Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 27, 2018 | Nov. 02, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MARCUS CORP | |
Entity Central Index Key | 62,234 | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | MCS | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,986,597 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,346,417 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2018 | Dec. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 7,346 | $ 16,248 |
Restricted cash | 5,283 | 4,499 |
Accounts and notes receivable, net of reserves of $232 and $161, respectively | 26,006 | 27,230 |
Refundable income taxes | 3,531 | 15,335 |
Other current assets | 15,202 | 13,409 |
Total current assets | 57,368 | 76,721 |
Property and equipment: | ||
Land and improvements | 149,172 | 146,887 |
Buildings and improvements | 768,384 | 759,166 |
Leasehold improvements | 98,665 | 93,451 |
Furniture, fixtures and equipment | 362,853 | 351,879 |
Construction in progress | 9,224 | 5,269 |
Total property and equipment | 1,388,298 | 1,356,652 |
Less accumulated depreciation and amortization | 541,161 | 496,588 |
Net property and equipment | 847,137 | 860,064 |
Other assets: | ||
Investments in joint ventures | 4,751 | 4,239 |
Goodwill | 43,388 | 43,492 |
Other | 34,042 | 33,281 |
Total other assets | 82,181 | 81,012 |
TOTAL ASSETS | 986,686 | 1,017,797 |
Current liabilities: | ||
Accounts payable | 23,108 | 51,541 |
Taxes other than income taxes | 17,675 | 19,638 |
Accrued compensation | 16,732 | 15,627 |
Other accrued liabilities | 46,269 | 53,291 |
Current portion of capital lease obligations | 7,120 | 7,570 |
Current maturities of long-term debt | 10,077 | 12,016 |
Total current liabilities | 120,981 | 159,683 |
Capital lease obligations | 22,989 | 28,282 |
Long-term debt | 262,149 | 289,813 |
Deferred income taxes | 38,374 | 38,233 |
Deferred compensation and other | 59,157 | 56,662 |
Shareholders' equity attributable to The Marcus Corporation | ||
Preferred Stock, $1 par; authorized 1,000,000 shares; none issued | 0 | 0 |
Capital in excess of par | 63,138 | 61,452 |
Retained earnings | 433,022 | 403,206 |
Accumulated other comprehensive loss | (6,749) | (7,425) |
Stockholders' Equity before Treasury Stock | 520,601 | 488,423 |
Less cost of Common Stock in treasury (2,861,396 shares at September 27, 2018 and 3,335,745 shares at December 28, 2017) | (37,670) | (43,399) |
Total shareholders' equity attributable to The Marcus Corporation | 482,931 | 445,024 |
Noncontrolling interest | 105 | 100 |
Total equity | 483,036 | 445,124 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 986,686 | 1,017,797 |
Common Stock [Member] | ||
Shareholders' equity attributable to The Marcus Corporation | ||
Common Stock | 22,842 | 22,656 |
Class B Common Stock [Member] | ||
Shareholders' equity attributable to The Marcus Corporation | ||
Common Stock | $ 8,348 | $ 8,534 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2018 | Dec. 28, 2017 |
Accounts and notes receivable, reserves | $ 232 | $ 161 |
Preferred Stock, par (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, authorized | 1,000,000 | 1,000,000 |
Preferred Stock, issued | 0 | 0 |
Cost of Common Stock in treasury, shares | 2,861,396 | 3,335,745 |
Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 50,000,000 | 50,000,000 |
Common Stock, issued | 22,841,846 | 22,655,517 |
Class B Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 33,000,000 | 33,000,000 |
Common Stock, issued | 8,347,667 | 8,533,996 |
Common Stock, outstanding | 8,347,667 | 8,533,996 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | ||
Revenues: | |||||
Revenues | $ 161,511 | $ 153,818 | $ 506,312 | $ 464,547 | |
Cost reimbursements | 9,088 | 8,557 | 25,776 | 23,424 | |
Total revenues | [1] | 170,599 | 162,375 | 532,088 | 487,971 |
Costs and expenses: | |||||
Advertising and marketing | 6,178 | 6,296 | 17,317 | 17,880 | |
Administrative | 16,813 | 16,448 | 52,653 | 50,370 | |
Depreciation and amortization | 14,569 | 12,993 | 42,899 | 37,544 | |
Rent | 2,815 | 3,113 | 8,351 | 9,718 | |
Property taxes | 5,018 | 5,052 | 15,011 | 14,575 | |
Other operating expenses | 8,969 | 8,300 | 27,032 | 24,255 | |
Reimbursed costs | 9,088 | 8,557 | 25,776 | 23,424 | |
Total costs and expenses | 148,186 | 140,512 | 463,552 | 428,486 | |
Operating income | 22,413 | 21,863 | 68,536 | 59,485 | |
Other income (expense): | |||||
Investment income | 442 | 119 | 433 | 229 | |
Interest expense | (3,180) | (3,367) | (10,000) | (9,454) | |
Other expense | (497) | (428) | (1,489) | (1,284) | |
Loss on disposition of property, equipment and other assets | (359) | (449) | (767) | (420) | |
Equity earnings (losses) from unconsolidated joint ventures, net | 30 | (12) | 282 | 75 | |
Nonoperating Income (Expense), Total | (3,564) | (4,137) | (11,541) | (10,854) | |
Earnings before income taxes | 18,849 | 17,726 | 56,995 | 48,631 | |
Income taxes | 2,626 | 6,908 | 12,254 | 18,571 | |
Net earnings | 16,223 | 10,818 | 44,741 | 30,060 | |
Net earnings (loss) attributable to noncontrolling interests | (8) | (160) | 70 | (495) | |
Net earnings attributable to The Marcus Corporation | 16,231 | 10,978 | 44,671 | 30,555 | |
Theatre admissions [Member] | |||||
Revenues: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 52,422 | 50,246 | 185,035 | 166,222 | |
Theatre operations [Member] | |||||
Costs and expenses: | |||||
Cost of Goods and Services Sold | 48,644 | 44,403 | 164,452 | 145,844 | |
Rooms [Member] | |||||
Revenues: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 34,467 | 32,785 | 84,256 | 82,844 | |
Costs and expenses: | |||||
Cost of Goods and Services Sold | 10,958 | 10,658 | 31,026 | 30,117 | |
Theatre concessions [Member] | |||||
Revenues: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 35,476 | 33,290 | 123,687 | 109,365 | |
Costs and expenses: | |||||
Cost of Goods and Services Sold | 10,168 | 9,567 | 35,105 | 30,666 | |
Food and beverage [Member] | |||||
Revenues: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 19,333 | 18,670 | 53,972 | 52,487 | |
Costs and expenses: | |||||
Cost of Goods and Services Sold | 14,966 | 15,125 | 43,930 | 44,093 | |
Other revenues [Member] | |||||
Revenues: | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 19,813 | $ 18,827 | $ 59,362 | $ 53,629 | |
Common Stock [Member] | |||||
Net earnings per share - basic: | |||||
Common Stock | $ 0.60 | $ 0.41 | $ 1.65 | $ 1.14 | |
Net earnings per share - diluted: | |||||
Common Stock | 0.56 | 0.39 | 1.56 | 1.08 | |
Dividends per share: | |||||
Common Stock | 0.150 | 0.125 | 0.450 | 0.375 | |
Common Class B [Member] | |||||
Net earnings per share - basic: | |||||
Common Stock | 0.52 | 0.36 | 1.47 | 1.02 | |
Net earnings per share - diluted: | |||||
Common Stock | 0.51 | 0.37 | 1.44 | 1.01 | |
Dividends per share: | |||||
Common Stock | $ 0.136 | $ 0.114 | $ 0.409 | $ 0.341 | |
[1] | Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $8,870); $8,557 for the 13 weeks ended September 28, 2017 (Theatres - $500, Hotels/Resorts - $8,057); $25,776 for the 39 weeks ended September 27, 2018 (Theatres - $1,084, Hotels/Resorts - $24,692); and $23,424 for the 39 weeks ended September 28, 2017 (Theatres - $1,659, Hotels/Resorts - $21,765). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | ||
Net earnings | $ 16,223 | $ 10,818 | $ 44,741 | $ 30,060 | |
Other comprehensive income (loss), net of tax: | |||||
Change in unrealized gain on available for sale investments, net of tax benefit of $0, $0, $0 and $9, respectively | 0 | 0 | 0 | (14) | |
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect of $42, $125, $35 and $106, respectively | 113 | 54 | 340 | 161 | |
Fair market value adjustment of interest rate swap, net of tax effect of $70, $70, $0 and $0, respectively | 192 | 0 | 191 | 0 | |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect of $17, $49, $0 and $0, respectively | 46 | 0 | 134 | [1] | 0 |
Other comprehensive income | 351 | 54 | 665 | 147 | |
Comprehensive income | 16,574 | 10,872 | 45,406 | 30,207 | |
Comprehensive income (loss) attributable to noncontrolling interests | (8) | (160) | 70 | (495) | |
Comprehensive income attributable to The Marcus Corporation | $ 16,582 | $ 11,032 | $ 45,336 | $ 30,702 | |
[1] | Amount is included in interest expense in the consolidated statements of earnings. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Change in unrealized gain on available for sale investments, net of tax benefit | $ 0 | $ 0 | $ 0 | $ 9 |
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect | 42 | 35 | 125 | 106 |
Fair market value adjustment of interest rate swap, net of tax benefit | 70 | 0 | 70 | 0 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect | $ 17 | $ 0 | $ 49 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2018 | Sep. 28, 2017 | |
OPERATING ACTIVITIES: | ||
Net earnings | $ 44,741 | $ 30,060 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Earnings on investments in joint ventures | (282) | (75) |
Distributions from joint ventures | 65 | 351 |
Loss on disposition of property, equipment and other assets | 767 | 420 |
Amortization of favorable lease right | 250 | 250 |
Depreciation and amortization | 42,899 | 37,544 |
Amortization of debt issuance costs | 216 | 209 |
Shared-based compensation | 1,950 | 1,867 |
Deferred income taxes | 1 | 4,231 |
Deferred compensation and other | 2,949 | 1,682 |
Contribution of the Company's stock to savings and profit-sharing plan | 1,130 | 1,024 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | 1,224 | (7,896) |
Other current assets | (1,793) | (2,220) |
Accounts payable | (18,620) | 1 |
Income taxes | 12,749 | (8,686) |
Taxes other than income taxes | (1,963) | 286 |
Accrued compensation | 1,105 | (1,036) |
Other accrued liabilities | (10,318) | (7,076) |
Total adjustments | 32,329 | 20,876 |
Net cash provided by operating activities | 77,070 | 50,936 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (45,144) | (87,265) |
Proceeds from disposals of property, equipment and other assets | 86 | 4,558 |
Decrease (increase) in other assets | (743) | 584 |
Contribution in joint venture | (295) | 0 |
Net cash used in investing activities | (46,096) | (82,123) |
Debt transactions: | ||
Proceeds from borrowings on revolving credit facilities | 159,000 | 254,000 |
Repayment of borrowings on revolving credit facilities | (177,000) | (236,500) |
Proceeds from borrowings on long-term debt | 0 | 65,000 |
Principal payments on long-term debt | (11,711) | (35,894) |
Debt issuance costs | 0 | (370) |
Repayments of capital lease obligations | (1,375) | (782) |
Equity transactions: | ||
Treasury stock transactions, except for stock options | (2,566) | (463) |
Exercise of stock options | 6,902 | 2,083 |
Dividends paid | (12,277) | (10,122) |
Distributions to noncontrolling interest | (65) | 0 |
Net cash provided by (used in) financing activities | (39,092) | 36,952 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (8,118) | 5,765 |
Cash, cash equivalents and restricted cash at beginning of period | 20,747 | 8,705 |
Cash, cash equivalents and restricted cash at end of period | 12,629 | 14,470 |
Supplemental Information: | ||
Interest paid, net of amounts capitalized | 10,321 | 9,354 |
Income taxes paid (refunded) | (448) | 23,025 |
Change in accounts payable for additions to property and equipment | $ (9,813) | $ 8,942 |
General
General | 9 Months Ended |
Sep. 27, 2018 | |
General [Abstract] | |
General | 1. General Basis of Presentation – The unaudited consolidated financial statements for the 13 and 39 weeks ended September 27, 2018 and September 28, 2017 have been prepared by the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the unaudited interim financial information at September 27, 2018, and for all periods presented, have been made. The results of operations during the interim periods are not necessarily indicative of the results of operations for the entire year or other interim periods. However, the unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2017. Immaterial Restatement of Prior Year Financial Statements – Beginning in the fiscal 2018 first quarter, the Company began appropriately presenting cost reimbursements and reimbursed costs on a gross basis and presented two new line items in the consolidated statements of earnings. These cost reimbursements and reimbursed costs were previously reported on a net basis. Reimbursed costs primarily consist of payroll and related expenses at managed properties where the Company is the employer and may include certain operational and administrative costs as provided for in the Company's contracts with owners. These costs are reimbursed back to the Company. As these costs have no added markup, the revenue and related expense have no impact on operating income or net earnings. Cost reimbursements and reimbursed costs, which totaled $8,557,000 and $23,424,000 for the 13 and 39 weeks ended September 28, 2017, respectively, have been separately presented in the prior year statement of earnings to correct the prior year presentation. The Company believes this correction is immaterial to the consolidated financial statements. Accounting Policies – Refer to the Company’s audited consolidated financial statements (including footnotes) for the fiscal year ended December 28, 2017, contained in the Company’s Annual Report on Form 10-K for such year, for a description of the Company’s accounting policies. During the 39 weeks ended September 27, 2018, there were no significant changes made to the Company’s significant accounting policies other than the changes attributable to the adoption of the Financial Accounting Standards Board Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers , which was adopted on December 29, 2017. These revenue recognition policy updates are applied prospectively in the Company’s financial statements from December 29, 2017 forward. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical periods. Depreciation and Amortization – Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the estimated useful lives of the assets or any related lease terms. Depreciation expense totaled $14,556,000 and $43,037,000 for the 13 and 39 weeks ended September 27, 2018, respectively, and $12,946,000 and $37,368,000 for the 13 and 39 weeks ended September 28, 2017, respectively. Accumulated Other Comprehensive Loss – Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: Interest Rate Swaps Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 28, 2017 $ – $ (11 ) $ (7,414 ) $ (7,425 ) Amount reclassified to retained earnings on December 29, 2017 in connection with the adoption of ASU No. 2016-01 – 11 – 11 Balance at December 29, 2017 – – (7,414 ) (7,414 ) Amortization of the net actuarial loss and prior service credit – – 340 340 Other comprehensive income before reclassifications 191 – – 191 Amounts reclassified from accumulated other comprehensive loss 134 (1) – – 134 Other comprehensive income 325 – 340 665 Balance at September 27, 2018 $ 325 $ – $ (7,074 ) $ (6,749 ) (1) Amount is included in interest expense in the consolidated statements of earnings. Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 29, 2016 $ 3 $ (5,069 ) $ (5,066 ) Change in unrealized gain on available for sale investments (14 ) – (14 ) Amortization of net actuarial loss and prior service credit – 161 161 Net other comprehensive income (loss) (14 ) 161 147 Balance at September 28, 2017 $ (11 ) $ (4,908 ) $ (4,919 ) Earnings Per Share - Net earnings per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options using the treasury method. Convertible Class B Common Stock is reflected on an if-converted basis. The computation of the diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock, while the diluted net earnings per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings for each period are allocated based on the proportionate share of entitled cash dividends. The computation of diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock and, as such, the undistributed earnings are equal to net earnings for that computation. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share for net earnings and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 16,231 $ 10,978 $ 44,671 $ 30,555 Denominator: Denominator for basic EPS 28,180 27,825 28,028 27,773 Effect of dilutive employee stock options 638 525 606 637 Denominator for diluted EPS 28,818 28,350 28,634 28,410 Net earnings per share - basic: Common Stock $ 0.60 $ 0.41 $ 1.65 $ 1.14 Class B Common Stock $ 0.52 $ 0.36 $ 1.47 $ 1.02 Net earnings per share - diluted: Common Stock $ 0.56 $ 0.39 $ 1.56 $ 1.08 Class B Common Stock $ 0.51 $ 0.37 $ 1.44 $ 1.01 Equity – Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interests for the 39 weeks ended September 27, 2018 and September 28, 2017 was as follows: Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 28, 2017 $ 445,024 $ 100 Net earnings attributable to The Marcus Corporation 44,671 – Net earnings attributable to noncontrolling interests – 70 Distributions to noncontrolling interests – (65 ) Cash dividends (12,277 ) – Exercise of stock options 6,902 – Savings and profit sharing contribution 1,130 – Treasury stock transactions, except for stock options (2,566 ) – Share-based compensation 1,950 – Cumulative effect of adopting ASU No. 2014-09, net of tax (2,568 ) – Other comprehensive income, net of tax 665 – Balance at September 27, 2018 $ 482,931 $ 105 Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 29, 2016 $ 390,112 $ 1,535 Net earnings attributable to The Marcus Corporation 30,555 – Net loss attributable to noncontrolling interests – (495 ) Cash dividends (10,122 ) – Exercise of stock options 2,083 – Savings and profit sharing contribution 1,024 – Treasury stock transactions, except for stock options (463 ) – Share-based compensation 1,867 – Other comprehensive income, net of tax 147 – Balance at September 28, 2017 $ 415,203 $ 1,040 Fair Value Measurements – Certain financial assets and liabilities are recorded at fair value in the consolidated financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 – Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At September 27, 2018 and December 28, 2017, respectively, the Company’s $5,762,000 and $4,053,000 of debt and equity securities were valued using Level 1 pricing inputs and were included in other current assets. Level 2 – Assets or liabilities for which fair value is based on pricing inputs that were either directly or indirectly observable as of the reporting date. At September 27, 2018 and December 28, 2017, respectively, the $444,000 and $13,000 asset related to the Company’s interest rate swap contracts was valued using Level 2 pricing inputs. Level 3 – Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At September 27, 2018 and December 28, 2017, none of the Company’s fair value measurements were valued using Level 3 pricing inputs. Defined Benefit Plan – The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands) Service cost $ 231 $ 192 $ 694 $ 574 Interest cost 341 339 1,023 1,017 Net amortization of prior service cost and actuarial loss 156 89 466 267 Net periodic pension cost $ 728 $ 620 $ 2,183 $ 1,858 Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. New Accounting Pronouncements Leases (Topic 842) Leases (Topic 842): Targeted Improvements, In conjunction with the adoption of the new standard, companies are able to elect several practical expedients to aid in the transition to Topic 842. The following three practical expedients must all be elected together, and the Company intends to elect these practical expedients upon adoption: · An entity need not reassess whether any expired or existing contracts are or contain leases. · An entity need not reassess the lease classification for any expired or existing leases. · An entity need not reassess initial direct costs for any existing leases. The Company continues to finalize its inventory of leases, assess the additional practical expedients and analyze financial reporting implications. Upon adoption, the most significant impact of the amendments in ASU No. 2016-02 will be the recognition of the new right-of-use assets and lease liabilities for assets currently subject to operating leases. The Company believes that the adoption of ASU No. 2016-02 will have a material impact on its consolidated balance sheet, but the adoption is not expected to have a material effect on its consolidated results of operations or cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for the Company in fiscal 2020 and must be applied prospectively. The Company does not believe the new standard will have a material effect on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 29, 2017, the Company adopted and applied to all contracts ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company elected the modified retrospective method for the adoption of ASU No. 2014-09 and its related ASU amendments. Under this method, the Company recognized the cumulative effect of the changes in retained earnings at the date of adoption, but did not restate the 13 or 39 weeks ended September 28, 2017, which continues to be reported under the accounting standards in effect for that time period. The Company performed a review of the requirements of ASU No. 2014-09 and related ASUs in preparation for adoption of the new standard. The Company reviewed its key revenue streams and related customer contracts and has applied the five-step model of the standard to these revenue streams and compared the results to its current accounting practices. The majority of the Company’s revenues continue to be recognized in a manner consistent with historical practice. See Note 2 for further discussion. On December 29, 2017, the Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which primarily affects the accounting for equity investments, financial liabilities under fair value option, and the presentation and disclosure requirements of financial instruments. Upon adoption, the Company made an immaterial cumulative effect adjustment to reclassify the unrealized loss of an equity investment previously classified as available for sale from accumulated other comprehensive loss to opening retained earnings. All future changes in fair value for this equity security will be recognized through net earnings. In addition, the Company holds two investments that were previously accounted for under the cost method of accounting, which under ASU No. 2016-01 were deemed to not have readily determinable fair values and thus were not impacted by the adoption of ASU No. 2016-01. The adoption of this standard did not have a material impact on such investments or the Company's consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard must be applied using a retrospective transition method for each period presented. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning of period and ending of period total amount shown on the statement of cash flows. ASU No. 2016-18 was applied on a retrospective basis and prior periods were adjusted to conform to the current period’s presentation. Upon adoption, the Company recorded a $2,438,000 decrease in net cash used in investing activities for the 39 weeks ended September 28, 2017 related to reclassifying the changes in its restricted cash balance from investing activities to cash and cash equivalent balances within the consolidated statement of cash flows. On December 29, 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance and providing a more robust framework to assist reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU No. 2017-05 clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.” It also covers the transfer of nonfinancial assets to another entity in exchange for a non-controlling ownership interest in that entity. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost . The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. ASU No. 2017-07 was applied on a retrospective basis and the prior period was adjusted to conform to the current period’s presentation. During the 13 and 39 weeks ended September 28, 2017, expense of $428,000 and $1,284,000, respectively, was reclassified from operating income to other expense outside of operating income in the consolidated statement of earnings. On December 29, 2017, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , to provide clarity and reduce both the diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation . The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company early adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification 815, Derivatives and Hedging (Topic 815) . ASU No. 2017-12 is designed to improve the transparency and understandability of information about an entity’s risk management activities and to reduce the complexity of and simplifying the application of hedge accounting. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 27, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Revenue Recognition Policy Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance of obligations by transferring the promised services to the customer. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. The amount of revenue recognized reflects the consideration entitled to in exchange for those services. The disaggregation of revenues by business segment for the 13 and 39 weeks ended September 27, 2018 is as follows (in thousands): 13 Weeks Ended September 27, 2018 Reportable Segment Theatres Hotels/ Resorts Corporate Total Theatre admissions $ 52,422 $ – $ – $ 52,422 Rooms – 34,467 – 34,467 Theatre concessions 35,476 – – 35,476 Food and beverage – 19,333 – 19,333 Other revenues (1) 6,893 12,822 98 19,813 Cost reimbursements 218 8,870 – 9,088 Total revenues $ 95,009 $ 75,492 $ 98 $ 170,599 39 Weeks Ended September 27, 2018 Reportable Segment Theatres Hotels/ Resorts Corporate Total Theatre admissions $ 185,035 $ – $ – $ 185,035 Rooms – 84,256 – 84,256 Theatre concessions 123,687 – – 123,687 Food and beverage – 53,972 – 53,972 Other revenues (1) 23,591 35,453 318 59,362 Cost reimbursements 1,084 24,692 – 25,776 Total revenues $ 333,397 $ 198,373 $ 318 $ 532,088 (1) Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014-09. The Company recognizes revenue from its rooms as earned on the close of business each day. Revenue from theatre admissions, theatre concessions and food and beverage sales are recognized at the time of sale. Revenues from advanced ticket and gift card sales are recorded as deferred revenue and are recognized when tickets or gift cards are redeemed. Gift card breakage income is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Gift card breakage income is recorded in other revenues in the consolidated statements of earnings. The adoption of ASU No. 2014-09 did not have an effect on how revenue is recognized for these arrangements. Other revenues include management fees for theatres and hotels under management agreements. The management fees are recognized as earned based on the terms of the agreements. The management fees include variable consideration that is recognized based on the Company’s right to invoice as the amount invoiced corresponds directly to the value transferred to the customer. Other revenues also include family entertainment center revenues and revenues from Hotels/Resorts outlets such as spa, ski, golf and parking, each of which are recognized at the time of sale. In addition, other revenues include pre-show advertising income in the Company’s theatres. Pre-show advertising revenue includes variable consideration, primarily based on attendance levels, that is allocated to distinct time periods that make up the overall performance obligation. The adoption of ASU No. 2014-09 did not have an effect on how revenue is recognized for these arrangements. Cost reimbursements primarily consist of payroll and related expenses at managed properties where the Company is the employer and may include certain operational and administrative costs as provided for in the Company’s contracts with owners. These costs are reimbursed back to the Company. As these costs have no added markup, the revenue and related expense have no impact on operating income or net earnings. The adoption of ASU No. 2014-09 did not have an effect on how revenue is recognized for these arrangements. The timing of the Company’s revenue recognition may differ from the timing of payment by customers. However, the Company typically receives payment within a very short period of time of when the revenue is recognized. The Company records a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision for the related services, deferred revenue is recorded until the performance obligation is satisfied. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax. Adoption of ASU No. 2014-09 Due to adoption of ASU No. 2014-09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows: Balance at December 28, 2017 Cumulative Adjustment Balance at December 29, 2017 ( in thousands ) Refundable income taxes $ 15,335 $ 945 $ 16,280 Other accrued liabilities 53,291 3,296 56,587 Deferred compensation and other 56,662 217 56,879 Retained earnings 403,206 (2,568 ) 400,638 The one-time cumulative effect adjustment to the balance sheet is due to a change in accounting for the Company’s loyalty programs. The Company offers a customer loyalty program to its theatre customers called Magical Movie Rewards. The program allows members to earn points for each dollar spent and access special offers available only to members. The rewards are redeemable at any Marcus Theatre box office, concession stand or food and beverage venue. The Company also offers a customer loyalty program to its Hotels and Resorts customers which allows members to earn points for each dollar spent in its restaurants. The rewards are redeemable at any of the Company’s hotel outlets including spas, restaurants, and golf. Under ASU No. 2014-09, the portion of Theatre admission revenues, Theatre concession revenues and Food and beverage revenues attributable to loyalty points earned by customers are deferred as a reduction of these revenues until related reward redemption. Through December 28, 2017, the Company recorded the estimated incremental cost of redeeming loyalty points at the time they were earned in Advertising and marketing expense. The change had the effect of an immaterial reduction of theatre admission revenues and a corresponding immaterial increase in theatre concession revenues with an offsetting increase in other long-term liabilities based upon historical customer reward redemption patterns. In accordance with ASU No. 2014-09, the Company has concluded that it is the principal (as opposed to agent) in the arrangement with third-party internet ticketing companies in regards to sale of internet tickets to customers, and therefore, recognizes ticket fee revenue based on a gross transaction price. As such, internet ticket fee revenue is deferred and recognized when the related film exhibition takes place on a gross transaction price basis. Through December 28, 2017, the Company recorded internet ticket fee revenues net of third-party commission or service fees. The change had the effect of increasing other revenues and other operating expense but had no impact on net earnings or cash flows from operations. The adoption of ASU No. 2014-09 had the following effect on our consolidated statement of earnings for the 13 and 39 weeks ended September 27, 2018 (in thousands): For the 13 Weeks Ended September 27, 2018 For the 39 Weeks Ended September 27, 2018 As Reported ASU No. 2014-09 Impact Adjusted (1) As Reported ASU No. 2014-09 Impact Adjusted (1) Revenues: Theatre admissions $ 52,422 $ (605 ) $ 53,027 $ 185,035 $ (1,961 ) $ 186,996 Theatre concessions 35,476 503 34,973 123,687 1,467 122,220 Food and beverage 19,333 3 19,330 53,972 23 53,949 Other revenues 19,813 904 18,909 59,362 3,609 55,753 Total revenues 170,599 805 169,794 532,088 3,138 528,950 Costs and expenses: Theatre operations 48,644 165 48,479 164,452 479 163,973 Theatre concessions 10,168 159 10,009 35,105 469 34,636 Advertising and marketing 6,178 (496 ) 6,674 17,317 (1,549 ) 18,866 Other operating expenses 8,969 910 8,059 27,032 3,514 23,518 Total costs and expenses 148,186 738 147,448 463,552 2,913 460,639 Operating income 22,413 67 22,346 68,536 225 68,311 Income taxes 2,626 9 2,617 12,254 48 12,206 Net earnings attributable to The Marcus Corporation 16,231 58 16,173 44,671 177 44,494 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09. The adoption of ASU No. 2014-09 had the following effect on our consolidated balance sheet as of September 27, 2018 (in thousands): As Reported ASU No. 2014-09 Impact Adjusted (1) Refundable income taxes $ 3,531 $ 945 $ 2,586 Total current assets 57,368 945 56,423 Total assets 986,686 945 985,741 Other accrued liabilities 46,269 3,639 42,630 Total current liabilities 120,981 3,639 117,342 Deferred compensation and other 59,157 99 59,058 Retained Earnings 433,022 (2,793 ) 435,815 Shareholders’ equity attributable to The Marcus Corporation 482,931 (2,793 ) 485,724 Total equity 483,036 (2,793 ) 485,829 Total liabilities and shareholders’ equity 986,686 945 985,741 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09. The Company had deferred revenue from contracts with customers of $28,643,000 and $36,007,000 as of September 27, 2018 and December 29, 2017, respectively, which includes the one-time cumulative effect adjustment to the balance sheet on the first day of fiscal 2018. The Company had no contract assets as of September 27, 2018 and December 28, 2017. During the 13 and , respectively, the Company recognized revenue of $1,699,000 and $16,688,000 that was included in deferred revenues as of December 29, 2017. The decrease in deferred revenue from December 29, 2017 to September 27, 2018 was due to theatre gift card redemptions and advanced movie ticket redemptions during the 39 weeks ended September 27, 2018, offset by an increase in advanced sales/deposits for group events in the hotels and resorts division. A significant majority of the Company’s revenue is recorded in less than one year from the original contract. As of September 27, 2018, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced tickets sales was $4,396,000 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next 1.3 years. As of September 27, 2018, the amount of transaction price allocated to the remaining performance obligations under the Hotels and Resorts loyalty program was $192,000, of which, $73,000 is reflected in the Company’s consolidated balance sheet in deferred compensation and other. The Company recognizes revenue upon reward redemption, which is expected to occur within the next two years. As part of the Company’s adoption of ASU No. 2014-09, the Company elected to use the following practical expedients: (i) not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; (ii) not to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; (iii) to expense costs as incurred for costs to obtain contracts when the amortization period would have been one year or less, which mainly includes internal sales and development compensation; (iv) not to disclose remaining performance obligations when the remaining performance obligations have original expected durations of one year or less; and (v) not to disclose remaining performance obligations when variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms a single performance obligation (which exists in the Company’s management fee contracts and its pre-show advertising contracts). |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 9 Months Ended |
Sep. 27, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | 3. Long-Term Debt and Capital Lease Obligations Long-Term Debt - During the 39 weeks ended September 28, 2017, the Company issued $50,000,000 of unsecured senior notes privately placed with three institutional lenders. The notes bear interest at 4.32% per annum and mature in fiscal 2027. The Company used the net proceeds of the sale of the notes to repay outstanding indebtedness and for general corporate purposes. Also during the 39 weeks ended September 28, 2017, a note that matured in January 2017 with a balance of $24,226,000 was repaid and replaced with borrowings on the Company’s revolving credit facility and a new $15,000,000 mortgage note bearing interest at LIBOR plus 2.75%, requiring monthly principal and interest payments and maturing in fiscal 2020. The mortgage note is secured by the related land, building and equipment. The Company utilizes derivatives principally to manage market risks and reduce its exposure resulting from fluctuations in interest rates. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The Company entered into two interest rate swap agreements on March 1, 2018 covering $50,000,000 of floating rate debt. The first agreement has a notional amount of $25,000,000, expires March 1, 2021, and requires the Company to pay interest at a defined rate of 2.559% while receiving interest at a defined variable rate of one-month LIBOR (2.125% at September 27, 2018). The second agreement has a notional amount of $25,000,000, expires March 1, 2023, and requires the Company to pay interest at a defined rate of 2.687% while receiving interest at a defined variable rate of one-month LIBOR (2.125% at September 27, 2018). The Company recognizes derivatives as either assets or liabilities on the consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. Derivatives that do not qualify for hedge accounting must be adjusted to fair value through earnings. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company’s interest rate swap agreements are considered effective and qualify as cash flow hedges. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. As of September 27, 2018, the interest rate swaps were considered highly effective. The fair value of the interest rate swaps on September 27, 2018 was an asset of $444,000 and was included in other long term assets in the consolidated balance sheet. The Company does not expect the interest rate swaps to have a material effect on earnings within the next 12 months. The Company had an interest rate swap that expired in January 2018. The swap agreement covered $25,000,000 of floating rate debt that required the Company to pay interest at a defined fixed rate of 0.96% while receiving interest at a defined variable rate of one-month LIBOR. The Company’s interest rate swap agreement was considered effective and qualified as a cash flow hedge from inception through June 16, 2016, at which time the derivative was undesignated and the balance in accumulated other comprehensive loss was reclassified into interest expense. As of June 16, 2016, the swap was considered ineffective for accounting purposes and the change in fair value was recorded as an increase or decrease in interest expense. As such, the $13,000 decrease in fair value of the swap for the 39 weeks ended September 27, 2018 was recorded to interest expense. Capital Lease Obligations - During fiscal 2012, the Company entered into a master licensing agreement with CDF2 Holdings, LLC, a subsidiary of Cinedigm Digital Cinema Corp (CDF2), whereby CDF2 purchased on the Company’s behalf, and then deployed and licensed back to the Company, digital cinema projection systems (the “systems”) for use by the Company in its theatres. As of September 27, 2018, 642 of the Company’s screens were utilizing the systems under a 10-year master licensing agreement with CDF2. Included in furniture, fixtures and equipment is $45,510,000 related to the digital systems as of September 27, 2018 and December 28, 2017, which is being amortized over the remaining estimated useful life of the assets. Accumulated amortization of the digital systems was $39,103,000 and $34,471,000 as of September 27, 2018 and December 28, 2017, respectively. Under the terms of the master licensing agreement, the Company made an initial one-time payment to CDF2. The Company expects that the balance of CDF2’s costs to deploy the systems will be covered primarily through the payment of virtual print fees (VPF’s) from film distributors to CDF2 each time a digital movie is booked on one of the systems deployed on a Company screen. The Company agreed to make an average number of bookings of eligible digital movies on each screen on which a licensed system has been deployed to provide for a minimum level of VPF’s paid by distributors (standard booking commitment) to CDF2. To the extent the VPF’s paid by distributors are less than the standard booking commitment, the Company must make a shortfall payment to CDF2. Based upon the Company’s historical booking patterns, the Company does not expect to make any shortfall payments during the life of the agreement. Accounting Standards Codification No. 840, Leases , requires that the Company consider the entire amount of the standard booking commitment minimum lease payments for purposes of determining the capital lease obligation. The maximum amount per year that the Company could be required to pay is approximately $6,163,000 until the obligation is fully satisfied. The Company’s capital lease obligation is being reduced as VPF’s are paid by the film distributors to CDF2. The Company has recorded the reduction of the obligation associated with the payment of VPF’s as a reduction of the interest related to the obligation and the amortization incurred related to the systems, as the payments represent a specific reimbursement of the cost of the systems by the studios. Based on the Company’s expected minimum number of eligible movies to be booked, the Company expects the obligation to be reduced by at least $5,140,000 within the next 12 months. This reduction will be recognized as an offset to amortization and is expected to offset the majority of the amortization of the systems. The Company is the obligor of several movie theatre and equipment leases with unaffiliated third parties that qualify for capital lease accounting. Included in buildings and improvements as of September 27, 2018 and December 28, 2017 is $25,648,000 related to these leases, with accumulated amortization of $3,701,000 and $2,300,000 as of September 27, 2018 and December 28, 2017, respectively. Included in furniture, fixtures and equipment as of September 27, 2018 and December 28, 2017 is $1,712,000 related to these leases, with accumulated amortization of $438,000 and $255,000 as of September 27, 2018 and December 28, 2017, respectively. The assets are being amortized over the shorter of the estimated useful lives or the remaining lease terms. The Company paid $808,000 and $2,424,000, respectively, in lease payments on these capital leases during the 13 and 39 weeks ended September 27, 2018, and $874,000 and $2,424,000, respectively, during 13 and 39 weeks ended September 28, 2017. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes The Company’s effective income tax rate, adjusted for earnings (losses) from noncontrolling interests, for the 13 and 39 weeks ended September 27, 2018 was 13.9% and 21.5%, respectively, and was 38.6% and 37.8% for the 13 and 39 weeks ended September 28, 2017, respectively. The 35% to 21% During the fiscal year ended December 28, 2017, the Company was able to make a reasonable estimate of the impact of the Tax Cuts and Jobs Act of 2017, including the reduction in the corporate tax rate and the provisions related to executive compensation and 100% bonus depreciation on qualifying property. However, given the Act’s broad and complex changes, further clarification, interpretation and regulatory guidance could affect the assumptions the Company used in making its reasonable estimate. Following the guidance of the U.S. Securities and Exchange Commission's Staff Accounting Bulletin No. 118, any adjustments to the Company's estimate will be reported as a component of income tax expense and disclosed in the period when any such adjustments have been determined within the one-year measurement period. During the 39 weeks ended September 27, 2018, the Company did not make any adjustment to the estimates recorded in fiscal 2017. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 27, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | 5. Business Segment Information The Company’s primary operations are reported in the following business segments: Theatres and Hotels/Resorts. Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues. Following is a summary of business segment information for the 13 and 39 weeks ended September 27, 2018 and September 28, 2017 (in thousands): 13 Weeks Ended September 27, 2018 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 95,009 $ 75,492 $ 98 $ 170,599 Operating income (loss) 14,457 12,024 (4,068 ) 22,413 Depreciation and amortization 9,867 4,616 86 14,569 13 Weeks Ended September 28, 2017 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 90,273 $ 71,952 $ 150 $ 162,375 Operating income (loss) 15,861 9,659 (3,657 ) 21,863 Depreciation and amortization 8,399 4,512 82 12,993 39 Weeks Ended September 27, 2018 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 333,397 $ 198,373 $ 318 $ 532,088 Operating income (loss) 66,317 15,737 (13,518 ) 68,536 Depreciation and amortization 28,751 13,890 258 42,899 39 Weeks Ended September 28, 2017 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 296,636 $ 190,903 $ 432 $ 487,971 Operating income (loss) 58,576 12,803 (11,894 ) 59,485 Depreciation and amortization 24,000 13,270 274 37,544 (1) Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $ 8,870 8,057 24,692 21,765 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 27, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 6. Subsequent Event On November 1, 2018, the Company entered VSS-Southern Theatres LLC (Movie Tavern) pursuant to which the Company will acquire substantially all of the assets and assume certain limited liabilities of its Movie Tavern branded movie theatre business (the “Movie Tavern Business”). The Movie Tavern Business consists of 22 dine-in theatres located in Texas, Pennsylvania, Georgia, Louisiana, New York, Colorado, Arkansas, Kentucky and Virginia. The purchase price for the Movie Tavern Business consists of $30,000,000 in cash, subject to certain adjustments, and 2,450,000 . The assets purchased will consist primarily of leasehold improvements, furniture, fixtures and equipment and certain intangible assets. The transaction is expected to close in the first fiscal quarter of 2019, subject to certain customary closing conditions and approvals, including, among others, early termination or expiration of the applicable waiting period under the Hart-Scott-Rodino Act. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 27, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The unaudited consolidated financial statements for the 13 and 39 weeks ended September 27, 2018 and September 28, 2017 have been prepared by the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the unaudited interim financial information at September 27, 2018, and for all periods presented, have been made. The results of operations during the interim periods are not necessarily indicative of the results of operations for the entire year or other interim periods. However, the unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2017. |
Immaterial Restatement of Prior Year Financial Statements | Immaterial Restatement of Prior Year Financial Statements – Beginning in the fiscal 2018 first quarter, the Company began appropriately presenting cost reimbursements and reimbursed costs on a gross basis and presented two new line items in the consolidated statements of earnings. These cost reimbursements and reimbursed costs were previously reported on a net basis. Reimbursed costs primarily consist of payroll and related expenses at managed properties where the Company is the employer and may include certain operational and administrative costs as provided for in the Company's contracts with owners. These costs are reimbursed back to the Company. As these costs have no added markup, the revenue and related expense have no impact on operating income or net earnings. Cost reimbursements and reimbursed costs, which totaled $8,557,000 and $23,424,000 for the 13 and 39 weeks ended September 28, 2017, respectively, have been separately presented in the prior year statement of earnings to correct the prior year presentation. The Company believes this correction is immaterial to the consolidated financial statements. |
Accounting Policies | Accounting Policies – Refer to the Company’s audited consolidated financial statements (including footnotes) for the fiscal year ended December 28, 2017, contained in the Company’s Annual Report on Form 10-K for such year, for a description of the Company’s accounting policies. During the 39 weeks ended September 27, 2018, there were no significant changes made to the Company’s significant accounting policies other than the changes attributable to the adoption of the Financial Accounting Standards Board Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers , which was adopted on December 29, 2017. These revenue recognition policy updates are applied prospectively in the Company’s financial statements from December 29, 2017 forward. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical periods. |
Depreciation and Amortization | Depreciation and Amortization – Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the estimated useful lives of the assets or any related lease terms. Depreciation expense totaled $14,556,000 and $43,037,000 for the 13 and 39 weeks ended September 27, 2018, respectively, and $12,946,000 and $37,368,000 for the 13 and 39 weeks ended September 28, 2017, respectively. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss – Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: Interest Rate Swaps Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 28, 2017 $ – $ (11 ) $ (7,414 ) $ (7,425 ) Amount reclassified to retained earnings on December 29, 2017 in connection with the adoption of ASU No. 2016-01 – 11 – 11 Balance at December 29, 2017 – – (7,414 ) (7,414 ) Amortization of the net actuarial loss and prior service credit – – 340 340 Other comprehensive income before reclassifications 191 – – 191 Amounts reclassified from accumulated other comprehensive loss 134 (1) – – 134 Other comprehensive income 325 – 340 665 Balance at September 27, 2018 $ 325 $ – $ (7,074 ) $ (6,749 ) (1) Amount is included in interest expense in the consolidated statements of earnings. Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 29, 2016 $ 3 $ (5,069 ) $ (5,066 ) Change in unrealized gain on available for sale investments (14 ) – (14 ) Amortization of net actuarial loss and prior service credit – 161 161 Net other comprehensive income (loss) (14 ) 161 147 Balance at September 28, 2017 $ (11 ) $ (4,908 ) $ (4,919 ) |
Earnings Per Share | Earnings Per Share - Net earnings per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options using the treasury method. Convertible Class B Common Stock is reflected on an if-converted basis. The computation of the diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock, while the diluted net earnings per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings for each period are allocated based on the proportionate share of entitled cash dividends. The computation of diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock and, as such, the undistributed earnings are equal to net earnings for that computation. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share for net earnings and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 16,231 $ 10,978 $ 44,671 $ 30,555 Denominator: Denominator for basic EPS 28,180 27,825 28,028 27,773 Effect of dilutive employee stock options 638 525 606 637 Denominator for diluted EPS 28,818 28,350 28,634 28,410 Net earnings per share - basic: Common Stock $ 0.60 $ 0.41 $ 1.65 $ 1.14 Class B Common Stock $ 0.52 $ 0.36 $ 1.47 $ 1.02 Net earnings per share - diluted: Common Stock $ 0.56 $ 0.39 $ 1.56 $ 1.08 Class B Common Stock $ 0.51 $ 0.37 $ 1.44 $ 1.01 |
Equity | Equity – Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interests for the 39 weeks ended September 27, 2018 and September 28, 2017 was as follows: Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 28, 2017 $ 445,024 $ 100 Net earnings attributable to The Marcus Corporation 44,671 – Net earnings attributable to noncontrolling interests – 70 Distributions to noncontrolling interests – (65 ) Cash dividends (12,277 ) – Exercise of stock options 6,902 – Savings and profit sharing contribution 1,130 – Treasury stock transactions, except for stock options (2,566 ) – Share-based compensation 1,950 – Cumulative effect of adopting ASU No. 2014-09, net of tax (2,568 ) – Other comprehensive income, net of tax 665 – Balance at September 27, 2018 $ 482,931 $ 105 Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 29, 2016 $ 390,112 $ 1,535 Net earnings attributable to The Marcus Corporation 30,555 – Net loss attributable to noncontrolling interests – (495 ) Cash dividends (10,122 ) – Exercise of stock options 2,083 – Savings and profit sharing contribution 1,024 – Treasury stock transactions, except for stock options (463 ) – Share-based compensation 1,867 – Other comprehensive income, net of tax 147 – Balance at September 28, 2017 $ 415,203 $ 1,040 |
Fair Value Measurements | Fair Value Measurements – Certain financial assets and liabilities are recorded at fair value in the consolidated financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 – Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At September 27, 2018 and December 28, 2017, respectively, the Company’s $5,762,000 and $4,053,000 of debt and equity securities were valued using Level 1 pricing inputs and were included in other current assets. Level 2 – Assets or liabilities for which fair value is based on pricing inputs that were either directly or indirectly observable as of the reporting date. At September 27, 2018 and December 28, 2017, respectively, the $444,000 and $13,000 asset related to the Company’s interest rate swap contracts was valued using Level 2 pricing inputs. Level 3 – Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At September 27, 2018 and December 28, 2017, none of the Company’s fair value measurements were valued using Level 3 pricing inputs. |
Defined Benefit Plan | Defined Benefit Plan – The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands) Service cost $ 231 $ 192 $ 694 $ 574 Interest cost 341 339 1,023 1,017 Net amortization of prior service cost and actuarial loss 156 89 466 267 Net periodic pension cost $ 728 $ 620 $ 2,183 $ 1,858 Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. |
New Accounting Pronouncements | New Accounting Pronouncements Leases (Topic 842) Leases (Topic 842): Targeted Improvements, In conjunction with the adoption of the new standard, companies are able to elect several practical expedients to aid in the transition to Topic 842. The following three practical expedients must all be elected together, and the Company intends to elect these practical expedients upon adoption: · An entity need not reassess whether any expired or existing contracts are or contain leases. · An entity need not reassess the lease classification for any expired or existing leases. · An entity need not reassess initial direct costs for any existing leases. The Company continues to finalize its inventory of leases, assess the additional practical expedients and analyze financial reporting implications. Upon adoption, the most significant impact of the amendments in ASU No. 2016-02 will be the recognition of the new right-of-use assets and lease liabilities for assets currently subject to operating leases. The Company believes that the adoption of ASU No. 2016-02 will have a material impact on its consolidated balance sheet, but the adoption is not expected to have a material effect on its consolidated results of operations or cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for the Company in fiscal 2020 and must be applied prospectively. The Company does not believe the new standard will have a material effect on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 29, 2017, the Company adopted and applied to all contracts ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company elected the modified retrospective method for the adoption of ASU No. 2014-09 and its related ASU amendments. Under this method, the Company recognized the cumulative effect of the changes in retained earnings at the date of adoption, but did not restate the 13 or 39 weeks ended September 28, 2017, which continues to be reported under the accounting standards in effect for that time period. The Company performed a review of the requirements of ASU No. 2014-09 and related ASUs in preparation for adoption of the new standard. The Company reviewed its key revenue streams and related customer contracts and has applied the five-step model of the standard to these revenue streams and compared the results to its current accounting practices. The majority of the Company’s revenues continue to be recognized in a manner consistent with historical practice. See Note 2 for further discussion. On December 29, 2017, the Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which primarily affects the accounting for equity investments, financial liabilities under fair value option, and the presentation and disclosure requirements of financial instruments. Upon adoption, the Company made an immaterial cumulative effect adjustment to reclassify the unrealized loss of an equity investment previously classified as available for sale from accumulated other comprehensive loss to opening retained earnings. All future changes in fair value for this equity security will be recognized through net earnings. In addition, the Company holds two investments that were previously accounted for under the cost method of accounting, which under ASU No. 2016-01 were deemed to not have readily determinable fair values and thus were not impacted by the adoption of ASU No. 2016-01. The adoption of this standard did not have a material impact on such investments or the Company's consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard must be applied using a retrospective transition method for each period presented. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning of period and ending of period total amount shown on the statement of cash flows. ASU No. 2016-18 was applied on a retrospective basis and prior periods were adjusted to conform to the current period’s presentation. Upon adoption, the Company recorded a $2,438,000 decrease in net cash used in investing activities for the 39 weeks ended September 28, 2017 related to reclassifying the changes in its restricted cash balance from investing activities to cash and cash equivalent balances within the consolidated statement of cash flows. On December 29, 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance and providing a more robust framework to assist reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU No. 2017-05 clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.” It also covers the transfer of nonfinancial assets to another entity in exchange for a non-controlling ownership interest in that entity. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Benefit Cost . The ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost are to be presented separately, in an appropriately titled line item outside of any subtotal of operating income or disclosed in the footnotes. The standard also limits the amount eligible for capitalization to the service cost component. ASU No. 2017-07 was applied on a retrospective basis and the prior period was adjusted to conform to the current period’s presentation. During the 13 and 39 weeks ended September 28, 2017, expense of $428,000 and $1,284,000, respectively, was reclassified from operating income to other expense outside of operating income in the consolidated statement of earnings. On December 29, 2017, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , to provide clarity and reduce both the diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation . The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. On December 29, 2017, the Company early adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification 815, Derivatives and Hedging (Topic 815) . ASU No. 2017-12 is designed to improve the transparency and understandability of information about an entity’s risk management activities and to reduce the complexity of and simplifying the application of hedge accounting. The adoption of the new standard did not have an effect on the Company’s consolidated financial statements. |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 27, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: Interest Rate Swaps Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 28, 2017 $ – $ (11 ) $ (7,414 ) $ (7,425 ) Amount reclassified to retained earnings on December 29, 2017 in connection with the adoption of ASU No. 2016-01 – 11 – 11 Balance at December 29, 2017 – – (7,414 ) (7,414 ) Amortization of the net actuarial loss and prior service credit – – 340 340 Other comprehensive income before reclassifications 191 – – 191 Amounts reclassified from accumulated other comprehensive loss 134 (1) – – 134 Other comprehensive income 325 – 340 665 Balance at September 27, 2018 $ 325 $ – $ (7,074 ) $ (6,749 ) (1) Amount is included in interest expense in the consolidated statements of earnings. Available for Sale Investments Pension Obligation Accumulated Other Comprehensive Loss (in thousands) Balance at December 29, 2016 $ 3 $ (5,069 ) $ (5,066 ) Change in unrealized gain on available for sale investments (14 ) – (14 ) Amortization of net actuarial loss and prior service credit – 161 161 Net other comprehensive income (loss) (14 ) 161 147 Balance at September 28, 2017 $ (11 ) $ (4,908 ) $ (4,919 ) |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share for net earnings and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 16,231 $ 10,978 $ 44,671 $ 30,555 Denominator: Denominator for basic EPS 28,180 27,825 28,028 27,773 Effect of dilutive employee stock options 638 525 606 637 Denominator for diluted EPS 28,818 28,350 28,634 28,410 Net earnings per share - basic: Common Stock $ 0.60 $ 0.41 $ 1.65 $ 1.14 Class B Common Stock $ 0.52 $ 0.36 $ 1.47 $ 1.02 Net earnings per share - diluted: Common Stock $ 0.56 $ 0.39 $ 1.56 $ 1.08 Class B Common Stock $ 0.51 $ 0.37 $ 1.44 $ 1.01 |
Components of Shareholders' Equity Activity Attributable to The Marcus Corporation and Noncontrolling Interests | Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interests for the 39 weeks ended September 27, 2018 and September 28, 2017 was as follows: Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 28, 2017 $ 445,024 $ 100 Net earnings attributable to The Marcus Corporation 44,671 – Net earnings attributable to noncontrolling interests – 70 Distributions to noncontrolling interests – (65 ) Cash dividends (12,277 ) – Exercise of stock options 6,902 – Savings and profit sharing contribution 1,130 – Treasury stock transactions, except for stock options (2,566 ) – Share-based compensation 1,950 – Cumulative effect of adopting ASU No. 2014-09, net of tax (2,568 ) – Other comprehensive income, net of tax 665 – Balance at September 27, 2018 $ 482,931 $ 105 Total Shareholders’ Equity Attributable to The Marcus Corporation Noncontrolling Interests (in thousands) Balance at December 29, 2016 $ 390,112 $ 1,535 Net earnings attributable to The Marcus Corporation 30,555 – Net loss attributable to noncontrolling interests – (495 ) Cash dividends (10,122 ) – Exercise of stock options 2,083 – Savings and profit sharing contribution 1,024 – Treasury stock transactions, except for stock options (463 ) – Share-based compensation 1,867 – Other comprehensive income, net of tax 147 – Balance at September 28, 2017 $ 415,203 $ 1,040 |
Schedule of Net Benefit Costs | The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended September 27, 2018 13 Weeks Ended September 28, 2017 39 Weeks Ended September 27, 2018 39 Weeks Ended September 28, 2017 (in thousands) Service cost $ 231 $ 192 $ 694 $ 574 Interest cost 341 339 1,023 1,017 Net amortization of prior service cost and actuarial loss 156 89 466 267 Net periodic pension cost $ 728 $ 620 $ 2,183 $ 1,858 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 27, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The disaggregation of revenues by business segment for the 13 and 39 weeks ended September 27, 2018 is as follows (in thousands): 13 Weeks Ended September 27, 2018 Reportable Segment Theatres Hotels/ Resorts Corporate Total Theatre admissions $ 52,422 $ – $ – $ 52,422 Rooms – 34,467 – 34,467 Theatre concessions 35,476 – – 35,476 Food and beverage – 19,333 – 19,333 Other revenues (1) 6,893 12,822 98 19,813 Cost reimbursements 218 8,870 – 9,088 Total revenues $ 95,009 $ 75,492 $ 98 $ 170,599 39 Weeks Ended September 27, 2018 Reportable Segment Theatres Hotels/ Resorts Corporate Total Theatre admissions $ 185,035 $ – $ – $ 185,035 Rooms – 84,256 – 84,256 Theatre concessions 123,687 – – 123,687 Food and beverage – 53,972 – 53,972 Other revenues (1) 23,591 35,453 318 59,362 Cost reimbursements 1,084 24,692 – 25,776 Total revenues $ 333,397 $ 198,373 $ 318 $ 532,088 (1) Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014-09. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Due to adoption of ASU No. 2014-09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows: Balance at December 28, 2017 Cumulative Adjustment Balance at December 29, 2017 ( in thousands ) Refundable income taxes $ 15,335 $ 945 $ 16,280 Other accrued liabilities 53,291 3,296 56,587 Deferred compensation and other 56,662 217 56,879 Retained earnings 403,206 (2,568 ) 400,638 The adoption of ASU No. 2014-09 had the following effect on our consolidated statement of earnings for the 13 and 39 weeks ended September 27, 2018 (in thousands): For the 13 Weeks Ended September 27, 2018 For the 39 Weeks Ended September 27, 2018 As Reported ASU No. 2014-09 Impact Adjusted (1) As Reported ASU No. 2014-09 Impact Adjusted (1) Revenues: Theatre admissions $ 52,422 $ (605 ) $ 53,027 $ 185,035 $ (1,961 ) $ 186,996 Theatre concessions 35,476 503 34,973 123,687 1,467 122,220 Food and beverage 19,333 3 19,330 53,972 23 53,949 Other revenues 19,813 904 18,909 59,362 3,609 55,753 Total revenues 170,599 805 169,794 532,088 3,138 528,950 Costs and expenses: Theatre operations 48,644 165 48,479 164,452 479 163,973 Theatre concessions 10,168 159 10,009 35,105 469 34,636 Advertising and marketing 6,178 (496 ) 6,674 17,317 (1,549 ) 18,866 Other operating expenses 8,969 910 8,059 27,032 3,514 23,518 Total costs and expenses 148,186 738 147,448 463,552 2,913 460,639 Operating income 22,413 67 22,346 68,536 225 68,311 Income taxes 2,626 9 2,617 12,254 48 12,206 Net earnings attributable to The Marcus Corporation 16,231 58 16,173 44,671 177 44,494 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09. The adoption of ASU No. 2014-09 had the following effect on our consolidated balance sheet as of September 27, 2018 (in thousands): As Reported ASU No. 2014-09 Impact Adjusted (1) Refundable income taxes $ 3,531 $ 945 $ 2,586 Total current assets 57,368 945 56,423 Total assets 986,686 945 985,741 Other accrued liabilities 46,269 3,639 42,630 Total current liabilities 120,981 3,639 117,342 Deferred compensation and other 59,157 99 59,058 Retained Earnings 433,022 (2,793 ) 435,815 Shareholders’ equity attributable to The Marcus Corporation 482,931 (2,793 ) 485,724 Total equity 483,036 (2,793 ) 485,829 Total liabilities and shareholders’ equity 986,686 945 985,741 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 27, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Following is a summary of business segment information for the 13 and 39 weeks ended September 27, 2018 and September 28, 2017 (in thousands): 13 Weeks Ended September 27, 2018 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 95,009 $ 75,492 $ 98 $ 170,599 Operating income (loss) 14,457 12,024 (4,068 ) 22,413 Depreciation and amortization 9,867 4,616 86 14,569 13 Weeks Ended September 28, 2017 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 90,273 $ 71,952 $ 150 $ 162,375 Operating income (loss) 15,861 9,659 (3,657 ) 21,863 Depreciation and amortization 8,399 4,512 82 12,993 39 Weeks Ended September 27, 2018 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 333,397 $ 198,373 $ 318 $ 532,088 Operating income (loss) 66,317 15,737 (13,518 ) 68,536 Depreciation and amortization 28,751 13,890 258 42,899 39 Weeks Ended September 28, 2017 Theatres Hotels/ Resorts Corporate Items Total Revenues (1) $ 296,636 $ 190,903 $ 432 $ 487,971 Operating income (loss) 58,576 12,803 (11,894 ) 59,485 Depreciation and amortization 24,000 13,270 274 37,544 (1) Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $ 8,870 8,057 24,692 21,765 |
General (Details)
General (Details) - USD ($) $ in Thousands | Dec. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning Balance, Interest Rate Swaps | $ 0 | $ 0 | ||||
Other comprehensive income before reclassifications, Interest Rate Swaps | $ 192 | $ 0 | 191 | $ 0 | ||
Amounts reclassified from accumulated other comprehensive loss, Interest Rate Swaps | 0 | 46 | 0 | 134 | [1] | 0 |
Net other comprehensive income (loss), Interest Rate Swaps | 325 | |||||
Ending Balance, Interest Rate Swaps | 0 | 325 | 325 | |||
Beginning Balance, Available for Sale Investments | (11) | 0 | 3 | |||
Change in unrealized gain on available for sale investments, Available for Sale Investments | 0 | 0 | 0 | (14) | ||
Other comprehensive income before reclassifications, Available for Sale Investments | 0 | |||||
Amount reclassified to retained earnings on December 29, 2017 in connection with the adoption of ASU No. 2016-01 | 11 | 0 | ||||
Net other comprehensive income (loss), Available for Sale InvestmentsNet other comprehensive income (loss), Available for Sale Investments | 0 | (14) | ||||
Ending Balance, Available for Sale Investments | 0 | 0 | (11) | 0 | (11) | |
Beginning Balance, Pension Obligation | (7,414) | (7,414) | (5,069) | |||
Amortization of net actuarial loss and prior service credit, Pension Obligation | 113 | 54 | 340 | 161 | ||
Other comprehensive income before reclassifications, Pension Obligation | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss, Pension Obligation | 0 | 0 | ||||
Net other comprehensive income (loss), Pension Obligation | 340 | 161 | ||||
Ending Balance, Pension Obligation | (7,414) | (7,074) | (4,908) | (7,074) | (4,908) | |
Beginning Balance, Accumulated Other Comprehensive Loss | (7,425) | (7,425) | (5,066) | |||
Change in unrealized gain on available for sale investments, Accumulated Other Comprehensive Loss | (14) | |||||
Amortization of net actuarial loss and prior service credit, Accumulated Other Comprehensive Loss | 113 | 54 | 340 | 161 | ||
Other comprehensive income before reclassifications, Accumulated Other Comprehensive Loss | 191 | |||||
Amounts reclassified from accumulated other comprehensive loss, Accumulated Other Comprehensive Loss | 11 | 134 | [1] | |||
Other comprehensive income | 351 | 54 | 665 | 147 | ||
Ending Balance, Accumulated Other Comprehensive Loss | $ (7,425) | $ (6,749) | $ (4,919) | $ (6,749) | $ (4,919) | |
[1] | Amount is included in interest expense in the consolidated statements of earnings. |
General (Details 1)
General (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Numerator: | ||||
Net earnings attributable to The Marcus Corporation | $ 16,231 | $ 10,978 | $ 44,671 | $ 30,555 |
Denominator: | ||||
Denominator for basic EPS | 28,180 | 27,825 | 28,028 | 27,773 |
Effect of dilutive employee stock options | 638 | 525 | 606 | 637 |
Denominator for diluted EPS | 28,818 | 28,350 | 28,634 | 28,410 |
Common Stock [Member] | ||||
Net earnings per share - basic: | ||||
Common Stock | $ 0.60 | $ 0.41 | $ 1.65 | $ 1.14 |
Net earnings per share - diluted: | ||||
Common Stock | 0.56 | 0.39 | 1.56 | 1.08 |
Class B Common Stock [Member] | ||||
Net earnings per share - basic: | ||||
Common Stock | 0.52 | 0.36 | 1.47 | 1.02 |
Net earnings per share - diluted: | ||||
Common Stock | $ 0.51 | $ 0.37 | $ 1.44 | $ 1.01 |
General (Details 2)
General (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Total Shareholders' Equity Attributable to The Marcus Corporation | ||||
Beginning Balance | $ 445,024 | $ 390,112 | ||
Net earnings attributable to The Marcus Corporation | $ 16,231 | $ 10,978 | 44,671 | 30,555 |
Cash dividends | (12,277) | (10,122) | ||
Exercise of stock options | 6,902 | 2,083 | ||
Savings and profit sharing contribution | 1,130 | 1,024 | ||
Treasury stock transactions, except for stock options | (2,566) | (463) | ||
Share-based compensation | 1,950 | 1,867 | ||
Cumulative effect of adopting ASU No. 2014-09, net of tax | (2,568) | (2,568) | ||
Other comprehensive income, net of tax | 351 | 54 | 665 | 147 |
Ending Balance | 482,931 | 415,203 | 482,931 | 415,203 |
Noncontrolling Interests | ||||
Beginning Balance | 100 | 1,535 | ||
Net earnings attributable to noncontrolling interests | (8) | (160) | 70 | (495) |
Distributions to noncontrolling interests | (65) | 0 | ||
Ending Balance | $ 105 | $ 1,040 | $ 105 | $ 1,040 |
General (Details 3)
General (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Service cost | $ 231 | $ 192 | $ 694 | $ 574 |
Interest cost | 341 | 339 | 1,023 | 1,017 |
Net amortization of prior service cost and actuarial loss | 156 | 89 | 466 | 267 |
Net periodic pension cost | $ 728 | $ 620 | $ 2,183 | $ 1,858 |
General (Details Textual)
General (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | Dec. 28, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Depreciation | $ 14,556,000 | $ 12,946,000 | $ 43,037,000 | $ 37,368,000 | |
Percentage Of Cash Dividends | 110.00% | ||||
Interest Rate Fair Value Hedge Asset at Fair Value | $ 444,000 | 444,000 | $ 13,000 | ||
Trading Securities, Fair Value Disclosure | 5,762,000 | 5,762,000 | $ 4,053,000 | ||
Reimbursed Costs | $ 9,088,000 | 8,557,000 | 25,776,000 | 23,424,000 | |
Decrease in net cash used in investing activities | $ (46,096,000) | (82,123,000) | |||
Post Employment Benefits Reclassified Operating Income To Other Expense | $ 428,000 | 1,284,000 | |||
Accounting Standards Update 2016-18 [Member] | Scenario, Adjustment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Decrease in net cash used in investing activities | $ (2,438,000) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | ||
Cost reimbursements | $ 9,088 | $ 8,557 | $ 25,776 | $ 23,424 | |
Total revenues | [1] | 170,599 | 162,375 | 532,088 | 487,971 |
Theatre admissions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 52,422 | 50,246 | 185,035 | 166,222 | |
Rooms [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 34,467 | 32,785 | 84,256 | 82,844 | |
Theatre concessions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 35,476 | 33,290 | 123,687 | 109,365 | |
Food and beverage [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 19,333 | 18,670 | 53,972 | 52,487 | |
Other revenues [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 19,813 | $ 18,827 | 59,362 | $ 53,629 | |
Theatres Segment [Member] | |||||
Cost reimbursements | 218 | 1,084 | |||
Total revenues | 95,009 | 333,397 | |||
Theatres Segment [Member] | Theatre admissions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 52,422 | 185,035 | |||
Theatres Segment [Member] | Rooms [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Theatres Segment [Member] | Theatre concessions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 35,476 | 123,687 | |||
Theatres Segment [Member] | Food and beverage [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Theatres Segment [Member] | Other revenues [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 6,893 | 23,591 | ||
Hotels or Resorts [Member] | |||||
Cost reimbursements | 8,870 | 24,692 | |||
Total revenues | 75,492 | 198,373 | |||
Hotels or Resorts [Member] | Theatre admissions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Hotels or Resorts [Member] | Rooms [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 34,467 | 84,256 | |||
Hotels or Resorts [Member] | Theatre concessions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Hotels or Resorts [Member] | Food and beverage [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 19,333 | 53,972 | |||
Hotels or Resorts [Member] | Other revenues [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 12,822 | 35,453 | ||
Corporate Segment [Member] | |||||
Cost reimbursements | 0 | 0 | |||
Total revenues | 98 | 318 | |||
Corporate Segment [Member] | Theatre admissions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Corporate Segment [Member] | Rooms [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Corporate Segment [Member] | Theatre concessions [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Corporate Segment [Member] | Food and beverage [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | |||
Corporate Segment [Member] | Other revenues [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | $ 98 | $ 318 | ||
[1] | Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $8,870); $8,557 for the 13 weeks ended September 28, 2017 (Theatres - $500, Hotels/Resorts - $8,057); $25,776 for the 39 weeks ended September 27, 2018 (Theatres - $1,084, Hotels/Resorts - $24,692); and $23,424 for the 39 weeks ended September 28, 2017 (Theatres - $1,659, Hotels/Resorts - $21,765). | ||||
[2] | Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014-09. |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | Sep. 27, 2018 | Dec. 29, 2017 | Dec. 28, 2017 |
Refundable income taxes | $ 3,531 | $ 15,335 | |
Other accrued liabilities | 46,269 | 53,291 | |
Deferred compensation and other | 59,157 | 56,662 | |
Retained earnings | 433,022 | $ 403,206 | |
Accounting Standards Update 2014-09 [Member] | |||
Refundable income taxes | $ 16,280 | ||
Other accrued liabilities | 56,587 | ||
Deferred compensation and other | 56,879 | ||
Retained earnings | 400,638 | ||
Restatement Adjustment [Member] | |||
Refundable income taxes | 945 | 945 | |
Other accrued liabilities | 3,639 | 3,296 | |
Deferred compensation and other | 99 | 217 | |
Retained earnings | $ (2,793) | $ (2,568) |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | Dec. 29, 2017 | Dec. 28, 2017 | Dec. 29, 2016 | ||
Revenues [Abstract] | ||||||||
Total revenues | [1] | $ 170,599 | $ 162,375 | $ 532,088 | $ 487,971 | |||
Costs and Expenses [Abstract] | ||||||||
Advertising and marketing | 6,178 | 6,296 | 17,317 | 17,880 | ||||
Other operating expenses | 8,969 | 8,300 | 27,032 | 24,255 | ||||
Total costs and expenses | 148,186 | 140,512 | 463,552 | 428,486 | ||||
Operating income | 22,413 | 21,863 | 68,536 | 59,485 | ||||
Income taxes | 2,626 | 6,908 | 12,254 | 18,571 | ||||
Net earnings attributable to The Marcus Corporation | 16,231 | 10,978 | 44,671 | 30,555 | ||||
Balance Sheet [Abstract] | ||||||||
Refundable income taxes | 3,531 | 3,531 | $ 15,335 | |||||
Total current assets | 57,368 | 57,368 | 76,721 | |||||
Total assets | 986,686 | 986,686 | 1,017,797 | |||||
Other accrued liabilities | 46,269 | 46,269 | 53,291 | |||||
Total current liabilities | 120,981 | 120,981 | 159,683 | |||||
Deferred compensation and other | 59,157 | 59,157 | 56,662 | |||||
Retained earnings | 433,022 | 433,022 | 403,206 | |||||
Shareholders' equity attributable to The Marcus Corporation | 482,931 | 415,203 | 482,931 | 415,203 | 445,024 | $ 390,112 | ||
Total equity | 483,036 | 483,036 | 445,124 | |||||
Total liabilities and shareholders' equity | 986,686 | 986,686 | $ 1,017,797 | |||||
Previously Reported [Member] | ||||||||
Revenues [Abstract] | ||||||||
Total revenues | [2] | 169,794 | 528,950 | |||||
Costs and Expenses [Abstract] | ||||||||
Advertising and marketing | [2] | 6,674 | 18,866 | |||||
Other operating expenses | [2] | 8,059 | 23,518 | |||||
Total costs and expenses | [2] | 147,448 | 460,639 | |||||
Operating income | [2] | 22,346 | 68,311 | |||||
Income taxes | [2] | 2,617 | 12,206 | |||||
Net earnings attributable to The Marcus Corporation | [2] | 16,173 | 44,494 | |||||
Balance Sheet [Abstract] | ||||||||
Refundable income taxes | [2] | 2,586 | 2,586 | |||||
Total current assets | [2] | 56,423 | 56,423 | |||||
Total assets | [2] | 985,741 | 985,741 | |||||
Other accrued liabilities | [2] | 42,630 | 42,630 | |||||
Total current liabilities | [2] | 117,342 | 117,342 | |||||
Deferred compensation and other | [2] | 59,058 | 59,058 | |||||
Retained earnings | [2] | 435,815 | 435,815 | |||||
Shareholders' equity attributable to The Marcus Corporation | [2] | 485,724 | 485,724 | |||||
Total equity | [2] | 485,829 | 485,829 | |||||
Total liabilities and shareholders' equity | [2] | 985,741 | 985,741 | |||||
Restatement Adjustment [Member] | ||||||||
Revenues [Abstract] | ||||||||
Total revenues | 805 | 3,138 | ||||||
Costs and Expenses [Abstract] | ||||||||
Advertising and marketing | (496) | (1,549) | ||||||
Other operating expenses | 910 | 3,514 | ||||||
Total costs and expenses | 738 | 2,913 | ||||||
Operating income | 67 | 225 | ||||||
Income taxes | 9 | 48 | ||||||
Net earnings attributable to The Marcus Corporation | 58 | 177 | ||||||
Balance Sheet [Abstract] | ||||||||
Refundable income taxes | 945 | 945 | $ 945 | |||||
Total current assets | 945 | 945 | ||||||
Total assets | 945 | 945 | ||||||
Other accrued liabilities | 3,639 | 3,639 | 3,296 | |||||
Total current liabilities | 3,639 | 3,639 | ||||||
Deferred compensation and other | 99 | 99 | 217 | |||||
Retained earnings | (2,793) | (2,793) | $ (2,568) | |||||
Shareholders' equity attributable to The Marcus Corporation | (2,793) | (2,793) | ||||||
Total equity | (2,793) | (2,793) | ||||||
Total liabilities and shareholders' equity | 945 | 945 | ||||||
Theatre admissions [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 52,422 | 50,246 | 185,035 | 166,222 | ||||
Theatre admissions [Member] | Previously Reported [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 53,027 | 186,996 | |||||
Theatre admissions [Member] | Restatement Adjustment [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | (605) | (1,961) | ||||||
Theatre concessions [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 35,476 | 33,290 | 123,687 | 109,365 | ||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | 10,168 | 9,567 | 35,105 | 30,666 | ||||
Theatre concessions [Member] | Previously Reported [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 34,973 | 122,220 | |||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | [2] | 10,009 | 34,636 | |||||
Theatre concessions [Member] | Restatement Adjustment [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 503 | 1,467 | ||||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | 159 | 469 | ||||||
Food and beverage [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 19,333 | 18,670 | 53,972 | 52,487 | ||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | 14,966 | 15,125 | 43,930 | 44,093 | ||||
Food and beverage [Member] | Previously Reported [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 19,330 | 53,949 | |||||
Food and beverage [Member] | Restatement Adjustment [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 3 | 23 | ||||||
Other revenues [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 19,813 | 18,827 | 59,362 | 53,629 | ||||
Other revenues [Member] | Previously Reported [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | [2] | 18,909 | 55,753 | |||||
Other revenues [Member] | Restatement Adjustment [Member] | ||||||||
Revenues [Abstract] | ||||||||
Revenue from Contract with Customer, Including Assessed Tax | 904 | 3,609 | ||||||
Theatre operations [Member] | ||||||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | 48,644 | $ 44,403 | 164,452 | $ 145,844 | ||||
Theatre operations [Member] | Previously Reported [Member] | ||||||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | [2] | 48,479 | 163,973 | |||||
Theatre operations [Member] | Restatement Adjustment [Member] | ||||||||
Costs and Expenses [Abstract] | ||||||||
Cost of Goods and Services Sold | $ 165 | $ 479 | ||||||
[1] | Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $8,870); $8,557 for the 13 weeks ended September 28, 2017 (Theatres - $500, Hotels/Resorts - $8,057); $25,776 for the 39 weeks ended September 27, 2018 (Theatres - $1,084, Hotels/Resorts - $24,692); and $23,424 for the 39 weeks ended September 28, 2017 (Theatres - $1,659, Hotels/Resorts - $21,765). | |||||||
[2] | The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09. |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 27, 2018 | Dec. 29, 2017 | Dec. 28, 2017 | |
Deferred Revenue | $ 28,643,000 | $ 28,643,000 | $ 36,007,000 | |
Contract Revenue Reclassified From Deferred Revenue | 1,699,000 | 16,688,000 | ||
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | 59,157,000 | $ 59,157,000 | $ 56,662,000 | |
Redeemed Revenue from Advanced Tickets Sales Occured | 1 year 3 months 18 days | |||
Advanced Sale of Tickets [Member] | ||||
Revenue, Remaining Performance Obligation, Amount | 4,396,000 | $ 4,396,000 | ||
Revenue Performance Obligation [Member] | ||||
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | 73,000 | 73,000 | ||
Hotels or Resorts [Member] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 192,000 | $ 192,000 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Lease Obligations (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | Mar. 01, 2018 | Jan. 31, 2018 | Dec. 28, 2017 | |
Derivative, Amount of Hedged Item | $ 50,000,000 | ||||||
Interest Expense | $ 3,180,000 | $ 3,367,000 | $ 10,000,000 | $ 9,454,000 | |||
Commitment Minimum Lease Payments | 6,163,000 | ||||||
Repayments of Long-term Capital Lease Obligations | 1,375,000 | 782,000 | |||||
Obligation To Be Reduced In Next 12 Months | 5,140,000 | 5,140,000 | |||||
Interest Rate Fair Value Hedge Asset at Fair Value | $ 444,000 | 444,000 | $ 13,000 | ||||
Interest Rate Swap [Member] | |||||||
Derivative, Amount of Hedged Item | $ 25,000,000 | ||||||
Derivative, Fixed Interest Rate | 0.96% | ||||||
Interest Expense | $ 13,000 | ||||||
Interest Rate Swap Agreements One [Member] | |||||||
Derivative, Fixed Interest Rate | 2.559% | 2.559% | |||||
Derivative Liability, Notional Amount | $ 25,000,000 | $ 25,000,000 | |||||
Debt Instrument, Interest Rate, Basis for Effective Rate | one-month LIBOR 2.125% | ||||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | ||||||
Interest Rate Swap Agreements Two [Member] | |||||||
Derivative, Fixed Interest Rate | 2.687% | 2.687% | |||||
Derivative Liability, Notional Amount | $ 25,000,000 | $ 25,000,000 | |||||
Debt Instrument, Interest Rate, Basis for Effective Rate | one-month LIBOR 2.125% | ||||||
Debt Instrument, Maturity Date | Mar. 1, 2023 | ||||||
Digital Systems [Member] | |||||||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 45,510,000 | $ 45,510,000 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 39,103,000 | 39,103,000 | 34,471,000 | ||||
Furniture and Fixtures [Member] | |||||||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 438,000 | 438,000 | 255,000 | ||||
Capital Leased Assets, Gross | 1,712,000 | 1,712,000 | 1,712,000 | ||||
Building and Building Improvements [Member] | |||||||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 3,701,000 | 3,701,000 | 2,300,000 | ||||
Capital Leased Assets, Gross | 25,648,000 | 25,648,000 | $ 25,648,000 | ||||
Furniture and Fixtures AND Building and Building Improvements [Member] | |||||||
Repayments of Long-term Capital Lease Obligations | $ 808,000 | 874,000 | $ 2,424,000 | 2,424,000 | |||
Unsecured Senior Notes [Member] | |||||||
Debt Instrument, Face Amount | $ 50,000,000 | $ 50,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.32% | 4.32% | |||||
Mortgage Notes [Member] | |||||||
Debt Instrument, Face Amount | $ 15,000,000 | $ 15,000,000 | |||||
Debt Instrument, Interest Rate, Basis for Effective Rate | LIBOR plus 2.75% | ||||||
Repayments of Notes Payable | $ 24,226,000 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | Dec. 22, 2017 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate | 13.90% | 38.60% | 21.50% | 37.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 170,599 | $ 162,375 | $ 532,088 | $ 487,971 |
Operating income (loss) | 22,413 | 21,863 | 68,536 | 59,485 | |
Depreciation and amortization | 14,569 | 12,993 | 42,899 | 37,544 | |
Theatres [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 95,009 | 90,273 | 333,397 | 296,636 |
Operating income (loss) | 14,457 | 15,861 | 66,317 | 58,576 | |
Depreciation and amortization | 9,867 | 8,399 | 28,751 | 24,000 | |
Hotels/Resorts [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 75,492 | 71,952 | 198,373 | 190,903 |
Operating income (loss) | 12,024 | 9,659 | 15,737 | 12,803 | |
Depreciation and amortization | 4,616 | 4,512 | 13,890 | 13,270 | |
Corporate Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 98 | 150 | 318 | 432 |
Operating income (loss) | (4,068) | (3,657) | (13,518) | (11,894) | |
Depreciation and amortization | $ 86 | $ 82 | $ 258 | $ 274 | |
[1] | Revenues include cost reimbursements of $9,088 for the 13 weeks ended September 27, 2018 (Theatres - $218, Hotels/Resorts - $8,870); $8,557 for the 13 weeks ended September 28, 2017 (Theatres - $500, Hotels/Resorts - $8,057); $25,776 for the 39 weeks ended September 27, 2018 (Theatres - $1,084, Hotels/Resorts - $24,692); and $23,424 for the 39 weeks ended September 28, 2017 (Theatres - $1,659, Hotels/Resorts - $21,765). |
Business Segment Information _2
Business Segment Information (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2018 | Sep. 28, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | |
Revenue From Reimbursement | $ 9,088 | $ 8,557 | $ 25,776 | $ 23,424 |
Theatres [Member] | ||||
Revenue From Reimbursement | 218 | 500 | 1,084 | 1,659 |
Hotels Resorts [Member] | ||||
Revenue From Reimbursement | $ 8,870 | $ 8,057 | $ 24,692 | $ 21,765 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] - VSS-Southern Theatres LLC [Member] | 1 Months Ended |
Nov. 01, 2018USD ($)shares | |
Payments to Acquire Businesses, Gross | $ | $ 30,000,000 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,450,000 |