities under the NQDC Plan as well as other benefit plans. The changes in the fair value of the mutual funds are derived using quoted prices in active markets for the specific funds. As such, the mutual funds are classified within Level 1, as defined under U.S. GAAP. | |||||||||||||||||||
The Company uses readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives includes consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input, as defined under U.S. GAAP. As the magnitude of the CVA is not a significant component of the fair value of the interest rate swaps as of September 28, 2013, it is not considered a significant input and the derivatives are classified as Level 2. | |||||||||||||||||||
The carrying value and estimated fair value of long-term debt as of September 28, 2013 and December 29, 2012 were as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||
Term loans | $ | 1,828,226 | 1,836,621 | 1,849,958 | 1,878,980 | ||||||||||||||
The estimated fair value of our term loans is estimated based on current bid prices for our term loans. Judgment is required to develop these estimates. As such, our term loans are classified within Level 2, as defined under U.S. GAAP. | |||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||
The Company uses derivative instruments to hedge interest rate risks. These derivative contracts are entered into with financial institutions. The Company does not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. | |||||||||||||||||||
We record all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the consolidated statements of operations immediately. Cash flows associated with the Company's interest rate swap agreements are classified as cash flows from operating activities in the consolidated statements of cash flows which is consistent with the classification of cash flows of the underlying hedged item. See note 6 for a discussion of the Company's use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information. | |||||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||
The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. At September 28, 2013, one master licensee and majority owned subsidiaries of the master licensee, accounted for approximately 27% of total accounts and notes receivable, which was primarily due to the timing of orders and shipments of ice cream to the master licensee. At December 29, 2012, no individual franchisee or master licensee accounted for more than 10% of accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for the three and nine months ended September 28, 2013 or the three or nine months ended September 29, 2012. | |||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires presentation of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This guidance is effective for the Company in fiscal year 2014 with early adoption permitted. The Company has not adopted this guidance as of September 28, 2013, and does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. | |||||||||||||||||||
In February 2013, the FASB issued new guidance which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
In December 2011, the FASB issued guidance which enhanced existing disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. In January 2013, the FASB issued new guidance to clarify that the guidance issued in December 2011 on offsetting financial assets and financial liabilities was limited to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria or subject to a master netting arrangement or similar agreement. It further clarifies that ordinary trade receivables and other receivables are not in the scope of the existing guidance. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
Subsequent Events | ' | ||||||||||||||||||
Subsequent Events | |||||||||||||||||||
Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | ' | ||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of September 28, 2013 and December 29, 2012 are summarized as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Quoted prices | Significant | Total | Quoted prices | Significant | Total | ||||||||||||||
in active | other | in active | other | ||||||||||||||||
markets for | observable | markets for | observable | ||||||||||||||||
identical assets | inputs | identical assets | inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||||
Mutual funds | $ | 2,163 | — | 2,163 | 2,505 | — | 2,505 | ||||||||||||
Interest rate swaps | — | 9,223 | 9,223 | — | — | — | |||||||||||||
Total assets | $ | 2,163 | 9,223 | 11,386 | 2,505 | — | 2,505 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 6,752 | 6,752 | — | 7,379 | 7,379 | ||||||||||||
Interest rate swaps | — | — | — | — | 2,809 | 2,809 | |||||||||||||
Total liabilities | $ | — | 6,752 | 6,752 | — | 10,188 | 10,188 | ||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | ' | ||||||||||||||||||
The carrying value and estimated fair value of long-term debt as of September 28, 2013 and December 29, 2012 were as follows (in thousands): | |||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||
Term loans | $ | 1,828,226 | 1,836,621 | 1,849,958 | 1,878,980 | ||||||||||||||
Franchise_Fees_and_Royalty_Inc1
Franchise Fees and Royalty Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Disclosure Franchise Fees And Royalty Income [Abstract] | ' | ||||||||||||
Schedule Of Franchise Revenue Table | ' | ||||||||||||
Franchise fees and royalty income consisted of the following (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Royalty income | $ | 106,327 | 98,858 | 305,803 | 286,487 | ||||||||
Initial franchise fees, including renewal income | 11,159 | 8,989 | 28,242 | 23,332 | |||||||||
Total franchise fees and royalty income | $ | 117,486 | 107,847 | 334,045 | 309,819 | ||||||||
Changes in Franchised and Company-Owned Points of Distribution | ' | ||||||||||||
The changes in franchised and company-owned points of distribution were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Systemwide Points of Distribution: | |||||||||||||
Franchised points of distribution—beginning of period | 17,688 | 16,980 | 17,424 | 16,763 | |||||||||
Franchised points of distribution—opened | 360 | 310 | 904 | 879 | |||||||||
Franchised points of distribution—closed | (140 | ) | (124 | ) | (420 | ) | (472 | ) | |||||
Net transfers to company-owned points of distribution | — | — | — | (4 | ) | ||||||||
Franchised points of distribution in operation—end of period | 17,908 | 17,166 | 17,908 | 17,166 | |||||||||
Company-owned points of distribution—end of period | 32 | 37 | 32 | 37 | |||||||||
Total systemwide points of distribution—end of period | 17,940 | 17,203 | 17,940 | 17,203 | |||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Other Intangible Assets | ' | ||||||||||||
Other intangible assets at September 28, 2013 consisted of the following (in thousands): | |||||||||||||
Weighted | Gross | Accumulated | Net carrying | ||||||||||
average | carrying | amortization | amount | ||||||||||
amortization | amount | ||||||||||||
period | |||||||||||||
(years) | |||||||||||||
Definite-lived intangibles: | |||||||||||||
Franchise rights | 20 | $ | 383,770 | (154,829 | ) | 228,941 | |||||||
Favorable operating leases acquired | 16 | 74,549 | (36,734 | ) | 37,815 | ||||||||
License rights | 10 | 6,230 | (4,721 | ) | 1,509 | ||||||||
Indefinite-lived intangible: | |||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||
$ | 1,655,519 | (196,284 | ) | 1,459,235 | |||||||||
Other intangible assets at December 29, 2012 consisted of the following (in thousands): | |||||||||||||
Weighted | Gross | Accumulated | Net carrying | ||||||||||
average | carrying | amortization | amount | ||||||||||
amortization | amount | ||||||||||||
period | |||||||||||||
(years) | |||||||||||||
Definite-lived intangibles: | |||||||||||||
Franchise rights | 20 | $ | 384,065 | (139,677 | ) | 244,388 | |||||||
Favorable operating leases acquired | 15 | 77,653 | (35,207 | ) | 42,446 | ||||||||
License rights | 10 | 6,230 | (4,250 | ) | 1,980 | ||||||||
Indefinite-lived intangible: | |||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||
$ | 1,658,918 | (179,134 | ) | 1,479,784 | |||||||||
Total Estimated Amortization Expense | ' | ||||||||||||
Total estimated amortization expense for fiscal years 2013 | |||||||||||||
through 2017 is presented below (in thousands). The amount reflected below for fiscal year 2013 includes year-to-date amortization. | |||||||||||||
Fiscal year: | |||||||||||||
2013 | $ | 26,904 | |||||||||||
2014 | 25,447 | ||||||||||||
2015 | 25,120 | ||||||||||||
2016 | 22,188 | ||||||||||||
2017 | 21,406 | ||||||||||||
Impact of Unfavorable Leases | ' | ||||||||||||
The impact of our unfavorable leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Increase in rental income | $ | 246 | 286 | 752 | 814 | ||||||||
Decrease in rental expense | 367 | 302 | 933 | 990 | |||||||||
Total increase in operating income | $ | 613 | 588 | 1,685 | 1,804 | ||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Transactions (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||
The fair values of derivatives instruments consisted of the following (in thousands): | ||||||||||||||
September 28, | December 29, | Consolidated Balance Sheet Classification | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps - asset | $ | 9,223 | — | Other assets | ||||||||||
Total fair values of derivative instruments - asset | $ | 9,223 | — | |||||||||||
Interest rate swaps - liability | $ | — | 2,809 | Other long-term liabilities | ||||||||||
Total fair values of derivative instruments - liability | $ | — | 2,809 | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||
The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for the three months ended September 28, 2013: | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | (4,328 | ) | (845 | ) | Interest expense | $ | (3,483 | ) | |||||
Income tax effect | 1,755 | 343 | Provision for income taxes | 1,412 | ||||||||||
Net of income taxes | $ | (2,573 | ) | (502 | ) | $ | (2,071 | ) | ||||||
The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for the nine months ended September 28, 2013: | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | 9,495 | (2,537 | ) | Interest expense | $ | 12,032 | |||||||
Income tax effect | (3,847 | ) | 1,040 | Provision for income taxes | (4,887 | ) | ||||||||
Net of income taxes | $ | 5,648 | (1,497 | ) | $ | 7,145 | ||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 9 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Other Current Liabilities | ' | ||||||
Other current liabilities consisted of the following (in thousands): | |||||||
September 28, | December 29, | ||||||
2013 | 2012 | ||||||
Gift card/certificate liability | $ | 71,601 | 145,981 | ||||
Gift card breakage liability | 16,835 | — | |||||
Accrued salary and benefits | 22,427 | 31,136 | |||||
Accrued legal liabilities (see note 12(d)) | 27,267 | 27,305 | |||||
Accrued interest | 10,748 | 13,564 | |||||
Accrued professional costs | 2,737 | 2,996 | |||||
Other | 25,456 | 18,949 | |||||
Total other current liabilities | $ | 177,071 | 239,931 | ||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Revenues by Segment | ' | ||||||||||||
Revenues by segment were as follows (in thousands): | |||||||||||||
Revenues | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts U.S. | $ | 134,254 | 123,622 | 382,560 | 357,282 | ||||||||
Dunkin’ Donuts International | 4,174 | 3,671 | 12,728 | 11,489 | |||||||||
Baskin-Robbins U.S. | 11,899 | 11,667 | 34,000 | 34,259 | |||||||||
Baskin-Robbins International | 32,759 | 29,657 | 93,104 | 84,004 | |||||||||
Total reportable segment revenues | 183,086 | 168,617 | 522,392 | 487,034 | |||||||||
Other | 3,231 | 3,102 | 8,271 | 9,444 | |||||||||
Total revenues | $ | 186,317 | 171,719 | 530,663 | 496,478 | ||||||||
Segment Profit by Segment | ' | ||||||||||||
Segment profit (loss) by segment was as follows (in thousands): | |||||||||||||
Segment profit (loss) | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts U.S. | $ | 100,278 | 91,122 | 274,188 | 260,981 | ||||||||
Dunkin’ Donuts International | (1,052 | ) | 2,402 | 3,093 | 7,496 | ||||||||
Baskin-Robbins U.S. | 8,327 | 8,069 | 22,048 | 22,386 | |||||||||
Baskin-Robbins International | 16,795 | 16,047 | 45,548 | 35,171 | |||||||||
Total reportable segment profit | 124,348 | 117,640 | 344,877 | 326,034 | |||||||||
Corporate and other | (29,490 | ) | (31,051 | ) | (84,883 | ) | (110,556 | ) | |||||
Interest expense, net | (19,700 | ) | (18,794 | ) | (60,213 | ) | (51,923 | ) | |||||
Depreciation and amortization | (12,529 | ) | (15,680 | ) | (37,046 | ) | (42,850 | ) | |||||
Long-lived asset impairment charges | (92 | ) | (564 | ) | (447 | ) | (950 | ) | |||||
Loss on debt extinguishment and refinancing transactions | — | (3,963 | ) | (5,018 | ) | (3,963 | ) | ||||||
Other gains (losses), net | 12 | (265 | ) | (1,191 | ) | (472 | ) | ||||||
Income before income taxes | $ | 62,549 | 47,323 | 156,079 | 115,320 | ||||||||
Equity in Net Income of Joint Ventures Reportable Segment | ' | ||||||||||||
Net income of equity method investments by reportable segment was as follows (in thousands): | |||||||||||||
Net income (loss) of equity method investments | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Dunkin’ Donuts International | $ | (431 | ) | 414 | (177 | ) | 1,797 | ||||||
Baskin-Robbins International | 7,467 | 7,504 | 14,131 | 12,848 | |||||||||
Total reportable segments | 7,036 | 7,918 | 13,954 | 14,645 | |||||||||
Other | 292 | 779 | 1,243 | 2,669 | |||||||||
Total net income of equity method investments | $ | 7,328 | 8,697 | 15,197 | 17,314 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Schedule of Shareholders' Equity | ' | |||||||||||||||
The changes in total stockholders' equity and redeemable noncontrolling interests were as follows (in thousands): | ||||||||||||||||
Stockholders' equity | Redeemable noncontrolling interests | |||||||||||||||
Total stockholders’ equity of Dunkin’ Brands | Noncontrolling interests | Total stockholders’ equity | ||||||||||||||
Balance at December 29, 2012 | $ | 346,651 | 3,324 | 349,975 | — | |||||||||||
Net income attributable to Dunkin' Brands | 104,831 | — | 104,831 | — | ||||||||||||
Net loss attributable to noncontrolling interests | — | (239 | ) | (239 | ) | (177 | ) | |||||||||
Other comprehensive loss | (4,377 | ) | — | (4,377 | ) | — | ||||||||||
Dividends paid on common stock | (60,707 | ) | — | (60,707 | ) | — | ||||||||||
Exercise of stock options | 6,287 | — | 6,287 | — | ||||||||||||
Repurchases of common stock | (17,190 | ) | — | (17,190 | ) | — | ||||||||||
Share-based compensation expense | 5,750 | — | 5,750 | — | ||||||||||||
Reclassification to redeemable noncontrolling interests | — | (3,085 | ) | (3,085 | ) | 3,085 | ||||||||||
Contributions from noncontrolling interests | — | — | — | 2,205 | ||||||||||||
Other, net | (42 | ) | — | (42 | ) | — | ||||||||||
Balance at September 28, 2013 | $ | 381,203 | — | 381,203 | 5,113 | |||||||||||
Changes in Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The changes in the components of accumulated other comprehensive income were as follows (in thousands): | ||||||||||||||||
Effect of foreign | Unrealized losses on interest rate swaps | Unrealized loss on pension plan | Other | Accumulated | ||||||||||||
currency | other | |||||||||||||||
translation | comprehensive | |||||||||||||||
income | ||||||||||||||||
Balance at December 29, 2012 | $ | 14,914 | (1,655 | ) | (2,486 | ) | (1,632 | ) | 9,141 | |||||||
Other comprehensive income (loss)(1) | (11,345 | ) | 7,145 | (231 | ) | 54 | (4,377 | ) | ||||||||
Balance at September 28, 2013 | $ | 3,569 | 5,490 | (2,717 | ) | (1,578 | ) | 4,764 | ||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | ' | ||||||||||||
The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Net income attributable to Dunkin’ Brands—basic and diluted | $ | 40,221 | 29,526 | 104,831 | 73,973 | ||||||||
Allocation of net income to common stockholders: | |||||||||||||
Common—basic(1) | 40,221 | 29,508 | 104,831 | 73,842 | |||||||||
Common—diluted(1) | 40,221 | 29,509 | 104,831 | 73,863 | |||||||||
Weighted average number of common shares: | |||||||||||||
Common—basic | 106,531,827 | 112,720,961 | 106,421,114 | 117,499,678 | |||||||||
Common—diluted | 108,164,925 | 115,075,000 | 108,178,632 | 119,459,154 | |||||||||
Earnings per common share: | |||||||||||||
Common—basic | $ | 0.38 | 0.26 | 0.99 | 0.63 | ||||||||
Common—diluted | 0.37 | 0.26 | 0.97 | 0.62 | |||||||||
(1) | Net income allocated to common shareholders for the three months ended September 29, 2012 excludes $18 thousand and $17 thousand for basic and diluted earnings per share, respectively, and $131 thousand and $110 thousand for basic and diluted earnings per share, respectively, for the nine months ended September 29, 2012, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for the three and nine months ended September 28, 2013 |
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
The Company recognized royalty income from its equity method investees as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
B-R 31 Ice Cream Co., Ltd. | $ | 838 | 1,107 | 1,842 | 2,257 | ||||||||
BR Korea Co., Ltd. | 1,036 | 939 | 3,065 | 2,706 | |||||||||
Coffee Alliance, S.L. (“Coffee Alliance”) | — | — | 130 | — | |||||||||
$ | 1,874 | 2,046 | 5,037 | 4,963 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
customer | customer | customer | Minimum [Member] | Maximum [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |
Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | ||||||
customer | customer | customer | customer | ||||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial reporting and operating period, year | ' | ' | ' | '52 Week | '53 Week | ' | ' | ' | ' |
Financial reporting and operating period, quarter | '13-Week | '39-Week | ' | ' | ' | ' | ' | ' | ' |
Carrying value of long term receivables | $4,700,000 | $4,700,000 | $5,800,000 | ' | ' | ' | ' | ' | ' |
Number of customer that accounted for more than 10% of receivable | 1 | 1 | 0 | ' | ' | ' | ' | ' | ' |
Percentage of receivable from one master licensee account | 27.00% | 27.00% | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, number of customers | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 |
Carrying Value and Estimated Fair Value Of Long Term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of long term debt | 1,828,226,000 | 1,828,226,000 | 1,849,958,000 | ' | ' | ' | ' | ' | ' |
Fair value of long term debt | $1,836,621,000 | $1,836,621,000 | $1,878,980,000 | ' | ' | ' | ' | ' | ' |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Long-term Debt | $1,828,226 | $1,849,958 |
Assets | 11,386 | 2,505 |
Liabilities | 6,752 | 10,188 |
Fair value of long term debt | 1,836,621 | 1,878,980 |
Mutual funds | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 2,163 | 2,505 |
Interest Rate Swap [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 9,223 | 0 |
Deferred compensation liabilities | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | 6,752 | 7,379 |
Interest rate swaps | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | 0 | 2,809 |
Quoted prices in active markets for identical assets (Level 1) | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 2,163 | 2,505 |
Liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Mutual funds | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 2,163 | 2,505 |
Quoted prices in active markets for identical assets (Level 1) | Interest Rate Swap [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Deferred compensation liabilities | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Interest rate swaps | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | 0 | 0 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 9,223 | 0 |
Liabilities | 6,752 | 10,188 |
Significant other observable inputs (Level 2) | Mutual funds | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 0 | 0 |
Significant other observable inputs (Level 2) | Interest Rate Swap [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Assets | 9,223 | 0 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | 6,752 | 7,379 |
Significant other observable inputs (Level 2) | Interest rate swaps | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Liabilities | $0 | $2,809 |
Changes_in_Franchised_and_Comp
Changes in Franchised and Company-Owned Points of Distribution (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
distributor | distributor | distributor | distributor | |
Number of Franchises [Roll Forward] | ' | ' | ' | ' |
Franchised points of distribution—beginning of period | 17,688 | 16,980 | 17,424 | 16,763 |
Franchised points of distribution—opened | 360 | 310 | 904 | 879 |
Franchised points of distribution—closed | -140 | -124 | -420 | -472 |
Net transfers to company-owned points of distribution | 0 | ' | 0 | -4 |
Franchised points of distribution in operation—end of period | 17,908 | 17,166 | 17,908 | 17,166 |
Company-owned points of distribution—end of period | 32 | 37 | 32 | 37 |
Total systemwide points of distribution—end of period | 17,940 | 17,203 | 17,940 | 17,203 |
Franchise_Fees_and_Royalty_Inc2
Franchise Fees and Royalty Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Franchisor Disclosure [Line Items] | ' | ' | ' | ' |
Royalty income | $106,327 | $98,858 | $305,803 | $286,487 |
Initial franchise fees, including renewal income | 11,159 | 8,989 | 28,242 | 23,332 |
Total franchise fees and royalty income | $117,486 | $107,847 | $334,045 | $309,819 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Other Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | $1,655,519 | $1,658,918 |
Accumulated amortization | -196,284 | -179,134 |
Net carrying amount | 1,459,235 | 1,479,784 |
Definite-lived intangibles | Franchise rights | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period (years) | '20 years | '20 years |
Gross carrying amount | 383,770 | 384,065 |
Accumulated amortization | -154,829 | -139,677 |
Net carrying amount | 228,941 | 244,388 |
Definite-lived intangibles | Favorable operating leases acquired | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period (years) | '16 years | '15 years |
Gross carrying amount | 74,549 | 77,653 |
Accumulated amortization | -36,734 | -35,207 |
Net carrying amount | 37,815 | 42,446 |
Definite-lived intangibles | License rights | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period (years) | '10 years | '10 years |
Gross carrying amount | 6,230 | 6,230 |
Accumulated amortization | -4,721 | -4,250 |
Net carrying amount | 1,509 | 1,980 |
Indefinite-lived intangible | Trade names | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 1,190,970 | 1,190,970 |
Net carrying amount | $1,190,970 | $1,190,970 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Impairment of favorable operating leases acquired | $77 | $350 | $358 | $667 |
Total_Estimated_Amortization_E
Total Estimated Amortization Expense (Detail) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Expected Amortization Expense [Line Items] | ' |
2013 | $26,904 |
2014 | 25,447 |
2015 | 25,120 |
2016 | 22,188 |
2017 | $21,406 |
Impact_of_Unfavorable_Leases_D
Impact of Unfavorable Leases (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Lease and Rental Expense [Line Items] | ' | ' | ' | ' |
Impact of unfavorable operating leases acquired | $613 | $588 | $1,685 | $1,804 |
Increase in rental income | ' | ' | ' | ' |
Lease and Rental Expense [Line Items] | ' | ' | ' | ' |
Impact of unfavorable operating leases acquired | 246 | 286 | 752 | 814 |
Decrease in rental expense | ' | ' | ' | ' |
Lease and Rental Expense [Line Items] | ' | ' | ' | ' |
Impact of unfavorable operating leases acquired | $367 | $302 | $933 | $990 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Sep. 28, 2013 | Mar. 30, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Oct. 04, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | |
Subsequent Event [Member] | If DBI’s leverage ratio is greater than 5.50x [Member] | LIBOR Rate Loans | LIBOR Rate Loans | Base Rate Loans | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Term Loan [Member] | Lenders Exiting Term Loan Lending Syndicate [Member] | LIBOR Spread [Member] | Federal Fund Rate [Member] | ||||||
Minimum | Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Term Loans [Member] | Term Loans [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin under term loan facility | ' | ' | ' | ' | ' | ' | ' | 2.75% | 1.00% | 1.75% | ' | 1.50% | 2.50% | ' | ' | ' | 1.00% | 0.50% |
Debt Instrument Interest Rate Base Rate | 2.00% | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | 4.00% | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' |
Notes reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $214,300,000 | ' | ' |
Loss on debt extinguishment and refinancing transactions | 0 | 5,018,000 | 3,963,000 | 5,018,000 | 3,963,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of Deferred Debt Issuance Cost | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other debt extinguishment and refinancing expense | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount Percentage | 0.25% | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance discount | 4,600,000 | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Finance Costs, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000 | ' | ' | ' |
Repayment of credit facility per calendar year | 19,000,000 | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of excess cash flow required to be used to prepay term loan | ' | ' | ' | 25.00% | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio Maximum, No Excess Cash Flow Payment | 4.75 | ' | ' | 4.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio Minimum Triggering Event, Fifty Percent Excess Cash Flow Payment Requirement | 5.5 | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional principal payment | ' | ' | ' | 19,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voluntary payment | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Derivative instruments and Hedging Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | |
Swap [Member] | Swap [Member] | Swap [Member] | Other Current liabilities [Member] | Other Current liabilities [Member] | |||||
counterparties | |||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Agreement, Number of Counterparties | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Derivative, Description of Variable Rate Basis | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | ' | ' |
Derivative variable interest rate spread, floor | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' |
Notional value of swaps | ' | ' | ' | ' | ' | $900,000,000 | ' | ' | ' |
Swap quarterly fixed interest rate | ' | ' | ' | ' | ' | 1.37% | ' | ' | ' |
Total swap interest rate | ' | ' | ' | ' | ' | 4.12% | ' | ' | ' |
Interest expense | -19,805,000 | -18,920,000 | -60,523,000 | -52,306,000 | -19,000 | ' | -19,000 | ' | ' |
Ineffectiveness of interest rate swap | 0 | ' | 0 | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | ' | 864,000 | 864,000 |
Estimated reclassification from Accumulated OCI to Income | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' |
Derivative termination value | $8,600,000 | ' | $8,600,000 | ' | ' | ' | ' | ' | ' |
Derivative_Insturments_and_Hed
Derivative Insturments and Hedging Transactions (Details 2) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Total fair values of derivative instruments - asset | $9,223 | $0 |
Total fair values of derivative instruments - liability | 0 | 2,809 |
Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate swaps - asset | 9,223 | 0 |
Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate swaps - liability | $0 | $2,809 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Transaction - Derivative Effects (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Derivative [Line Items] | ' | ' | ' | ' |
Interest rate swaps, Total effect on other comprehensive income (loss) | ($3,483) | ' | $12,032 | ' |
Income tax effect, Total effect on other comprehensive income (loss) | 1,412 | ' | -4,887 | ' |
Net of income taxes, Amount of gain (loss) recognized in other comprehensive income (loss) | -2,573 | ' | 5,648 | ' |
Net of income taxes, Amount of net gain (loss) reclassified into earnings | -502 | ' | -1,497 | ' |
Net of income taxes, Total effect on other comprehensive income (loss) | -2,071 | -2,454 | 7,145 | -2,454 |
Interest Expense [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Interest rate swaps, Amount of gain (loss) recognized in other comprehensive income (loss) | -4,328 | ' | 9,495 | ' |
Interest rate swaps, Amount of net gain (loss) reclassified into earnings | -845 | ' | -2,537 | ' |
Provision for Income Taxes [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Income tax effect, Amount of gain (loss) recognized in other comprehensive income (loss) | 1,755 | ' | -3,847 | ' |
Income tax effect, Amount of net gain (loss) reclassified into earnings | $343 | ' | $1,040 | ' |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Gift card/certificate liability | $71,601 | $145,981 |
Gift card breakage liability | 16,835 | 0 |
Accrued salary and benefits | 22,427 | 31,136 |
Accrued legal liabilities (see note 12(d)) | 27,267 | 27,305 |
Interest Payable, Current | 10,748 | 13,564 |
Accrued professional costs | 2,737 | 2,996 |
Other | 25,456 | 18,949 |
Total other current liabilities | $177,071 | $239,931 |
Segment_Profit_by_Segment_Deta
Segment Profit by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | $40,044 | ' | $29,301 | $104,415 | $73,434 |
Corporate and other | -29,490 | ' | -31,051 | -84,883 | -110,556 |
Interest expense, net | -19,700 | ' | -18,794 | -60,213 | -51,923 |
Depreciation and amortization | -12,529 | ' | -15,680 | -37,046 | -42,850 |
Impairment charges | -92 | ' | -564 | -447 | -950 |
Loss on debt extinguishment and refinancing transactions | 0 | -5,018 | -3,963 | -5,018 | -3,963 |
Other gains, net | 12 | ' | -265 | -1,191 | -472 |
Income before income taxes | 62,549 | ' | 47,323 | 156,079 | 115,320 |
Reportable Segment | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | 124,348 | ' | 117,640 | 344,877 | 326,034 |
Reportable Segment | Dunkin' Donuts | United States | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | 100,278 | ' | 91,122 | 274,188 | 260,981 |
Reportable Segment | Dunkin' Donuts | International | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | -1,052 | ' | 2,402 | 3,093 | 7,496 |
Reportable Segment | Baskin-Robbins | United States | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | 8,327 | ' | 8,069 | 22,048 | 22,386 |
Reportable Segment | Baskin-Robbins | International | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' |
Reportable segment profit | $16,795 | ' | $16,047 | $45,548 | $35,171 |
Revenues_by_Segment_Detail
Revenues by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Other | $3,231 | $3,102 | $8,271 | $9,444 |
Total revenues | 186,317 | 171,719 | 530,663 | 496,478 |
Reportable Segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Reportable segment revenues | 183,086 | 168,617 | 522,392 | 487,034 |
Reportable Segment | Dunkin' Donuts | United States | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Reportable segment revenues | 134,254 | 123,622 | 382,560 | 357,282 |
Reportable Segment | Dunkin' Donuts | International | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Reportable segment revenues | 4,174 | 3,671 | 12,728 | 11,489 |
Reportable Segment | Baskin-Robbins | United States | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Reportable segment revenues | 11,899 | 11,667 | 34,000 | 34,259 |
Reportable Segment | Baskin-Robbins | International | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Reportable segment revenues | $32,759 | $29,657 | $93,104 | $84,004 |
Equity_in_Net_Income_of_Joint_
Equity in Net Income of Joint Ventures Reportable Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' |
Net income of equity method investments, excluding impairment | $7,328 | $8,697 | $15,197 | $17,314 |
Other | 292 | 779 | 1,243 | 2,669 |
Reportable Segment | ' | ' | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' |
Net income of equity method investments, excluding impairment | 7,036 | 7,918 | 13,954 | 14,645 |
Reportable Segment | Dunkin' Donuts | International | ' | ' | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' |
Net income of equity method investments, excluding impairment | -431 | 414 | -177 | 1,797 |
Reportable Segment | Baskin-Robbins | International | ' | ' | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' |
Net income of equity method investments, excluding impairment | $7,467 | $7,504 | $14,131 | $12,848 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 28, 2013 | |
segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 4 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||
Sep. 04, 2013 | Jun. 06, 2013 | Feb. 20, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Dec. 31, 2011 | Oct. 24, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | |||
Subsequent Event [Member] | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | Accumulated Defined Benefit Plans Adjustment [Member] | Partnership [Member] | ||||||||||||
Restricted Stock | Restricted Stock | Employee Stock Option | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Minimum [Member] | Maximum | |||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | ' | ' | ' | $209,800,000 | $165,642,000 | $209,800,000 | $165,642,000 | $252,618,000 | $246,715,000 | ' | ' | ' | ' | ' | ' | $4,000,000 | ||
Property and equipment, net | ' | ' | ' | 178,639,000 | ' | 178,639,000 | ' | 181,172,000 | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | ||
Treasury stock acquired (in shares) | ' | ' | ' | ' | ' | 417,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Treasury stock acquired, weighted average price (in usd per share) | ' | ' | ' | ' | ' | $41.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Increase in treasury stock | ' | ' | ' | ' | ' | 17,190,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,177,999 | ' | ' | ' | ' | ' | ||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ||
Restricted stock units granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,495 | ' | ' | ' | ' | ' | ||
Share-based compensations, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '3 years | '4 years | ' | ' | ||
Options, maximum contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ||
Options, grant price (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37.26 | ' | ' | ' | ' | ' | ||
Options, grant date fair value (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.92 | ' | ' | ' | ' | ' | ||
Compensation expense related to share-based awards | ' | ' | ' | 2,100,000 | 3,100,000 | 5,800,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest Rate Swap, Interest Expense | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Increase Decrease In Accumulated Other Comprehensive Income Net | ' | ' | ' | ' | ' | -4,377,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | -57,000 | [1] | ' |
General and administrative expenses, net | ' | ' | ' | 57,703,000 | 55,630,000 | 174,287,000 | 186,550,000 | ' | ' | ' | ' | ' | ' | ' | 76,000 | ' | ||
Dividend per share of common stock paid (in usd per share) | $0.19 | $0.19 | $0.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividends paid on common stock | 20,300,000 | 20,300,000 | 20,200,000 | ' | ' | 60,707,000 | 54,189,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividend per share of common stock declared (in usd per share) | ' | ' | ' | $0.19 | $0.15 | $0.57 | $0.45 | ' | ' | $0.19 | ' | ' | ' | ' | ' | ' | ||
Provision for income taxes | ' | ' | ' | $22,505,000 | $18,022,000 | $51,664,000 | $41,886,000 | ' | ' | ' | ' | ' | ' | ' | ($19,000) | ' | ||
[1] | The Company reclassified $1.5 million of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to the interest rate swaps for the nine months ended September 28, 2013 (see note 6). Additionally, the Company reclassified $57 thousand of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to The Baskin-Robbins Employees’ Pension Plan for the nine months ended September 28, 2013, of which $76 thousand of losses are included in general and administrative expenses, net, and $19 thousand of a tax benefit is included in provision for income taxes |
Changes_in_Total_Shareholders_
Changes in Total Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Balance at December 29, 2012 | ' | ' | $349,975 | ' |
Net income attributable to Dunkin' Brands | 40,221 | 29,526 | 104,831 | 73,973 |
Net loss attributable to noncontrolling interests | ' | ' | -239 | ' |
Other comprehensive loss | 2,991 | 334 | -4,377 | -4,501 |
Dividends paid on common stock | ' | ' | -60,707 | ' |
Exercise of stock options | ' | ' | 6,287 | ' |
Repurchases of common stock | ' | ' | -17,190 | ' |
Share-based compensation expense | ' | ' | 5,750 | ' |
Reclassification to redeemable noncontrolling interests | ' | ' | -3,085 | ' |
Contributions from noncontrolling interests | ' | ' | 0 | ' |
Other, net | ' | ' | -42 | ' |
Balance at September 28, 2013 | 381,203 | ' | 381,203 | ' |
Redeemable noncontrolling interests [Roll Forward] | ' | ' | ' | ' |
Balance at December 29, 2012 | ' | ' | 0 | ' |
Net loss attributable to noncontrolling interests | ' | ' | -177 | ' |
Reclassification to redeemable noncontrolling interests | ' | ' | 3,085 | ' |
Contributions from noncontrolling interests | ' | ' | 2,205 | ' |
Balance at September 28, 2013 | 5,113 | ' | 5,113 | ' |
Parent [Member] | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Balance at December 29, 2012 | ' | ' | 346,651 | ' |
Net income attributable to Dunkin' Brands | ' | ' | 104,831 | ' |
Net loss attributable to noncontrolling interests | ' | ' | 0 | ' |
Other comprehensive loss | ' | ' | -4,377 | ' |
Dividends paid on common stock | ' | ' | -60,707 | ' |
Exercise of stock options | ' | ' | 6,287 | ' |
Repurchases of common stock | ' | ' | -17,190 | ' |
Share-based compensation expense | ' | ' | 5,750 | ' |
Reclassification to redeemable noncontrolling interests | ' | ' | 0 | ' |
Contributions from noncontrolling interests | ' | ' | 0 | ' |
Other, net | ' | ' | -42 | ' |
Balance at September 28, 2013 | 381,203 | ' | 381,203 | ' |
Noncontrolling Interest [Member] | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Balance at December 29, 2012 | ' | ' | 3,324 | ' |
Net income attributable to Dunkin' Brands | ' | ' | 0 | ' |
Net loss attributable to noncontrolling interests | ' | ' | -239 | ' |
Other comprehensive loss | ' | ' | 0 | ' |
Dividends paid on common stock | ' | ' | 0 | ' |
Exercise of stock options | ' | ' | 0 | ' |
Repurchases of common stock | ' | ' | 0 | ' |
Share-based compensation expense | ' | ' | 0 | ' |
Reclassification to redeemable noncontrolling interests | ' | ' | -3,085 | ' |
Contributions from noncontrolling interests | ' | ' | 0 | ' |
Other, net | ' | ' | 0 | ' |
Balance at September 28, 2013 | $0 | ' | $0 | ' |
Changes_in_Components_of_Accum
Changes in Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at beginning of period | $9,141 | |
Current period changes | -4,377 | [1] |
Balance at end of period | 4,764 | |
Effect of foreign currency translation | ' | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at beginning of period | 14,914 | |
Current period changes | -11,345 | [1] |
Balance at end of period | 3,569 | |
Unrealized losses on interest rate swaps | ' | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at beginning of period | -1,655 | |
Current period changes | 7,145 | [1] |
Balance at end of period | 5,490 | |
Unrealized loss on pension plan | ' | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at beginning of period | -2,486 | |
Current period changes | -231 | [1] |
Balance at end of period | -2,717 | |
Other | ' | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at beginning of period | -1,632 | |
Current period changes | 54 | [1] |
Balance at end of period | ($1,578) | |
[1] | The Company reclassified $1.5 million of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to the interest rate swaps for the nine months ended September 28, 2013 (see note 6). Additionally, the Company reclassified $57 thousand of losses, net of tax, from accumulated other comprehensive income into the consolidated statements of operations related to The Baskin-Robbins Employees’ Pension Plan for the nine months ended September 28, 2013, of which $76 thousand of losses are included in general and administrative expenses, net, and $19 thousand of a tax benefit is included in provision for income taxes |
Earnings_Per_Shares_Additional
Earnings Per Shares - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Amount excluded from net income attributable to common shareholder's basic | ' | $18 | ' | $131 |
Amount excluded from net income attributable to common shareholder's diluted | ' | 17 | ' | 110 |
Amount excluded from net income attributable to common shareholder's | $0 | ' | $0 | ' |
Dilutive securities, effect on basic earnings per share, including options and restrictive units | 1,633,098 | 2,354,039 | 1,757,518 | 1,959,476 |
Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive security excluded from calculation, restricted stock awards (in shares) | ' | ' | 0 | 4,000 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 1,181,338 | 1,046,753 | 1,441,640 | 728,719 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Net income attributable to Dunkin' Brands-basic and diluted | $40,221 | $29,526 | $104,831 | $73,973 | ||||
Allocation of net income (loss) to common stockholders: | ' | ' | ' | ' | ||||
Common-basic | 40,221 | [1] | 29,508 | [1] | 104,831 | [1] | 73,842 | [1] |
Common-diluted | $40,221 | [1] | $29,509 | [1] | $104,831 | [1] | $73,863 | [1] |
Weighted average number of common shares: | ' | ' | ' | ' | ||||
Common-basic (in shares) | 106,531,827 | 112,720,961 | 106,421,114 | 117,499,678 | ||||
Common-diluted (in shares) | 108,164,925 | 115,075,000 | 108,178,632 | 119,459,154 | ||||
Earnings (loss) per common share: | ' | ' | ' | ' | ||||
Common-basic (in dollars per share) | $0.38 | $0.26 | $0.99 | $0.63 | ||||
Common-diluted (in dollars per share) | $0.37 | $0.26 | $0.97 | $0.62 | ||||
[1] | Net income allocated to common shareholders for the three months ended September 29, 2012 excludes $18 thousand and $17 thousand for basic and diluted earnings per share, respectively, and $131 thousand and $110 thousand for basic and diluted earnings per share, respectively, for the nine months ended September 29, 2012, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for the three and nine months ended September 28, 2013 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $22,505,000 | $18,022,000 | $51,664,000 | $41,886,000 |
Effective tax rate | 36.00% | 38.10% | 33.10% | 36.30% |
Net tax benefit of reconciling items | 1,100,000 | ' | 6,200,000 | 2,400,000 |
Reversal of uncertain tax positions - domestic | ' | ' | 8,400,000 | ' |
Tax expense from change in enacted rate | ' | ' | 2,900,000 | ' |
Cash payments on interest due for tax examinations | ' | ' | $5,200,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Jun. 22, 2012 | Jun. 22, 2012 | Sep. 28, 2013 | Jun. 30, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | 17-May-13 | |
USD ($) | USD ($) | Financial Guarantee [Member] | Financial Guarantee [Member] | Payment Guarantee | Lease Agreements | Lease Agreements | Purchase Commitment | Purchase Commitment | Purchase Commitment | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Supply Commitment | Supply Commitment | Minimum | Maximum | Commitments to Extend Credit | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Transaction 01 | Transaction 01 | Transaction 02 | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
USD ($) | USD ($) | USD ($) | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchisees financing term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '10 years | ' |
Guarantee obligation, maximum exposure | $4,000,000 | $4,700,000 | ' | ' | $486,000 | $6,400,000 | $5,600,000 | $6,000,000 | $6,800,000 | ' | ' | ' | ' | ' | ' | ' | $54,400,000 | $57,500,000 | ' | ' | ' |
Fair value of the guarantee liability | 355,000 | 601,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the guarantee assets | 374,000 | 572,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserve for guarantee liabilities | ' | ' | 49,000 | 389,000 | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations period | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit | 11,900,000 | 11,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts drawn on letters of credit | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,900,000 | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in estimated liability related to litigation | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,700,000 | ' | ' | ' | ' | ' | ' | ' |
Increase in estimated liability related to litigation, interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 235,000 | ' | 493,000 | 718,000 | ' | ' | ' | ' | ' |
Contingent liabilities related to legal matters | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | ' | ' | 25,800,000 | ' | ' | ' | ' | ' |
Off-balance sheet risks, face amount, asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 |
Line of credit facility, amount drawn | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Net payable of advertising funds | $17,900,000 | ' | $17,900,000 | ' | $13,700,000 |
Fee for managing advertising funds | 1,500,000 | 1,400,000 | 4,300,000 | 4,300,000 | ' |
Supplemental advertising fund contribution | 62,000 | 105,000 | 1,200,000 | 844,000 | ' |
Advertising funds contribution, company-owned restaurant | 256,000 | 205,000 | 749,000 | 579,000 | ' |
Advertising funds contribution, prepaid future initiatives | 357,000 | ' | 3,600,000 | ' | ' |
Long term loans held by certain affiliates of sponsors | 0 | ' | 0 | ' | 52,400,000 |
Payments to sponsors and joint ventures | 492,000 | 298,000 | 1,700,000 | 1,200,000 | ' |
Amount payable to sponsors | 0 | ' | 0 | ' | 150,000 |
Royalties receivable from joint ventures | 1,200,000 | ' | 1,200,000 | ' | 1,200,000 |
Impairment charge, net of tax | 873,000 | 0 | 873,000 | 0 | ' |
B-R 31 Ice Cream Co., Ltd. ("BR Japan") | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Royalty received from joint venture | 838,000 | 1,107,000 | 1,842,000 | 2,257,000 | ' |
BR Korea Co., Ltd. ("BR Korea") | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Royalty received from joint venture | 1,036,000 | 939,000 | 3,065,000 | 2,706,000 | ' |
Coffee Alliance, S.L. (Coffee Alliance) | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Loans receivable, additions | 496,000 | ' | 2,100,000 | ' | ' |
Loans receivable | 2,700,000 | ' | 2,700,000 | ' | 666,000 |
Impairment charge, net of tax | 873,000 | ' | ' | ' | ' |
Allowance for doubtful notes and accounts receivable, related party | 2,800,000 | ' | 2,800,000 | ' | ' |
Royalty received from joint venture | 0 | 0 | 130,000 | 0 | ' |
Related Party | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Royalty received from joint venture | 1,874,000 | 2,046,000 | 5,037,000 | 4,963,000 | ' |
Joint Ventures | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Payments to sponsors and joint ventures | 929,000 | 376,000 | 3,000,000 | 1,100,000 | ' |
Board of Directors | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Royalty, rental and other payments received | 0 | 216,000 | 343,000 | 848,000 | ' |
Income related to a store development agreement | 0 | 40,000 | 6,000 | 120,000 | ' |
Australia Joint Venture [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Revenue from related parties | 749,000 | ' | 3,300,000 | ' | ' |
Ownership percentage | 20.00% | ' | 20.00% | ' | ' |
Due from joint ventures | $2,100,000 | ' | $2,100,000 | ' | ' |
Closure_of_Manufacturing_Plant1
Closure of Manufacturing Plant - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | |
Ongoing Termination Benefits [Member] | One-time Termination Benefits [Member] | Maximum | Minimum | |||||
Canadian Pension Plan [Member] | Canadian Pension Plan [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Plant closure costs incurred to date | ' | ' | $12,600,000 | ' | ' | ' | ' | ' |
Plant closure costs | 66,000 | 5,300,000 | 654,000 | 8,900,000 | ' | ' | ' | ' |
Expected reduction in operating income related to plant closing and transition | ' | ' | ' | ' | ' | ' | 4,000,000 | 3,000,000 |
Restructuring reserve | ' | ' | ' | ' | $636,000 | $55,000 | ' | ' |
Sale_of_Baskin_Robbins_Austral1
Sale of Baskin Robbins Australia (Details) (Australia Joint Venture [Member], USD $) | 1 Months Ended | |
Jun. 29, 2013 | Sep. 28, 2013 | |
Australia Joint Venture [Member] | ' | ' |
Subsidiary, Sale of Stock [Line Items] | ' | ' |
Percentage of ownership sold | 80.00% | ' |
Gain from sale of franchising business | $6,500,000 | ' |
Proceeds from sale of franchising business | 6,700,000 | ' |
Carrying value of franchise business sold | 216,000 | ' |
Unpaid transaction-related costs | ' | $518,000 |
Ownership percentage | ' | 20.00% |