Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | 4-May-15 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DNKN | |
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | |
Entity Central Index Key | 1357204 | |
Current Fiscal Year End Date | -14 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 96,235,566 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $340,393 | $208,080 |
Restricted cash | 72,004 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $3,779 and $3,882 as of March 28, 2015 and December 27, 2014, respectively | 49,534 | 55,908 |
Notes and other receivables, net of allowance for doubtful accounts of $849 and $1,278 as of March 28, 2015 and December 27, 2014, respectively | 23,151 | 49,152 |
Deferred income taxes, net | 48,708 | 49,216 |
Restricted assets of advertising funds | 38,533 | 34,300 |
Prepaid income taxes | 11,504 | 24,861 |
Prepaid expenses and other current assets | 27,752 | 21,101 |
Total current assets | 611,579 | 442,618 |
Property and equipment, net of accumulated depreciation of $106,387 and $104,415 as of March 28, 2015 and December 27, 2014, respectively | 181,069 | 182,061 |
Equity method investments | 162,410 | 164,493 |
Goodwill | 892,124 | 891,370 |
Other intangible assets, net of accumulated amortization of $223,249 and $221,042 as of March 28, 2015 and December 27, 2014, respectively | 1,419,818 | 1,425,797 |
Other assets | 93,057 | 71,044 |
Total assets | 3,360,057 | 3,177,383 |
Current liabilities: | ||
Current portion of long-term debt | 25,253 | 3,852 |
Capital lease obligations | 518 | 506 |
Accounts payable | 11,711 | 13,814 |
Liabilities of advertising funds | 47,013 | 48,081 |
Deferred income | 31,121 | 30,374 |
Other current liabilities | 217,311 | 258,892 |
Total current liabilities | 332,927 | 355,519 |
Long-term debt, net | 2,476,079 | 1,807,081 |
Capital lease obligations | 7,442 | 7,575 |
Unfavorable operating leases acquired | 14,284 | 14,795 |
Deferred income | 16,704 | 14,935 |
Deferred income taxes, net | 534,032 | 540,339 |
Other long-term liabilities | 63,447 | 62,189 |
Total long-term liabilities | 3,111,988 | 2,446,914 |
Commitments and contingencies (note 10) | ||
Redeemable noncontrolling interests | 6,785 | 6,991 |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at March 28, 2015 and December 27, 2014 | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 96,584,611 issued and 96,464,574 outstanding at March 28, 2015; 104,630,978 shares issued and outstanding at December 27, 2014 | 96 | 104 |
Additional paid-in capital | 909,795 | 1,093,363 |
Treasury stock, at cost | -5,751 | 0 |
Accumulated deficit | -982,360 | -711,531 |
Accumulated other comprehensive loss | -13,423 | -13,977 |
Total stockholders’ equity (deficit) | -91,643 | 367,959 |
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity (deficit) | $3,360,057 | $3,177,383 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $3,779 | $3,882 |
Notes and other receivables, allowance for doubtful accounts | 849 | 1,278 |
Property and equipment, accumulated depreciation | 106,387 | 104,415 |
Other intangible assets, accumulated amortization | $223,249 | $221,042 |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 96,584,611 | 104,630,978 |
Common stock, shares outstanding (in shares) | 96,464,574 | 104,630,978 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Revenues: | ||
Franchise fees and royalty income | $115,325 | $106,712 |
Rental income | 23,627 | 22,447 |
Sales of ice cream products | 22,591 | 28,671 |
Sales at company-owned restaurants | 6,558 | 6,316 |
Other revenues | 17,804 | 7,802 |
Total revenues | 185,905 | 171,948 |
Operating costs and expenses: | ||
Occupancy expenses-franchised restaurants | 13,518 | 13,012 |
Cost of ice cream products | 14,879 | 19,748 |
Company-operated restaurant expenses | 6,858 | 6,363 |
General and administrative expenses, net | 58,307 | 59,714 |
Depreciation | 5,110 | 4,913 |
Amortization of other intangible assets | 6,200 | 6,405 |
Impairment charges | 264 | 123 |
Total operating costs and expenses | 105,136 | 110,278 |
Net income of equity method investments | 2,947 | 3,100 |
Other operating income, net | 24 | 4,327 |
Operating income | 83,740 | 69,097 |
Other income (expense), net: | ||
Interest income | 122 | 69 |
Interest expense | -22,164 | -17,941 |
Loss on debt extinguishment and refinancing transactions | -20,554 | -13,735 |
Other gains (losses), net | -545 | 27 |
Total other expense, net | -43,141 | -31,580 |
Income before income taxes | 40,599 | 37,517 |
Provision for income taxes | 15,174 | 14,689 |
Net income including noncontrolling interests | 25,425 | 22,828 |
Net loss attributable to noncontrolling interests | -206 | -128 |
Net income attributable to Dunkin' Brands | $25,631 | $22,956 |
Earnings per share: | ||
Common-basic | $0.26 | $0.22 |
Common-diluted | $0.25 | $0.21 |
Cash dividends declared per common share | $0.27 | $0.23 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income including noncontrolling interests | $25,425 | $22,828 |
Other comprehensive income (loss), net: | ||
Effect of foreign currency translation, net of deferred tax expense of $258 and $313 for the three months ended March 28, 2015 and March 29, 2014, respectively | 1,379 | 1,291 |
Effect of interest rate swaps, net of deferred tax benefit of $217 and $457 for the three months ended March 28, 2015 and March 29, 2014, respectively | -318 | -701 |
Other, net | -507 | 658 |
Total other comprehensive income, net | 554 | 1,248 |
Comprehensive income including noncontrolling interests | 25,979 | 24,076 |
Comprehensive loss attributable to noncontrolling interests | -206 | -128 |
Comprehensive income attributable to Dunkin' Brands | $26,185 | $24,204 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Deferred tax effect, foreign currency translation | $258 | $313 |
Deferred tax effect, unrealized loss on interest rate swaps | ($217) | ($457) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $25,425 | $22,828 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,310 | 11,318 |
Amortization of debt issuance costs and original issue discount | 1,371 | 1,038 |
Loss on debt extinguishment and refinancing transactions | 20,554 | 13,735 |
Deferred income taxes | -6,261 | -3,842 |
Provision for (recovery of) bad debt | -243 | 1,365 |
Share-based compensation expense | 3,672 | 1,849 |
Net income of equity method investments | -2,947 | -3,100 |
Dividends received from equity method investments | 5,283 | 5,825 |
Gain on sale of real estate and company-owned restaurants | 0 | -4,327 |
Other, net | -393 | -402 |
Change in operating assets and liabilities: | ||
Restricted cash | -65,772 | 0 |
Accounts, notes, and other receivables, net | 32,397 | 22,062 |
Income taxes payable, net | 13,424 | 5,363 |
Other current assets | -6,875 | 1,335 |
Accounts payable | -875 | -733 |
Other current liabilities | -45,105 | -72,566 |
Liabilities of advertising funds, net | -5,038 | -2,746 |
Deferred income | 2,534 | 917 |
Other, net | 8,559 | 1,694 |
Net cash (used in) provided by operating activities | -8,980 | 1,613 |
Cash flows from investing activities: | ||
Additions to property and equipment | -6,233 | -4,436 |
Proceeds from sale of real estate | 0 | 6,937 |
Other, net | -1,499 | -1,418 |
Net cash (used in) provided by investing activities | -7,732 | 1,083 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 2,500,000 | 0 |
Repayment of long-term debt | -1,818,971 | -10,000 |
Payment of debt issuance and other debt-related costs | -40,953 | -8,977 |
Dividends paid on common stock | -25,688 | -24,520 |
Repurchases of common stock, including accelerated share repurchase | -459,821 | -22,040 |
Change in restricted cash | -6,900 | 0 |
Exercise of stock options | 1,209 | 3,411 |
Excess tax benefits from share-based compensation | 1,424 | 5,465 |
Other, net | -886 | -568 |
Net cash provided by (used in) financing activities | 149,414 | -57,229 |
Effect of exchange rates on cash and cash equivalents | -389 | 20 |
Increase (decrease) in cash and cash equivalents | 132,313 | -54,513 |
Cash and cash equivalents, beginning of period | 208,080 | 256,933 |
Cash and cash equivalents, end of period | 340,393 | 202,420 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 6,792 | 7,618 |
Cash paid for interest | 12,955 | 19,900 |
Noncash investing activities: | ||
Property and equipment included in accounts payable and other current liabilities | 718 | 857 |
Purchase of leaseholds in exchange for capital lease obligations | 0 | 185 |
Noncash financing activities: | ||
Repurchases of common stock included in accounts payable and other current liabilities | 5,763 | 1,958 |
Debt issuance costs included in accounts payable and other current liabilities | $396 | $0 |
Description_of_Business_and_Or
Description of Business and Organization | 3 Months Ended |
Mar. 28, 2015 | |
Text Block [Abstract] | |
Description of Business and Organization | Description of Business and Organization |
Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s leading franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We develop, franchise, and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, own and operate individual locations. Through our Dunkin’ Donuts brand, we develop and franchise restaurants featuring coffee, donuts, bagels, 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 unaudited 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 | 3 Months Ended | ||||||||||||
Mar. 28, 2015 | |||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||||||
(a) Unaudited Consolidated Financial Statements | |||||||||||||
The consolidated balance sheet as of March 28, 2015 and the consolidated statements of operations, comprehensive income, and cash flows for the three months ended March 28, 2015 and March 29, 2014 are unaudited. | |||||||||||||
The accompanying unaudited consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 27, 2014, included in the Company’s Annual Report on Form 10-K. | |||||||||||||
(b) Fiscal Year | |||||||||||||
The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within our three month periods ended March 28, 2015 and March 29, 2014 reflect the results of operations for the 13-week periods ended on those dates. Operating results for the three month period ended March 28, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 26, 2015. | |||||||||||||
(c) Restricted Cash | |||||||||||||
In accordance with the Company's securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company held restricted cash which primarily represented (i) cash collections held by the Trustee, (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company's Notes (see note 4), and (iii) real estate reserves used to pay real estate obligations. Changes in restricted cash accounts are presented as either a component of cash flows from operating or financing activities in the consolidated statements of cash flows based on the nature of the restricted balance. | |||||||||||||
(d) Fair Value of Financial Instruments | |||||||||||||
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 March 28, 2015 and December 27, 2014 are summarized as follows (in thousands): | |||||||||||||
28-Mar-15 | 27-Dec-14 | ||||||||||||
Significant | Total | Significant | Total | ||||||||||
other | other | ||||||||||||
observable | observable | ||||||||||||
inputs | inputs | ||||||||||||
(Level 2) | (Level 2) | ||||||||||||
Assets: | |||||||||||||
Company-owned life insurance | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Total assets | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Liabilities: | |||||||||||||
Deferred compensation liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
Total liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax deferral of compensation for certain qualifying employees and directors. 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 include company-owned life insurance policies, to partially offset the Company’s liabilities under the NQDC Plan. 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 carrying value and estimated fair value of long-term debt as of March 28, 2015 and December 27, 2014 were as follows (in thousands): | |||||||||||||
March 28, 2015 | 27-Dec-14 | ||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||
Financial liabilities | |||||||||||||
Long-term debt | $ | 2,501,332 | 2,541,376 | 1,810,933 | 1,778,066 | ||||||||
The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, our long-term debt is classified within Level 2, as defined under U.S. GAAP. | |||||||||||||
(e) 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 March 28, 2015 and December 27, 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 19% of total accounts and notes receivable, which was primarily due to the timing of orders and shipments of ice cream to the master licensee. For the three months ended March 29, 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 11% of total revenues. No individual franchisee or master licensee accounted for more than 10% of total revenues for the three months ended March 28, 2015. | |||||||||||||
Additionally, the Company engages various third parties to manufacture and/or distribute certain Dunkin' Donuts and Baskin-Robbins products under licensing arrangements. As of March 28, 2015, one of these third parties accounted for approximately 13% of total accounts and notes receivable. No individual third party accounted for more than 10% of total accounts and notes receivable as of December 27, 2014. | |||||||||||||
(f) Recent Accounting Pronouncements | |||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) 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 currently effective for the Company in fiscal year 2017 and early adoption is not permitted. In April 2015, the FASB proposed deferring the effective date of the guidance by one year, and also proposed permitting early adoption of the standard, but not before the original effective date. 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. | |||||||||||||
In April 2015, the FASB issued new guidance to simplify the presentation of debt issuance costs, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums, instead of as an asset. This guidance is effective for the Company in fiscal year 2016, and early adoption is permitted. The adoption of this guidance by the Company will result in the reclassification of debt issuance costs, which were approximately $40.2 million and $11.5 million as of March 28, 2015 and December 27, 2014, respectively, from other assets to long-term debt, net in the consolidated balance sheets, resulting in a corresponding reduction in total assets and total long-term liabilities. The adoption of this guidance will not have any impact on the Company’s consolidated statements of operations or cash flows. | |||||||||||||
(g) Reclassifications | |||||||||||||
The Company has revised the presentation of certain captions for the three months ended March 29, 2014 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. | |||||||||||||
(h) Subsequent Events | |||||||||||||
Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Franchise_Fees_and_Royalty_Inc
Franchise Fees and Royalty Income | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Disclosure Franchise Fees And Royalty Income [Abstract] | |||||||
Franchise Fees and Royalty Income | Franchise Fees and Royalty Income | ||||||
Franchise fees and royalty income consisted of the following (in thousands): | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Royalty income | $ | 106,121 | 98,599 | ||||
Initial franchise fees and renewal income | 9,204 | 8,113 | |||||
Total franchise fees and royalty income | $ | 115,325 | 106,712 | ||||
The changes in franchised and company-operated points of distribution were as follows: | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Systemwide Points of Distribution: | |||||||
Franchised points of distribution in operation—beginning of period | 18,821 | 18,122 | |||||
Franchised points of distribution—opened | 298 | 266 | |||||
Franchised points of distribution—closed | (219 | ) | (170 | ) | |||
Net transfers from company-operated points of distribution | (2 | ) | — | ||||
Franchised points of distribution in operation—end of period | 18,898 | 18,218 | |||||
Company-operated points of distribution—end of period | 43 | 36 | |||||
Total systemwide points of distribution—end of period | 18,941 | 18,254 | |||||
Debt
Debt | 3 Months Ended |
Mar. 28, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
Securitized Financing Facility | |
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 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 allow 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 (the “Anticipated Repayment Dates”). If the Class A-2 Notes have not been repaid in full by their respective Anticipated Repayment Dates, a rapid amortization event will occur in which residual net cash flows, after making certain required payments, will be applied to the outstanding principal of the Class A-2 Notes. Various other events, including failure to maintain a minimum ratio of net cash flows to debt service (“DSCR”), may also cause a rapid amortization event. Borrowings under the Class A-2-I and Class A-2-II Notes bear interest at a fixed rate equal to 3.262% and 3.980%, respectively. If the Class A-2 Notes are not repaid or refinanced prior to their respective Anticipated Repayment Dates, incremental interest will accrue. Principal payments are required to be made on the Class A-2-I and Class A-2-II Notes equal to $7.5 million and $17.5 million, respectively, per calendar year, payable in quarterly installments. No principal payments will be required if a specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the Indenture), is less than or equal to 5.0 to 1.0. Other events and transactions, such as certain asset sales and receipt of various insurance or indemnification proceeds, may trigger additional mandatory prepayments. | |
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. Borrowings under the Variable Funding Notes bear interest at a rate equal to a base rate, a LIBOR rate plus 2.25%, or the lenders’ commercial paper funding rate plus 2.25%. If the Variable Funding Notes are not repaid prior to February 2020, incremental interest will accrue. In addition, the Company is required to pay a 2.25% fee for letters of credit amounts outstanding and a commitment fee on the unused portion of the Variable Funding Notes which ranges from 0.50% to 1.00% based on utilization. | |
As of March 28, 2015, $750.0 million and $1.75 billion of principal were outstanding on the Class A-2-I Notes and Class A-2-II Notes, respectively. Total debt issuance costs incurred and capitalized in connection with the issuance of the Notes were $41.3 million. The effective interest rate, including the amortization of debt issuance costs, was 3.5% and 4.3% for the Class A-2-I Notes and Class A-2-II Notes, respectively, at March 28, 2015. As of March 28, 2015, $26.4 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. There were no amounts drawn down on these letters of credit. | |
The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments, including mandatory prepayments in the event of a change of control as defined in the Indenture and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information and similar matters. As noted above, the Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated DSCR, failure to maintain an aggregate level of Dunkin' Donuts U.S. retail sales on certain measurement dates, certain manager termination events, an event of default, and the failure to repay or refinance the Class A-2 Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. | |
Senior Credit Facility | |
In February 2014, the senior credit facility was amended, which resulted in a reduction of interest rates. 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 debt issuance 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. As of December 27, 2014, $1.82 billion of principal was outstanding on the term loans. | |
The proceeds from the issuance of the Class A-2 Notes were used to repay the remaining principal outstanding on the term loans. The Company recorded a loss on debt extinguishment of $20.6 million, consisting primarily of the write-off of the remaining original issuance discount and debt issuance costs related to the term loans. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Transactions | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivative Instruments and Hedging Transactions | Derivative Instruments and Hedging Transactions | |||||||||||||
Effective December 23, 2014, the Company terminated all interest rate swap agreements with its counterparties in anticipation of the securitization transaction and related repayment of the outstanding term loans (see note 4). 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 in the three months ended March 28, 2015. Upon termination, cash flow hedge accounting was discontinued and the cumulative pre-tax gain was recorded in accumulated other comprehensive loss, which will be amortized on a straight-line basis to interest expense in the consolidated statements of operations through November 23, 2017, the original maturity date of the swaps. | ||||||||||||||
As of March 28, 2015 and December 27, 2014, a pre-tax gain of $5.7 million and $6.2 million, respectively, was recorded in accumulated other comprehensive loss. During the next twelve months, the Company estimates that $2.1 million will be reclassified from accumulated other comprehensive loss as a reduction of interest expense. | ||||||||||||||
The tables below summarize the effects of derivative instruments on the consolidated statements of operations and comprehensive loss for the three months ended March 28, 2015, and March 29, 2014 (in thousands): | ||||||||||||||
Three months ended March 28, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive loss | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | — | 535 | Interest expense | $ | (535 | ) | |||||||
Income tax effect | — | (217 | ) | Provision for income taxes | 217 | |||||||||
Net of income taxes | $ | — | 318 | $ | (318 | ) | ||||||||
Three months ended March 29, 2014 | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive loss | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | (2,035 | ) | (877 | ) | Interest expense | $ | (1,158 | ) | |||||
Income tax effect | 803 | 346 | Provision for income taxes | 457 | ||||||||||
Net of income taxes | $ | (1,232 | ) | (531 | ) | $ | (701 | ) |
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Other Liabilities, Current [Abstract] | |||||||
Other Current Liabilities | Other Current Liabilities | ||||||
Other current liabilities consisted of the following (in thousands): | |||||||
March 28, | December 27, | ||||||
2015 | 2014 | ||||||
Gift card/certificate liability | $ | 100,563 | 151,127 | ||||
Gift card breakage liability | 28,577 | 25,893 | |||||
Accrued salary and benefits | 15,389 | 21,632 | |||||
Accrued legal liabilities (see note 10(c)) | 20,340 | 24,648 | |||||
Accrued interest | 16,407 | 8,351 | |||||
Accrued professional costs | 4,147 | 9,381 | |||||
Franchisee profit-sharing liability | 9,260 | 1,074 | |||||
Other | 22,628 | 16,786 | |||||
Total other current liabilities | $ | 217,311 | 258,892 | ||||
The decrease in the gift card/certificate liability is driven by the seasonality of our gift card program. |
Segment_Information
Segment Information | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
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. Dunkin’ Donuts U.S. also derives revenue through retail sales at company-operated restaurants. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues from the sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on operating income adjusted for amortization of intangible assets, long-lived asset impairment charges, and other infrequent or unusual charges, which 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. | |||||||
Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenue earned through arrangements with third parties in which our brand names are used and revenue generated from online training programs for franchisees that are not allocated to a specific segment. Revenues by segment were as follows (in thousands): | |||||||
Revenues | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts U.S. | $ | 133,867 | 125,219 | ||||
Dunkin’ Donuts International | 6,578 | 4,285 | |||||
Baskin-Robbins U.S. | 9,872 | 9,121 | |||||
Baskin-Robbins International | 23,568 | 30,011 | |||||
Total reportable segment revenues | 173,885 | 168,636 | |||||
Other | 12,020 | 3,312 | |||||
Total revenues | $ | 185,905 | 171,948 | ||||
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. Segment profit by segment was as follows (in thousands): | |||||||
Segment profit | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts U.S. | $ | 93,406 | 89,832 | ||||
Dunkin’ Donuts International | 4,300 | 2,857 | |||||
Baskin-Robbins U.S. | 5,969 | 4,868 | |||||
Baskin-Robbins International | 7,971 | 9,499 | |||||
Total reportable segments | 111,646 | 107,056 | |||||
Corporate | (21,442 | ) | (31,431 | ) | |||
Interest expense, net | (22,042 | ) | (17,872 | ) | |||
Amortization of other intangible assets | (6,200 | ) | (6,405 | ) | |||
Long-lived asset impairment charges | (264 | ) | (123 | ) | |||
Loss on debt extinguishment and refinancing transactions | (20,554 | ) | (13,735 | ) | |||
Other gains (losses), net | (545 | ) | 27 | ||||
Income before income taxes | $ | 40,599 | 37,517 | ||||
Net income of equity method investments, including amortization of intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Income included in “Other” in the table below represents the reduction of depreciation and amortization, net of tax, related to BR Korea Co., Ltd. (“BR Korea”) as the result of an 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 | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts International | $ | 289 | 304 | ||||
Baskin-Robbins International | 2,565 | 2,458 | |||||
Total reportable segments | 2,854 | 2,762 | |||||
Other | 93 | 338 | |||||
Total net income of equity method investments | $ | 2,947 | 3,100 | ||||
Stockholders_Equity_Deficit_an
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Stockholders' Equity | Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests | |||||||||||||||
The changes in total stockholders’ equity (deficit) and redeemable noncontrolling interests were as follows (in thousands): | ||||||||||||||||
Total stockholders’ equity (deficit) | Redeemable noncontrolling interests | |||||||||||||||
Balance at December 27, 2014 | $ | 367,959 | 6,991 | |||||||||||||
Net income (loss) | 25,631 | (206 | ) | |||||||||||||
Other comprehensive income | 554 | — | ||||||||||||||
Dividends paid on common stock | (25,688 | ) | — | |||||||||||||
Exercise of stock options | 1,209 | — | ||||||||||||||
Repurchases of common stock | (465,584 | ) | — | |||||||||||||
Share-based compensation expense | 3,672 | — | ||||||||||||||
Excess tax benefits from share-based compensation | 1,424 | — | ||||||||||||||
Other, net | (820 | ) | — | |||||||||||||
Balance at March 28, 2015 | $ | (91,643 | ) | 6,785 | ||||||||||||
(a) Redeemable Noncontrolling Interests | ||||||||||||||||
As of March 28, 2015, the consolidated balance sheets included $1.4 million of cash and cash equivalents and $11.9 million of property and equipment, net, for the partnership entity with the noncontrolling owners, which may be used only to settle obligations of the partnership. Subsequent to March 28, 2015, the Company acquired the remaining interests from the noncontrolling owners for approximately $5.9 million. | ||||||||||||||||
(b) Treasury Stock | ||||||||||||||||
On February 5, 2015, 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 an initial delivery of 6,951,988 of the Company’s common stock in February 2015, representing an estimate of 80% of the total shares expected to be delivered under the ASR Agreement. 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. Additionally, during the three months ended March 28, 2015, the Company repurchased a total of 1,390,580 shares of common stock in the open market at a weighted average cost per share of $47.14 from existing stockholders. | ||||||||||||||||
The Company accounts for treasury stock under the cost method, and as such recorded an increase in common treasury stock of $385.6 million during the three months ended March 28, 2015 for the shares repurchased under the ASR Agreement and in the open market, based on the fair market value of the shares on the dates of repurchase and direct costs incurred. Additionally, the Company recorded a decrease in additional paid in capital of $80.0 million related to the remaining cash paid under the ASR Agreement. During the three months ended March 28, 2015, the Company retired 8,222,531 shares of treasury stock, resulting in decreases in treasury stock and additional paid-in capital of $379.8 million and $84.0 million, respectively, and an increase in accumulated deficit of $295.9 million. As of March 28, 2015, $5.8 million remained unpaid related to the repurchase of common stock, which was included in accounts payable and other current liabilities in the consolidated balance sheets. | ||||||||||||||||
(c) Equity Incentive Plans | ||||||||||||||||
During the three months ended March 28, 2015, the Company granted stock options to purchase 1,621,899 shares of common stock, 21,101 restricted stock awards (“RSAs”), and 68,173 restricted stock units (“RSUs”) to certain employees. The stock options generally vest in equal annual amounts over a four-year period subsequent to the grant date, and have a maximum contractual term of seven years. The stock options were granted with an exercise price of $47.39 per share and have a weighted average grant-date fair value of $8.66 per share. The RSAs will vest in equal installments in February 2018 and February 2019, and have a grant-date fair value of $47.39 per share. The RSUs vest over a three-year period subsequent to the grant date and have a weighted average grant-date fair value of $45.08 per share. | ||||||||||||||||
Total compensation expense related to all share-based awards was $3.7 million and $1.8 million for the three months ended March 28, 2015 and March 29, 2014, respectively, and is included in general and administrative expenses, net in the consolidated statements of operations. | ||||||||||||||||
(d) Accumulated Other Comprehensive Loss | ||||||||||||||||
The changes in the components of accumulated other comprehensive loss were as follows (in thousands): | ||||||||||||||||
Effect of foreign | Unrealized gains (losses) on interest rate swaps | Unrealized gain (loss) on pension plan | Other | Accumulated | ||||||||||||
currency | other | |||||||||||||||
translation | comprehensive | |||||||||||||||
loss | ||||||||||||||||
Balance at December 27, 2014 | $ | (13,738 | ) | 3,716 | (2,874 | ) | (1,081 | ) | (13,977 | ) | ||||||
Other comprehensive income (loss) | 1,379 | (318 | ) | 30 | (537 | ) | 554 | |||||||||
Balance at March 28, 2015 | $ | (12,359 | ) | 3,398 | (2,844 | ) | (1,618 | ) | (13,423 | ) | ||||||
(e) Dividends | ||||||||||||||||
The Company paid a quarterly dividend of $0.265 per share of common stock on March 18, 2015, totaling approximately $25.7 million. On April 23, 2015, we announced that our board of directors approved the next quarterly dividend of $0.265 per share of common stock payable June 17, 2015 to shareholders of record at the close of business on June 9, 2015. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings per Share | Earnings per Share | ||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Net income attributable to Dunkin’ Brands—basic and diluted (in thousands) | $ | 25,631 | 22,956 | ||||
Weighted average number of common shares: | |||||||
Common—basic | 100,271,701 | 106,501,856 | |||||
Common—diluted | 101,502,438 | 107,980,160 | |||||
Earnings per common share: | |||||||
Common—basic | $ | 0.26 | 0.22 | ||||
Common—diluted | 0.25 | 0.21 | |||||
The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,230,737 and 1,478,304 equity awards for the three months ended March 28, 2015 and March 29, 2014, 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 contingently issuable equity awards for which the contingent vesting criteria were not yet met as of the fiscal period end. As of March 28, 2015 and March 29, 2014, there were 150,000 restricted shares that were contingently issuable and for which the contingent vesting criteria were not yet met as of the fiscal period end. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes 3,084,195 and 1,496,216 equity awards for the three months ended March 28, 2015 and March 29, 2014, respectively, as they would be antidilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
(a) 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 $2.0 million and $2.2 million at March 28, 2015 and December 27, 2014, respectively. At March 28, 2015 and December 27, 2014, there were no amounts under such guarantees that were due. The Company assesses the risk of performing under these guarantees for each franchisee relationship on a quarterly basis. As of March 28, 2015 and December 27, 2014, the Company recorded an immaterial amount of reserves for such guarantees. | |
Supply Chain Guarantees | |
The Company entered into a third-party guarantee with a distribution facility that guarantees franchisees will purchase a certain volume of product over a 10-year period. As product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. As of March 28, 2015 and December 27, 2014, the Company was contingently liable for $4.0 million and $4.3 million, respectively, under this guarantee. Additionally, the Company has various supply chain contracts that generally provide for purchase commitments or exclusivity, the majority of which result in the Company being contingently liable upon early termination of the agreement or engaging with another supplier. As of March 28, 2015 and December 27, 2014, the Company was contingently liable under such supply chain agreements for approximately $49.2 million and $51.5 million, respectively. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we have accrued $403 thousand and $507 thousand related to these commitments as of March 28, 2015 and December 27, 2014, respectively, which are included in other current liabilities in the consolidated balance sheets. | |
Lease Guarantees | |
The Company is contingently liable on certain lease agreements typically resulting from assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants and the guarantee of certain other leases. These leases have varying terms, the latest of which expires in 2024. As of March 28, 2015 and December 27, 2014, the potential amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessee was $5.9 million and $6.3 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. | |
(b) Letters of Credit | |
At March 28, 2015 and December 27, 2014, the Company had standby letters of credit outstanding for a total of $26.4 million and $2.9 million, respectively. There were no amounts drawn down on these letters of credit. | |
(c) Legal Matters | |
In May 2003, a group of Dunkin’ Donuts franchisees from Quebec, Canada filed a lawsuit against the Company on a variety of claims, based on events which primarily occurred 10 to 15 years ago, including but not limited to, alleging that the Company breached its franchise agreements and provided inadequate management and support to Dunkin’ Donuts franchisees in Quebec (the “Bertico litigation”). In June 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, plus costs and interest, representing loss in value of the franchises and lost profits. The Company appealed the decision, and in April 2015, the Quebec Court of Appeals (Montreal) ruled to reduce the damages to approximately C$10.9 million, plus costs and interest. Similar claims have also been made against the Company by other former Dunkin’ Donuts franchisees in Canada. As a result of the Bertico litigation appellate ruling and assessment of similar claims, the Company reduced its aggregate legal reserves for the Bertico litigation and similar claims by approximately $2.8 million as of March 28, 2015 which is recorded within general and administrative expenses, net in the consolidated statements of operations, resulting in an estimated liability of $19.6 million as of that date. | |
Additionally, 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 March 28, 2015 and December 27, 2014, contingent liabilities, excluding the Bertico litigation and related matters, totaling $745 thousand and $765 thousand, respectively, were included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the probable loss which may be incurred in connection with these matters. |
RelatedParty_Transactions
Related-Party Transactions | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Related Party Transactions [Abstract] | |||||||
Related-Party Transactions | Related-Party Transactions | ||||||
(a) Advertising Funds | |||||||
At March 28, 2015 and December 27, 2014, the Company had a net payable of $8.5 million and $13.8 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 $2.4 million and $1.9 million for the three months ended March 28, 2015 and March 29, 2014, respectively. Such management fees are included in the consolidated statements of operations as a reduction in general and administrative expenses, net. | |||||||
The Company made net contributions to the advertising funds based on retail sales at company-operated restaurants of $265 thousand and $264 thousand during the three months ended March 28, 2015 and March 29, 2014, respectively, which are included in company-operated restaurant expenses in the consolidated statements of operations. The Company also funded initiatives that will benefit the gift card program of $512 thousand and $1.7 million during the three months ended March 28, 2015 and March 29, 2014, respectively, which was contributed from the gift card breakage liability included within other current liabilities in the consolidated balance sheets (see note 6). | |||||||
(b) Equity Method Investments | |||||||
The Company recognized royalty income from its equity method investees as follows (in thousands): | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
B-R 31 Ice Cream Co., Ltd. | $ | 242 | 311 | ||||
BR Korea | 1,013 | 1,047 | |||||
$ | 1,255 | 1,358 | |||||
At March 28, 2015 and December 27, 2014, the Company had $1.1 million and $1.4 million, respectively, of royalties receivable from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful accounts, in the consolidated balance sheets. | |||||||
The Company made net payments to its equity method investees totaling approximately $998 thousand and $495 thousand during the three months ended March 28, 2015 and March 29, 2014, respectively, primarily for the purchase of ice cream products and incentive payments. | |||||||
As of March 28, 2015 and December 27, 2014, the Company had $2.3 million and $2.5 million, respectively, of notes receivable from Coffee Alliance S.L., an equity method investee, of which $2.3 million was reserved. The notes receivable, net of the reserve, are included in other assets in the consolidated balance sheets. | |||||||
The Company recognized sales of ice cream products of $449 thousand and $1.1 million during the three months ended March 28, 2015 and March 29, 2014, respectively, in the consolidated statements of operations from the sale of ice cream products to Palm Oasis Ventures Pty. Ltd. (“Australia JV”), of which the Company owns a 20 percent equity interest. As of March 28, 2015 and December 27, 2014, the Company had $1.9 million and $3.1 million, respectively, of net receivables from the Australia JV, consisting of accounts receivable and notes and other receivables, net of other current liabilities. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||
Mar. 28, 2015 | |||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |||||||||||||
Unaudited Financial Statements | Unaudited Consolidated Financial Statements | ||||||||||||
The consolidated balance sheet as of March 28, 2015 and the consolidated statements of operations, comprehensive income, and cash flows for the three months ended March 28, 2015 and March 29, 2014 are unaudited. | |||||||||||||
The accompanying unaudited consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 27, 2014, included in the Company’s Annual Report on Form 10-K. | |||||||||||||
Fiscal Year | Fiscal Year | ||||||||||||
The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within our three month periods ended March 28, 2015 and March 29, 2014 reflect the results of operations for the 13-week periods ended on those dates. Operating results for the three month period ended March 28, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 26, 2015. | |||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||
In accordance with the Company's securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company held restricted cash which primarily represented (i) cash collections held by the Trustee, (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company's Notes (see note 4), and (iii) real estate reserves used to pay real estate obligations. Changes in restricted cash accounts are presented as either a component of cash flows from operating or financing activities in the consolidated statements of cash flows based on the nature of the restricted balance. | |||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||
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 March 28, 2015 and December 27, 2014 are summarized as follows (in thousands): | |||||||||||||
28-Mar-15 | 27-Dec-14 | ||||||||||||
Significant | Total | Significant | Total | ||||||||||
other | other | ||||||||||||
observable | observable | ||||||||||||
inputs | inputs | ||||||||||||
(Level 2) | (Level 2) | ||||||||||||
Assets: | |||||||||||||
Company-owned life insurance | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Total assets | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Liabilities: | |||||||||||||
Deferred compensation liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
Total liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax deferral of compensation for certain qualifying employees and directors. 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 include company-owned life insurance policies, to partially offset the Company’s liabilities under the NQDC Plan. 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 carrying value and estimated fair value of long-term debt as of March 28, 2015 and December 27, 2014 were as follows (in thousands): | |||||||||||||
March 28, 2015 | 27-Dec-14 | ||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||
Financial liabilities | |||||||||||||
Long-term debt | $ | 2,501,332 | 2,541,376 | 1,810,933 | 1,778,066 | ||||||||
The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, our long-term debt is classified within Level 2, as defined under U.S. GAAP. | |||||||||||||
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 March 28, 2015 and December 27, 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 19% of total accounts and notes receivable, which was primarily due to the timing of orders and shipments of ice cream to the master licensee. For the three months ended March 29, 2014, one master licensee, including its majority-owned subsidiaries, accounted for approximately 11% of total revenues. No individual franchisee or master licensee accounted for more than 10% of total revenues for the three months ended March 28, 2015. | |||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) 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 currently effective for the Company in fiscal year 2017 and early adoption is not permitted. In April 2015, the FASB proposed deferring the effective date of the guidance by one year, and also proposed permitting early adoption of the standard, but not before the original effective date. 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. | |||||||||||||
In April 2015, the FASB issued new guidance to simplify the presentation of debt issuance costs, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums, instead of as an asset. This guidance is effective for the Company in fiscal year 2016, and early adoption is permitted. The adoption of this guidance by the Company will result in the reclassification of debt issuance costs, which were approximately $40.2 million and $11.5 million as of March 28, 2015 and December 27, 2014, respectively, from other assets to long-term debt, net in the consolidated balance sheets, resulting in a corresponding reduction in total assets and total long-term liabilities. The adoption of this guidance will not have any impact on the Company’s consolidated statements of operations or cash flows. | |||||||||||||
Reclassifications | Reclassifications | ||||||||||||
The Company has revised the presentation of certain captions for the three months ended March 29, 2014 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 through the date these consolidated financial statements were filed. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Mar. 28, 2015 | |||||||||||||
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of March 28, 2015 and December 27, 2014 are summarized as follows (in thousands): | ||||||||||||
28-Mar-15 | 27-Dec-14 | ||||||||||||
Significant | Total | Significant | Total | ||||||||||
other | other | ||||||||||||
observable | observable | ||||||||||||
inputs | inputs | ||||||||||||
(Level 2) | (Level 2) | ||||||||||||
Assets: | |||||||||||||
Company-owned life insurance | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Total assets | $ | 3,022 | 3,022 | 2,975 | 2,975 | ||||||||
Liabilities: | |||||||||||||
Deferred compensation liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
Total liabilities | $ | 8,767 | 8,767 | 8,488 | 8,488 | ||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value and estimated fair value of long-term debt as of March 28, 2015 and December 27, 2014 were as follows (in thousands): | ||||||||||||
March 28, 2015 | 27-Dec-14 | ||||||||||||
Carrying Value | Estimated fair value | Carrying Value | Estimated fair value | ||||||||||
Financial liabilities | |||||||||||||
Long-term debt | $ | 2,501,332 | 2,541,376 | 1,810,933 | 1,778,066 | ||||||||
Franchise_Fees_and_Royalty_Inc1
Franchise Fees and Royalty Income (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Disclosure Franchise Fees And Royalty Income [Abstract] | |||||||
Schedule Of Franchise Revenue Table | Franchise fees and royalty income consisted of the following (in thousands): | ||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Royalty income | $ | 106,121 | 98,599 | ||||
Initial franchise fees and renewal income | 9,204 | 8,113 | |||||
Total franchise fees and royalty income | $ | 115,325 | 106,712 | ||||
Changes in Franchised and Company-Owned Points of Distribution | The changes in franchised and company-operated points of distribution were as follows: | ||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Systemwide Points of Distribution: | |||||||
Franchised points of distribution in operation—beginning of period | 18,821 | 18,122 | |||||
Franchised points of distribution—opened | 298 | 266 | |||||
Franchised points of distribution—closed | (219 | ) | (170 | ) | |||
Net transfers from company-operated points of distribution | (2 | ) | — | ||||
Franchised points of distribution in operation—end of period | 18,898 | 18,218 | |||||
Company-operated points of distribution—end of period | 43 | 36 | |||||
Total systemwide points of distribution—end of period | 18,941 | 18,254 | |||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Transactions (Tables) | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The tables below summarize the effects of derivative instruments on the consolidated statements of operations and comprehensive loss for the three months ended March 28, 2015, and March 29, 2014 (in thousands): | |||||||||||||
Three months ended March 28, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive loss | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | — | 535 | Interest expense | $ | (535 | ) | |||||||
Income tax effect | — | (217 | ) | Provision for income taxes | 217 | |||||||||
Net of income taxes | $ | — | 318 | $ | (318 | ) | ||||||||
Three months ended March 29, 2014 | ||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in other comprehensive loss | Amount of net gain (loss) reclassified into earnings | Consolidated statement of operations classification | Total effect on other comprehensive income | ||||||||||
Interest rate swaps | $ | (2,035 | ) | (877 | ) | Interest expense | $ | (1,158 | ) | |||||
Income tax effect | 803 | 346 | Provision for income taxes | 457 | ||||||||||
Net of income taxes | $ | (1,232 | ) | (531 | ) | $ | (701 | ) |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Other Liabilities, Current [Abstract] | |||||||
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): | ||||||
March 28, | December 27, | ||||||
2015 | 2014 | ||||||
Gift card/certificate liability | $ | 100,563 | 151,127 | ||||
Gift card breakage liability | 28,577 | 25,893 | |||||
Accrued salary and benefits | 15,389 | 21,632 | |||||
Accrued legal liabilities (see note 10(c)) | 20,340 | 24,648 | |||||
Accrued interest | 16,407 | 8,351 | |||||
Accrued professional costs | 4,147 | 9,381 | |||||
Franchisee profit-sharing liability | 9,260 | 1,074 | |||||
Other | 22,628 | 16,786 | |||||
Total other current liabilities | $ | 217,311 | 258,892 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Revenues by Segment | Revenues by segment were as follows (in thousands): | ||||||
Revenues | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts U.S. | $ | 133,867 | 125,219 | ||||
Dunkin’ Donuts International | 6,578 | 4,285 | |||||
Baskin-Robbins U.S. | 9,872 | 9,121 | |||||
Baskin-Robbins International | 23,568 | 30,011 | |||||
Total reportable segment revenues | 173,885 | 168,636 | |||||
Other | 12,020 | 3,312 | |||||
Total revenues | $ | 185,905 | 171,948 | ||||
Segment Profit by Segment | 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. Segment profit by segment was as follows (in thousands): | ||||||
Segment profit | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts U.S. | $ | 93,406 | 89,832 | ||||
Dunkin’ Donuts International | 4,300 | 2,857 | |||||
Baskin-Robbins U.S. | 5,969 | 4,868 | |||||
Baskin-Robbins International | 7,971 | 9,499 | |||||
Total reportable segments | 111,646 | 107,056 | |||||
Corporate | (21,442 | ) | (31,431 | ) | |||
Interest expense, net | (22,042 | ) | (17,872 | ) | |||
Amortization of other intangible assets | (6,200 | ) | (6,405 | ) | |||
Long-lived asset impairment charges | (264 | ) | (123 | ) | |||
Loss on debt extinguishment and refinancing transactions | (20,554 | ) | (13,735 | ) | |||
Other gains (losses), net | (545 | ) | 27 | ||||
Income before income taxes | $ | 40,599 | 37,517 | ||||
Equity in Net Income of Joint Ventures Reportable Segment | Net income of equity method investments by reportable segment was as follows (in thousands): | ||||||
Net income of equity method investments | |||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Dunkin’ Donuts International | $ | 289 | 304 | ||||
Baskin-Robbins International | 2,565 | 2,458 | |||||
Total reportable segments | 2,854 | 2,762 | |||||
Other | 93 | 338 | |||||
Total net income of equity method investments | $ | 2,947 | 3,100 | ||||
Stockholders_Equity_Deficit_an1
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests (Tables) | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Schedule of Shareholders' Equity | The changes in total stockholders’ equity (deficit) and redeemable noncontrolling interests were as follows (in thousands): | |||||||||||||||
Total stockholders’ equity (deficit) | Redeemable noncontrolling interests | |||||||||||||||
Balance at December 27, 2014 | $ | 367,959 | 6,991 | |||||||||||||
Net income (loss) | 25,631 | (206 | ) | |||||||||||||
Other comprehensive income | 554 | — | ||||||||||||||
Dividends paid on common stock | (25,688 | ) | — | |||||||||||||
Exercise of stock options | 1,209 | — | ||||||||||||||
Repurchases of common stock | (465,584 | ) | — | |||||||||||||
Share-based compensation expense | 3,672 | — | ||||||||||||||
Excess tax benefits from share-based compensation | 1,424 | — | ||||||||||||||
Other, net | (820 | ) | — | |||||||||||||
Balance at March 28, 2015 | $ | (91,643 | ) | 6,785 | ||||||||||||
Changes in Components of Accumulated Other Comprehensive Income | The changes in the components of accumulated other comprehensive loss were as follows (in thousands): | |||||||||||||||
Effect of foreign | Unrealized gains (losses) on interest rate swaps | Unrealized gain (loss) on pension plan | Other | Accumulated | ||||||||||||
currency | other | |||||||||||||||
translation | comprehensive | |||||||||||||||
loss | ||||||||||||||||
Balance at December 27, 2014 | $ | (13,738 | ) | 3,716 | (2,874 | ) | (1,081 | ) | (13,977 | ) | ||||||
Other comprehensive income (loss) | 1,379 | (318 | ) | 30 | (537 | ) | 554 | |||||||||
Balance at March 28, 2015 | $ | (12,359 | ) | 3,398 | (2,844 | ) | (1,618 | ) | (13,423 | ) | ||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
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: | ||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Net income attributable to Dunkin’ Brands—basic and diluted (in thousands) | $ | 25,631 | 22,956 | ||||
Weighted average number of common shares: | |||||||
Common—basic | 100,271,701 | 106,501,856 | |||||
Common—diluted | 101,502,438 | 107,980,160 | |||||
Earnings per common share: | |||||||
Common—basic | $ | 0.26 | 0.22 | ||||
Common—diluted | 0.25 | 0.21 | |||||
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Related Party Transactions [Abstract] | |||||||
Related Party Transactions | The Company recognized royalty income from its equity method investees as follows (in thousands): | ||||||
Three months ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
B-R 31 Ice Cream Co., Ltd. | $ | 242 | 311 | ||||
BR Korea | 1,013 | 1,047 | |||||
$ | 1,255 | 1,358 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | |
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Financial reporting and operating period, quarter | 91 days | 91 days | |
Carrying Value and Estimated Fair Value Of Long Term Debt [Abstract] | |||
Term loans, Carrying Value | $2,501,332,000 | $1,810,933,000 | |
Term loans, Estimated fair value | 2,541,376,000 | 1,778,066,000 | |
Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Debt issuance cost | $40,200,000 | $11,500,000 | |
Manufacture and/or Distributer [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Concentration risk, number of vendors | 1 | 0 | |
Percentage of purchases | 13.00% | ||
Minimum | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Financial reporting and operating period, year | 364 days | ||
Maximum | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Financial reporting and operating period, year | 371 days | ||
Customer Concentration Risk [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Percentage of receivable from one master licensee account | 19.00% | 19.00% | |
Percentage of revenues from one master licensee account | 11.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Concentration risk, number of customers | 1 | 1 | |
Customer Concentration Risk [Member] | Sales [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Concentration risk, number of customers | 0 | 1 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | $3,022 | $2,975 |
Liabilities | 8,767 | 8,488 |
Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 3,022 | 2,975 |
Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | 8,767 | 8,488 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 3,022 | 2,975 |
Liabilities | 8,767 | 8,488 |
Significant other observable inputs (Level 2) | Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 3,022 | 2,975 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | $8,767 | $8,488 |
Franchise_Fees_and_Royalty_Inc2
Franchise Fees and Royalty Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Disclosure Franchise Fees And Royalty Income [Abstract] | ||
Royalty income | $106,121 | $98,599 |
Initial franchise fees and renewal income | 9,204 | 8,113 |
Total franchise fees and royalty income | $115,325 | $106,712 |
Changes_in_Franchised_and_Comp
Changes in Franchised and Company-Owned Points of Distribution (Detail) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
distributor | distributor | |
Number of Franchises [Roll Forward] | ||
Franchised points of distribution in operation—beginning of period | 18,821 | 18,122 |
Franchised points of distribution—opened | 298 | 266 |
Franchised points of distribution—closed | -219 | -170 |
Net transfers from company-operated points of distribution | -2 | |
Franchised points of distribution in operation—end of period | 18,898 | 18,218 |
Company-operated points of distribution—end of period | 43 | 36 |
Total systemwide points of distribution—end of period | 18,941 | 18,254 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Sep. 27, 2014 | Dec. 27, 2014 | Jan. 26, 2015 | |
Debt Instrument [Line Items] | ||||||
Amounts drawn on letters of credit | $0 | $0 | ||||
Standby letters of credit | 26,400,000 | 2,900,000 | ||||
Loss on debt extinguishment and refinancing transactions | 13,700,000 | 20,554,000 | 13,735,000 | 20,600,000 | ||
Write off of Deferred Debt Issuance Cost | 10,500,000 | |||||
Other debt extinguishment and refinancing expense | 3,200,000 | 41,300,000 | ||||
Debt Instrument, Unamortized Discount Percentage | 0.25% | |||||
Debt issuance discount | 4,600,000 | |||||
Deferred Finance Costs, Gross | 1,200,000 | |||||
Leverage Ratio Maximum, No Excess Cash Flow Payment | 5 | |||||
Variable Funding Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 2.25% | |||||
Variable Funding Notes [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate components | 2.25% | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Standby letters of credit | 1,820,000,000 | |||||
A-2-I [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.26% | |||||
Debt Instrument, Face Amount | 750,000,000 | |||||
Effective interest rate | 3.50% | |||||
Long-term Line of Credit | 750,000,000 | |||||
Repayment of credit facility per calendar year | 7,500,000 | |||||
A-2-II [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |||||
Debt Instrument, Face Amount | 1,750,000,000 | |||||
Effective interest rate | 4.30% | |||||
Long-term Line of Credit | 1,750,000,000 | |||||
Repayment of credit facility per calendar year | 17,500,000 | |||||
Variable Funding Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $100,000,000 | |||||
Variable Funding Notes [Member] | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||||
Variable Funding Notes [Member] | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% |
Recovered_Sheet1
Derivative instruments and Hedging Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 26, 2016 | Dec. 23, 2014 |
Derivative [Line Items] | ||||
Derivative, Gain on Derivative | $5.70 | $6.20 | ||
Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Fair Value, Net | 6.3 | |||
Accrued Liabilities | 1 | |||
Proceeds from Derivative Instrument, Investing Activities | 1.7 | 3.6 | ||
Scenario, Forecast [Member] | ||||
Derivative [Line Items] | ||||
Estimated reclassification from Accumulated OCI to Income for the next twelve months | $2.10 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Transaction - Derivative Effects (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Derivative [Line Items] | ||
Interest rate swaps, Total effect on other comprehensive income (loss) | ($535) | ($1,158) |
Income tax effect, Total effect on other comprehensive income (loss) | 217 | 457 |
Net of income taxes, Amount of gain (loss) recognized in other comprehensive income (loss) | 0 | -1,232 |
Net of income taxes, Amount of net gain (loss) reclassified into earnings | 318 | -531 |
Net of income taxes, Total effect on other comprehensive income (loss) | -318 | -701 |
Interest Expense [Member] | ||
Derivative [Line Items] | ||
Interest rate swaps, Amount of gain (loss) recognized in other comprehensive income (loss) | 0 | -2,035 |
Interest rate swaps, Amount of net gain (loss) reclassified into earnings | 535 | -877 |
Provision for Income Taxes [Member] | ||
Derivative [Line Items] | ||
Income tax effect, Amount of gain (loss) recognized in other comprehensive income (loss) | 0 | 803 |
Income tax effect, Amount of net gain (loss) reclassified into earnings | ($217) | $346 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $100,563 | $151,127 |
Gift card breakage liability | 28,577 | 25,893 |
Accrued salary and benefits | 15,389 | 21,632 |
Accrued legal liabilities | 20,340 | 24,648 |
Interest Payable, Current | 16,407 | 8,351 |
Accrued professional costs | 4,147 | 9,381 |
Franchisee profit-sharing liability | 9,260 | 1,074 |
Other | 22,628 | 16,786 |
Total other current liabilities | $217,311 | $258,892 |
Revenues_by_Segment_Detail
Revenues by Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $185,905 | $171,948 |
Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 12,020 | 3,312 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 173,885 | 168,636 |
Operating Segments | Dunkin' Donuts | United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 133,867 | 125,219 |
Operating Segments | Dunkin' Donuts | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 6,578 | 4,285 |
Operating Segments | Baskin-Robbins | United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 9,872 | 9,121 |
Operating Segments | Baskin-Robbins | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $23,568 | $30,011 |
Segment_Profit_by_Segment_Deta
Segment Profit by Segment (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Sep. 27, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | $25,425 | $22,828 | ||
Corporate | -21,442 | -31,431 | ||
Interest expense, net | -22,042 | -17,872 | ||
Amortization of other intangible assets | -6,200 | -6,405 | ||
Long-lived asset impairment charges | -264 | -123 | ||
Loss on debt extinguishment and refinancing transactions | -13,700 | -20,554 | -13,735 | -20,600 |
Other gains (losses), net | -545 | 27 | ||
Income before income taxes | 40,599 | 37,517 | ||
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 111,646 | 107,056 | ||
Operating Segments | Dunkin' Donuts | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 93,406 | 89,832 | ||
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 4,300 | 2,857 | ||
Operating Segments | Baskin-Robbins | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 5,969 | 4,868 | ||
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | $7,971 | $9,499 |
Equity_in_Net_Income_of_Joint_
Equity in Net Income of Joint Ventures Reportable Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments, excluding impairment | $2,947 | $3,100 |
Other | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments, excluding impairment | 93 | 338 |
Operating Segments | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments, excluding impairment | 2,854 | 2,762 |
Operating Segments | Dunkin' Donuts | International | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments, excluding impairment | 289 | 304 |
Operating Segments | Baskin-Robbins | International | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments, excluding impairment | $2,565 | $2,458 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 28, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Stockholders_Equity_Deficit_an2
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Sep. 03, 2014 | Jun. 04, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Apr. 23, 2015 | Feb. 05, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Class of Stock [Line Items] | ||||||||
Cash and cash equivalents | $340,393,000 | $202,420,000 | $208,080,000 | $256,933,000 | ||||
Property and equipment, net | 181,069,000 | 182,061,000 | ||||||
Increase in treasury stock | 465,584,000 | |||||||
Dividend per share of common stock paid (in usd per share) | $0.27 | |||||||
Dividends paid on common stock | 25,688,000 | 24,520,000 | ||||||
Dividend per share of common stock declared (in usd per share) | $0.27 | $0.23 | ||||||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Dividend per share of common stock declared (in usd per share) | $0.27 | |||||||
Accelerated Share Repurchase Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | 400,000,000 | |||||||
Percent of Shares Expected to be Delivered | 80.00% | |||||||
Treasury stock acquired (in shares) | 6,951,988 | |||||||
2011 Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Options granted | 1,621,899 | |||||||
Grant price (in usd per share) | $47.39 | |||||||
Options, grant date fair value (in usd per share) | $8.66 | |||||||
Compensation expense related to share-based awards | 3,700,000 | 1,800,000 | ||||||
2011 Plan | Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted (in shares) | 21,101 | |||||||
Grant price (in usd per share) | $47.39 | |||||||
2011 Plan | Employee Stock Option | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensations, vesting period | 4 years | |||||||
Options, maximum contractual term | 7 years | |||||||
2011 Plan | Restricted Stock Units (RSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted (in shares) | 68,173 | |||||||
Share-based compensations, vesting period | 3 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $45.08 | |||||||
Partnership [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Cash and cash equivalents | 1,400,000 | |||||||
Property and equipment, net | 11,900,000 | |||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | 5,900,000 | |||||||
Treasury Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock acquired (in shares) | 1,390,580 | |||||||
Treasury stock acquired, weighted average price (in usd per share) | $47.14 | |||||||
Increase in treasury stock | 385,600,000 | |||||||
Treasury stock, shares retired | 8,222,531 | |||||||
Stockholders' Equity, Period Increase (Decrease) | -379,800,000 | |||||||
Unpaid amount related to the repurchase of common stock | 5,800,000 | |||||||
Additional Paid-in Capital [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' Equity, Period Increase (Decrease) | -84,000,000 | |||||||
Additional Paid-in Capital [Member] | Accelerated Share Repurchase Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' Equity, Period Increase (Decrease) | 80,000,000 | |||||||
Accumulated Deficit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' Equity, Period Increase (Decrease) | $295,900,000 |
Changes_in_Total_Shareholders_
Changes in Total Shareholders' Equity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at December 27, 2014 | $367,959 | |
Net income attributable to Dunkin' Brands | 25,631 | 22,956 |
Other comprehensive loss | 554 | 1,248 |
Dividends paid on common stock | -25,688 | |
Exercise of stock options | 1,209 | |
Repurchases of common stock | -465,584 | |
Share-based compensation expense | 3,672 | |
Excess tax benefits from share-based compensation | 1,424 | 5,465 |
Other, net | -820 | |
Balance at March 28, 2015 | -91,643 | |
Redeemable noncontrolling interests [Roll Forward] | ||
Balance at December 27, 2014 | 6,991 | |
Net income | -206 | |
Balance at March 28, 2015 | $6,785 |
Changes_in_Components_of_Accum
Changes in Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | ($13,977) |
Current period changes | 554 |
Balance at end of period | -13,423 |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -13,738 |
Current period changes | 1,379 |
Balance at end of period | -12,359 |
Unrealized gains (losses) on interest rate swaps | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | 3,716 |
Current period changes | -318 |
Balance at end of period | 3,398 |
Unrealized gain (loss) on pension plan | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -2,874 |
Current period changes | 30 |
Balance at end of period | -2,844 |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -1,081 |
Current period changes | -537 |
Balance at end of period | ($1,618) |
Earnings_Per_Shares_Additional
Earnings Per Shares - Additional Information (Detail) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities, effect on basic earnings per share, including options and restrictive units | 1,230,737 | 1,478,304 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive security excluded from calculation, restricted stock awards (in shares) | 150,000 | 150,000 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 3,084,195 | 1,496,216 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Net income attributable to Dunkin' Brands-basic and diluted | $25,631 | $22,956 |
Weighted average number of common shares: | ||
Common-basic (in shares) | 100,271,701 | 106,501,856 |
Common-diluted (in shares) | 101,502,438 | 107,980,160 |
Earnings (loss) per common share: | ||
Common-basic (in dollars per share) | $0.26 | $0.22 |
Common-diluted (in dollars per share) | $0.25 | $0.21 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Dec. 27, 2014 | Jun. 22, 2012 | Mar. 28, 2015 | Dec. 28, 2013 | Apr. 30, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
USD ($) | USD ($) | Performance Guarantee [Member] | Performance Guarantee [Member] | Other Legal Matter [Member] | Other Legal Matter [Member] | General and Administrative Expense [Member] | Financial Guarantee [Member] | Financial Guarantee [Member] | Lease Agreements | Lease Agreements | Bertico litigation | Bertico litigation | Bertico litigation | Bertico litigation | Supply Commitment | Supply Commitment | Transaction 02 | Transaction 02 | Minimum | Minimum | Maximum | Maximum | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | Subsequent Event [Member] | USD ($) | USD ($) | Purchase Commitment | Purchase Commitment | |||||||
CAD | USD ($) | USD ($) | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||||||||||||
Franchisees financing term | 3 years | 3 years | 10 years | 10 years | |||||||||||||||||||
Guarantee obligation, maximum exposure | $2,000,000 | $2,200,000 | $5,900,000 | $6,300,000 | $49,200,000 | $51,500,000 | $4,000,000 | $4,300,000 | |||||||||||||||
Loss Contingency Accrual | 403,000 | 507,000 | |||||||||||||||||||||
Guarantee obligations period | 10 years | 10 years | |||||||||||||||||||||
Standby letters of credit | 26,400,000 | 2,900,000 | |||||||||||||||||||||
Amounts drawn on letters of credit | 0 | 0 | |||||||||||||||||||||
Guarantor Obligations, Current Carrying Value | 0 | 0 | |||||||||||||||||||||
Litigation judgment | 16,400,000 | 10,900,000 | |||||||||||||||||||||
Decrease in Legal Reserve | 2,800,000 | ||||||||||||||||||||||
Contingent liabilities related to legal matters | $745,000 | $765,000 | $19,600,000 |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | |
Related Party Transaction [Line Items] | |||
Net payable of advertising funds | $8,500,000 | $13,800,000 | |
Fee for managing advertising funds | 2,400,000 | 1,900,000 | |
Advertising funds contribution, company-owned restaurant | 265,000 | 264,000 | |
Advertising funds contribution, prepaid future initiatives | 512,000 | 1,700,000 | |
Royalties receivable from joint ventures | 1,100,000 | 1,400,000 | |
B-R 31 Ice Cream Co., Ltd. ("BR Japan") | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 242,000 | 311,000 | |
BR Korea Co., Ltd. ("BR Korea") | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 1,013,000 | 1,047,000 | |
Coffee Alliance, S.L. (Coffee Alliance) | |||
Related Party Transaction [Line Items] | |||
Loans receivable | 2,300,000 | 2,500,000 | |
Loans receivable, reserve | 2,300,000 | 2,300,000 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 1,255,000 | 1,358,000 | |
Joint Ventures | |||
Related Party Transaction [Line Items] | |||
Payments to joint ventures | 998,000 | 495,000 | |
Australia Joint Venture | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 449,000 | 1,100,000 | |
Ownership percentage | 20.00% | 20.00% | |
Due from joint ventures | $1,900,000 | $3,100,000 |