Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | DNKN | |
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | |
Entity Central Index Key | 1,357,204 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 83,776,757 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 367,940 | $ 1,018,317 |
Restricted cash | 84,970 | 94,047 |
Accounts receivable, net of allowance for doubtful accounts of $3,855 and $4,390 as of June 30, 2018 and December 30, 2017, respectively | 88,790 | 69,517 |
Notes and other receivables, net of allowance for doubtful accounts of $1,043 and $600 as of June 30, 2018 and December 30, 2017, respectively | 40,117 | 52,332 |
Prepaid income taxes | 17,754 | 21,927 |
Prepaid expenses and other current assets | 56,906 | 48,193 |
Total current assets | 656,477 | 1,304,333 |
Property, equipment, and software, net of accumulated depreciation of $151,483 and $143,319 as of June 30, 2018 and December 30, 2017, respectively | 204,011 | 181,542 |
Equity method investments | 137,910 | 140,615 |
Goodwill | 888,284 | 888,308 |
Other intangible assets, net of accumulated amortization of $257,930 and $250,142 as of June 30, 2018 and December 30, 2017, respectively | 1,345,309 | 1,357,157 |
Other assets | 66,737 | 65,478 |
Total assets | 3,298,728 | 3,937,433 |
Current liabilities: | ||
Current portion of long-term debt | 31,650 | 31,500 |
Capital lease obligations | 631 | 596 |
Accounts payable | 68,783 | 53,417 |
Deferred revenue | 44,175 | 44,876 |
Other current liabilities | 284,768 | 355,110 |
Total current liabilities | 430,007 | 485,499 |
Long-term debt, net | 3,023,955 | 3,035,857 |
Capital lease obligations | 6,851 | 7,180 |
Unfavorable operating leases acquired | 9,033 | 9,780 |
Deferred revenue | 366,246 | 361,458 |
Deferred income taxes, net | 205,859 | 214,345 |
Other long-term liabilities | 74,582 | 77,853 |
Total long-term liabilities | 3,686,526 | 3,706,473 |
Commitments and contingencies (note 9) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 83,069,682 shares issued and 83,042,905 shares outstanding as of June 30, 2018; 90,404,022 shares issued and 90,377,245 shares outstanding as of December 30, 2017 | 83 | 90 |
Additional paid-in capital | 511,379 | 724,114 |
Treasury stock, at cost; 26,777 shares as of June 30, 2018 and December 30, 2017 | (1,060) | (1,060) |
Accumulated deficit | (1,313,498) | (968,148) |
Accumulated other comprehensive loss | (14,709) | (9,535) |
Total stockholders’ deficit | (817,805) | (254,539) |
Total liabilities and stockholders’ deficit | $ 3,298,728 | $ 3,937,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,855 | $ 4,390 |
Notes and other receivables, allowance for doubtful accounts | 1,043 | 600 |
Property and equipment, accumulated depreciation | 151,483 | 143,319 |
Other intangible assets, accumulated amortization | $ 257,930 | $ 250,142 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 83,069,682 | 90,404,022 |
Common stock, shares outstanding (in shares) | 83,042,905 | 90,377,245 |
Treasury Stock, Shares | 26,777 | 26,777 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Revenues: | ||||
Revenue | $ 350,640 | $ 334,176 | $ 651,982 | $ 630,534 |
Operating costs and expenses: | ||||
Advertising expenses | 132,579 | 123,676 | 244,551 | 234,748 |
General and administrative expenses, net | 59,301 | 61,074 | 119,125 | 121,443 |
Depreciation | 5,125 | 5,071 | 10,158 | 10,155 |
Amortization of other intangible assets | 5,307 | 5,333 | 10,682 | 10,660 |
Long-lived asset impairment charges | 653 | 60 | 1,154 | 107 |
Total operating costs and expenses | 240,060 | 231,700 | 453,609 | 444,659 |
Net income of equity method investments | 3,845 | 4,327 | 5,878 | 7,146 |
Other operating income (loss), net | (575) | 33 | (570) | 588 |
Operating income | 113,850 | 106,836 | 203,681 | 193,609 |
Other income (expense), net: | ||||
Interest income | 1,516 | 425 | 3,158 | 746 |
Interest expense | (32,538) | (24,885) | (65,015) | (49,756) |
Other income (losses), net | (272) | 28 | (599) | 215 |
Total other expense, net | (31,294) | (24,432) | (62,456) | (48,795) |
Income before income taxes | 82,556 | 82,404 | 141,225 | 144,814 |
Provision for income taxes | 22,058 | 31,312 | 30,575 | 49,429 |
Net income | $ 60,498 | $ 51,092 | $ 110,650 | $ 95,385 |
Earnings per share: | ||||
Common-basic (in dollars per share) | $ 0.73 | $ 0.56 | $ 1.31 | $ 1.04 |
Common-diluted (in dollars per share) | 0.72 | 0.55 | 1.29 | 1.03 |
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | $ 0.3225 | $ 0.7 | $ 0.65 |
Franchise fees and royalty income | ||||
Revenues: | ||||
Revenue | $ 151,242 | $ 143,894 | $ 283,749 | $ 271,609 |
Advertising fees and related income | ||||
Revenues: | ||||
Revenue | 131,539 | 122,361 | 242,546 | 232,564 |
Rental income | ||||
Revenues: | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Ice cream and other products | ||||
Revenues: | ||||
Revenue | 28,140 | 28,679 | 49,917 | 51,185 |
Operating costs and expenses: | ||||
Cost of goods sold | 22,781 | 22,199 | 39,645 | 39,121 |
Other revenues | ||||
Revenues: | ||||
Revenue | 12,319 | 11,834 | 23,892 | 23,346 |
Occupancy expenses—franchised restaurants | ||||
Operating costs and expenses: | ||||
Cost of goods sold | $ 14,314 | $ 14,287 | $ 28,294 | $ 28,425 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Other comprehensive income (loss), net: | ||||
Net income | $ 60,498 | $ 51,092 | $ 110,650 | $ 95,385 |
Effect of foreign currency translation, net of deferred tax expense (benefit) of $(66) and $36 for the three months ended June 30, 2018 and July 1, 2017, respectively, and $(46) and $573 for the six months ended June 30, 2018 and July 1, 2017, respectively | (7,291) | (2,749) | (5,744) | 5,991 |
Effect of interest rate swaps, net of deferred tax benefit of $217 for the three months ended July 1, 2017 and $434 for the six months ended July 1, 2017 | 0 | (318) | 0 | (636) |
Other, net | (58) | (1) | 570 | 653 |
Total other comprehensive income (loss), net | (7,349) | (3,068) | (5,174) | 6,008 |
Comprehensive income | $ 53,149 | $ 48,024 | $ 105,476 | $ 101,393 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred tax effect, foreign currency translation | $ (66) | $ 36 | $ (46) | $ 573 |
Income tax effect, Amount of net gain (loss) reclassified into earnings | $ 0 | $ (217) | $ 0 | $ (434) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 110,650 | $ 95,385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,840 | 20,815 |
Amortization of debt issuance costs | 2,511 | 3,234 |
Deferred income taxes | (8,425) | (11,781) |
Provision for bad debt | 333 | 100 |
Share-based compensation expense | 6,949 | 7,247 |
Net income of equity method investments | (5,878) | (7,146) |
Dividends received from equity method investments | 3,947 | 3,950 |
Other, net | 3,150 | (55) |
Change in operating assets and liabilities: | ||
Accounts, notes, and other receivables, net | (7,459) | (6,592) |
Prepaid income taxes, net | 4,208 | 7,621 |
Prepaid expenses and other current assets | (8,866) | (18,305) |
Accounts payable | 15,940 | 24,660 |
Other current liabilities | (71,323) | (65,832) |
Deferred revenue | 3,902 | 13,531 |
Other, net | (2,740) | 228 |
Net cash provided by operating activities | 67,739 | 67,060 |
Cash flows from investing activities: | ||
Additions to property, equipment, and software | (32,902) | (6,730) |
Other, net | 0 | (99) |
Net cash used in investing activities | (32,902) | (6,829) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (15,750) | (12,500) |
Dividends paid on common stock | (57,439) | (58,847) |
Accelerated share repurchases of common stock | (650,368) | (100,000) |
Exercise of stock options | 30,433 | 19,928 |
Other, net | (901) | (799) |
Net cash used in financing activities | (694,025) | (152,218) |
Effect of exchange rates on cash, cash equivalents, and restricted cash | (228) | 398 |
Decrease in cash, cash equivalents, and restricted cash | (659,416) | (91,589) |
Cash, cash equivalents, and restricted cash, beginning of period | 1,114,099 | 431,832 |
Cash, cash equivalents, and restricted cash, end of period | 454,683 | 340,243 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 35,044 | 53,736 |
Cash paid for interest | 65,633 | 46,751 |
Noncash investing activities: | ||
Property, equipment, and software included in accounts payable and other current liabilities | 3,219 | 1,942 |
Purchase of property, equipment, and software in exchange for note payable | $ 1,486 | $ 0 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2018 | |
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 franchise and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, have owned and operated locations. Through our Dunkin’ Donuts brand, we franchise restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. Additionally, we license Dunkin’ Donuts brand products sold in certain retail outlets such as retail packaged coffee, Dunkin’ K-Cup® pods, and ready-to-drink bottled iced coffee. Through our Baskin-Robbins brand, we 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | (a) Updated revenue recognition policies Franchise fees and royalty income Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. The franchise agreements and SDAs typically require the franchisee to pay initial nonrefundable franchise fees prior to opening the respective restaurants and continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales. The initial term of domestic franchise agreements is typically 20 years. Prior to the end of the franchise term or as otherwise provided by the Company, a franchisee may elect to renew the term of a franchise agreement, and, if approved, will typically pay a renewal fee upon execution of the renewal term. If approved, a franchisee may transfer a franchise agreement or SDA to a new or existing franchisee, at which point a transfer fee is paid. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances sub-franchise, a certain number of restaurants within a particular geographic area. The master franchisee is typically required to pay an upfront market entry fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed restaurant prior to each respective opening. For the Dunkin’ Donuts brand and in certain Baskin-Robbins international markets, the master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants, and the initial franchise term provided for each restaurant typically ranges between 10 and 20 years. Generally, the franchise license granted for each individual restaurant within an arrangement represents a single performance obligation. Therefore, initial franchise fees and market entry fees for each arrangement are allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening. Royalty income is also recognized over the term of the respective franchise agreement based on the royalties earned each period as the underlying sales occur. Renewal fees are generally recognized over the renewal term for the respective restaurant from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Additionally, for Baskin-Robbins international markets that do not pay a royalty, a portion of the consideration from sales of ice cream and other products is allocated to royalty income as consideration for the use of the franchise license, which is recognized when the related sales occur and is estimated based on royalty rates in effect for markets where the franchise license is sold on a standalone basis. Fees received or receivable that are expected to be recognized as revenue within one year are classified as current deferred revenue in the consolidated balance sheets. Advertising fees and related income Domestically and in limited international markets, franchise agreements typically require the franchisee to pay continuing advertising fees on a weekly basis based on a percentage of franchisee gross sales, which are recognized over the term of the respective franchise agreement based on the fees earned each period as the underlying sales occur. The Company and its franchisees sell gift cards that are redeemable for products in our Dunkin’ Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. There are no expiration dates or service fees charged on the gift cards. While the franchisees continue to honor all gift cards presented for payment, the likelihood of redemption may be determined to be remote for certain cards due to long periods of inactivity. In these circumstances, the Company may recognize revenue from unredeemed gift cards (“breakage revenue”) if they are not subject to unclaimed property laws. For Dunkin’ Donuts gift cards enrolled in the DD Perks® Rewards loyalty program and other cards with expected similar redemption behavior, breakage is estimated and recognized at the point in time when the likelihood of redemption of any remaining card balance becomes remote, generally after a period of sufficient inactivity. Breakage on all other Dunkin’ Donuts gift cards and all Baskin-Robbins gift cards is estimated and recognized over time in proportion to actual gift card redemptions, based on historical redemption rates. The Company also collects gift card program service fees from franchisees to offset the costs to administer the gift card program. The gift card program service fees are based on the volume of gift card transactions processed and are recognized as the underlying transactions occur. Rental income Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid. The differences between the straight-line rent amounts and amounts receivable under the leases are recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such thresholds are actually achieved. Deferred contingent rentals are recorded as deferred revenue in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin’ Donuts products to franchisees in certain international locations. Revenue from the sale of ice cream and other products is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Payment for ice cream and other products is generally due within a relatively short period of time subsequent to delivery. Other revenues Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of restaurants that were not company-operated to new or existing franchisees. Licensing fees are recognized over the term of the expected license agreement, with sales-based license fees being recognized based on the amount earned each period as the underlying sales occur. Gains on the refranchise or sale of a restaurant are recognized over the term of the related agreement. (b) Disaggregation of revenue Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Three months ended June 30, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 125,221 9,005 4,732 2,154 — 141,112 4,276 145,388 Franchise fees 4,765 303 535 251 — 5,854 — 5,854 Advertising fees and related income — — — — 119,174 119,174 8,491 127,665 Other revenues 588 3,129 — 1 — 3,718 7,969 11,687 Total revenues recognized over time 130,574 12,437 5,267 2,406 119,174 269,858 20,736 290,594 Revenues recognized at a point in time: Sales of ice cream and other products — 842 — 31,409 — 32,251 (4,111 ) 28,140 Other revenues 310 57 (9 ) 72 — 430 202 632 Total revenues recognized at a point in time 310 899 (9 ) 31,481 — 32,681 (3,909 ) 28,772 Total revenues recognized under ASC 606 130,884 13,336 5,258 33,887 119,174 302,539 16,827 319,366 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 3,874 3,874 Rental income 26,506 763 — 131 — 27,400 — 27,400 Total revenues not subject to ASC 606 26,506 763 — 131 — 27,400 3,874 31,274 Total revenues $ 157,390 14,099 5,258 34,018 119,174 329,939 20,701 350,640 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Three months ended July 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 119,096 9,080 4,157 1,858 — 134,191 4,183 138,374 Franchise fees 4,564 193 475 288 — 5,520 — 5,520 Advertising fees and related income — — — — 113,824 113,824 668 114,492 Other revenues 577 3,187 — 1 — 3,765 7,506 11,271 Total revenues recognized over time 124,237 12,460 4,632 2,147 113,824 257,300 12,357 269,657 Revenues recognized at a point in time: Sales of ice cream and other products — 883 — 31,685 — 32,568 (3,889 ) 28,679 Other revenues 221 150 (20 ) 63 — 414 149 563 Total revenues recognized at a point in time 221 1,033 (20 ) 31,748 — 32,982 (3,740 ) 29,242 Total revenues recognized under ASC 606 124,458 13,493 4,612 33,895 113,824 290,282 8,617 298,899 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 7,869 7,869 Rental income 26,533 763 — 112 — 27,408 — 27,408 Total revenues not subject to ASC 606 26,533 763 — 112 — 27,408 7,869 35,277 Total revenues $ 150,991 14,256 4,612 34,007 113,824 317,690 16,486 334,176 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Six months ended June 30, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 236,054 15,414 9,670 3,697 — 264,835 7,410 272,245 Franchise fees 9,472 592 983 457 — 11,504 — 11,504 Advertising fees and related income — — — — 223,341 223,341 8,750 232,091 Other revenues 1,123 5,406 2 1 — 6,532 16,123 22,655 Total revenues recognized over time 246,649 21,412 10,655 4,155 223,341 506,212 32,283 538,495 Revenues recognized at a point in time: Sales of ice cream and other products — 1,520 — 55,381 — 56,901 (6,984 ) 49,917 Other revenues 555 150 (32 ) 119 — 792 445 1,237 Total revenues recognized at a point in time 555 1,670 (32 ) 55,500 — 57,693 (6,539 ) 51,154 Total revenues recognized under ASC 606 247,204 23,082 10,623 59,655 223,341 563,905 25,744 589,649 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 10,455 10,455 Rental income 50,097 1,530 — 251 — 51,878 — 51,878 Total revenues not subject to ASC 606 50,097 1,530 — 251 — 51,878 10,455 62,333 Total revenues $ 297,301 24,612 10,623 59,906 223,341 615,783 36,199 651,982 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Six months ended July 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 226,271 15,764 8,569 3,289 — 253,893 6,974 260,867 Franchise fees 8,862 399 908 573 — 10,742 — 10,742 Advertising fees and related income — — — — 216,145 216,145 723 216,868 Other revenues 1,117 5,500 4 1 — 6,622 15,415 22,037 Total revenues recognized over time 236,250 21,663 9,481 3,863 216,145 487,402 23,112 510,514 Revenues recognized at a point in time: Sales of ice cream and other products — 1,409 — 56,089 — 57,498 (6,313 ) 51,185 Other revenues 724 214 (36 ) 109 — 1,011 298 1,309 Total revenues recognized at a point in time 724 1,623 (36 ) 56,198 — 58,509 (6,015 ) 52,494 Total revenues recognized under ASC 606 236,974 23,286 9,445 60,061 216,145 545,911 17,097 563,008 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 15,696 15,696 Rental income 50,057 1,547 — 226 — 51,830 — 51,830 Total revenues not subject to ASC 606 50,057 1,547 — 226 — 51,830 15,696 67,526 Total revenues $ 287,031 24,833 9,445 60,287 216,145 597,741 32,793 630,534 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." (c) Contract balances Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): June 30, December 30, Balance Sheet Classification Receivables $ 99,950 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 30,550 27,724 Deferred revenue—current Long-term 366,246 361,458 Deferred revenue—long term Total $ 396,796 389,182 Receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sales of ice cream and other products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under its franchise and license agreements for which consideration has been received or is receivable, and is generally recognized on a straight-line basis over the remaining term of the related agreement. The increase in the deferred revenue balance for the six months ended June 30, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $16.7 million of revenues recognized that were included in the deferred revenue balance as of December 30, 2017. As of June 30, 2018 and December 30, 2017 , there were no contract assets from contracts with customers. (d) Transaction price allocated to remaining performance obligations Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at June 30, 2018 is as follows (in thousands): Fiscal year: 2018 (a) $ 16,541 2019 25,091 2020 23,851 2021 23,614 2022 23,341 Thereafter 247,568 Total $ 360,006 (a) Represents the estimate for remainder of fiscal year 2018 which excludes the six months ended June 30, 2018. The estimated revenue in the table above does not contemplate future franchise renewals or new franchise agreements for restaurants for which a franchise agreement or SDA does not exist at June 30, 2018 . Additionally, the table above excludes $61.9 million of consideration allocated to restaurants that are not yet open as of June 30, 2018 . The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations in the table above. Additionally, the Company has applied the transition practical expedient that allows the Company to omit the above disclosures for the fiscal year ended December 30, 2017 . (e) Change in accounting principle In fiscal year 2018, the Company adopted new revenue recognition guidance which 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. The Company adopted the guidance using the full retrospective transition method which results in restating each prior reporting period presented. The restated amounts include the application of a practical expedient that permitted the Company to reflect the aggregate effect of all modifications that occurred prior to fiscal year 2016 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The Company implemented new business processes, internal controls, and modified information technology systems to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance changed the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal and transfer fees. Previously, these fees were generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement became effective, or upon transfer of a franchise agreement. The new guidance generally requires these fees to be recognized over the term of the related franchise license for the respective restaurant. Additionally, transfer fees were previously included within other revenues, but are now included within franchise fees and royalty income in the consolidated statements of operations. The new guidance did not materially impact the recognition of royalty income. Advertising The adoption of the new guidance changed the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which were not previously included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. The assets and liabilities held by the advertising funds, which were previously reported as restricted assets and liabilities of advertising funds, respectively, are now included within the respective balance sheet caption to which the assets and liabilities relate. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds were previously included within general and administrative expenses, net, but are now included within advertising expenses in the consolidated statements of operations. Previously, breakage from Dunkin’ Donuts and Baskin-Robbins gift cards was recorded as a reduction to general and administrative expenses, net, to offset the related gift card program costs. In accordance with the new guidance, breakage revenue is now reported on a gross basis in the consolidated statements of operations within advertising fees and related income, and the related gift card program costs are included in advertising expenses. Ice Cream Royalty Allocation The adoption of the new guidance requires a portion of sales of ice cream products to be allocated to royalty income as consideration for the use of the franchise license. As such, a portion of sales of ice cream and other products has been reclassified to franchise fees and royalty income in the consolidated statements of operations under the new guidance. This allocation has no impact on the timing of recognition of the related sales of ice cream products or royalty income. Other Revenue Transactions The adoption of the new guidance requires certain fees generated by licensing of our brand names and other intellectual property to be recognized over the term of the related agreement, including a one-time upfront license fee recognized in connection with the Dunkin’ K-Cup® pod licensing agreement in fiscal year 2015. Additionally, gains associated with the refranchise, sale, or transfer of restaurants that were not company-operated to new or existing franchisees are recognized over the term of the related agreement under the new guidance, instead of upon closing of the sale transaction or transfer. Impacts to Prior Period Information The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property and equipment, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Three months ended July 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 145,066 (5,355 ) — 4,183 — 143,894 Advertising fees and related income — — 122,361 — — 122,361 Rental income 27,408 — — — — 27,408 Sales of ice cream and other products 32,862 — — (4,183 ) — 28,679 Other revenues 13,186 (1,033 ) — — (319 ) 11,834 Total revenues 218,522 (6,388 ) 122,361 — (319 ) 334,176 Operating costs and expenses: Occupancy expenses—franchised restaurants 14,287 — — — — 14,287 Cost of ice cream and other products 22,199 — — — — 22,199 Advertising expenses — — 123,676 — — 123,676 General and administrative expenses, net 62,382 — (1,308 ) — — 61,074 Depreciation 5,071 — — — — 5,071 Amortization of other intangible assets 5,333 — — — — 5,333 Long-lived asset impairment charges 60 — — — — 60 Total operating costs and expenses 109,332 — 122,368 — — 231,700 Net income of equity method investments 4,327 — — — — 4,327 Other operating income, net 33 — — — — 33 Operating income 113,550 (6,388 ) (7 ) — (319 ) 106,836 Other income (expense), net: Interest income 425 — — — — 425 Interest expense (24,885 ) — — — — (24,885 ) Other gains, net 28 — — — — 28 Total other expense, net (24,432 ) — — — — (24,432 ) Income before income taxes 89,118 (6,388 ) (7 ) — (319 ) 82,404 Provision (benefit) for income taxes 33,414 (1,980 ) — — (122 ) 31,312 Net income $ 55,704 (4,408 ) (7 ) — (197 ) 51,092 Earnings per share—basic $ 0.61 0.56 Earnings per share—diluted 0.60 0.55 Consolidated Statements of Operations Six months ended July 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 275,135 (10,500 ) — 6,974 — 271,609 Advertising fees and related income — — 232,564 — — 232,564 Rental income 51,830 — — — — 51,830 Sales of ice cream and other products 58,159 — — (6,974 ) — 51,185 Other revenues 24,070 (2,155 ) — — 1,431 23,346 Total revenues 409,194 (12,655 ) 232,564 — 1,431 630,534 Operating costs and expenses: Occupancy expenses—franchised restaurants 28,425 — — — — 28,425 Cost of ice cream and other products 39,121 — — — — 39,121 Advertising expenses — — 234,748 — — 234,748 General and administrative expenses, net 123,617 — (2,174 ) — — 121,443 Depreciation 10,155 — — — — 10,155 Amortization of other intangible assets 10,660 — — — — 10,660 Long-lived asset impairment charges 107 — — — — 107 Total operating costs and expenses 212,085 — 232,574 — — 444,659 Net income of equity method investments 7,146 — — — — 7,146 Other operating income, net 588 — — — — 588 Operating income 204,843 (12,655 ) (10 ) — 1,431 193,609 Other income (expense), net: Interest income 746 — — — — 746 Interest expense (49,756 ) — — — — (49,756 ) Other gains, net 215 — — — — 215 Total other expense, net (48,795 ) — — — — (48,795 ) Income before income taxes 156,048 (12,655 ) (10 ) — 1,431 144,814 Provision (benefit) for income taxes 52,877 (3,834 ) — — 386 49,429 Net income $ 103,171 (8,821 ) (10 ) — 1,045 95,385 Earnings per share—basic $ 1.13 1.04 Earnings per share—diluted 1.11 1.03 The adoption of the new revenue recognition guidance had no impact on the Company’s total cash flows. Adjustments presented in the cash flow information below result from full consolidation of the advertising funds, and reflect the investing activities, consisting solely of additions to property, equipment, and software, of such funds. Select Cash Flow Information (In thousands) Six months ended July 1, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 63,954 3,106 67,060 Net cash used in investing activities (3,723 ) (3,106 ) (6,829 ) Net cash used in financing activities (152,218 ) — (152,218 ) Decrease in cash, cash equivalents, and restricted cash (91,589 ) — (91,589 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 , the consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2018 and July 1, 2017 , and the consolidated statements of cash flows for the six months ended June 30, 2018 and July 1, 2017 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 30, 2017 , 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 the three- and six-month periods ended June 30, 2018 and July 1, 2017 reflect the results of operations for the 13-week and 26-week periods ended on those dates, respectively. Operating results for the three- and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2018 . (c) Cash, cash equivalents, and 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 holds restricted cash which primarily represents (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. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, December 30, Cash and cash equivalents $ 367,940 1,018,317 Restricted cash 84,970 94,047 Restricted cash, included in Other assets 1,773 1,735 Total cash, cash equivalents, and restricted cash $ 454,683 1,114,099 (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 June 30, 2018 and December 30, 2017 are summarized as follows (in thousands): June 30, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 11,033 11,033 10,836 10,836 Total assets $ 11,033 11,033 10,836 10,836 Liabilities: Deferred compensation liabilities $ 11,448 11,448 13,543 13,543 Total liabilities $ 11,448 11,448 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow 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 company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,055,605 3,068,647 3,067,357 3,156,099 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, the fair value of 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, advertising fees, and sales of ice cream and other 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. As of June 30, 2018 and December 30, 2017 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 20% and 11% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for any of the three and six month periods ended June 30, 2018 and July 1, 2017 . (f) Advertising expenses Advertising expenses in the consolidated statements of operations includes advertising expenses incurred by the Company, including those expenses incurred by the advertising funds and for the administration of the gift card program. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Costs of print advertising and certain promotion-related items are deferred and expensed the first time the advertising is displayed. Prepaid expenses and other current assets in the consolidated balance sheets include $17.3 million and $15.5 million at June 30, 2018 and December 30, 2017 , respectively, that was related to advertising. Advertising expenses are allocated to interim periods in relation to the related revenues. When revenues of the advertising fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues. (g) Recent accounting pronouncements Recently adopted accounting pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued new guidance allowing companies the option to reclassify from accumulated other comprehensive loss to accumulated deficit the stranded income tax effects resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017. The Company early adopted this standard during the first quarter of fiscal year 2018 and has elected to present the change in the period of adoption. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers (“ASC 606”), except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. We adopted this new guidance in fiscal year 2018. See note 3 for further disclosure of the impact of the new guidance. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required with an option to not restate comparative periods in the period of adoption. The Company expects to adopt this new guidance in fiscal year 2019 without restating comparative periods, and expects that substantially all of its operating lease commitments will be subject to the new guidance and will be recognized as operating lease liabilities and right-of-use assets upon adoption, thereby having a material impact to its consolidated balance sheet. Though the majority of the assessment phase is complete, the Company continues to evaluate the impact the adoption of this new guidance will have on the Company's consolidated financial statements, as well as the impact on accounting policies and related disclosures. Additionally, the Company is in the process of implementing new accounting systems, business processes, and internal controls related to lease accounting to assist in the application of the new guidance. (h) Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at June 30, 2018 and December 30, 2017 consisted of the following (in thousands): June 30, December 30, 2015 Class A-2-II Notes $ 1,693,125 1,701,875 2017 Class A-2-I Notes 597,000 600,000 2017 Class A-2-II Notes 796,000 800,000 Other 1,486 — Debt issuance costs, net of amortization (32,006 ) (34,518 ) Total debt 3,055,605 3,067,357 Less current portion of long-term debt 31,650 31,500 Total long-term debt $ 3,023,955 3,035,857 The Company's outstanding debt consists of Series 2015-1 3.980% Fixed Rate Senior Secured Notes, Class A-2-II (the “2015 Class A-2-II Notes”), Series 2017-1 3.629% Fixed Rate Senior Secured Notes, Class A-2-I (the “2017 Class A-2-I Notes”), and Series 2017-1 4.030% Fixed Rate Senior Secured Notes, Class A-2-II (the “2017 Class A-2-II Notes” and, together with the 2017 Class A-2-I Notes, the “2017 Class A-2 Notes”) issued by DB Master Finance LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of DBGI. In addition, the Master Issuer issued Series 2017-1 Variable Funding Senior Secured Notes, Class A-1 (the “2017 Variable Funding Notes” and, together with the 2017 Class A-2 Notes, the “2017 Notes”), which allow for the issuance of up to $150.0 million of 2017 Variable Funding Notes and certain other credit instruments, including letters of credit. As of June 30, 2018 and December 30, 2017 , $32.4 million and $32.3 million , respectively, of letters of credit were outstanding against the 2017 Variable Funding Notes which relate primarily to interest reserves required under the base indenture and related supplemental indentures. There were no amounts drawn down on these letters of credit as of June 30, 2018 or December 30, 2017 . The 2015 Class A-2-II Notes and 2017 Notes were each 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 2015 Class A-2-II Notes and 2017 Notes and that have pledged substantially all of their assets to secure the 2015 Class A-2-II Notes and 2017 Notes. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities Other current liabilities consisted of the following (in thousands): June 30, December 30, Gift card/certificate liability $ 169,341 228,783 Accrued payroll and benefits 21,285 30,768 Accrued interest 14,003 17,902 Accrued professional costs 5,277 5,527 Accrued advertising expenses 31,943 35,210 Franchisee profit-sharing liability 11,179 13,243 Other 31,740 23,677 Total other current liabilities $ 284,768 355,110 The decrease in the gift card/certificate liability was driven by the seasonality of our gift card program. The decrease in accrued payroll and benefits was primarily due to incentive compensation payments made during the six months ended June 30, 2018 related to fiscal year 2017. The franchisee profit-sharing liability represents amounts owed to franchisees from the net profits primarily on the sale of Dunkin’ K-Cup® pods, retail packaged coffee, and ready-to-drink bottled iced coffee in certain retail outlets. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
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. Additionally, the Company administers and directs the development of all advertising and promotional programs in the U.S. advertising funds. As such, the Company has determined that it has five reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., Baskin-Robbins International, and U.S. Advertising Funds. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International primarily derive their revenues through royalty income and franchise fees. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement and rental income. Dunkin’ Donuts U.S. also derives revenue through rental income. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. U.S. Advertising Funds primarily derive revenues through continuing advertising fees from Dunkin’ Donuts and Baskin-Robbins franchisees. 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, impairment of our equity method investments, 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 generally 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 revenues earned through certain licensing arrangements with third parties in which our brand names are used, including the licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement and sales of Dunkin’ Donuts branded ready-to-drink bottled iced coffee and retail packaged coffee, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Revenues by segment were as follows (in thousands): Revenues Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts U.S. $ 157,390 150,991 297,301 287,031 Dunkin’ Donuts International 5,258 4,612 10,623 9,445 Baskin-Robbins U.S. 14,099 14,256 24,612 24,833 Baskin-Robbins International 34,018 34,007 59,906 60,287 U.S. Advertising Funds 119,174 113,824 223,341 216,145 Total reportable segment revenues 329,939 317,690 615,783 597,741 Other 20,701 16,486 36,199 32,793 Total revenues $ 350,640 334,176 651,982 630,534 Amounts 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, net of “Other” revenues reported above. Segment profit by segment was as follows (in thousands): Segment profit Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts U.S. $ 119,562 116,113 224,625 217,807 Dunkin’ Donuts International 3,503 1,571 6,709 2,998 Baskin-Robbins U.S. 10,622 10,865 17,857 18,248 Baskin-Robbins International 11,526 12,530 18,967 20,701 U.S. Advertising Funds — — — — Total reportable segments 145,213 141,079 268,158 259,754 Corporate and other (25,403 ) (28,850 ) (52,641 ) (55,378 ) Interest expense, net (31,022 ) (24,460 ) (61,857 ) (49,010 ) Amortization of other intangible assets (5,307 ) (5,333 ) (10,682 ) (10,660 ) Long-lived asset impairment charges (653 ) (60 ) (1,154 ) (107 ) Other income (losses), net (272 ) 28 (599 ) 215 Income before income taxes $ 82,556 82,404 141,225 144,814 Net income of equity method investments is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Amounts reported as “Other” in the segment profit table below include the reduction in depreciation and amortization, net of tax, reported by our equity method investees as a result of previously recorded impairment charges. Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts International $ 60 13 (384 ) (77 ) Baskin-Robbins International 2,926 2,950 4,653 4,976 Total reportable segments 2,986 2,963 4,269 4,899 Other 859 1,364 1,609 2,247 Total net income of equity method investments $ 3,845 4,327 5,878 7,146 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ deficit The changes in total stockholders’ deficit were as follows (in thousands): Total stockholders’ deficit Balance as of December 30, 2017 $ (254,539 ) Net income 110,650 Other comprehensive loss, net (5,174 ) Dividends paid on common stock (57,439 ) Exercise of stock options 30,433 Accelerated share repurchases of common stock (650,368 ) Share-based compensation expense 6,949 Other, net 1,683 Balance as of June 30, 2018 $ (817,805 ) (a) Treasury stock In February 2018, the Company entered into two accelerated share repurchase agreements (the “February 2018 ASR Agreements”) with two third-party financial institutions. Pursuant to the terms of the February 2018 ASR Agreements, the Company paid the financial institutions $650.0 million from cash on hand and received an initial delivery of 8,478,722 shares of the Company's common stock in February 2018, representing an estimate of 80% of the total shares expected to be delivered under the February 2018 ASR Agreements. At settlement, the financial institutions 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 cash payment to the financial institutions. Final settlement of each of the February 2018 ASR Agreements is expected to be completed in the third quarter of fiscal year 2018. The Company accounts for treasury stock under the cost method based on the cost of the shares on the dates of repurchase plus any direct costs incurred. During the six months ended June 30, 2018 , the Company retired 8,478,722 shares of treasury stock repurchased under the February 2018 ASR Agreements. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $65.2 million and an increase in accumulated deficit of $455.1 million . Additionally, the Company recorded a decrease in additional paid-in capital of $130.0 million related to the remaining cash paid under the February 2018 ASR Agreements since the final settlement was not completed as of June 30, 2018 . (b) Equity incentive plans During the six months ended June 30, 2018 , the Company granted stock options to purchase 909,027 shares of common stock and 64,566 restricted stock units (“RSUs”) to certain employees and members of our board of directors. 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 $59.60 per share and have a weighted average grant-date fair value of $10.44 per share. The RSUs granted to employees and members of our board of directors vest in equal annual amounts over a three -year period and a one -year period, respectively, subsequent to the grant date and have a weighted average grant-date fair value of $58.33 per share. In addition, the Company granted 67,993 performance stock units (“PSUs”) to certain employees during the six months ended June 30, 2018 . These PSUs are generally eligible to cliff-vest approximately three years from the grant date. Of the total PSUs granted, 30,974 PSUs are subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company’s shareholders during the performance period measured against the companies in the S&P 500 Composite Index (“TSR PSUs”). The remaining 37,019 PSUs granted are subject to a service condition and a performance vesting condition based on the level of adjusted operating income growth achieved over the performance period (“AOI PSUs”). The maximum vesting percentage that could be realized for each of the TSR PSUs and the AOI PSUs is 200% based on the level of performance achieved for the respective awards. All of the PSUs are also subject to a one -year post-vesting holding period. The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a grant-date fair value of $65.52 per share. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. The AOI PSUs have a grant-date fair value of $57.10 per share. Total compensation cost for the AOI PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest based on the outcome. Total compensation expense related to all share-based awards was $3.7 million and $3.8 million for the three months ended June 30, 2018 and July 1, 2017 , respectively, and $6.9 million and $7.2 million for the six months ended June 30, 2018 and July 1, 2017 , respectively, and is included in general and administrative expenses, net in the consolidated statements of operations. (c) Accumulated other comprehensive loss The changes in the components of accumulated other comprehensive loss were as follows (in thousands): Effect of foreign currency translation Other Accumulated other comprehensive loss Balance as of December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income (loss), net (5,744 ) 570 (5,174 ) Balance as of June 30, 2018 $ (13,828 ) (881 ) (14,709 ) (d) Dividends The Company paid a quarterly dividend of $0.3475 per share of common stock on March 21, 2018 and June 6, 2018 totaling approximately $28.6 million and $28.8 million , respectively. On July 26, 2018 , the Company announced that its board of directors approved the next quarterly dividend of $0.3475 per share of common stock payable September 5, 2018 to shareholders of record as of the close of business on August 27, 2018 . |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per share The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended Six months ended June 30, July 1, June 30, July 1, Net income—basic and diluted $ 60,498 51,092 110,650 95,385 Weighted average number of common shares: Common—basic 82,869,232 91,207,455 84,660,208 91,432,007 Common—diluted 84,113,681 92,606,525 85,995,475 92,863,378 Earnings per common share: Common—basic $ 0.73 0.56 1.31 1.04 Common—diluted 0.72 0.55 1.29 1.03 The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,244,449 and 1,399,070 equity awards for the three months ended June 30, 2018 and July 1, 2017 , respectively, and includes the dilutive effect of 1,335,267 and 1,431,371 equity awards for the six months ended June 30, 2018 and July 1, 2017 , 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 June 30, 2018 and July 1, 2017 , there were 256,350 and 150,000 shares, respectively, related to equity awards 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 982,054 and 1,123,482 equity awards for the three months ended June 30, 2018 and July 1, 2017 , respectively, and 1,432,676 and 1,629,480 equity awards for the six months ended June 30, 2018 and July 1, 2017 , respectively, as they would be antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies (a) S upply chain guarantees The Company has various supply chain agreements that provide for purchase commitments, the majority of which result in the Company being contingently liable upon early termination of the agreement. As of June 30, 2018 and December 30, 2017 , the Company was contingently liable under such supply chain agreements for approximately $119.9 million and $116.7 million , respectively. For certain supply chain commitments, as product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. 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 accrued an immaterial amount of reserves related to supply chain commitments as of June 30, 2018 and December 30, 2017 . (b) Letters of credit As of June 30, 2018 and December 30, 2017 , the Company had standby letters of credit outstanding for a total of $32.4 million and $32.3 million , respectively. There were no amounts drawn down on these letters of credit. (c) Legal matters 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. As of June 30, 2018 and December 30, 2017 , $1.7 million and $3.6 million , respectively, was included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the probable losses incurred in connection with all outstanding litigation. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-party transactions The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Three months ended Six months ended June 30, July 1, June 30, July 1, B-R 31 Ice Cream Company., Ltd. $ 626 587 971 876 BR-Korea Co., Ltd. 1,181 1,035 2,127 2,052 Palm Oasis Ventures Pty. Ltd. 768 958 1,473 1,967 $ 2,575 2,580 4,571 4,895 As of June 30, 2018 and December 30, 2017 , the Company had $4.4 million and $5.1 million , respectively, of receivables 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 $825 thousand and $742 thousand during the three months ended June 30, 2018 and July 1, 2017 , respectively, and $1.9 million and $1.8 million during the six months ended June 30, 2018 and July 1, 2017 , respectively, primarily for the purchase of ice cream products. |
Advertising Funds
Advertising Funds | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Advertising funds | Advertising funds Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): June 30, December 30, Accounts receivable, net $ 21,359 18,075 Notes and other receivables, net 4,853 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 17,270 15,498 Total current assets 43,544 34,871 Property, equipment, and software, net 14,460 12,537 Other assets 1,466 14 Total assets $ 59,470 47,422 Accounts payable $ 50,005 37,110 Deferred revenue—current (a) (743 ) (550 ) Other current liabilities 24,574 29,032 Total current liabilities 73,836 65,592 Deferred revenue—long-term (a) (7,155 ) (7,518 ) Other long-term liabilities 23 30 Total liabilities $ 66,704 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes On December 22, 2017, the U.S. federal government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly changes U.S. tax law by, among other things, reducing the corporate income tax rate from 35% to 21% effective January 1, 2018, establishing a territorial-style system for taxing foreign-source income of domestic multinational corporations, and imposing a one-time mandatory transition tax on deemed repatriated earnings of certain foreign joint ventures and subsidiaries. As a result of the Tax Act, the Company recorded a provisional net tax benefit of $143.4 million during fiscal year 2017. The provisional amount included a $145.1 million tax benefit for the remeasurement of certain U.S. deferred tax assets and liabilities. In addition, the provisional amount included a $1.7 million tax expense for the income tax on the deemed repatriation of unremitted foreign earnings, net of estimated foreign tax credits. The provisional net tax benefit was computed based on information available to the Company at the time. There have been no material changes to these provisional amounts during the six months ended June 30, 2018 , and there is still uncertainty as to the application of the Tax Act, including as it relates to state income taxes, because regulations and interpretations have not been released. In addition, certain estimates were used in computing the provisional amount, which will be finalized upon the filing of the Company’s 2017 U.S. federal tax return. As we complete our analysis of U.S. tax reform in fiscal year 2018, we may make adjustments to the provisional amounts, which may impact our provision for income taxes in the period in which the adjustments are made. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Unaudited Financial Statements | Unaudited consolidated financial statements The consolidated balance sheet as of June 30, 2018 , the consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2018 and July 1, 2017 , and the consolidated statements of cash flows for the six months ended June 30, 2018 and July 1, 2017 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 30, 2017 , 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 the three- and six-month periods ended June 30, 2018 and July 1, 2017 reflect the results of operations for the 13-week and 26-week periods ended on those dates, respectively. Operating results for the three- and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2018 . |
Restricted Cash | Cash, cash equivalents, and 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 holds restricted cash which primarily represents (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. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, December 30, Cash and cash equivalents $ 367,940 1,018,317 Restricted cash 84,970 94,047 Restricted cash, included in Other assets 1,773 1,735 Total cash, cash equivalents, and restricted cash $ 454,683 1,114,099 |
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 June 30, 2018 and December 30, 2017 are summarized as follows (in thousands): June 30, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 11,033 11,033 10,836 10,836 Total assets $ 11,033 11,033 10,836 10,836 Liabilities: Deferred compensation liabilities $ 11,448 11,448 13,543 13,543 Total liabilities $ 11,448 11,448 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow 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 company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,055,605 3,068,647 3,067,357 3,156,099 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, the fair value of 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, advertising fees, and sales of ice cream and other 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. As of June 30, 2018 and December 30, 2017 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 20% and 11% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for any of the three and six month periods ended June 30, 2018 and July 1, 2017 . |
Advertising Expenses | Advertising expenses Advertising expenses in the consolidated statements of operations includes advertising expenses incurred by the Company, including those expenses incurred by the advertising funds and for the administration of the gift card program. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Costs of print advertising and certain promotion-related items are deferred and expensed the first time the advertising is displayed. Prepaid expenses and other current assets in the consolidated balance sheets include $17.3 million and $15.5 million at June 30, 2018 and December 30, 2017 , respectively, that was related to advertising. Advertising expenses are allocated to interim periods in relation to the related revenues. When revenues of the advertising fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues. |
Recent Accounting Pronouncements | Recent accounting pronouncements Recently adopted accounting pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued new guidance allowing companies the option to reclassify from accumulated other comprehensive loss to accumulated deficit the stranded income tax effects resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017. The Company early adopted this standard during the first quarter of fiscal year 2018 and has elected to present the change in the period of adoption. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers (“ASC 606”), except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. We adopted this new guidance in fiscal year 2018. See note 3 for further disclosure of the impact of the new guidance. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required with an option to not restate comparative periods in the period of adoption. The Company expects to adopt this new guidance in fiscal year 2019 without restating comparative periods, and expects that substantially all of its operating lease commitments will be subject to the new guidance and will be recognized as operating lease liabilities and right-of-use assets upon adoption, thereby having a material impact to its consolidated balance sheet. Though the majority of the assessment phase is complete, the Company continues to evaluate the impact the adoption of this new guidance will have on the Company's consolidated financial statements, as well as the impact on accounting policies and related disclosures. Additionally, the Company is in the process of implementing new accounting systems, business processes, and internal controls related to lease accounting to assist in the application of the new guidance. |
Subsequent Events | Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Three months ended June 30, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 125,221 9,005 4,732 2,154 — 141,112 4,276 145,388 Franchise fees 4,765 303 535 251 — 5,854 — 5,854 Advertising fees and related income — — — — 119,174 119,174 8,491 127,665 Other revenues 588 3,129 — 1 — 3,718 7,969 11,687 Total revenues recognized over time 130,574 12,437 5,267 2,406 119,174 269,858 20,736 290,594 Revenues recognized at a point in time: Sales of ice cream and other products — 842 — 31,409 — 32,251 (4,111 ) 28,140 Other revenues 310 57 (9 ) 72 — 430 202 632 Total revenues recognized at a point in time 310 899 (9 ) 31,481 — 32,681 (3,909 ) 28,772 Total revenues recognized under ASC 606 130,884 13,336 5,258 33,887 119,174 302,539 16,827 319,366 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 3,874 3,874 Rental income 26,506 763 — 131 — 27,400 — 27,400 Total revenues not subject to ASC 606 26,506 763 — 131 — 27,400 3,874 31,274 Total revenues $ 157,390 14,099 5,258 34,018 119,174 329,939 20,701 350,640 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Three months ended July 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 119,096 9,080 4,157 1,858 — 134,191 4,183 138,374 Franchise fees 4,564 193 475 288 — 5,520 — 5,520 Advertising fees and related income — — — — 113,824 113,824 668 114,492 Other revenues 577 3,187 — 1 — 3,765 7,506 11,271 Total revenues recognized over time 124,237 12,460 4,632 2,147 113,824 257,300 12,357 269,657 Revenues recognized at a point in time: Sales of ice cream and other products — 883 — 31,685 — 32,568 (3,889 ) 28,679 Other revenues 221 150 (20 ) 63 — 414 149 563 Total revenues recognized at a point in time 221 1,033 (20 ) 31,748 — 32,982 (3,740 ) 29,242 Total revenues recognized under ASC 606 124,458 13,493 4,612 33,895 113,824 290,282 8,617 298,899 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 7,869 7,869 Rental income 26,533 763 — 112 — 27,408 — 27,408 Total revenues not subject to ASC 606 26,533 763 — 112 — 27,408 7,869 35,277 Total revenues $ 150,991 14,256 4,612 34,007 113,824 317,690 16,486 334,176 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Six months ended June 30, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 236,054 15,414 9,670 3,697 — 264,835 7,410 272,245 Franchise fees 9,472 592 983 457 — 11,504 — 11,504 Advertising fees and related income — — — — 223,341 223,341 8,750 232,091 Other revenues 1,123 5,406 2 1 — 6,532 16,123 22,655 Total revenues recognized over time 246,649 21,412 10,655 4,155 223,341 506,212 32,283 538,495 Revenues recognized at a point in time: Sales of ice cream and other products — 1,520 — 55,381 — 56,901 (6,984 ) 49,917 Other revenues 555 150 (32 ) 119 — 792 445 1,237 Total revenues recognized at a point in time 555 1,670 (32 ) 55,500 — 57,693 (6,539 ) 51,154 Total revenues recognized under ASC 606 247,204 23,082 10,623 59,655 223,341 563,905 25,744 589,649 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 10,455 10,455 Rental income 50,097 1,530 — 251 — 51,878 — 51,878 Total revenues not subject to ASC 606 50,097 1,530 — 251 — 51,878 10,455 62,333 Total revenues $ 297,301 24,612 10,623 59,906 223,341 615,783 36,199 651,982 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Six months ended July 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 226,271 15,764 8,569 3,289 — 253,893 6,974 260,867 Franchise fees 8,862 399 908 573 — 10,742 — 10,742 Advertising fees and related income — — — — 216,145 216,145 723 216,868 Other revenues 1,117 5,500 4 1 — 6,622 15,415 22,037 Total revenues recognized over time 236,250 21,663 9,481 3,863 216,145 487,402 23,112 510,514 Revenues recognized at a point in time: Sales of ice cream and other products — 1,409 — 56,089 — 57,498 (6,313 ) 51,185 Other revenues 724 214 (36 ) 109 — 1,011 298 1,309 Total revenues recognized at a point in time 724 1,623 (36 ) 56,198 — 58,509 (6,015 ) 52,494 Total revenues recognized under ASC 606 236,974 23,286 9,445 60,061 216,145 545,911 17,097 563,008 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 15,696 15,696 Rental income 50,057 1,547 — 226 — 51,830 — 51,830 Total revenues not subject to ASC 606 50,057 1,547 — 226 — 51,830 15,696 67,526 Total revenues $ 287,031 24,833 9,445 60,287 216,145 597,741 32,793 630,534 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." |
Contract balances | Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): June 30, December 30, Balance Sheet Classification Receivables $ 99,950 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 30,550 27,724 Deferred revenue—current Long-term 366,246 361,458 Deferred revenue—long term Total $ 396,796 389,182 |
Estimated revenue expected to be recognized in the future related to performance obligations | Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at June 30, 2018 is as follows (in thousands): Fiscal year: 2018 (a) $ 16,541 2019 25,091 2020 23,851 2021 23,614 2022 23,341 Thereafter 247,568 Total $ 360,006 (a) Represents the estimate for remainder of fiscal year 2018 which excludes the six months ended June 30, 2018. |
Impacts to prior period information, revenue recognition | The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property and equipment, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Three months ended July 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 145,066 (5,355 ) — 4,183 — 143,894 Advertising fees and related income — — 122,361 — — 122,361 Rental income 27,408 — — — — 27,408 Sales of ice cream and other products 32,862 — — (4,183 ) — 28,679 Other revenues 13,186 (1,033 ) — — (319 ) 11,834 Total revenues 218,522 (6,388 ) 122,361 — (319 ) 334,176 Operating costs and expenses: Occupancy expenses—franchised restaurants 14,287 — — — — 14,287 Cost of ice cream and other products 22,199 — — — — 22,199 Advertising expenses — — 123,676 — — 123,676 General and administrative expenses, net 62,382 — (1,308 ) — — 61,074 Depreciation 5,071 — — — — 5,071 Amortization of other intangible assets 5,333 — — — — 5,333 Long-lived asset impairment charges 60 — — — — 60 Total operating costs and expenses 109,332 — 122,368 — — 231,700 Net income of equity method investments 4,327 — — — — 4,327 Other operating income, net 33 — — — — 33 Operating income 113,550 (6,388 ) (7 ) — (319 ) 106,836 Other income (expense), net: Interest income 425 — — — — 425 Interest expense (24,885 ) — — — — (24,885 ) Other gains, net 28 — — — — 28 Total other expense, net (24,432 ) — — — — (24,432 ) Income before income taxes 89,118 (6,388 ) (7 ) — (319 ) 82,404 Provision (benefit) for income taxes 33,414 (1,980 ) — — (122 ) 31,312 Net income $ 55,704 (4,408 ) (7 ) — (197 ) 51,092 Earnings per share—basic $ 0.61 0.56 Earnings per share—diluted 0.60 0.55 Consolidated Statements of Operations Six months ended July 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 275,135 (10,500 ) — 6,974 — 271,609 Advertising fees and related income — — 232,564 — — 232,564 Rental income 51,830 — — — — 51,830 Sales of ice cream and other products 58,159 — — (6,974 ) — 51,185 Other revenues 24,070 (2,155 ) — — 1,431 23,346 Total revenues 409,194 (12,655 ) 232,564 — 1,431 630,534 Operating costs and expenses: Occupancy expenses—franchised restaurants 28,425 — — — — 28,425 Cost of ice cream and other products 39,121 — — — — 39,121 Advertising expenses — — 234,748 — — 234,748 General and administrative expenses, net 123,617 — (2,174 ) — — 121,443 Depreciation 10,155 — — — — 10,155 Amortization of other intangible assets 10,660 — — — — 10,660 Long-lived asset impairment charges 107 — — — — 107 Total operating costs and expenses 212,085 — 232,574 — — 444,659 Net income of equity method investments 7,146 — — — — 7,146 Other operating income, net 588 — — — — 588 Operating income 204,843 (12,655 ) (10 ) — 1,431 193,609 Other income (expense), net: Interest income 746 — — — — 746 Interest expense (49,756 ) — — — — (49,756 ) Other gains, net 215 — — — — 215 Total other expense, net (48,795 ) — — — — (48,795 ) Income before income taxes 156,048 (12,655 ) (10 ) — 1,431 144,814 Provision (benefit) for income taxes 52,877 (3,834 ) — — 386 49,429 Net income $ 103,171 (8,821 ) (10 ) — 1,045 95,385 Earnings per share—basic $ 1.13 1.04 Earnings per share—diluted 1.11 1.03 The adoption of the new revenue recognition guidance had no impact on the Company’s total cash flows. Adjustments presented in the cash flow information below result from full consolidation of the advertising funds, and reflect the investing activities, consisting solely of additions to property, equipment, and software, of such funds. Select Cash Flow Information (In thousands) Six months ended July 1, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 63,954 3,106 67,060 Net cash used in investing activities (3,723 ) (3,106 ) (6,829 ) Net cash used in financing activities (152,218 ) — (152,218 ) Decrease in cash, cash equivalents, and restricted cash (91,589 ) — (91,589 ) |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, December 30, Cash and cash equivalents $ 367,940 1,018,317 Restricted cash 84,970 94,047 Restricted cash, included in Other assets 1,773 1,735 Total cash, cash equivalents, and restricted cash $ 454,683 1,114,099 |
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 June 30, 2018 and December 30, 2017 are summarized as follows (in thousands): June 30, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 11,033 11,033 10,836 10,836 Total assets $ 11,033 11,033 10,836 10,836 Liabilities: Deferred compensation liabilities $ 11,448 11,448 13,543 13,543 Total liabilities $ 11,448 11,448 13,543 13,543 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value and estimated fair value of long-term debt as of June 30, 2018 and December 30, 2017 were as follows (in thousands): June 30, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,055,605 3,068,647 3,067,357 3,156,099 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): June 30, December 30, Gift card/certificate liability $ 169,341 228,783 Accrued payroll and benefits 21,285 30,768 Accrued interest 14,003 17,902 Accrued professional costs 5,277 5,527 Accrued advertising expenses 31,943 35,210 Franchisee profit-sharing liability 11,179 13,243 Other 31,740 23,677 Total other current liabilities $ 284,768 355,110 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Revenues by segment were as follows (in thousands): Revenues Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts U.S. $ 157,390 150,991 297,301 287,031 Dunkin’ Donuts International 5,258 4,612 10,623 9,445 Baskin-Robbins U.S. 14,099 14,256 24,612 24,833 Baskin-Robbins International 34,018 34,007 59,906 60,287 U.S. Advertising Funds 119,174 113,824 223,341 216,145 Total reportable segment revenues 329,939 317,690 615,783 597,741 Other 20,701 16,486 36,199 32,793 Total revenues $ 350,640 334,176 651,982 630,534 |
Segment Profit by Segment | Segment profit by segment was as follows (in thousands): Segment profit Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts U.S. $ 119,562 116,113 224,625 217,807 Dunkin’ Donuts International 3,503 1,571 6,709 2,998 Baskin-Robbins U.S. 10,622 10,865 17,857 18,248 Baskin-Robbins International 11,526 12,530 18,967 20,701 U.S. Advertising Funds — — — — Total reportable segments 145,213 141,079 268,158 259,754 Corporate and other (25,403 ) (28,850 ) (52,641 ) (55,378 ) Interest expense, net (31,022 ) (24,460 ) (61,857 ) (49,010 ) Amortization of other intangible assets (5,307 ) (5,333 ) (10,682 ) (10,660 ) Long-lived asset impairment charges (653 ) (60 ) (1,154 ) (107 ) Other income (losses), net (272 ) 28 (599 ) 215 Income before income taxes $ 82,556 82,404 141,225 144,814 |
Equity in Net Income of Joint Ventures Reportable Segment | Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts International $ 60 13 (384 ) (77 ) Baskin-Robbins International 2,926 2,950 4,653 4,976 Total reportable segments 2,986 2,963 4,269 4,899 Other 859 1,364 1,609 2,247 Total net income of equity method investments $ 3,845 4,327 5,878 7,146 Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): June 30, December 30, Accounts receivable, net $ 21,359 18,075 Notes and other receivables, net 4,853 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 17,270 15,498 Total current assets 43,544 34,871 Property, equipment, and software, net 14,460 12,537 Other assets 1,466 14 Total assets $ 59,470 47,422 Accounts payable $ 50,005 37,110 Deferred revenue—current (a) (743 ) (550 ) Other current liabilities 24,574 29,032 Total current liabilities 73,836 65,592 Deferred revenue—long-term (a) (7,155 ) (7,518 ) Other long-term liabilities 23 30 Total liabilities $ 66,704 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Stockholders_ Equity (Deficit25
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders' Equity | The changes in total stockholders’ deficit were as follows (in thousands): Total stockholders’ deficit Balance as of December 30, 2017 $ (254,539 ) Net income 110,650 Other comprehensive loss, net (5,174 ) Dividends paid on common stock (57,439 ) Exercise of stock options 30,433 Accelerated share repurchases of common stock (650,368 ) Share-based compensation expense 6,949 Other, net 1,683 Balance as of June 30, 2018 $ (817,805 ) |
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 currency translation Other Accumulated other comprehensive loss Balance as of December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income (loss), net (5,744 ) 570 (5,174 ) Balance as of June 30, 2018 $ (13,828 ) (881 ) (14,709 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended Six months ended June 30, July 1, June 30, July 1, Net income—basic and diluted $ 60,498 51,092 110,650 95,385 Weighted average number of common shares: Common—basic 82,869,232 91,207,455 84,660,208 91,432,007 Common—diluted 84,113,681 92,606,525 85,995,475 92,863,378 Earnings per common share: Common—basic $ 0.73 0.56 1.31 1.04 Common—diluted 0.72 0.55 1.29 1.03 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Three months ended Six months ended June 30, July 1, June 30, July 1, B-R 31 Ice Cream Company., Ltd. $ 626 587 971 876 BR-Korea Co., Ltd. 1,181 1,035 2,127 2,052 Palm Oasis Ventures Pty. Ltd. 768 958 1,473 1,967 $ 2,575 2,580 4,571 4,895 |
Advertising Funds (Tables)
Advertising Funds (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Assets and Liabilities of Adverting Funds | Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended Six months ended June 30, July 1, June 30, July 1, Dunkin’ Donuts International $ 60 13 (384 ) (77 ) Baskin-Robbins International 2,926 2,950 4,653 4,976 Total reportable segments 2,986 2,963 4,269 4,899 Other 859 1,364 1,609 2,247 Total net income of equity method investments $ 3,845 4,327 5,878 7,146 Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): June 30, December 30, Accounts receivable, net $ 21,359 18,075 Notes and other receivables, net 4,853 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 17,270 15,498 Total current assets 43,544 34,871 Property, equipment, and software, net 14,460 12,537 Other assets 1,466 14 Total assets $ 59,470 47,422 Accounts payable $ 50,005 37,110 Deferred revenue—current (a) (743 ) (550 ) Other current liabilities 24,574 29,032 Total current liabilities 73,836 65,592 Deferred revenue—long-term (a) (7,155 ) (7,518 ) Other long-term liabilities 23 30 Total liabilities $ 66,704 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Franchise agreements initial term, domestic | P10Y |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Franchise agreements initial term, domestic | P20Y |
Domestic Franchise | |
Disaggregation of Revenue [Line Items] | |
Franchise agreements initial term, domestic | 20 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 350,640 | $ 334,176 | $ 651,982 | $ 630,534 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 329,939 | 317,690 | 615,783 | 597,741 |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,701 | 16,486 | 36,199 | 32,793 |
United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 157,390 | 150,991 | 297,301 | 287,031 |
United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,099 | 14,256 | 24,612 | 24,833 |
United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,174 | 113,824 | 223,341 | 216,145 |
International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,258 | 4,612 | 10,623 | 9,445 |
International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34,018 | 34,007 | 59,906 | 60,287 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,319 | 11,834 | 23,892 | 23,346 |
Rental income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,274 | 35,277 | 62,333 | 67,526 |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,874 | 7,869 | 10,455 | 15,696 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,506 | 26,533 | 50,097 | 50,057 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 763 | 763 | 1,530 | 1,547 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 131 | 112 | 251 | 226 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,874 | 7,869 | 10,455 | 15,696 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,874 | 7,869 | 10,455 | 15,696 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,506 | 26,533 | 50,097 | 50,057 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 763 | 763 | 1,530 | 1,547 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 131 | 112 | 251 | 226 |
Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 319,366 | 298,899 | 589,649 | 563,008 |
Accounting Standards Update 2014-09 | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 302,539 | 290,282 | 563,905 | 545,911 |
Accounting Standards Update 2014-09 | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,827 | 8,617 | 25,744 | 17,097 |
Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 130,884 | 124,458 | 247,204 | 236,974 |
Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,336 | 13,493 | 23,082 | 23,286 |
Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,174 | 113,824 | 223,341 | 216,145 |
Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,258 | 4,612 | 10,623 | 9,445 |
Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,887 | 33,895 | 59,655 | 60,061 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 290,594 | 269,657 | 538,495 | 510,514 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 269,858 | 257,300 | 506,212 | 487,402 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,736 | 12,357 | 32,283 | 23,112 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 130,574 | 124,237 | 246,649 | 236,250 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,437 | 12,460 | 21,412 | 21,663 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,174 | 113,824 | 223,341 | 216,145 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,267 | 4,632 | 10,655 | 9,481 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,406 | 2,147 | 4,155 | 3,863 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,388 | 138,374 | 272,245 | 260,867 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 141,112 | 134,191 | 264,835 | 253,893 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,276 | 4,183 | 7,410 | 6,974 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 125,221 | 119,096 | 236,054 | 226,271 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,005 | 9,080 | 15,414 | 15,764 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,732 | 4,157 | 9,670 | 8,569 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,154 | 1,858 | 3,697 | 3,289 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,854 | 5,520 | 11,504 | 10,742 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,854 | 5,520 | 11,504 | 10,742 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,765 | 4,564 | 9,472 | 8,862 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 303 | 193 | 592 | 399 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 535 | 475 | 983 | 908 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 251 | 288 | 457 | 573 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 127,665 | 114,492 | 232,091 | 216,868 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,174 | 113,824 | 223,341 | 216,145 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,491 | 668 | 8,750 | 723 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 119,174 | 113,824 | 223,341 | 216,145 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,687 | 11,271 | 22,655 | 22,037 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,718 | 3,765 | 6,532 | 6,622 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,969 | 7,506 | 16,123 | 15,415 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 588 | 577 | 1,123 | 1,117 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,129 | 3,187 | 5,406 | 5,500 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 2 | 4 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1 | 1 | 1 | 1 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,772 | 29,242 | 51,154 | 52,494 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,681 | 32,982 | 57,693 | 58,509 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (3,909) | (3,740) | (6,539) | (6,015) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 310 | 221 | 555 | 724 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 899 | 1,033 | 1,670 | 1,623 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (9) | (20) | (32) | (36) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,481 | 31,748 | 55,500 | 56,198 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 632 | 563 | 1,237 | 1,309 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 430 | 414 | 792 | 1,011 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 202 | 149 | 445 | 298 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 310 | 221 | 555 | 724 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57 | 150 | 150 | 214 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (9) | (20) | (32) | (36) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 72 | 63 | 119 | 109 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,140 | 28,679 | 49,917 | 51,185 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,251 | 32,568 | 56,901 | 57,498 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (4,111) | (3,889) | (6,984) | (6,313) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 842 | 883 | 1,520 | 1,409 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | U.S. Advertising Funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating Segments | Dunkin' Donuts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating Segments | Baskin-Robbins | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 31,409 | $ 31,685 | $ 55,381 | $ 56,089 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)customer | Jul. 01, 2017 | Jun. 30, 2018USD ($)customer | Dec. 30, 2017USD ($) | |
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Advertising, prepaid | $ 17,300 | $ 17,300 | $ 15,500 | |
Financial reporting and operating period, quarter | 91 days | 91 days | ||
Carrying Value and Estimated Fair Value Of Long Term Debt [Abstract] | ||||
Long-term debt | $ 3,055,605 | 3,055,605 | 3,067,357 | |
Term loans, Estimated fair value | $ 3,068,647 | $ 3,068,647 | $ 3,156,099 | |
Minimum | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Financial reporting and operating period, year | 364 days | |||
Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Percentage of receivable from one master licensee account | 20.00% | 20.00% | 11.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration Risk, Customer | 1 | |||
Customer Concentration Risk [Member] | Sales [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration Risk, Customer | 1 | |||
Concentration risk, number of customers | customer | 0 | 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 99,950,000 | $ 76,455,000 |
Current | 30,550,000 | 27,724,000 |
Long-term | 366,246,000 | 361,458,000 |
Total | 396,796,000 | 389,182,000 |
Deferred revenue, revenue recognized | 16,700,000 | |
Contract with customer, asset | $ 0 | $ 0 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Schedule of cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 367,940 | $ 1,018,317 | ||
Restricted cash | 84,970 | 94,047 | ||
Restricted cash, included in Other assets | 1,773 | 1,735 | ||
Total cash, cash equivalents, and restricted cash | $ 454,683 | $ 1,114,099 | $ 340,243 | $ 431,832 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 16,541 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 25,091 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,851 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,614 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,341 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 247,568 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 360,006 |
Restaurants, not yet open | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 61,900 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | $ 11,033 | $ 10,836 |
Liabilities | 11,448 | 13,543 |
Company-owned life insurance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | 11,033 | 10,836 |
Deferred compensation liabilities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities | 11,448 | 13,543 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | 11,033 | 10,836 |
Liabilities | 11,448 | 13,543 |
Significant other observable inputs (Level 2) | Company-owned life insurance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | 11,033 | 10,836 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities | $ 11,448 | $ 13,543 |
Revenue Recognition - Impacts o
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 367,940 | $ 1,018,317 |
Restricted cash | 84,970 | 94,047 |
Accounts receivables, net | 88,790 | 69,517 |
Notes and other receivables, net | 40,117 | 52,332 |
Restricted assets of advertising funds | 0 | |
Prepaid income taxes | 17,754 | 21,927 |
Prepaid expenses and other current assets | 56,906 | 48,193 |
Total current assets | 656,477 | 1,304,333 |
Property and equipment, net | 204,011 | 181,542 |
Equity method investments | 137,910 | 140,615 |
Goodwill | 888,284 | 888,308 |
Other intangibles assets, net | 1,345,309 | 1,357,157 |
Other assets | 66,737 | 65,478 |
Total assets | 3,298,728 | 3,937,433 |
Current liabilities: | ||
Current portion of long-term debt | 31,650 | 31,500 |
Capital lease obligations | 631 | 596 |
Accounts payable | 68,783 | 53,417 |
Liabilities of advertising funds | 0 | |
Deferred revenue | 44,175 | 44,876 |
Other current liabilities | 284,768 | 355,110 |
Total current liabilities | 430,007 | 485,499 |
Long-term debt, net | 3,023,955 | 3,035,857 |
Capital lease obligations | 6,851 | 7,180 |
Unfavorable operating leases acquired | 9,033 | 9,780 |
Deferred revenue | 366,246 | 361,458 |
Deferred income taxes, net | 205,859 | 214,345 |
Other long-term liabilities | 74,582 | 77,853 |
Total long-term liabilities | 3,686,526 | 3,706,473 |
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
Common stock | 83 | 90 |
Additional paid-in capital | 511,379 | 724,114 |
Treasury stock, at cost; 26,777 shares as of June 30, 2018 and December 30, 2017 | (1,060) | (1,060) |
Accumulated deficit | (1,313,498) | (968,148) |
Accumulated other comprehensive loss | (14,709) | (9,535) |
Total stockholders’ deficit | (817,805) | (254,539) |
Total liabilities and stockholders’ deficit | $ 3,298,728 | 3,937,433 |
Previously reported | ||
Current assets: | ||
Cash and cash equivalents | 1,018,317 | |
Restricted cash | 94,047 | |
Accounts receivables, net | 51,442 | |
Notes and other receivables, net | 51,082 | |
Restricted assets of advertising funds | 47,373 | |
Prepaid income taxes | 21,879 | |
Prepaid expenses and other current assets | 32,695 | |
Total current assets | 1,316,835 | |
Property and equipment, net | 169,005 | |
Equity method investments | 140,615 | |
Goodwill | 888,308 | |
Other intangibles assets, net | 1,357,157 | |
Other assets | 65,464 | |
Total assets | 3,937,384 | |
Current liabilities: | ||
Current portion of long-term debt | 31,500 | |
Capital lease obligations | 596 | |
Accounts payable | 16,307 | |
Liabilities of advertising funds | 58,014 | |
Deferred revenue | 39,395 | |
Other current liabilities | 326,078 | |
Total current liabilities | 471,890 | |
Long-term debt, net | 3,035,857 | |
Capital lease obligations | 7,180 | |
Unfavorable operating leases acquired | 9,780 | |
Deferred revenue | 11,158 | |
Deferred income taxes, net | 315,249 | |
Other long-term liabilities | 77,823 | |
Total long-term liabilities | 3,457,047 | |
Stockholders’ deficit: | ||
Preferred stock | 0 | |
Common stock | 90 | |
Additional paid-in capital | 724,114 | |
Treasury stock, at cost; 26,777 shares as of June 30, 2018 and December 30, 2017 | (1,060) | |
Accumulated deficit | (705,007) | |
Accumulated other comprehensive loss | (9,690) | |
Total stockholders’ deficit | 8,447 | |
Total liabilities and stockholders’ deficit | 3,937,384 | |
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | ||
Current assets: | ||
Total current assets | 0 | |
Total assets | 0 | |
Current liabilities: | ||
Deferred revenue | 1,502 | |
Total current liabilities | 1,502 | |
Deferred revenue | 328,183 | |
Deferred income taxes, net | (91,488) | |
Total long-term liabilities | 236,695 | |
Stockholders’ deficit: | ||
Accumulated deficit | (238,197) | |
Total stockholders’ deficit | (238,197) | |
Total liabilities and stockholders’ deficit | 0 | |
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising fees and related income | ||
Current assets: | ||
Accounts receivables, net | 18,075 | |
Notes and other receivables, net | 1,250 | |
Restricted assets of advertising funds | (47,373) | |
Prepaid income taxes | 48 | |
Prepaid expenses and other current assets | 15,498 | |
Total current assets | (12,502) | |
Property and equipment, net | 12,537 | |
Other assets | 14 | |
Total assets | 49 | |
Current liabilities: | ||
Accounts payable | 37,110 | |
Liabilities of advertising funds | (58,014) | |
Deferred revenue | (550) | |
Other current liabilities | 29,032 | |
Total current liabilities | 7,578 | |
Deferred revenue | (7,518) | |
Other long-term liabilities | 30 | |
Total long-term liabilities | (7,488) | |
Stockholders’ deficit: | ||
Accumulated deficit | (196) | |
Accumulated other comprehensive loss | 155 | |
Total stockholders’ deficit | (41) | |
Total liabilities and stockholders’ deficit | 49 | |
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | ||
Current assets: | ||
Total current assets | 0 | |
Total assets | 0 | |
Current liabilities: | ||
Deferred revenue | 4,529 | |
Total current liabilities | 4,529 | |
Deferred revenue | 29,635 | |
Deferred income taxes, net | (9,416) | |
Total long-term liabilities | 20,219 | |
Stockholders’ deficit: | ||
Accumulated deficit | (24,748) | |
Total stockholders’ deficit | (24,748) | |
Total liabilities and stockholders’ deficit | $ 0 |
Revenue Recognition - Impacts37
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Revenues: | ||||
Revenue | $ 350,640 | $ 334,176 | $ 651,982 | $ 630,534 |
Operating costs and expenses: | ||||
Advertising expenses | 132,579 | 123,676 | 244,551 | 234,748 |
General and administrative expenses, net | 59,301 | 61,074 | 119,125 | 121,443 |
Depreciation | 5,125 | 5,071 | 10,158 | 10,155 |
Amortization of other intangible assets | 5,307 | 5,333 | 10,682 | 10,660 |
Long-lived asset impairment charges | 653 | 60 | 1,154 | 107 |
Total operating costs and expenses | 240,060 | 231,700 | 453,609 | 444,659 |
Net income of equity method investments | 3,845 | 4,327 | 5,878 | 7,146 |
Other operating income (loss), net | (575) | 33 | (570) | 588 |
Operating income | 113,850 | 106,836 | 203,681 | 193,609 |
Other income (expense), net: | ||||
Interest income | 1,516 | 425 | 3,158 | 746 |
Interest expense | (32,538) | (24,885) | (65,015) | (49,756) |
Other income (losses), net | (272) | 28 | (599) | 215 |
Total other expense, net | (31,294) | (24,432) | (62,456) | (48,795) |
Income before income taxes | 82,556 | 82,404 | 141,225 | 144,814 |
Provision for income taxes | 22,058 | 31,312 | 30,575 | 49,429 |
Net income | $ 60,498 | $ 51,092 | $ 110,650 | $ 95,385 |
Common-basic (in dollars per share) | $ 0.73 | $ 0.56 | $ 1.31 | $ 1.04 |
Common-diluted (in dollars per share) | $ 0.72 | $ 0.55 | $ 1.29 | $ 1.03 |
Franchise fees and royalty income | ||||
Revenues: | ||||
Revenue | $ 151,242 | $ 143,894 | $ 283,749 | $ 271,609 |
Advertising fees and related income | ||||
Revenues: | ||||
Revenue | 131,539 | 122,361 | 242,546 | 232,564 |
Rental income | ||||
Revenues: | ||||
Revenue | 27,400 | 27,408 | 51,878 | 51,830 |
Ice cream and other products | ||||
Revenues: | ||||
Revenue | 28,140 | 28,679 | 49,917 | 51,185 |
Operating costs and expenses: | ||||
Cost of goods sold | 22,781 | 22,199 | 39,645 | 39,121 |
Other revenues | ||||
Revenues: | ||||
Revenue | 12,319 | 11,834 | 23,892 | 23,346 |
Occupancy expenses—franchised restaurants | ||||
Operating costs and expenses: | ||||
Cost of goods sold | 14,314 | 14,287 | 28,294 | 28,425 |
Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenue | $ 319,366 | 298,899 | $ 589,649 | 563,008 |
Previously reported | ||||
Revenues: | ||||
Revenue | 218,522 | 409,194 | ||
Operating costs and expenses: | ||||
Advertising expenses | 0 | 0 | ||
General and administrative expenses, net | 62,382 | 123,617 | ||
Depreciation | 5,071 | 10,155 | ||
Amortization of other intangible assets | 5,333 | 10,660 | ||
Long-lived asset impairment charges | 60 | 107 | ||
Total operating costs and expenses | 109,332 | 212,085 | ||
Net income of equity method investments | 4,327 | 7,146 | ||
Other operating income (loss), net | 33 | 588 | ||
Operating income | 113,550 | 204,843 | ||
Other income (expense), net: | ||||
Interest income | 425 | 746 | ||
Interest expense | (24,885) | (49,756) | ||
Other income (losses), net | 28 | 215 | ||
Total other expense, net | (24,432) | (48,795) | ||
Income before income taxes | 89,118 | 156,048 | ||
Provision for income taxes | 33,414 | 52,877 | ||
Net income | $ 55,704 | $ 103,171 | ||
Common-basic (in dollars per share) | $ 0.61 | $ 1.13 | ||
Common-diluted (in dollars per share) | $ 0.60 | $ 1.11 | ||
Previously reported | Franchise fees and royalty income | ||||
Revenues: | ||||
Revenue | $ 145,066 | $ 275,135 | ||
Previously reported | Rental income | ||||
Revenues: | ||||
Revenue | 27,408 | 51,830 | ||
Previously reported | Ice cream and other products | ||||
Revenues: | ||||
Revenue | 32,862 | 58,159 | ||
Operating costs and expenses: | ||||
Cost of goods sold | 22,199 | 39,121 | ||
Previously reported | Other revenues | ||||
Revenues: | ||||
Revenue | 13,186 | 24,070 | ||
Previously reported | Occupancy expenses—franchised restaurants | ||||
Operating costs and expenses: | ||||
Cost of goods sold | 14,287 | 28,425 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | ||||
Revenues: | ||||
Revenue | (6,388) | (12,655) | ||
Operating costs and expenses: | ||||
Total operating costs and expenses | 0 | 0 | ||
Operating income | (6,388) | (12,655) | ||
Other income (expense), net: | ||||
Total other expense, net | 0 | 0 | ||
Income before income taxes | (6,388) | (12,655) | ||
Provision for income taxes | (1,980) | (3,834) | ||
Net income | (4,408) | (8,821) | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | ||||
Revenues: | ||||
Revenue | (5,355) | (10,500) | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream royalty allocation | ||||
Revenues: | ||||
Revenue | 4,183 | 6,974 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising | ||||
Revenues: | ||||
Revenue | 122,361 | 232,564 | ||
Operating costs and expenses: | ||||
Advertising expenses | 123,676 | 234,748 | ||
General and administrative expenses, net | (1,308) | (2,174) | ||
Total operating costs and expenses | 122,368 | 232,574 | ||
Operating income | (7) | (10) | ||
Other income (expense), net: | ||||
Total other expense, net | 0 | 0 | ||
Income before income taxes | (7) | (10) | ||
Net income | (7) | (10) | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising fees and related income | ||||
Revenues: | ||||
Revenue | 122,361 | 232,564 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream royalty allocation | ||||
Revenues: | ||||
Revenue | 0 | 0 | ||
Operating costs and expenses: | ||||
Total operating costs and expenses | 0 | 0 | ||
Operating income | 0 | 0 | ||
Other income (expense), net: | ||||
Total other expense, net | 0 | 0 | ||
Income before income taxes | 0 | 0 | ||
Net income | 0 | 0 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream and other products | ||||
Revenues: | ||||
Revenue | (4,183) | (6,974) | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | ||||
Revenues: | ||||
Revenue | (319) | 1,431 | ||
Operating costs and expenses: | ||||
Total operating costs and expenses | 0 | 0 | ||
Operating income | (319) | 1,431 | ||
Other income (expense), net: | ||||
Total other expense, net | 0 | 0 | ||
Income before income taxes | (319) | 1,431 | ||
Provision for income taxes | (122) | 386 | ||
Net income | (197) | 1,045 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | ||||
Revenues: | ||||
Revenue | (1,033) | (2,155) | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | ||||
Revenues: | ||||
Revenue | $ (319) | $ 1,431 |
Revenue Recognition - Impacts38
Revenue Recognition - Impacts of Revenue Guidance, Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | $ 67,739 | $ 67,060 |
Net cash used in investing activities | (32,902) | (6,829) |
Net cash used in financing activities | (694,025) | (152,218) |
Decrease in cash, cash equivalents, and restricted cash | $ (659,416) | (91,589) |
Previously reported | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | 63,954 | |
Net cash used in investing activities | (3,723) | |
Net cash used in financing activities | (152,218) | |
Decrease in cash, cash equivalents, and restricted cash | (91,589) | |
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | 3,106 | |
Net cash used in investing activities | (3,106) | |
Net cash used in financing activities | 0 | |
Decrease in cash, cash equivalents, and restricted cash | $ 0 |
Debt Schedule (Details)
Debt Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ (32,006) | $ (34,518) |
Long-term debt | 3,055,605 | 3,067,357 |
Current portion of long-term debt | 31,650 | 31,500 |
Long-term debt, net | 3,023,955 | 3,035,857 |
Twenty Fifteen Class A-2-II Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,693,125 | 1,701,875 |
Twenty Seventeen Class A-2-I Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 597,000 | 600,000 |
Twenty Seventeen Class A-2-II Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 796,000 | $ 800,000 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,486 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Standby letters of credit | $ 32,400,000 | $ 32,300,000 |
Amounts drawn on letters of credit | $ 0 | |
Twenty Fifteen Class A-2-II Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |
Twenty Seventeen Class A-2-I Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.629% | |
Twenty Seventeen Class A-2-II Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.03% | |
Variable Funding Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 150,000,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $ 169,341 | $ 228,783 |
Accrued payroll and benefits | 21,285 | 30,768 |
Accrued interest | 14,003 | 17,902 |
Accrued professional costs | 5,277 | 5,527 |
Accrued advertising expenses | 31,943 | 35,210 |
Franchisee profit-sharing liability | 11,179 | 13,243 |
Other | 31,740 | 23,677 |
Total other current liabilities | $ 284,768 | $ 355,110 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Information - Revenues
Segment Information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 350,640 | $ 334,176 | $ 651,982 | $ 630,534 |
Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 20,701 | 16,486 | 36,199 | 32,793 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 329,939 | 317,690 | 615,783 | 597,741 |
Operating Segments | Dunkin' Donuts | United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 157,390 | 150,991 | 297,301 | 287,031 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 5,258 | 4,612 | 10,623 | 9,445 |
Operating Segments | Baskin-Robbins | United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 14,099 | 14,256 | 24,612 | 24,833 |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 34,018 | 34,007 | 59,906 | 60,287 |
Operating Segments | U.S. Advertising Funds | United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 119,174 | $ 113,824 | $ 223,341 | $ 216,145 |
Segment Information - Segment P
Segment Information - Segment Profit by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate and other | $ (25,403) | $ (28,850) | $ (52,641) | $ (55,378) |
Interest expense, net | (31,022) | (24,460) | (61,857) | (49,010) |
Amortization of other intangible assets | (5,307) | (5,333) | (10,682) | (10,660) |
Long-lived asset impairment charges | (653) | (60) | (1,154) | (107) |
Other income (losses), net | (272) | 28 | (599) | 215 |
Income before income taxes | 82,556 | 82,404 | 141,225 | 144,814 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 145,213 | 141,079 | 268,158 | 259,754 |
Operating Segments | Dunkin' Donuts | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 119,562 | 116,113 | 224,625 | 217,807 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 3,503 | 1,571 | 6,709 | 2,998 |
Operating Segments | Baskin-Robbins | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 10,622 | 10,865 | 17,857 | 18,248 |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 11,526 | 12,530 | 18,967 | 20,701 |
Operating Segments | U.S. Advertising Funds | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Equity in
Segment Information - Equity in Net Income of Joint Ventures Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | $ 3,845 | $ 4,327 | $ 5,878 | $ 7,146 |
Other | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 859 | 1,364 | 1,609 | 2,247 |
Operating Segments | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 2,986 | 2,963 | 4,269 | 4,899 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 60 | 13 | (384) | (77) |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | $ 2,926 | $ 2,950 | $ 4,653 | $ 4,976 |
Stockholders_ Equity (Deficit46
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jul. 01, 2017 | Apr. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Class of Stock [Line Items] | |||||||
Payments for repurchase of common stock | $ 650,368 | $ 100,000 | |||||
Dividend per share of common stock paid (in usd per share) | $ 0.3475 | $ 0.3475 | |||||
Dividends paid on common stock | $ 28,800 | $ 28,600 | $ 57,439 | $ 58,847 | |||
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | $ 0.3225 | $ 0.7 | $ 0.65 | |||
Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | ||||||
2011 Plan | |||||||
Class of Stock [Line Items] | |||||||
Options granted | 909,027 | ||||||
Grant price (in usd per share) | $ 59.60 | ||||||
Options, grant date fair value (in usd per share) | 10.44 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 65.52 | ||||||
Compensation expense related to share-based awards | $ 3,700 | $ 3,800 | $ 6,900 | $ 7,200 | |||
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) | 64,566 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 58.33 | ||||||
2011 Plan | Phantom Share Units (PSUs) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted stock units granted (in shares) | 67,993 | ||||||
Share-based compensations, vesting period | 3 years | ||||||
2011 Plan | Phantom Share Units (PSUs), One [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted stock units granted (in shares) | 30,974 | ||||||
2011 Plan | Phantom Share Units (PSUs), Two [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted stock units granted (in shares) | 37,019 | ||||||
2011 Plan | Performance Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 57.10 | ||||||
Maximum vesting percentage | 200.00% | ||||||
Post award vesting holding period | 1 year | ||||||
Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Payments for repurchase of common stock | $ 650,000 | ||||||
Treasury stock, shares, acquired | 8,478,722 | ||||||
Employee [Member] | 2011 Plan | Restricted Stock Units (RSUs) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based compensations, vesting period | 3 years | ||||||
Board of Directors [Member] | 2011 Plan | Restricted Stock Units (RSUs) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based compensations, vesting period | 1 year | ||||||
Accelerated Share Repurchases Repurchase One [Member] | Treasury Stock [Member] | Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock, shares, retired | 8,478,722 | ||||||
Accelerated Share Repurchases Repurchase One [Member] | Additional Paid-in Capital [Member] | Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stockholders' equity, period increase (decrease) | $ 65,200 | ||||||
Accelerated Share Repurchases Repurchase One [Member] | Accumulated Deficit [Member] | Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stockholders' equity, period increase (decrease) | 455,100 | ||||||
Accelerated Share Repurchases Repurchase Two [Member] | Additional Paid-in Capital [Member] | Accelerated Share Repurchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stockholders' equity, period increase (decrease) | $ 130,000 |
Stockholders_ Equity (Deficit47
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Changes in Total Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of December 30, 2017 | $ (254,539) | |||
Net income | 110,650 | |||
Other comprehensive loss, net | $ (7,349) | $ (3,068) | (5,174) | $ 6,008 |
Dividends paid on common stock | (57,439) | |||
Exercise of stock options | 30,433 | |||
Accelerated share repurchases of common stock | (650,368) | |||
Share-based compensation expense | 6,949 | |||
Other, net | 1,683 | |||
Balance as of June 30, 2018 | $ (817,805) | $ (817,805) |
Stockholders_ Equity (Deficit48
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Changes in Components of Accumulated Other Comprehensive Income (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | $ (9,535) |
Other comprehensive income (loss), net | (5,174) |
Balance as of June 30, 2018 | (14,709) |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | (8,084) |
Other comprehensive income (loss), net | (5,744) |
Balance as of June 30, 2018 | (13,828) |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | (1,451) |
Other comprehensive income (loss), net | 570 |
Balance as of June 30, 2018 | $ (881) |
Earnings Per Shares - Additiona
Earnings Per Shares - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities, effect on basic earnings per share, including options and restrictive units | 1,244,449 | 1,399,070 | 1,335,267 | 1,431,371 |
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) | 256,350 | 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 | 982,054 | 1,123,482 | 1,432,676 | 1,629,480 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Dunkin' Brands-basic and diluted | $ 60,498 | $ 51,092 | $ 110,650 | $ 95,385 |
Weighted average number of common shares: | ||||
Common-basic (in shares) | 82,869,232 | 91,207,455 | 84,660,208 | 91,432,007 |
Common-diluted (in shares) | 84,113,681 | 92,606,525 | 85,995,475 | 92,863,378 |
Earnings (loss) per common share: | ||||
Common-basic (in dollars per share) | $ 0.73 | $ 0.56 | $ 1.31 | $ 1.04 |
Common-diluted (in dollars per share) | $ 0.72 | $ 0.55 | $ 1.29 | $ 1.03 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 30, 2017 |
Commitments and Contingencies Disclosure [Line Items] | ||
Standby letters of credit | $ 32,400,000 | $ 32,300,000 |
Amounts drawn on letters of credit | 0 | |
Contingent liabilities related to legal matters | 1,700,000 | 3,600,000 |
Supply Commitment | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Guarantee obligation, maximum exposure | $ 119,900,000 | $ 116,700,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 2,575 | $ 2,580 | $ 4,571 | $ 4,895 | |
Royalties receivable from joint ventures | 4,400 | 4,400 | $ 5,100 | ||
B-R 31 Ice Cream Company., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 626 | 587 | 971 | 876 | |
BR-Korea Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 1,181 | 1,035 | 2,127 | 2,052 | |
Palm Oasis Ventures Pty. Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 768 | 958 | 1,473 | 1,967 | |
Joint Ventures [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments to joint ventures | $ 825 | $ 742 | $ 1,900 | $ 1,800 |
Advertising Funds (Details)
Advertising Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Accounts receivables, net | $ 88,790 | $ 69,517 |
Notes and other receivables, net | 40,117 | 52,332 |
Prepaid income taxes | 17,754 | 21,927 |
Prepaid expenses and other current assets | 56,906 | 48,193 |
Total current assets | 656,477 | 1,304,333 |
Property and equipment, net | 204,011 | 181,542 |
Other assets | 66,737 | 65,478 |
Total assets | 3,298,728 | 3,937,433 |
Accounts payable | 68,783 | 53,417 |
Deferred revenue | 44,175 | 44,876 |
Other current liabilities | 284,768 | 355,110 |
Total current liabilities | 430,007 | 485,499 |
Deferred revenue | 366,246 | 361,458 |
Other long-term liabilities | 74,582 | 77,853 |
Total long-term liabilities | 3,686,526 | 3,706,473 |
U.S. Advertising Funds | ||
Segment Reporting Information [Line Items] | ||
Accounts receivables, net | 21,359 | 18,075 |
Notes and other receivables, net | 4,853 | 1,250 |
Prepaid income taxes | 62 | 48 |
Prepaid expenses and other current assets | 17,270 | 15,498 |
Total current assets | 43,544 | 34,871 |
Property and equipment, net | 14,460 | 12,537 |
Other assets | 1,466 | 14 |
Total assets | 59,470 | 47,422 |
Accounts payable | 50,005 | 37,110 |
Deferred revenue | (743) | (550) |
Other current liabilities | 24,574 | 29,032 |
Total current liabilities | 73,836 | 65,592 |
Deferred revenue | (7,155) | (7,518) |
Other long-term liabilities | 23 | 30 |
Total long-term liabilities | $ 66,704 | $ 58,104 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax Cuts And Jobs Act Of 2017, Income Tax Expense (Benefit) | $ 143.4 |
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 145.1 |
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Liability | $ 1.7 |