Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2015 | Jul. 30, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 28, 2015 | |
Entity Registrant Name | Bloomin' Brands, Inc. | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 122,637,497 | |
Entity Central Index Key | 1,546,417 | |
Current Fiscal Year End Date | --12-27 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 132,772 | $ 165,744 |
Current portion of restricted cash and cash equivalents | 4,356 | 6,829 |
Inventories | 72,068 | 80,817 |
Deferred income tax assets | 126,186 | 123,866 |
Assets held for sale | 2,106 | 16,667 |
Other current assets, net | 108,993 | 206,628 |
Total current assets | 446,481 | 600,551 |
Restricted cash | 24,035 | 25,451 |
Property, fixtures and equipment, net | 1,632,325 | 1,629,311 |
Goodwill | 318,206 | 341,540 |
Intangible assets, net | 563,935 | 585,432 |
Deferred income tax assets | 5,404 | 6,038 |
Other assets, net | 154,349 | 155,963 |
Total assets | 3,144,735 | 3,344,286 |
Current Liabilities | ||
Accounts payable | 202,663 | 191,207 |
Accrued and other current liabilities | 208,613 | 237,844 |
Current portion of partner deposits and accrued partner obligations | 7,147 | 8,399 |
Unearned revenue | 258,471 | 376,696 |
Current portion of long-term debt, net | 25,602 | 25,964 |
Total current liabilities | 702,496 | 840,110 |
Partner deposits and accrued partner obligations | 60,011 | 69,766 |
Deferred rent | 135,070 | 121,819 |
Deferred income tax liabilities | 178,631 | 181,125 |
Long-term debt, net | 1,295,315 | 1,289,879 |
Other long-term liabilities, net | 252,794 | 260,405 |
Total liabilities | $ 2,624,317 | $ 2,763,104 |
Commitments and contingencies (Note 14) | ||
Mezzanine Equity | ||
Redeemable noncontrolling interests | $ 24,470 | $ 24,733 |
Bloomin’ Brands Stockholders’ Equity | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of June 28, 2015 and December 28, 2014 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 122,625,374 and 125,949,870 shares issued and outstanding as of June 28, 2015 and December 28, 2014, respectively | 1,226 | 1,259 |
Additional paid-in capital | 1,088,075 | 1,085,627 |
Accumulated deficit | (482,664) | (474,994) |
Accumulated other comprehensive loss | (115,354) | (60,542) |
Total Bloomin’ Brands stockholders’ equity | 491,283 | 551,350 |
Noncontrolling interests | 4,665 | 5,099 |
Total stockholders’ equity | 495,948 | 556,449 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 3,144,735 | $ 3,344,286 |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Jun. 28, 2015 | Dec. 28, 2014 |
Bloomin’ Brands Stockholders’ Equity | ||
Preferred stock, par per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 475,000,000 | 475,000,000 |
Common stock, shares issued | 122,625,374 | 125,949,870 |
Common stock, shares outstanding | 122,625,374 | 125,949,870 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Revenues | ||||
Restaurant sales | $ 1,092,759 | $ 1,104,437 | $ 2,287,569 | $ 2,254,962 |
Other revenues | 6,838 | 6,475 | 14,087 | 13,809 |
Total revenues | 1,099,597 | 1,110,912 | 2,301,656 | 2,268,771 |
Costs and expenses | ||||
Cost of sales | 357,455 | 358,856 | 744,923 | 732,470 |
Labor and other related | 301,039 | 302,472 | 625,025 | 613,890 |
Other restaurant operating | 254,281 | 265,279 | 518,319 | 521,797 |
Depreciation and amortization | 47,375 | 48,627 | 93,861 | 94,792 |
General and administrative | 75,962 | 72,262 | 149,209 | 146,316 |
Provision for impaired assets and restaurant closings | 900 | 1,025 | 10,033 | 7,089 |
Total costs and expenses | 1,037,012 | 1,048,521 | 2,141,370 | 2,116,354 |
Income from operations | 62,585 | 62,391 | 160,286 | 152,417 |
Loss on extinguishment and modification of debt | (2,638) | (11,092) | (2,638) | (11,092) |
Other income (expense), net | 57 | 317 | (1,090) | 153 |
Interest expense, net | (12,867) | (15,109) | (26,065) | (31,707) |
Income before provision for income taxes | 47,137 | 36,507 | 130,493 | 109,771 |
Provision for income taxes | 14,081 | 8,785 | 35,355 | 26,949 |
Net income | 33,056 | 27,722 | 95,138 | 82,822 |
Less: net income attributable to noncontrolling interests | 830 | 1,331 | 2,324 | 2,698 |
Net income attributable to Bloomin’ Brands | 32,226 | 26,391 | 92,814 | 80,124 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (26,182) | 19,088 | (51,644) | 13,723 |
Unrealized gains (losses) on derivatives, net of tax | 844 | 0 | (3,168) | 0 |
Comprehensive income | 7,718 | 46,810 | 40,326 | 96,545 |
Less: comprehensive income attributable to noncontrolling interests | 830 | 1,331 | 2,324 | 2,698 |
Comprehensive income attributable to Bloomin’ Brands | $ 6,888 | $ 45,479 | $ 38,002 | $ 93,847 |
Earnings per share: | ||||
Basic (usd per share) | $ 0.26 | $ 0.21 | $ 0.75 | $ 0.64 |
Diluted (usd per share) | $ 0.26 | $ 0.21 | $ 0.73 | $ 0.63 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 123,046 | 125,229 | 124,174 | 124,889 |
Diluted (shares) | 126,242 | 128,378 | 127,501 | 128,115 |
Cash dividends declared per common share | $ 0.06 | $ 0 | $ 0.12 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive loss [Member] | Non-controlling interests [Member] |
Balance (in shares) at Dec. 31, 2013 | 124,784,000 | |||||
Balance at Dec. 31, 2013 | $ 482,709 | $ 1,248 | $ 1,068,705 | $ (565,154) | $ (26,418) | $ 4,328 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 82,382 | 80,124 | 2,258 | |||
Other comprehensive (loss) income, net of tax | 13,723 | 13,723 | ||||
Stock-based compensation | 8,032 | 8,032 | ||||
Excess tax benefit on stock-based compensation | 1,095 | 1,095 | ||||
Common stock issued under stock plans, net of forfeitures and shares withheld for employee taxes, shares | 813,000 | |||||
Common stock issued under stock plans, net of forfeitures and shares withheld for employee taxes, value | 4,694 | $ 8 | 5,485 | (799) | ||
Purchase of noncontrolling interests | (10,692) | (11,928) | 1,236 | |||
Distributions to noncontrolling interests | (2,470) | (2,470) | ||||
Balance (in shares) at Jun. 29, 2014 | 125,597,000 | |||||
Balance at Jun. 29, 2014 | $ 579,473 | $ 1,256 | 1,071,389 | (485,829) | (12,695) | 5,352 |
Balance (in shares) at Dec. 28, 2014 | 125,949,870 | 125,950,000 | ||||
Balance at Dec. 28, 2014 | $ 556,449 | $ 1,259 | 1,085,627 | (474,994) | (60,542) | 5,099 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 94,942 | 92,814 | 2,128 | |||
Other comprehensive (loss) income, net of tax | (54,812) | (54,812) | ||||
Cash dividends declared, $0.12 per common share | $ (14,814) | (14,814) | ||||
Repurchase and retirement of common stock, shares | (4,129,000) | (4,129,000) | ||||
Repurchase and retirement of common stock, value | $ (100,000) | $ (41) | (99,959) | |||
Stock-based compensation | 10,215 | 10,215 | ||||
Excess tax benefit on stock-based compensation | 1,272 | 1,272 | ||||
Common stock issued under stock plans, net of forfeitures and shares withheld for employee taxes, shares | 804,000 | |||||
Common stock issued under stock plans, net of forfeitures and shares withheld for employee taxes, value | 5,487 | $ 8 | 6,004 | (525) | ||
Purchase of noncontrolling interests | (229) | (229) | 0 | |||
Distributions to noncontrolling interests | $ (2,562) | (2,562) | ||||
Balance (in shares) at Jun. 28, 2015 | 122,625,374 | 122,625,000 | ||||
Balance at Jun. 28, 2015 | $ 495,948 | $ 1,226 | $ 1,088,075 | $ (482,664) | $ (115,354) | $ 4,665 |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Parenthetical - USD ($) $ in Thousands | 6 Months Ended |
Jun. 29, 2014 | |
Purchase of limited partnership interests, deferred tax effect | $ 6,519 |
Common stock, dividends per share | $ 0 |
Additional paid-in capital [Member] | |
Purchase of limited partnership interests, deferred tax effect | $ 6,519 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Cash flows provided by operating activities: | ||
Net income | $ 95,138 | $ 82,822 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 93,861 | 94,792 |
Amortization of deferred financing fees | 1,474 | 1,640 |
Amortization of capitalized gift card sales commissions | 15,548 | 14,829 |
Provision for impaired assets and restaurant closings | 10,033 | 7,089 |
Accretion on debt discounts | 965 | 1,097 |
Stock-based and other non-cash compensation expense | 11,810 | 9,672 |
Deferred income tax expense (benefit) | 1,931 | (372) |
Loss on disposal of property, fixtures and equipment | 498 | 1,077 |
Gain on life insurance and restricted cash investments | (1,582) | (1,732) |
Loss on disposal of business or subsidiary | 1,097 | 0 |
Loss on extinguishment and modification of debt | 2,638 | 11,092 |
Recognition of deferred gain on sale-leaseback transaction | (1,064) | (1,070) |
Excess tax benefits from stock-based compensation | (1,272) | (1,095) |
Change in assets and liabilities: | ||
Decrease in inventories | 6,352 | 15,724 |
Decrease (increase) in other current assets | 66,321 | (25,212) |
Decrease in other assets | 7,291 | 5,320 |
Decrease in accounts payable and accrued and other current liabilities | (6,505) | (11,440) |
Increase in deferred rent | 13,063 | 8,482 |
Decrease in unearned revenue | (118,257) | (110,392) |
Decrease in other long-term liabilities | (1,913) | (5,077) |
Net cash provided by operating activities | 197,427 | 97,246 |
Cash flows used in investing activities: | ||
Purchases of life insurance policies | (3,392) | (1,040) |
Proceeds received from life insurance policies | 14,942 | 627 |
Proceeds from disposal of property, fixtures and equipment | 3,104 | 562 |
Acquisition of business, net of cash acquired | 0 | (3,063) |
Proceeds from sale of a business | 7,798 | 0 |
Capital expenditures | (114,251) | (97,619) |
Decrease in restricted cash | 31,694 | 13,556 |
Increase in restricted cash | (29,216) | (14,192) |
Net cash used in investing activities | (89,321) | (101,169) |
Cash flows used in financing activities: | ||
Proceeds from issuance of senior secured Term loan A | 0 | 297,088 |
Extinguishment and modification of senior secured term loan | (215,000) | (700,000) |
Repayments of long-term debt | (29,419) | (18,090) |
Proceeds from borrowings on revolving credit facilities | 397,336 | 415,000 |
Repayments of borrowings on revolving credit facilities | (152,300) | (15,000) |
Financing fees | (1,235) | (4,492) |
Proceeds from the exercise of stock options, net of tax withholdings | 6,012 | 6,112 |
Distributions to noncontrolling interests | (2,562) | (2,470) |
Purchase of limited partnerships and noncontrolling interests | (652) | (17,211) |
Repayments of partner deposits and accrued partner obligations | (27,231) | (13,909) |
Repurchase of common stock | (100,525) | (799) |
Excess tax benefits from stock-based compensation | 1,272 | 1,095 |
Cash dividends paid on common stock | (14,814) | 0 |
Net cash used in financing activities | (139,118) | (52,676) |
Effect of exchange rate changes on cash and cash equivalents | (1,960) | 2,571 |
Net decrease in cash and cash equivalents | (32,972) | (54,028) |
Cash and cash equivalents as of the beginning of the period | 165,744 | 209,871 |
Cash and cash equivalents as of the end of the period | 132,772 | 155,843 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 25,730 | 30,790 |
Cash paid for income taxes, net of refunds | 10,883 | 29,941 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Conversion of partner deposits and accrued partner obligations to notes payable | 0 | 323 |
Change in acquisition of property, fixtures and equipment included in accounts payable or capital lease liabilities | (3,015) | 9,858 |
Deferred tax effect of purchase of noncontrolling interests | $ 0 | $ 6,519 |
Description of the Business and
Description of the Business and Basis of Presentation | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of business and basis of presentation | Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands, Inc. (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants primarily in the United States. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. In January 2015, the Company sold its Roy’s business. Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2014 . Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. Recently Issued Financial Accounting Standards Not Yet Adopted - In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03: “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU No. 2015-03”). ASU No. 2015-03 will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The update requires retrospective application and represents a change in accounting principle. ASU No. 2015-03 will be effective for the Company in fiscal year 2016, with early adoption permitted. The Company does not expect ASU No. 2015-03 to have a material impact on its financial position, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15: “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU No. 2014-15”). ASU No. 2014-15 will explicitly require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The new standard is applicable for all entities and will be effective for the Company in fiscal year 2016. The Company does not expect ASU No. 2014-15 to have a material impact on its financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09 “Revenue Recognition (Topic 606), Revenue from Contracts with Customers” (“ASU No. 2014-09”). ASU No. 2014-09 provides a single source of guidance for revenue arising from contracts with customers and supersedes current revenue recognition standards. Under ASU No. 2014-09, revenue is recognized in an amount that reflects the consideration an entity expects to receive for the transfer of goods and services. On July 9, 2015, the FASB agreed to delay the effective date of ASU 2014-09 by one year. As a result, the new guidance will be effective for the Company in fiscal year 2018 and is applied retrospectively to each period presented or as a cumulative effect adjustment at the date of adoption. The Company has not selected a transition method and is evaluating the impact this guidance will have on its financial position, results of operations and cash flows. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company. |
Disposals, Exit Costs and Acqui
Disposals, Exit Costs and Acquisitions | 6 Months Ended |
Jun. 28, 2015 | |
Disposals, Exit Costs and Acquisitions [Abstract] | |
Disposals, exit costs and acquisitions | Disposals, Exit Costs and Acquisitions The components of Provision for impaired assets and restaurant closings are as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Impairment losses $ 857 $ 407 $ 2,152 $ 483 Restaurant closure expenses 43 618 7,881 6,606 Provision for impaired assets and restaurant closings $ 900 $ 1,025 $ 10,033 $ 7,089 Restaurant Closure Initiatives - During 2014, the Company decided to close 36 underperforming international locations, primarily in South Korea (the “International Restaurant Closure Initiative”). As of June 28, 2015 , 35 of the 36 locations had been closed. In connection with the International Restaurant Closure Initiative, the Company incurred pre-tax restaurant and other closing costs of ($0.3) million and $6.1 million during the thirteen and twenty-six weeks ended June 28, 2015 , respectively, which were recorded within the International segment. The Company expects to incur additional charges of approximately $1.0 million , including costs associated with lease obligations, employee terminations and other closure related obligations, through the third quarter of 2015. Future cash expenditures of $5.0 million to $7.0 million , primarily related to lease liabilities, are expected to occur through August 2022 . In the fourth quarter of 2013, the Company completed an assessment of its domestic restaurant base and decided to close 22 underperforming domestic locations (the “Domestic Restaurant Closure Initiative”). Pre-tax restaurant and other closing costs of $1.3 million and $6.0 million were incurred during the twenty-six weeks ended June 28, 2015 and June 29, 2014 , respectively, in connection with the Domestic Restaurant Closure Initiative, which were recorded within the U.S. segment. Following is a summary of restaurant closure initiative expenses recognized in the Consolidated Statement of Operations and Comprehensive Income (dollars in thousands): DESCRIPTION LOCATION OF CHARGE IN THE CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Facility closure and other expenses Provision for impaired assets and restaurant closings $ (309 ) $ — $ 7,432 $ 5,972 Severance and other liabilities General and administrative 246 — 1,573 1,035 Reversal of deferred rent liability Other restaurant operating — — (198 ) (2,078 ) $ (63 ) $ — $ 8,807 $ 4,929 The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the Domestic and International Restaurant Closure Initiatives, during the twenty-six weeks ended June 28, 2015 : TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 Beginning of the period $ 11,000 Charges 8,634 Cash payments (10,022 ) Adjustments (1) (753 ) End of the period (2) $ 8,859 ________________ (1) Adjustments to facility closure and other costs represent changes in sublease assumptions and the impact of lease settlements on the Company’s remaining lease obligations. (2) As of June 28, 2015 , the Company had exit-related accruals of $2.5 million recorded in Accrued and other current liabilities and $6.4 million recorded in Other long-term liabilities, net. Roy’s - On January 26, 2015, the Company sold its Roy’s business to United Ohana, LLC (the “Buyer”), for a purchase price of $10.0 million , less certain liabilities, and recorded a (gain) loss on sale of ($0.3) million and $0.8 million , which was recorded in Other expense, net, during the thirteen and twenty-six weeks ended June 28, 2015 , respectively. The sale agreement contains a provision obligating the Company to pay the Buyer up to $5.0 million , if certain lease contingencies are not resolved prior to April 2018 and the Buyer is damaged. In July 2015, these lease contingencies were satisfactorily resolved. In connection with the sale of Roy’s, the Company continues to provide lease guarantees for certain of the Roy’s locations. Under the guarantees, the Company will pay the rental expense over the remaining lease term in the event of default by the Buyer. The fair value and maximum value of the lease guarantees is nominal. The maximum amount is calculated as the fair value of the lease payments over the remaining lease term and assumes that there are subleases. Following are the components of Roy’s included in the Consolidated Statements of Operations and Comprehensive Income during the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Restaurant sales $ — $ 17,472 $ 5,729 $ 36,401 Income (loss) before income taxes (1) $ 327 $ 113 $ (641 ) $ 568 ________________ (1) Includes (gain) loss on sale of ($0.3) million and $0.8 million during the thirteen and twenty-six weeks ended June 28, 2015 , respectively. Other Disposals - During the second quarter of 2015, the Company recognized additional pre-tax asset impairment charges of $0.7 million for corporate aircraft classified as held for sale. The impairment charges are recorded in Provision for impaired assets and restaurant closings in the Consolidated Statements of Operations and Comprehensive Income. Acquisitions - In 2013, the Company completed the acquisition of a controlling interest in PGS Consultoria e Serviços Ltda. (the “Brazil Joint Venture”) by purchasing 80% of the issued and outstanding capital stock of PGS Participações Ltda (“PGS Par”). As a result of the acquisition, the Company had a 90% interest and the former equity holders of PGS Par (“Former Equity Holders”) retained a noncontrolling interest of 10% in the Brazil Joint Venture. In April 2015, certain Former Equity Holders exercised options to sell their remaining interests in the Brazil Joint Venture to the Company for total cash consideration of $0.7 million This transaction resulted in a reduction of $0.5 million and $0.2 million of Mezzanine equity and Additional paid-in capital, respectively, during the twenty-six weeks ended June 28, 2015 . As a result of the option exercise, the Company now owns 90.25% of the Brazil Joint Venture. In connection with the Company’s acquisition of the Brazil Joint Venture in 2013, $7.9 million of the Company’s cash was held in escrow for customary indemnification obligations. The Former Equity Holders had an equal amount of cash held in escrow. The Company’s portion of escrow cash is reflected as restricted cash in the Company’s Consolidated Balance Sheet. In June 2015, the Company and the Former Equity Holders agreed to release all escrow cash . Certain Former Equity Holders contributed approximately $3.2 million to the Company for a noncontrolling interest in a new concept in Brazil (Abbraccio) in June 2015. As the Company consolidates the results of its Brazil operations on a one-month calendar lag, the release of cash and recognition of the noncontrolling interest will be reflected in the Company’s Consolidated Balance Sheet as of September 27, 2015. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings Per Share The Company computes basic earnings per share based on the weighted average number of common shares that were outstanding during the period. Diluted earnings per share includes the dilutive effect of common stock equivalents consisting of stock options, restricted stock, restricted stock units and performance-based share units, using the treasury stock method. Performance-based share units are considered dilutive when the related performance criterion has been met. The following table presents the computation of basic and diluted earnings per share: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Net income attributable to Bloomin’ Brands $ 32,226 $ 26,391 $ 92,814 $ 80,124 Basic weighted average common shares outstanding 123,046 125,229 124,174 124,889 Effect of diluted securities: Stock options 3,025 3,051 3,123 3,121 Nonvested restricted stock and restricted stock units 171 98 201 105 Nonvested performance-based share units — — 3 — Diluted weighted average common shares outstanding 126,242 128,378 127,501 128,115 Basic earnings per share $ 0.26 $ 0.21 $ 0.75 $ 0.64 Diluted earnings per share $ 0.26 $ 0.21 $ 0.73 $ 0.63 Dilutive securities outstanding not included in the computation of earnings per share because their effect was antidilutive were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Stock options 2,899 2,688 2,510 2,307 Nonvested restricted stock and restricted stock units 26 174 43 197 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 28, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based Compensation The Company recognized stock-based compensation expense as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Stock options $ 2,552 $ 3,098 $ 4,979 $ 5,566 Restricted stock and restricted stock units 1,741 989 3,150 1,738 Performance-based share units 940 177 1,689 535 $ 5,233 $ 4,264 $ 9,818 $ 7,839 During the twenty-six weeks ended June 28, 2015 , the Company made grants to its employees of 1.2 million stock options, 0.4 million time-based restricted stock units and 0.2 million performance-based share units. Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows: TWENTY-SIX WEEKS ENDED JUNE 28, 2015 Assumptions: Weighted-average risk-free interest rate (1) 1.64 % Dividend yield (2) 1.0 % Expected term (3) 6.3 years Weighted-average volatility (4) 43.4 % Weighted-average grant date fair value per option $ 10.11 ________________ (1) Risk-free rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the contractual life of the option. (2) Dividend yield is the level of dividends expected be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The simplified method of estimating the expected term is used since the Company does not have significant historical exercise experience for its stock options. (4) Volatility for the twenty-six weeks ended June 28, 2015 is based on the historical volatilities of the Company’s stock and the stock of comparable peer companies. The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of June 28, 2015 : UNRECOGNIZED REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 27,808 2.9 Restricted stock and restricted stock units $ 20,839 3.2 Performance-based share units $ 2,548 0.7 |
Other Current Assets, Net
Other Current Assets, Net | 6 Months Ended |
Jun. 28, 2015 | |
Other Current Assets, Net [Abstract] | |
Other current assets, net | Other Current Assets, Net Other current assets, net, consisted of the following: JUNE 28, DECEMBER 28, (dollars in thousands) 2015 2014 Prepaid expenses $ 26,856 $ 30,260 Accounts receivable - vendors, net 23,593 27,340 Accounts receivable - franchisees, net 1,865 1,159 Accounts receivable - other, net 38,101 107,178 Other current assets, net 18,578 40,691 $ 108,993 $ 206,628 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 28, 2015 | |
Goodwill Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net (dollars in thousands) U.S. SEGMENT INTERNATIONAL SEGMENT CONSOLIDATED Balance as of December 28, 2014 $ 172,711 $ 168,829 $ 341,540 Translation adjustments — (23,334 ) (23,334 ) Balance as of June 28, 2015 $ 172,711 $ 145,495 $ 318,206 The Company performed an annual assessment of goodwill and other indefinite-lived intangible assets during the fiscal second quarters of 2015 and 2014. In connection with the annual assessment, no goodwill or indefinite-lived intangible asset impairments were recorded in the thirteen and twenty-six weeks ended June 28, 2015 and June 29, 2014 , respectively. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jun. 28, 2015 | |
Payables and Accruals [Abstract] | |
Accrued and other current liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: JUNE 28, DECEMBER 28, (in thousands) 2015 2014 Accrued payroll and other compensation $ 94,690 $ 121,548 Accrued insurance 22,122 19,455 Other current liabilities 91,801 96,841 $ 208,613 $ 237,844 Accrued Payroll Taxes - In May 2015, the IRS issued an audit adjustment of $3.3 million to the Company for the employer’s share of FICA taxes related to cash tips allegedly received and unreported by the Company’s employees during calendar year 2011. As of June 28, 2015 and December 28, 2014 , the Company had $9.3 million and $12.0 million , respectively, recorded in Accrued and other current liabilities in the Company’s Consolidated Balance Sheet for payroll tax audits related to tax years 2011 and 2012. |
Long-term Debt, Net
Long-term Debt, Net | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt, net | Long-term Debt, Net Following is a summary of outstanding long-term debt: JUNE 28, 2015 DECEMBER 28, 2014 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 285,000 2.17 % $ 296,250 2.16 % Term loan B — — % 225,000 3.50 % Revolving credit facility (1) 570,000 2.16 % 325,000 2.16 % Total Senior Secured Credit Facility 855,000 846,250 2012 CMBS loan: First mortgage loan (1) 293,921 4.11 % 299,765 4.08 % First mezzanine loan 84,579 9.00 % 85,127 9.00 % Second mezzanine loan 85,707 11.25 % 86,067 11.25 % Total 2012 CMBS Loan 464,207 470,959 Capital lease obligations 2,716 634 Other long-term debt (2) 2,868 0.73% to 7.60% 4,073 0.52% to 7.00% $ 1,324,791 $ 1,321,916 Less: current portion of long-term debt, net (25,602 ) (25,964 ) Less: unamortized debt discount (3,874 ) (6,073 ) Long-term debt, net $ 1,295,315 $ 1,289,879 ________________ (1) Represents the weighted-average interest rate for the respective period. (2) Balance is comprised of sale-leaseback obligations and uncollateralized notes payable. Interest rates presented relate to the notes payable. Credit Agreement Amendment - On March 31, 2015, OSI Restaurant Partners, LLC (“OSI”), a wholly-owned subsidiary of the Company, entered into an amendment (the “Amendment”) to its existing credit agreement, dated October 26, 2012 (as previously amended, the “Existing Credit Agreement”), to effect an increase of OSI’s existing revolving credit facility from $600.0 million to $825.0 million in order to fully pay down its existing Term Loan B on April 2, 2015. No other material changes were made to the terms of OSI’s Existing Credit Agreement as a result of the Amendment. Revolving Credit Facility - Fees on letters of credit and the daily unused availability under the revolving credit facility as of June 28, 2015 were 2.13% and 0.30% , respectively. As of June 28, 2015 , $29.6 million of the revolving credit facility was committed for the issuance of letters of credit and not available for borrowing. Debt Covenants - As of June 28, 2015 and December 28, 2014 , the Company was in compliance with its debt covenants. Loss on Modification and Extinguishment of Debt - Following is a summary of loss on extinguishment and modification of debt recorded in the Company’s Consolidated Statement of Operations and Comprehensive Income: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 (1) JUNE 29, 2014 (2) JUNE 28, 2015 (1) JUNE 29, 2014 (2) Refinancing of Senior Secured Credit Facility $ 2,638 $ 11,092 $ 2,638 $ 11,092 ________________ (1) The loss was comprised of the write-off of $1.4 million of deferred financing fees and the write-off of $1.2 million of unamortized debt discount. (2) The loss was comprised of the write-off of $5.5 million of deferred financing fees, the write-off of $4.9 million of unamortized debt discount and a prepayment penalty of $0.7 million . Deferred financing fees - During the second quarter of 2015, the Company deferred $1.2 million of financing costs incurred in connection with the amendment to the Credit Agreement. The deferred financing costs are included in Other assets, net in the Consolidated Balance Sheets. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 28, 2015 | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable noncontrolling interests | Redeemable Noncontrolling Interests TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 Balance, beginning of period $ 24,733 Net income attributable to Redeemable noncontrolling interests 196 Purchase of Redeemable noncontrolling interests (1) (459 ) Balance, end of period $ 24,470 ________________ (1) In April 2015, certain equity holders of PGS Par exercised options to sell their remaining interests in the Brazil Joint Venture. See Note 2 - Disposals, Exit Costs and Acquisitions for further information. As of June 28, 2015 , the Company allocated Net income attributable to noncontrolling interests and performed a measurement of the redemption amount for Redeemable noncontrolling interests, including a fair value assessment. Based on the fair value assessment, no adjustment was required for the twenty-six weeks ended June 28, 2015 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 28, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' equity | Stockholders’ Equity Secondary Public Offering - In March 2015, Bain Capital sold its remaining shares of the Company’s common stock through an underwritten secondary public offering. The selling stockholders received all of the proceeds from the offering. Pursuant to the underwriting agreement for the secondary public offering, the Company repurchased from the underwriters 2,759,164 of the shares sold by Bain Capital at a cost of $70.0 million . Share Repurchases - In December 2014, the Company’s Board of Directors (the “Board”) approved a share repurchase program (the “2014 Share Repurchase Program”) under which the Company was authorized to repurchase up to $100.0 million of its outstanding common stock. As of June 28, 2015 , no shares remained available for purchase under the 2014 Share Repurchase Program. Following is a summary of the shares repurchased under the Company’s share repurchase program: NUMBER OF SHARES AVERAGE REPURCHASE PER SHARE AMOUNT Thirteen weeks ended March 29, 2015 (1) 2,759 $ 25.37 $ 70,000 Thirteen weeks ended June 28, 2015 1,370 $ 21.90 30,000 Total common stock repurchases 4,129 $ 24.22 $ 100,000 ________________ (1) Includes the repurchase of $70.0 million of the Company’s common stock in connection with the secondary public offering by Bain Capital in March 2015. In August 2015, the Board approved a new share repurchase program (the “2015 Share Repurchase Program”) under which the Company is authorized to repurchase up to $100.0 million of its outstanding common stock. The authorization for the 2015 Share Repurchase Program will expire on February 3, 2017 . As of the date of this filing, no shares had been repurchased under the 2015 Share Repurchase Program. Shares repurchased are retired. The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. Dividends - The Company declared and paid dividends per share during the periods presented as follows: DIVIDENDS AMOUNT Thirteen weeks ended March 29, 2015 $ 0.06 $ 7,423 Thirteen weeks ended June 28, 2015 0.06 7,391 Total cash dividends declared and paid $ 0.12 $ 14,814 In July 2015, the Board declared a quarterly cash dividend of $0.06 per share, payable on August 28, 2015 , to shareholders of record at the close of business on August 18, 2015 . Accumulated other comprehensive loss - Following are the components of Accumulated other comprehensive loss (“AOCL”), net of tax: (dollars in thousands) FOREIGN CURRENCY TRANSLATION ADJUSTMENT UNREALIZED LOSSES ON DERIVATIVES ACCUMULATED OTHER COMPREHENSIVE LOSS Balances as of December 28, 2014 $ (58,149 ) $ (2,393 ) $ (60,542 ) Other comprehensive loss, net of tax (51,644 ) (3,168 ) (54,812 ) Balances as of June 28, 2015 $ (109,793 ) $ (5,561 ) $ (115,354 ) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 28, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company manages economic risks, including interest rate risk, primarily by managing the amount, sources and duration of its debt funding and through the use of derivative financial instruments. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps. DESIGNATED HEDGES Cash Flow Hedges of Interest Rate Risk - On September 9, 2014 , the Company entered into variable-to-fixed interest rate swap agreements with eight counterparties to hedge a portion of the cash flows of the Company’s variable rate debt. The swap agreements have an aggregate notional amount of $400.0 million , a forward start date of June 30, 2015 , and mature on May 16, 2019 . Under the terms of the swap agreements, the Company will pay a weighted-average fixed rate of 2.02% on the $400.0 million notional amount and receive payments from the counterparty based on the 30-day LIBOR rate. The interest rate swaps, which have been designated and qualify as a cash flow hedge, are recognized on the Company ’ s Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. Fair value changes in the interest rate swaps are recognized in AOCL for all effective portions. Balances in AOCL are subsequently reclassified to earnings in the same period that the hedged interest payments affect earnings. The Company estimates $6.4 million will be reclassified to interest expense over the next twelve months. The following table presents the fair value and classification of the Company’s interest rate swaps: (dollars in thousands) JUNE 28, 2015 DECEMBER 28, 2014 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 6,052 $ 2,617 Accrued and other current liabilities Interest rate swaps - liability 3,065 1,307 Other long-term liabilities, net Total fair value of derivative instruments (1) $ 9,117 $ 3,924 ____________________ (1) See Note 12 - Fair Value Measurements for fair value discussion of the interest rate swaps. As of June 28, 2015 , no interest expense related to the interest rate swaps is accrued in the Consolidated Balance Sheets or recognized in the Consolidated Statements of Operations and Comprehensive Income as the interest rate swaps did not commence until June 30, 2015 . During the thirteen and twenty-six weeks ended June 28, 2015 , the Company did not recognize any gain or loss as a result of hedge ineffectiveness. The following table summarizes the effects of the interest rate swap on the Consolidated Statements of Operations and Comprehensive Income for the thirteen and twenty-six weeks ended June 28, 2015 : AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 28, 2015 Interest rate swaps $ 1,385 $ (5,193 ) Income tax (expense) benefit (541 ) 2,025 Net of income taxes $ 844 $ (3,168 ) The Company records its derivatives on the Consolidated Balance Sheets on a gross balance basis. The Company’s derivatives are subject to master netting arrangements. As of June 28, 2015 , the Company did not have more than one derivative between the same counterparties and as such, there was no netting. By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of June 28, 2015 , all counterparties to the interest rate swaps had performed in accordance with their contractual obligations. As of June 28, 2015 , the fair value of the Company’s derivatives in a net liability position, excluding any adjustment for nonperformance risk, was $9.3 million . As of June 28, 2015 , the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of June 28, 2015 , it could have been required to settle its obligations under the agreements at their termination value of $9.3 million . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of June 28, 2015 and December 28, 2014 : JUNE 28, 2015 DECEMBER 28, 2014 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 61 $ 61 $ — $ 4,602 $ 4,602 $ — Money market funds 1,133 1,133 — 7,842 7,842 — Restricted cash equivalents: Money market funds 571 571 — 3,360 3,360 — Total asset recurring fair value measurements $ 1,765 $ 1,765 $ — $ 15,804 $ 15,804 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 6,052 $ — $ 6,052 $ 2,617 $ — $ 2,617 Derivative instruments - commodities 507 — 507 566 — 566 Other long-term liabilities: Derivative instruments - interest rate swaps 3,065 — 3,065 1,307 — 1,307 Total liability recurring fair value measurements $ 9,624 $ — $ 9,624 $ 4,490 $ — $ 4,490 Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments Derivative instruments primarily relate to the interest rate swaps. Fair value measurements are based on a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives and uses observable market-based inputs, including interest rate curves and credit spreads. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of June 28, 2015, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. Fair Value Measurements on a Nonrecurring Basis - Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to property, fixtures and equipment, goodwill and other intangible assets, which are remeasured when carrying value exceeds fair value. The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis for the thirteen and twenty-six weeks ended June 28, 2015 : THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2015 JUNE 28, 2015 (dollars in thousands) CARRYING VALUE (1) TOTAL CARRYING VALUE (1) TOTAL Assets held for sale $ 3,353 $ 857 $ 3,353 $ 1,028 Property, fixtures and equipment — — 950 1,124 $ 3,353 $ 857 $ 4,303 $ 2,152 THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 29, 2014 JUNE 29, 2014 (dollars in thousands) CARRYING VALUE (2) TOTAL CARRYING VALUE (2) TOTAL Property, fixtures and equipment $ 2,351 $ 407 $ 2,951 $ 483 $ 2,351 $ 407 $ 2,951 $ 483 ________________ (1) Carrying value approximates fair value with all assets measured using Level 2 inputs for the thirteen and twenty-six weeks ended June 28, 2015 . A third-party market appraisal (Level 2) and a purchase contract (Level 2) were used to estimate the fair value. (2) Carrying value approximates fair value with $1.7 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the thirteen weeks ended June 29, 2014 and $2.3 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the twenty-six weeks ended June 29, 2014 . Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments as of June 28, 2015 and December 28, 2014 consist of cash equivalents, restricted cash, accounts receivable, accounts payable and current and long-term debt. The fair values of cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts reported in the Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of June 28, 2015 and December 28, 2014 : JUNE 28, 2015 DECEMBER 28, 2014 FAIR VALUE FAIR VALUE (dollars in thousands) CARRYING VALUE LEVEL 2 LEVEL 3 CARRYING VALUE LEVEL 2 LEVEL 3 Senior Secured Credit Facility: Term loan A $ 285,000 $ 283,931 $ — $ 296,250 $ 294,769 $ — Term loan B — — — 225,000 222,188 — Revolving credit facility 570,000 565,725 — 325,000 322,563 — CMBS loan: Mortgage loan 293,921 — 300,477 299,765 — 308,563 First mezzanine loan 84,579 — 84,639 85,127 — 85,187 Second mezzanine loan 85,707 — 86,624 86,067 — 86,988 Other notes payable 1,506 — 1,468 2,722 — 2,625 Fair value of debt is determined based on the following: DEBT FACILITY METHODS AND ASSUMPTIONS Senior Secured Credit Facility Quoted market prices in inactive markets. CMBS loan Assumptions derived from current conditions in the real estate and credit markets, changes in the underlying collateral and expectations of management. Other notes payable Discounted cash flow approach. Discounted cash flow inputs primarily include cost of debt rates which are used to derive the present value factors for the determination of fair value. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes The effective income tax rates for the thirteen and twenty-six weeks ended June 28, 2015 were 29.9% and 27.1% , respectively, compared to 24.1% and 24.6% for the thirteen and twenty-six weeks ended June 29, 2014 , respectively. The net increase in the effective income tax rate for the thirteen weeks ended June 28, 2015 was due to: (i) the favorable resolution of a payroll tax audit contingency that resulted in a deferred tax adjustment and (ii) a change in the blend of taxable income across the Company’s U.S. and international subsidiaries. The net increase in the effective income tax rate for the twenty-six weeks ended June 28, 2015 was due to: (i) a change in the blend of taxable income across the Company’s U.S. and international subsidiaries and (ii) the favorable resolution of a payroll tax audit contingency that resulted in a deferred tax adjustment. See Note 7 - Accrued and Other Current Liabilities for additional details regarding the payroll tax audit contingency. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and Contingencies Litigation and Other Matters - The matter set forth below is subject to uncertainties and outcomes that are not predictable with certainty. The Company is unable to estimate a range of reasonably possible loss for the matter described below as the proceedings are at stages where significant uncertainty exists as to the legal or factual issues. The Company provides disclosure of matters when management believes it is reasonably possible the impact may be material to the consolidated financial statements. On October 4, 2013, two then-current employees (the “Nevada Plaintiffs”) filed a purported collective action lawsuit against the Company, OSI Restaurant Partners, LLC (“OSI”), and two of its subsidiaries in the U.S. District Court for the District of Nevada (Cardoza, et al. v. Bloomin’ Brands, Inc., et al., Case No.: 2:13-cv-01820-JAD-NJK). The complaint alleges violations of the Fair Labor Standards Act by requiring employees to work off the clock, complete on-line training without pay, and attend meetings in the restaurant without pay. The suit seeks to certify a nationwide collective action that all hourly employees in all Outback Steakhouse restaurants would be permitted to join. The suit seeks an unspecified amount in back pay for the employees that join the lawsuit, an equal amount in liquidated damages, costs, expenses, and attorney’s fees. The Nevada Plaintiffs also filed a companion lawsuit in Nevada state court alleging that the Company violated the state break time rules. On October 27, 2014 the Court conditionally certified a class for notice purposes consisting of all employees that worked at a company-owned Outback Steakhouse between October 27, 2011 and October 27, 2014. The Company subsequently filed a Motion to Reconsider the October 27, 2014 order. On February 5, 2015, the Court denied the Company’s Motion to reconsider the October 27, 2014 order granting conditional certification. The Company believes these lawsuits are without merit, and is vigorously defending all allegations. In addition, the Company is subject to legal proceedings, claims and liabilities, such as liquor liability, sexual harassment and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance if they exceed specified retention or deductible amounts. In the opinion of management, the amount of ultimate liability with respect to those actions will not have a material adverse impact on the Company’s financial position or results of operations and cash flows. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Segment reporting | Segment Reporting During the first quarter of 2015, the Company recast its segment reporting to include two reportable segments, U.S. and International, which reflects changes made in how the Company manages its business, reviews operating performance and allocates resources. The U.S. segment includes all brands operating in the U.S. while brands operating outside the U.S. are included in the International segment. All prior period information was recast to reflect this change. The Company’s reporting segments are organized based on restaurant concept and geographic location. Resources are allocated and performance is assessed by the Company’s Chief Executive Officer (“CEO”), whom the Company has determined to be its Chief Operating Decision Maker. Following is a summary of reporting segments: SEGMENT CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America, including Puerto Rico Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse (1) South Korea, Brazil, Hong Kong, China Carrabba’s Italian Grill (Abbraccio) Brazil ________________ (1) Includes international franchise locations in 18 countries and Guam. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 28, 2014 . Revenues for all segments include only transactions with customers and include no intersegment revenues. Excluded from net income from operations for U.S. and International are legal and certain corporate costs not directly related to the performance of the segments, interest and other expenses related to the Company’s credit agreements and derivative instruments, certain stock-based compensation expenses, certain bonus expense and certain insurance expenses managed centrally. The following table is a summary of Total revenue by segment: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Total revenues U.S. $ 982,978 $ 967,043 $ 2,044,992 $ 1,977,669 International 116,619 143,869 256,664 291,102 Total revenues $ 1,099,597 $ 1,110,912 $ 2,301,656 $ 2,268,771 The following table is a reconciliation of Segment income from operations to Income before provision for income taxes: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Segment income from operations U.S. $ 93,265 $ 81,268 $ 220,673 $ 188,169 International 5,727 8,282 14,606 24,507 Total segment income from operations 98,992 89,550 235,279 212,676 Unallocated corporate operating expense (36,407 ) (27,159 ) (74,993 ) (60,259 ) Total income from operations 62,585 62,391 160,286 152,417 Loss on extinguishment and modification of debt (2,638 ) (11,092 ) (2,638 ) (11,092 ) Other income (expense), net 57 317 (1,090 ) 153 Interest expense, net (12,867 ) (15,109 ) (26,065 ) (31,707 ) Income before provision for income taxes $ 47,137 $ 36,507 $ 130,493 $ 109,771 The following table is a summary of Depreciation and amortization expense by segment: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Depreciation and amortization U.S. $ 37,670 $ 37,236 $ 74,385 $ 73,009 International 6,690 7,430 13,526 14,273 Corporate 3,015 3,961 5,950 7,510 Total depreciation and amortization $ 47,375 $ 48,627 $ 93,861 $ 94,792 |
Description of the Business a23
Description of the Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation, policy | Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2014 . |
Reclassification, policy | Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. |
New accounting pronouncements, policy | Recently Issued Financial Accounting Standards Not Yet Adopted - In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03: “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU No. 2015-03”). ASU No. 2015-03 will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The update requires retrospective application and represents a change in accounting principle. ASU No. 2015-03 will be effective for the Company in fiscal year 2016, with early adoption permitted. The Company does not expect ASU No. 2015-03 to have a material impact on its financial position, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15: “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU No. 2014-15”). ASU No. 2014-15 will explicitly require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The new standard is applicable for all entities and will be effective for the Company in fiscal year 2016. The Company does not expect ASU No. 2014-15 to have a material impact on its financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09 “Revenue Recognition (Topic 606), Revenue from Contracts with Customers” (“ASU No. 2014-09”). ASU No. 2014-09 provides a single source of guidance for revenue arising from contracts with customers and supersedes current revenue recognition standards. Under ASU No. 2014-09, revenue is recognized in an amount that reflects the consideration an entity expects to receive for the transfer of goods and services. On July 9, 2015, the FASB agreed to delay the effective date of ASU 2014-09 by one year. As a result, the new guidance will be effective for the Company in fiscal year 2018 and is applied retrospectively to each period presented or as a cumulative effect adjustment at the date of adoption. The Company has not selected a transition method and is evaluating the impact this guidance will have on its financial position, results of operations and cash flows. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company. |
Stockholders' Equity (Policies)
Stockholders' Equity (Policies) | 6 Months Ended |
Jun. 28, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Repurchases of common stock, policy | Shares repurchased are retired. The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. |
Disposals, Exit Costs and Acq25
Disposals, Exit Costs and Acquisitions (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Disposals, Exit Costs and Acquisitions [Abstract] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Impairment losses $ 857 $ 407 $ 2,152 $ 483 Restaurant closure expenses 43 618 7,881 6,606 Provision for impaired assets and restaurant closings $ 900 $ 1,025 $ 10,033 $ 7,089 |
Schedule of restructuring costs by type of cost | Following is a summary of restaurant closure initiative expenses recognized in the Consolidated Statement of Operations and Comprehensive Income (dollars in thousands): DESCRIPTION LOCATION OF CHARGE IN THE CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Facility closure and other expenses Provision for impaired assets and restaurant closings $ (309 ) $ — $ 7,432 $ 5,972 Severance and other liabilities General and administrative 246 — 1,573 1,035 Reversal of deferred rent liability Other restaurant operating — — (198 ) (2,078 ) $ (63 ) $ — $ 8,807 $ 4,929 |
Facility closing reserve rollforward | The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the Domestic and International Restaurant Closure Initiatives, during the twenty-six weeks ended June 28, 2015 : TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 Beginning of the period $ 11,000 Charges 8,634 Cash payments (10,022 ) Adjustments (1) (753 ) End of the period (2) $ 8,859 ________________ (1) Adjustments to facility closure and other costs represent changes in sublease assumptions and the impact of lease settlements on the Company’s remaining lease obligations. (2) As of June 28, 2015 , the Company had exit-related accruals of $2.5 million recorded in Accrued and other current liabilities and $6.4 million recorded in Other long-term liabilities, net. |
Condensed income statement, Roy's | Following are the components of Roy’s included in the Consolidated Statements of Operations and Comprehensive Income during the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Restaurant sales $ — $ 17,472 $ 5,729 $ 36,401 Income (loss) before income taxes (1) $ 327 $ 113 $ (641 ) $ 568 ________________ (1) Includes (gain) loss on sale of ($0.3) million and $0.8 million during the thirteen and twenty-six weeks ended June 28, 2015 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table presents the computation of basic and diluted earnings per share: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Net income attributable to Bloomin’ Brands $ 32,226 $ 26,391 $ 92,814 $ 80,124 Basic weighted average common shares outstanding 123,046 125,229 124,174 124,889 Effect of diluted securities: Stock options 3,025 3,051 3,123 3,121 Nonvested restricted stock and restricted stock units 171 98 201 105 Nonvested performance-based share units — — 3 — Diluted weighted average common shares outstanding 126,242 128,378 127,501 128,115 Basic earnings per share $ 0.26 $ 0.21 $ 0.75 $ 0.64 Diluted earnings per share $ 0.26 $ 0.21 $ 0.73 $ 0.63 |
Schedule of antidilutive securities excluded from computation of earnings per share | Dilutive securities outstanding not included in the computation of earnings per share because their effect was antidilutive were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Stock options 2,899 2,688 2,510 2,307 Nonvested restricted stock and restricted stock units 26 174 43 197 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan | The Company recognized stock-based compensation expense as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Stock options $ 2,552 $ 3,098 $ 4,979 $ 5,566 Restricted stock and restricted stock units 1,741 989 3,150 1,738 Performance-based share units 940 177 1,689 535 $ 5,233 $ 4,264 $ 9,818 $ 7,839 |
Schedule of share-based payment award, stock options, valuation assumptions | Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows: TWENTY-SIX WEEKS ENDED JUNE 28, 2015 Assumptions: Weighted-average risk-free interest rate (1) 1.64 % Dividend yield (2) 1.0 % Expected term (3) 6.3 years Weighted-average volatility (4) 43.4 % Weighted-average grant date fair value per option $ 10.11 ________________ (1) Risk-free rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the contractual life of the option. (2) Dividend yield is the level of dividends expected be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The simplified method of estimating the expected term is used since the Company does not have significant historical exercise experience for its stock options. (4) Volatility for the twenty-six weeks ended June 28, 2015 is based on the historical volatilities of the Company’s stock and the stock of comparable peer companies. |
Schedule of unrecognized compensation cost, nonvested awards | The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of June 28, 2015 : UNRECOGNIZED REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 27,808 2.9 Restricted stock and restricted stock units $ 20,839 3.2 Performance-based share units $ 2,548 0.7 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Other Current Assets, Net [Abstract] | |
Schedule of other current assets | Other current assets, net, consisted of the following: JUNE 28, DECEMBER 28, (dollars in thousands) 2015 2014 Prepaid expenses $ 26,856 $ 30,260 Accounts receivable - vendors, net 23,593 27,340 Accounts receivable - franchisees, net 1,865 1,159 Accounts receivable - other, net 38,101 107,178 Other current assets, net 18,578 40,691 $ 108,993 $ 206,628 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Goodwill Disclosure [Abstract] | |
Goodwill rollforward | (dollars in thousands) U.S. SEGMENT INTERNATIONAL SEGMENT CONSOLIDATED Balance as of December 28, 2014 $ 172,711 $ 168,829 $ 341,540 Translation adjustments — (23,334 ) (23,334 ) Balance as of June 28, 2015 $ 172,711 $ 145,495 $ 318,206 |
Accrued and Other Current Lia30
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued and other current liabilities | Accrued and other current liabilities consisted of the following: JUNE 28, DECEMBER 28, (in thousands) 2015 2014 Accrued payroll and other compensation $ 94,690 $ 121,548 Accrued insurance 22,122 19,455 Other current liabilities 91,801 96,841 $ 208,613 $ 237,844 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt: JUNE 28, 2015 DECEMBER 28, 2014 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 285,000 2.17 % $ 296,250 2.16 % Term loan B — — % 225,000 3.50 % Revolving credit facility (1) 570,000 2.16 % 325,000 2.16 % Total Senior Secured Credit Facility 855,000 846,250 2012 CMBS loan: First mortgage loan (1) 293,921 4.11 % 299,765 4.08 % First mezzanine loan 84,579 9.00 % 85,127 9.00 % Second mezzanine loan 85,707 11.25 % 86,067 11.25 % Total 2012 CMBS Loan 464,207 470,959 Capital lease obligations 2,716 634 Other long-term debt (2) 2,868 0.73% to 7.60% 4,073 0.52% to 7.00% $ 1,324,791 $ 1,321,916 Less: current portion of long-term debt, net (25,602 ) (25,964 ) Less: unamortized debt discount (3,874 ) (6,073 ) Long-term debt, net $ 1,295,315 $ 1,289,879 ________________ (1) Represents the weighted-average interest rate for the respective period. (2) Balance is comprised of sale-leaseback obligations and uncollateralized notes payable. Interest rates presented relate to the notes payable. |
Schedule of extinguishment of debt | Following is a summary of loss on extinguishment and modification of debt recorded in the Company’s Consolidated Statement of Operations and Comprehensive Income: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 (1) JUNE 29, 2014 (2) JUNE 28, 2015 (1) JUNE 29, 2014 (2) Refinancing of Senior Secured Credit Facility $ 2,638 $ 11,092 $ 2,638 $ 11,092 ________________ (1) The loss was comprised of the write-off of $1.4 million of deferred financing fees and the write-off of $1.2 million of unamortized debt discount. (2) The loss was comprised of the write-off of $5.5 million of deferred financing fees, the write-off of $4.9 million of unamortized debt discount and a prepayment penalty of $0.7 million . |
Redeemable Noncontrolling Int32
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable noncontrolling interests | TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 Balance, beginning of period $ 24,733 Net income attributable to Redeemable noncontrolling interests 196 Purchase of Redeemable noncontrolling interests (1) (459 ) Balance, end of period $ 24,470 ________________ (1) In April 2015, certain equity holders of PGS Par exercised options to sell their remaining interests in the Brazil Joint Venture. See Note 2 - Disposals, Exit Costs and Acquisitions for further information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of repurchases of common stock | Following is a summary of the shares repurchased under the Company’s share repurchase program: NUMBER OF SHARES AVERAGE REPURCHASE PER SHARE AMOUNT Thirteen weeks ended March 29, 2015 (1) 2,759 $ 25.37 $ 70,000 Thirteen weeks ended June 28, 2015 1,370 $ 21.90 30,000 Total common stock repurchases 4,129 $ 24.22 $ 100,000 ________________ (1) Includes the repurchase of $70.0 million of the Company’s common stock in connection with the secondary public offering by Bain Capital in March 2015. |
Dividends declared and paid | The Company declared and paid dividends per share during the periods presented as follows: DIVIDENDS AMOUNT Thirteen weeks ended March 29, 2015 $ 0.06 $ 7,423 Thirteen weeks ended June 28, 2015 0.06 7,391 Total cash dividends declared and paid $ 0.12 $ 14,814 |
Schedule of accumulated other comprehensive loss | Following are the components of Accumulated other comprehensive loss (“AOCL”), net of tax: (dollars in thousands) FOREIGN CURRENCY TRANSLATION ADJUSTMENT UNREALIZED LOSSES ON DERIVATIVES ACCUMULATED OTHER COMPREHENSIVE LOSS Balances as of December 28, 2014 $ (58,149 ) $ (2,393 ) $ (60,542 ) Other comprehensive loss, net of tax (51,644 ) (3,168 ) (54,812 ) Balances as of June 28, 2015 $ (109,793 ) $ (5,561 ) $ (115,354 ) |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table presents the fair value and classification of the Company’s interest rate swaps: (dollars in thousands) JUNE 28, 2015 DECEMBER 28, 2014 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 6,052 $ 2,617 Accrued and other current liabilities Interest rate swaps - liability 3,065 1,307 Other long-term liabilities, net Total fair value of derivative instruments (1) $ 9,117 $ 3,924 ____________________ (1) See Note 12 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivative instruments, (loss) gain | The following table summarizes the effects of the interest rate swap on the Consolidated Statements of Operations and Comprehensive Income for the thirteen and twenty-six weeks ended June 28, 2015 : AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 28, 2015 Interest rate swaps $ 1,385 $ (5,193 ) Income tax (expense) benefit (541 ) 2,025 Net of income taxes $ 844 $ (3,168 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring and nonrecurring, valuation techniques | Fair value is categorized into one of following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of June 28, 2015 and December 28, 2014 : JUNE 28, 2015 DECEMBER 28, 2014 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 61 $ 61 $ — $ 4,602 $ 4,602 $ — Money market funds 1,133 1,133 — 7,842 7,842 — Restricted cash equivalents: Money market funds 571 571 — 3,360 3,360 — Total asset recurring fair value measurements $ 1,765 $ 1,765 $ — $ 15,804 $ 15,804 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 6,052 $ — $ 6,052 $ 2,617 $ — $ 2,617 Derivative instruments - commodities 507 — 507 566 — 566 Other long-term liabilities: Derivative instruments - interest rate swaps 3,065 — 3,065 1,307 — 1,307 Total liability recurring fair value measurements $ 9,624 $ — $ 9,624 $ 4,490 $ — $ 4,490 |
Fair value, assets measured on recurring basis, methods and assumptions | Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments Derivative instruments primarily relate to the interest rate swaps. Fair value measurements are based on a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives and uses observable market-based inputs, including interest rate curves and credit spreads. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of June 28, 2015, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. |
Fair value, assets and liabilities measured on recurring basis | The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis for the thirteen and twenty-six weeks ended June 28, 2015 : THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2015 JUNE 28, 2015 (dollars in thousands) CARRYING VALUE (1) TOTAL CARRYING VALUE (1) TOTAL Assets held for sale $ 3,353 $ 857 $ 3,353 $ 1,028 Property, fixtures and equipment — — 950 1,124 $ 3,353 $ 857 $ 4,303 $ 2,152 THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 29, 2014 JUNE 29, 2014 (dollars in thousands) CARRYING VALUE (2) TOTAL CARRYING VALUE (2) TOTAL Property, fixtures and equipment $ 2,351 $ 407 $ 2,951 $ 483 $ 2,351 $ 407 $ 2,951 $ 483 ________________ (1) Carrying value approximates fair value with all assets measured using Level 2 inputs for the thirteen and twenty-six weeks ended June 28, 2015 . A third-party market appraisal (Level 2) and a purchase contract (Level 2) were used to estimate the fair value. (2) Carrying value approximates fair value with $1.7 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the thirteen weeks ended June 29, 2014 and $2.3 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the twenty-six weeks ended June 29, 2014 . |
Schedule of carrying value and fair value of senior secured credit facilities, CMBS loan and other unsecured debt | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of June 28, 2015 and December 28, 2014 : JUNE 28, 2015 DECEMBER 28, 2014 FAIR VALUE FAIR VALUE (dollars in thousands) CARRYING VALUE LEVEL 2 LEVEL 3 CARRYING VALUE LEVEL 2 LEVEL 3 Senior Secured Credit Facility: Term loan A $ 285,000 $ 283,931 $ — $ 296,250 $ 294,769 $ — Term loan B — — — 225,000 222,188 — Revolving credit facility 570,000 565,725 — 325,000 322,563 — CMBS loan: Mortgage loan 293,921 — 300,477 299,765 — 308,563 First mezzanine loan 84,579 — 84,639 85,127 — 85,187 Second mezzanine loan 85,707 — 86,624 86,067 — 86,988 Other notes payable 1,506 — 1,468 2,722 — 2,625 |
Fair value, financial instruments measured on nonrecurring basis, valuation techniques | Fair value of debt is determined based on the following: DEBT FACILITY METHODS AND ASSUMPTIONS Senior Secured Credit Facility Quoted market prices in inactive markets. CMBS loan Assumptions derived from current conditions in the real estate and credit markets, changes in the underlying collateral and expectations of management. Other notes payable Discounted cash flow approach. Discounted cash flow inputs primarily include cost of debt rates which are used to derive the present value factors for the determination of fair value. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Following is a summary of reporting segments: SEGMENT CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America, including Puerto Rico Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse (1) South Korea, Brazil, Hong Kong, China Carrabba’s Italian Grill (Abbraccio) Brazil ________________ (1) Includes international franchise locations in 18 countries and Guam. |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenue by segment: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Total revenues U.S. $ 982,978 $ 967,043 $ 2,044,992 $ 1,977,669 International 116,619 143,869 256,664 291,102 Total revenues $ 1,099,597 $ 1,110,912 $ 2,301,656 $ 2,268,771 |
Reconciliation of operating profit from segments to consolidated | The following table is a reconciliation of Segment income from operations to Income before provision for income taxes: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Segment income from operations U.S. $ 93,265 $ 81,268 $ 220,673 $ 188,169 International 5,727 8,282 14,606 24,507 Total segment income from operations 98,992 89,550 235,279 212,676 Unallocated corporate operating expense (36,407 ) (27,159 ) (74,993 ) (60,259 ) Total income from operations 62,585 62,391 160,286 152,417 Loss on extinguishment and modification of debt (2,638 ) (11,092 ) (2,638 ) (11,092 ) Other income (expense), net 57 317 (1,090 ) 153 Interest expense, net (12,867 ) (15,109 ) (26,065 ) (31,707 ) Income before provision for income taxes $ 47,137 $ 36,507 $ 130,493 $ 109,771 |
Reconciliation of segment depreciation and amortization | The following table is a summary of Depreciation and amortization expense by segment: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2015 JUNE 29, 2014 JUNE 28, 2015 JUNE 29, 2014 Depreciation and amortization U.S. $ 37,670 $ 37,236 $ 74,385 $ 73,009 International 6,690 7,430 13,526 14,273 Corporate 3,015 3,961 5,950 7,510 Total depreciation and amortization $ 47,375 $ 48,627 $ 93,861 $ 94,792 |
Description of the Business a37
Description of the Business and Basis of Presentation Description of Business (Details) | Jun. 28, 2015Restaurant_concepts |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of restaurant concepts in portfolio | 4 |
Disposals, Exit Costs and Acq38
Disposals, Exit Costs and Acquisitions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Jun. 28, 2015USD ($)locations | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($)locations | Jun. 29, 2014USD ($) | Jan. 26, 2015USD ($) | Dec. 28, 2014locations | Dec. 31, 2013locations | Nov. 01, 2013USD ($) | ||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Provision for impaired assets and restaurant closings | $ 900 | $ 1,025 | $ 10,033 | $ 7,089 | |||||||||
(Gain) loss on disposal of Roy's | (1,097) | 0 | |||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 10.00% | ||||||||||||
Purchase of noncontrolling interests, purchase price | 652 | 17,211 | |||||||||||
Purchase of Redeemable noncontrolling interests | [1] | 459 | |||||||||||
Net decrease in Bloomin' Brands equity for purchase of noncontrolling interests | 229 | 10,692 | |||||||||||
Decrease in restricted cash | 31,694 | 13,556 | |||||||||||
Additional Paid-in Capital [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Net decrease in Bloomin' Brands equity for purchase of noncontrolling interests | 229 | 11,928 | |||||||||||
Non-controlling interests [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Net decrease in Bloomin' Brands equity for purchase of noncontrolling interests | $ 0 | (1,236) | |||||||||||
Brazilian Joint Venture [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Purchase of noncontrolling interests, purchase price | $ 700 | ||||||||||||
Purchase of Redeemable noncontrolling interests | 500 | ||||||||||||
Brazilian Joint Venture [Member] | Additional Paid-in Capital [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Net decrease in Bloomin' Brands equity for purchase of noncontrolling interests | $ 200 | ||||||||||||
PGS Participações Ltda. [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 80.00% | ||||||||||||
Bloomin' Brands, Inc. [Member] | Brazilian Joint Venture [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition, percentage | 90.25% | 90.25% | 90.00% | ||||||||||
Replacement reserve escrow | $ 7,900 | ||||||||||||
Former Equity Holders, PGS Par [Member] | Brazilian Joint Venture [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Replacement reserve escrow | $ 7,900 | ||||||||||||
Provision for impaired assets and restaurant closings [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Impairment losses | $ 857 | 407 | $ 2,152 | 483 | |||||||||
Restaurant closure expenses | $ 43 | 618 | $ 7,881 | 6,606 | |||||||||
International Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Number of restaurants | locations | 36 | ||||||||||||
Number of restaurants closed | locations | 35 | 35 | |||||||||||
Domestic Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Number of restaurants | locations | 22 | ||||||||||||
Restaurant Closure Initiatives [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | $ (63) | 0 | $ 8,807 | 4,929 | |||||||||
Roy's divestiture [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Disposal group, including discontinued operation, consideration | $ 10,000 | ||||||||||||
Restaurant sales | 0 | 17,472 | 5,729 | 36,401 | |||||||||
Income (loss) before provision for income taxes | 327 | [2] | 113 | (641) | [2] | 568 | |||||||
Roy's divestiture [Member] | Other (expense) income, net [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
(Gain) loss on disposal of Roy's | (300) | 800 | |||||||||||
Corporate Aircraft [Member] | Provision for impaired assets and restaurant closings [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Impairment losses | 700 | ||||||||||||
Indemnification agreement [Member] | Roy's divestiture [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Loss contingency, range of possible loss, maximum | $ 5,000 | ||||||||||||
Facility closing [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring reserve, beginning of the period | 11,000 | ||||||||||||
Restructuring charges | 8,634 | ||||||||||||
Payments for restructuring | (10,022) | ||||||||||||
Restructuring reserve, accrual adjustment | [3] | (753) | |||||||||||
Restructuring reserve, end of the period | [4] | 8,859 | 8,859 | ||||||||||
Facility closing [Member] | International Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring and related cost, expected cost | 1,000 | $ 1,000 | |||||||||||
Lease expiration date, International Restaurant Closure Initiative | Aug. 26, 2022 | ||||||||||||
Facility closing [Member] | Restaurant Closure Initiatives [Member] | Provision for impaired assets and restaurant closings [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | (309) | 0 | $ 7,432 | 5,972 | |||||||||
Facility closing [Member] | Accrued and other current liabilities [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring reserve, current | 2,500 | 2,500 | |||||||||||
Facility closing [Member] | Other long-term liabilities, net [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring reserve, noncurrent | 6,400 | 6,400 | |||||||||||
Employee severance [Member] | Restaurant Closure Initiatives [Member] | General and administrative expense [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | 246 | 0 | 1,573 | 1,035 | |||||||||
Contract termination [Member] | Restaurant Closure Initiatives [Member] | Other restaurant operating [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | 0 | $ 0 | (198) | (2,078) | |||||||||
Minimum [Member] | Facility closing [Member] | International Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Effect on future cash flows, amount | 5,000 | ||||||||||||
Maximum [Member] | Facility closing [Member] | International Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Effect on future cash flows, amount | 7,000 | ||||||||||||
International segment [Member] | International Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | $ (300) | 6,100 | |||||||||||
U.S. segment [Member] | Facility closing [Member] | Domestic Restaurant Closure Initiative [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Restructuring costs | $ 1,300 | $ 6,000 | |||||||||||
Subsequent event [Member] | Brazilian Joint Venture [Member] | Non-controlling interests [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Contributions from noncontrolling interests | $ 3,200 | ||||||||||||
Subsequent event [Member] | Bloomin' Brands, Inc. [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Decrease in restricted cash | 7,900 | ||||||||||||
Subsequent event [Member] | Former Equity Holders, PGS Par [Member] | |||||||||||||
Income statement, balance sheet and additional disclosures by disposal groups, including discontinued operations [Line Items] | |||||||||||||
Decrease in restricted cash | $ 7,900 | ||||||||||||
[1] | In April 2015, certain equity holders of PGS Par exercised options to sell their remaining interests in the Brazil Joint Venture. See Note 2 - Disposals, Exit Costs and Acquisitions for further information. | ||||||||||||
[2] | Includes (gain) loss on sale of ($0.3) million and $0.8 million during the thirteen and twenty-six weeks ended June 28, 2015, respectively. | ||||||||||||
[3] | Adjustments to facility closure and other costs represent changes in sublease assumptions and the impact of lease settlements on the Company’s remaining lease obligations. | ||||||||||||
[4] | As of June 28, 2015, the Company had exit-related accruals of $2.5 million recorded in Accrued and other current liabilities and $6.4 million recorded in Other long-term liabilities, net. |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Schedule of earnings per share, basic and diluted [Line Items] | ||||
Net income attributable to Bloomin’ Brands | $ 32,226 | $ 26,391 | $ 92,814 | $ 80,124 |
Basic weighted average common shares outstanding | 123,046 | 125,229 | 124,174 | 124,889 |
Effect of diluted securities: | ||||
Diluted weighted average common shares outstanding | 126,242 | 128,378 | 127,501 | 128,115 |
Basic earnings per share (usd per share) | $ 0.26 | $ 0.21 | $ 0.75 | $ 0.64 |
Diluted earnings per share (usd per share) | $ 0.26 | $ 0.21 | $ 0.73 | $ 0.63 |
Stock options [Member] | ||||
Effect of diluted securities: | ||||
Dilutive shares | 3,025 | 3,051 | 3,123 | 3,121 |
Nonvested restricted stock and restricted stock units [Member] | ||||
Effect of diluted securities: | ||||
Dilutive shares | 171 | 98 | 201 | 105 |
Nonvested performance-based share units [Member] | ||||
Effect of diluted securities: | ||||
Dilutive shares | 0 | 0 | 3 | 0 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Stock options [Member] | ||||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of earnings per share | 2,899 | 2,688 | 2,510 | 2,307 |
Nonvested restricted stock and restricted stock units [Member] | ||||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of earnings per share | 26 | 174 | 43 | 197 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 5,233 | $ 4,264 | $ 9,818 | $ 7,839 | |
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 1.2 | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | [1] | 1.64% | |||
Share-based compensation arrangement by share-based payment award, fair value assumptions, dividend yield | [2] | 1.00% | |||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | [3] | 6 years 3 months | |||
Share-based compensation arrangement by share-based payment award, fair value assumptions, weighted-average volatility rate | [4] | 43.40% | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted-average grant date fair value per share | $ 10.11 | ||||
Share-based compensation, nonvested awards, compensation not yet recognized, stock options | 27,808 | $ 27,808 | |||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 2,552 | 3,098 | $ 4,979 | 5,566 | |
Share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition in years | 2 years 11 months 5 days | ||||
Restricted stock and restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 1,741 | 989 | $ 3,150 | 1,738 | |
Share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition in years | 3 years 2 months | ||||
Share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options | 20,839 | $ 20,839 | |||
Nonvested performance-based share units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 940 | $ 177 | $ 1,689 | $ 535 | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.2 | ||||
Share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition in years | 8 months 6 days | ||||
Share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options | $ 2,548 | $ 2,548 | |||
Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.4 | ||||
[1] | Risk-free rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the contractual life of the option. | ||||
[2] | Dividend yield is the level of dividends expected be paid on the Company’s common stock over the expected term of the option. | ||||
[3] | Expected term represents the period of time that the options are expected to be outstanding. The simplified method of estimating the expected term is used since the Company does not have significant historical exercise experience for its stock options. | ||||
[4] | Volatility for the twenty-six weeks ended June 28, 2015 is based on the historical volatilities of the Company’s stock and the stock of comparable peer companies. |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Prepaid expenses | $ 26,856 | $ 30,260 |
Other current assets, net | 18,578 | 40,691 |
Total other current assets, net | 108,993 | 206,628 |
Accounts receivable - vendors, net [Member] | ||
Accounts receivable, net | 23,593 | 27,340 |
Accounts receivable - franchisees, net [Member] | ||
Accounts receivable, net | 1,865 | 1,159 |
Accounts receivable - other, net [Member] | ||
Accounts receivable, net | $ 38,101 | $ 107,178 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets, Net Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 28, 2015USD ($) | |
Goodwill [Line Items] | |
Balance as of December 28, 2014 | $ 341,540 |
Goodwill, translation adjustments | (23,334) |
Balance as of June 28, 2015 | 318,206 |
U.S. segment [Member] | |
Goodwill [Line Items] | |
Balance as of December 28, 2014 | 172,711 |
Goodwill, translation adjustments | 0 |
Balance as of June 28, 2015 | 172,711 |
International segment [Member] | |
Goodwill [Line Items] | |
Balance as of December 28, 2014 | 168,829 |
Goodwill, translation adjustments | (23,334) |
Balance as of June 28, 2015 | $ 145,495 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets, Net Goodwill Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued and Other Current Lia45
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Payables and Accruals [Abstract] | ||
Accrued payroll and other compensation | $ 94,690 | $ 121,548 |
Accrued insurance | 22,122 | 19,455 |
Other current liabilities | 91,801 | 96,841 |
Accrued and other current liabilities | $ 208,613 | $ 237,844 |
Accrued and Other Current Lia46
Accrued and Other Current Liabilities Accrued Payroll Taxes (Details) - Internal Revenue Service (IRS) [Member] - Employer's share of FICA taxes [Member] - USD ($) $ in Millions | 1 Months Ended | ||
May. 31, 2015 | Jun. 28, 2015 | Dec. 28, 2014 | |
Accrued and other current liabilities [Member] | |||
Schedule Of Accrued Liabilities And Other Liabilities Current [Line Items] | |||
Loss contingency, accrual, current | $ 9.3 | $ 12 | |
Tax year 2011 [Member] | |||
Schedule Of Accrued Liabilities And Other Liabilities Current [Line Items] | |||
Taxing authority audit adjustment | $ 3.3 |
Long-term Debt, Net (Schedule o
Long-term Debt, Net (Schedule of Long-term Debt, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | ||
Debt instrument [Line Items] | ||||||
Capital lease obligations | $ 2,716 | $ 2,716 | $ 634 | |||
Total debt and capital lease obligations | 1,324,791 | 1,324,791 | 1,321,916 | |||
Current portion of long-term debt | (25,602) | (25,602) | (25,964) | |||
Debt instrument, unamortized discount | (3,874) | (3,874) | (6,073) | |||
Total long-term debt and capital lease obligations | 1,295,315 | 1,295,315 | 1,289,879 | |||
2012 CMBS loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | 464,207 | 464,207 | 470,959 | |||
Secured debt [Member] | Senior Secured Credit Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | 855,000 | 855,000 | 846,250 | |||
Secured debt [Member] | Term Loan A Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | 285,000 | 285,000 | 296,250 | |||
Secured debt [Member] | Term Loan B Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | $ 0 | $ 0 | $ 225,000 | |||
Debt instrument, interest rate at period end | 0.00% | 0.00% | 3.50% | |||
Secured debt [Member] | Revolving Credit Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 570,000 | $ 570,000 | $ 325,000 | |||
Mortgage [Member] | First mortgage loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | 293,921 | 293,921 | 299,765 | |||
Mezzanine mortgage debt [Member] | First mezzanine loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | $ 84,579 | $ 84,579 | $ 85,127 | |||
Debt instrument, interest rate at period end | 9.00% | 9.00% | 9.00% | |||
Mezzanine mortgage debt [Member] | Second mezzanine loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt | $ 85,707 | $ 85,707 | $ 86,067 | |||
Debt instrument, interest rate at period end | 11.25% | 11.25% | 11.25% | |||
Unsecured debt [Member] | Notes payable, other payables [Member] | ||||||
Debt instrument [Line Items] | ||||||
Other long-term debt, noncurrent | [1] | $ 2,868 | $ 2,868 | $ 4,073 | ||
Debt instrument, interest rate, stated percentage rate range, minimum | [1] | 0.73% | 0.52% | |||
Debt instrument, interest rate, stated percentage rate range, maximum | [1] | 7.60% | 7.00% | |||
Weighted average [Member] | Secured debt [Member] | Term Loan A Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | [2] | 2.17% | 2.17% | 2.16% | ||
Weighted average [Member] | Secured debt [Member] | Revolving Credit Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | [2] | 2.16% | 2.16% | 2.16% | ||
Weighted average [Member] | Mortgage [Member] | First mortgage loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | [2] | 4.11% | 4.11% | 4.08% | ||
Loss on extinguishment and modification of debt [Member] | Senior Secured Credit Facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Write off of deferred debt issuance cost | $ 1,400 | $ 5,500 | $ 1,400 | $ 5,500 | ||
Extinguishment of debt, write off of debt discount | $ 1,200 | 4,900 | $ 1,200 | 4,900 | ||
Payments of debt extinguishment costs, prepayment premium | $ 700 | $ 700 | ||||
[1] | Balance is comprised of sale-leaseback obligations and uncollateralized notes payable. Interest rates presented relate to the notes payable. | |||||
[2] | Represents the weighted-average interest rate for the respective period. |
Long-term Debt, Net (Details)
Long-term Debt, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Mar. 31, 2015 | |||||
Debt instrument [Line Items] | |||||||||
Loss on extinguishment and modification of debt | $ (2,638) | $ (11,092) | $ (2,638) | $ (11,092) | |||||
Secured debt [Member] | Revolving Credit Facility [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | ||||||||
Letters of credit outstanding, amount | 29,600 | $ 29,600 | |||||||
Secured debt [Member] | Letter of credit [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Letters of credit fee, percentage | 2.13% | ||||||||
Revolving Credit Facility [Member] | Secured debt [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000 | ||||||||
Revolving Credit Facility [Member] | Secured debt [Member] | Amended Credit Agreement [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 825,000 | ||||||||
Senior Secured Credit Facility [Member] | Loss on extinguishment and modification of debt [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Loss on extinguishment and modification of debt | (2,638) | [1] | (11,092) | [2] | $ (2,638) | [1] | (11,092) | [2] | |
Write off of deferred debt issuance cost | 1,400 | 5,500 | 1,400 | 5,500 | |||||
Extinguishment of debt, write off of debt discount | 1,200 | 4,900 | 1,200 | 4,900 | |||||
Payments of debt extinguishment costs, prepayment premium | $ 700 | $ 700 | |||||||
Other assets, net [Member] | Senior Secured Credit Facility [Member] | |||||||||
Debt instrument [Line Items] | |||||||||
Deferred finance costs, gross | $ 1,200 | $ 1,200 | |||||||
[1] | The loss was comprised of the write-off of $1.4 million of deferred financing fees and the write-off of $1.2 million of unamortized debt discount. | ||||||||
[2] | The loss was comprised of the write-off of $5.5 million of deferred financing fees, the write-off of $4.9 million of unamortized debt discount and a prepayment penalty of $0.7 million. |
Redeemable Noncontrolling Int49
Redeemable Noncontrolling Interests (Details) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015USD ($) | ||
Redeemable Noncontrolling Interests [Abstract] | ||
Balance, beginning of period | $ 24,733 | |
Net income attributable to Redeemable noncontrolling interests | 196 | |
Purchase of Redeemable noncontrolling interests | [1] | (459) |
Balance, end of period | 24,470 | |
Change in redemption value of noncontrolling interests | $ 0 | |
[1] | In April 2015, certain equity holders of PGS Par exercised options to sell their remaining interests in the Brazil Joint Venture. See Note 2 - Disposals, Exit Costs and Acquisitions for further information. |
Stockholders' Equity (Secondary
Stockholders' Equity (Secondary Public Offering) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | [1] | Jun. 28, 2015 | |
Secondary Public Offering [Line Items] | |||||
Stock repurchased and retired during period, shares | 1,370,000 | 2,759,000 | 4,129,000 | ||
Stock repurchased and retired during period, value | $ 30,000 | $ 70,000 | $ 100,000 | ||
Secondary public offering [Member] | Bain Capital [Member] | Share repurchase [Member] | |||||
Secondary Public Offering [Line Items] | |||||
Stock repurchased and retired during period, shares | 2,759,164 | ||||
Stock repurchased and retired during period, value | $ 70,000 | ||||
[1] | Includes the repurchase of $70.0 million of the Company’s common stock in connection with the secondary public offering by Bain Capital in March 2015. |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 31, 2015 | Mar. 31, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | [1] | Jun. 28, 2015 | Aug. 01, 2015 | Dec. 28, 2014 | |
Share Repurchase Program [Line Items] | ||||||||
Stock repurchased and retired during period, shares | 1,370,000 | 2,759,000 | 4,129,000 | |||||
Stock repurchase program, average price paid, per share | $ 21.90 | $ 25.37 | $ 24.22 | |||||
Stock repurchased and retired during period, value | $ 30,000 | $ 70,000 | $ 100,000 | |||||
Share repurchase [Member] | Bain Capital [Member] | Secondary public offering [Member] | ||||||||
Share Repurchase Program [Line Items] | ||||||||
Stock repurchased and retired during period, shares | 2,759,164 | |||||||
Stock repurchased and retired during period, value | $ 70,000 | |||||||
2014 Share Repurchase Program [Member] | ||||||||
Share Repurchase Program [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 100,000 | |||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 0 | 0 | ||||||
Subsequent event [Member] | 2015 Share Repurchase Program [Member] | ||||||||
Share Repurchase Program [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 100,000 | |||||||
Stock repurchased and retired during period, shares | 0 | |||||||
Stock repurchase program expiration date | Feb. 3, 2017 | |||||||
[1] | Includes the repurchase of $70.0 million of the Company’s common stock in connection with the secondary public offering by Bain Capital in March 2015. |
Stockholders' Equity (Dividend)
Stockholders' Equity (Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Dividends Payable [Line Items] | ||||||
Common stock, dividends, per share, cash paid | $ 0.06 | $ 0.06 | $ 0.12 | |||
Dividends, common stock, cash | $ 7,391 | $ 7,423 | $ 14,814 | |||
Common stock, dividends per share | $ 0.06 | $ 0 | $ 0.12 | $ 0 | ||
Subsequent event [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Common stock, dividends per share | $ 0.06 | |||||
Dividends payable, date to be paid | Aug. 28, 2015 | |||||
Dividends payable, date of record | Aug. 18, 2015 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balances as of December 28, 2014 | $ (60,542) | |
Other comprehensive loss, net of tax | (54,812) | $ 13,723 |
Balances as of June 28, 2015 | (115,354) | |
Accumulated translation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balances as of December 28, 2014 | (58,149) | |
Other comprehensive loss, net of tax | (51,644) | |
Balances as of June 28, 2015 | (109,793) | |
Accumulated net loss from designated or qualifying cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balances as of December 28, 2014 | (2,393) | |
Other comprehensive loss, net of tax | (3,168) | |
Balances as of June 28, 2015 | $ (5,561) |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities (Details) $ in Thousands | Sep. 09, 2014USD ($)counterparties | Jun. 28, 2015USD ($)counterparties | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($)counterparties | Jun. 29, 2014USD ($) | Jun. 26, 2016USD ($) | Dec. 28, 2014USD ($) | |
Derivative [Line Items] | ||||||||
Other comprehensive loss, unrealized loss on derivatives, net of tax | $ 844 | $ 0 | $ (3,168) | $ 0 | ||||
Interest rate swap [Member] | Designated as hedging instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, inception date | Sep. 9, 2014 | |||||||
Derivative agreements, number of counterparties | counterparties | 8 | |||||||
Derivative, notional amount | $ 400,000 | |||||||
Derivative, effective date | Jun. 30, 2015 | |||||||
Derivative, maturity date | May 16, 2019 | |||||||
Derivative, average fixed interest rate | 2.02% | |||||||
Derivative, interest rate swaps, liabilities, fair value | [1] | 9,117 | 9,117 | $ 3,924 | ||||
Accrued interest expense, interest rate swaps | 0 | 0 | ||||||
Derivative, net hedge ineffectiveness gain (loss) | 0 | 0 | ||||||
Other comprehensive (loss) income, unrealized (loss) gain on derivatives arising during period, before tax | 1,385 | (5,193) | ||||||
Other comprehensive (loss) income, unrealized (loss) gains on derivatives arising during period, tax | (541) | 2,025 | ||||||
Other comprehensive loss, unrealized loss on derivatives, net of tax | $ 844 | $ (3,168) | ||||||
Number of derivatives with each counterparty | counterparties | 1 | 1 | ||||||
Derivative, net liability position, aggregate fair value | $ 9,300 | $ 9,300 | ||||||
Interest rate swap [Member] | Designated as hedging instrument [Member] | Interest expense [Member] | Scenario, forecast [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative instruments, reclassification from AOCI to income, estimated | $ 6,400 | |||||||
Interest rate swap [Member] | Designated as hedging instrument [Member] | Accrued and other current liabilities [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, interest rate swaps, liabilities, fair value | 6,052 | 6,052 | 2,617 | |||||
Interest rate swap [Member] | Designated as hedging instrument [Member] | Other long-term liabilities, net [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, interest rate swaps, liabilities, fair value | $ 3,065 | $ 3,065 | $ 1,307 | |||||
Interest rate swap [Member] | Designated as hedging instrument [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, variable interest rate | 30-day LIBOR | |||||||
[1] | See Note 12 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | ||||||
2012 CMBS loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | $ 464,207 | $ 464,207 | $ 470,959 | |||||||
Secured debt [Member] | Term Loan A Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | 285,000 | 285,000 | 296,250 | |||||||
Secured debt [Member] | Term Loan B Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | 0 | 0 | 225,000 | |||||||
Secured debt [Member] | Revolving Credit Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Line of credit facility, amount outstanding | 570,000 | 570,000 | 325,000 | |||||||
Mortgage [Member] | 2012 CMBS first mortgage loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | 293,921 | 293,921 | 299,765 | |||||||
Mezzanine mortgage debt [Member] | First mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | 84,579 | 84,579 | 85,127 | |||||||
Mezzanine mortgage debt [Member] | Second mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Long-term debt | 85,707 | 85,707 | 86,067 | |||||||
Unsecured debt [Member] | Notes payable, other payables [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Other notes payable | 1,506 | 1,506 | 2,722 | |||||||
Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets at fair value | 1,765 | 1,765 | 15,804 | |||||||
Liabilities at fair value | 0 | 0 | 0 | |||||||
Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets at fair value | 0 | 0 | 0 | |||||||
Liabilities at fair value | 9,624 | 9,624 | 4,490 | |||||||
Fair value, inputs, level 2 [Member] | Secured debt [Member] | Term Loan A Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 283,931 | 283,931 | 294,769 | |||||||
Fair value, inputs, level 2 [Member] | Secured debt [Member] | Term Loan B Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 222,188 | |||||||
Fair value, inputs, level 2 [Member] | Secured debt [Member] | Revolving Credit Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 565,725 | 565,725 | 322,563 | |||||||
Fair value, inputs, level 2 [Member] | Mortgage [Member] | 2012 CMBS first mortgage loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 2 [Member] | Mezzanine mortgage debt [Member] | First mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 2 [Member] | Mezzanine mortgage debt [Member] | Second mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 2 [Member] | Unsecured debt [Member] | Notes payable, other payables [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Notes payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 3 [Member] | Secured debt [Member] | Term Loan A Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 3 [Member] | Secured debt [Member] | Term Loan B Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 3 [Member] | Secured debt [Member] | Revolving Credit Facility [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 0 | 0 | 0 | |||||||
Fair value, inputs, level 3 [Member] | Mortgage [Member] | 2012 CMBS first mortgage loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 300,477 | 300,477 | 308,563 | |||||||
Fair value, inputs, level 3 [Member] | Mezzanine mortgage debt [Member] | First mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 84,639 | 84,639 | 85,187 | |||||||
Fair value, inputs, level 3 [Member] | Mezzanine mortgage debt [Member] | Second mezzanine loan [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans payable, fair value disclosure | 86,624 | 86,624 | 86,988 | |||||||
Fair value, inputs, level 3 [Member] | Unsecured debt [Member] | Notes payable, other payables [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Notes payable, fair value disclosure | 1,468 | 1,468 | 2,625 | |||||||
Provision for impaired assets and restaurant closings [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment losses | 857 | $ 407 | 2,152 | $ 483 | ||||||
Provision for impaired assets and restaurant closings [Member] | Fair value, measurements, nonrecurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment losses | 857 | 407 | 2,152 | 483 | ||||||
Provision for impaired assets and restaurant closings [Member] | Fair value, measurements, nonrecurring [Member] | Assets held-for-sale [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment of long-lived assets to be disposed of | 857 | 1,028 | ||||||||
Provision for impaired assets and restaurant closings [Member] | Fair value, measurements, nonrecurring [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Property, fixtures and equipment, impairment | 0 | 407 | 1,124 | 483 | ||||||
Assets measured with impairment, quarter-to-date [Member] | Fair value, inputs, level 2 [Member] | Assets held-for-sale [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 3,353 | 3,353 | ||||||||
Assets measured with impairment, quarter-to-date [Member] | Fair value, inputs, level 2 [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 0 | 1,700 | [1] | 0 | 1,700 | [1] | ||||
Assets measured with impairment, quarter-to-date [Member] | Fair value, inputs, level 3 [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | [1] | 600 | 600 | |||||||
Assets measured with impairment, year-to-date [Member] | Fair value, inputs, level 2 [Member] | Assets held-for-sale [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 3,353 | 3,353 | ||||||||
Assets measured with impairment, year-to-date [Member] | Fair value, inputs, level 2 [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 950 | 2,300 | [1] | 950 | 2,300 | [1] | ||||
Assets measured with impairment, year-to-date [Member] | Fair value, inputs, level 3 [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | [1] | 600 | 600 | |||||||
Fixed income funds [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 61 | 61 | 4,602 | |||||||
Fixed income funds [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 0 | 0 | 0 | |||||||
Money market funds [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 1,133 | 1,133 | 7,842 | |||||||
Restricted cash equivalents, fair value disclosure | 571 | 571 | 3,360 | |||||||
Money market funds [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 0 | 0 | 0 | |||||||
Restricted cash equivalents, fair value disclosure | 0 | 0 | 0 | |||||||
Commodity [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 0 | 0 | 0 | |||||||
Commodity [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 507 | 507 | 566 | |||||||
Interest rate swap [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 0 | 0 | 0 | |||||||
Interest rate swap [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 6,052 | 6,052 | 2,617 | |||||||
Interest rate swap [Member] | Other long-term liabilities, net [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Financial liabilities fair value disclosure | 0 | 0 | 0 | |||||||
Interest rate swap [Member] | Other long-term liabilities, net [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Financial liabilities fair value disclosure | 3,065 | 3,065 | 1,307 | |||||||
Reported value measurement [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets at fair value | 1,765 | 1,765 | 15,804 | |||||||
Liabilities at fair value | 9,624 | 9,624 | 4,490 | |||||||
Reported value measurement [Member] | Assets measured with impairment, quarter-to-date [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 3,353 | 2,351 | 3,353 | 2,351 | ||||||
Reported value measurement [Member] | Assets measured with impairment, quarter-to-date [Member] | Assets held-for-sale [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | [1] | 3,353 | 3,353 | |||||||
Reported value measurement [Member] | Assets measured with impairment, quarter-to-date [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 0 | [1] | 2,351 | [2] | 0 | [1] | 2,351 | [2] | ||
Reported value measurement [Member] | Assets measured with impairment, year-to-date [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 4,303 | 2,951 | 4,303 | 2,951 | ||||||
Reported value measurement [Member] | Assets measured with impairment, year-to-date [Member] | Assets held-for-sale [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | [1] | 3,353 | 3,353 | |||||||
Reported value measurement [Member] | Assets measured with impairment, year-to-date [Member] | Property, plant and equipment [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, fair value disclosure, nonrecurring | 950 | [1] | $ 2,951 | [2] | 950 | [1] | $ 2,951 | [2] | ||
Reported value measurement [Member] | Fixed income funds [Member] | Fair value, measurements, recurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 61 | 61 | 4,602 | |||||||
Reported value measurement [Member] | Money market funds [Member] | Fair value, measurements, recurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash and cash equivalents, fair value disclosure | 1,133 | 1,133 | 7,842 | |||||||
Restricted cash equivalents, fair value disclosure | 571 | 571 | 3,360 | |||||||
Reported value measurement [Member] | Commodity [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 507 | 507 | 566 | |||||||
Reported value measurement [Member] | Interest rate swap [Member] | Accrued and other current liabilities [Member] | Fair value, measurements, recurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Derivative liability, current | 6,052 | 6,052 | 2,617 | |||||||
Reported value measurement [Member] | Interest rate swap [Member] | Other long-term liabilities, net [Member] | Fair value, measurements, recurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Financial liabilities fair value disclosure | $ 3,065 | $ 3,065 | $ 1,307 | |||||||
[1] | Carrying value approximates fair value with all assets measured using Level 2 inputs for the thirteen and twenty-six weeks ended June 28, 2015. A third-party market appraisal (Level 2) and a purchase contract (Level 2) were used to estimate the fair value. | |||||||||
[2] | Carrying value approximates fair value with $1.7 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the thirteen weeks ended June 29, 2014 and $2.3 million and $0.6 million measured using Level 2 and Level 3 inputs, respectively, for the twenty-six weeks ended June 29, 2014. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 29.90% | 24.10% | 27.10% | 24.60% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Oct. 04, 2013 - Pending litigation [Member] | employeesubsidiaries |
Employee [Member] | |
Other Commitments [Line Items] | |
Number of employees party to lawsuit | 2 |
Subsidiaries [Member] | |
Other Commitments [Line Items] | |
Loss contingency, number of defendants | subsidiaries | 2 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015USD ($)franchisee | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($)franchisee | Jun. 29, 2014USD ($) | |
Segment reporting information [Line Items] | ||||
Number of reportable segments | 2 | |||
Revenues | $ 1,099,597 | $ 1,110,912 | $ 2,301,656 | $ 2,268,771 |
International segment [Member] | ||||
Segment reporting information [Line Items] | ||||
Revenues | $ 116,619 | $ 143,869 | 256,664 | $ 291,102 |
Intersegment eliminations [Member] | ||||
Segment reporting information [Line Items] | ||||
Revenues | $ 0 | |||
Franchised units [Member] | International segment [Member] | ||||
Segment reporting information [Line Items] | ||||
Number of countries in which entity operates | franchisee | 18 | 18 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 1,099,597 | $ 1,110,912 | $ 2,301,656 | $ 2,268,771 |
U.S. segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 982,978 | 967,043 | 2,044,992 | 1,977,669 |
International segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 116,619 | $ 143,869 | $ 256,664 | $ 291,102 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ 62,585 | $ 62,391 | $ 160,286 | $ 152,417 |
Loss on extinguishment and modification of debt | (2,638) | (11,092) | (2,638) | (11,092) |
Other income (expense), net | 57 | 317 | (1,090) | 153 |
Interest expense, net | (12,867) | (15,109) | (26,065) | (31,707) |
Income before provision for income taxes | 47,137 | 36,507 | 130,493 | 109,771 |
Operating segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 98,992 | 89,550 | 235,279 | 212,676 |
Corporate, non-segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | (36,407) | (27,159) | (74,993) | (60,259) |
U.S. segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 93,265 | 81,268 | 220,673 | 188,169 |
International segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ 5,727 | $ 8,282 | $ 14,606 | $ 24,507 |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 47,375 | $ 48,627 | $ 93,861 | $ 94,792 |
U.S. segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 37,670 | 37,236 | 74,385 | 73,009 |
International segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 6,690 | 7,430 | 13,526 | 14,273 |
Corporate, non-segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 3,015 | $ 3,961 | $ 5,950 | $ 7,510 |