Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 26, 2017 | Apr. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 26, 2017 | |
Entity Registrant Name | Bloomin' Brands, Inc. | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,232,042 | |
Entity Central Index Key | 1,546,417 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 98,383 | $ 127,176 |
Current portion of restricted cash and cash equivalents | 805 | 7,886 |
Inventories | 52,262 | 65,231 |
Other current assets, net | 89,850 | 190,226 |
Total current assets | 241,300 | 390,519 |
Restricted cash | 0 | 1,124 |
Long-term portion of assets held for sale | 36,402 | 803 |
Property, fixtures and equipment, net | 1,194,969 | 1,237,148 |
Goodwill | 316,498 | 310,055 |
Intangible assets, net | 535,313 | 535,523 |
Deferred income tax assets | 56,104 | 38,764 |
Other assets, net | 130,390 | 128,343 |
Total assets | 2,510,976 | 2,642,279 |
Current Liabilities | ||
Accounts payable | 197,629 | 195,371 |
Accrued and other current liabilities | 216,322 | 204,415 |
Unearned revenue | 284,081 | 388,543 |
Current portion of long-term debt | 48,756 | 35,079 |
Total current liabilities | 746,788 | 823,408 |
Deferred rent | 146,882 | 151,130 |
Deferred income tax liabilities | 17,407 | 16,709 |
Long-term liabilities held for sale | 12,792 | 0 |
Long-term debt, net | 953,620 | 1,054,406 |
Deferred gain on sale-leaseback transactions, net | 186,131 | 181,696 |
Other long-term liabilities, net | 227,711 | 219,030 |
Total liabilities | 2,291,331 | 2,446,379 |
Commitments and contingencies | ||
Mezzanine Equity | ||
Redeemable noncontrolling interests | 497 | 547 |
Bloomin’ Brands Stockholders’ Equity | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 26, 2017 and December 25, 2016 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 101,480,260 and 103,922,110 shares issued and outstanding as of March 26, 2017 and December 25, 2016, respectively | 1,015 | 1,039 |
Additional paid-in capital | 1,077,473 | 1,079,583 |
Accumulated deficit | (781,673) | (786,780) |
Accumulated other comprehensive loss | (89,681) | (111,143) |
Total Bloomin’ Brands stockholders’ equity | 207,134 | 182,699 |
Noncontrolling interests | 12,014 | 12,654 |
Total stockholders’ equity | 219,148 | 195,353 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 2,510,976 | $ 2,642,279 |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Mar. 26, 2017 | Dec. 25, 2016 |
Statement of Financial Position [Abstract] | ||
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 | 101,480,260 | 103,922,110 |
Common stock, shares outstanding | 101,480,260 | 103,922,110 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Revenues | ||
Restaurant sales | $ 1,135,488 | $ 1,158,052 |
Franchise and other revenues | 8,335 | 6,136 |
Total revenues | 1,143,823 | 1,164,188 |
Costs and expenses | ||
Cost of sales | 364,748 | 375,288 |
Labor and other related | 324,398 | 322,805 |
Other restaurant operating | 247,940 | 253,571 |
Depreciation and amortization | 46,590 | 47,651 |
General and administrative | 71,941 | 75,025 |
Provision for impaired assets and restaurant closings | 19,076 | 3,164 |
Total costs and expenses | 1,074,693 | 1,077,504 |
Income from operations | 69,130 | 86,684 |
Loss on defeasance, extinguishment and modification of debt | 0 | (26,580) |
Other expense, net | (51) | (19) |
Interest expense, net | (9,141) | (12,875) |
Income before provision for income taxes | 59,938 | 47,210 |
Provision for income taxes | 15,015 | 11,327 |
Net income | 44,923 | 35,883 |
Less: net income attributable to noncontrolling interests | 1,013 | 1,408 |
Net income attributable to Bloomin’ Brands | 43,910 | 34,475 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 20,489 | (7,285) |
Unrealized gain (loss) on derivatives, net of tax | 101 | (2,735) |
Reclassification of adjustment for loss on derivatives included in Net income, net of tax | 784 | 988 |
Comprehensive income | 66,297 | 26,851 |
Less: comprehensive income attributable to noncontrolling interests | 925 | 2,106 |
Comprehensive income attributable to Bloomin’ Brands | $ 65,372 | $ 24,745 |
Earnings per share: | ||
Basic (usd per share) | $ 0.43 | $ 0.29 |
Diluted (usd per share) | $ 0.41 | $ 0.29 |
Weighted average common shares outstanding: | ||
Basic (shares) | 103,074 | 117,930 |
Diluted (shares) | 106,413 | 120,776 |
Cash dividends declared per common share | $ 0.08 | $ 0.07 |
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. 27, 2015 | 119,215,000 | ||||||
Balance at Dec. 27, 2015 | $ 421,900 | $ 1,192 | $ 1,072,861 | $ (518,360) | $ (147,367) | $ 13,574 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 35,572 | 34,475 | 1,097 | ||||
Other comprehensive income (loss), net of tax | (9,724) | (9,730) | 6 | ||||
Cash dividends declared, per common share | (8,238) | (8,238) | |||||
Repurchase and retirement of common stock, shares | (4,399,000) | ||||||
Repurchase and retirement of common stock, value | (75,000) | $ (44) | (74,956) | ||||
Stock-based compensation | 5,890 | 5,890 | |||||
Tax shortfall from stock-based compensation | (838) | (838) | |||||
Common stock issued under stock plans, shares | [1] | 209,000 | |||||
Common stock issued under stock plans, value | [1] | (1,277) | $ 2 | (1,103) | (176) | ||
Purchase of noncontrolling and limited partnership interests, net of tax | 702 | 538 | 164 | ||||
Distributions to noncontrolling interests | (2,025) | (2,025) | |||||
Contributions from noncontrolling interests | 240 | 240 | |||||
Balance (in shares) at Mar. 27, 2016 | 115,025,000 | ||||||
Balance at Mar. 27, 2016 | 367,202 | $ 1,150 | 1,069,110 | (559,017) | (157,097) | 13,056 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect from a change in accounting principle | $ 14,364 | 14,364 | |||||
Balance (in shares) at Dec. 25, 2016 | 103,922,110 | 103,922,000 | |||||
Balance at Dec. 25, 2016 | $ 195,353 | $ 1,039 | 1,079,583 | (786,780) | (111,143) | 12,654 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 44,978 | 43,910 | 1,068 | ||||
Other comprehensive income (loss), net of tax | 21,369 | 21,462 | (93) | ||||
Cash dividends declared, per common share | $ (8,254) | (8,254) | |||||
Repurchase and retirement of common stock, shares | (2,887,000) | (2,887,000) | |||||
Repurchase and retirement of common stock, value | $ (53,053) | $ (29) | (53,024) | ||||
Stock-based compensation | 5,990 | 5,990 | |||||
Common stock issued under stock plans, shares | [1] | 445,000 | |||||
Common stock issued under stock plans, value | [1] | 87 | $ 5 | 225 | (143) | ||
Purchase of noncontrolling and limited partnership interests, net of tax | (12) | (71) | 59 | ||||
Distributions to noncontrolling interests | (2,013) | (2,013) | |||||
Contributions from noncontrolling interests | $ 339 | 339 | |||||
Balance (in shares) at Mar. 26, 2017 | 101,480,260 | 101,480,000 | |||||
Balance at Mar. 26, 2017 | $ 219,148 | $ 1,015 | $ 1,077,473 | $ (781,673) | $ (89,681) | $ 12,014 | |
[1] | Net of forfeitures and shares withheld for employee taxes. |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Parenthetical - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Common stock, dividends per share | $ 0.08 | $ 0.07 |
Additional paid-in capital [Member] | ||
Purchase of limited partnership interests, deferred tax effect | $ 45 | $ 522 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Cash flows provided by operating activities: | ||
Net income | $ 44,923 | $ 35,883 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 46,590 | 47,651 |
Amortization of deferred discounts and issuance costs | 1,004 | 1,315 |
Amortization of deferred gift card sales commissions | 7,902 | 9,633 |
Provision for impaired assets and restaurant closings | 19,076 | 3,164 |
Stock-based and other non-cash compensation expense | 6,672 | 4,561 |
Deferred income tax (benefit) expense | (794) | 234 |
Loss on defeasance, extinguishment and modification of debt | 0 | 26,580 |
Recognition of deferred gain on sale-leaseback transactions | (2,897) | (551) |
Excess tax benefit from stock-based compensation | 0 | (81) |
Other non-cash items, net | 683 | (1,659) |
Change in assets and liabilities: | ||
Decrease in inventories | 11,747 | 5,806 |
Decrease in other current assets | 96,930 | 95,746 |
(Increase) decrease in other assets | (1,328) | 2,424 |
Increase in accounts payable and accrued and other current liabilities | 10,493 | 1,818 |
(Decrease) increase in deferred rent | (1,150) | 6,452 |
Decrease in unearned revenue | (104,519) | (102,963) |
Increase (decrease) in other long-term liabilities | 865 | (5,288) |
Net cash provided by operating activities | 136,197 | 130,725 |
Cash flows used in investing activities: | ||
Proceeds from disposal of property, fixtures and equipment | 3 | 2 |
Proceeds from sale-leaseback transactions, net | 38,776 | 8,459 |
Capital expenditures | (58,237) | (43,566) |
Decrease in restricted cash | 14,079 | 29,457 |
Increase in restricted cash | (5,873) | (10,128) |
Other investments, net | (1,123) | (2,777) |
Net cash used in investing activities | (12,375) | (18,553) |
Cash flows used in financing activities: | ||
Proceeds from issuance of long-term debt, net | 0 | 294,699 |
Defeasance, extinguishment and modification of debt | 0 | (478,906) |
Repayments of long-term debt | (42,878) | (9,991) |
Proceeds from borrowings on revolving credit facilities, net | 115,500 | 308,500 |
Repayments of borrowings on revolving credit facilities | (160,500) | (133,000) |
Proceeds from failed sale-leaseback transactions, net | 5,942 | 0 |
Proceeds (payment of taxes) from the exercise of share-based compensation | 230 | (1,101) |
Distributions to noncontrolling interests | (2,013) | (2,025) |
Contributions from noncontrolling interests | 339 | 326 |
Purchase of limited partnership and noncontrolling interests | (3,158) | (4,828) |
Repayments of partner deposits and accrued partner obligations | (6,367) | (4,975) |
Repurchase of common stock | (53,196) | (75,176) |
Excess tax benefit from stock-based compensation | 0 | 81 |
Cash dividends paid on common stock | (8,254) | (8,238) |
Net cash used in financing activities | (154,355) | (114,634) |
Effect of exchange rate changes on cash and cash equivalents | 1,740 | (1,041) |
Net decrease in cash and cash equivalents | (28,793) | (3,503) |
Cash and cash equivalents as of the beginning of the period | 127,176 | 132,337 |
Cash and cash equivalents as of the end of the period | 98,383 | 128,834 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 8,334 | 13,050 |
Cash paid for income taxes, net of refunds | 4,906 | 3,551 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Change in acquisition of property, fixtures and equipment included in accounts payable or capital lease liabilities | (4,139) | 7,669 |
Purchase of noncontrolling interest included in accrued and other current liabilities | $ 0 | $ (2,249) |
Description of the Business and
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 26, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands, Inc., through its subsidiaries (“Bloomin’ Brands” or the “Company”), owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Each of the Company’s concepts has additional restaurants in which it has no direct investment and are operated under franchise agreements. 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 fair financial statement presentation 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 25, 2016 . Recently Adopted Financial Accounting Standards - Effective December 26, 2016, the Company adopted Accounting Standards Update (“ASU”) 2016-09: “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU No. 2016-09”). ASU No. 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. Upon adoption, the Company made an accounting policy election to recognize forfeitures as they occur. Using the modified retrospective transition method required under the standard, the Company recorded a cumulative-effect adjustment for the adoption of ASU 2016-09 of $14.4 million for previously unrecognized excess tax benefits, which increased Deferred tax assets and reduced Accumulated deficit . The recognition of excess tax benefits and tax shortfalls in the income statement and presentation of excess tax benefits on the statement of cash flows were adopted prospectively, with no adjustments made to prior periods. The remaining provisions of ASU 2016-09 did not have a material impact on the Company’s Consolidated Financial Statements. Recently Issued Financial Accounting Standards Not Yet Adopted - In January 2017, the Financial Accounting Standards Board (“the FASB”) issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” (“ASU No. 2017-04”). ASU No. 2017-04 eliminates the second step of goodwill impairment, which requires a hypothetical purchase price allocation. Under ASU No. 2017-04, goodwill impairment will be calculated as the amount a reporting unit’s carrying value exceeds its calculated fair value. ASU No. 2017-04 will be applied prospectively and is effective for the Company in fiscal year 2020, with early adoption permitted. The Company does not expect the adoption of ASU No. 2017-04 to have a material impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations - Clarifying the Definition of a Business,” (“ASU No. 2017-01”). ASU No. 2017-01 clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects various areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU No. 2017-01 is effective for the Company in fiscal year 2018 and is not expected to have an impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash” (“ASU No. 2016-18”). ASU No. 2016-18 provides guidance on the presentation of restricted cash and restricted cash equivalents, which should now be included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the Statements of Cash Flows. ASU No. 2016-18 will be effective for the Company in fiscal year 2018, with early adoption permitted. Other than the change in presentation of restricted cash within the Statement of Cash Flows, the adoption of ASU No. 2016-18 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”) which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. ASU No. 2016-15 will be effect ive for the Company in fiscal year 2018 , and early adoption is permitted. The Company does not expect ASU No. 2016-15 to have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02: “Leases (Topic 842)” (“ASU No. 2016-02”). ASU No. 2016-02 requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2016-02 is effective for the Company in fiscal year 2019 and must be adopted using a modified retrospective approach. The Company is currently evaluating the impact the adoption of ASU No. 2016-02 will have on its Consolidated Financial Statements. 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. ASU No. 2014-09, as amended, 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. While the Company continues to assess all potential impacts of the standard, it currently believes the most significant impact relates to accounting for breakage and advertising fees charged to franchisees. Under the new standard, the Company expects to recognize breakage proportional to actual gift card redemptions. Advertising fees charged to franchisees, which are currently recorded as a reduction to Other restaurant operating expenses, will be recognized as Franchise and other revenues. In addition, initial franchise fees will be recognized over the term of the franchise agreement, which is not expected to have a material impact on the Consolidated Financial Statements. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company. 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. |
Disposals
Disposals | 3 Months Ended |
Mar. 26, 2017 | |
Disposals [Abstract] | |
Disposals | Disposals Assets Held for Sale - In February 2017, the Company signed purchase agreements with multiple buyers to sell 54 of its existing U.S. Company-owned Outback Steakhouse and Carrabba’s Italian Grill locations for $37.6 million . The Company completed the sale of these restaurants in the second quarter of 2017. After the completion of the sale, these restaurant locations are operated as franchises under agreements with the buyers. Following are the assets and liabilities related to the 54 Outback Steakhouse and Carrabba’s Italian Grill locations classified as held for sale as of March 26, 2017 : (dollars in thousands) MARCH 26, 2017 Assets Current assets, net $ 1,704 Property, fixtures and equipment, net 31,774 Goodwill 1,677 Other assets, net 2,143 Total assets (1) $ 37,298 Liabilities Accrued and other current liabilities $ 217 Deferred rent 3,230 Long-term debt, net (2) 5,942 Other long-term liabilities, net 3,620 Total liabilities (1) $ 13,009 ________________ (1) Certain assets and liabilities are classified as non-current in the Consolidated Balance Sheet as of March 26, 2017 , since net proceeds from the sale will be used to make a payment on the revolving credit facility, which is classified as a non-current liability. (2) Includes a financing obligation related to the sale of a restaurant property that does not qualify for sale-leaseback accounting. See Footnote 7 - Property, Fixtures and Equipment, Net for additional details regarding the sale-leaseback transactions. Following are the components of the Consolidated Statements of Operations and Comprehensive Income for the Outback Steakhouse and Carrabba’s Italian Grill locations classified as held for sale as of March 26, 2017 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Income before income taxes $ 3,495 $ 3,797 Outback Steakhouse South Korea - In 2016, the Company completed the sale of its Outback Steakhouse subsidiary in South Korea (“Outback Steakhouse South Korea”). Following are the components of Outback Steakhouse South Korea included in the Consolidated Statements of Operations and Comprehensive Income for the following period: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 27, 2016 Income before income taxes $ 4,007 |
Impairment and Exit Costs
Impairment and Exit Costs | 3 Months Ended |
Mar. 26, 2017 | |
Impairments and Disposals [Abstract] | |
Impairments and Exit Costs | Impairments and Exit Costs The components of Provision for impaired assets and restaurant closings are as follows: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Impairment losses U.S. $ 920 $ — Total impairment losses $ 920 $ — Restaurant closure expenses U.S. $ 18,156 $ 3,628 International — (464 ) Total restaurant closure expenses $ 18,156 $ 3,164 Provision for impaired assets and restaurant closings $ 19,076 $ 3,164 Closure Initiative and Restructuring Costs - Following is a summary of expenses, related to the 2017 Closure Initiative, Bonefish Restructuring and International Restaurant Closure Initiative (“Closure Initiatives”), recognized in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Impairment, facility closure and other expenses 2017 Closure Initiative (1) $ 17,447 $ — Bonefish Restructuring (2) 809 3,573 International Restaurant Closure Initiative (3) — (462 ) Provision for impaired assets and restaurant closings $ 18,256 $ 3,111 Severance and other expenses 2017 Closure Initiative (1) $ 2,182 $ — Bonefish Restructuring (2) — 575 International Restaurant Closure Initiative (3) — 23 General and administrative $ 2,182 $ 598 Reversal of deferred rent liability 2017 Closure Initiative (1) $ (4,941 ) $ — Bonefish Restructuring (2) — (1,925 ) Other restaurant operating $ (4,941 ) $ (1,925 ) $ 15,497 $ 1,784 ________________ (1) On February 15, 2017, the Company decided to close 43 underperforming restaurants (the “2017 Closure Initiative”). Most of these restaurants will close in 2017, with the balance closing as leases and certain operating covenants expire or are amended or waived. Expenses related to the 2017 Closure Initiative for the thirteen weeks ended March 26, 2017, are recognized within the U.S. segment. (2) On February 12, 2016, the Company decided to close 14 Bonefish Grill restaurants (“Bonefish Restructuring”). The Company expects to substantially complete these restaurant closings through the first quarter of 2019. Expenses related to the Bonefish Restructuring are recognized within the U.S. segment. (3) During 2014, the Company decided to close 36 underperforming international locations, primarily in South Korea (the “International Restaurant Closure Initiative”). The remaining restaurant impairment and closing charges resulted from the carrying value of a restaurant’s assets exceeding its estimated fair market value, primarily due to locations identified for relocation. Projected Future Expenses and Cash Expenditures - The Company currently expects to incur additional charges for the 2017 Closure Initiative and Bonefish Restructuring over the next two to three years , including costs associated with lease obligations, employee terminations and other closure-related obligations. Following is a summary of estimated pre-tax expense by type: Estimated future expense (dollars in millions) 2017 CLOSURE INITIATIVE BONEFISH RESTRUCTURING Lease related liabilities, net of subleases $ 4.0 to $ 5.7 $ 2.0 to $ 5.1 Employee severance and other obligations 0.5 to 0.8 0.3 to 0.6 Total estimated future expense $ 4.5 to $ 6.5 $ 2.3 to $ 5.7 Total estimated future cash expenditures (dollars in millions) $ 30.4 $ 34.6 $ 10.1 to $ 12.3 Total future undiscounted cash expenditures for the 2017 Closure Initiative and Bonefish Restructuring, primarily related to lease liabilities, are expected to occur over the remaining lease terms with the final term ending in January 2029 and October 2024 , respectively. Accrued Facility Closure and Other Costs Rollforward - The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the 2017 Closure Initiative, Bonefish Restructuring and Domestic and International Restaurant Closure Initiatives, during the thirteen weeks ended March 26, 2017 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 Beginning of the period $ 6,557 Charges 18,467 Cash payments (2,338 ) Adjustments (311 ) End of the period (1) $ 22,375 ________________ (1) As of March 26, 2017 , the Company had exit-related accruals of $7.2 million recorded in Accrued and other current liabilities and $15.2 million recorded in Other long-term liabilities, net in the Consolidated Balance Sheet. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 26, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share : THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 26, 2017 MARCH 27, 2016 Net income attributable to Bloomin’ Brands $ 43,910 $ 34,475 Basic weighted average common shares outstanding 103,074 117,930 Effect of diluted securities: Stock options 2,933 2,653 Nonvested restricted stock and restricted stock units 354 188 Nonvested performance-based share units 52 5 Diluted weighted average common shares outstanding 106,413 120,776 Basic earnings per share $ 0.43 $ 0.29 Diluted earnings per share $ 0.41 $ 0.29 Dilutive securities outstanding not included in the computation of earnings per share because their effect was antidilutive were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2017 MARCH 27, 2016 Stock options 5,566 4,224 Nonvested restricted stock and restricted stock units 191 393 Nonvested performance-based share units 371 — |
Stock-based Compensation Plans
Stock-based Compensation Plans | 3 Months Ended |
Mar. 26, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Plans | Stock-based Compensation Plans The Bloomin’ Brands, Inc. 2016 Omnibus Incentive Compensation Plan (the “2016 Incentive Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other cash-based or stock-based awards to Company management, other key employees, consultants and directors. As of March 26, 2017 , the maximum number of shares of common stock available for issuance pursuant to the 2016 Incentive Plan was 4,046,425 . The Company recognized stock-based compensation expense as follows: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Stock options $ 2,755 $ 2,718 Restricted stock and restricted stock units 2,553 2,044 Performance-based share units 416 885 $ 5,724 $ 5,647 During the thirteen weeks ended March 26, 2017 , the Company made grants to its employees of 1.1 million stock options, 0.5 million time-based restricted stock units and 0.3 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: THIRTEEN WEEKS ENDED MARCH 26, 2017 MARCH 27, 2016 Assumptions: Weighted-average risk-free interest rate (1) 1.93 % 1.31 % Dividend yield (2) 1.85 % 1.61 % Expected term (3) 6.3 years 6.1 years Weighted-average volatility (4) 33.74 % 35.21 % Weighted-average grant date fair value per option $ 5.05 $ 5.21 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to 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 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 March 26, 2017 : UNRECOGNIZED REMAINING WEIGHTED-AVERAGE VESTING PERIOD Stock options $ 23,176 2.6 Restricted stock and restricted stock units $ 27,308 2.9 Performance-based share units $ 7,278 2.0 |
Other Current Assets, Net
Other Current Assets, Net | 3 Months Ended |
Mar. 26, 2017 | |
Other Current Assets, Net [Abstract] | |
Other Current Assets, Net | Other Current Assets, Net Other current assets, net, consisted of the following: (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 Prepaid expenses $ 20,669 $ 35,298 Accounts receivable - gift cards, net 11,534 102,664 Accounts receivable - vendors, net 5,402 10,107 Accounts receivable - franchisees, net 2,242 1,677 Accounts receivable - other, net 27,679 20,497 Assets held for sale 3,732 1,331 Other current assets, net 18,592 18,652 $ 89,850 $ 190,226 |
Property, Fixtures and Equipmen
Property, Fixtures and Equipment, Net | 3 Months Ended |
Mar. 26, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Fixtures and Equipment, Net | Property, Fixtures and Equipment, Net During the thirteen weeks ended March 26, 2017 , the Company entered into sale-leaseback transactions with third-parties in which it sold 11 restaurant properties at fair market value for gross proceeds of $40.1 million . In connection with the sale-leaseback transactions, the Company recorded deferred gains of $10.7 million , which are amortized to Other restaurant operating expense in the Consolidated Statements of Operations and Comprehensive Income over the initial term of each lease, ranging from 10 to 15 years. During the thirteen weeks ended March 26, 2017 , the Company sold one restaurant property to a third party for gross proceeds of $6.0 million . The sale of this property does not qualify for sale-leaseback accounting and the book value of the building and land was not removed from the Company’s Consolidated Balance Sheet. See Note 2 - Disposals for additional details regarding the financing obligation. |
Goodwill, Net
Goodwill, Net | 3 Months Ended |
Mar. 26, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Net | Goodwill, Net The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 25, 2016 $ 172,424 $ 137,631 $ 310,055 Translation adjustments — 8,120 8,120 Transfer to Assets held for sale (1,677 ) — (1,677 ) Balance as of March 26, 2017 $ 170,747 $ 145,751 $ 316,498 |
Long-term Debt, Net
Long-term Debt, Net | 3 Months Ended |
Mar. 26, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net Following is a summary of outstanding long-term debt: MARCH 26, 2017 DECEMBER 25, 2016 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 253,125 2.82 % $ 258,750 2.63 % Term loan A-1 137,813 2.95 % 140,625 2.70 % Revolving credit facility (1) 577,000 2.89 % 622,000 2.67 % Total Senior Secured Credit Facility $ 967,938 $ 1,021,375 PRP Mortgage Loan (2) 13,670 3.45 % 47,202 3.21 % Financing obligations 19,591 7.45% to 7.60% 19,595 7.45% to 7.60% Capital lease obligations 2,276 2,364 Other notes payable 1,000 0.00% to 2.18% 1,776 0.00% to 7.00% Less: unamortized debt discount and issuance costs (2,099 ) (2,827 ) $ 1,002,376 $ 1,089,485 Less: current portion of long-term debt, net (48,756 ) (35,079 ) Long-term debt, net $ 953,620 $ 1,054,406 ________________ (1) Represents the weighted-average interest rate for the respective period. (2) In April 2017, the Company paid the remaining balance on its PRP Mortgage Loan. Debt Covenants - As of March 26, 2017 and December 25, 2016 , the Company was in compliance with its debt covenants. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 26, 2017 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The Company consolidates subsidiaries in which it has noncontrolling interests that are permitted to deliver subsidiary shares in exchange for cash at a future date. The following table presents a rollforward of Redeemable noncontrolling interests during the thirteen weeks ended March 26, 2017 and March 27, 2016 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Balance, beginning of period $ 547 $ 23,526 Foreign currency translation attributable to Redeemable noncontrolling interests 5 692 Net (loss) income attributable to Redeemable noncontrolling interests (55 ) 311 Purchase of Redeemable noncontrolling interests — (3,522 ) Balance, end of period $ 497 $ 21,007 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 26, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases - Following is a summary of the shares repurchased under the Company’s share repurchase program during fiscal year 2017: NUMBER OF SHARES AVERAGE REPURCHASE PRICE PER SHARE AMOUNT First fiscal quarter (1)(2) 2,887 $ 18.37 $ 53,053 ________________ (1) On July 26, 2016 , the Board of Directors (“the Board”) approved a new $300.0 million authorization (the “July 2016 Share Repurchase Program”). (2) Excludes the repurchase of 1.3 million shares for $24.7 million pursuant to trades executed in, but not settled until after, the thirteen weeks ended March 26, 2017 . On April 21, 2017 , the Board canceled the remaining $52.3 million of authorization under the July 2016 Share Repurchase Program and approved a new $250.0 million authorization (the “2017 Share Repurchase Program”). The 2017 Share Repurchase Program will expire on October 21, 2018 . Dividends - The Company declared and paid dividends per share during fiscal year 2017 as follows: DIVIDENDS AMOUNT First fiscal quarter $ 0.08 $ 8,254 In April 2017, the Board declared a quarterly cash dividend of $0.08 per share, payable on May 19, 2017 , to shareholders of record at the close of business on May 8, 2017 . Accumulated Other Comprehensive Loss - Following are the components of Accumulated other comprehensive loss (“AOCL”): (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 Foreign currency translation adjustment $ (86,932 ) $ (107,509 ) Unrealized losses on derivatives, net of tax (2,749 ) (3,634 ) Accumulated other comprehensive loss $ (89,681 ) $ (111,143 ) Following are the components of Other comprehensive income (loss) during the periods presented: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Bloomin’ Brands: Foreign currency translation adjustment $ 20,577 $ (7,983 ) Unrealized gain (loss) on derivatives, net of tax (1) $ 101 $ (2,735 ) Reclassification of adjustment for loss on derivatives included in Net income, net of tax (2) 784 988 Total unrealized gain (loss) on derivatives, net of tax $ 885 $ (1,747 ) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 21,462 $ (9,730 ) Non-controlling interests: Foreign currency translation adjustment $ (93 ) $ 6 Other comprehensive (loss) income attributable to Non-controlling interests $ (93 ) $ 6 Redeemable non-controlling interests: Foreign currency translation adjustment $ 5 $ 692 Other comprehensive income attributable to Redeemable non-controlling interests $ 5 $ 692 ________________ (1) Unrealized loss on derivatives is net of tax of ($0.1) million and $1.7 million for the thirteen weeks ended March 26, 2017 and March 27, 2016 , respectively. (2) Reclassifications of adjustments for losses on derivatives are net of tax of $0.5 million and $0.6 million for the thirteen weeks ended March 26, 2017 and March 27, 2016 , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 26, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Interest Rate Risk - The Company is exposed to certain risks 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. Currency Exchange Rate Risk - The Company is exposed to foreign currency exchange rate risk arising from transactions and balances denominated in currencies other than the U.S. dollar. The Company may use foreign currency forward contracts to manage certain foreign currency exposures. 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 start date of June 30, 2015 , and mature on May 16, 2019 . Under the terms of the swap agreements, the Company pays a weighted-average fixed rate of 2.02% on the $400.0 million notional amount and receives 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 $3.3 million will be reclassified to interest expense over the next twelve months. The following table presents the fair value, accrued interest and classification of the Company’s interest rate swaps: (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 3,081 $ 3,968 Accrued and other current liabilities Interest rate swaps - liability 1,457 1,999 Other long-term liabilities, net Total fair value of derivative instruments (1) $ 4,538 $ 5,967 Accrued interest $ 372 $ 408 Accrued and other current liabilities ____________________ (1) See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. The following table summarizes the effects of the interest rate swap on Net income for the thirteen weeks ended March 26, 2017 and March 27, 2016 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Interest rate swap expense recognized in Interest expense, net (1) $ (1,265 ) $ (1,614 ) Income tax benefit recognized in Provision for income taxes 481 626 Total effects of the interest rate swaps on Net income $ (784 ) $ (988 ) ____________________ (1) During the thirteen weeks ended March 26, 2017 and March 27, 2016 , the Company did not recognize any gain or loss as a result of hedge ineffectiveness. 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 March 26, 2017 , 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 March 26, 2017 , all counterparties to the interest rate swaps had performed in accordance with their contractual obligations. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on indebtedness. As of March 26, 2017 and December 25, 2016 , the fair value of the Company’s interest rate swaps in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, was $4.9 million and $6.4 million , respectively. As of March 26, 2017 and December 25, 2016 , the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of March 26, 2017 and December 25, 2016 , it could have been required to settle its obligations under the agreements at their termination value of $4.9 million and $6.4 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 26, 2017 | |
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 the 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 March 26, 2017 and December 25, 2016 : MARCH 26, 2017 DECEMBER 25, 2016 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 88 $ 88 $ — $ 90 $ 90 $ — Money market funds 15,946 15,946 — 18,607 18,607 — Restricted cash equivalents: Fixed income funds 553 553 — 552 552 — Money market funds 252 252 — 2,518 2,518 — Total asset recurring fair value measurements $ 16,839 $ 16,839 $ — $ 21,767 $ 21,767 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 3,081 $ — $ 3,081 $ 3,968 $ — $ 3,968 Derivative instruments - commodities 171 — 171 157 — 157 Other long-term liabilities: Derivative instruments - interest rate swaps 1,457 — 1,457 1,999 — 1,999 Total liability recurring fair value measurements $ 4,709 $ — $ 4,709 $ 6,124 $ — $ 6,124 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 The Company’s derivative instruments include interest rate swaps and commodities. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable 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 March 26, 2017 and December 25, 2016, 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: THIRTEEN WEEKS ENDED MARCH 26, 2017 (dollars in thousands) CARRYING VALUE (1) TOTAL IMPAIRMENT Assets held for sale $ 400 $ 70 Property, fixtures and equipment 1,067 850 $ 1,467 $ 920 ________________ (1) Carrying value approximates fair value with all assets measured using third-party market appraisals (Level 2). Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments as of March 26, 2017 and December 25, 2016 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 March 26, 2017 and December 25, 2016 : MARCH 26, 2017 DECEMBER 25, 2016 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 $ 253,125 $ 252,176 $ — $ 258,750 $ 257,780 $ — Term loan A-1 137,813 137,296 — 140,625 140,098 — Revolving credit facility 577,000 572,673 — 622,000 617,335 — PRP Mortgage Loan 13,670 — 13,670 47,202 — 47,202 Other notes payable 1,000 — 981 1,776 — 1,659 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. PRP Mortgage 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 | 3 Months Ended |
Mar. 26, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED MARCH 26, 2017 MARCH 27, 2016 Effective income tax rate 25.1 % 24.0 % The net increase in the effective income tax rate for the thirteen weeks ended March 26, 2017 , was primarily due to the change in the blend of taxable income across the Company’s U.S. and international subsidiaries and the change in employment related credits as a percentage of income. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 26, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Matters - The Company had $5.9 million and $3.5 million of liabilities recorded for various legal matters as of March 26, 2017 and December 25, 2016 , respectively. In November 2015, David Sears and Elizabeth Thomas, two former Outback Steakhouse managers (“Manager Plaintiffs”), sent a demand letter seeking unpaid overtime compensation on behalf of all managers and kitchen managers employed at Outback Steakhouse restaurants from November 2012 to present. The Manager Plaintiffs claim that managers were not assigned sufficient management duties to qualify as exempt from overtime. In December 2016, the Company agreed to a tentative class settlement for eligible kitchen managers and has accrued a settlement, inclusive of legal fees, of $2.4 million . 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 | 3 Months Ended |
Mar. 26, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has two reportable segments, U.S. and International, which reflects 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. 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 (“CODM”). Following is a summary of reporting segments: SEGMENT CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong, China Carrabba’s Italian Grill (Abbraccio) Brazil 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 25, 2016 . 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 certain legal and corporate costs not directly related to the performance of the segments, stock-based compensation expenses and certain bonus expenses. The following table is a summary of Total revenue by segment: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Total revenues U.S. $ 1,032,618 $ 1,043,779 International 111,205 120,409 Total revenues $ 1,143,823 $ 1,164,188 The following table is a reconciliation of Segment income from operations to Income before provision for income taxes : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Segment income from operations U.S. $ 100,946 $ 117,839 International 8,802 11,349 Total segment income from operations 109,748 129,188 Unallocated corporate operating expense (40,618 ) (42,504 ) Total income from operations 69,130 86,684 Loss on defeasance, extinguishment and modification of debt — (26,580 ) Other expense, net (51 ) (19 ) Interest expense, net (9,141 ) (12,875 ) Income before provision for income taxes $ 59,938 $ 47,210 The following table is a summary of Depreciation and amortization expense by segment: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Depreciation and amortization U.S. $ 36,600 $ 38,202 International 6,500 6,547 Corporate 3,490 2,902 Total depreciation and amortization $ 46,590 $ 47,651 |
Description of the Business a24
Description of the Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 26, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 fair financial statement presentation 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 25, 2016 . |
Recently Adopted Financial Accounting Standards | Recently Adopted Financial Accounting Standards - Effective December 26, 2016, the Company adopted Accounting Standards Update (“ASU”) 2016-09: “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU No. 2016-09”). ASU No. 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. Upon adoption, the Company made an accounting policy election to recognize forfeitures as they occur. Using the modified retrospective transition method required under the standard, the Company recorded a cumulative-effect adjustment for the adoption of ASU 2016-09 of $14.4 million for previously unrecognized excess tax benefits, which increased Deferred tax assets and reduced Accumulated deficit . The recognition of excess tax benefits and tax shortfalls in the income statement and presentation of excess tax benefits on the statement of cash flows were adopted prospectively, with no adjustments made to prior periods. The remaining provisions of ASU 2016-09 did not have a material impact on the Company’s Consolidated Financial Statements. Recently Issued Financial Accounting Standards Not Yet Adopted - In January 2017, the Financial Accounting Standards Board (“the FASB”) issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” (“ASU No. 2017-04”). ASU No. 2017-04 eliminates the second step of goodwill impairment, which requires a hypothetical purchase price allocation. Under ASU No. 2017-04, goodwill impairment will be calculated as the amount a reporting unit’s carrying value exceeds its calculated fair value. ASU No. 2017-04 will be applied prospectively and is effective for the Company in fiscal year 2020, with early adoption permitted. The Company does not expect the adoption of ASU No. 2017-04 to have a material impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations - Clarifying the Definition of a Business,” (“ASU No. 2017-01”). ASU No. 2017-01 clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects various areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU No. 2017-01 is effective for the Company in fiscal year 2018 and is not expected to have an impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash” (“ASU No. 2016-18”). ASU No. 2016-18 provides guidance on the presentation of restricted cash and restricted cash equivalents, which should now be included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the Statements of Cash Flows. ASU No. 2016-18 will be effective for the Company in fiscal year 2018, with early adoption permitted. Other than the change in presentation of restricted cash within the Statement of Cash Flows, the adoption of ASU No. 2016-18 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”) which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. ASU No. 2016-15 will be effect ive for the Company in fiscal year 2018 , and early adoption is permitted. The Company does not expect ASU No. 2016-15 to have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02: “Leases (Topic 842)” (“ASU No. 2016-02”). ASU No. 2016-02 requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2016-02 is effective for the Company in fiscal year 2019 and must be adopted using a modified retrospective approach. The Company is currently evaluating the impact the adoption of ASU No. 2016-02 will have on its Consolidated Financial Statements. 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. ASU No. 2014-09, as amended, 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. While the Company continues to assess all potential impacts of the standard, it currently believes the most significant impact relates to accounting for breakage and advertising fees charged to franchisees. Under the new standard, the Company expects to recognize breakage proportional to actual gift card redemptions. Advertising fees charged to franchisees, which are currently recorded as a reduction to Other restaurant operating expenses, will be recognized as Franchise and other revenues. In addition, initial franchise fees will be recognized over the term of the franchise agreement, which is not expected to have a material impact on the Consolidated Financial Statements. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company. |
Reclassifications | 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. |
Disposals (Tables)
Disposals (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Condensed Income Statements, Captions [Line Items] | |
Disclosure of long lived assets held-for-sale | Following are the assets and liabilities related to the 54 Outback Steakhouse and Carrabba’s Italian Grill locations classified as held for sale as of March 26, 2017 : (dollars in thousands) MARCH 26, 2017 Assets Current assets, net $ 1,704 Property, fixtures and equipment, net 31,774 Goodwill 1,677 Other assets, net 2,143 Total assets (1) $ 37,298 Liabilities Accrued and other current liabilities $ 217 Deferred rent 3,230 Long-term debt, net (2) 5,942 Other long-term liabilities, net 3,620 Total liabilities (1) $ 13,009 ________________ (1) Certain assets and liabilities are classified as non-current in the Consolidated Balance Sheet as of March 26, 2017 , since net proceeds from the sale will be used to make a payment on the revolving credit facility, which is classified as a non-current liability. (2) Includes a financing obligation related to the sale of a restaurant property that does not qualify for sale-leaseback accounting. See Footnote 7 - Property, Fixtures and Equipment, Net for additional details regarding the sale-leaseback transactions. |
Outback Steakhouse and Carrabba's Italian Grill restaurants [Member] | |
Condensed Income Statements, Captions [Line Items] | |
Condensed income statement, disposal group | Following are the components of the Consolidated Statements of Operations and Comprehensive Income for the Outback Steakhouse and Carrabba’s Italian Grill locations classified as held for sale as of March 26, 2017 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Income before income taxes $ 3,495 $ 3,797 |
Outback South Korea [Member] | |
Condensed Income Statements, Captions [Line Items] | |
Condensed income statement, disposal group | Following are the components of Outback Steakhouse South Korea included in the Consolidated Statements of Operations and Comprehensive Income for the following period: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 27, 2016 Income before income taxes $ 4,007 |
Impairments and Exit Costs (Tab
Impairments and Exit Costs (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Impairment losses U.S. $ 920 $ — Total impairment losses $ 920 $ — Restaurant closure expenses U.S. $ 18,156 $ 3,628 International — (464 ) Total restaurant closure expenses $ 18,156 $ 3,164 Provision for impaired assets and restaurant closings $ 19,076 $ 3,164 |
Schedule of restructuring reserve by type of cost, facility closure and other costs | The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the 2017 Closure Initiative, Bonefish Restructuring and Domestic and International Restaurant Closure Initiatives, during the thirteen weeks ended March 26, 2017 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 Beginning of the period $ 6,557 Charges 18,467 Cash payments (2,338 ) Adjustments (311 ) End of the period (1) $ 22,375 ________________ (1) As of March 26, 2017 , the Company had exit-related accruals of $7.2 million recorded in Accrued and other current liabilities and $15.2 million recorded in Other long-term liabilities, net in the Consolidated Balance Sheet. |
Restructuring and restaurant closure initiatives [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal groups, including discontinued operations | Following is a summary of expenses, related to the 2017 Closure Initiative, Bonefish Restructuring and International Restaurant Closure Initiative (“Closure Initiatives”), recognized in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Impairment, facility closure and other expenses 2017 Closure Initiative (1) $ 17,447 $ — Bonefish Restructuring (2) 809 3,573 International Restaurant Closure Initiative (3) — (462 ) Provision for impaired assets and restaurant closings $ 18,256 $ 3,111 Severance and other expenses 2017 Closure Initiative (1) $ 2,182 $ — Bonefish Restructuring (2) — 575 International Restaurant Closure Initiative (3) — 23 General and administrative $ 2,182 $ 598 Reversal of deferred rent liability 2017 Closure Initiative (1) $ (4,941 ) $ — Bonefish Restructuring (2) — (1,925 ) Other restaurant operating $ (4,941 ) $ (1,925 ) $ 15,497 $ 1,784 ________________ (1) On February 15, 2017, the Company decided to close 43 underperforming restaurants (the “2017 Closure Initiative”). Most of these restaurants will close in 2017, with the balance closing as leases and certain operating covenants expire or are amended or waived. Expenses related to the 2017 Closure Initiative for the thirteen weeks ended March 26, 2017, are recognized within the U.S. segment. (2) On February 12, 2016, the Company decided to close 14 Bonefish Grill restaurants (“Bonefish Restructuring”). The Company expects to substantially complete these restaurant closings through the first quarter of 2019. Expenses related to the Bonefish Restructuring are recognized within the U.S. segment. (3) During 2014, the Company decided to close 36 underperforming international locations, primarily in South Korea (the “International Restaurant Closure Initiative”). |
2017 Closure Initiative and Bonefish Restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal groups, including discontinued operations | Following is a summary of estimated pre-tax expense by type: Estimated future expense (dollars in millions) 2017 CLOSURE INITIATIVE BONEFISH RESTRUCTURING Lease related liabilities, net of subleases $ 4.0 to $ 5.7 $ 2.0 to $ 5.1 Employee severance and other obligations 0.5 to 0.8 0.3 to 0.6 Total estimated future expense $ 4.5 to $ 6.5 $ 2.3 to $ 5.7 Total estimated future cash expenditures (dollars in millions) $ 30.4 $ 34.6 $ 10.1 to $ 12.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
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 (in thousands, except per share data) MARCH 26, 2017 MARCH 27, 2016 Net income attributable to Bloomin’ Brands $ 43,910 $ 34,475 Basic weighted average common shares outstanding 103,074 117,930 Effect of diluted securities: Stock options 2,933 2,653 Nonvested restricted stock and restricted stock units 354 188 Nonvested performance-based share units 52 5 Diluted weighted average common shares outstanding 106,413 120,776 Basic earnings per share $ 0.43 $ 0.29 Diluted earnings per share $ 0.41 $ 0.29 |
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 (in thousands) MARCH 26, 2017 MARCH 27, 2016 Stock options 5,566 4,224 Nonvested restricted stock and restricted stock units 191 393 Nonvested performance-based share units 371 — |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
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 (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Stock options $ 2,755 $ 2,718 Restricted stock and restricted stock units 2,553 2,044 Performance-based share units 416 885 $ 5,724 $ 5,647 |
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: THIRTEEN WEEKS ENDED MARCH 26, 2017 MARCH 27, 2016 Assumptions: Weighted-average risk-free interest rate (1) 1.93 % 1.31 % Dividend yield (2) 1.85 % 1.61 % Expected term (3) 6.3 years 6.1 years Weighted-average volatility (4) 33.74 % 35.21 % Weighted-average grant date fair value per option $ 5.05 $ 5.21 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to 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 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 March 26, 2017 : UNRECOGNIZED REMAINING WEIGHTED-AVERAGE VESTING PERIOD Stock options $ 23,176 2.6 Restricted stock and restricted stock units $ 27,308 2.9 Performance-based share units $ 7,278 2.0 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Other Current Assets, Net [Abstract] | |
Schedule of other current assets | Other current assets, net, consisted of the following: (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 Prepaid expenses $ 20,669 $ 35,298 Accounts receivable - gift cards, net 11,534 102,664 Accounts receivable - vendors, net 5,402 10,107 Accounts receivable - franchisees, net 2,242 1,677 Accounts receivable - other, net 27,679 20,497 Assets held for sale 3,732 1,331 Other current assets, net 18,592 18,652 $ 89,850 $ 190,226 |
Goodwill, Net (Tables)
Goodwill, Net (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill rollforward | The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 25, 2016 $ 172,424 $ 137,631 $ 310,055 Translation adjustments — 8,120 8,120 Transfer to Assets held for sale (1,677 ) — (1,677 ) Balance as of March 26, 2017 $ 170,747 $ 145,751 $ 316,498 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt: MARCH 26, 2017 DECEMBER 25, 2016 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 253,125 2.82 % $ 258,750 2.63 % Term loan A-1 137,813 2.95 % 140,625 2.70 % Revolving credit facility (1) 577,000 2.89 % 622,000 2.67 % Total Senior Secured Credit Facility $ 967,938 $ 1,021,375 PRP Mortgage Loan (2) 13,670 3.45 % 47,202 3.21 % Financing obligations 19,591 7.45% to 7.60% 19,595 7.45% to 7.60% Capital lease obligations 2,276 2,364 Other notes payable 1,000 0.00% to 2.18% 1,776 0.00% to 7.00% Less: unamortized debt discount and issuance costs (2,099 ) (2,827 ) $ 1,002,376 $ 1,089,485 Less: current portion of long-term debt, net (48,756 ) (35,079 ) Long-term debt, net $ 953,620 $ 1,054,406 ________________ (1) Represents the weighted-average interest rate for the respective period. (2) In April 2017, the Company paid the remaining balance on its PRP Mortgage Loan. |
Redeemable Noncontrolling Int32
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
Redeemable noncontrolling interests | The following table presents a rollforward of Redeemable noncontrolling interests during the thirteen weeks ended March 26, 2017 and March 27, 2016 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Balance, beginning of period $ 547 $ 23,526 Foreign currency translation attributable to Redeemable noncontrolling interests 5 692 Net (loss) income attributable to Redeemable noncontrolling interests (55 ) 311 Purchase of Redeemable noncontrolling interests — (3,522 ) Balance, end of period $ 497 $ 21,007 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
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 during fiscal year 2017: NUMBER OF SHARES AVERAGE REPURCHASE PRICE PER SHARE AMOUNT First fiscal quarter (1)(2) 2,887 $ 18.37 $ 53,053 ________________ (1) On July 26, 2016 , the Board of Directors (“the Board”) approved a new $300.0 million authorization (the “July 2016 Share Repurchase Program”). (2) Excludes the repurchase of 1.3 million shares for $24.7 million pursuant to trades executed in, but not settled until after, the thirteen weeks ended March 26, 2017 . |
Dividends declared and paid | The Company declared and paid dividends per share during fiscal year 2017 as follows: DIVIDENDS AMOUNT First fiscal quarter $ 0.08 $ 8,254 |
Schedule of accumulated other comprehensive loss | Following are the components of Accumulated other comprehensive loss (“AOCL”): (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 Foreign currency translation adjustment $ (86,932 ) $ (107,509 ) Unrealized losses on derivatives, net of tax (2,749 ) (3,634 ) Accumulated other comprehensive loss $ (89,681 ) $ (111,143 ) |
Comprehensive income (loss) | Following are the components of Other comprehensive income (loss) during the periods presented: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Bloomin’ Brands: Foreign currency translation adjustment $ 20,577 $ (7,983 ) Unrealized gain (loss) on derivatives, net of tax (1) $ 101 $ (2,735 ) Reclassification of adjustment for loss on derivatives included in Net income, net of tax (2) 784 988 Total unrealized gain (loss) on derivatives, net of tax $ 885 $ (1,747 ) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 21,462 $ (9,730 ) Non-controlling interests: Foreign currency translation adjustment $ (93 ) $ 6 Other comprehensive (loss) income attributable to Non-controlling interests $ (93 ) $ 6 Redeemable non-controlling interests: Foreign currency translation adjustment $ 5 $ 692 Other comprehensive income attributable to Redeemable non-controlling interests $ 5 $ 692 ________________ (1) Unrealized loss on derivatives is net of tax of ($0.1) million and $1.7 million for the thirteen weeks ended March 26, 2017 and March 27, 2016 , respectively. (2) Reclassifications of adjustments for losses on derivatives are net of tax of $0.5 million and $0.6 million for the thirteen weeks ended March 26, 2017 and March 27, 2016 , respectively. |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
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, accrued interest and classification of the Company’s interest rate swaps: (dollars in thousands) MARCH 26, 2017 DECEMBER 25, 2016 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 3,081 $ 3,968 Accrued and other current liabilities Interest rate swaps - liability 1,457 1,999 Other long-term liabilities, net Total fair value of derivative instruments (1) $ 4,538 $ 5,967 Accrued interest $ 372 $ 408 Accrued and other current liabilities ____________________ (1) See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance and financial position, location | The following table summarizes the effects of the interest rate swap on Net income for the thirteen weeks ended March 26, 2017 and March 27, 2016 : THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Interest rate swap expense recognized in Interest expense, net (1) $ (1,265 ) $ (1,614 ) Income tax benefit recognized in Provision for income taxes 481 626 Total effects of the interest rate swaps on Net income $ (784 ) $ (988 ) ____________________ (1) During the thirteen weeks ended March 26, 2017 and March 27, 2016 , the Company did not recognize any gain or loss as a result of hedge ineffectiveness. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring and nonrecurring, valuation techniques | Fair value is categorized into one of the 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 March 26, 2017 and December 25, 2016 : MARCH 26, 2017 DECEMBER 25, 2016 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 88 $ 88 $ — $ 90 $ 90 $ — Money market funds 15,946 15,946 — 18,607 18,607 — Restricted cash equivalents: Fixed income funds 553 553 — 552 552 — Money market funds 252 252 — 2,518 2,518 — Total asset recurring fair value measurements $ 16,839 $ 16,839 $ — $ 21,767 $ 21,767 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 3,081 $ — $ 3,081 $ 3,968 $ — $ 3,968 Derivative instruments - commodities 171 — 171 157 — 157 Other long-term liabilities: Derivative instruments - interest rate swaps 1,457 — 1,457 1,999 — 1,999 Total liability recurring fair value measurements $ 4,709 $ — $ 4,709 $ 6,124 $ — $ 6,124 |
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 The Company’s derivative instruments include interest rate swaps and commodities. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable 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 March 26, 2017 and December 25, 2016, 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 a nonrecurring basis | The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis: THIRTEEN WEEKS ENDED MARCH 26, 2017 (dollars in thousands) CARRYING VALUE (1) TOTAL IMPAIRMENT Assets held for sale $ 400 $ 70 Property, fixtures and equipment 1,067 850 $ 1,467 $ 920 ________________ (1) Carrying value approximates fair value with all assets measured using third-party market appraisals (Level 2). |
Schedule of carrying value and fair value of senior secured credit facilities, PRP Mortgage 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 March 26, 2017 and December 25, 2016 : MARCH 26, 2017 DECEMBER 25, 2016 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 $ 253,125 $ 252,176 $ — $ 258,750 $ 257,780 $ — Term loan A-1 137,813 137,296 — 140,625 140,098 — Revolving credit facility 577,000 572,673 — 622,000 617,335 — PRP Mortgage Loan 13,670 — 13,670 47,202 — 47,202 Other notes payable 1,000 — 981 1,776 — 1,659 |
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. PRP Mortgage 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 (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | THIRTEEN WEEKS ENDED MARCH 26, 2017 MARCH 27, 2016 Effective income tax rate 25.1 % 24.0 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
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 Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong, China Carrabba’s Italian Grill (Abbraccio) Brazil |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenue by segment: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Total revenues U.S. $ 1,032,618 $ 1,043,779 International 111,205 120,409 Total revenues $ 1,143,823 $ 1,164,188 |
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 (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Segment income from operations U.S. $ 100,946 $ 117,839 International 8,802 11,349 Total segment income from operations 109,748 129,188 Unallocated corporate operating expense (40,618 ) (42,504 ) Total income from operations 69,130 86,684 Loss on defeasance, extinguishment and modification of debt — (26,580 ) Other expense, net (51 ) (19 ) Interest expense, net (9,141 ) (12,875 ) Income before provision for income taxes $ 59,938 $ 47,210 |
Reconciliation of segment depreciation and amortization | The following table is a summary of Depreciation and amortization expense by segment: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 26, 2017 MARCH 27, 2016 Depreciation and amortization U.S. $ 36,600 $ 38,202 International 6,500 6,547 Corporate 3,490 2,902 Total depreciation and amortization $ 46,590 $ 47,651 |
Description of the Business a38
Description of the Business and Basis of Presentation Description of Business (Details) | Mar. 26, 2017restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of restaurant concepts in portfolio | 4 |
Description of the Business a39
Description of the Business and Basis of Presentation Adoption of New Accounting Procurements (Details) - Adjustments for new accounting pronouncement [Member] $ in Millions | Dec. 25, 2016USD ($) |
Accumulated deficit [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect of new accounting principle in period of adoption | $ (14.4) |
Deferred tax assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect of new accounting principle in period of adoption | $ 14.4 |
Disposals Domestic Disposal (De
Disposals Domestic Disposal (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 26, 2017USD ($) | Mar. 27, 2016USD ($) | Feb. 28, 2017USD ($)Restaurants | Dec. 25, 2016USD ($) | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, including discontinued operation, property, current assets, net | $ 3,732 | $ 1,331 | |||
Outback Steakhouse and Carrabba's Italian Grill restaurants [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, including discontinued operation, income before provision for income taxes | 3,495 | $ 3,797 | |||
Outback Steakhouse and Carrabba's Italian Grill restaurants [Member] | Disposal group, held-for-sale or disposed of by sale, not discontinued operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of restaurants | Restaurants | 54 | ||||
Disposal group, including discontinued operation, consideration | $ 37,600 | ||||
Disposal group, including discontinued operation, property, current assets, net | 1,704 | ||||
Disposal group, including discontinued operation, property, plant and equipment | 31,774 | ||||
Disposal group, including discontinued operation, goodwill | 1,677 | ||||
Disposal group, including discontinued operation, other assets | 2,143 | ||||
Disposal group, including discontinued operation, assets | [1] | 37,298 | |||
Disposal group, including discontinued operation, accrued liabilities, current | 217 | ||||
Disposal group, including discontinued operation, deferred rent, noncurrent | 3,230 | ||||
Disposal group, including discontinued operation, long-term debt, net | [2] | 5,942 | |||
Disposal group, including discontinued operation, other liabilities, noncurrent | 3,620 | ||||
Disposal group, including discontinued operation, liabilities | [1] | $ 13,009 | |||
[1] | Certain assets and liabilities are classified as non-current in the Consolidated Balance Sheet as of March 26, 2017, since net proceeds from the sale will be used to make a payment on the revolving credit facility, which is classified as a non-current liability. | ||||
[2] | Includes a financing obligation related to the sale of a restaurant property that does not qualify for sale-leaseback accounting. See Footnote 7 - Property, Fixtures and Equipment, Net for additional details regarding the sale-leaseback transactions. |
Disposals Outback South Korea (
Disposals Outback South Korea (Details) $ in Thousands | 3 Months Ended |
Mar. 27, 2016USD ($) | |
Outback South Korea [Member] | Disposal group, held-for-sale or disposed of by sale, not discontinued operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group, including discontinued operation, income before provision for income taxes | $ 4,007 |
Impairments and Exit Costs (Pro
Impairments and Exit Costs (Provision for impaired assets and restaurant closings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Provision for impaired assets and restaurant closings | $ 19,076 | $ 3,164 |
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 | 920 | 0 |
Restaurant closure expenses | 18,156 | 3,164 |
Provision for impaired assets and restaurant closings [Member] | U.S. segment [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment losses | 920 | 0 |
Restaurant closure expenses | 18,156 | 3,628 |
Provision for impaired assets and restaurant closings [Member] | International segment [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restaurant closure expenses | $ 0 | $ (464) |
Impairments and Exit Costs (Res
Impairments and Exit Costs (Restaurant closure initiatives-Summary) (Details) $ in Thousands | 3 Months Ended | ||||||
Mar. 26, 2017USD ($) | Mar. 27, 2016USD ($) | Feb. 15, 2017locations | Feb. 12, 2016locations | Sep. 28, 2014locations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | $ 15,497 | $ 1,784 | |||||
2017 Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of restaurants | locations | 43 | ||||||
Bonefish Restructuring [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of restaurants | locations | 14 | ||||||
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 | ||||||
Facility closing [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | 18,467 | ||||||
Facility closing [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 charges | 18,256 | 3,111 | |||||
Facility closing [Member] | Provision for impaired assets and restaurant closings [Member] | 2017 Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | 17,447 | [1] | 0 | ||||
Facility closing [Member] | Provision for impaired assets and restaurant closings [Member] | Bonefish Restructuring [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | [2] | 809 | 3,573 | ||||
Facility closing [Member] | Provision for impaired assets and restaurant closings [Member] | International Restaurant Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | [3] | 0 | (462) | ||||
Employee severance [Member] | General and administrative expense [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | 2,182 | 598 | |||||
Employee severance [Member] | General and administrative expense [Member] | 2017 Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | 2,182 | [1] | 0 | ||||
Employee severance [Member] | General and administrative expense [Member] | Bonefish Restructuring [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | [2] | 0 | 575 | ||||
Employee severance [Member] | General and administrative expense [Member] | International Restaurant Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring charges | [3] | 0 | 23 | ||||
Contract termination [Member] | Other restaurant operating [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring, reversal of deferred rent liabilities | (4,941) | (1,925) | |||||
Contract termination [Member] | Other restaurant operating [Member] | 2017 Closure Initiative [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring, reversal of deferred rent liabilities | (4,941) | [1] | 0 | ||||
Contract termination [Member] | Other restaurant operating [Member] | Bonefish Restructuring [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Restructuring, reversal of deferred rent liabilities | [2] | $ 0 | $ (1,925) | ||||
[1] | On February 15, 2017, the Company decided to close 43 underperforming restaurants (the “2017 Closure Initiative”). Most of these restaurants will close in 2017, with the balance closing as leases and certain operating covenants expire or are amended or waived. Expenses related to the 2017 Closure Initiative for the thirteen weeks ended March 26, 2017, are recognized within the U.S. segment. | ||||||
[2] | On February 12, 2016, the Company decided to close 14 Bonefish Grill restaurants (“Bonefish Restructuring”). The Company expects to substantially complete these restaurant closings through the first quarter of 2019. Expenses related to the Bonefish Restructuring are recognized within the U.S. segment. | ||||||
[3] | During 2014, the Company decided to close 36 underperforming international locations, primarily in South Korea (the “International Restaurant Closure Initiative”). |
Impairments and Exit Costs (P44
Impairments and Exit Costs (Projected Future Expenses & Cash Expenditures) (Details) $ in Millions | 3 Months Ended |
Mar. 26, 2017USD ($) | |
Bonefish Restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
2017 Closure Initiative and Bonefish Grill Restructuring, completion period | 2 years |
Bonefish Restructuring [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Lease expiration date | Oct. 31, 2024 |
Bonefish Restructuring [Member] | Minimum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | $ 2.3 |
Effect on future cash flows, amount | 10.1 |
Bonefish Restructuring [Member] | Minimum [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 2 |
Bonefish Restructuring [Member] | Minimum [Member] | Other restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 0.3 |
Bonefish Restructuring [Member] | Maximum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 5.7 |
Effect on future cash flows, amount | 12.3 |
Bonefish Restructuring [Member] | Maximum [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 5.1 |
Bonefish Restructuring [Member] | Maximum [Member] | Other restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | $ 0.6 |
2017 Closure Initiative [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
2017 Closure Initiative and Bonefish Grill Restructuring, completion period | 3 years |
2017 Closure Initiative [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Lease expiration date | Jan. 31, 2029 |
2017 Closure Initiative [Member] | Minimum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | $ 4.5 |
Effect on future cash flows, amount | 30.4 |
2017 Closure Initiative [Member] | Minimum [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 4 |
2017 Closure Initiative [Member] | Minimum [Member] | Other restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 0.5 |
2017 Closure Initiative [Member] | Maximum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 6.5 |
Effect on future cash flows, amount | 34.6 |
2017 Closure Initiative [Member] | Maximum [Member] | Facility closing [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | 5.7 |
2017 Closure Initiative [Member] | Maximum [Member] | Other restructuring [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected future costs | $ 0.8 |
Impairments and Exit Costs (Lea
Impairments and Exit Costs (Lease liability rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2017 | Mar. 27, 2016 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 15,497 | $ 1,784 | |
Facility closing [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve beginning of period | 6,557 | ||
Restructuring charges | 18,467 | ||
Payments for restructuring | (2,338) | ||
Restructuring reserve, adjustments | (311) | ||
Restructuring reserve end of period | [1] | 22,375 | |
Facility closing [Member] | Accrued and other current liabilities [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, current | 7,200 | ||
Facility closing [Member] | Other long-term liabilities, net [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, noncurrent | $ 15,200 | ||
[1] | As of March 26, 2017, the Company had exit-related accruals of $7.2 million recorded in Accrued and other current liabilities and $15.2 million recorded in Other long-term liabilities, net in the Consolidated Balance Sheet. |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Schedule of earnings per share, basic and diluted [Line Items] | ||
Net income attributable to Bloomin’ Brands | $ 43,910 | $ 34,475 |
Basic weighted average common shares outstanding | 103,074 | 117,930 |
Effect of diluted securities: | ||
Diluted weighted average common shares outstanding | 106,413 | 120,776 |
Basic earnings per share | $ 0.43 | $ 0.29 |
Diluted earnings per share | $ 0.41 | $ 0.29 |
Stock options [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 2,933 | 2,653 |
Nonvested restricted stock and restricted stock units [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 354 | 188 |
Nonvested performance-based share units [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 52 | 5 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
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 | 5,566 | 4,224 |
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 | 191 | 393 |
Nonvested performance-based share units [Member] | ||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities not included in the computation of earnings per share | 371 | 0 |
Stock-based Compensation Plan48
Stock-based Compensation Plans (Stock-based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 5,724 | $ 5,647 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 2,755 | 2,718 |
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 1,100,000 | |
Restricted stock and restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 2,553 | 2,044 |
Performance-based share units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 416 | $ 885 |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 300,000 | |
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 | 500,000 | |
Common stock [Member] | 2016 Incentive plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 4,046,425 |
Stock-based Compensation Plan49
Stock-based Compensation Plans (Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted) (Details) - Stock compensation plan [Member] - $ / shares | 3 Months Ended | ||
Mar. 26, 2017 | Mar. 27, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Weighted-average risk-free interest rate | [1] | 1.93% | 1.31% |
Dividend yield | [2] | 1.85% | 1.61% |
Expected term | [3] | 6 years 3 months 1 day | 6 years 1 month 6 days |
Weighted-average volatility | [4] | 33.74% | 35.21% |
Weighted-average grant date fair value per option | $ 5.05 | $ 5.21 | |
[1] | Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. | ||
[2] | Dividend yield is the level of dividends expected to 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 is based on the historical volatilities of the Company’s stock and the stock of comparable peer companies. |
Stock-based Compensation Plan50
Stock-based Compensation Plans (Unrecognized stock compensation expense and the remaining weighted-average vesting period) (Details) $ in Thousands | 3 Months Ended |
Mar. 26, 2017USD ($) | |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 23,176 |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 7 months 10 days |
Restricted stock and restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options | $ 27,308 |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 11 months 5 days |
Performance-based share units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options | $ 7,278 |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 11 days |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Prepaid expenses | $ 20,669 | $ 35,298 |
Assets held for sale | 3,732 | 1,331 |
Other current assets, net | 18,592 | 18,652 |
Total other current assets, net | 89,850 | 190,226 |
Accounts receivable - gift cards [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 11,534 | 102,664 |
Accounts receivable - vendors, net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 5,402 | 10,107 |
Accounts receivable - franchisees, net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 2,242 | 1,677 |
Accounts receivable - other, net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 27,679 | $ 20,497 |
Property, Fixtures and Equipm52
Property, Fixtures and Equipment, Net (Details) $ in Millions | 3 Months Ended |
Mar. 26, 2017USD ($)locations | |
Sale Leaseback Transaction [Line Items] | |
Number of restaurant properties sold and leased back | locations | 11 |
Proceeds from sale-leaseback transactions, investing activities | $ 40.1 |
Sale leaseback transactions, deferred gain, gross | $ 10.7 |
Do not qualify for sale-leaseback accounting [Member] | |
Sale Leaseback Transaction [Line Items] | |
Number of restaurant properties sold and leased back | locations | 1 |
Proceeds from sale-leaseback transactions, financing activities | $ 6 |
Minimum [Member] | |
Sale Leaseback Transaction [Line Items] | |
Sale leaseback transactions, lease terms | 10 years |
Maximum [Member] | |
Sale Leaseback Transaction [Line Items] | |
Sale leaseback transactions, lease terms | 15 years |
Goodwill, Net (Details)
Goodwill, Net (Details) $ in Thousands | 3 Months Ended |
Mar. 26, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 25, 2016 | $ 310,055 |
Translation adjustments | 8,120 |
Transfer to Assets held for sale | (1,677) |
Balance as of March 26, 2017 | 316,498 |
U.S. segment [Member] | |
Goodwill [Roll Forward] | |
Balance as of December 25, 2016 | 172,424 |
Translation adjustments | 0 |
Transfer to Assets held for sale | (1,677) |
Balance as of March 26, 2017 | 170,747 |
International segment [Member] | |
Goodwill [Roll Forward] | |
Balance as of December 25, 2016 | 137,631 |
Translation adjustments | 8,120 |
Transfer to Assets held for sale | 0 |
Balance as of March 26, 2017 | $ 145,751 |
Long-term Debt, net (Schedule o
Long-term Debt, net (Schedule of Long-term Debt, Net) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Mar. 26, 2017 | Mar. 27, 2016 | Dec. 25, 2016 | |||
Debt instrument [Line Items] | ||||||
Financing obligations | $ 19,591 | $ 19,595 | ||||
Capital lease obligations | 2,276 | 2,364 | ||||
Unamortized debt discount and issuance costs | (2,099) | (2,827) | ||||
Total debt and capital lease obligations | 1,002,376 | 1,089,485 | ||||
Current portion of long-term debt | (48,756) | (35,079) | ||||
Long-term debt, net | 953,620 | $ 1,054,406 | ||||
Repayments of long-term debt | $ 42,878 | $ 9,991 | ||||
Minimum [Member] | ||||||
Debt instrument [Line Items] | ||||||
Sale-leaseback transaction, imputed interest rate | 7.45% | 7.45% | ||||
Maximum [Member] | ||||||
Debt instrument [Line Items] | ||||||
Sale-leaseback transaction, imputed interest rate | 7.60% | 7.60% | ||||
Secured debt [Member] | Senior secured credit facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt, gross | $ 967,938 | $ 1,021,375 | ||||
Secured debt [Member] | Term loan A facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt, gross | $ 253,125 | $ 258,750 | ||||
Secured debt [Member] | Term loan A facility [Member] | Weighted average [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | [1] | 2.82% | 2.63% | |||
Secured debt [Member] | Term loan A-1 facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt, gross | $ 137,813 | $ 140,625 | ||||
Debt instrument, interest rate at period end | 2.95% | 2.70% | ||||
Secured debt [Member] | Revolving credit facility [Member] | ||||||
Debt instrument [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 577,000 | $ 622,000 | ||||
Secured debt [Member] | Revolving credit facility [Member] | Weighted average [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate at period end | [1] | 2.89% | 2.67% | |||
Mortgage [Member] | PRP Mortgage loan [Member] | ||||||
Debt instrument [Line Items] | ||||||
Long-term debt, gross | $ 13,670 | [2] | $ 47,202 | |||
Debt instrument, interest rate at period end | 3.45% | 3.21% | ||||
Mortgage [Member] | PRP Mortgage loan [Member] | Subsequent event [Member] | ||||||
Debt instrument [Line Items] | ||||||
Repayments of long-term debt | $ 13,670 | |||||
Unsecured debt [Member] | Notes payable, other payables [Member] | ||||||
Debt instrument [Line Items] | ||||||
Other long-term debt, noncurrent | $ 1,000 | $ 1,776 | ||||
Unsecured debt [Member] | Notes payable, other payables [Member] | Minimum [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 0.00% | 0.00% | ||||
Unsecured debt [Member] | Notes payable, other payables [Member] | Maximum [Member] | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.18% | 7.00% | ||||
[1] | Represents the weighted-average interest rate for the respective period. | |||||
[2] | In April 2017, the Company paid the remaining balance on its PRP Mortgage Loan. |
Redeemable Noncontrolling Int55
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance, beginning of period | $ 547 | $ 23,526 |
Balance, end of period | 497 | 21,007 |
Redeemable noncontrolling interests [Member] | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Foreign currency translation attributable to Redeemable noncontrolling interests | 5 | 692 |
Net (loss) income attributable to Redeemable noncontrolling interests | (55) | 311 |
Purchase of Redeemable noncontrolling interests | $ 0 | $ (3,522) |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Thousands | Apr. 21, 2017 | May 02, 2017 | Mar. 26, 2017 | Mar. 27, 2016 | Jul. 26, 2016 |
Share Repurchase Program [Line Items] | |||||
Stock repurchased and retired during period, shares | 2,887 | ||||
Stock repurchased program, average price paid, per share | $ 18.37 | ||||
Stock repurchased and retired during period, value | $ 53,053,000 | $ 75,000,000 | |||
July 2016 Share Repurchase Program [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Stock repurchase program, authorized amount | $ 300,000,000 | ||||
July 2016 Share Repurchase Program [Member] | Subsequent event [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Stock repurchased and retired during period, shares | 1,300 | ||||
Stock repurchased and retired during period, value | $ 24,700,000 | ||||
Stock repurchase program, authorized repurchase amount canceled | $ 52,300,000 | ||||
2017 Share Repurchase Program [Member] | Subsequent event [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Stock repurchase program, authorized amount | $ 250,000,000 | ||||
Stock repurchase program expiration date | Oct. 21, 2018 |
Stockholders' Equity (Dividend)
Stockholders' Equity (Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2017 | Mar. 26, 2017 | Mar. 27, 2016 | |
Dividends Payable [Line Items] | |||
Common stock, dividends, per share, cash paid | $ 0.08 | ||
Dividends, common stock, cash | $ 8,254 | $ 8,238 | |
Common stock, dividends per share | $ 0.08 | $ 0.07 | |
Subsequent event [Member] | |||
Dividends Payable [Line Items] | |||
Common stock, dividends per share | $ 0.08 | ||
Dividends payable, date to be paid | May 19, 2017 | ||
Dividends payable, date of record | May 8, 2017 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Accumulated other comprehensive income (loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (89,681) | $ (111,143) |
Accumulated translation adjustment [Member] | ||
Accumulated other comprehensive income (loss) [Line Items] | ||
Accumulated other comprehensive loss | (86,932) | (107,509) |
Accumulated net loss from designated or qualifying cash flow hedges [Member] | ||
Accumulated other comprehensive income (loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (2,749) | $ (3,634) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2017 | Mar. 27, 2016 | ||
Accumulated other comprehensive income (loss) [Line Items] | |||
Unrealized gain (loss) on derivatives | $ 101 | $ (2,735) | |
Reclassification of adjustment for loss on derivatives included in Net income, net of tax | 784 | 988 | |
Other comprehensive income (loss), net of tax | 21,369 | (9,724) | |
Bloomin' Brands [Member] | |||
Accumulated other comprehensive income (loss) [Line Items] | |||
Foreign currency translation adjustment, attributable to parent | 20,577 | (7,983) | |
Unrealized gain (loss) on derivatives | [1] | 101 | (2,735) |
Reclassification of adjustment for loss on derivatives included in Net income, net of tax | [2] | 784 | 988 |
Other comprehensive income (loss), derivatives qualifying as hedges, net of tax | 885 | (1,747) | |
Other comprehensive income (loss), net of tax | 21,462 | (9,730) | |
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, tax | (100) | 1,700 | |
Reclassification of adjustment for loss on derivatives included in net income, tax | 500 | 600 | |
Non-controlling interests [Member] | |||
Accumulated other comprehensive income (loss) [Line Items] | |||
Other comprehensive income (loss), net of tax | (93) | 6 | |
Other comprehensive (loss) income, foreign currency transaction and translation gain (loss) arising during period, net of tax | (93) | 6 | |
Redeemable noncontrolling interests [Member] | |||
Accumulated other comprehensive income (loss) [Line Items] | |||
Other comprehensive income (loss), net of tax | 5 | 692 | |
Other comprehensive (loss) income, foreign currency transaction and translation gain (loss) arising during period, net of tax | $ 5 | $ 692 | |
[1] | Unrealized loss on derivatives is net of tax of ($0.1) million and $1.7 million for the thirteen weeks ended March 26, 2017 and March 27, 2016, respectively. | ||
[2] | Reclassifications of adjustments for losses on derivatives are net of tax of $0.5 million and $0.6 million for the thirteen weeks ended March 26, 2017 and March 27, 2016, respectively. |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities (Cash flow hedges of interest rate risk) (Details) - Interest rate swap [Member] - Designated as hedging instrument [Member] | Sep. 09, 2014USD ($)counterparties | Mar. 31, 2018USD ($) |
Derivative [Line Items] | ||
Derivative, inception date | Sep. 9, 2014 | |
Derivative agreements, number of counterparties | counterparties | 8 | |
Derivative, notional amount | $ 400,000,000 | |
Derivative, effective date | Jun. 30, 2015 | |
Derivative, maturity date | May 16, 2019 | |
Derivative, average fixed interest rate | 2.02% | |
Interest expense [Member] | Scenario, forecast [Member] | ||
Derivative [Line Items] | ||
Derivative instruments, reclassification from AOCI to income, next twelve months, estimated | $ 3,300,000 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative [Line Items] | ||
Derivative, variable interest rate | 30-day LIBOR |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Fair value and classification of interest rate swaps) (Details) - Interest rate swap [Member] - Designated as hedging instrument [Member] - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 | |
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 4,538 | $ 5,967 |
Accrued and other current liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | 3,081 | 3,968 | |
Accrued interest expense, interest rate swaps | 372 | 408 | |
Other long-term liabilities, net [Member] | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | $ 1,457 | $ 1,999 | |
[1] | See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities (Effects of the interest rate swap on the Consolidated Statement of Operations and Comprehensive Income (Loss)) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 26, 2017USD ($)counterparties | Mar. 27, 2016USD ($) | Dec. 25, 2016USD ($) | ||
Derivative [Line Items] | ||||
Total effects of interest rate swaps on Net income | $ (784) | $ (988) | ||
Interest rate swap [Member] | Designated as hedging instrument [Member] | ||||
Derivative [Line Items] | ||||
Total effects of interest rate swaps on Net income | (784) | (988) | ||
Derivative, net hedge ineffectiveness gain (loss) | $ 0 | 0 | ||
Number of derivatives with each counterparty | counterparties | 1 | |||
Derivative, net liability position, aggregate fair value | $ 4,900 | $ 6,400 | ||
Derivative, termination value | 4,900 | $ 6,400 | ||
Interest rate swap [Member] | Designated as hedging instrument [Member] | Interest expense [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap expense recognized in Interest expense, net | [1] | (1,265) | (1,614) | |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Income tax expense [Member] | ||||
Derivative [Line Items] | ||||
Income tax benefit in Provision for income taxes | $ 481 | $ 626 | ||
[1] | During the thirteen weeks ended March 26, 2017 and March 27, 2016, the Company did not recognize any gain or loss as a result of hedge ineffectiveness. |
Fair Value Measurements (Fair v
Fair Value Measurements (Fair value measurements on a recurring basis) (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 16,839 | $ 21,767 |
Liabilities at fair value | 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 |
Liabilities at fair value | 4,709 | 6,124 |
Reported value measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | 16,839 | 21,767 |
Liabilities at fair value | 4,709 | 6,124 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 0 | 0 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Accrued and other current liabilities [Member] | Commodity [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 0 | 0 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, noncurrent | 0 | 0 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 88 | 90 |
Restricted cash equivalents, fair value disclosure | 553 | 552 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 15,946 | 18,607 |
Restricted cash equivalents, fair value disclosure | 252 | 2,518 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 3,081 | 3,968 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Accrued and other current liabilities [Member] | Commodity [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 171 | 157 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, noncurrent | 1,457 | 1,999 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Restricted cash equivalents, fair value disclosure | 0 | 0 |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Restricted cash equivalents, fair value disclosure | 0 | 0 |
Fair value, measurements, recurring [Member] | Reported value measurement [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 3,081 | 3,968 |
Fair value, measurements, recurring [Member] | Reported value measurement [Member] | Accrued and other current liabilities [Member] | Commodity [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, current | 171 | 157 |
Fair value, measurements, recurring [Member] | Reported value measurement [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, noncurrent | 1,457 | 1,999 |
Fair value, measurements, recurring [Member] | Reported value measurement [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 88 | 90 |
Restricted cash equivalents, fair value disclosure | 553 | 552 |
Fair value, measurements, recurring [Member] | Reported value measurement [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 15,946 | 18,607 |
Restricted cash equivalents, fair value disclosure | $ 252 | $ 2,518 |
Fair Value Measurements (Fair64
Fair Value Measurements (Fair value measurements on a nonrecurring basis) (Details) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017USD ($) | ||
Fair value, measurements, nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impairment losses | $ 920 | |
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 | 70 | |
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 | 850 | |
Reported value measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,467 | [1] |
Reported value measurement [Member] | Assets held for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 400 | [1] |
Reported value measurement [Member] | Property, plant and equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,067 | [1] |
Fair value, inputs, level 2 [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 | 400 | |
Fair value, inputs, level 2 [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 | $ 1,067 | |
[1] | Carrying value approximates fair value with all assets measured using third-party market appraisals (Level 2). |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying value and fair value of debt by hierarchy level) (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 | |
Secured debt [Member] | Term loan A facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | $ 253,125 | $ 258,750 | |
Secured debt [Member] | Term loan A-1 facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 137,813 | 140,625 | |
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 | 577,000 | 622,000 | |
Secured debt [Member] | Fair value, inputs, level 2 [Member] | Term loan A facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 252,176 | 257,780 | |
Secured debt [Member] | Fair value, inputs, level 2 [Member] | Term loan A-1 facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 137,296 | 140,098 | |
Secured debt [Member] | Fair value, inputs, level 2 [Member] | Revolving credit facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 572,673 | 617,335 | |
Secured debt [Member] | Fair value, inputs, level 3 [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 | |
Secured debt [Member] | Fair value, inputs, level 3 [Member] | Term loan A-1 facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 0 | 0 | |
Secured debt [Member] | Fair value, inputs, level 3 [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 | |
Mortgage [Member] | PRP Mortgage loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 13,670 | [1] | 47,202 |
Mortgage [Member] | Fair value, inputs, level 2 [Member] | PRP Mortgage loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 0 | 0 | |
Mortgage [Member] | Fair value, inputs, level 3 [Member] | PRP Mortgage loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans payable, fair value disclosure | 13,670 | 47,202 | |
Unsecured debt [Member] | Notes payable, other payables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other notes payable | 1,000 | 1,776 | |
Unsecured debt [Member] | Fair value, inputs, level 2 [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 | |
Unsecured debt [Member] | Fair value, inputs, level 3 [Member] | Notes payable, other payables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes payable, fair value disclosure | $ 981 | $ 1,659 | |
[1] | In April 2017, the Company paid the remaining balance on its PRP Mortgage Loan. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 25.10% | 24.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | ||
Nov. 30, 2015employee | Mar. 26, 2017USD ($) | Dec. 25, 2016USD ($) | |
Other Commitments [Line Items] | |||
Estimated litigation liability | $ 5.9 | $ 3.5 | |
Sears [Member] | Pending litigation [Member] | |||
Other Commitments [Line Items] | |||
Loss contingency, accrual | $ 2.4 | ||
Sears [Member] | Pending litigation [Member] | Employee [Member] | |||
Other Commitments [Line Items] | |||
Number of employees party to lawsuit | employee | 2 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended | |
Mar. 26, 2017USD ($)reportable_segment | Mar. 27, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | reportable_segment | 2 | |
Segment reporting information [Line Items] | ||
Revenues | $ 1,143,823,000 | $ 1,164,188,000 |
Intersegment eliminations [Member] | ||
Segment reporting information [Line Items] | ||
Revenues | $ 0 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 1,143,823 | $ 1,164,188 |
U.S. segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 1,032,618 | 1,043,779 |
International segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 111,205 | $ 120,409 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income from operations | $ 69,130 | $ 86,684 |
Loss on defeasance, extinguishment and modification of debt | 0 | (26,580) |
Other expense, net | (51) | (19) |
Interest expense, net | (9,141) | (12,875) |
Income before provision for income taxes | 59,938 | 47,210 |
Operating segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income from operations | 109,748 | 129,188 |
Operating segments [Member] | U.S. segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income from operations | 100,946 | 117,839 |
Operating segments [Member] | International segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income from operations | 8,802 | 11,349 |
Corporate, non-segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income from operations | $ (40,618) | $ (42,504) |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | $ 46,590 | $ 47,651 |
Operating segments [Member] | U.S. segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | 36,600 | 38,202 |
Operating segments [Member] | International segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | 6,500 | 6,547 |
Corporate, non-segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | $ 3,490 | $ 2,902 |