Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 27, 2014 | Feb. 16, 2015 | Jun. 28, 2014 |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 27-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | ||
Entity Central Index Key | 1357204 | ||
Current Fiscal Year End Date | -15 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 97,603,602 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $4.89 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Trading Symbol | DNKN |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $208,080 | $256,933 |
Accounts receivable, net | 55,908 | 47,162 |
Notes and other receivables, net | 49,152 | 32,603 |
Deferred income taxes, net | 49,216 | 46,461 |
Restricted assets of advertising funds | 34,300 | 31,493 |
Prepaid income taxes | 24,861 | 25,699 |
Prepaid expenses and other current assets | 21,101 | 21,409 |
Total current assets | 442,618 | 461,760 |
Property and equipment, net | 182,061 | 182,858 |
Equity method investments | 164,493 | 170,644 |
Goodwill | 891,370 | 891,598 |
Other intangible assets, net | 1,425,797 | 1,452,205 |
Other assets | 71,044 | 75,625 |
Total assets | 3,177,383 | 3,234,690 |
Current liabilities: | ||
Current portion of long-term debt | 3,852 | 5,000 |
Capital lease obligations | 506 | 432 |
Accounts payable | 13,814 | 12,445 |
Liabilities of advertising funds | 48,081 | 49,077 |
Deferred income | 30,374 | 28,426 |
Other current liabilities | 258,892 | 248,918 |
Total current liabilities | 355,519 | 344,298 |
Long-term debt, net | 1,807,081 | 1,818,609 |
Capital lease obligations | 7,575 | 6,996 |
Unfavorable operating leases acquired | 14,795 | 16,834 |
Deferred income | 14,935 | 11,135 |
Deferred income taxes, net | 540,339 | 561,714 |
Other long-term liabilities | 62,189 | 62,816 |
Total long-term liabilities | 2,446,914 | 2,478,104 |
Commitments and contingencies (note 17) | ||
Redeemable noncontrolling interests | 6,991 | 4,930 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at December 27, 2014 and December 28, 2013, respectively | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 104,630,978 shares issued and outstanding at December 27, 2014; 106,876,919 shares issued and 106,646,219 shares outstanding at December 28, 2013 | 104 | 107 |
Additional paid-in capital | 1,093,363 | 1,196,426 |
Treasury stock, at cost | 0 | -10,773 |
Accumulated deficit | -711,531 | -779,741 |
Accumulated other comprehensive income (loss) | -13,977 | 1,339 |
Total stockholders’ equity | 367,959 | 407,358 |
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | $3,177,383 | $3,234,690 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
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) | 104,630,978 | 106,876,919 |
Common stock, shares outstanding (in shares) | 104,630,978 | 106,646,219 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Revenues: | |||
Franchise fees and royalty income | $482,329 | $453,976 | $418,940 |
Rental income | 97,663 | 96,082 | 96,816 |
Sales of ice cream products | 116,320 | 112,276 | 94,659 |
Sales at company-owned restaurants | 22,206 | 24,976 | 22,922 |
Other revenues | 30,191 | 26,530 | 24,844 |
Total revenues | 748,709 | 713,840 | 658,181 |
Operating costs and expenses: | |||
Occupancy expenses—franchised restaurants | 53,395 | 52,097 | 52,072 |
Cost of ice cream products | 81,896 | 79,278 | 69,019 |
Company-owned restaurant expenses | 22,687 | 24,480 | 23,133 |
General and administrative expenses, net | 227,534 | 230,847 | 241,883 |
Depreciation | 19,779 | 22,423 | 29,084 |
Amortization of other intangible assets | 25,760 | 26,943 | 26,943 |
Long-lived asset impairment charges | 1,484 | 563 | 1,278 |
Total operating costs and expenses | 432,535 | 436,631 | 443,412 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Net income, excluding impairment | 14,846 | 19,243 | 22,351 |
Impairment charge, net of tax | 0 | -873 | 0 |
Net income of equity method investments | 14,846 | 18,370 | 22,351 |
Other operating income, net | 7,838 | 9,157 | 2,309 |
Operating income | 338,858 | 304,736 | 239,429 |
Other income (expense): | |||
Interest income | 274 | 404 | 543 |
Interest expense | -68,098 | -80,235 | -74,031 |
Loss on debt extinguishment and refinancing transactions | -13,735 | -5,018 | -3,963 |
Other gains (losses), net | -1,566 | -1,799 | 23 |
Total other expense | -83,125 | -86,648 | -77,428 |
Income before income taxes | 255,733 | 218,088 | 162,001 |
Provision for income taxes | 80,170 | 71,784 | 54,377 |
Net income including noncontrolling interests | 175,563 | 146,304 | 107,624 |
Net loss attributable to noncontrolling interests | -794 | -599 | -684 |
Net income attributable to Dunkin' Brands | $176,357 | $146,903 | $108,308 |
Earnings per share: | |||
Common-basic (in dollars per share) | $1.67 | $1.38 | $0.94 |
Common-diluted (in dollars per share) | $1.65 | $1.36 | $0.93 |
Cash dividends declared per common share (in dollars per share) | $0.92 | $0.76 | $0.60 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $175,563 | $146,304 | $107,624 |
Other comprehensive income (loss), net: | |||
Effect of foreign currency translation, net of deferred tax expense (benefit) of $(358), $205, and $(260) for the fiscal years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively | -13,743 | -14,909 | -5,996 |
Unrealized gain (loss) on interest rate swaps, net of deferred tax expense (benefit) of $(1,608), $5,290 and $(1,154) for the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively | -2,369 | 7,740 | -1,655 |
Unrealized gain (loss) on pension plan, net of deferred tax expense (benefit) of $80, $(200), and $(415) for the fiscal years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively | 224 | -612 | -1,180 |
Other | 572 | -21 | -1,629 |
Total other comprehensive loss | -15,316 | -7,802 | -10,460 |
Comprehensive income including noncontrolling interests | 160,247 | 138,502 | 97,164 |
Comprehensive loss attributable to noncontrolling interests | -794 | -599 | -684 |
Comprehensive income attributable to Dunkin' Brands | $161,041 | $139,101 | $97,848 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, deferred tax effect | $358 | ($205) | $260 |
Unrealized gains (losses) on interest rate swaps, deferred tax effect | 1,608 | -5,290 | 1,154 |
Unrealized loss on pension plan, deferred tax effect | $80 | ($200) | ($415) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock | Additional paid-in capital | Treasury stock, at cost | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $745,936 | $119 | $1,478,291 | $0 | ($752,075) | $19,601 | $0 |
Balance, shares at Dec. 31, 2011 | 119,494,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 107,624 | 108,308 | -684 | ||||
Other comprehensive income (loss) | -10,460 | -10,460 | |||||
Sale of subsidiary shares to noncontrolling interests | 4,008 | 4,008 | |||||
Dividends paid on common stock | -70,069 | -70,069 | |||||
Exercise of stock options, shares | 1,277,000 | ||||||
Exercise of stock options | 4,418 | 2 | 4,416 | ||||
Share-based compensation expense, shares) | 372,000 | ||||||
Share-based compensation expense | 6,920 | 6,920 | |||||
Repurchases of common stock | -450,369 | -450,369 | |||||
Retirement of treasury stock (shares) | -15,001,000 | ||||||
Retirement of treasury stock | 0 | -15 | -180,027 | 450,369 | -270,327 | ||
Excess tax benefits from share-based compensation | 11,978 | 11,978 | |||||
Other | -11 | -11 | |||||
Balance at Dec. 29, 2012 | 349,975 | 106 | 1,251,498 | 0 | -914,094 | 9,141 | 3,324 |
Balance, shares at Dec. 29, 2012 | 106,142,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 146,664 | 146,903 | -239 | ||||
Other comprehensive income (loss) | -7,802 | -7,802 | |||||
Sale of subsidiary shares to noncontrolling interests | 0 | 0 | |||||
Dividends paid on common stock | -81,008 | -81,008 | |||||
Exercise of stock options, shares | 1,140,000 | ||||||
Exercise of stock options | 7,963 | 1 | 7,962 | ||||
Share-based compensation expense, shares) | 12,000 | ||||||
Share-based compensation expense | 7,323 | 7,323 | |||||
Repurchases of common stock | -27,963 | -27,963 | |||||
Retirement of treasury stock (shares) | -417,000 | ||||||
Retirement of treasury stock | 0 | 0 | -4,688 | 17,190 | -12,502 | ||
Reclassification to noncontrolling interests | -3,085 | -3,085 | |||||
Excess tax benefits from share-based compensation | 15,366 | 15,366 | |||||
Other | -75 | -27 | -48 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income | -360 | ||||||
Reclassification to noncontrolling interests | 3,085 | ||||||
Contributions from noncontrolling interests | 2,205 | ||||||
Balance at Dec. 28, 2013 | 4,930 | ||||||
Balance at Dec. 28, 2013 | 407,358 | 107 | 1,196,426 | -10,773 | -779,741 | 1,339 | 0 |
Balance, shares at Dec. 28, 2013 | 106,646,219 | 106,877,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 176,357 | 176,357 | 0 | ||||
Other comprehensive income (loss) | -15,316 | -15,316 | |||||
Sale of subsidiary shares to noncontrolling interests | 0 | 0 | |||||
Dividends paid on common stock | -96,775 | -96,775 | |||||
Exercise of stock options, shares | 693,000 | ||||||
Exercise of stock options | 5,120 | 1 | 5,119 | ||||
Share-based compensation expense, shares) | 26,000 | ||||||
Share-based compensation expense | 11,287 | 11,287 | |||||
Repurchases of common stock | -130,171 | -130,171 | |||||
Retirement of treasury stock (shares) | -3,142,000 | ||||||
Retirement of treasury stock | 0 | -3 | -33,170 | 140,944 | -107,771 | ||
Excess tax benefits from share-based compensation | 10,758 | 10,758 | |||||
Other | -659 | -1 | -282 | -376 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income | -794 | ||||||
Contributions from noncontrolling interests | 2,855 | ||||||
Balance at Dec. 27, 2014 | 6,991 | ||||||
Balance at Dec. 27, 2014 | $367,959 | $104 | $1,093,363 | $0 | ($711,531) | ($13,977) | $0 |
Balance, shares at Dec. 27, 2014 | 104,630,978 | 104,454,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Cash flows from operating activities: | |||
Net income including noncontrolling interests | $175,563 | $146,304 | $107,624 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 45,539 | 49,366 | 56,027 |
Amortization of deferred financing costs and original issue discount | 3,968 | 4,706 | 5,727 |
Loss on debt extinguishment and refinancing transactions | 13,735 | 5,018 | 3,963 |
Deferred income taxes | -24,639 | -13,191 | -6,946 |
Provision for (recovery of) bad debt | 2,821 | 3,484 | -542 |
Share-based compensation expense | 11,287 | 7,323 | 6,920 |
Net income of equity method investments | -14,846 | -18,370 | -22,351 |
Dividends received from equity method investments | 7,427 | 7,226 | 6,497 |
Gain on sale of joint venture | 0 | -6,320 | 0 |
Gain on sale of real estate and company-owned restaurants | -7,458 | -2,591 | -1,085 |
Other, net | 570 | -1,291 | -834 |
Change in operating assets and liabilities: | |||
Accounts, notes, and other receivables, net | -27,224 | -27,444 | 6,321 |
Other current assets | 552 | 1,879 | -1,480 |
Accounts payable | 397 | 46 | 2,804 |
Other current liabilities | 11,876 | 8,163 | 38,767 |
Liabilities of advertising funds, net | -2,785 | 4,795 | -5,688 |
Income taxes payable, net | -4,300 | -27,847 | -38,928 |
Deferred income | 5,770 | -842 | -1,491 |
Other, net | 1,070 | 1,385 | -885 |
Net cash provided by operating activities | 199,323 | 141,799 | 154,420 |
Cash flows from investing activities: | |||
Additions to property and equipment | -23,638 | -31,099 | -22,398 |
Proceeds from sale of real estate and company-owned restaurants | 14,361 | 5,387 | 2,416 |
Proceeds from sale of joint venture, net | 0 | 6,682 | 0 |
Other, net | -4,827 | -3,876 | -2,965 |
Net cash used in investing activities | -14,104 | -22,906 | -22,947 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 396,000 | ||
Repayment of long-term debt | -15,000 | -24,157 | -15,441 |
Payment of deferred financing and other debt-related costs | -9,213 | -6,157 | -5,978 |
Repurchases of common stock | -130,171 | -27,963 | -450,369 |
Dividends paid on common stock | -96,775 | -81,008 | -70,069 |
Exercise of stock options | 5,120 | 7,963 | 4,418 |
Excess tax benefits from share-based compensation | 10,758 | 15,366 | 11,978 |
Other, net | 1,924 | 1,782 | 3,859 |
Net cash used in financing activities | -233,357 | -114,174 | -125,602 |
Effect of exchange rate changes on cash and cash equivalents | -715 | -404 | 32 |
Increase (decrease) in cash and cash equivalents | -48,853 | 4,315 | 5,903 |
Cash and cash equivalents, beginning of year | 256,933 | 252,618 | 246,715 |
Cash and cash equivalents, end of year | 208,080 | 256,933 | 252,618 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 99,410 | 98,483 | 90,225 |
Cash paid for interest | 64,485 | 78,127 | 54,115 |
Noncash investing activities: | |||
Property and equipment included in accounts payable and other current liabilities | 2,383 | 1,366 | 5,244 |
Purchase of leaseholds in exchange for capital lease obligations | $1,094 | $173 | $2,818 |
Description_of_Business_and_Or
Description of Business and Organization | 12 Months Ended |
Dec. 27, 2014 | |
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 largest 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, breakfast sandwiches, 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 | 12 Months Ended | ||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Summary of Significant Accounting Policies | Summary of significant accounting policies | ||||||||||||||||||
(a) 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 fiscal years 2014, 2013, and 2012 reflect the results of operations for the 52-week periods ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. | |||||||||||||||||||
(b) Basis of presentation and consolidation | |||||||||||||||||||
The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. | |||||||||||||||||||
We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities, the advertising funds (see note 4), and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method or are otherwise consolidated. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchise entities, with the exception of those noted below. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees (see note 17(b)), and future lease payments due from franchisees (see note 11). | |||||||||||||||||||
During fiscal year 2014, the Company entered into a temporary management agreement (“TMA”), under which the Company manages the operations of ten restaurants owned by a franchisee for a period up to two years. Based on the terms of the TMA, the Company has determined that the related franchisee is a VIE in which the Company is the primary beneficiary, and therefore, has consolidated the results of this franchisee. As of December 27, 2014, the consolidated balance sheet included $663 thousand of property and equipment, net, $1.1 million of goodwill, $1.4 million of long-term debt, and $355 thousand of other net liabilities for the franchise entity. | |||||||||||||||||||
The Company holds a 51% interest in a limited partnership that owns and operates Dunkin' Donuts restaurants in the Dallas, Texas area. The Company possesses control of this entity and, therefore, consolidates the results of the limited partnership. During fiscal year 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 in fiscal year 2013 to temporary equity (between liabilities and stockholders’ equity) in the consolidated balance sheets. The net loss and comprehensive loss attributable to the noncontrolling interest are presented separately in the consolidated statements of operations and comprehensive income, respectively. As of December 27, 2014, the consolidated balance sheets included $2.9 million of cash and cash equivalents and $10.9 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership. | |||||||||||||||||||
(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 financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) income taxes, (d) share-based compensation, (e) lease accounting estimates, (f) gift certificate breakage, and (g) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||||
(d) Cash and cash equivalents and restricted cash | |||||||||||||||||||
The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 27, 2014 and December 28, 2013, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. | |||||||||||||||||||
Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 27, 2014 and December 28, 2013 were $136.2 million and $134.5 million, respectively. | |||||||||||||||||||
(e) 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 counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $3.1 million and $5.3 million as of December 27, 2014 and December 28, 2013, 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 December 27, 2014 and December 28, 2013 are summarized as follows (in thousands): | |||||||||||||||||||
27-Dec-14 | 28-Dec-13 | ||||||||||||||||||
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 | $ | — | — | — | 1,012 | — | 1,012 | ||||||||||||
Company-owned life insurance | — | 2,975 | 2,975 | — | — | — | |||||||||||||
Interest rate swaps | — | — | — | — | 10,221 | 10,221 | |||||||||||||
Total assets | $ | — | 2,975 | 2,975 | 1,012 | 10,221 | 11,233 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
Total liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees (see note 18). 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 assets, which may include, company-owned life insurance policies and mutual 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 any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The changes in the fair value of any mutual funds were derived using quoted prices in active markets for the specific funds. As such, the mutual funds were classified within Level 1, as defined under U.S. GAAP. | |||||||||||||||||||
The Company used readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives included consideration of credit risk in the valuation. The Company used a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA were 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 was not a significant component of the fair value of the interest rate swaps as of December 28, 2013, it was not considered a significant input and the derivatives were classified as Level 2. | |||||||||||||||||||
The carrying value and estimated fair value of long-term debt as of December 27, 2014 and December 28, 2013 were as follows (in thousands): | |||||||||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||||||||
Financial liabilities | Carrying | Estimated | Carrying | Estimated | |||||||||||||||
value | fair value | value | fair value | ||||||||||||||||
Term loans | $ | 1,810,933 | 1,778,066 | 1,823,609 | 1,836,212 | ||||||||||||||
The estimated fair value of our term loans is 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. | |||||||||||||||||||
(f) Inventories | |||||||||||||||||||
Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. Inventories are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets. | |||||||||||||||||||
(g) Assets held for sale | |||||||||||||||||||
Assets held for sale primarily represent costs incurred by the Company for store equipment and leasehold improvements constructed for sale to franchisees, as well as restaurants formerly operated by franchisees waiting to be resold. The value of such restaurants and related assets is reduced to reflect net recoverable values, with such reductions recorded to general and administrative expenses, net in the consolidated statements of operations. Generally, internal specialists estimate the amount to be recovered from the sale of such assets based on their knowledge of the (a) market in which the store is located, (b) results of the Company’s previous efforts to dispose of similar assets, and (c) current economic conditions. The actual cost of such assets held for sale is affected by specific factors such as the nature, age, location, and condition of the assets, as well as the economic environment and inflation. | |||||||||||||||||||
We classify restaurants and their related assets as held for sale and suspend depreciation and amortization when (a) we make a decision to refranchise or sell the property, (b) the stores are available for immediate sale, (c) we have begun an active program to locate a buyer, (d) significant changes to the plan of sale are not likely, and (e) the sale is probable within one year. Assets held for sale are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets. | |||||||||||||||||||
(h) Property and equipment | |||||||||||||||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows: | |||||||||||||||||||
Years | |||||||||||||||||||
Buildings | 20 – 35 | ||||||||||||||||||
Leasehold improvements | 5 – 20 | ||||||||||||||||||
Store, production, and other equipment and software | 3 – 10 | ||||||||||||||||||
Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated. | |||||||||||||||||||
(i) Leases | |||||||||||||||||||
When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term. | |||||||||||||||||||
We record rent expense and rent income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rent income and rent expense as they are earned or accrued, respectively. | |||||||||||||||||||
We occasionally provide to our sublessees, or receive from our landlords, tenant improvement dollars. Tenant improvement dollars paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement dollars from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively. | |||||||||||||||||||
Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and charged to operations at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(j)). | |||||||||||||||||||
(j) Impairment of long-lived assets | |||||||||||||||||||
Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, by independent third-party valuation specialists, depending on the nature of the assets or asset group. | |||||||||||||||||||
(k) Equity method investments | |||||||||||||||||||
The Company's equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“BR Japan”), BR-Korea Co., Ltd. (“BR Korea”), Coffee Alliance, S.L. (“Spain JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. As a result of the acquisition of the Company by three private equity firms on March 1, 2006 (“BCT Acquisition”), the Company has recorded a step-up in the basis of our investment in BR Japan. The basis difference is comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill. The franchise rights and related tax liabilities are amortized in a manner that reflects the estimated benefits from the use of the intangible asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives. | |||||||||||||||||||
(l) Goodwill and other intangible assets | |||||||||||||||||||
Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them. | |||||||||||||||||||
We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired. | |||||||||||||||||||
Other intangible assets consist primarily of franchise and international license rights (“franchise rights”), ice cream distribution and territorial franchise agreement license rights (“license rights”), and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights, license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method. | |||||||||||||||||||
Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 17 years. | |||||||||||||||||||
Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(j)), or when such license or lease agreements are reduced or terminated. | |||||||||||||||||||
(m) Contingencies | |||||||||||||||||||
The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred. | |||||||||||||||||||
(n) Foreign currency translation | |||||||||||||||||||
We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of comprehensive income and stockholders’ equity, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, Spain, China, and Brazil. Transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations. | |||||||||||||||||||
(o) Revenue recognition | |||||||||||||||||||
Franchise fees and royalty income | |||||||||||||||||||
Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. Our franchise agreements and SDAs typically require the franchisee to pay an initial nonrefundable fee and continuing fees, or royalty income, based upon a percentage of sales. The franchisee will typically pay us a renewal fee if we approve a renewal of the franchise agreement. Such fees are paid by franchisees to obtain the rights associated with these franchise agreements or SDAs. Initial franchise fee revenue is recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned, with deferred amounts expected to be recognized as revenue within one year classified as current deferred income in the consolidated balance sheets. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise agreement, SDA, or renewal agreement and, when appropriate, records the costs of such programs as reductions of revenue. | |||||||||||||||||||
For our international business, we sell master territory and/or license agreements that typically allow the master licensee to either act as the franchisee or to sub-franchise to other operators. Master license and territory fees are generally recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the first restaurant or as stores are opened, depending on the specific terms of the agreement. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which generally occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee or licensee becomes effective. | |||||||||||||||||||
Rental income | |||||||||||||||||||
Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid (see note 2(i)). The difference between the straight-line rent amounts and amounts receivable under the leases is recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Deferred contingent rentals are recorded as deferred income in current liabilities in the consolidated balance sheets. | |||||||||||||||||||
Sales of ice cream products | |||||||||||||||||||
We distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international locations. Revenue from the sale of ice cream products is recognized when title and risk of loss transfers to the buyer, which was generally upon shipment through November 2012. Beginning in December 2012, title and risk of loss generally transfers to the buyer upon delivery. | |||||||||||||||||||
Sales at company-owned restaurants | |||||||||||||||||||
Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes. | |||||||||||||||||||
Other revenues | |||||||||||||||||||
Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of our restaurants to new or existing franchisees. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity, and we are satisfied that the buyer can meet its financial obligations to us. If the criteria for gain recognition are not met, we defer the gain to the extent we have any remaining financial exposure in connection with the sale transaction. Deferred gains are recognized when the gain recognition criteria are met. | |||||||||||||||||||
(p) Allowance for doubtful accounts | |||||||||||||||||||
We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, lease, and licensing fee receivables. | |||||||||||||||||||
(q) Share-based payment | |||||||||||||||||||
We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. | |||||||||||||||||||
(r) Income taxes | |||||||||||||||||||
Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets. | |||||||||||||||||||
A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes. | |||||||||||||||||||
(s) Comprehensive income | |||||||||||||||||||
Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, gains and losses on interest rate swaps, and unrealized pension gains and losses, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented. | |||||||||||||||||||
(t) Deferred financing costs | |||||||||||||||||||
Deferred financing costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8). As of December 27, 2014 and December 28, 2013, deferred financing costs of $11.5 million and $19.2 million, respectively, are included in other assets in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt using the effective interest rate method. | |||||||||||||||||||
(u) Derivative instruments and hedging activities | |||||||||||||||||||
The Company used derivative instruments to hedge interest rate risks which were terminated on December 23, 2014. These derivative contracts were entered into with financial institutions. The Company did not use derivative instruments for trading purposes and we had procedures in place to monitor and control their use. | |||||||||||||||||||
We recorded all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that were designated and qualified as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments was reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge was recorded in the consolidated statements of operations immediately. See note 9 for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information. | |||||||||||||||||||
(v) Gift card/certificate breakage | |||||||||||||||||||
The Company and our franchisees sell gift cards that are redeemable for product in our Dunkin' Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. | |||||||||||||||||||
There are no expiration dates on our gift cards, and we do not charge any service fees. While our franchisees continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, we may recognize income from unredeemed gift cards (“breakage income”) if they are not subject to unclaimed property laws. Based on redemption data available, breakage income for gift cards was generally recognized five years from the last date of activity on the card through the first quarter of fiscal year 2013. 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 on Dunkin' Donuts gift cards is now 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 incurred. Any incremental breakage that exceeds gift card program costs has been committed to franchisees 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 (see note 10). During fiscal year 2014, the Company revised the estimated breakage rates based on historical redemption patterns related to unredeemed Dunkin’ Donuts gift cards. This change in estimated breakage rates had no impact on breakage income recognized in fiscal year 2014, but resulted in a decrease in the gift card/certificate liability and a corresponding increase in the gift card breakage liability. | |||||||||||||||||||
For fiscal years 2014, 2013, and 2012, total breakage income recognized on gift cards, as well as historical gift certificate programs, was $8.5 million, $10.2 million, and $7.9 million, respectively, and is recorded as a reduction to general and administrative expenses, net. Breakage income for fiscal year 2013 includes a $5.4 million recovery of historical Dunkin' Donuts gift card program costs incurred prior to fiscal year 2013. Breakage income for fiscal year 2012 includes $3.5 million related to historical Baskin-Robbins gift certificates as a result of shifting to gift cards, and represents the balance of gift certificates for which the Company believes the likelihood of redemption by the customer is remote based on historical redemption patterns. | |||||||||||||||||||
(w) 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 December 27, 2014 and December 28, 2013, one master licensee, including its majority-owned subsidiaries, accounted for approximately 19% and 17%, respectively, of total accounts and notes receivable, which was due primarily to the timing of orders and shipments of ice cream to the master licensee. For fiscal year 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 10% of total revenues. No individual franchisee or master licensee accounted for more than 10% of total revenues for fiscal years 2013 or 2012. | |||||||||||||||||||
(x) Recent accounting pronouncements | |||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. This guidance is effective for the Company in fiscal year 2017 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact the adoption of this new standard will have on the Company's accounting policies, consolidated financial statements, and related disclosures, and has not yet selected a transition method. | |||||||||||||||||||
(y) Reclassifications | |||||||||||||||||||
The Company has revised the presentation of certain income generating transactions, including gains on the sale of real estate and company-owned restaurants, that historically were recorded within general and administrative expense, net in the consolidated statements of operations. Income from these transactions totaling $2.8 million and $2.3 million have been reclassified into other operating income, net, for the fiscal years ended December 28, 2013 and December 29, 2012, respectively, in the consolidated statements of operations to conform to the current year presentation. There was no impact to total revenues, operating income, income before income taxes, or net income as a result of these reclassifications. | |||||||||||||||||||
The Company has also revised the presentation of certain asset captions within the consolidated balance sheets to conform to the current period presentation, including combining 'assets held for sale' with 'prepaid expenses and other current assets' and combining 'restricted cash' with 'other assets'. The revisions had no impact on total current assets or total assets. | |||||||||||||||||||
Additionally, the Company has revised the presentation of certain captions for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The revisions had no impact on net cash provided by (used in) operating, investing, or financing activities. | |||||||||||||||||||
(z) Subsequent events | |||||||||||||||||||
Subsequent events have been evaluated up through the date that these consolidated financial statements were filed. |
Franchise_Fees_and_Royalty_Inc
Franchise Fees and Royalty Income | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
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): | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Royalty income | $ | 438,074 | 411,428 | 385,713 | ||||||
Initial franchise fees and renewal income | 44,255 | 42,548 | 33,227 | |||||||
Total franchise fees and royalty income | $ | 482,329 | 453,976 | 418,940 | ||||||
The changes in franchised and company-owned or company-operated points of distribution were as follows: | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Systemwide points of distribution: | ||||||||||
Franchised points of distribution in operation—beginning of year | 18,122 | 17,333 | 16,565 | |||||||
Franchised points of distribution - opened | 1,442 | 1,388 | 1,470 | |||||||
Franchised points of distribution - closed | (744 | ) | (600 | ) | (701 | ) | ||||
Net transfers from (to) company-owned or company-operated points of distribution | 1 | 1 | (1 | ) | ||||||
Franchised points of distribution in operation—end of year | 18,821 | 18,122 | 17,333 | |||||||
Company-owned or company-operated points of distribution—end of year | 41 | 36 | 35 | |||||||
Total systemwide points of distribution—end of year | 18,862 | 18,158 | 17,368 | |||||||
Advertising_Funds
Advertising Funds | 12 Months Ended |
Dec. 27, 2014 | |
Advertising Funds [Abstract] | |
Advertising Funds | Advertising funds |
On behalf of certain Dunkin’ Donuts and Baskin-Robbins advertising funds, the Company collects a percentage, which is generally 5%, of gross retail sales from Dunkin’ Donuts and Baskin-Robbins franchisees to be used for various forms of advertising for each brand. In most of our international markets, franchisees manage their own advertising expenditures, which are not included in the advertising fund results. | |
The Company administers and directs the development of all advertising and promotion programs in the advertising funds for which it collects advertising fees, in accordance with the provisions of our franchise agreements. The Company acts as, in substance, an agent with regard to these advertising contributions. We consolidate and report all assets and liabilities held by these advertising funds as restricted assets of advertising funds and liabilities of advertising funds within current assets and current liabilities, respectively, in the consolidated balance sheets. The assets and liabilities held by these advertising funds consist primarily of receivables, accrued expenses, other liabilities, and any cumulative surplus or deficit related specifically to the advertising funds. The revenues, expenses, and cash flows of the advertising funds are not included in the Company’s consolidated statements of operations or consolidated statements of cash flows because the Company does not have complete discretion over the usage of the funds. Contributions to these advertising funds are restricted to advertising, product development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of each of the brands. | |
At December 27, 2014 and December 28, 2013, the Company had a net payable of $13.8 million and $17.6 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, as well as share-based compensation expense for employees that provide services directly to the advertising funds. Management fees totaled $7.6 million, $5.5 million, and $5.6 million for fiscal years 2014, 2013, and 2012, respectively. Such management fees are included 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 $2.1 million, $2.4 million, and $863 thousand for fiscal years 2014, 2013, and 2012, respectively. Additionally, the Company made net contributions to the advertising funds based on retail sales as owner and operator of company-owned restaurants of $872 thousand, $1.0 million, and $808 thousand for fiscal years 2014, 2013, and 2012, respectively, which are included in company-owned restaurant expenses in the consolidated statements of operations. During fiscal years 2014 and 2013, the Company also made $5.2 million and $5.9 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 (see note 2(v) and note 10); no such contributions were made in fiscal year 2012. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||
Dec. 27, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property and Equipment | Property and equipment | ||||||
Property and equipment at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | |||||||
December 27, 2014 | December 28, 2013 | ||||||
Land | $ | 33,927 | 34,052 | ||||
Buildings | 49,499 | 47,946 | |||||
Leasehold improvements | 147,996 | 154,491 | |||||
Store, production, and other equipment and software | 49,318 | 43,124 | |||||
Construction in progress | 5,736 | 9,079 | |||||
Property and equipment, gross | 286,476 | 288,692 | |||||
Accumulated depreciation | (104,415 | ) | (105,834 | ) | |||
Property and equipment, net | $ | 182,061 | 182,858 | ||||
The Company recognized impairment charges on leasehold improvements, typically due to termination of the underlying lease agreement, and other corporate-held assets of $1.2 million, $119 thousand, and $319 thousand during fiscal years 2014, 2013, and 2012, respectively, which are included in long-lived asset impairment charges in the consolidated statements of operations. |
Equity_method_investments
Equity method investments | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Equity method investments | The Company’s ownership interests in its equity method investments as of December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||
Entity | Ownership | ||||||||||||
BR Japan | 43.30% | ||||||||||||
BR Korea | 33.30% | ||||||||||||
Spain JV | 33.30% | ||||||||||||
Australia JV | 20.00% | ||||||||||||
In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.3 million, net of transaction costs, which is included in other operating income in the consolidated statements of operations for the fiscal year 2013. The gain consisted of net proceeds of $6.5 million, offset by the carrying value of the business included in the sale, which totaled $216 thousand. The Company retained the remaining 20% ownership of the Australia JV, and therefore accounts for the Australia JV in accordance with the equity method. | |||||||||||||
Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands): | |||||||||||||
December 27, | December 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 265,227 | $ | 261,546 | |||||||||
Current liabilities | 102,920 | 106,280 | |||||||||||
Working capital | 162,307 | 155,266 | |||||||||||
Property, plant, and equipment, net | 138,325 | 139,378 | |||||||||||
Other assets | 142,955 | 173,491 | |||||||||||
Long-term liabilities | 45,684 | 52,389 | |||||||||||
Equity of equity method investments | $ | 397,903 | 415,746 | ||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 669,416 | 673,537 | 687,676 | |||||||||
Net income | 39,835 | 51,407 | 51,046 | ||||||||||
The comparison between the carrying value of our investments in BR Japan and BR Korea and the underlying equity in net assets of those investments is presented in the table below (in thousands): | |||||||||||||
BR Japan | BR Korea | ||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Carrying value of investment | $ | 66,820 | 79,472 | 97,458 | 91,121 | ||||||||
Underlying equity in net assets of investment | 37,941 | 45,682 | 103,589 | 100,766 | |||||||||
Carrying value in excess of (less than) the underlying equity in net assets(a) | $ | 28,879 | 33,790 | (6,131 | ) | (9,645 | ) | ||||||
(a) | The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011. | ||||||||||||
The carrying values of our investments in the Spain JV and the Australia JV were not material for any period presented. | |||||||||||||
The aggregate fair value of the Company's investment in BR Japan, based on its quoted market price on the last business day of the year, is approximately $144.3 million. No quoted market prices are available for the Company's other equity method investments. | |||||||||||||
Net income of equity method investments in the consolidated statements of operations for fiscal years 2014, 2013, and 2012 includes $406 thousand, $505 thousand, and $689 thousand, respectively, of net expense related to the amortization of intangible franchise rights and related deferred tax liabilities of BR Japan noted above. As required under the equity method of accounting, such net expense is recorded in the consolidated statements of operations directly to net income of equity method investments and not shown as a component of amortization expense. | |||||||||||||
During the third quarter of 2013, the Company fully reserved all outstanding notes and accounts receivable totaling $2.8 million, and fully impaired its equity investment in the Spain JV of $873 thousand. During fiscal year 2014, the Company reduced reserves on the notes receivable in the amount of $441 thousand based on expected and actual payments received. The reserves and recoveries 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. | |||||||||||||
In fiscal year 2011, the Company recorded an impairment of its investment in BR Korea of $19.8 million. The impairment charge was allocated to the underlying goodwill, intangible assets, and long-lived assets of BR Korea, and therefore resulted in a reduction in depreciation and amortization, net of tax, of $1.1 million, $2.0 million, and $3.6 million, in fiscal years 2014, 2013, and 2012, respectively, which is recorded within net income of equity method investments in the consolidated statements of operations. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and other intangible assets | ||||||||||||||||||||||||||||||||||||
The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands): | |||||||||||||||||||||||||||||||||||||
Dunkin’ Donuts U.S. | Dunkin’ Donuts International | Baskin-Robbins International | Total | ||||||||||||||||||||||||||||||||||
Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | ||||||||||||||||||||||||||
Balances at December 29, 2012 | $ | 1,152,035 | (270,441 | ) | 881,594 | 10,306 | — | 10,306 | 24,037 | (24,037 | ) | — | 1,186,378 | (294,478 | ) | 891,900 | |||||||||||||||||||||
Goodwill disposed | (260 | ) | — | (260 | ) | — | — | — | — | — | — | (260 | ) | — | (260 | ) | |||||||||||||||||||||
Effects of foreign currency adjustments | — | — | — | (42 | ) | — | (42 | ) | — | — | — | (42 | ) | — | (42 | ) | |||||||||||||||||||||
Balances at December 28, 2013 | 1,151,775 | (270,441 | ) | 881,334 | 10,264 | — | 10,264 | 24,037 | (24,037 | ) | — | 1,186,076 | (294,478 | ) | 891,598 | ||||||||||||||||||||||
Goodwill acquired | 1,072 | — | 1,072 | — | — | — | — | — | — | 1,072 | — | 1,072 | |||||||||||||||||||||||||
Goodwill disposed | (1,248 | ) | — | (1,248 | ) | — | — | — | — | — | — | (1,248 | ) | — | (1,248 | ) | |||||||||||||||||||||
Effects of foreign currency adjustments | — | — | — | (52 | ) | — | (52 | ) | — | — | — | (52 | ) | — | (52 | ) | |||||||||||||||||||||
Balances at December 27, 2014 | $ | 1,151,599 | (270,441 | ) | 881,158 | 10,212 | — | 10,212 | 24,037 | (24,037 | ) | — | 1,185,848 | (294,478 | ) | 891,370 | |||||||||||||||||||||
The goodwill acquired and disposed during fiscal years 2014 and 2013 is related to the acquisition, consolidation, and sale of certain company-owned or operated points of distribution. | |||||||||||||||||||||||||||||||||||||
Other intangible assets at December 27, 2014 consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||||||||||||||
average | carrying | amortization | carrying | ||||||||||||||||||||||||||||||||||
amortization | amount | amount | |||||||||||||||||||||||||||||||||||
period | |||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Definite-lived intangibles: | |||||||||||||||||||||||||||||||||||||
Franchise rights | 20 | $ | 382,520 | (179,481 | ) | 203,039 | |||||||||||||||||||||||||||||||
Favorable operating leases acquired | 17 | 67,119 | (35,711 | ) | 31,408 | ||||||||||||||||||||||||||||||||
License rights | 10 | 6,230 | (5,850 | ) | 380 | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible: | |||||||||||||||||||||||||||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||||||||||||||||||||||||||
$ | 1,646,839 | (221,042 | ) | 1,425,797 | |||||||||||||||||||||||||||||||||
Other intangible assets at December 28, 2013 consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||||||||||||||
average | carrying | amortization | carrying | ||||||||||||||||||||||||||||||||||
amortization | amount | amount | |||||||||||||||||||||||||||||||||||
period | |||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Definite-lived intangibles: | |||||||||||||||||||||||||||||||||||||
Franchise rights | 20 | $ | 383,465 | (159,719 | ) | 223,746 | |||||||||||||||||||||||||||||||
Favorable operating leases acquired | 16 | 71,788 | (35,653 | ) | 36,135 | ||||||||||||||||||||||||||||||||
License rights | 10 | 6,230 | (4,876 | ) | 1,354 | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible: | |||||||||||||||||||||||||||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||||||||||||||||||||||||||
$ | 1,652,453 | (200,248 | ) | 1,452,205 | |||||||||||||||||||||||||||||||||
The changes in the gross carrying amount of other intangible assets and weighted average amortization period from December 28, 2013 to December 27, 2014 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, net of accumulated amortization, totaled $323 thousand, $444 thousand, and $959 thousand, for fiscal years 2014, 2013, and 2012, respectively, and is included within long-lived asset impairment charges in the consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||
Total estimated amortization expense for other intangible assets for fiscal years 2015 through 2019 is as follows (in thousands): | |||||||||||||||||||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||||||||||||||||||
2015 | $ | 24,943 | |||||||||||||||||||||||||||||||||||
2016 | 22,108 | ||||||||||||||||||||||||||||||||||||
2017 | 21,353 | ||||||||||||||||||||||||||||||||||||
2018 | 21,209 | ||||||||||||||||||||||||||||||||||||
2019 | 20,774 | ||||||||||||||||||||||||||||||||||||
Debt
Debt | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Debt | Debt | |||||||||
Debt at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | ||||||||||
December 27, | December 28, | |||||||||
2014 | 2013 | |||||||||
Term loans | $ | 1,809,554 | 1,823,609 | |||||||
VIE debt (see note 2(b)) | 1,379 | — | ||||||||
Total debt | 1,810,933 | 1,823,609 | ||||||||
Less current portion of long-term debt | 3,852 | 5,000 | ||||||||
Total long-term debt | $ | 1,807,081 | 1,818,609 | |||||||
Senior credit facility | ||||||||||
In February 2014, Dunkin' Brands, Inc. (“DBI”), a subsidiary of DBGI, amended its senior credit facility, resulting in a reduction of interest rates. As a result of the amendment, the senior credit facility consisted of $1.38 billion in term loans due February 2021 (“2021 Term Loans”), $450.0 million in term loans due September 2017 (“2017 Term Loans”), and a $100.0 million revolving credit facility that matures February 2019. | ||||||||||
As of December 27, 2014, $1.37 billion and $445.0 million of principal was outstanding on the 2021 Term Loans and the 2017 Term Loans, respectively. As of December 28, 2013, $1.83 billion of principal term loans were outstanding. As of December 27, 2014 and December 28, 2013, $2.9 million and $3.0 million, respectively, of letters of credit were outstanding against the revolving credit facility. There were no amounts drawn down on these letters of credit. | ||||||||||
The 2021 Term Loans bore 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) a prime rate, (c) LIBOR plus 1.0%, and (d) 1.75% or (2) LIBOR provided that LIBOR was not lower than 0.75%. The applicable margin under the term loan facility was 1.50% for loans based upon the base rate and 2.50% for loans based upon LIBOR. | ||||||||||
The 2017 Term Loans bore 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) LIBOR plus 1.0%, or (2) LIBOR. The applicable margin under the term loan facility was 1.50% for loans based upon the base rate and 2.50% for loans based upon LIBOR. | ||||||||||
The effective interest rate for term loans, including the amortization of original issue discount and deferred financing costs, was 3.5% and 2.8% for the 2021 Term Loans and 2017 Term Loans, respectively, at December 27, 2014. | ||||||||||
Subsequent to the amendment, borrowings under the revolving credit facility bore 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) LIBOR plus 1.0%, or (2) LIBOR. The applicable margin under the revolving credit facility was 1.25% for loans based upon the base rate and 2.25% for loans based upon LIBOR. In addition, we were 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 2.25%. | ||||||||||
Principal payments were required to be made on the 2017 Term Loans equal to $4.5 million per calendar year, payable in quarterly installments beginning June 2014 through June 2017. Principal payments were required to be made on the 2021 Term Loans equal to approximately $13.8 million per calendar year, payable in quarterly installments beginning June 2015 through December 2020. The final scheduled principal payments on the outstanding borrowings under the 2017 Term Loans and 2021 Term Loans were due in September 2017 and February 2021, respectively. Additionally, following the end of each fiscal year, the Company was 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), was no greater than 4.75x, no excess cash flow payments were required. If DBI’s leverage ratio was greater than 5.50x, the Company was required to prepay an amount equal to 50% of excess cash flow. The excess cash flow payments were permitted to be applied to required principal payments. During fiscal year 2014, the Company made total principal payments of $15.0 million. Considering the voluntary prepayments made, principal payments of $3.6 million would be required in the next twelve months as of December 27, 2014, though the Company may elect to make voluntary payments. Other events and transactions, such as certain asset sales and incurrence of debt, could have triggered additional mandatory prepayments. | ||||||||||
The senior credit facility contained certain financial and nonfinancial covenants, which included restrictions on liens, investments, additional indebtedness, asset sales, certain dividend payments, and certain transactions with affiliates. At December 27, 2014 and December 28, 2013, the Company was in compliance with all of its covenants under the senior credit facility. | ||||||||||
Certain of the Company’s wholly owned domestic subsidiaries guaranteed the senior credit facility. All obligations under the senior credit facility, and the guarantees of those obligations, were secured, subject to certain exceptions, by substantially all assets of DBI and the subsidiary guarantors. | ||||||||||
In August 2012, DBI amended its senior credit facility to provide for additional term loan borrowings of $400.0 million. The additional borrowings were issued with an original issue discount of $4.0 million, resulting in net cash proceeds of $396.0 million. The proceeds were used to fund a repurchase of common stock from certain shareholders (see note 13(c)). In connection with the amendment, the Company recorded costs of $4.0 million, which consisted primarily of fees paid to third parties, within loss on debt extinguishment and refinancing transactions in the consolidated statements of operations. | ||||||||||
In February 2013, the Company 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. 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. | ||||||||||
In connection with the amendment in February 2014, certain lenders, holding $684.7 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 2014, the Company recorded a loss on debt extinguishment and refinancing transactions of $13.7 million, including $10.5 million related to the write-off of original issuance discount and deferred financing costs and $3.2 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 this amendment were $1.2 million. | ||||||||||
Cumulative debt issuance costs incurred and capitalized in relation to the senior credit facility were $36.2 million, including costs incurred and capitalized in connection with all refinancing transactions. The term loans, including additional term loan borrowings, were issued with an original issue discount of $19.5 million. Total amortization of original issue discount and debt issuance costs related to the senior credit facility was $4.0 million, $4.7 million, and $5.7 million for fiscal years 2014, 2013, and 2012, respectively, which is included in interest expense in the consolidated statements of operations. | ||||||||||
January 2015 Refinancing | ||||||||||
On January 26, 2015, DB Master Finance LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of DBGI, entered into a base indenture and a related supplemental indenture (collectively, the “Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2015-1 3.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) with an initial principal amount of $750.0 million and Series 2015-1 3.980% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “Class A-2 Notes”) with an initial principal amount of $1.75 billion. In addition, the Master Issuer also issued Series 2015-1 Variable Funding Senior Secured Notes, Class A-1 (the “Variable Funding Notes” and, together with the Class A-2 Notes, the “Notes”), which allows for the issuance of up to $100.0 million of Variable Funding Notes and certain other credit instruments, including letters of credit. The Notes were issued in a securitization transaction pursuant to which most of the Company’s domestic and certain of its foreign revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Notes and that have pledged substantially all of their assets to secure the Notes. | ||||||||||
The legal final maturity date of the Class A-2 Notes is in February 2045, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Class A-2-I Notes will be repaid in February 2019 and the Class A-2-II Notes will be repaid in February 2022. It is anticipated that the principal and interest on the Variable Funding Notes will be repaid in full on or prior to February 2020, subject to two additional one-year extensions. | ||||||||||
A portion of the net proceeds of the Notes was used to repay the remaining $1.37 billion and $445.0 million of principal outstanding on the 2021 Term Loans and the 2017 Term Loans, respectively. The additional net proceeds are being used for general corporate purposes, including a return of capital to the Company’s shareholders. | ||||||||||
Maturities of long-term debt | ||||||||||
Considering the January 2015 refinancing, and assuming repayment by the anticipated repayment dates, the aggregate contractual principal payments of the Class A-2 Notes for 2015 through 2019 are as follows (in thousands): | ||||||||||
Class A-2-I Notes | Class A-2-II Notes | Total | ||||||||
2015 | $ | 5,625 | 13,125 | 18,750 | ||||||
2016 | 7,500 | 17,500 | 25,000 | |||||||
2017 | 7,500 | 17,500 | 25,000 | |||||||
2018 | 7,500 | 17,500 | 25,000 | |||||||
2019 | 721,875 | 17,500 | 739,375 | |||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Transactions | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
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 have historically consisted solely of interest rate swaps. The Company's risk management objective and strategy with respect to the interest rate swaps was 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 the designated benchmark interest rate being hedged, through November 2017. The notional value of the swaps totaled $900.0 million, and the Company was 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 through the date of the February 2014 interest rate swap amendment (see below). In exchange, the Company received interest on the notional amount at a variable rate based on a three-month LIBOR spot rate, subject to a 1.0% floor. The swaps were designated as hedging instruments and were classified as cash flow hedges. | |||||||||||||
The swaps are recognized on the Company's consolidated balance sheets at fair value and classified based on the instruments' maturity dates. There is no offsetting of these financial instruments on the consolidated balance sheets. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (loss) and/or current earnings if there is ineffectiveness of the derivative instruments during the period. | |||||||||||||
As a result of the February 2014 amendment to the senior credit facility (see note 8), the Company amended the interest rate swap agreements to align the embedded floors with the amended term loans. As a result of the amendments to the interest rate swap agreements, the Company was required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.22%. In exchange, the Company received interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a floor of 0.75%, resulting in a total interest rate of approximately 3.72% on the hedged amount when considering the applicable margin in effect as of the swaps termination date. There was no change to the term and the notional amount of the term loan borrowings being hedged of $900.0 million as a result of the amendment. As of the date of the amendment, a pre-tax gain of $5.8 million was recorded in accumulated other comprehensive income, which will be amortized on a straight-line basis to interest expense in the consolidated statements of operations through the maturity date of the swaps. During fiscal year 2014, amortization of $1.4 million was recorded as a reduction of interest expense in the consolidated statements of operations. | |||||||||||||
Effective December 23, 2014, the Company terminated all interest rate swap agreements with its counterparties. The total fair value of the interest rate swaps at the termination date was $6.3 million, excluding accrued interest owed to the counterparties of $1.0 million. The Company received cash proceeds, net of accrued interest, of $3.6 million in fiscal year 2014 and the remaining $1.7 million was included in notes and other receivables, net as of December 27, 2014. Upon termination, cash flow hedge accounting was discontinued and an additional pre-tax gain of $1.8 million was recorded in accumulated other comprehensive income (loss), which will be amortized on a straight-line basis to interest expense in the consolidated statements of operations through the maturity date of the swaps. | |||||||||||||
As of December 27, 2014, a pre-tax gain of $6.2 million was recorded in accumulated other comprehensive income (loss), including the gain related to both the February 2014 amendment and December 2014 termination. During the next twelve months, the Company estimates that $2.1 million will be reclassified from accumulated other comprehensive income (loss) as a reduction of interest expense. | |||||||||||||
The fair values of derivative instruments consisted of the following (in thousands): | |||||||||||||
December 27, | December 28, | Consolidated balance sheet classification | |||||||||||
2014 | 2013 | ||||||||||||
Interest rate swaps - asset | $ | — | 10,221 | Other assets | |||||||||
Total fair values of derivative instruments - asset | $ | — | 10,221 | ||||||||||
The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2014: | |||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | (8,085 | ) | (4,108 | ) | Interest expense | (3,977 | ) | |||||
Income tax effect | 3,269 | 1,661 | Provision for income taxes | 1,608 | |||||||||
Net of income taxes | $ | (4,816 | ) | (2,447 | ) | (2,369 | ) | ||||||
The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2013: | |||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | 9,648 | (3,382 | ) | Interest expense | 13,030 | |||||||
Income tax effect | (3,909 | ) | 1,381 | Provision for income taxes | (5,290 | ) | |||||||
Net of income taxes | $ | 5,739 | (2,001 | ) | 7,740 | ||||||||
The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2012: | |||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | (3,673 | ) | (864 | ) | Interest expense | (2,809 | ) | |||||
Income tax effect | 1,509 | 355 | Provision for income taxes | 1,154 | |||||||||
Net of income taxes | $ | (2,164 | ) | (509 | ) | (1,655 | ) | ||||||
There was not a material amount of ineffectiveness on the interest rate swaps since inception, and therefore, ineffectiveness did not have a material impact on the consolidated statements of operations for fiscal years 2014, 2013, and 2012. Prior to the termination, interest was settled quarterly on a net basis with each counterparty. As of December 28, 2013, $836 thousand of interest expense related to interest rate swaps is accrued in other current liabilities in the consolidated balance sheets. There was no interest accrued as of December 27, 2014. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||
Dec. 27, 2014 | |||||||
Other Liabilities, Current [Abstract] | |||||||
Other Current Liabilities | Other current liabilities | ||||||
Other current liabilities at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | |||||||
December 27, | December 28, | ||||||
2014 | 2013 | ||||||
Gift card/certificate liability | $ | 151,127 | 139,721 | ||||
Gift card breakage liability | 25,893 | 14,093 | |||||
Accrued salary and benefits | 21,632 | 26,713 | |||||
Accrued legal liabilities (see note 17(d)) | 24,648 | 26,633 | |||||
Accrued interest | 8,351 | 9,999 | |||||
Accrued professional costs | 9,381 | 2,938 | |||||
Other | 17,860 | 28,821 | |||||
Total other current liabilities | $ | 258,892 | 248,918 | ||||
Leases
Leases | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Leases [Abstract] | ||||||||||||||
Leases | Leases | |||||||||||||
The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to others. Many of these leases and subleases provide for future rent escalation and renewal options. In addition, contingent rentals, determined as a percentage of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of the sublease agreements. The Company also leases certain office equipment and a fleet of automobiles under noncancelable operating leases. Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands): | ||||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Leased property under capital leases (included in property and equipment) | $ | 8,982 | 7,888 | |||||||||||
Accumulated depreciation | (2,872 | ) | (2,326 | ) | ||||||||||
Net leased property under capital leases | $ | 6,110 | 5,562 | |||||||||||
Capital lease obligations: | ||||||||||||||
Current | $ | 506 | 432 | |||||||||||
Long-term | 7,575 | 6,996 | ||||||||||||
Total capital lease obligations | $ | 8,081 | 7,428 | |||||||||||
Capital lease obligations exclude that portion of the minimum lease payments attributable to land, which are classified separately as operating leases. Interest expense associated with the capital lease obligations is computed using the incremental borrowing rate at the time the lease is entered into and is based on the amount of the outstanding lease obligation. Depreciation on capital lease assets is included in depreciation expense in the consolidated statements of operations. Interest expense related to capital leases for fiscal years 2014, 2013, and 2012 was $673 thousand, $618 thousand, and $600 thousand, respectively. | ||||||||||||||
Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands): | ||||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Land | $ | 28,235 | 29,701 | |||||||||||
Buildings | 43,835 | 41,721 | ||||||||||||
Leasehold improvements | 140,171 | 135,177 | ||||||||||||
Store, production, and other equipment | 184 | 146 | ||||||||||||
Construction in progress | 1,482 | 1,363 | ||||||||||||
Assets leased to others, gross | 213,907 | 208,108 | ||||||||||||
Accumulated depreciation | (75,607 | ) | (71,535 | ) | ||||||||||
Assets leased to others, net | $ | 138,300 | 136,573 | |||||||||||
Future minimum rental commitments to be paid and received by the Company at December 27, 2014 for all noncancelable leases and subleases are as follows (in thousands): | ||||||||||||||
Payments | Receipts | Net | ||||||||||||
Capital | Operating | Subleases | leases | |||||||||||
leases | leases | |||||||||||||
Fiscal year: | ||||||||||||||
2015 | $ | 1,262 | 54,403 | (65,327 | ) | (9,662 | ) | |||||||
2016 | 1,266 | 53,909 | (65,423 | ) | (10,248 | ) | ||||||||
2017 | 1,288 | 53,287 | (65,261 | ) | (10,686 | ) | ||||||||
2018 | 1,304 | 52,126 | (64,105 | ) | (10,675 | ) | ||||||||
2019 | 1,128 | 50,746 | (61,233 | ) | (9,359 | ) | ||||||||
Thereafter | 8,880 | 401,707 | (373,266 | ) | 37,321 | |||||||||
Total minimum rental commitments | 15,128 | $ | 666,178 | (694,615 | ) | (13,309 | ) | |||||||
Less amount representing interest | 7,047 | |||||||||||||
Present value of minimum capital lease obligations | $ | 8,081 | ||||||||||||
Rental expense under operating leases associated with franchised locations and company-owned locations is included in occupancy expenses—franchised restaurants and company-owned restaurant expenses, respectively, in the consolidated statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating leases consisted of the following (in thousands): | ||||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Base rentals | $ | 53,130 | 53,462 | 52,821 | ||||||||||
Contingent rentals | 6,071 | 5,869 | 5,227 | |||||||||||
Total rental expense | $ | 59,201 | 59,331 | 58,048 | ||||||||||
Total rental income for all leases and subleases consisted of the following (in thousands): | ||||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Base rentals | $ | 67,945 | 66,540 | 67,988 | ||||||||||
Contingent rentals | 29,718 | 29,542 | 28,828 | |||||||||||
Total rental income | $ | 97,663 | 96,082 | 96,816 | ||||||||||
The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands): | ||||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Increase in rental income | $ | 847 | 973 | 1,065 | ||||||||||
Decrease in rental expense | 1,188 | 1,204 | 1,287 | |||||||||||
Total increase in operating income | $ | 2,035 | 2,177 | 2,352 | ||||||||||
Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next five years (in thousands): | ||||||||||||||
Decrease in | Increase in | Total increase | ||||||||||||
rental expense | rental income | in operating | ||||||||||||
income | ||||||||||||||
Fiscal year: | ||||||||||||||
2015 | $ | 940 | 789 | 1,729 | ||||||||||
2016 | 885 | 719 | 1,604 | |||||||||||
2017 | 885 | 681 | 1,566 | |||||||||||
2018 | 851 | 632 | 1,483 | |||||||||||
2019 | 731 | 583 | 1,314 | |||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
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. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues from 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 operating income adjusted for amortization of intangible assets, long-lived asset impairment charges, and other infrequent or unusual charges, and does not reflect the allocation of any corporate charges. This profitability measure is 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. | ||||||||||
Prior to fiscal year 2014, the segment profit measure used by the Company to assess the performance of and allocate resources to each reportable segment was based on earnings before interest, taxes, depreciation, amortization, impairment charges, loss on debt extinguishment and refinancing transactions, other gains and losses, and did not reflect the allocation of any corporate charges. Accordingly, the primary change from the historical segment profit measure is the inclusion of depreciation expense. Beginning in fiscal year 2014, the segment profit measure was revised to the adjusted operating income measure described above to better align the segments with our consolidated performance measures and incentive targets. The segment profit amounts presented below for fiscal years 2013 and 2012 have been adjusted to reflect this change to the measurement of segment profit to enable comparability with fiscal year 2014. | ||||||||||
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 | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 548,697 | 521,179 | 485,399 | ||||||
Dunkin’ Donuts International | 19,867 | 18,316 | 15,485 | |||||||
Baskin-Robbins U.S. | 43,158 | 42,152 | 42,074 | |||||||
Baskin-Robbins International | 122,456 | 120,333 | 101,975 | |||||||
Total reportable segment revenues | 734,178 | 701,980 | 644,933 | |||||||
Other | 14,531 | 11,860 | 13,248 | |||||||
Total revenues | $ | 748,709 | 713,840 | 658,181 | ||||||
Revenues for foreign countries are represented by the Dunkin’ Donuts International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented. | ||||||||||
Expenses included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services. The “Operating income adjustments excluded from reportable segments” amounts for fiscal year 2013 below include the $7.5 million charge related to the third-party product volume guarantee (see note 17(b)), and amounts for fiscal year 2012 below include $20.7 million related to the Bertico litigation (see note 17(d)), $14.0 million related to the closure of the Peterborough Plant (see note 20), and $4.8 million of transaction costs and incremental share-based compensation related to secondary offerings (see notes 13(a) and 14). Segment profit by segment was as follows (in thousands): | ||||||||||
Segment profit | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 403,591 | 374,435 | 341,776 | ||||||
Dunkin’ Donuts International | 12,103 | 7,453 | 9,636 | |||||||
Baskin-Robbins U.S. | 27,496 | 26,608 | 25,351 | |||||||
Baskin-Robbins International | 42,792 | 54,237 | 45,759 | |||||||
Total reportable segments | 485,982 | 462,733 | 422,522 | |||||||
Corporate and other | (120,026 | ) | (122,337 | ) | (115,365 | ) | ||||
Interest expense, net | (67,824 | ) | (79,831 | ) | (73,488 | ) | ||||
Amortization of other intangible assets | (25,760 | ) | (26,943 | ) | (26,943 | ) | ||||
Long-lived asset impairment charges | (1,484 | ) | (563 | ) | (1,278 | ) | ||||
Loss on debt extinguishment and refinancing transactions | (13,735 | ) | (5,018 | ) | (3,963 | ) | ||||
Other gains (losses), net | (1,566 | ) | (1,799 | ) | 23 | |||||
Operating income adjustments excluded from reportable segments | 146 | (8,154 | ) | (39,507 | ) | |||||
Income before income taxes | $ | 255,733 | 218,088 | 162,001 | ||||||
Net income of equity method investments, including amortization on intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Expenses included in “Other” in the segment profit table below represent the reduction in depreciation and amortization, net of tax, reported by BR Korea (see note 6), as a result of the impairment charge recorded 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 of equity method investments | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts International | $ | 1,794 | 480 | 2,211 | ||||||
Baskin-Robbins International | 11,912 | 15,913 | 16,578 | |||||||
Total reportable segments | 13,706 | 16,393 | 18,789 | |||||||
Other | 1,140 | 1,977 | 3,562 | |||||||
Total net income of equity method investments | $ | 14,846 | 18,370 | 22,351 | ||||||
Depreciation is reflected in segment profit for each reportable segment. Depreciation by reportable segments was as follows (in thousands): | ||||||||||
Depreciation | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 12,207 | 12,816 | 13,498 | ||||||
Dunkin’ Donuts International | 11 | 26 | 34 | |||||||
Baskin-Robbins U.S. | 288 | 473 | 923 | |||||||
Baskin-Robbins International | 62 | 84 | 562 | |||||||
Total reportable segments | 12,568 | 13,399 | 15,017 | |||||||
Corporate and other | 7,211 | 9,024 | 14,067 | |||||||
Total depreciation | $ | 19,779 | 22,423 | 29,084 | ||||||
Property and equipment, net by geographic region as of December 27, 2014 and December 28, 2013 is based on the physical locations within the indicated geographic regions and are as follows (in thousands): | ||||||||||
December 27, 2014 | December 28, 2013 | |||||||||
United States | $ | 181,898 | 182,544 | |||||||
International | 163 | 314 | ||||||||
Total property and equipment, net | $ | 182,061 | 182,858 | |||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Stockholders' Equity | Stockholders’ equity | |||||||||||||||
(a) Public offerings | ||||||||||||||||
On August 1, 2011, the Company completed an initial public offering of our common stock. In April 2012 and August 2012, certain existing stockholders, including the Company's former private equity owners (the “Sponsors”), sold 30,360,000 and 21,754,659 shares, respectively, of our common stock at prices of $29.50 and $30.00 per share, respectively, less underwriting discounts and commissions, in secondary public offerings. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company incurred approximately $1.7 million of expenses in connection with the offerings. | ||||||||||||||||
(b) Common stock | ||||||||||||||||
Common shares issued and outstanding included in the consolidated balance sheets include vested and unvested restricted shares. Common stock in the consolidated statement of stockholders’ equity excludes unvested restricted shares. | ||||||||||||||||
(c) Treasury stock | ||||||||||||||||
In August 2012, the Company repurchased a total of 15,000,000 shares of common stock at a price of $30.00 per share from certain existing stockholders, including the Sponsors, and incurred approximately $341 thousand of third-party costs in connection with the repurchase. The Company accounts for treasury stock under the cost method, and as such recorded an increase in common treasury stock of $450.4 million during fiscal year 2012, based on the fair market value of the shares on the date of repurchase and the direct costs incurred. During fiscal year 2012, the Company retired all outstanding treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $450.4 million and $180.0 million, respectively, and an increase in accumulated deficit of $270.3 million. | ||||||||||||||||
During fiscal year 2013, the Company repurchased a total of 648,000 shares of common stock at a weighted average price per share of $43.14 from existing stockholders. The Company recorded an increase in common treasury stock of $28.0 million during fiscal year 2013, based on the fair market value of the shares on the date of repurchase and direct costs incurred. In October 2013, the Company retired 417,300 shares of treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $17.2 million and $4.7 million, respectively, and an increase in accumulated deficit of $12.5 million. | ||||||||||||||||
During fiscal year 2014, the Company repurchased a total of 2,911,205 shares of common stock at a weighted average price per share of $44.71 from existing stockholders. The Company recorded an increase in common treasury stock of $130.2 million during fiscal year 2014, based on the fair market value of the shares on the date of repurchase and direct costs incurred. During fiscal year 2014, the Company retired all outstanding treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $140.9 million and $33.2 million, respectively, and an increase in accumulated deficit of $107.8 million. | ||||||||||||||||
Subsequent to December 27, 2014, the Company entered into a $400.0 million accelerated share repurchase agreement (the “ASR Agreement”) with a third party financial institution. Pursuant to the terms of the ASR Agreement, the Company paid the financial institution $400.0 million in cash and received approximately 6,950,000 of the Company’s common stock in February 2015. At settlement, the financial institution may be required to deliver additional shares of common stock to the Company, or, under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the financial institution. Final settlement of the ASR Agreement is expected to be completed in June 2015, although the settlement may be accelerated at the financial institution's option. | ||||||||||||||||
(d) Accumulated other comprehensive income (loss) | ||||||||||||||||
The components of accumulated other comprehensive income (loss) were as follows (in thousands): | ||||||||||||||||
Effect of | Gain (loss) on interest rate swaps | Unrealized gain (loss) on pension plan | Other | Accumulated | ||||||||||||
foreign | other | |||||||||||||||
currency | comprehensive | |||||||||||||||
translation | income (loss) | |||||||||||||||
Balances at December 28, 2013 | $ | 5 | 6,085 | (3,098 | ) | (1,653 | ) | 1,339 | ||||||||
Other comprehensive income (loss) | (13,743 | ) | (2,369 | ) | 224 | 572 | (15,316 | ) | ||||||||
Balances at December 27, 2014 | $ | (13,738 | ) | 3,716 | (2,874 | ) | (1,081 | ) | (13,977 | ) | ||||||
(e) Dividends | ||||||||||||||||
During fiscal year 2014, the Company paid dividends on common stock as follows: | ||||||||||||||||
Dividend per share | Total amount (in thousands) | Payment date | ||||||||||||||
Fiscal year 2014: | ||||||||||||||||
First quarter | $ | 0.23 | $ | 24,520 | 19-Mar-14 | |||||||||||
Second quarter | 0.23 | 24,239 | 4-Jun-14 | |||||||||||||
Third quarter | 0.23 | 23,997 | 3-Sep-14 | |||||||||||||
Fourth quarter | 0.23 | 24,019 | December 3, 2014 | |||||||||||||
During fiscal year 2013, the Company paid dividends on common stock as follows: | ||||||||||||||||
Dividend per share | Total amount (in thousands) | Payment date | ||||||||||||||
Fiscal year 2013: | ||||||||||||||||
First quarter | $ | 0.19 | $ | 20,191 | 20-Feb-13 | |||||||||||
Second quarter | 0.19 | 20,259 | 6-Jun-13 | |||||||||||||
Third quarter | 0.19 | 20,257 | 4-Sep-13 | |||||||||||||
Fourth quarter | 0.19 | 20,301 | November 26, 2013 | |||||||||||||
On February 5, 2015, we announced that our board of directors approved an increase to the next quarterly dividend to $0.265 per share of common stock, payable March 18, 2015 to shareholders of record as of the close of business on March 9, 2015. |
Equity_Incentive_Plans
Equity Incentive Plans | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Equity Incentive Plans | Equity incentive plans | ||||||||||||
The Company’s 2006 Executive Incentive Plan, as amended, (the “2006 Plan”) provides for the grant of share-based and other incentive awards. A maximum of 12,191,145 shares of common stock may be delivered in satisfaction of awards under the 2006 Plan, of which a maximum of 5,012,966 shares may be awarded as nonvested (restricted) shares and a maximum of 7,178,179 may be delivered in satisfaction of stock options. | |||||||||||||
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. | |||||||||||||
Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands): | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | |||||||||||
2006 Plan stock options—executive | $ | 434 | 977 | 4,245 | |||||||||
2006 Plan stock options—nonexecutive | 131 | 162 | 181 | ||||||||||
2011 Plan stock options | 6,847 | 4,668 | 2,026 | ||||||||||
2011 Plan restricted shares | 1,456 | — | — | ||||||||||
Restricted stock units | 2,419 | 1,513 | 336 | ||||||||||
Other | — | 3 | 132 | ||||||||||
Total share-based compensation | $ | 11,287 | 7,323 | 6,920 | |||||||||
Total related tax benefit | $ | 4,567 | 2,958 | 2,768 | |||||||||
The actual tax benefit realized from stock options exercised during fiscal years 2014, 2013, and 2012 was $11.5 million, $15.9 million, and $14.1 million respectively. | |||||||||||||
2006 Plan stock options—executive | |||||||||||||
The Company’s executive options under the 2006 Plan vest in two separate tranches, 30% allocated as Tranche 4 and 70% allocated as Tranche 5, each with different vesting conditions. In addition to the vesting conditions described below, both tranches provide for partial accelerated vesting upon change in control. The maximum contractual term of the executive options is ten years. | |||||||||||||
The Tranche 4 executive options generally vest in equal annual amounts over a 5-year period subsequent to the grant date, and as such are subject to a service condition. Certain options provide for accelerated vesting at the date of grant, with 20% of the Tranche 4 options vesting on each subsequent anniversary of the grant date over a 3- or 4-year period. The requisite service periods over which compensation cost is being recognized ranges from 3 to 5 years. | |||||||||||||
The Tranche 5 executive options become eligible to vest based on continued service periods of 3 to 5 years that are aligned with the Tranche 4 executive options (“Eligibility Percentage”). Vesting does not actually occur until the achievement of a performance condition, which is the sale of shares by the Sponsors. Additionally, the options are subject to a market condition related to the achievement of specified investor returns to the Sponsors upon a sale of shares. As the Tranche 5 options require the satisfaction of multiple vesting conditions, the requisite service period is the longest of the explicit, implicit, and derived service periods of the service, performance, and market conditions. Based on dividends received and the sale of shares by the Sponsors in connection with public offerings completed in 2012 and 2011, the market vesting condition was fully satisfied in fiscal year 2012 and continued vesting only remained subject to the ongoing service condition. As a result, compensation expense of $190 thousand, $478 thousand, and $3.6 million related to the Tranche 5 executive options was recorded in fiscal years 2014, 2013, and 2012, respectively. | |||||||||||||
The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2014, 2013 or 2012. As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures of generally 10% per year. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense. | |||||||||||||
A summary of the status of the Company’s executive stock options as of December 27, 2014 and changes during fiscal year 2014 are presented below: | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
shares | average | average | intrinsic | ||||||||||
exercise | remaining | value | |||||||||||
price | contractual | (in millions) | |||||||||||
term (years) | |||||||||||||
Share options outstanding at December 28, 2013 | 2,205,947 | $ | 3.64 | 6.3 | |||||||||
Exercised | (550,782 | ) | 3.46 | ||||||||||
Forfeited or expired | (7,007 | ) | 7.31 | ||||||||||
Share options outstanding at December 27, 2014 | 1,648,158 | 3.68 | 5.3 | $ | 63.8 | ||||||||
Share options exercisable at December 27, 2014 | 1,338,605 | 3.33 | 5.2 | 52.3 | |||||||||
The total grant-date fair value of executive stock options vested during fiscal years 2014, 2013, and 2012 was $1.5 million, $1.8 million, and $2.8 million, respectively. The total intrinsic value of executive stock options exercised was $24.6 million, $35.3 million, and $33.8 million for fiscal years 2014, 2013, and 2012, respectively. As of December 27, 2014, there was $226 thousand of total unrecognized compensation cost related to Tranche 4 and Tranche 5 options, which is expected to be recognized over a weighted average period of approximately 1.1 years. | |||||||||||||
2006 Plan stock options—nonexecutive and 2011 Plan stock options | |||||||||||||
During fiscal years 2014, 2013, and 2012, the Company granted options to certain employees to purchase 1,406,308, 1,177,999, and 746,100 shares, respectively, of common stock under the 2011 Plan. Additionally, the Company had granted options to nonexecutives to purchase shares of common stock under the 2006 Plan in prior years. The nonexecutive options and 2011 Plan options vest in equal annual amounts over either a 4- or 5-year period subsequent to the grant date, and as such are subject to a service condition, and also fully vest upon a change of control. The requisite service period over which compensation cost is being recognized is either four or five years. The maximum contractual term of the nonexecutive and 2011 Plan options is seven or ten years. | |||||||||||||
The fair value of nonexecutive and 2011 Plan options was estimated on the date of grant using the Black-Scholes option pricing model. This model is impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. The following weighted average assumptions were utilized in determining the fair value of 2011 Plan options granted during fiscal years 2014, 2013, and 2012: | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | |||||||||||
Weighted average grant-date fair value of share options granted | $ | 10.65 | $ | 9.92 | $ | 10.65 | |||||||
Weighted average assumptions: | |||||||||||||
Risk-free interest rate | 1.5 | % | 1.2 | % | 0.8%-1.4% | ||||||||
Expected volatility | 26.3 | % | 33 | % | 43 | % | |||||||
Dividend yield | 1.8 | % | 2 | % | 1.8%-2.1% | ||||||||
Expected term (years) | 4.96 | 6.25 | 6.25 | ||||||||||
The expected term was primarily estimated utilizing the simplified method. We utilized the simplified method because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on historical volatility of peer companies over a period equivalent to the expected term, as well as considering the Company’s historical volatility since its initial public offering. Additionally, the dividend yield was estimated based on dividends currently being paid on the underlying common stock at the date of grant, if any. | |||||||||||||
As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for annualized estimated forfeitures of generally 10-13%. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense. | |||||||||||||
A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 27, 2014 and changes during fiscal year 2014 is presented below: | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
shares | average | average | intrinsic | ||||||||||
exercise | remaining | value | |||||||||||
price | contractual | (in millions) | |||||||||||
term (years) | |||||||||||||
Share options outstanding at December 28, 2013 | 2,019,150 | $ | 31.45 | 8.5 | |||||||||
Granted | 1,406,308 | 51.67 | |||||||||||
Exercised | (141,924 | ) | 22.51 | ||||||||||
Forfeited or expired | (266,765 | ) | 35.76 | ||||||||||
Share options outstanding at December 27, 2014 | 3,016,769 | 40.91 | 6.9 | $ | 17.1 | ||||||||
Share options exercisable at December 27, 2014 | 607,765 | 28.42 | 7.1 | 8.5 | |||||||||
The total grant-date fair value of nonexecutive and 2011 Plan stock options vested during fiscal years 2014, 2013, and 2012 was $4.6 million, $2.9 million, and $1.0 million, respectively. The total intrinsic value of nonexecutive and 2011 Plan stock options exercised was $3.7 million, $4.1 million, and $1.5 million for fiscal years 2014, 2013, and 2012, respectively. As of December 27, 2014, there was $19.0 million of total unrecognized compensation cost related to nonexecutive and 2011 Plan options. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 2.6 years. | |||||||||||||
Restricted stock units | |||||||||||||
The Company typically grants restricted stock units to certain employees and members of our board of directors. During fiscal years 2014, 2013, and 2012, the Company granted restricted stock units of 76,381, 94,495, and 22,204, respectively. Restricted stock units granted to employees generally vest in three equal installments on each of the first three anniversaries of the grant date. Restricted stock units granted to our board of directors generally vest in one installment on the first anniversary of the grant date. | |||||||||||||
A summary of the changes in the Company’s restricted stock units during fiscal year 2014 is presented below: | |||||||||||||
Number of | Weighted average grant-date fair value | Weighted | Aggregate | ||||||||||
shares | average | intrinsic | |||||||||||
remaining | value | ||||||||||||
contractual | (in millions) | ||||||||||||
term (years) | |||||||||||||
Nonvested restricted stock units at December 28, 2013 | 102,971 | $ | 37.2 | 1.8 | |||||||||
Granted | 76,381 | 50.15 | |||||||||||
Vested | (45,837 | ) | 38.74 | ||||||||||
Forfeited | (11,032 | ) | 34.93 | ||||||||||
Nonvested restricted stock units at December 27, 2014 | 122,483 | 43.4 | 1.5 | $ | 5.2 | ||||||||
The fair value of each restricted stock unit is determined on the date of grant based on our closing stock price. As of December 27, 2014, there was $3.3 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.7 years. The total grant-date fair value of restricted stock units vested during fiscal years 2014, 2013 and 2012 was $1.8 million, $448 thousand and $118 thousand, respectively. | |||||||||||||
2011 Plan nonvested (restricted) shares | |||||||||||||
During fiscal year 2014, the Company granted restricted shares of 27,096. The restricted shares vest in full on July 31, 2016, based on a service condition, and have a grant-date fair value of $51.67 per share which was determined on the date of grant based on our closing stock price. As of December 27, 2014, there was $920 thousand of total unrecognized compensation cost related to these restricted shares, which is expected to be recognized over a weighted average period of approximately 1.6 years. | |||||||||||||
In addition, during fiscal year 2014, the Company granted 150,000 performance-based restricted shares. The performance-based restricted shares are eligible to vest on December 31, 2018, subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company's shareholders during the performance period measured against the median total shareholder return of the companies in the S&P 500 Composite Index. The performance-based RSAs were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a grant-date fair value of $37.94 per share. As of December 27, 2014, there was $4.7 million of total unrecognized compensation cost related to these performance-based restricted shares, which is expected to be recognized over a weighted average period of approximately 4.0 years. | |||||||||||||
As of December 27, 2014, total 2011 Plan restricted shares of 177,096 remained unvested. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
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): | ||||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to Dunkin' Brands—basic and diluted | $ | 176,357 | 146,903 | 108,308 | ||||||
Weighted average number of common shares: | ||||||||||
Common—basic | 105,398,899 | 106,501,733 | 114,584,063 | |||||||
Common—diluted | 106,705,778 | 108,217,011 | 116,573,344 | |||||||
Earnings per common share: | ||||||||||
Common—basic | $ | 1.67 | 1.38 | 0.94 | ||||||
Common—diluted | 1.65 | 1.36 | 0.93 | |||||||
The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,306,879, 1,715,278, and 1,989,281 equity awards for fiscal years 2014, 2013, and 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 equity awards outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 27, 2014, there were 150,000 restricted shares that were performance-based and for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no equity 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 1,373,379, 1,100,275, and 805,015 equity awards for fiscal years 2014, 2013, and 2012, respectively, as they would be antidilutive. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income taxes | ||||||||||||
Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands): | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic operations | $ | 231,549 | 195,277 | 172,576 | |||||||||
Foreign operations | 24,184 | 22,811 | (10,575 | ) | |||||||||
Income before income taxes | $ | 255,733 | 218,088 | 162,001 | |||||||||
The components of the provision for income taxes were as follows (in thousands): | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 82,925 | 70,696 | 52,657 | |||||||||
State | 23,146 | 11,758 | 6,065 | ||||||||||
Foreign | (1,262 | ) | 2,521 | 2,601 | |||||||||
Current tax provision | $ | 104,809 | 84,975 | 61,323 | |||||||||
Deferred: | |||||||||||||
Federal | $ | (22,644 | ) | (11,915 | ) | (5,071 | ) | ||||||
State | (1,861 | ) | (984 | ) | 4,373 | ||||||||
Foreign | (134 | ) | (292 | ) | (6,248 | ) | |||||||
Deferred tax benefit | (24,639 | ) | (13,191 | ) | (6,946 | ) | |||||||
Provision for income taxes | $ | 80,170 | 71,784 | 54,377 | |||||||||
The provision for income taxes from continuing operations differed from the expense computed using the statutory federal income tax rate of 35% due to the following: | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed federal income tax expense, at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 5.7 | 4.7 | 5.2 | ||||||||||
Benefits and taxes related to foreign operations | (3.5 | ) | (4.3 | ) | (2.9 | ) | |||||||
Conversion of foreign subsidiary | (3.3 | ) | — | — | |||||||||
Other permanent differences | 0.1 | 0.2 | 0.7 | ||||||||||
Changes in enacted tax rates and apportionment | 0.1 | 0.8 | 2.8 | ||||||||||
Uncertain tax positions | (2.5 | ) | (3.2 | ) | (6.3 | ) | |||||||
Other, net | (0.3 | ) | (0.3 | ) | (0.9 | ) | |||||||
Effective tax rate | 31.3 | % | 32.9 | % | 33.6 | % | |||||||
During fiscal year 2014, the Company recorded a net tax benefit of $7.0 million related to the reversal of reserves for uncertain tax positions, including interest and penalties, net of federal and state tax benefit as applicable, for which settlement with the taxing authorities was reached or were otherwise deemed effectively settled. Additionally during fiscal year 2014, the Company recorded a net tax benefit of $8.5 million related to the restructuring of our Canadian subsidiaries, which included a legal entity conversion of Dunkin’ Brands Canada, Ltd. (“DBCL”) to Dunkin’ Brands Canada ULC. The net tax benefit from the Canadian legal entity conversion resulted primarily from a worthless securities deduction for the tax basis of DBCL and the revaluation of DBCL’s deferred tax assets and liabilities at the applicable U.S. deferred tax rate, partially offset by income recognized for the tax basis of DBCL’s assets. | |||||||||||||
During fiscal year 2013, the Company recorded a net tax benefit of $8.4 million related to the reversal of reserves for uncertain tax positions, including interest and penalties, net of federal and state tax benefit as applicable, for which settlement with the taxing authorities was reached, and recognized a deferred tax expense of $1.7 million due to estimated changes in apportionment and enacted changes in future state income tax rates. | |||||||||||||
During fiscal year 2012, the Company recorded a net tax benefit of $10.2 million primarily related to the reversal of reserves for uncertain tax positions, including interest and penalties, net of federal and state tax benefit as applicable, for which settlement with the taxing authorities was reached, and recognized a deferred tax expense of $4.6 million due to estimated changes in apportionment and enacted changes in future state income tax rates. | |||||||||||||
The components of deferred tax assets and liabilities were as follows (in thousands): | |||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||
Deferred tax | Deferred tax | Deferred tax | Deferred tax | ||||||||||
assets | liabilities | assets | liabilities | ||||||||||
Current: | |||||||||||||
Allowance for doubtful accounts | $ | 3,377 | — | 1,055 | — | ||||||||
Deferred gift cards and certificates | 20,549 | — | 20,371 | — | |||||||||
Rent | 5,480 | — | 5,307 | — | |||||||||
Deferred income | 4,900 | — | 4,672 | — | |||||||||
Other current liabilities | 13,033 | — | 13,983 | — | |||||||||
Capital loss | 179 | — | — | — | |||||||||
Other | 2,466 | 768 | 1,073 | — | |||||||||
Total current | 49,984 | 768 | 46,461 | — | |||||||||
Noncurrent: | |||||||||||||
Capital leases | 3,066 | — | 2,830 | — | |||||||||
Rent | 3,442 | — | 2,243 | — | |||||||||
Property and equipment | — | 4,451 | — | 6,315 | |||||||||
Deferred compensation liabilities | 10,645 | — | 7,747 | — | |||||||||
Deferred income | 5,410 | — | 4,234 | — | |||||||||
Real estate reserves | 1,223 | — | 1,287 | — | |||||||||
Franchise rights and other intangibles | — | 567,751 | — | 576,567 | |||||||||
Unused foreign tax credits | 8,122 | — | 6,756 | — | |||||||||
Other | 637 | — | 1,103 | 4,322 | |||||||||
32,545 | 572,202 | 26,200 | 587,204 | ||||||||||
Valuation allowance | (682 | ) | — | (710 | ) | — | |||||||
Total noncurrent | 31,863 | 572,202 | 25,490 | 587,204 | |||||||||
Total current and noncurrent | $ | 81,847 | 572,970 | 71,951 | 587,204 | ||||||||
At December 27, 2014, the valuation allowance for deferred tax assets was $0.7 million. This valuation allowance related to deferred tax assets for net operating loss carryforwards attributable to our wholly-owned subsidiary in Spain. At December 27, 2014, the Company had $6.9 million of unused foreign tax credits, which expire in fiscal years 2021 and 2024. | |||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, and projections for future taxable income over the periods for which the deferred tax assets are deductible, management believes, as of December 27, 2014, with the exception of net operating loss carryforwards attributable to our Spain subsidiary, it is more likely than not that the Company will realize the benefits of the deferred tax assets. | |||||||||||||
The Company has not recognized a deferred tax liability of $8.8 million for the undistributed earnings of foreign operations, net of foreign tax credits, relating to our foreign joint ventures that arose in fiscal year 2014 and prior years because the Company currently does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future. A deferred tax liability will be recognized when the Company is no longer able to demonstrate that it plans to permanently reinvest undistributed earnings. As of December 27, 2014 and December 28, 2013, the undistributed earnings of these joint ventures were approximately $136.7 million and $129.7 million, respectively. | |||||||||||||
The Company has not recognized a deferred tax liability of $5.9 million for the undistributed earnings of our foreign subsidiaries since such earnings are considered indefinitely reinvested outside the United States. As of December 27, 2014 and December 28, 2013, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $8.5 million and $7.5 million, respectively. If in the future we decide to repatriate such foreign earnings, we would incur incremental U.S. federal and state income tax. However, our intent is to keep these funds indefinitely reinvested outside of the United States and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. | |||||||||||||
At December 27, 2014 and December 28, 2013, the total amount of unrecognized tax benefits related to uncertain tax positions was $3.7 million and $8.2 million, respectively. At December 27, 2014 and December 28, 2013, the Company had approximately $1.2 million and $4.2 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company recorded net income tax benefits of $2.3 million and $5.8 million during fiscal years 2014 and 2013, respectively, and net income tax expense of $0.2 million during fiscal year 2012, for potential interest and penalties related to uncertain tax positions. At December 27, 2014 and December 28, 2013, there were $2.0 million and $6.3 million, respectively, of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. | |||||||||||||
The Company’s major tax jurisdictions subject to income tax are the United States and Canada. For Canada, the Company has open tax years dating back to tax years ended August 2004 and finalized its audit for the tax periods 2009 through 2012 during fiscal year 2014. No cash payment was required. In the United States, the Company has been audited by the IRS through fiscal year 2010 and is currently under audit in one jurisdiction for the tax periods after December 2006. | |||||||||||||
A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands): | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 8,213 | 15,428 | 41,379 | |||||||||
Increases related to prior year tax positions | 488 | 855 | 2,063 | ||||||||||
Increases related to current year tax positions | 96 | 219 | 1,389 | ||||||||||
Decreases related to prior year tax positions | (4,567 | ) | (3,091 | ) | (19,675 | ) | |||||||
Decreases related to settlements | (296 | ) | (4,797 | ) | (9,792 | ) | |||||||
Lapses of statutes of limitations | — | — | (27 | ) | |||||||||
Effect of foreign currency adjustments | (262 | ) | (401 | ) | 91 | ||||||||
Balance at end of year | $ | 3,672 | 8,213 | 15,428 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 27, 2014 | |
Text Block [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 (see note 11). | |
(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 $2.2 million and $3.0 million at December 27, 2014 and December 28, 2013, respectively. At December 27, 2014 and December 28, 2013, 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 $144 thousand and $198 thousand, respectively, at December 27, 2014 and $277 thousand and $309 thousand, respectively, at December 28, 2013. The Company assesses the risk of performing under these guarantees for each franchisee relationship on a quarterly basis. As of December 27, 2014, the Company had recorded an immaterial amount of reserves for such guarantees. No reserves were recorded as of December 28, 2013. | |
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 would 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 as of December 28, 2013 and general and administrative expenses, net in the consolidated statements of operations for fiscal year 2013. The Company made the full required guarantee payment during the first quarter of 2014. No additional guarantee payments will be required under the agreement. | |
The Company has also entered into a third-party guarantee with this distribution facility of franchisee products that ensures 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 December 27, 2014 and December 28, 2013, the Company was contingently liable for $4.3 million and $5.7 million, respectively, under this guarantee. Additionally, the Company has various supply chain contracts that 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 December 27, 2014 and December 28, 2013, we were contingently liable under such supply chain agreements for approximately $51.5 million and $52.6 million, respectively. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, considering various factors including internal forecasts, prior history, and ability to extend contract terms, we have accrued $507 thousand and $906 thousand related to these commitments as of December 27, 2014 and December 28, 2013, respectively, which are included in other current liabilities in the consolidated balance sheets. | |
Lease Guarantees | |
We are contingently liable on certain lease agreements typically resulting from assigning our interest in obligations under property leases as a condition of refranchising certain restaurants and the guarantee of certain other leases. These leases have varying terms, the latest of which expires in 2024. As of December 27, 2014 and December 28, 2013, the potential amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessee was $6.3 million and $6.4 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 December 27, 2014 and December 28, 2013, the Company had standby letters of credit outstanding for a total of $2.9 million and $3.0 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 (“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 fiscal years 2014, 2013, and 2012, the Company accrued additional interest on the judgment amount of $888 thousand, $952 thousand, and $493 thousand respectively, resulting in an estimated liability of $23.9 million, including the impact of foreign exchange, as of December 27, 2014. 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 December 27, 2014 and December 28, 2013, contingent liabilities, excluding the Bertico litigation, totaling $765 thousand and $1.5 million, respectively, 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. |
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||
Retirement Plans | Retirement plans | |||||||||
401(k) Plan | ||||||||||
Employees of the Company, excluding employees of certain international subsidiaries and certain employees of company-owned stores, are eligible to participate in a defined contribution retirement plan, the Dunkin’ Brands, Inc. 401(k) Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute up to 80% of their pre-tax eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined in the sole discretion of the Company. The Company matched participants’ contributions during fiscal years 2014, 2013, and 2012, up to a maximum of 4% of the employee’s salary. Employer contributions for fiscal years 2014, 2013, and 2012, amounted to $3.2 million, $3.1 million, and $2.9 million, respectively. The 401(k) Plan also provides for an additional discretionary contribution of up to 2% of eligible wages for eligible participants based on the achievement of specified performance targets. No such discretionary contributions were made during fiscal years 2014, 2013, and 2012. | ||||||||||
NQDC Plan | ||||||||||
The Company, excluding employees of certain international subsidiaries, also offers certain qualifying individuals, as defined by the Employee Retirement Income Security Act (“ERISA”), the ability to participate in the NQDC Plan. The NQDC Plan allows for pre-tax contributions of up to 50% of a participant’s base annual salary and other forms of compensation, as defined. The Company credits the amounts deferred with earnings and holds investments in company-owned life insurance to partially offset the Company’s liabilities under the NQDC Plan. The NQDC Plan liability, included in other long-term liabilities in the consolidated balance sheets, was $8.5 million and $7.0 million at December 27, 2014 and December 28, 2013, respectively. As of December 27, 2014 and December 28, 2013, total investments held for the NQDC Plan were $3.0 million and $338 thousand, respectively, and are included in other assets in the consolidated balance sheets. | ||||||||||
Canadian Pension Plan | ||||||||||
The Company sponsors a contributory defined benefit pension plan in Canada, The Baskin-Robbins Employees’ Pension Plan (“Canadian Pension Plan”), which provides retirement benefits for the majority of its Canadian employees. | ||||||||||
During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, where the majority of the Canadian Pension Plan participants were employed (see note 20). As a result of the closure, the Company terminated the Canadian Pension Plan as of December 29, 2012, and the Financial Services Commission of Ontario approved the termination of the plan in the third quarter of 2014. In 2015, the Company expects to complete the final settlement of the plan by funding any plan deficit and using the plan assets to fund transfers to other retirement plans or for the purchase of annuities to fund future retirement payments to participants. Upon final settlement, the Company will recognize any unrealized losses in accumulated other comprehensive income. | ||||||||||
The components of net pension expense were as follows (in thousands): | ||||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Service cost | $ | — | — | 262 | ||||||
Interest cost | 207 | 216 | 333 | |||||||
Expected return on plan assets | (208 | ) | (263 | ) | (317 | ) | ||||
Amortization of net actuarial loss | 87 | 74 | 76 | |||||||
Net pension expense | $ | 86 | 27 | 354 | ||||||
The amortization of net actuarial loss included in net pension expense above represents the amount reclassified from accumulated other comprehensive income (loss) during the respective fiscal year. The table below summarizes other balances for fiscal years 2014, 2013, and 2012 (in thousands): | ||||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Change in benefit obligation: | ||||||||||
Benefit obligation, beginning of year | $ | 8,200 | 8,349 | 6,050 | ||||||
Service cost | — | — | 262 | |||||||
Interest cost | 207 | 216 | 333 | |||||||
Employee contributions | — | — | 88 | |||||||
Benefits paid | (208 | ) | (230 | ) | (275 | ) | ||||
Curtailment gain | — | — | (1,084 | ) | ||||||
Actuarial loss | 81 | 395 | 2,854 | |||||||
Foreign currency loss (gain), net | (681 | ) | (530 | ) | 121 | |||||
Benefit obligation, end of year | $ | 7,599 | 8,200 | 8,349 | ||||||
Change in plan assets: | ||||||||||
Fair value of plan assets, beginning of year | $ | 5,790 | 5,809 | 4,945 | ||||||
Expected return on plan assets | 208 | 263 | 317 | |||||||
Employer contributions | 898 | 626 | 662 | |||||||
Employee contributions | — | — | 88 | |||||||
Benefits paid | (208 | ) | (230 | ) | (275 | ) | ||||
Actuarial loss | 308 | (371 | ) | (27 | ) | |||||
Foreign currency gain (loss), net | (540 | ) | (307 | ) | 99 | |||||
Fair value of plan assets, end of year | $ | 6,456 | 5,790 | 5,809 | ||||||
Reconciliation of funded status: | ||||||||||
Funded status | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Net amount recognized at end of period | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Amounts recognized in the balance sheet consist of: | ||||||||||
Accrued benefit cost | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Net amount recognized at end of period | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
The investments of the Canadian Pension Plan consisted of a long-term bond fund and a short-term investment fund at December 27, 2014 and December 28, 2013. These funds are comprised of numerous underlying investments and are valued at the unit fair value supplied by the funds' administrators, which represent the funds' proportionate share of underlying net assets at market value determined using closing market prices. The funds are considered Level 2, as defined by U.S. GAAP, because the inputs used to calculate the fair value are derived principally from observable market data. The Canadian Pension Plan's investment strategy is to mitigate fluctuations in the wind-up deficit of the plan by holding assets whose fluctuation in fair value will approximate that of the benefit obligation. The Canadian Pension Plan assumes a concentration of risk as it is invested in a limited number of investments. The risk is mitigated as the funds consists of a diverse range of underlying investments. The allocation of the assets within the plan consisted of the following: | ||||||||||
December 27, | December 28, | |||||||||
2014 | 2013 | |||||||||
Cash and short-term investments | 34 | % | 35 | % | ||||||
Debt securities | 66 | 65 | ||||||||
The key actuarial assumption used in determining the present value of accrued pension benefits was a discount rate of 2.65% at both December 27, 2014 and December 28, 2013. This discount rate reflects the estimate of the rate at which pension benefits could be effectively settled. No future salary increases are assumed as a result of the termination of the plan. | ||||||||||
The actuarial assumptions used in determining the present value of our net periodic benefit cost were as follows: | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Discount rate | 2.65 | % | 2.7 | % | 5.25 | % | ||||
Average salary increase for pensionable earnings | — | — | 3.25 | |||||||
Expected return on plan assets | 3.5 | 4.5 | 6 | |||||||
The expected return on plan assets was determined based on the Canadian Pension Plan’s target asset mix, expected long-term asset class returns based on a mean return over a 30-year period using a Monte Carlo simulation, the underlying long-term inflation rate, and expected investment expenses. | ||||||||||
The accumulated benefit obligation was $7.6 million and $8.2 million at December 27, 2014 and December 28, 2013, respectively. We recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income to report the funded status of the Canadian Pension Plan. At December 27, 2014 and December 28, 2013, the net liability for the funded status of the Canadian Pension Plan was included in other current liabilities in the consolidated balance sheets. |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Disclosure Related Party Transactions [Abstract] | ||||||||||
Related-Party Transactions | Related-party transactions | |||||||||
The Company recognized royalty income from its equity method investees as follows (in thousands): | ||||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
BR Japan | $ | 1,790 | 2,097 | 2,549 | ||||||
BR Korea | 4,602 | 4,156 | 3,662 | |||||||
Spain JV | 123 | 130 | — | |||||||
$ | 6,515 | 6,383 | 6,211 | |||||||
At December 27, 2014 and December 28, 2013, the Company had $1.4 million of royalties receivable from its equity method investees, which were recorded in accounts receivable, net, in the consolidated balance sheets. | ||||||||||
The Company made net payments to its equity method investees totaling approximately $2.6 million, $3.8 million, and $1.6 million, in fiscal years 2014, 2013, and 2012, respectively, primarily for the purchase of ice cream products and incentive payments. | ||||||||||
The Company made loans of $2.1 million and $666 thousand during fiscal years 2013 and 2012, respectively, to the Spain JV, which were subsequently reserved (see note 6). As of December 27, 2014 and December 28, 2013, the Company had $2.5 million and $2.7 million, respectively, of notes receivable from the Spain JV, of which $2.3 million and $2.7 million were reserved, respectively. These notes receivable, net of the reserves, are included in other assets in the consolidated balance sheets. | ||||||||||
During fiscal years 2014 and 2013, the Company recognized sales of ice cream products of $5.8 million and $4.8 million, respectively, in the consolidated statements of operations from the sale of ice cream products to the Australia JV. As of December 27, 2014 and December 28, 2013, the Company had $3.1 million and $733 thousand, respectively, of net receivables from the Australia JV, consisting of accounts and notes receivable, net of current liabilities. |
Closure_of_Manufacturing_Plant
Closure of Manufacturing Plant | 12 Months Ended |
Dec. 27, 2014 | |
Disclosure Closure Of Manufacturing Plant Additional Information [Abstract] | |
Closure of Manufacturing Plant | Closure of manufacturing plant |
During fiscal year 2012, the Company closed its Peterborough, Ontario, Canada manufacturing plant, which supplied ice cream products to certain of Baskin-Robbins' international markets, and transitioned this manufacturing to existing third-party partner suppliers. 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, with the exception of the final settlement of our Canadian pension plan, which will likely occur in 2015. | |
The Company recorded cumulative costs related to the plant closure of $12.6 million, of which $654 thousand and $11.9 million were recorded in fiscal years 2013 and 2012, respectively. Costs recorded in fiscal year 2012 included $4.2 million of accelerated depreciation on property, plant, and equipment, $2.7 million of incremental ice cream production costs, $2.0 million of ongoing termination benefits, $1.1 million of one-time termination benefits, and $1.9 million of other costs related to the closing and transition. The accelerated depreciation and the incremental ice cream production costs are included in depreciation and cost of ice cream products, respectively, in the consolidated statements of operations, while all other costs are included in general and administrative expenses, net in the consolidated statements of operations. The Company also expects to incur additional costs of approximately $3.0 million to $4.0 million related to the final settlement of our Canadian Pension Plan (see note 18). |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||||||||
Allowance for Doubtful Accounts | Allowance for doubtful accounts | |||||||||
The changes in the allowance for doubtful accounts were as follows (in thousands): | ||||||||||
Accounts | Short-term notes and other | Long-term notes and other | ||||||||
receivable | receivables | receivables | ||||||||
Balance at December 31, 2011 | $ | 2,713 | 2,321 | — | ||||||
Provision for (recovery of) doubtful accounts, net | 513 | (1,055 | ) | — | ||||||
Write-offs and other | (743 | ) | (62 | ) | — | |||||
Balance at December 29, 2012 | 2,483 | 1,204 | — | |||||||
Provision for (recovery of) doubtful accounts, net | 1,015 | (339 | ) | 2,808 | ||||||
Write-offs and other | (899 | ) | (206 | ) | — | |||||
Balance at December 28, 2013 | 2,599 | 659 | 2,808 | |||||||
Provision for (recovery of) doubtful accounts, net | 1,796 | (14 | ) | 1,039 | ||||||
Write-offs and other | (513 | ) | 633 | 100 | ||||||
Balance at December 27, 2014 | $ | 3,882 | 1,278 | 3,947 | ||||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Income Statement [Abstract] | |||||||||||||
Quarterly Financial Data (unaudited) | Quarterly financial data (unaudited) | ||||||||||||
Three months ended | |||||||||||||
March 29, | June 28, | September 27, | December 27, | ||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Total revenues | $ | 171,948 | 190,908 | 192,640 | 193,213 | ||||||||
Operating income | 69,097 | 87,557 | 92,480 | 89,724 | |||||||||
Net income attributable to Dunkin' Brands | 22,956 | 46,191 | 54,697 | 52,513 | |||||||||
Earnings per share: | |||||||||||||
Common – basic | 0.22 | 0.44 | 0.52 | 0.5 | |||||||||
Common – diluted | 0.21 | 0.43 | 0.52 | 0.5 | |||||||||
Three months ended | |||||||||||||
March 30, | June 29, | September 28, | December 28, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Total revenues | $ | 161,858 | 182,488 | 186,317 | 183,177 | ||||||||
Operating income | 63,459 | 76,805 | 82,237 | 82,235 | |||||||||
Net income attributable to Dunkin' Brands | 23,798 | 40,812 | 40,221 | 42,072 | |||||||||
Earnings per share: | |||||||||||||
Common – basic | 0.22 | 0.38 | 0.38 | 0.39 | |||||||||
Common – diluted | 0.22 | 0.38 | 0.37 | 0.39 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
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 fiscal years 2014, 2013, and 2012 reflect the results of operations for the 52-week periods ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. | |||||||||||||||||||
Basis of Presentation and Consolidation | Basis of presentation and consolidation | ||||||||||||||||||
The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. | |||||||||||||||||||
We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities, the advertising funds (see note 4), and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method or are otherwise consolidated. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchise entities, with the exception of those noted below. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees (see note 17(b)), and future lease payments due from franchisees (see note 11). | |||||||||||||||||||
During fiscal year 2014, the Company entered into a temporary management agreement (“TMA”), under which the Company manages the operations of ten restaurants owned by a franchisee for a period up to two years. Based on the terms of the TMA, the Company has determined that the related franchisee is a VIE in which the Company is the primary beneficiary, and therefore, has consolidated the results of this franchisee. As of December 27, 2014, the consolidated balance sheet included $663 thousand of property and equipment, net, $1.1 million of goodwill, $1.4 million of long-term debt, and $355 thousand of other net liabilities for the franchise entity. | |||||||||||||||||||
The Company holds a 51% interest in a limited partnership that owns and operates Dunkin' Donuts restaurants in the Dallas, Texas area. The Company possesses control of this entity and, therefore, consolidates the results of the limited partnership. During fiscal year 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 in fiscal year 2013 to temporary equity (between liabilities and stockholders’ equity) in the consolidated balance sheets. The net loss and comprehensive loss attributable to the noncontrolling interest are presented separately in the consolidated statements of operations and comprehensive income, respectively. As of December 27, 2014, the consolidated balance sheets included $2.9 million of cash and cash equivalents and $10.9 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership. | |||||||||||||||||||
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 financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) income taxes, (d) share-based compensation, (e) lease accounting estimates, (f) gift certificate breakage, and (g) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents and restricted cash | ||||||||||||||||||
The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 27, 2014 and December 28, 2013, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. | |||||||||||||||||||
Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 27, 2014 and December 28, 2013 were $136.2 million and $134.5 million, respectively. | |||||||||||||||||||
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 counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $3.1 million and $5.3 million as of December 27, 2014 and December 28, 2013, 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 December 27, 2014 and December 28, 2013 are summarized as follows (in thousands): | |||||||||||||||||||
27-Dec-14 | 28-Dec-13 | ||||||||||||||||||
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 | $ | — | — | — | 1,012 | — | 1,012 | ||||||||||||
Company-owned life insurance | — | 2,975 | 2,975 | — | — | — | |||||||||||||
Interest rate swaps | — | — | — | — | 10,221 | 10,221 | |||||||||||||
Total assets | $ | — | 2,975 | 2,975 | 1,012 | 10,221 | 11,233 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
Total liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees (see note 18). 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 assets, which may include, company-owned life insurance policies and mutual 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 any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The changes in the fair value of any mutual funds were derived using quoted prices in active markets for the specific funds. As such, the mutual funds were classified within Level 1, as defined under U.S. GAAP. | |||||||||||||||||||
The Company used readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives included consideration of credit risk in the valuation. The Company used a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA were 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 was not a significant component of the fair value of the interest rate swaps as of December 28, 2013, it was not considered a significant input and the derivatives were classified as Level 2. | |||||||||||||||||||
The carrying value and estimated fair value of long-term debt as of December 27, 2014 and December 28, 2013 were as follows (in thousands): | |||||||||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||||||||
Financial liabilities | Carrying | Estimated | Carrying | Estimated | |||||||||||||||
value | fair value | value | fair value | ||||||||||||||||
Term loans | $ | 1,810,933 | 1,778,066 | 1,823,609 | 1,836,212 | ||||||||||||||
The estimated fair value of our term loans is 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. | |||||||||||||||||||
Inventories | Inventories | ||||||||||||||||||
Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. Inventories are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets. | |||||||||||||||||||
Assets Held for Sale | Assets held for sale | ||||||||||||||||||
Assets held for sale primarily represent costs incurred by the Company for store equipment and leasehold improvements constructed for sale to franchisees, as well as restaurants formerly operated by franchisees waiting to be resold. The value of such restaurants and related assets is reduced to reflect net recoverable values, with such reductions recorded to general and administrative expenses, net in the consolidated statements of operations. Generally, internal specialists estimate the amount to be recovered from the sale of such assets based on their knowledge of the (a) market in which the store is located, (b) results of the Company’s previous efforts to dispose of similar assets, and (c) current economic conditions. The actual cost of such assets held for sale is affected by specific factors such as the nature, age, location, and condition of the assets, as well as the economic environment and inflation. | |||||||||||||||||||
We classify restaurants and their related assets as held for sale and suspend depreciation and amortization when (a) we make a decision to refranchise or sell the property, (b) the stores are available for immediate sale, (c) we have begun an active program to locate a buyer, (d) significant changes to the plan of sale are not likely, and (e) the sale is probable within one year. Assets held for sale are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets. | |||||||||||||||||||
Property and Equipment | Property and equipment | ||||||||||||||||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows: | |||||||||||||||||||
Years | |||||||||||||||||||
Buildings | 20 – 35 | ||||||||||||||||||
Leasehold improvements | 5 – 20 | ||||||||||||||||||
Store, production, and other equipment and software | 3 – 10 | ||||||||||||||||||
Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated. | |||||||||||||||||||
Leases | Leases | ||||||||||||||||||
When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term. | |||||||||||||||||||
We record rent expense and rent income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rent income and rent expense as they are earned or accrued, respectively. | |||||||||||||||||||
We occasionally provide to our sublessees, or receive from our landlords, tenant improvement dollars. Tenant improvement dollars paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement dollars from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively. | |||||||||||||||||||
Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and charged to operations at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(j)). | |||||||||||||||||||
Impairment of Long-Lived Assets | Impairment of long-lived assets | ||||||||||||||||||
Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, by independent third-party valuation specialists, depending on the nature of the assets or asset group. | |||||||||||||||||||
Equity method investments | Equity method investments | ||||||||||||||||||
The Company's equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“BR Japan”), BR-Korea Co., Ltd. (“BR Korea”), Coffee Alliance, S.L. (“Spain JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. As a result of the acquisition of the Company by three private equity firms on March 1, 2006 (“BCT Acquisition”), the Company has recorded a step-up in the basis of our investment in BR Japan. The basis difference is comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill. The franchise rights and related tax liabilities are amortized in a manner that reflects the estimated benefits from the use of the intangible asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives. | |||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and other intangible assets | ||||||||||||||||||
Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them. | |||||||||||||||||||
We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired. | |||||||||||||||||||
Other intangible assets consist primarily of franchise and international license rights (“franchise rights”), ice cream distribution and territorial franchise agreement license rights (“license rights”), and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights, license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method. | |||||||||||||||||||
Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 17 years. | |||||||||||||||||||
Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(j)), or when such license or lease agreements are reduced or terminated. | |||||||||||||||||||
Contingencies | Contingencies | ||||||||||||||||||
The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred. | |||||||||||||||||||
Foreign Currency Translation | Foreign currency translation | ||||||||||||||||||
We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of comprehensive income and stockholders’ equity, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, Spain, China, and Brazil. Transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations. | |||||||||||||||||||
Revenue Recognition | Revenue recognition | ||||||||||||||||||
Franchise fees and royalty income | |||||||||||||||||||
Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. Our franchise agreements and SDAs typically require the franchisee to pay an initial nonrefundable fee and continuing fees, or royalty income, based upon a percentage of sales. The franchisee will typically pay us a renewal fee if we approve a renewal of the franchise agreement. Such fees are paid by franchisees to obtain the rights associated with these franchise agreements or SDAs. Initial franchise fee revenue is recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned, with deferred amounts expected to be recognized as revenue within one year classified as current deferred income in the consolidated balance sheets. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise agreement, SDA, or renewal agreement and, when appropriate, records the costs of such programs as reductions of revenue. | |||||||||||||||||||
For our international business, we sell master territory and/or license agreements that typically allow the master licensee to either act as the franchisee or to sub-franchise to other operators. Master license and territory fees are generally recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the first restaurant or as stores are opened, depending on the specific terms of the agreement. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which generally occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee or licensee becomes effective. | |||||||||||||||||||
Rental income | |||||||||||||||||||
Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid (see note 2(i)). The difference between the straight-line rent amounts and amounts receivable under the leases is recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Deferred contingent rentals are recorded as deferred income in current liabilities in the consolidated balance sheets. | |||||||||||||||||||
Sales of ice cream products | |||||||||||||||||||
We distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international locations. Revenue from the sale of ice cream products is recognized when title and risk of loss transfers to the buyer, which was generally upon shipment through November 2012. Beginning in December 2012, title and risk of loss generally transfers to the buyer upon delivery. | |||||||||||||||||||
Sales at company-owned restaurants | |||||||||||||||||||
Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes. | |||||||||||||||||||
Other revenues | |||||||||||||||||||
Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of our restaurants to new or existing franchisees. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity, and we are satisfied that the buyer can meet its financial obligations to us. If the criteria for gain recognition are not met, we defer the gain to the extent we have any remaining financial exposure in connection with the sale transaction. Deferred gains are recognized when the gain recognition criteria are met. | |||||||||||||||||||
Allowance for doubtful accounts | Allowance for doubtful accounts | ||||||||||||||||||
We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, lease, and licensing fee receivables. | |||||||||||||||||||
Share-Based Payment | Share-based payment | ||||||||||||||||||
We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. | |||||||||||||||||||
Income Taxes | Income taxes | ||||||||||||||||||
Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets. | |||||||||||||||||||
A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes. | |||||||||||||||||||
Comprehensive Income | Comprehensive income | ||||||||||||||||||
Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, gains and losses on interest rate swaps, and unrealized pension gains and losses, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented. | |||||||||||||||||||
Deferred Financing Costs | Deferred financing costs | ||||||||||||||||||
Deferred financing costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8). As of December 27, 2014 and December 28, 2013, deferred financing costs of $11.5 million and $19.2 million, respectively, are included in other assets in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt using the effective interest rate method | |||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative instruments and hedging activities | ||||||||||||||||||
The Company used derivative instruments to hedge interest rate risks which were terminated on December 23, 2014. These derivative contracts were entered into with financial institutions. The Company did not use derivative instruments for trading purposes and we had procedures in place to monitor and control their use. | |||||||||||||||||||
We recorded all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that were designated and qualified as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments was reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge was recorded in the consolidated statements of operations immediately. See note 9 for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information. | |||||||||||||||||||
Gift Card/Certificate Breakage | Gift card/certificate breakage | ||||||||||||||||||
The Company and our franchisees sell gift cards that are redeemable for product in our Dunkin' Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. | |||||||||||||||||||
There are no expiration dates on our gift cards, and we do not charge any service fees. While our franchisees continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, we may recognize income from unredeemed gift cards (“breakage income”) if they are not subject to unclaimed property laws. Based on redemption data available, breakage income for gift cards was generally recognized five years from the last date of activity on the card through the first quarter of fiscal year 2013. 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 on Dunkin' Donuts gift cards is now 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 incurred. Any incremental breakage that exceeds gift card program costs has been committed to franchisees 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 (see note 10). During fiscal year 2014, the Company revised the estimated breakage rates based on historical redemption patterns related to unredeemed Dunkin’ Donuts gift cards. This change in estimated breakage rates had no impact on breakage income recognized in fiscal year 2014, but resulted in a decrease in the gift card/certificate liability and a corresponding increase in the gift card breakage liability. | |||||||||||||||||||
For fiscal years 2014, 2013, and 2012, total breakage income recognized on gift cards, as well as historical gift certificate programs, was $8.5 million, $10.2 million, and $7.9 million, respectively, and is recorded as a reduction to general and administrative expenses, net. Breakage income for fiscal year 2013 includes a $5.4 million recovery of historical Dunkin' Donuts gift card program costs incurred prior to fiscal year 2013. Breakage income for fiscal year 2012 includes $3.5 million related to historical Baskin-Robbins gift certificates as a result of shifting to gift cards, and represents the balance of gift certificates for which the Company believes the likelihood of redemption by the customer is remote based on historical redemption patterns. | |||||||||||||||||||
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 December 27, 2014 and December 28, 2013, one master licensee, including its majority-owned subsidiaries, accounted for approximately 19% and 17%, respectively, of total accounts and notes receivable, which was due primarily to the timing of orders and shipments of ice cream to the master licensee. For fiscal year 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 10% of total revenues. No individual franchisee or master licensee accounted for more than 10% of total revenues for fiscal years 2013 or 2012. | |||||||||||||||||||
Recent Accounting Pronouncements | Recent accounting pronouncements | ||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. This guidance is effective for the Company in fiscal year 2017 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact the adoption of this new standard will have on the Company's accounting policies, consolidated financial statements, and related disclosures, and has not yet selected a transition method. | |||||||||||||||||||
Reclassifications | Reclassifications | ||||||||||||||||||
The Company has revised the presentation of certain income generating transactions, including gains on the sale of real estate and company-owned restaurants, that historically were recorded within general and administrative expense, net in the consolidated statements of operations. Income from these transactions totaling $2.8 million and $2.3 million have been reclassified into other operating income, net, for the fiscal years ended December 28, 2013 and December 29, 2012, respectively, in the consolidated statements of operations to conform to the current year presentation. There was no impact to total revenues, operating income, income before income taxes, or net income as a result of these reclassifications. | |||||||||||||||||||
The Company has also revised the presentation of certain asset captions within the consolidated balance sheets to conform to the current period presentation, including combining 'assets held for sale' with 'prepaid expenses and other current assets' and combining 'restricted cash' with 'other assets'. The revisions had no impact on total current assets or total assets. | |||||||||||||||||||
Additionally, the Company has revised the presentation of certain captions for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The revisions had no impact on net cash provided by (used in) operating, investing, or financing activities. | |||||||||||||||||||
Subsequent Events | Subsequent events | ||||||||||||||||||
Subsequent events have been evaluated up through the date that these consolidated financial statements were filed. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of December 27, 2014 and December 28, 2013 are summarized as follows (in thousands): | ||||||||||||||||||
27-Dec-14 | 28-Dec-13 | ||||||||||||||||||
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 | $ | — | — | — | 1,012 | — | 1,012 | ||||||||||||
Company-owned life insurance | — | 2,975 | 2,975 | — | — | — | |||||||||||||
Interest rate swaps | — | — | — | — | 10,221 | 10,221 | |||||||||||||
Total assets | $ | — | 2,975 | 2,975 | 1,012 | 10,221 | 11,233 | ||||||||||||
Liabilities: | |||||||||||||||||||
Deferred compensation liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
Total liabilities | $ | — | 8,488 | 8,488 | — | 7,181 | 7,181 | ||||||||||||
Schedule of Carrying Values and Fair Values of Debt | The carrying value and estimated fair value of long-term debt as of December 27, 2014 and December 28, 2013 were as follows (in thousands): | ||||||||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||||||||
Financial liabilities | Carrying | Estimated | Carrying | Estimated | |||||||||||||||
value | fair value | value | fair value | ||||||||||||||||
Term loans | $ | 1,810,933 | 1,778,066 | 1,823,609 | 1,836,212 | ||||||||||||||
Property and Equipment | Estimated useful lives are as follows: | ||||||||||||||||||
Years | |||||||||||||||||||
Buildings | 20 – 35 | ||||||||||||||||||
Leasehold improvements | 5 – 20 | ||||||||||||||||||
Store, production, and other equipment and software | 3 – 10 | ||||||||||||||||||
Property and equipment at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | |||||||||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||||||||
Land | $ | 33,927 | 34,052 | ||||||||||||||||
Buildings | 49,499 | 47,946 | |||||||||||||||||
Leasehold improvements | 147,996 | 154,491 | |||||||||||||||||
Store, production, and other equipment and software | 49,318 | 43,124 | |||||||||||||||||
Construction in progress | 5,736 | 9,079 | |||||||||||||||||
Property and equipment, gross | 286,476 | 288,692 | |||||||||||||||||
Accumulated depreciation | (104,415 | ) | (105,834 | ) | |||||||||||||||
Property and equipment, net | $ | 182,061 | 182,858 | ||||||||||||||||
Franchise_Fees_and_Royalty_Inc1
Franchise Fees and Royalty Income (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Disclosure Franchise Fees And Royalty Income [Abstract] | ||||||||||
Schedule Of Franchise Revenue Table | Franchise fees and royalty income consisted of the following (in thousands): | |||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Royalty income | $ | 438,074 | 411,428 | 385,713 | ||||||
Initial franchise fees and renewal income | 44,255 | 42,548 | 33,227 | |||||||
Total franchise fees and royalty income | $ | 482,329 | 453,976 | 418,940 | ||||||
Points of Distribution by Ownership Type | The changes in franchised and company-owned or company-operated points of distribution were as follows: | |||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Systemwide points of distribution: | ||||||||||
Franchised points of distribution in operation—beginning of year | 18,122 | 17,333 | 16,565 | |||||||
Franchised points of distribution - opened | 1,442 | 1,388 | 1,470 | |||||||
Franchised points of distribution - closed | (744 | ) | (600 | ) | (701 | ) | ||||
Net transfers from (to) company-owned or company-operated points of distribution | 1 | 1 | (1 | ) | ||||||
Franchised points of distribution in operation—end of year | 18,821 | 18,122 | 17,333 | |||||||
Company-owned or company-operated points of distribution—end of year | 41 | 36 | 35 | |||||||
Total systemwide points of distribution—end of year | 18,862 | 18,158 | 17,368 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||
Dec. 27, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property and Equipment | Estimated useful lives are as follows: | ||||||
Years | |||||||
Buildings | 20 – 35 | ||||||
Leasehold improvements | 5 – 20 | ||||||
Store, production, and other equipment and software | 3 – 10 | ||||||
Property and equipment at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | |||||||
December 27, 2014 | December 28, 2013 | ||||||
Land | $ | 33,927 | 34,052 | ||||
Buildings | 49,499 | 47,946 | |||||
Leasehold improvements | 147,996 | 154,491 | |||||
Store, production, and other equipment and software | 49,318 | 43,124 | |||||
Construction in progress | 5,736 | 9,079 | |||||
Property and equipment, gross | 286,476 | 288,692 | |||||
Accumulated depreciation | (104,415 | ) | (105,834 | ) | |||
Property and equipment, net | $ | 182,061 | 182,858 | ||||
Equity_method_investments_Tabl
Equity method investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Schedule of Equity Method Investments | The Company’s ownership interests in its equity method investments as of December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||
Entity | Ownership | ||||||||||||
BR Japan | 43.30% | ||||||||||||
BR Korea | 33.30% | ||||||||||||
Spain JV | 33.30% | ||||||||||||
Australia JV | 20.00% | ||||||||||||
The comparison between the carrying value of our investments in BR Japan and BR Korea and the underlying equity in net assets of those investments is presented in the table below (in thousands): | |||||||||||||
BR Japan | BR Korea | ||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Carrying value of investment | $ | 66,820 | 79,472 | 97,458 | 91,121 | ||||||||
Underlying equity in net assets of investment | 37,941 | 45,682 | 103,589 | 100,766 | |||||||||
Carrying value in excess of (less than) the underlying equity in net assets(a) | $ | 28,879 | 33,790 | (6,131 | ) | (9,645 | ) | ||||||
(a) | The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011. | ||||||||||||
Summary Financial Information For Joint Venture Operations | Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands): | ||||||||||||
December 27, | December 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 265,227 | $ | 261,546 | |||||||||
Current liabilities | 102,920 | 106,280 | |||||||||||
Working capital | 162,307 | 155,266 | |||||||||||
Property, plant, and equipment, net | 138,325 | 139,378 | |||||||||||
Other assets | 142,955 | 173,491 | |||||||||||
Long-term liabilities | 45,684 | 52,389 | |||||||||||
Equity of equity method investments | $ | 397,903 | 415,746 | ||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 669,416 | 673,537 | 687,676 | |||||||||
Net income | 39,835 | 51,407 | 51,046 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||
Dunkin’ Donuts U.S. | Dunkin’ Donuts International | Baskin-Robbins International | Total | ||||||||||||||||||||||||||||||||||
Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | Goodwill | Accumulated impairment charges | Net Balance | ||||||||||||||||||||||||||
Balances at December 29, 2012 | $ | 1,152,035 | (270,441 | ) | 881,594 | 10,306 | — | 10,306 | 24,037 | (24,037 | ) | — | 1,186,378 | (294,478 | ) | 891,900 | |||||||||||||||||||||
Goodwill disposed | (260 | ) | — | (260 | ) | — | — | — | — | — | — | (260 | ) | — | (260 | ) | |||||||||||||||||||||
Effects of foreign currency adjustments | — | — | — | (42 | ) | — | (42 | ) | — | — | — | (42 | ) | — | (42 | ) | |||||||||||||||||||||
Balances at December 28, 2013 | 1,151,775 | (270,441 | ) | 881,334 | 10,264 | — | 10,264 | 24,037 | (24,037 | ) | — | 1,186,076 | (294,478 | ) | 891,598 | ||||||||||||||||||||||
Goodwill acquired | 1,072 | — | 1,072 | — | — | — | — | — | — | 1,072 | — | 1,072 | |||||||||||||||||||||||||
Goodwill disposed | (1,248 | ) | — | (1,248 | ) | — | — | — | — | — | — | (1,248 | ) | — | (1,248 | ) | |||||||||||||||||||||
Effects of foreign currency adjustments | — | — | — | (52 | ) | — | (52 | ) | — | — | — | (52 | ) | — | (52 | ) | |||||||||||||||||||||
Balances at December 27, 2014 | $ | 1,151,599 | (270,441 | ) | 881,158 | 10,212 | — | 10,212 | 24,037 | (24,037 | ) | — | 1,185,848 | (294,478 | ) | 891,370 | |||||||||||||||||||||
Other Intangible Assets | Other intangible assets at December 27, 2014 consisted of the following (in thousands): | ||||||||||||||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||||||||||||||
average | carrying | amortization | carrying | ||||||||||||||||||||||||||||||||||
amortization | amount | amount | |||||||||||||||||||||||||||||||||||
period | |||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Definite-lived intangibles: | |||||||||||||||||||||||||||||||||||||
Franchise rights | 20 | $ | 382,520 | (179,481 | ) | 203,039 | |||||||||||||||||||||||||||||||
Favorable operating leases acquired | 17 | 67,119 | (35,711 | ) | 31,408 | ||||||||||||||||||||||||||||||||
License rights | 10 | 6,230 | (5,850 | ) | 380 | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible: | |||||||||||||||||||||||||||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||||||||||||||||||||||||||
$ | 1,646,839 | (221,042 | ) | 1,425,797 | |||||||||||||||||||||||||||||||||
Other intangible assets at December 28, 2013 consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||||||||||||||
average | carrying | amortization | carrying | ||||||||||||||||||||||||||||||||||
amortization | amount | amount | |||||||||||||||||||||||||||||||||||
period | |||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Definite-lived intangibles: | |||||||||||||||||||||||||||||||||||||
Franchise rights | 20 | $ | 383,465 | (159,719 | ) | 223,746 | |||||||||||||||||||||||||||||||
Favorable operating leases acquired | 16 | 71,788 | (35,653 | ) | 36,135 | ||||||||||||||||||||||||||||||||
License rights | 10 | 6,230 | (4,876 | ) | 1,354 | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible: | |||||||||||||||||||||||||||||||||||||
Trade names | N/A | 1,190,970 | — | 1,190,970 | |||||||||||||||||||||||||||||||||
$ | 1,652,453 | (200,248 | ) | 1,452,205 | |||||||||||||||||||||||||||||||||
Total Estimated Amortization Expense | Total estimated amortization expense for other intangible assets for fiscal years 2015 through 2019 is as follows (in thousands): | ||||||||||||||||||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||||||||||||||||||
2015 | $ | 24,943 | |||||||||||||||||||||||||||||||||||
2016 | 22,108 | ||||||||||||||||||||||||||||||||||||
2017 | 21,353 | ||||||||||||||||||||||||||||||||||||
2018 | 21,209 | ||||||||||||||||||||||||||||||||||||
2019 | 20,774 | ||||||||||||||||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Schedule of Long-term Debt Instruments | Debt at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | |||||||||
December 27, | December 28, | |||||||||
2014 | 2013 | |||||||||
Term loans | $ | 1,809,554 | 1,823,609 | |||||||
VIE debt (see note 2(b)) | 1,379 | — | ||||||||
Total debt | 1,810,933 | 1,823,609 | ||||||||
Less current portion of long-term debt | 3,852 | 5,000 | ||||||||
Total long-term debt | $ | 1,807,081 | 1,818,609 | |||||||
Schedule of Maturities of Long-term Debt | Considering the January 2015 refinancing, and assuming repayment by the anticipated repayment dates, the aggregate contractual principal payments of the Class A-2 Notes for 2015 through 2019 are as follows (in thousands): | |||||||||
Class A-2-I Notes | Class A-2-II Notes | Total | ||||||||
2015 | $ | 5,625 | 13,125 | 18,750 | ||||||
2016 | 7,500 | 17,500 | 25,000 | |||||||
2017 | 7,500 | 17,500 | 25,000 | |||||||
2018 | 7,500 | 17,500 | 25,000 | |||||||
2019 | 721,875 | 17,500 | 739,375 | |||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments consisted of the following (in thousands): | ||||||||||||
December 27, | December 28, | Consolidated balance sheet classification | |||||||||||
2014 | 2013 | ||||||||||||
Interest rate swaps - asset | $ | — | 10,221 | Other assets | |||||||||
Total fair values of derivative instruments - asset | $ | — | 10,221 | ||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2014: | ||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | (8,085 | ) | (4,108 | ) | Interest expense | (3,977 | ) | |||||
Income tax effect | 3,269 | 1,661 | Provision for income taxes | 1,608 | |||||||||
Net of income taxes | $ | (4,816 | ) | (2,447 | ) | (2,369 | ) | ||||||
The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2013: | |||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | 9,648 | (3,382 | ) | Interest expense | 13,030 | |||||||
Income tax effect | (3,909 | ) | 1,381 | Provision for income taxes | (5,290 | ) | |||||||
Net of income taxes | $ | 5,739 | (2,001 | ) | 7,740 | ||||||||
The table below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2012: | |||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive income (loss) | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income (loss) | |||||||||
Interest rate swaps | $ | (3,673 | ) | (864 | ) | Interest expense | (2,809 | ) | |||||
Income tax effect | 1,509 | 355 | Provision for income taxes | 1,154 | |||||||||
Net of income taxes | $ | (2,164 | ) | (509 | ) | (1,655 | ) |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||
Dec. 27, 2014 | |||||||
Other Liabilities, Current [Abstract] | |||||||
Other Current Liabilities | Other current liabilities at December 27, 2014 and December 28, 2013 consisted of the following (in thousands): | ||||||
December 27, | December 28, | ||||||
2014 | 2013 | ||||||
Gift card/certificate liability | $ | 151,127 | 139,721 | ||||
Gift card breakage liability | 25,893 | 14,093 | |||||
Accrued salary and benefits | 21,632 | 26,713 | |||||
Accrued legal liabilities (see note 17(d)) | 24,648 | 26,633 | |||||
Accrued interest | 8,351 | 9,999 | |||||
Accrued professional costs | 9,381 | 2,938 | |||||
Other | 17,860 | 28,821 | |||||
Total other current liabilities | $ | 258,892 | 248,918 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Leases [Abstract] | ||||||||||||||
Schedule of Capital Leased Assets | Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands): | |||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Leased property under capital leases (included in property and equipment) | $ | 8,982 | 7,888 | |||||||||||
Accumulated depreciation | (2,872 | ) | (2,326 | ) | ||||||||||
Net leased property under capital leases | $ | 6,110 | 5,562 | |||||||||||
Capital lease obligations: | ||||||||||||||
Current | $ | 506 | 432 | |||||||||||
Long-term | 7,575 | 6,996 | ||||||||||||
Total capital lease obligations | $ | 8,081 | 7,428 | |||||||||||
Leases of Lessor in Balance Sheet | Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands): | |||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Land | $ | 28,235 | 29,701 | |||||||||||
Buildings | 43,835 | 41,721 | ||||||||||||
Leasehold improvements | 140,171 | 135,177 | ||||||||||||
Store, production, and other equipment | 184 | 146 | ||||||||||||
Construction in progress | 1,482 | 1,363 | ||||||||||||
Assets leased to others, gross | 213,907 | 208,108 | ||||||||||||
Accumulated depreciation | (75,607 | ) | (71,535 | ) | ||||||||||
Assets leased to others, net | $ | 138,300 | 136,573 | |||||||||||
Schedule of Future Minimum Retal Payments and Receipts for Capital and Operating Leases | Future minimum rental commitments to be paid and received by the Company at December 27, 2014 for all noncancelable leases and subleases are as follows (in thousands): | |||||||||||||
Payments | Receipts | Net | ||||||||||||
Capital | Operating | Subleases | leases | |||||||||||
leases | leases | |||||||||||||
Fiscal year: | ||||||||||||||
2015 | $ | 1,262 | 54,403 | (65,327 | ) | (9,662 | ) | |||||||
2016 | 1,266 | 53,909 | (65,423 | ) | (10,248 | ) | ||||||||
2017 | 1,288 | 53,287 | (65,261 | ) | (10,686 | ) | ||||||||
2018 | 1,304 | 52,126 | (64,105 | ) | (10,675 | ) | ||||||||
2019 | 1,128 | 50,746 | (61,233 | ) | (9,359 | ) | ||||||||
Thereafter | 8,880 | 401,707 | (373,266 | ) | 37,321 | |||||||||
Total minimum rental commitments | 15,128 | $ | 666,178 | (694,615 | ) | (13,309 | ) | |||||||
Less amount representing interest | 7,047 | |||||||||||||
Present value of minimum capital lease obligations | $ | 8,081 | ||||||||||||
Schedule of Rent Expense | Total rental expense for all operating leases consisted of the following (in thousands): | |||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Base rentals | $ | 53,130 | 53,462 | 52,821 | ||||||||||
Contingent rentals | 6,071 | 5,869 | 5,227 | |||||||||||
Total rental expense | $ | 59,201 | 59,331 | 58,048 | ||||||||||
Schedule of Rental Income | Total rental income for all leases and subleases consisted of the following (in thousands): | |||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Base rentals | $ | 67,945 | 66,540 | 67,988 | ||||||||||
Contingent rentals | 29,718 | 29,542 | 28,828 | |||||||||||
Total rental income | $ | 97,663 | 96,082 | 96,816 | ||||||||||
Schedule of Unfavorable Operating Leases | The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands): | |||||||||||||
Fiscal year ended | ||||||||||||||
December 27, | December 28, | December 29, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Increase in rental income | $ | 847 | 973 | 1,065 | ||||||||||
Decrease in rental expense | 1,188 | 1,204 | 1,287 | |||||||||||
Total increase in operating income | $ | 2,035 | 2,177 | 2,352 | ||||||||||
Impact of Amortization of Unfavorable Operating Leases | Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next five years (in thousands): | |||||||||||||
Decrease in | Increase in | Total increase | ||||||||||||
rental expense | rental income | in operating | ||||||||||||
income | ||||||||||||||
Fiscal year: | ||||||||||||||
2015 | $ | 940 | 789 | 1,729 | ||||||||||
2016 | 885 | 719 | 1,604 | |||||||||||
2017 | 885 | 681 | 1,566 | |||||||||||
2018 | 851 | 632 | 1,483 | |||||||||||
2019 | 731 | 583 | 1,314 | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Information by Segment and Geographical Area | Revenues by segment were as follows (in thousands): | |||||||||
Revenues | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 548,697 | 521,179 | 485,399 | ||||||
Dunkin’ Donuts International | 19,867 | 18,316 | 15,485 | |||||||
Baskin-Robbins U.S. | 43,158 | 42,152 | 42,074 | |||||||
Baskin-Robbins International | 122,456 | 120,333 | 101,975 | |||||||
Total reportable segment revenues | 734,178 | 701,980 | 644,933 | |||||||
Other | 14,531 | 11,860 | 13,248 | |||||||
Total revenues | $ | 748,709 | 713,840 | 658,181 | ||||||
Revenues for foreign countries are represented by the Dunkin’ Donuts International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented. | ||||||||||
Expenses included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services. The “Operating income adjustments excluded from reportable segments” amounts for fiscal year 2013 below include the $7.5 million charge related to the third-party product volume guarantee (see note 17(b)), and amounts for fiscal year 2012 below include $20.7 million related to the Bertico litigation (see note 17(d)), $14.0 million related to the closure of the Peterborough Plant (see note 20), and $4.8 million of transaction costs and incremental share-based compensation related to secondary offerings (see notes 13(a) and 14). Segment profit by segment was as follows (in thousands): | ||||||||||
Segment profit | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 403,591 | 374,435 | 341,776 | ||||||
Dunkin’ Donuts International | 12,103 | 7,453 | 9,636 | |||||||
Baskin-Robbins U.S. | 27,496 | 26,608 | 25,351 | |||||||
Baskin-Robbins International | 42,792 | 54,237 | 45,759 | |||||||
Total reportable segments | 485,982 | 462,733 | 422,522 | |||||||
Corporate and other | (120,026 | ) | (122,337 | ) | (115,365 | ) | ||||
Interest expense, net | (67,824 | ) | (79,831 | ) | (73,488 | ) | ||||
Amortization of other intangible assets | (25,760 | ) | (26,943 | ) | (26,943 | ) | ||||
Long-lived asset impairment charges | (1,484 | ) | (563 | ) | (1,278 | ) | ||||
Loss on debt extinguishment and refinancing transactions | (13,735 | ) | (5,018 | ) | (3,963 | ) | ||||
Other gains (losses), net | (1,566 | ) | (1,799 | ) | 23 | |||||
Operating income adjustments excluded from reportable segments | 146 | (8,154 | ) | (39,507 | ) | |||||
Income before income taxes | $ | 255,733 | 218,088 | 162,001 | ||||||
Net income of equity method investments, including amortization on intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Expenses included in “Other” in the segment profit table below represent the reduction in depreciation and amortization, net of tax, reported by BR Korea (see note 6), as a result of the impairment charge recorded 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 of equity method investments | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts International | $ | 1,794 | 480 | 2,211 | ||||||
Baskin-Robbins International | 11,912 | 15,913 | 16,578 | |||||||
Total reportable segments | 13,706 | 16,393 | 18,789 | |||||||
Other | 1,140 | 1,977 | 3,562 | |||||||
Total net income of equity method investments | $ | 14,846 | 18,370 | 22,351 | ||||||
Depreciation is reflected in segment profit for each reportable segment. Depreciation by reportable segments was as follows (in thousands): | ||||||||||
Depreciation | ||||||||||
Fiscal year ended | ||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | ||||||||
Dunkin’ Donuts U.S. | $ | 12,207 | 12,816 | 13,498 | ||||||
Dunkin’ Donuts International | 11 | 26 | 34 | |||||||
Baskin-Robbins U.S. | 288 | 473 | 923 | |||||||
Baskin-Robbins International | 62 | 84 | 562 | |||||||
Total reportable segments | 12,568 | 13,399 | 15,017 | |||||||
Corporate and other | 7,211 | 9,024 | 14,067 | |||||||
Total depreciation | $ | 19,779 | 22,423 | 29,084 | ||||||
Property and equipment, net by geographic region as of December 27, 2014 and December 28, 2013 is based on the physical locations within the indicated geographic regions and are as follows (in thousands): | ||||||||||
December 27, 2014 | December 28, 2013 | |||||||||
United States | $ | 181,898 | 182,544 | |||||||
International | 163 | 314 | ||||||||
Total property and equipment, net | $ | 182,061 | 182,858 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Changes in Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss) were as follows (in thousands): | |||||||||||||||
Effect of | Gain (loss) on interest rate swaps | Unrealized gain (loss) on pension plan | Other | Accumulated | ||||||||||||
foreign | other | |||||||||||||||
currency | comprehensive | |||||||||||||||
translation | income (loss) | |||||||||||||||
Balances at December 28, 2013 | $ | 5 | 6,085 | (3,098 | ) | (1,653 | ) | 1,339 | ||||||||
Other comprehensive income (loss) | (13,743 | ) | (2,369 | ) | 224 | 572 | (15,316 | ) | ||||||||
Balances at December 27, 2014 | $ | (13,738 | ) | 3,716 | (2,874 | ) | (1,081 | ) | (13,977 | ) | ||||||
Schedule of Dividends Paid | During fiscal year 2014, the Company paid dividends on common stock as follows: | |||||||||||||||
Dividend per share | Total amount (in thousands) | Payment date | ||||||||||||||
Fiscal year 2014: | ||||||||||||||||
First quarter | $ | 0.23 | $ | 24,520 | 19-Mar-14 | |||||||||||
Second quarter | 0.23 | 24,239 | 4-Jun-14 | |||||||||||||
Third quarter | 0.23 | 23,997 | 3-Sep-14 | |||||||||||||
Fourth quarter | 0.23 | 24,019 | December 3, 2014 | |||||||||||||
During fiscal year 2013, the Company paid dividends on common stock as follows: | ||||||||||||||||
Dividend per share | Total amount (in thousands) | Payment date | ||||||||||||||
Fiscal year 2013: | ||||||||||||||||
First quarter | $ | 0.19 | $ | 20,191 | 20-Feb-13 | |||||||||||
Second quarter | 0.19 | 20,259 | 6-Jun-13 | |||||||||||||
Third quarter | 0.19 | 20,257 | 4-Sep-13 | |||||||||||||
Fourth quarter | 0.19 | 20,301 | November 26, 2013 | |||||||||||||
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Total share based compensation expense | Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands): | ||||||||||||
Fiscal year ended | |||||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | |||||||||||
2006 Plan stock options—executive | $ | 434 | 977 | 4,245 | |||||||||
2006 Plan stock options—nonexecutive | 131 | 162 | 181 | ||||||||||
2011 Plan stock options | 6,847 | 4,668 | 2,026 | ||||||||||
2011 Plan restricted shares | 1,456 | — | — | ||||||||||
Restricted stock units | 2,419 | 1,513 | 336 | ||||||||||
Other | — | 3 | 132 | ||||||||||
Total share-based compensation | $ | 11,287 | 7,323 | 6,920 | |||||||||
Total related tax benefit | $ | 4,567 | 2,958 | 2,768 | |||||||||
Summary of valuation assumptions | The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2014, 2013 or 2012. | ||||||||||||
The following weighted average assumptions were utilized in determining the fair value of 2011 Plan options granted during fiscal years 2014, 2013, and 2012: | |||||||||||||
Fiscal year ended | |||||||||||||
December 27, 2014 | December 28, 2013 | December 29, 2012 | |||||||||||
Weighted average grant-date fair value of share options granted | $ | 10.65 | $ | 9.92 | $ | 10.65 | |||||||
Weighted average assumptions: | |||||||||||||
Risk-free interest rate | 1.5 | % | 1.2 | % | 0.8%-1.4% | ||||||||
Expected volatility | 26.3 | % | 33 | % | 43 | % | |||||||
Dividend yield | 1.8 | % | 2 | % | 1.8%-2.1% | ||||||||
Expected term (years) | 4.96 | 6.25 | 6.25 | ||||||||||
Summary of status of nonexecutive and 2011 Plan options | A summary of the status of the Company’s executive stock options as of December 27, 2014 and changes during fiscal year 2014 are presented below: | ||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
shares | average | average | intrinsic | ||||||||||
exercise | remaining | value | |||||||||||
price | contractual | (in millions) | |||||||||||
term (years) | |||||||||||||
Share options outstanding at December 28, 2013 | 2,205,947 | $ | 3.64 | 6.3 | |||||||||
Exercised | (550,782 | ) | 3.46 | ||||||||||
Forfeited or expired | (7,007 | ) | 7.31 | ||||||||||
Share options outstanding at December 27, 2014 | 1,648,158 | 3.68 | 5.3 | $ | 63.8 | ||||||||
Share options exercisable at December 27, 2014 | 1,338,605 | 3.33 | 5.2 | 52.3 | |||||||||
A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 27, 2014 and changes during fiscal year 2014 is presented below: | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
shares | average | average | intrinsic | ||||||||||
exercise | remaining | value | |||||||||||
price | contractual | (in millions) | |||||||||||
term (years) | |||||||||||||
Share options outstanding at December 28, 2013 | 2,019,150 | $ | 31.45 | 8.5 | |||||||||
Granted | 1,406,308 | 51.67 | |||||||||||
Exercised | (141,924 | ) | 22.51 | ||||||||||
Forfeited or expired | (266,765 | ) | 35.76 | ||||||||||
Share options outstanding at December 27, 2014 | 3,016,769 | 40.91 | 6.9 | $ | 17.1 | ||||||||
Share options exercisable at December 27, 2014 | 607,765 | 28.42 | 7.1 | 8.5 | |||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary of changes in resticted shares | A summary of the changes in the Company’s restricted stock units during fiscal year 2014 is presented below: | ||||||||||||
Number of | Weighted average grant-date fair value | Weighted | Aggregate | ||||||||||
shares | average | intrinsic | |||||||||||
remaining | value | ||||||||||||
contractual | (in millions) | ||||||||||||
term (years) | |||||||||||||
Nonvested restricted stock units at December 28, 2013 | 102,971 | $ | 37.2 | 1.8 | |||||||||
Granted | 76,381 | 50.15 | |||||||||||
Vested | (45,837 | ) | 38.74 | ||||||||||
Forfeited | (11,032 | ) | 34.93 | ||||||||||
Nonvested restricted stock units at December 27, 2014 | 122,483 | 43.4 | 1.5 | $ | 5.2 | ||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
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): | |||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to Dunkin' Brands—basic and diluted | $ | 176,357 | 146,903 | 108,308 | ||||||
Weighted average number of common shares: | ||||||||||
Common—basic | 105,398,899 | 106,501,733 | 114,584,063 | |||||||
Common—diluted | 106,705,778 | 108,217,011 | 116,573,344 | |||||||
Earnings per common share: | ||||||||||
Common—basic | $ | 1.67 | 1.38 | 0.94 | ||||||
Common—diluted | 1.65 | 1.36 | 0.93 | |||||||
The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,306,879, 1,715,278, and 1,989,281 equity awards for fiscal years 2014, 2013, and 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 equity awards outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 27, 2014, there were 150,000 restricted shares that were performance-based and for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no equity 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 1,373,379, 1,100,275, and 805,015 equity awards for fiscal years 2014, 2013, and 2012, respectively, as they would be antidilutive. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands): | ||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic operations | $ | 231,549 | 195,277 | 172,576 | |||||||||
Foreign operations | 24,184 | 22,811 | (10,575 | ) | |||||||||
Income before income taxes | $ | 255,733 | 218,088 | 162,001 | |||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows (in thousands): | ||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 82,925 | 70,696 | 52,657 | |||||||||
State | 23,146 | 11,758 | 6,065 | ||||||||||
Foreign | (1,262 | ) | 2,521 | 2,601 | |||||||||
Current tax provision | $ | 104,809 | 84,975 | 61,323 | |||||||||
Deferred: | |||||||||||||
Federal | $ | (22,644 | ) | (11,915 | ) | (5,071 | ) | ||||||
State | (1,861 | ) | (984 | ) | 4,373 | ||||||||
Foreign | (134 | ) | (292 | ) | (6,248 | ) | |||||||
Deferred tax benefit | (24,639 | ) | (13,191 | ) | (6,946 | ) | |||||||
Provision for income taxes | $ | 80,170 | 71,784 | 54,377 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes from continuing operations differed from the expense computed using the statutory federal income tax rate of 35% due to the following: | ||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed federal income tax expense, at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 5.7 | 4.7 | 5.2 | ||||||||||
Benefits and taxes related to foreign operations | (3.5 | ) | (4.3 | ) | (2.9 | ) | |||||||
Conversion of foreign subsidiary | (3.3 | ) | — | — | |||||||||
Other permanent differences | 0.1 | 0.2 | 0.7 | ||||||||||
Changes in enacted tax rates and apportionment | 0.1 | 0.8 | 2.8 | ||||||||||
Uncertain tax positions | (2.5 | ) | (3.2 | ) | (6.3 | ) | |||||||
Other, net | (0.3 | ) | (0.3 | ) | (0.9 | ) | |||||||
Effective tax rate | 31.3 | % | 32.9 | % | 33.6 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): | ||||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||||
Deferred tax | Deferred tax | Deferred tax | Deferred tax | ||||||||||
assets | liabilities | assets | liabilities | ||||||||||
Current: | |||||||||||||
Allowance for doubtful accounts | $ | 3,377 | — | 1,055 | — | ||||||||
Deferred gift cards and certificates | 20,549 | — | 20,371 | — | |||||||||
Rent | 5,480 | — | 5,307 | — | |||||||||
Deferred income | 4,900 | — | 4,672 | — | |||||||||
Other current liabilities | 13,033 | — | 13,983 | — | |||||||||
Capital loss | 179 | — | — | — | |||||||||
Other | 2,466 | 768 | 1,073 | — | |||||||||
Total current | 49,984 | 768 | 46,461 | — | |||||||||
Noncurrent: | |||||||||||||
Capital leases | 3,066 | — | 2,830 | — | |||||||||
Rent | 3,442 | — | 2,243 | — | |||||||||
Property and equipment | — | 4,451 | — | 6,315 | |||||||||
Deferred compensation liabilities | 10,645 | — | 7,747 | — | |||||||||
Deferred income | 5,410 | — | 4,234 | — | |||||||||
Real estate reserves | 1,223 | — | 1,287 | — | |||||||||
Franchise rights and other intangibles | — | 567,751 | — | 576,567 | |||||||||
Unused foreign tax credits | 8,122 | — | 6,756 | — | |||||||||
Other | 637 | — | 1,103 | 4,322 | |||||||||
32,545 | 572,202 | 26,200 | 587,204 | ||||||||||
Valuation allowance | (682 | ) | — | (710 | ) | — | |||||||
Total noncurrent | 31,863 | 572,202 | 25,490 | 587,204 | |||||||||
Total current and noncurrent | $ | 81,847 | 572,970 | 71,951 | 587,204 | ||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Fiscal year ended | |||||||||||||
December 27, | December 28, | December 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 8,213 | 15,428 | 41,379 | |||||||||
Increases related to prior year tax positions | 488 | 855 | 2,063 | ||||||||||
Increases related to current year tax positions | 96 | 219 | 1,389 | ||||||||||
Decreases related to prior year tax positions | (4,567 | ) | (3,091 | ) | (19,675 | ) | |||||||
Decreases related to settlements | (296 | ) | (4,797 | ) | (9,792 | ) | |||||||
Lapses of statutes of limitations | — | — | (27 | ) | |||||||||
Effect of foreign currency adjustments | (262 | ) | (401 | ) | 91 | ||||||||
Balance at end of year | $ | 3,672 | 8,213 | 15,428 | |||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||
Components of Net Pension Expense | The components of net pension expense were as follows (in thousands): | |||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Service cost | $ | — | — | 262 | ||||||
Interest cost | 207 | 216 | 333 | |||||||
Expected return on plan assets | (208 | ) | (263 | ) | (317 | ) | ||||
Amortization of net actuarial loss | 87 | 74 | 76 | |||||||
Net pension expense | $ | 86 | 27 | 354 | ||||||
Summary of Other Balances | The table below summarizes other balances for fiscal years 2014, 2013, and 2012 (in thousands): | |||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Change in benefit obligation: | ||||||||||
Benefit obligation, beginning of year | $ | 8,200 | 8,349 | 6,050 | ||||||
Service cost | — | — | 262 | |||||||
Interest cost | 207 | 216 | 333 | |||||||
Employee contributions | — | — | 88 | |||||||
Benefits paid | (208 | ) | (230 | ) | (275 | ) | ||||
Curtailment gain | — | — | (1,084 | ) | ||||||
Actuarial loss | 81 | 395 | 2,854 | |||||||
Foreign currency loss (gain), net | (681 | ) | (530 | ) | 121 | |||||
Benefit obligation, end of year | $ | 7,599 | 8,200 | 8,349 | ||||||
Change in plan assets: | ||||||||||
Fair value of plan assets, beginning of year | $ | 5,790 | 5,809 | 4,945 | ||||||
Expected return on plan assets | 208 | 263 | 317 | |||||||
Employer contributions | 898 | 626 | 662 | |||||||
Employee contributions | — | — | 88 | |||||||
Benefits paid | (208 | ) | (230 | ) | (275 | ) | ||||
Actuarial loss | 308 | (371 | ) | (27 | ) | |||||
Foreign currency gain (loss), net | (540 | ) | (307 | ) | 99 | |||||
Fair value of plan assets, end of year | $ | 6,456 | 5,790 | 5,809 | ||||||
Reconciliation of funded status: | ||||||||||
Funded status | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Net amount recognized at end of period | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Amounts recognized in the balance sheet consist of: | ||||||||||
Accrued benefit cost | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Net amount recognized at end of period | $ | (1,143 | ) | (2,410 | ) | (2,540 | ) | |||
Allocation of Assets Within the Pooled Fund | The allocation of the assets within the plan consisted of the following: | |||||||||
December 27, | December 28, | |||||||||
2014 | 2013 | |||||||||
Cash and short-term investments | 34 | % | 35 | % | ||||||
Debt securities | 66 | 65 | ||||||||
Schedule of Assumptions Used | The key actuarial assumption used in determining the present value of accrued pension benefits was a discount rate of 2.65% at both December 27, 2014 and December 28, 2013. | |||||||||
The actuarial assumptions used in determining the present value of our net periodic benefit cost were as follows: | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
Discount rate | 2.65 | % | 2.7 | % | 5.25 | % | ||||
Average salary increase for pensionable earnings | — | — | 3.25 | |||||||
Expected return on plan assets | 3.5 | 4.5 | 6 | |||||||
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Disclosure Related Party Transactions [Abstract] | ||||||||||
Related Party Transactions | The Company recognized royalty income from its equity method investees as follows (in thousands): | |||||||||
Fiscal year ended | ||||||||||
December 27, | December 28, | December 29, | ||||||||
2014 | 2013 | 2012 | ||||||||
BR Japan | $ | 1,790 | 2,097 | 2,549 | ||||||
BR Korea | 4,602 | 4,156 | 3,662 | |||||||
Spain JV | 123 | 130 | — | |||||||
$ | 6,515 | 6,383 | 6,211 | |||||||
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 12 Months Ended | |||||||||
Dec. 27, 2014 | ||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||||||||
Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts were as follows (in thousands): | |||||||||
Accounts | Short-term notes and other | Long-term notes and other | ||||||||
receivable | receivables | receivables | ||||||||
Balance at December 31, 2011 | $ | 2,713 | 2,321 | — | ||||||
Provision for (recovery of) doubtful accounts, net | 513 | (1,055 | ) | — | ||||||
Write-offs and other | (743 | ) | (62 | ) | — | |||||
Balance at December 29, 2012 | 2,483 | 1,204 | — | |||||||
Provision for (recovery of) doubtful accounts, net | 1,015 | (339 | ) | 2,808 | ||||||
Write-offs and other | (899 | ) | (206 | ) | — | |||||
Balance at December 28, 2013 | 2,599 | 659 | 2,808 | |||||||
Provision for (recovery of) doubtful accounts, net | 1,796 | (14 | ) | 1,039 | ||||||
Write-offs and other | (513 | ) | 633 | 100 | ||||||
Balance at December 27, 2014 | $ | 3,882 | 1,278 | 3,947 | ||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Income Statement [Abstract] | |||||||||||||
Schedule of Quarterly Financial Data | |||||||||||||
Three months ended | |||||||||||||
March 29, | June 28, | September 27, | December 27, | ||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Total revenues | $ | 171,948 | 190,908 | 192,640 | 193,213 | ||||||||
Operating income | 69,097 | 87,557 | 92,480 | 89,724 | |||||||||
Net income attributable to Dunkin' Brands | 22,956 | 46,191 | 54,697 | 52,513 | |||||||||
Earnings per share: | |||||||||||||
Common – basic | 0.22 | 0.44 | 0.52 | 0.5 | |||||||||
Common – diluted | 0.21 | 0.43 | 0.52 | 0.5 | |||||||||
Three months ended | |||||||||||||
March 30, | June 29, | September 28, | December 28, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Total revenues | $ | 161,858 | 182,488 | 186,317 | 183,177 | ||||||||
Operating income | 63,459 | 76,805 | 82,237 | 82,235 | |||||||||
Net income attributable to Dunkin' Brands | 23,798 | 40,812 | 40,221 | 42,072 | |||||||||
Earnings per share: | |||||||||||||
Common – basic | 0.22 | 0.38 | 0.38 | 0.39 | |||||||||
Common – diluted | 0.22 | 0.38 | 0.37 | 0.39 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Financial reporting and operating period, year | 364 days | 364 days | 364 days | |
Financial reporting and operating period, quarter | 91 days | |||
Property and equipment, net | $182,061,000 | $182,858,000 | ||
Goodwill | 891,370,000 | 891,598,000 | 891,900,000 | |
Carrying value of long term debt | 1,810,933,000 | 1,823,609,000 | ||
Percentage of ownership | 51.00% | |||
Cash held, related to advertising funds and gift card/certificate programs | 136,200,000 | 134,500,000 | ||
Carrying value of long term receivables | 3,100,000 | 5,300,000 | ||
Fair value of long term debt | 1,778,066,000 | 1,836,212,000 | ||
Amortization period of unfavorable operating leases | 17 years | |||
Deferred financing costs | 11,500,000 | 19,200,000 | ||
Income recognized on gift cards and gift ceritificate breakage | 8,500,000 | 10,200,000 | 7,900,000 | |
Cash and cash equivalents | 208,080,000 | 256,933,000 | 252,618,000 | 246,715,000 |
Income reclassified into operating income | 2,800,000 | 2,300,000 | ||
Customer Concentration Risk [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Concentration risk, percentage | 19.00% | 17.00% | ||
Customer Concentration Risk [Member] | Sales [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Number of customers | 1 | 0 | 0 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Number of customers | 1 | 1 | ||
Minimum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Financial reporting and operating period, year | 364 days | |||
Maximum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Financial reporting and operating period, year | 371 days | |||
Dunkin' Donuts | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Income recognized on gift cards and gift ceritificate breakage | 5,400,000 | |||
Baskin Robbins [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Income recognized on gift cards and gift ceritificate breakage | 3,500,000 | |||
Building [Member] | Minimum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 20 years | |||
Building [Member] | Maximum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 35 years | |||
Leaseholds and Leasehold Improvements [Member] | Minimum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 5 years | |||
Leaseholds and Leasehold Improvements [Member] | Maximum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 20 years | |||
Store, Production, Other Equipment and Software [Member] | Minimum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 3 years | |||
Store, Production, Other Equipment and Software [Member] | Maximum [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 10 years | |||
Equity Method Investments [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Finite-lived intangible asset, useful life | 14 years | |||
Partnership [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Property and equipment, net | 10,900,000 | |||
Cash and cash equivalents | 2,900,000 | |||
Variable Interest Entity [Member] | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Property and equipment, net | 663,000 | |||
Goodwill | 1,100,000 | |||
Carrying value of long term debt | 1,400,000 | |||
Other liabilities | $355,000 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | $2,975 | $11,233 |
Liabilities | 8,488 | 7,181 |
Mutual funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 0 | 1,012 |
Company-owned Life Insurance [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 2,975 | 0 |
Interest rate swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 0 | 10,221 |
Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | 8,488 | 7,181 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 0 | 1,012 |
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 | 0 | 1,012 |
Quoted prices in active markets for identical assets (Level 1) | Company-owned Life Insurance [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 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] | ||
Assets | 0 | 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 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 2,975 | 10,221 |
Liabilities | 8,488 | 7,181 |
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) | Company-owned Life Insurance [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 2,975 | 0 |
Significant other observable inputs (Level 2) | Interest rate swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 0 | 10,221 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | $8,488 | $7,181 |
Franchise_Fees_and_Royalty_Inc2
Franchise Fees and Royalty Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Disclosure Franchise Fees And Royalty Income [Abstract] | |||
Royalty income | $438,074 | $411,428 | $385,713 |
Initial franchise fees and renewal income | 44,255 | 42,548 | 33,227 |
Total franchise fees and royalty income | $482,329 | $453,976 | $418,940 |
Changes_in_Franchised_and_Comp
Changes in Franchised and Company-Owned Points of Distribution (Detail) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
distributor | distributor | distributor | |
Number of Franchises [Roll Forward] | |||
Franchised points of distribution-beginning of period | 18,122 | 17,333 | 16,565 |
Franchises opened | 1,442 | 1,388 | 1,470 |
Franchises closed | -744 | -600 | -701 |
Net transfers (to) from company-owned points of distribution | 1 | 1 | -1 |
Franchised points of distribution in operation-end of period | 18,821 | 18,122 | 17,333 |
Company-owned points of distribution-end of period | 41 | 36 | 35 |
Total systemwide points of distribution-end of period | 18,862 | 18,158 | 17,368 |
Advertising_Funds_Details
Advertising Funds (Details) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Advertising Funds [Abstract] | |||
Percentage of franchisees gross retail sales, collected for advertising unds | 5.00% | ||
Accrued Advertising | $13,800,000 | $17,600,000 | |
Advertising management fee | 7,600,000 | 5,500,000 | 5,600,000 |
Advertising expense, national and regional advertising | 2,100,000 | 2,400,000 | 863,000 |
Advertising expense, based on retail Sales as owner and operator of company-owned restaurants | 872,000 | 1,000,000 | 808,000 |
Advertising fund contribution | $5,200,000 | $5,900,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $286,476 | $288,692 | |
Accumulated depreciation | -104,415 | -105,834 | |
Property and equipment, net | 182,061 | 182,858 | |
Impairment charges on leasehold improvements | 1,200 | 119 | 319 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 33,927 | 34,052 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 49,499 | 47,946 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 147,996 | 154,491 | |
Store, Production, Other Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 49,318 | 43,124 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $5,736 | $9,079 |
Equity_method_investments_Owne
Equity method investments Ownership Percentage (Details) | Dec. 27, 2014 |
BR Japan [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 43.30% |
BR Korea [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 33.30% |
Coffee Alliance, S.L. [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 33.30% |
Palm Oasis Ventures Pty. Ltd. [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 20.00% |
Equity_method_investments_Summ
Equity method investments Summarized Financial Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Current assets | $265,227 | $261,546 | |
Current liabilities | 102,920 | 106,280 | |
Working capital | 162,307 | 155,266 | |
Property, plant, and equipment, net | 138,325 | 139,378 | |
Other assets | 142,955 | 173,491 | |
Long-term liabilities | 45,684 | 52,389 | |
Equity of equity method investments | 397,903 | 415,746 | |
Equity Method Investment, Summarized Financial Information, Revenue | 669,416 | 673,537 | 687,676 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $39,835 | $51,407 | $51,046 |
Equity_method_investments_Comp
Equity method investments Comparison of Carrying Value of Investmetn and Underlying Equity in Net Assets of Investment (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $164,493 | $170,644 | ||
BR Japan [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 66,820 | 79,472 | ||
Equity Method Investment, Underlying Equity in Net Assets | 37,941 | 45,682 | ||
Difference between carrying amount and fair value | 28,879 | [1] | 33,790 | [1] |
BR Korea [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 97,458 | 91,121 | ||
Equity Method Investment, Underlying Equity in Net Assets | 103,589 | 100,766 | ||
Difference between carrying amount and fair value | ($6,131) | [1] | ($9,645) | [1] |
[1] | The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011. |
Equity_method_investments_Text
Equity method investments Textuals (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 29, 2013 | Dec. 31, 2011 | Sep. 27, 2014 | Sep. 28, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Expense from equity method investments | $406,000 | $505,000 | $689,000 | ||||
Impairment charge related to equity method investments | 0 | 873,000 | 0 | ||||
Australia Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership sold | 80.00% | ||||||
Gain from sale of franchising business | 6,300,000 | ||||||
Proceeds from sale of franchising business | 6,500,000 | ||||||
Carrying value of franchise business sold | 216,000 | ||||||
Ownership percentage | 20.00% | ||||||
BR Japan [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 43.30% | ||||||
Aggregate value of investment | 144,300,000 | ||||||
BR Korea [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 33.30% | ||||||
Impairment charge related to equity method investments | 19,800,000 | ||||||
Reduction of depreciation and amortization | 1,100,000 | 2,000,000 | 3,600,000 | ||||
Coffee Alliance, S.L. [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Allowance for doubtful notes and accounts receivable, related party | 2,800,000 | ||||||
Impairment charge related to equity method investments | 873,000 | ||||||
Reduction in impairment charge related to equity method investments | $441,000 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill [Roll Forward] | |||
Goodwill | $1,185,848 | $1,186,076 | $1,186,378 |
Accumulated impairment charges | -294,478 | -294,478 | -294,478 |
Goodwill acquired | 1,072 | ||
Goodwill disposed | -1,248 | -260 | |
Effects of foreign currency adjustments | -52 | -42 | |
Net Balance | 891,370 | 891,598 | 891,900 |
Dunkin' Donuts U.S. [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,151,599 | 1,151,775 | 1,152,035 |
Accumulated impairment charges | -270,441 | -270,441 | -270,441 |
Goodwill acquired | 1,072 | ||
Goodwill disposed | -1,248 | -260 | |
Effects of foreign currency adjustments | 0 | 0 | |
Net Balance | 881,158 | 881,334 | 881,594 |
Dunkin Donuts International [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 10,212 | 10,264 | 10,306 |
Accumulated impairment charges | 0 | 0 | 0 |
Goodwill acquired | 0 | ||
Goodwill disposed | 0 | 0 | |
Effects of foreign currency adjustments | -52 | -42 | |
Net Balance | 10,212 | 10,264 | 10,306 |
Baskin-Robbins International [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 24,037 | 24,037 | 24,037 |
Accumulated impairment charges | -24,037 | -24,037 | -24,037 |
Goodwill acquired | 0 | ||
Goodwill disposed | 0 | 0 | |
Effects of foreign currency adjustments | 0 | 0 | |
Net Balance | $0 | $0 | $0 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Intangible Assets And Goodwill [Line Items] | |||
Gross carrying amount | $1,646,839 | $1,652,453 | |
Accumulated amortization | -221,042 | -200,248 | |
Net carrying amount | 1,425,797 | 1,452,205 | |
Impairment of favorable operating leases acquired | 323 | 444 | 959 |
Franchise Rights [Member] | Definite-lived intangibles: | |||
Intangible Assets And Goodwill [Line Items] | |||
Weighted average amortization period (years) | 20 years | 20 years | |
Gross carrying amount | 382,520 | 383,465 | |
Accumulated amortization | -179,481 | -159,719 | |
Net carrying amount | 203,039 | 223,746 | |
Off-Market Favorable Lease [Member] | Definite-lived intangibles: | |||
Intangible Assets And Goodwill [Line Items] | |||
Weighted average amortization period (years) | 17 years | 16 years | |
Gross carrying amount | 67,119 | 71,788 | |
Accumulated amortization | -35,711 | -35,653 | |
Net carrying amount | 31,408 | 36,135 | |
Licensing Agreements [Member] | Definite-lived intangibles: | |||
Intangible Assets And Goodwill [Line Items] | |||
Weighted average amortization period (years) | 10 years | 10 years | |
Gross carrying amount | 6,230 | 6,230 | |
Accumulated amortization | -5,850 | -4,876 | |
Net carrying amount | 380 | 1,354 | |
Trade Names [Member] | Indefinite-lived intangible: | |||
Intangible Assets And Goodwill [Line Items] | |||
Gross carrying amount | 1,190,970 | 1,190,970 | |
Net carrying amount | $1,190,970 | $1,190,970 |
Total_Estimated_Amortization_E
Total Estimated Amortization Expense (Detail) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $24,943 |
2016 | 22,108 |
2017 | 21,353 |
2018 | 21,209 |
2019 | $20,774 |
Debt_Disclosure_Details
Debt Disclosure (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $1,810,933 | $1,823,609 |
Less current portion of long-term debt | -3,852 | -5,000 |
Total long-term debt | 1,807,081 | 1,818,609 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 1,809,554 | 1,823,609 |
Variable Interest Entity Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $1,379 | $0 |
Debt_Senior_Credit_Facility_De
Debt Senior Credit Facility (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 5 Months Ended | 1 Months Ended | ||||
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 26, 2015 | Aug. 31, 2012 | Aug. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Standby letters of credit | $2,900,000 | $3,000,000 | ||||||||
Letters Of Credit Drawn | 0 | 0 | ||||||||
Repayment of credit facility per calendar year | 15,000,000 | |||||||||
Percent of excess cash flow required to be used to prepay term loan | 25.00% | |||||||||
Annual principal payment for next twelve months | 3,600,000 | |||||||||
Maximum leverage ratio for company not to make excess cash flow payments | 4.75 | |||||||||
Leverage Ratio Minimum Triggering Event, Fifty Percent Excess Cash Flow Payment Requirement | 5.5 | |||||||||
Loss on debt extinguishment and refinancing transactions | 13,700,000 | 5,000,000 | 13,735,000 | 5,018,000 | 3,963,000 | |||||
Write off of Deferred Debt Issuance Cost | 10,500,000 | 3,900,000 | ||||||||
Other debt extinguishment and refinancing expense | 3,200,000 | 1,100,000 | ||||||||
Debt Instrument, Unamortized Discount Percentage | 0.25% | 0.25% | ||||||||
Debt issuance discount | 4,600,000 | 4,600,000 | ||||||||
Proceeds from issuance of long-term debt | 396,000,000 | |||||||||
Debt issuance costs | 1,200,000 | |||||||||
Base Rate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 2.25% | |||||||||
A-2-I [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.26% | |||||||||
Debt Instrument, Face Amount | 750,000,000 | |||||||||
A-2-II [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |||||||||
Debt Instrument, Face Amount | 1,750,000,000 | |||||||||
Variable Funding Notes [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | 100,000,000 | |||||||||
Debt Instrument, Number of Extensions | 2 | |||||||||
Debt Instrument, Extension Period | 1 year | |||||||||
Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Amount Outstanding | 1,830,000,000 | |||||||||
Applicable margin under term loan facility | 1.75% | |||||||||
Term Loan [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 1.50% | |||||||||
Term Loan [Member] | LIBOR Rate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 2.50% | |||||||||
2021 Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Amount Outstanding | 1,370,000,000 | |||||||||
2017 Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Amount Outstanding | 445,000,000 | |||||||||
Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance discount | 19,500,000 | |||||||||
Debt issuance costs | 36,200,000 | |||||||||
Amortization of Debt Discount (Premium) | 4,000,000 | 4,700,000 | 5,700,000 | |||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||
Addidtional borrowing, senior notes | 400,000,000 | |||||||||
Debt issuance discount | 4,000,000 | 4,000,000 | ||||||||
Proceeds from issuance of long-term debt | 396,000,000 | |||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 1.25% | |||||||||
Revolving Credit Facility [Member] | Term Loan [Member] | Federal Fund Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 0.50% | |||||||||
Revolving Credit Facility [Member] | Term Loan [Member] | LIBOR Rate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin under term loan facility | 1.00% | |||||||||
Revolving Credit Facility [Member] | Term Loan [Member] | LIBOR Rate Loans | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Floor Interest Rate | 0.75% | |||||||||
Revolving Credit Facility [Member] | 2021 Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum Borrowing Capacity | 1,380,000,000 | |||||||||
Effective interest rate | 3.50% | |||||||||
Repayment of credit facility per calendar year | 13,800,000 | |||||||||
Revolving Credit Facility [Member] | 2017 Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum Borrowing Capacity | 450,000,000 | |||||||||
Effective interest rate | 2.80% | |||||||||
Repayment of credit facility per calendar year | 4,500,000 | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum Borrowing Capacity | 100,000,000 | |||||||||
Letter of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 2.25% | |||||||||
Lenders Exiting Term Loan Lending Syndicate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes Reduction | $684,700,000 | $214,300,000 | ||||||||
If DBI’s leverage ratio is greater than 5.50x [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percent of excess cash flow required to be used to prepay term loan | 50.00% |
Debt_Senior_Notes_Details
Debt - Senior Notes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Debt Instrument [Line Items] | ||
Debt issuance discount | $4.60 | $4.60 |
Debt issuance costs | 1.2 | |
Write off of Deferred Debt Issuance Cost | 10.5 | 3.9 |
Other debt extinguishment and refinancing expense | $3.20 | $1.10 |
Debt_Future_Maturities_Details
Debt - Future Maturities (Details) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 | $18,750 |
2016 | 25,000 |
2017 | 25,000 |
2018 | 25,000 |
2019 | 739,375 |
A-2-I [Member] | |
Debt Instrument [Line Items] | |
2015 | 5,625 |
2016 | 7,500 |
2017 | 7,500 |
2018 | 7,500 |
2019 | 721,875 |
A-2-II [Member] | |
Debt Instrument [Line Items] | |
2015 | 13,125 |
2016 | 17,500 |
2017 | 17,500 |
2018 | 17,500 |
2019 | $17,500 |
Recovered_Sheet1
Derivative instruments and Hedging Transactions - Textuals (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Sep. 29, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 28, 2014 | Dec. 23, 2014 | |
counterparties | ||||||
Derivative [Line Items] | ||||||
Number of counterparties | 3 | |||||
Straight-line amortization of deferred gain (loss) from AOCI to earnings | $1,400,000 | |||||
Ineffectiveness of interest rate swap | 0 | |||||
Estimated reclassification from Accumulated OCI to Income | 2,100,000 | |||||
Derivative, Gain on Derivative | 6,200,000 | |||||
Unrealized gain (loss) on derivatives arising during period, tax | -3,269,000 | 3,909,000 | -1,509,000 | |||
Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative variable interest rate spread, floor | 1.00% | 0.75% | ||||
Notional value of swaps | 900,000,000 | |||||
Swap quarterly fixed interest rate | 1.37% | 1.22% | ||||
Total swap interest rate | 4.12% | 3.72% | ||||
Derivative, Fair Value, Net | 6,300,000 | |||||
Accrued Liabilities | 1,000,000 | |||||
Proceeds from Derivative Instrument, Investing Activities | 3,600,000 | |||||
Derivative, Gain on Derivative | 1,800,000 | |||||
Unrealized gain (loss) on derivatives arising during period, tax | 5,800,000 | |||||
Financing Receivable [Member] | Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Proceeds from Derivative Instrument, Investing Activities | 1,700,000 | |||||
Other Current liabilities [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Payable | $0 | $836,000 |
Derivative_Insturments_and_Hed
Derivative Insturments and Hedging Transactions (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Total fair values of derivative instruments - asset | $0 | $10,221 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps - asset | $0 | $10,221 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Transactions - Derivative Effects (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Interest rate swaps, Amount of gain (loss) recognized in other comprehensive income (loss) | ($8,085) | $9,648 | ($3,673) |
Interest rate swaps, Amount of net gain (loss) reclassified into earnings | -4,108 | -3,382 | -864 |
Interest rate swaps, Total effect on other comprehensive income (loss) | -3,977 | 13,030 | -2,809 |
Income Tax Effect, Amount of gain (loss) recognized in other comprehensive income (loss) | -3,269 | 3,909 | -1,509 |
Income tax effect, Amount of net gain (loss) reclassified into earnings | 1,661 | 1,381 | 355 |
Income tax effect, Total effect on other comprehensive income (loss) | 1,608 | -5,290 | 1,154 |
Net of income taxes, Amount of gain (loss) recognized in other comprehensive income (loss) | -4,816 | 5,739 | -2,164 |
Net of income taxes, Amount of net gain (loss) reclassified into earnings | -2,447 | -2,001 | -509 |
Unrealized gain (loss) on interest rate swaps, net of deferred tax expense (benefit) of $(1,608), $5,290 and $(1,154) for the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively | ($2,369) | $7,740 | ($1,655) |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $151,127 | $139,721 |
Gift card breakage liability | 25,893 | 14,093 |
Accrued salary and benefits | 21,632 | 26,713 |
Accrued legal liabilities (see note 17(d)) | 24,648 | 26,633 |
Accrued Interest | 8,351 | 9,999 |
Accrued professional costs | 9,381 | 2,938 |
Other | 17,860 | 28,821 |
Total other current liabilities | $258,892 | $248,918 |
Leases_Capital_Leases_Included
Leases - Capital Leases Included in Company's Balance Sheet (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Leases [Abstract] | |||
Leased property under capital leases (included in property and equipment) | $8,982 | $7,888 | |
Accumulated depreciation | -2,872 | -2,326 | |
Net leased property under capital leases | 6,110 | 5,562 | |
Current | 506 | 432 | |
Long-term | 7,575 | 6,996 | |
Total capital lease obligations | 8,081 | 7,428 | |
Income expense related to capital leases | $673 | $618 | $600 |
Leases_Operating_Leases_Includ
Leases - Operating Leases Included in Company's Balance Sheet (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | $213,907 | $208,108 |
Accumulated depreciation | -75,607 | -71,535 |
Assets leased to others, net | 138,300 | 136,573 |
Land | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 28,235 | 29,701 |
Buildings | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 43,835 | 41,721 |
Leasehold improvements | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 140,171 | 135,177 |
Store, production, and other equipment | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 184 | 146 |
Construction in progress | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | $1,482 | $1,363 |
Leases_Future_Minimum_Rental_C
Leases - Future Minimum Rental Commitments to be Paid and Received (Details) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital Leases, Future Minimum Payments Due, 2014 | $1,262 |
Capital Leases, Future Minimum Payments Due, 2015 | 1,266 |
Capital Leases, Future Minimum Payments Due, 2016 | 1,288 |
Capital Leases, Future Minimum Payments Due, 2017 | 1,304 |
Capital Leases, Future Minimum Payments Due, 2018 | 1,128 |
Capital Leases, Future Minimum Payments Due Thereafter | 8,880 |
Capital Leases, Future Minimum Payments Due | 15,128 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 7,047 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 8,081 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, 2014 | 54,403 |
Operating Leases, Future Minimum Payments Due, 2015 | 53,909 |
Operating Leases, Future Minimum Payments Due, 2016 | 53,287 |
Operating Leases, Future Minimum Payments Due, 2017 | 52,126 |
Operating Leases, Future Minimum Payments Due, 2018 | 50,746 |
Operating Leases, Future Minimum Payments Due Thereafter | 401,707 |
Operating Leases, Future Minimum Payments Due | 666,178 |
Subleases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract] | |
Subleases, Future Minimum Payments Receivable, 2014 | -65,327 |
Subleases, Future Minimum Payments Receivable, 2015 | -65,423 |
Subleases, Future Minimum Payments Receivable, 2016 | -65,261 |
Subleases, Future Minimum Payments Receivable, 2017 | -64,105 |
Subleases, Future Minimum Payments Receivable Due, 2018 | -61,233 |
Subleases, Future Minimum Payments Receivable, Thereafter | -373,266 |
Subleases, Future Minimum Payments Receivable | -694,615 |
Net Leases, Future Minimum Payments Due (Receivable), Fiscal Year Maturity [Abstract] | |
Leases, Future Minimum Payments Due, Net of Subleases, 2014 | -9,662 |
Leases, Future Minimum Payments Due, Net of Subleases, 2015 | -10,248 |
Leases, Future Minimum Payments Due, Net of Subleases, 2016 | -10,686 |
Leases, Future Minimum Payments Due, Net of Subleases, 2017 | -10,675 |
Leases, Future Minimum Payments Due, Net of Subleases, 2018 | -9,359 |
Leases, Future Minimum Payments Due, Net of Subleases, Thereafter | 37,321 |
Leases, Future Minimum Payments Due, Net of Subleases | ($13,309) |
Leases_Rent_Expense_Operating_
Leases - Rent Expense, Operating (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Leases [Abstract] | |||
Base rentals | $53,130 | $53,462 | $52,821 |
Contingent rentals | 6,071 | 5,869 | 5,227 |
Total rental expense | $59,201 | $59,331 | $58,048 |
Leases_Rent_Income_Details
Leases - Rent Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Leases [Abstract] | |||
Base rentals | $67,945 | $66,540 | $67,988 |
Contingent rentals | 29,718 | 29,542 | 28,828 |
Total rental income | $97,663 | $96,082 | $96,816 |
Leases_Impact_of_Amortization_
Leases - Impact of Amortization of Unfavorable Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Leases [Abstract] | |||
Increase in rental income | $847 | $973 | $1,065 |
Decrease in rental expense | 1,188 | 1,204 | 1,287 |
Total increase in operating income | $2,035 | $2,177 | $2,352 |
Leases_Estimated_Impact_of_the
Leases - Estimated Impact of the Amortization of Unfavorable Operating Leases Acquired (Details) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2015 | $940 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Increase in Rental Income, 2015 | 789 |
Estimated Impact Of Unfavorable Operating Leases Acquired, 2015 | 1,729 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2016 | 885 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2016 | 719 |
Estimated Impact Of Unfavorable Operating Leases Acquired, 2016 | 1,604 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2017 | 885 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2017 | 681 |
Estimated Impact Of Unfavorable Operating Leases Acquired, 2017 | 1,566 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2018 | 851 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2018 | 632 |
Estimated Impact Of Unfavorable Operating Leases Acquired, 2018 | 1,483 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2019 | 731 |
Estimated Impact Of Unfavorable Operating Leases Acquired, Increase in Rental Income, 2019 | 583 |
Estimated Impact Of Unfavorable Operating Leases Acquired, 2019 | $1,314 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
customer | |||
segment | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | 4 | ||
Number of Customers Accounted for More than 10% of Total Revenues | 0 | ||
Purchase Commitment [Member] | Transaction One [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment of Guarantees | $7.50 | ||
Purchase Commitment [Member] | Transaction One [Member] | Secondary Offering [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment of Guarantees | 4.8 | ||
Purchase Commitment [Member] | Transaction One [Member] | Bertico Litigation [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment of Guarantees | 20.7 | ||
Purchase Commitment [Member] | Transaction One [Member] | Peterborough Plant [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment of Guarantees | $14 |
Segment_Information_Revenues_b
Segment Information Revenues by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | $193,213 | $192,640 | $190,908 | $171,948 | $183,177 | $186,317 | $182,488 | $161,858 | $748,709 | $713,840 | $658,181 |
Operating Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 734,178 | 701,980 | 644,933 | ||||||||
Dunkin' Donuts | Operating Segments [Member] | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 548,697 | 521,179 | 485,399 | ||||||||
Dunkin' Donuts | Operating Segments [Member] | International | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 19,867 | 18,316 | 15,485 | ||||||||
Baskin-Robbins | Operating Segments [Member] | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 43,158 | 42,152 | 42,074 | ||||||||
Baskin-Robbins | Operating Segments [Member] | International | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 122,456 | 120,333 | 101,975 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | $14,531 | $11,860 | $13,248 |
Segment_Information_Segment_Pr
Segment Information Segment Profit by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | $175,563 | $146,304 | $107,624 | ||
Corporate and other | -120,026 | -122,337 | -115,365 | ||
Interest expense, net | -67,824 | -79,831 | -73,488 | ||
Amortization of other intangible assets | 25,760 | 26,943 | 26,943 | ||
Long-lived asset impairment charges | 1,484 | 563 | 1,278 | ||
Loss on debt extinguishment and refinancing transactions | -13,700 | -5,000 | -13,735 | -5,018 | -3,963 |
Other gains (losses), net | -1,566 | -1,799 | 23 | ||
Operating income adjustments excluded from reportable segments | 146 | -8,154 | -39,507 | ||
Income before income taxes | 255,733 | 218,088 | 162,001 | ||
Operating Segments [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | 485,982 | 462,733 | 422,522 | ||
Operating Segments [Member] | United States | Dunkin' Donuts | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | 403,591 | 374,435 | 341,776 | ||
Operating Segments [Member] | United States | Baskin-Robbins | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | 27,496 | 26,608 | 25,351 | ||
Operating Segments [Member] | International | Dunkin' Donuts | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | 12,103 | 7,453 | 9,636 | ||
Operating Segments [Member] | International | Baskin-Robbins | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total reportable segments | $42,792 | $54,237 | $45,759 |
Segment_Information_Equity_in_
Segment Information Equity in Net Income of Joint Ventures Reportable Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Disclosure [Line Items] | |||
Net income (loss) of equity method investments | $14,846 | $18,370 | $22,351 |
Corporate and Other [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Net income (loss) of equity method investments | 1,140 | 1,977 | 3,562 |
Operating Segments [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Net income (loss) of equity method investments | 13,706 | 16,393 | 18,789 |
Operating Segments [Member] | International | Dunkin' Donuts | |||
Segment Reporting Disclosure [Line Items] | |||
Net income (loss) of equity method investments | 1,794 | 480 | 2,211 |
Operating Segments [Member] | International | Baskin-Robbins | |||
Segment Reporting Disclosure [Line Items] | |||
Net income (loss) of equity method investments | $11,912 | $15,913 | $16,578 |
Segment_Information_Depreciati
Segment Information Depreciation and Amortization by Segment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | $19,779 | $22,423 | $29,084 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 7,211 | 9,024 | 14,067 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 12,568 | 13,399 | 15,017 |
Operating Segments [Member] | Dunkin' Donuts | United States | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 12,207 | 12,816 | 13,498 |
Operating Segments [Member] | Dunkin' Donuts | International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 11 | 26 | 34 |
Operating Segments [Member] | Baskin Robbins [Member] | United States | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 288 | 473 | 923 |
Operating Segments [Member] | Baskin Robbins [Member] | International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | $62 | $84 | $562 |
Segment_Information_Property_a
Segment Information Property and Equipment, Net (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $182,061 | $182,858 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 181,898 | 182,544 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $163 | $314 |
Stockholders_Equity_Share_Repu
Stockholders' Equity Share Repurchase (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
Aug. 02, 2012 | Oct. 31, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 18, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchased stock | 15,000,000 | 2,911,205 | 648,000 | |||
Average cost per share | $44.71 | $43.14 | ||||
Increase in treasury stock | $130,171,000 | $27,963,000 | $450,369,000 | |||
Stock Repurchased During Period, Third Party Fees | 341,000 | |||||
Stock Repurchased and Retired During Period, Price Per Share | $30 | |||||
Stock Repurchased and Retired During Period, Value | 28,000,000 | |||||
Treasury Stock, Shares, Retired | 417,300 | |||||
Subsequent Event [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock share repurchase program amount | 400,000,000 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 6,950,000 | |||||
Common Stock [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Value | 140,900,000 | 17,200,000 | 450,400,000 | |||
Treasury Stock, Shares, Retired | 3,142,000 | 417,000 | 15,001,000 | |||
Additional paid-in capital | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Value | 33,200,000 | 4,700,000 | 180,000,000 | |||
Accumulated deficit | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Value | $107,800,000 | $12,500,000 | $270,300,000 |
Stockholders_Equity_Changes_in
Stockholders' Equity Changes in Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | $1,339 |
Current period changes | -15,316 |
Balance at end of period | -13,977 |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | 5 |
Current period changes | -13,743 |
Balance at end of period | -13,738 |
Unrealized Gain (Loss) on Interest Rate Swaps | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | 6,085 |
Current period changes | -2,369 |
Balance at end of period | 3,716 |
Unrealized Gain (Loss) on Pension Adjustments | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -3,098 |
Current period changes | 224 |
Balance at end of period | -2,874 |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -1,653 |
Current period changes | 572 |
Balance at end of period | ($1,081) |
Stockholders_Equity_Dividends_
Stockholders' Equity Dividends (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Equity [Abstract] | |||||||||||
Dividend per share of common stock paid (in dollars per share) | $0.23 | $0.23 | $0.23 | $0.23 | $0.19 | $0.19 | $0.19 | $0.19 | |||
Dividends paid on common stock | $24,019 | $23,997 | $24,239 | $24,520 | $20,301 | $20,257 | $20,259 | $20,191 | $96,775 | $81,008 | $70,069 |
Dividend declared, payment date | 3-Dec-14 | 3-Sep-14 | 4-Jun-14 | 19-Mar-14 | 26-Nov-13 | 4-Sep-13 | 6-Jun-13 | 20-Feb-13 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 5 Months Ended | 12 Months Ended | 0 Months Ended | |||
Aug. 31, 2012 | Apr. 04, 2012 | Aug. 31, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 05, 2015 | |
Class of Stock [Line Items] | |||||||
Number of shares of common stock sold by existing shareholders (in shares) | 21,754,659 | 30,360,000 | |||||
Common stock price (in dollars per share) | $30 | $29.50 | |||||
Common stock, shares outstanding (in shares) | 104,630,978 | 106,646,219 | |||||
Dividend per share of common stock declared (in dollars per share) | $0.92 | $0.76 | $0.60 | ||||
Repayment of long-term debt | ($15,000,000) | ($24,157,000) | ($15,441,000) | ||||
Expenses in Connection with stock offering | $1,700,000 | ||||||
Dividend Declared | |||||||
Class of Stock [Line Items] | |||||||
Dividend per share of common stock declared (in dollars per share) | $0.27 |
Equity_Incentive_Plans_Textual
Equity Incentive Plans - Textuals (Details) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $11,500,000 | $15,900,000 | $14,100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 1,500,000 | 1,800,000 | 2,800,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 24,600,000 | 35,300,000 | 33,800,000 |
Allocated Share-based Compensation Expense | 11,287,000 | 7,323,000 | 6,920,000 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 4 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 5 years | ||
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 0 | 3,000 | 132,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 1,800,000 | 448,000 | 118,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 3,300,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||
Allocated Share-based Compensation Expense | 2,419,000 | 1,513,000 | 336,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 76,381 | ||
Granted (usd per share) | $50.15 | ||
Weighted average remaining contractual term (years) | 1 year 6 months | 1 year 9 months 18 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 122,483 | 102,971 | |
Stock Incentive Plan 2006 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | 12,191,145 | ||
Stock Incentive Plan 2006 [Member] | Restricted Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | 5,012,966 | ||
Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | 7,178,179 | ||
Equity Incentive Plan 2011 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | 7,000,000 | ||
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 6,847,000 | 4,668,000 | 2,026,000 |
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||
Number of shares, Granted | 1,406,308 | 1,177,999 | 746,100 |
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | Common Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 5 years | ||
Equity 2011 Plan restricted shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 177,096 | ||
Equity 2011 Plan restricted shares [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,456,000 | 0 | 0 |
Equity 2011 Plan restricted shares [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27,096 | ||
Granted (usd per share) | $51.67 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 920,000 | ||
Weighted average remaining contractual term (years) | 1 year 7 months 6 days | ||
Equity 2011 Plan restricted shares [Member] | Performance-based Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 150,000 | ||
Granted (usd per share) | $37.94 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 4,700,000 | ||
Weighted average remaining contractual term (years) | 4 years 0 months 0 days | ||
Tranche Four and Tranche Five [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 226,000 | ||
Tranche Four and Tranche Five [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 1 month 6 days | ||
Tranche Four and Tranche Five [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | ||
Tranche Five [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 190,000 | 478,000 | 3,600,000 |
Executive [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,648,158 | 2,205,947 | |
Executive [Member] | Stock Incentive Plan 2006 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Annualized Estimated Forfeitures | 10.00% | ||
Executive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 434,000 | 977,000 | 4,245,000 |
Executive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||
Executive [Member] | Tranche Four and Tranche Five [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | ||
Executive [Member] | Tranche Four and Tranche Five [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 5 years | ||
Executive [Member] | Tranche Four [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross, Allocation Of Options Between Tranches | 30.00% | ||
Executive [Member] | Tranche Four Accelerated Vesting [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting, Annual Vesting Percentage | 20.00% | ||
Executive [Member] | Tranche Four Accelerated Vesting [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | ||
Executive [Member] | Tranche Four Accelerated Vesting [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 4 years | ||
Executive [Member] | Tranche Five [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross, Allocation Of Options Between Tranches | 70.00% | ||
Nonexecutive [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 4,600,000 | 2,900,000 | 1,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 3,700,000 | 4,100,000 | 1,500,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 19,000,000 | ||
Nonexecutive [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Annualized Estimated Forfeitures | 10.00% | ||
Nonexecutive [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Annualized Estimated Forfeitures | 13.00% | ||
Nonexecutive [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | ||
Nonexecutive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $131,000 | $162,000 | $181,000 |
Nonexecutive [Member] | Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Granted | 1,406,308 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,016,769 | 2,019,150 |
Equity_Incentive_Plans_Compens
Equity Incentive Plans - Compensation Expense Schedule (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $11,287 | $7,323 | $6,920 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 4,567 | 2,958 | 2,768 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 0 | 3 | 132 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 2,419 | 1,513 | 336 |
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 6,847 | 4,668 | 2,026 |
Equity 2011 Plan restricted shares [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,456 | 0 | 0 |
Executive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 434 | 977 | 4,245 |
Nonexecutive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $131 | $162 | $181 |
Equity_Incentive_Plans_Restict
Equity Incentive Plans - Resticted Shares Rollforward (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | |
Dec. 27, 2014 | Dec. 28, 2013 | |
Restricted Stock Units (RSUs) [Member] | ||
Number of Shares [Roll Forward] | ||
Number of shares at December 28, 2013 | 102,971 | |
Granted | 76,381 | |
Vested | -45,837 | |
Forfeited | -11,032 | |
Number of shares at December 27, 2014 | 122,483 | 102,971 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Number of shares at December 28, 2013 (usd per share) | $37.20 | |
Granted (usd per share) | $50.15 | |
Vested (usd per share) | $38.74 | |
Forfeited (usd per share) | $34.93 | |
Number of shares at December 27, 2014 (usd per share) | $43.40 | $37.20 |
Weighted average remaining contractual term (years) | 1 year 6 months | 1 year 9 months 18 days |
Aggregate intrinsic value | $5.20 |
Equity_Incentive_Plans_Assumpt
Equity Incentive Plans - Assumptions In Determining Fair Value of Stock Options (Details) (USD $) | 12 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value of share options granted | $10.65 | $9.92 | $10.65 | |
Weighted average assumptions: Risk-free interest rate | 1.50% | 1.20% | ||
Weighted average assumptions: Expected Volatility | 26.30% | 33.00% | 43.00% | |
Weighted average assumptions: Dividend yield | 1.80% | 2.00% | ||
Weighted average assumptions: Expected term (years) | 4 years 11 months 16 days | 6 years 3 months | 6 years 3 months | |
Employee Stock Option [Member] | Nonexecutive [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average assumptions: Risk-free interest rate, minimum | 0.80% | [1] | ||
Weighted average assumptions: Risk-free interest rate, maximum | 1.40% | [1] | ||
Employee Stock Option [Member] | Executive [Member] | Tranche Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average assumptions: Risk-free interest rate, minimum | 0.00% | [1] | ||
Weighted average assumptions: Risk-free interest rate, maximum | 0.00% | [1] | ||
Weighted average assumptions: Expected Volatility, minimum | 0.00% | [1] | ||
Weighted average assumptions: Expected Volatility, maximum | 0.00% | [1] | ||
Weighted average assumptions: Dividend yield | 0.00% | [1] | ||
Employee Stock Option [Member] | Executive [Member] | Tranche Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average assumptions: Risk-free interest rate, minimum | 0.00% | [1] | ||
Weighted average assumptions: Risk-free interest rate, maximum | 0.00% | [1] | ||
Weighted average assumptions: Expected Volatility, minimum | 0.00% | [1] | ||
Weighted average assumptions: Expected Volatility, maximum | 0.00% | [1] | ||
Weighted average assumptions: Dividend yield | 0.00% | [1] | ||
[1] | The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2014, 201 |
Equity_Incentive_Plans_Status_
Equity Incentive Plans - Status of Company Stock Options (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Nonexecutive [Member] | Equity Incentive Plan 2011 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of shares, Share options outstanding at December 28, 2013 | 2,019,150 | |
Number of shares, Granted | 1,406,308 | |
Number of Shares, Exercised | -141,924 | |
Number of shares, Forfeited or expired | -266,765 | |
Number of shares, Share options outstanding at December 27, 2014 | 3,016,769 | 2,019,150 |
Number of shares, Share options exercisable at December 27, 2014 | 607,765 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Share options outstanding at December 28, 2013 | $31.45 | |
Weighted average exercise price, Granted | $51.67 | |
Weighted average exercise price, Exercised | $22.51 | |
Weighted average exercise price, Forfeited or expired | $35.76 | |
Weighted average exercise price, Share options outstanding at December 27, 2014 | $40.91 | $31.45 |
Weighted average exercise price, Share options exercisable at December 28, 2014 | $28.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Share options outstanding | 6 years 10 months 25 days | 8 years 6 months |
Weighted average remaining contractual term (years), Share options exercisable at December 28, 2013 | 7 years 1 month 6 days | |
Aggregate intrinsic value (in millions), Share options outstanding at December 27, 2014 | $17.10 | |
Aggregate intrinsic value (in millions), Share options exercisable at December 27, 2014 | 8.5 | |
Executive [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of shares, Share options outstanding at December 28, 2013 | 2,205,947 | |
Number of Shares, Exercised | -550,782 | |
Number of shares, Forfeited or expired | -7,007 | |
Number of shares, Share options outstanding at December 27, 2014 | 1,648,158 | 2,205,947 |
Number of shares, Share options exercisable at December 27, 2014 | 1,338,605 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Share options outstanding at December 28, 2013 | $3.64 | |
Weighted average exercise price, Exercised | $3.46 | |
Weighted average exercise price, Forfeited or expired | $7.31 | |
Weighted average exercise price, Share options outstanding at December 27, 2014 | $3.68 | $3.64 |
Weighted average exercise price, Share options exercisable at December 28, 2014 | $3.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Share options outstanding | 5 years 3 months 19 days | 6 years 3 months 18 days |
Weighted average remaining contractual term (years), Share options exercisable at December 28, 2013 | 5 years 2 months 12 days | |
Aggregate intrinsic value (in millions), Share options outstanding at December 27, 2014 | 63.8 | |
Aggregate intrinsic value (in millions), Share options exercisable at December 27, 2014 | $52.30 |
Earnings_per_Share_Computation
Earnings per Share Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Dunkin' Brands-basic and diluted | $52,513 | $54,697 | $46,191 | $22,956 | $42,072 | $40,221 | $40,812 | $23,798 | $176,357 | $146,903 | $108,308 |
Weighted average number of common shares - basic and diluted: | |||||||||||
Common-basic (in shares) | 105,398,899 | 106,501,733 | 114,584,063 | ||||||||
Common-diluted (in shares) | 106,705,778 | 108,217,011 | 116,573,344 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Common-basic (in dollars per share) | $0.50 | $0.52 | $0.44 | $0.22 | $0.39 | $0.38 | $0.38 | $0.22 | $1.67 | $1.38 | $0.94 |
Common-diluted (in dollars per share) | $0.50 | $0.52 | $0.43 | $0.21 | $0.39 | $0.37 | $0.38 | $0.22 | $1.65 | $1.36 | $0.93 |
Earnings_Per_Shares_Additional
Earnings Per Shares - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2012 | Apr. 04, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, shares outstanding (in shares) | 104,630,978 | 106,646,219 | |||
Common stock price (in dollars per share) | $30 | $29.50 | |||
Undistributed Earnings Allocated To Participating Securities Diluted | $0 | $0 | |||
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units | 1,306,879 | 1,715,278 | 1,989,281 | ||
Anti-dilutive security excluded from calculation, restricted stock awards (in shares) | 150,000 | 0 | |||
Out-of-the-money-stock-options excluded from calculation, common diluted earnings per share (in shares) | 1,373,379 | 1,100,275 | 805,015 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||
Recorded net tax benefit | $7,000,000 | $8,400,000 | $10,200,000 | |
Deferred tax expense (benefit) | 1,700,000 | 4,600,000 | ||
Valuation allowance for deferred tax assets | 700,000 | |||
Deferred tax assets, Unused foreign tax credits | 6,900,000 | |||
Undistributed earnings of joint ventures | 136,700,000 | 129,700,000 | ||
Cash Associated with Indefinitely Reinvested Foreign Earnings | 8,500,000 | 7,500,000 | ||
Unrecognized Tax Benefits | 3,672,000 | 8,213,000 | 15,428,000 | 41,379,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,200,000 | 4,200,000 | ||
Income Tax Examination, Penalties and Interest Expense | 2,300,000 | -5,800,000 | -200,000 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,000,000 | 6,300,000 | ||
Income Taxes Paid | 99,410,000 | 98,483,000 | 90,225,000 | |
CANADA | ||||
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 8,500,000 | |||
International | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Liabilities, Net | 5,900,000 | |||
Joint Ventures [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Liabilities, Net | $8,800,000 |
Income_Taxes_Income_Before_Tax
Income Taxes - Income Before Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $231,549 | $195,277 | $172,576 |
Foreign operations | 24,184 | 22,811 | -10,575 |
Income before income taxes | $255,733 | $218,088 | $162,001 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision (Benefit) For Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Current: | |||
Federal | $82,925 | $70,696 | $52,657 |
State | 23,146 | 11,758 | 6,065 |
Foreign | -1,262 | 2,521 | 2,601 |
Current tax provision | 104,809 | 84,975 | 61,323 |
Deferred: | |||
Federal | -22,644 | -11,915 | -5,071 |
State | -1,861 | -984 | 4,373 |
Foreign | -134 | -292 | -6,248 |
Deferred tax benefit | -24,639 | -13,191 | -6,946 |
Provision for income taxes | $80,170 | $71,784 | $54,377 |
Income_Taxes_Income_Tax_Rate_R
Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Income Tax Disclosure [Abstract] | |||
Computed federal income tax expense, at statutory rate | 35.00% | 35.00% | 35.00% |
Other permanent differences | 0.10% | 0.20% | 0.70% |
State income taxes | 5.70% | 4.70% | 5.20% |
Benefits and taxes related to foreign operations | -3.50% | -4.30% | -2.90% |
Conversion of foreign subsidiary | -3.30% | 0.00% | 0.00% |
Changes in enacted tax rates and apportionment | 0.10% | 0.80% | 2.80% |
Uncertain tax positions | -2.50% | -3.20% | -6.30% |
Other, net | -0.30% | -0.30% | -0.90% |
Effective tax rate | 31.30% | 32.90% | 33.60% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, Allowance for doubtful accounts, Current | $3,377 | $1,055 |
Deferred tax assets, Deferred gift cards and certificates | 20,549 | 20,371 |
Deferred tax assets, Rent, Current | 5,480 | 5,307 |
Deferred tax assets, Deferred revenue, Current | 4,900 | 4,672 |
Deferred tax assets, Other current liabilities | 13,033 | 13,983 |
Deferred tax assets, Capital Loss | 179 | 0 |
Deferred tax assets, Other, Current | 2,466 | 1,073 |
Deferred tax assets, current | 49,984 | 46,461 |
Deferred tax liabilities, other | 768 | 0 |
Deferred tax liabilities, current | 768 | 0 |
Deferred income taxes, current | 49,216 | 46,461 |
Deferred tax assets, Capital leases | 3,066 | 2,830 |
Deferred tax assets, Rent, Noncurrent | 3,442 | 2,243 |
Deferred tax liabilities, Property and equipment | 4,451 | 6,315 |
Deferred tax assets, Deferred compensation and long-term incentive accrual | 10,645 | 7,747 |
Deferred tax assets, Deferred revenue, Noncurrent | 5,410 | 4,234 |
Deferred tax assets, Real estate rserves, Noncurrent | 1,223 | 1,287 |
Deferred tax liabilities, Franchise rights and other intangibles | 567,751 | 576,567 |
Deferred tax assets, Unused foreign tax credits | 8,122 | 6,756 |
Deferred tax liabilities, Other, Noncurrent | 0 | 4,322 |
Deferred tax assets, Other, Noncurrent | 637 | 1,103 |
Deferred tax assets, Gross, Noncurrent | 32,545 | 26,200 |
Deferred tax assets, Valuation allowance, Noncurrent | -682 | -710 |
Deferred tax assets, Total noncurrent | 31,863 | 25,490 |
Deferred tax liabilities, Net, Noncurrent | 572,202 | 587,204 |
Deferred tax assets, Net of valuation allowance total | 81,847 | 71,951 |
Deferred tax liabilities, Total | $572,970 | $587,204 |
Income_Taxes_Change_in_Unrecog
Income Taxes - Change in Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $8,213 | $15,428 | $41,379 |
Increases related to prior year tax positions | 488 | 855 | 2,063 |
Increases related to current year tax positions | 96 | 219 | 1,389 |
Decreases related to prior year tax positions | -4,567 | -3,091 | -19,675 |
Decreases related to settlements | -296 | -4,797 | -9,792 |
Lapses of statutes of limitations | 0 | 0 | -27 |
Effect of foreign currency adjustments | -262 | -401 | 91 |
Balance at end of year | $3,672 | $8,213 | $15,428 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 29, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Jun. 22, 2012 | Jun. 22, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 27, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Jun. 30, 2012 | |
USD ($) | USD ($) | Lease Agreements | Lease Agreements | Purchase Commitment [Member] | Purchase Commitment [Member] | Purchase Commitment [Member] | Purchase Commitment [Member] | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Supply Commitment | Supply Commitment | Minimum [Member] | Maximum [Member] | Performance Guarantee [Member] | Performance Guarantee [Member] | Bertico Litigation [Member] | |
USD ($) | USD ($) | Transaction One [Member] | Transaction One [Member] | Transaction 02 | Transaction 02 | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Bertico litigation | |||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||||
Franchisees financing term | 3 years | 10 years | ||||||||||||||||||
Guarantee obligation, maximum exposure | $2,200,000 | $3,000,000 | $6,300,000 | $6,400,000 | $4,300,000 | $5,700,000 | $51,500,000 | $52,600,000 | ||||||||||||
Fair value of the guarantee liability | 144,000 | 277,000 | ||||||||||||||||||
Fair value of the guarantee assets | 198,000 | 309,000 | ||||||||||||||||||
Reserve for guarantee liabilities | 7,500,000 | |||||||||||||||||||
Accrued liabilities | 507,000 | 906,000 | ||||||||||||||||||
Guarantee to third party to ensure franchisees will purchase or sell certain volume of product, term | 4 years | 10 years | ||||||||||||||||||
Standby letters of credit | 2,900,000 | 3,000,000 | ||||||||||||||||||
Amounts drawn on letters of credit | 0 | 0 | ||||||||||||||||||
Litigation judgment | 15,900,000 | 16,400,000 | ||||||||||||||||||
Legal fees | 20,700,000 | |||||||||||||||||||
Increase in estimated liability related to litigation | 12,000,000 | 888,000 | 952,000 | 493,000 | ||||||||||||||||
Contingent liabilities related to legal matters | $765,000 | $1,500,000 | $23,900,000 | |||||||||||||||||
Age of Events Upon Which Claims are Based | 10 years | 15 years |
Retirement_Plans_Textual_Detai
Retirement Plans - Textual (Details) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum annual contribution percentage, 401(k) | 80.00% | ||
Employer contributions 401(k) | $3,200,000 | $3,100,000 | $2,900,000 |
Employer discretionary contribution amount | 0 | 0 | 0 |
NQDC maximum pretax contribution percentage | 50.00% | ||
NQDC plan liability | 8,500,000 | 7,000,000 | |
NQDC investments held | 3,000,000 | 338,000 | |
Fair value assumption, Monte Carlo, time period | 30 years | ||
Accumulated benefit obligation | $7,600,000 | $8,200,000 | |
Discount rate | 2.65% | 2.65% | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer match percentage 401(k) | 4.00% | 4.00% | 4.00% |
Additional discrectionary conribution 401(k) | 2.00% |
Retirement_Plans_Pension_Expen
Retirement Plans - Pension Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $0 | $0 | $262 |
Interest cost | 207 | 216 | 333 |
Expected return on plan assets | -208 | -263 | -317 |
Amortization of net actuarial loss | 87 | 74 | 76 |
Net pension expense | $86 | $27 | $354 |
Retirement_Plans_Change_in_Ben
Retirement Plans - Change in Benefit Obligation and Change in Fair Value of Plan Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $8,200 | $8,349 | $6,050 |
Service cost | 0 | 0 | 262 |
Interest cost | 207 | 216 | 333 |
Employee contributions | 0 | 0 | 88 |
Benefits paid | -208 | -230 | -275 |
Curtailment gain | 0 | 0 | -1,084 |
Actuarial loss | 81 | 395 | 2,854 |
Foreign currency loss (gain), net | -681 | -530 | 121 |
Benefit obligation, end of year | 7,599 | 8,200 | 8,349 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 5,790 | 5,809 | 4,945 |
Expected return on plan assets | 208 | 263 | 317 |
Employer contributions | 898 | 626 | 662 |
Employee contributions | 0 | 0 | 88 |
Benefits paid | -208 | -230 | -275 |
Expected return on plan assets | 308 | -371 | -27 |
Actuarial loss | 81 | 395 | 2,854 |
Foreign currency gain (loss), net | -540 | -307 | 99 |
Fair value of plan assets, end of year | 6,456 | 5,790 | 5,809 |
Funded status | -1,143 | -2,410 | -2,540 |
Accrued benefit cost | ($1,143) | ($2,410) | ($2,540) |
Retirement_Plans_Allocation_of
Retirement Plans - Allocation of Pooled Plan (Details) | Dec. 27, 2014 | Dec. 28, 2013 |
Cash and Short-term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of assets within pooled fund | 34.00% | 35.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of assets within pooled fund | 66.00% | 65.00% |
Retirement_Plans_Assumptions_U
Retirement Plans - Assumptions Used in Calculations (Details) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.65% | 2.65% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.65% | 2.70% | 5.25% |
Average salary increase for pensionable earnings | 0.00% | 0.00% | 3.25% |
Expected return on plan assets | 3.50% | 4.50% | 6.00% |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Related Party Transaction [Line Items] | |||
Royalties receivable from joint ventures | $1,400,000 | $1,400,000 | |
B-R 31 Ice Cream Co., Ltd. (BR Japan) | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 1,790,000 | 2,097,000 | 2,549,000 |
BR Korea Co., Ltd. (BR Korea) | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 4,602,000 | 4,156,000 | 3,662,000 |
Coffee Alliance, S.L. [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 123,000 | 130,000 | 0 |
Loans and leases receivable, related parties, additions | 2,100,000 | 666,000 | |
Loans and leases receivable, related parties | 2,500,000 | 2,700,000 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 6,515,000 | 6,383,000 | 6,211,000 |
Joint Ventures [Member] | |||
Related Party Transaction [Line Items] | |||
Payments to sponsors and joint ventures | 2,600,000 | 3,800,000 | 1,600,000 |
Australia Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 5,800,000 | 4,800,000 | |
Due from joint ventures | 3,100,000 | 733,000 | |
Other Assets [Member] | Coffee Alliance, S.L. [Member] | |||
Related Party Transaction [Line Items] | |||
Loans and leases receivable, related parties | $2,300,000 | $2,700,000 |
Closure_of_Manufacturing_Plant1
Closure of Manufacturing Plant - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||
Cost related to plant closure | $12,600,000 | ||
Other costs related to closing of plant | 654,000 | 11,900,000 | |
Accelerated depreciation on property, plant and equipment related to closing of plant | 4,200,000 | ||
Incremental ice cream production costs related to plant closing | 2,700,000 | ||
Ongoing Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Termination benefits cost related to closing of plant | 2,000,000 | ||
One-time Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Termination benefits cost related to closing of plant | 1,100,000 | ||
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other costs related to closing of plant | 1,900,000 | ||
Pension Plan Settlements [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected reduction in operating income related to plant closing and transition | 3,000,000 | ||
Pension Plan Settlements [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected reduction in operating income related to plant closing and transition | $4,000,000 |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provision for (recovery of) doubtful accounts, net | $2,821 | $3,484 | ($542) |
Trade Accounts Receivable [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 2,599 | 2,483 | 2,713 |
Provision for (recovery of) doubtful accounts, net | 1,796 | 1,015 | 513 |
Write-offs and other | -513 | -899 | -743 |
Ending balance | 3,882 | 2,599 | 2,483 |
Short-term Notes and Other Receivables [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 659 | 1,204 | 2,321 |
Provision for (recovery of) doubtful accounts, net | -14 | -339 | -1,055 |
Write-offs and other | 633 | -206 | -62 |
Ending balance | 1,278 | 659 | 1,204 |
Long-term Notes and Other Receivables [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 2,808 | 0 | 0 |
Provision for (recovery of) doubtful accounts, net | 1,039 | 2,808 | 0 |
Write-offs and other | 100 | 0 | 0 |
Ending balance | $3,947 | $2,808 | $0 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | |||||||||||
Total revenues | $193,213 | $192,640 | $190,908 | $171,948 | $183,177 | $186,317 | $182,488 | $161,858 | $748,709 | $713,840 | $658,181 |
Operating income | 89,724 | 92,480 | 87,557 | 69,097 | 82,235 | 82,237 | 76,805 | 63,459 | 338,858 | 304,736 | 239,429 |
Net income | $52,513 | $54,697 | $46,191 | $22,956 | $42,072 | $40,221 | $40,812 | $23,798 | $176,357 | $146,903 | $108,308 |
Common-basic (in dollars per share) | $0.50 | $0.52 | $0.44 | $0.22 | $0.39 | $0.38 | $0.38 | $0.22 | $1.67 | $1.38 | $0.94 |
Common-diluted (in dollars per share) | $0.50 | $0.52 | $0.43 | $0.21 | $0.39 | $0.37 | $0.38 | $0.22 | $1.65 | $1.36 | $0.93 |
Quarterly_Financial_Data_Textu
Quarterly Financial Data - Textuals (Details) (Legal Claim One [Member]) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 22, 2012 | Jun. 22, 2012 | Jun. 30, 2012 |
USD ($) | CAD | Bertico Litigation [Member] | |
USD ($) | |||
Quarty Financial Data [Line Items] | |||
Increase in estimated liability related to litigation | $20.70 | ||
Litigation judgment | $15.90 | 16.4 |