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 31, 2017 . Recently Adopted Financial Accounting Standards - On January 1, 2018, the Company elected to early adopt Accounting Standards Update (“ASU”) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” (“ASU No. 2017-04”) on a prospective basis. 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 is calculated as the amount a reporting unit’s carrying value exceeds its calculated fair value. The adoption of ASU No. 2017-04 did not impact the Company’s Consolidated Financial Statements. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue Recognition (Topic 606), Revenue from Contracts with Customers” (“ASU No. 2014-09”) using the full retrospective transition method. 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. The standard also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. Under the new standard, the Company recognizes gift card breakage proportional to redemptions, which are highest in the Company’s first fiscal quarter. Previously, under the remote method, the majority of breakage revenue was recorded in the Company’s fourth fiscal quarter corresponding with the timing of the original gift card sale. Advertising fees charged to franchisees, which were previously recorded as a reduction to Other restaurant operating expenses, are recognized as Franchise revenue. In addition, initial franchise and renewal fees are recognized over the term of the franchise agreements. As part of the adoption of ASU No. 2014-09, the Company applied the practical expedient to use the portfolio approach to assess contracts and performance obligations. In connection with adoption of ASU No. 2014-09, a cumulative effect adjustment of $33.1 million , net of tax, was recorded as a credit to the ending balance of Accumulated deficit as of December 27, 2015. The following table includes a restatement of the Company’s Consolidated Statement of Operations and Comprehensive Income for the thirteen weeks ended March 26, 2017 for the retrospective adoption of ASU No. 2014-09: THIRTEEN WEEKS ENDED MARCH 26, 2017 (dollars in thousands, except per share data) AS REPORTED 2014-09 IMPACT AS RESTATED Revenues Restaurant sales $ 1,135,488 $ 8,343 $ 1,143,831 Franchise and other revenues 8,335 2,545 10,880 Total revenues $ 1,143,823 $ 10,888 $ 1,154,711 Costs and expenses Other restaurant operating $ 247,940 $ 3,184 $ 251,124 Income from operations $ 69,130 $ 7,704 $ 76,834 Income before provision for income taxes $ 59,938 $ 7,704 $ 67,642 Provision for income taxes $ 15,015 $ 2,989 $ 18,004 Net income $ 44,923 $ 4,715 $ 49,638 Net income attributable to Bloomin’ Brands $ 43,910 $ 4,715 $ 48,625 Basic earnings per share $ 0.43 $ 0.05 $ 0.47 Diluted earnings per share $ 0.41 $ 0.04 $ 0.46 The following table includes a restatement of the Company’s Consolidated Balance Sheet as of December 31, 2017 for the retrospective adoption of ASU No. 2014-09: DECEMBER 31, 2017 (dollars in thousands) AS REPORTED 2014-09 IMPACT AS RESTATED ASSETS Deferred income tax assets, net $ 71,499 $ (11,013 ) $ 60,486 Total assets $ 2,572,907 $ (11,013 ) $ 2,561,894 LIABILITIES AND STOCKHOLDERS’ EQUITY Unearned revenue Deferred gift card revenue $ 371,455 $ (47,827 ) $ 323,628 Deferred loyalty revenue 6,667 — 6,667 Deferred franchise fees - current 105 356 461 Total Unearned revenue 378,227 (47,471 ) 330,756 Total current liabilities 860,863 (47,471 ) 813,392 Other long-term liabilities, net (1) 205,745 4,698 210,443 Total liabilities 2,523,436 (42,773 ) 2,480,663 Bloomin’ Brands Stockholders’ Equity Accumulated deficit (944,951 ) 31,760 (913,191 ) Total Bloomin’ Brands stockholders’ equity $ 38,582 $ 31,760 $ 70,342 Total stockholders’ equity 49,471 31,760 81,231 Total liabilities and stockholders’ equity $ 2,572,907 $ (11,013 ) $ 2,561,894 ____________________ (1) Includes the non-current portion of deferred franchise fees. See Note 2 - Revenue Recognition for required disclosures under ASU No. 2014-09. Effective June 26, 2017, the Company adopted 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 are now included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the statements of cash flows. Using the retrospective transition method required under the standard, the Company has adjusted the presentation of its Condensed Consolidated Statements of Cash Flows for all periods presented. The adoption of ASU No. 2016-18 did not have any other impact on the Company’s Consolidated Financial Statements. The following table provides additional details by financial statement line item of the restated presentation in the Company’s Condensed Consolidated Statement of Cash Flows for the thirteen weeks ended March 26, 2017 : THIRTEEN WEEKS ENDED MARCH 26, 2017 (dollars in thousands) AS REPORTED 2016-18 IMPACT AS RESTATED Cash flows used in investing activities: Decrease in restricted cash $ 14,079 $ (14,079 ) $ — Increase in restricted cash $ (5,873 ) $ 5,873 $ — Net cash used in investing activities $ (12,375 ) $ (8,206 ) $ (20,581 ) Net decrease in cash, cash equivalents and restricted cash $ (28,793 ) $ (8,205 ) $ (36,998 ) Cash, cash equivalents and restricted cash as of the beginning of the period 127,176 9,010 136,186 Cash, cash equivalents and restricted cash as of the end of the period $ 98,383 $ 805 $ 99,188 Recently Issued Financial Accounting Standards Not Yet Adopted - In February 2016, the Financial Accounting Standards Board (“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 2019 and must be adopted using a modified retrospective approach. The Company has begun evaluating and planning for adoption and implementation of ASU No. 2016-02, including selecting a new lease accounting system, evaluating practical expedients and accounting policy elections, and assessing the overall financial statement impact. The Company expects the adoption of ASU No. 2016-02 to have a significant impact on its Consolidated Balance Sheets due to recognition of right-of-use assets and lease liabilities for operating leases. The Company’s evaluation of ASU No. 2016-02 is ongoing and may identify additional impacts on its Consolidated Financial Statements and related disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU No. 2017-12”) which provides guidance for reporting the economic results of hedging activities and to simplify the disclosures of risk exposures and hedging strategies. ASU No. 2017-12 will be effective for the Company in 2019, with early adoption permitted and is not expected to have a material impact on the Company’s Consolidated Financial Statements and related disclosures. 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. |