Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 25, 2014 | Aug. 11, 2014 | Dec. 25, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'BRINKER INTERNATIONAL INC | ' | ' |
Entity Central Index Key | '0000703351 | ' | ' |
Current Fiscal Year End Date | '--06-25 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 25-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 64,617,734 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $2,981,803,247 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Revenues [Abstract] | ' | ' | ' |
Company sales | $2,823,069 | $2,766,618 | $2,748,462 |
Franchise and other revenues | 82,383 | 79,480 | 72,260 |
Total revenues | 2,905,452 | 2,846,098 | 2,820,722 |
Operating Costs and Expenses: | ' | ' | ' |
Cost of sales | 758,028 | 758,377 | 769,729 |
Restaurant labor | 905,589 | 892,413 | 891,910 |
Restaurant expenses | 682,271 | 655,214 | 649,830 |
Company restaurant expenses | 2,345,888 | 2,306,004 | 2,311,469 |
Depreciation and amortization | 136,081 | 131,481 | 125,054 |
General and administrative | 132,094 | 134,538 | 143,388 |
Other gains and charges | 49,224 | 17,300 | 8,974 |
Total operating costs and expenses | 2,663,287 | 2,589,323 | 2,588,885 |
Operating income | 242,165 | 256,775 | 231,837 |
Interest expense | 28,091 | 29,118 | 26,800 |
Other, net | -2,214 | -2,658 | -3,772 |
Income before provision for income taxes | 216,288 | 230,315 | 208,809 |
Provision for income taxes | 62,249 | 66,956 | 57,577 |
Net income | 154,039 | 163,359 | 151,232 |
Basic net income per share: | ' | ' | ' |
Basic net income per share (in dollars per share) | $2.33 | $2.28 | $1.93 |
Diluted net income per share: | ' | ' | ' |
Diluted net income per share (in dollars per share) | $2.26 | $2.20 | $1.87 |
Basic weighted average shares outstanding (in shares) | 66,251 | 71,788 | 78,559 |
Diluted weighted average shares outstanding (in shares) | 68,152 | 74,158 | 80,664 |
Other Comprehensive Income (Loss) | ' | ' | ' |
Foreign Currency Translation Adjustment | -940 | 0 | 0 |
Other Comprehensive Loss | -940 | 0 | 0 |
Comprehensive Income | $153,099 | $163,359 | $151,232 |
Dividends per share (in dollars per share) | $0.96 | $0.80 | $0.64 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $57,685 | $59,367 |
Accounts receivable | 47,850 | 44,082 |
Inventories | 23,643 | 24,628 |
Prepaid expenses and other | 65,506 | 65,584 |
Income taxes receivable | 0 | 4,930 |
Deferred income taxes | 16,170 | 0 |
Total current assets | 210,854 | 198,591 |
Property and Equipment: | ' | ' |
Land | 149,184 | 147,581 |
Buildings and leasehold improvements | 1,483,894 | 1,435,426 |
Furniture and equipment | 593,344 | 580,115 |
Construction-in-progress | 32,844 | 20,588 |
Gross property and equipment | 2,259,266 | 2,183,710 |
Less accumulated depreciation and amortization | -1,202,812 | -1,147,895 |
Net property and equipment | 1,056,454 | 1,035,815 |
Other Assets: | ' | ' |
Goodwill | 133,434 | 142,103 |
Deferred income taxes | 30,090 | 24,064 |
Intangibles | 18,841 | 10,696 |
Other | 40,931 | 41,334 |
Total other assets | 223,296 | 218,197 |
Total assets | 1,490,604 | 1,452,603 |
Current Liabilities: | ' | ' |
Current installments of long-term debt | 27,884 | 27,596 |
Accounts payable | 102,931 | 93,326 |
Accrued liabilities | 328,017 | 269,465 |
Income taxes payable | 7,278 | 0 |
Deferred income taxes | 0 | 845 |
Total current liabilities | 466,110 | 391,232 |
Long-term debt, less current installments | 832,302 | 780,121 |
Other liabilities | 129,098 | 131,893 |
Commitments and Contingencies (Notes 9 and 14) | ' | ' |
Shareholders’ Equity: | ' | ' |
Common stock—250,000,000 authorized shares; $.10 par value; 176,246,649 shares issued and 64,558,909 shares outstanding at June 25, 2014 and 176,246,649 shares issued and 67,444,099 shares outstanding at June 26, 2013 | 17,625 | 17,625 |
Additional paid-in capital | 484,320 | 477,420 |
Accumulated Other Comprehensive Loss | -940 | 0 |
Retained earnings | 2,306,532 | 2,217,623 |
Shareholders' equity including treasury stock | 2,807,537 | 2,712,668 |
Less treasury stock, at cost (111,687,740 shares at June 25, 2014 and 108,802,550 shares at June 26, 2013) | -2,744,443 | -2,563,311 |
Total shareholders’ equity | 63,094 | 149,357 |
Total liabilities and shareholders’ equity | $1,490,604 | $1,452,603 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares issued | 176,246,649 | 176,246,649 |
Common stock, shares outstanding | 64,558,909 | 67,444,099 |
Treasury stock, shares | 111,687,740 | 108,802,550 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Jun. 29, 2011 | $438,910 | $17,625 | $463,688 | $2,013,189 | ($2,055,592) | $0 |
Balance, shares at Jun. 29, 2011 | ' | 82,938,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 151,232 | 0 | 0 | 151,232 | 0 | 0 |
Other Comprehensive Loss | 0 | ' | ' | ' | ' | ' |
Dividends | -51,563 | 0 | 0 | -51,563 | 0 | 0 |
Stock-based compensation | 13,461 | 0 | 13,461 | 0 | 0 | 0 |
Purchases of treasury stock | -287,291 | 0 | -2,901 | 0 | -284,390 | 0 |
Purchases of treasury stock, shares | ' | -10,966,000 | ' | ' | ' | ' |
Issuances of common stock | 43,416 | 0 | -9,175 | 0 | 52,591 | 0 |
Issuances of common stock, shares | ' | 2,370,000 | ' | ' | ' | ' |
Excess tax benefit from stock-based compensation | 1,708 | 0 | 1,708 | 0 | 0 | 0 |
Balance at Jun. 27, 2012 | 309,873 | 17,625 | 466,781 | 2,112,858 | -2,287,391 | 0 |
Balance, shares at Jun. 27, 2012 | ' | 74,342,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 163,359 | 0 | 0 | 163,359 | 0 | 0 |
Other Comprehensive Loss | 0 | ' | ' | ' | ' | ' |
Dividends | -58,594 | 0 | 0 | -58,594 | 0 | 0 |
Stock-based compensation | 16,610 | 0 | 16,610 | 0 | 0 | 0 |
Purchases of treasury stock | -333,384 | 0 | -5,565 | 0 | -327,819 | 0 |
Purchases of treasury stock, shares | ' | -9,176,000 | ' | ' | ' | ' |
Issuances of common stock | 41,190 | 0 | -10,709 | 0 | 51,899 | 0 |
Issuances of common stock, shares | ' | 2,278,000 | ' | ' | ' | ' |
Excess tax benefit from stock-based compensation | 10,303 | 0 | 10,303 | 0 | 0 | 0 |
Balance at Jun. 26, 2013 | 149,357 | 17,625 | 477,420 | 2,217,623 | -2,563,311 | 0 |
Balance, shares at Jun. 26, 2013 | 67,444,099 | 67,444,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 154,039 | 0 | 0 | 154,039 | 0 | 0 |
Other Comprehensive Loss | -940 | 0 | 0 | 0 | 0 | -940 |
Dividends | -65,130 | 0 | 0 | -65,130 | 0 | 0 |
Stock-based compensation | 16,888 | 0 | 16,888 | 0 | 0 | 0 |
Purchases of treasury stock | -239,597 | 0 | -6,103 | 0 | -233,494 | 0 |
Purchases of treasury stock, shares | ' | -5,079,000 | ' | ' | ' | ' |
Issuances of common stock | 29,295 | 0 | -23,067 | 0 | 52,362 | 0 |
Issuances of common stock, shares | ' | 2,194,000 | ' | ' | ' | ' |
Excess tax benefit from stock-based compensation | 19,182 | 0 | 19,182 | 0 | 0 | 0 |
Balance at Jun. 25, 2014 | $63,094 | $17,625 | $484,320 | $2,306,532 | ($2,744,443) | ($940) |
Balance, shares at Jun. 25, 2014 | 64,558,909 | 64,559,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | |
Dividends, per share (in dollars per share) | $0.96 | $0.80 | $0.64 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $154,039 | $163,359 | $151,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 136,081 | 131,481 | 125,054 |
Litigation reserves | 39,500 | 0 | 0 |
Restructure charges and other impairments | 8,533 | 11,425 | 10,396 |
Deferred income taxes | -23,041 | -4,793 | 11,808 |
Net loss (gain) on disposal of assets | 5,161 | -6,905 | 490 |
Stock-based compensation | 16,074 | 15,909 | 13,461 |
(Gain) loss on equity investments | -328 | 851 | 1,350 |
Other | 707 | 363 | 799 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -5,372 | 5,398 | 608 |
Inventories | 912 | 908 | -15 |
Prepaid expenses and other | 1,827 | 82 | -2,984 |
Intangibles and other assets | -3,397 | -4,115 | 489 |
Current income taxes | 14,087 | 749 | -3,874 |
Accounts payable | 3,756 | -9,339 | 12,188 |
Accrued liabilities | 14,617 | -9,381 | -17,197 |
Other liabilities | -3,314 | -5,304 | -367 |
Net cash provided by operating activities | 359,842 | 290,688 | 303,438 |
Cash Flows from Investing Activities: | ' | ' | ' |
Payments for property and equipment | -161,066 | -131,531 | -125,226 |
Proceeds from sale of assets | 888 | 17,157 | 8,112 |
Payments for purchase of restaurants | 0 | -24,622 | -3,120 |
Insurance recoveries | 0 | 1,152 | 0 |
Investment in equity method investee | 0 | 0 | -3,170 |
Net cash used in investing activities | -160,178 | -137,844 | -123,404 |
Cash Flows from Financing Activities: | ' | ' | ' |
Purchases of treasury stock | -239,597 | -333,384 | -287,291 |
Borrowings on revolving credit facility | 120,000 | 110,000 | 40,000 |
Payments of dividends | -63,395 | -56,343 | -50,081 |
Payments on revolving credit facility | -40,000 | -150,000 | 0 |
Proceeds from issuances of treasury stock | 29,295 | 41,190 | 43,416 |
Payments on long-term debt | -26,521 | -316,380 | -18,749 |
Excess tax benefits from stock-based compensation | 18,872 | 8,778 | 1,406 |
Proceeds from issuance of long-term debt | 0 | 549,528 | 70,000 |
Payments for deferred financing costs | 0 | -5,969 | -1,620 |
Net cash used in financing activities | -201,346 | -152,580 | -202,919 |
Net change in cash and cash equivalents | -1,682 | 264 | -22,885 |
Cash and cash equivalents at beginning of year | 59,367 | 59,103 | 81,988 |
Cash and cash equivalents at end of year | $57,685 | $59,367 | $59,103 |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Jun. 25, 2014 | |||||||||
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | ' | ||||||||
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
(a) Nature of Operations | |||||||||
We are principally engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (“Chili’s”) and Maggiano’s Little Italy (“Maggiano’s”) restaurant brands. At June 25, 2014, we owned, operated, or franchised 1,615 restaurants in the United States and 30 countries and two territories outside of the United States. | |||||||||
(b) Basis of Presentation | |||||||||
Our consolidated financial statements include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
We have a 52/53 week fiscal year ending on the last Wednesday in June. Fiscal years 2014, 2013, and 2012 which ended on June 25, 2014, June 26, 2013, and June 27, 2012, respectively, each contained 52 weeks. | |||||||||
Beginning in fiscal 2014, other comprehensive income is presented on the newly titled consolidated statements of comprehensive income. On June 1, 2013, we completed the acquisition of 11 Chili's restaurants in Alberta, Canada from an existing franchisee and have included the results of operations of the Canadian restaurants in our consolidated financial statements from the date of acquisition. The foreign currency translation adjustment included in comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants from Canadian dollars, the functional currency, to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the business. The accumulated other comprehensive loss is presented on the consolidated balance sheets. Additionally, certain prior year balances in the consolidated balance sheets have been reclassified to conform with fiscal 2014 presentation. These reclassifications have no effect on our net income as previously reported and an immaterial impact on our prior year consolidated balance sheets. | |||||||||
Revenues are presented in two separate captions on the consolidated statements of comprehensive income to provide more clarity around company-owned restaurant revenue and operating expense trends. Company sales includes revenues generated by the operation of company-owned restaurants including gift card redemptions. Franchise and other revenues includes royalties, development fees, franchise fees, Maggiano's banquet service charge income, certain gift card activity (breakage and discounts) and Ziosk gaming revenue. | |||||||||
We report certain labor and related expenses in a separate caption on the consolidated statements of comprehensive income titled restaurant labor. Restaurant labor includes all compensation-related expenses, including benefits and incentive compensation, for restaurant team members at the general manager level and below. Labor-related expenses attributable to multi-restaurant (or above-restaurant) supervision is included in restaurant expenses. | |||||||||
(c) Use of Estimates | |||||||||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
(d) Revenue Recognition | |||||||||
We record revenue from the sale of food, beverages and alcohol as products are sold. Initial fees received from a franchisee to establish a new franchise are recognized as income when we have performed our obligations required to assist the franchisee in opening a new franchise restaurant, which is generally upon the opening of such restaurant. Fees received for development arrangements are recognized as income upon payment of the fees. Continuing royalties, which are a percentage of net sales of franchised restaurants, are accrued as income when earned. | |||||||||
Proceeds from the sale of gift cards are recorded as deferred revenue and recognized as revenue when the gift card is redeemed by the holder. Breakage income represents the value associated with the portion of gift cards sold that will most likely never be redeemed. Based on our historical gift card redemption patterns and considering our gift cards have no expiration dates or dormancy fees, we can reasonably estimate the amount of gift card balances for which redemption is remote and record breakage income based on this estimate. We recognize breakage income within franchise and other revenues in the consolidated statements of comprehensive income. We update our estimate of our breakage rate periodically and, if necessary, adjust the deferred revenue balance accordingly. | |||||||||
(e) Fair Value Measurements | |||||||||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: | |||||||||
• | Level 1—inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||
• | Level 2—inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. | ||||||||
• | Level 3—inputs are unobservable and reflect our own assumptions. | ||||||||
(f) Cash and Cash Equivalents | |||||||||
Our policy is to invest cash in excess of operating requirements in income-producing investments. Income-producing investments with original maturities of three months or less are reflected as cash equivalents. | |||||||||
(g) Accounts Receivable | |||||||||
Accounts receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. Provisions for doubtful accounts are recorded based on management’s judgment regarding our ability to collect as well as the age of the receivables. Accounts receivable are written off when they are deemed uncollectible. | |||||||||
(h) Inventories | |||||||||
Inventories consist of food, beverages and supplies and are valued at the lower of cost or market. During fiscal 2013, we began implementing a new restaurant information system for all company-owned restaurants and changed from the weighted average cost method to the first-in, first-out or “FIFO” method. The system implementation process was completed in fiscal 2013 for all Chili's restaurants and in fiscal 2014 for all Maggiano's restaurants. As of June 25, 2014, all inventories are valued using the FIFO method. As of June 26, 2013, inventories located at all Chili’s as well as the converted Maggiano’s restaurants are valued using the FIFO method and inventories at non-converted Maggiano's restaurants are stated at weighted average cost. The change in inventory valuation methods did not have a material impact on our consolidated financial statements. | |||||||||
(i) Property and Equipment | |||||||||
Property and equipment is stated at cost. Buildings and leasehold improvements are depreciated using the straight-line method over the lesser of the life of the lease, including renewal options, or the estimated useful lives of the assets, which range from 5 to 20 years. Furniture and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. Routine repair and maintenance costs are expensed when incurred. Major replacements and improvements are capitalized. | |||||||||
We review the carrying amount of property and equipment semi-annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on projected discounted future operating cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. | |||||||||
(j) Operating Leases | |||||||||
Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty such that the renewal appears reasonably assured. The straight-line rent calculation and rent expense includes the rent holiday period, which is the period of time between taking control of a leased site and the rent commencement date. Contingent rents are generally amounts due as a result of sales in excess of amounts stipulated in certain restaurant leases and are included in rent expense as they are incurred. Landlord contributions are recorded when received as a deferred rent liability and amortized as a reduction of rent expense on a straight-line basis over the lesser of the lease term, including renewal options, or 20 years. | |||||||||
(k) Advertising | |||||||||
Advertising production costs are expensed in the period when the advertising first takes place. Other advertising costs are expensed as incurred. Advertising costs, net of advertising contributions from franchisees, were $92.2 million, $82.8 million and $80.4 million million in fiscal 2014, 2013, and 2012, respectively, and are included in restaurant expenses in the consolidated statements of comprehensive income. | |||||||||
(l) Goodwill and Other Intangibles | |||||||||
Goodwill is not subject to amortization, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill has been assigned to reporting units for purposes of impairment testing. Our two restaurant brands, Chili’s and Maggiano’s, are both reporting units and operating segments. We have established that the appropriate level to evaluate goodwill is at the operating segment level. The menu items, services offered and food preparation are virtually identical at each restaurant within the reporting unit and our targeted customer is consistent across each brand. We maintain a centralized purchasing department which manages all purchasing and distribution for our restaurants. In addition, contracts for our food supplies are negotiated at a consolidated level in order to secure the best prices and maintain similar quality across all of our brands. Local laws, regulations and other issues may result in slightly different legal and regulatory environments; however, the overall regulatory climate within and across our operating segments is quite similar. As such, we believe that aggregating components is appropriate for the evaluation of goodwill. | |||||||||
Goodwill impairment tests consist of a comparison of each reporting unit’s fair value with its carrying value. We determine fair value based on a combination of market based values and projected discounted future operating cash flows of the restaurant brands using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We determined that there was no goodwill impairment during our annual test as the fair value of our reporting units was substantially in excess of the carrying value. No indicators of impairment were identified through the end of fiscal year 2014. See Note 5 for additional disclosures related to goodwill. | |||||||||
We occasionally acquire restaurants from our franchisees. Goodwill from these acquisitions represents the excess of the cost of the business acquired over the net amounts assigned to assets acquired, including identifiable intangible assets, primarily reacquired franchise rights. In connection with the sale of restaurants, we will allocate goodwill from the reporting unit, or restaurant brand, to the disposal group in the determination of the gain or loss on the disposition. The allocation is based on the relative fair values of the disposal group and the portion of the reporting unit that was retained. If we dispose of a restaurant brand and all related restaurants, the entire goodwill balance associated with the reporting unit or brand will be included in the disposal group for purposes of determining the gain or loss on the disposition. Additionally, if we sell restaurants with reacquired franchise rights, we will include those assets in the gain or loss on the disposition. | |||||||||
Reacquired franchise rights are also reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income.We determined that there was no impairment of reacquired franchise rights during our annual test and no indicators of impairment were identified through the end of fiscal year 2014. | |||||||||
(m) Liquor Licenses | |||||||||
The costs of obtaining non-transferable liquor licenses from local government agencies are expensed over the specified term of the license. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in intangibles. | |||||||||
Liquor licenses are reviewed for impairment semi-annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on prices in the open market for licenses in same or similar jurisdictions. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. | |||||||||
(n) Sales Taxes | |||||||||
Sales taxes collected from guests are excluded from revenues. The obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. | |||||||||
(o) Self-Insurance Program | |||||||||
We are self-insured for certain losses related to health, general liability and workers’ compensation. We maintain stop loss coverage with third party insurers to limit our total exposure. The self-insurance liability represents an estimate of the ultimate cost of claims incurred and unpaid as of the balance sheet date. The estimated liability is not discounted and is established based upon analysis of historical data and actuarial estimates, and is reviewed on a quarterly basis to ensure that the liability is appropriate. If actual trends, including the severity or frequency of claims, differ from our estimates, our financial results could be impacted. Accrued and other liabilities include the estimated incurred but unreported costs to settle unpaid claims and estimated future claims. | |||||||||
(p) Income Taxes | |||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||
We record a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return. We recognize any interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||
(q) Stock-Based Compensation | |||||||||
We measure and recognize compensation cost at fair value for all share-based payments. We record compensation expense using a graded-vesting schedule or on a straight-line basis, as applicable, over the vesting period, or to the date on which retirement eligibility is achieved, if shorter (non-substantive vesting period approach). | |||||||||
Certain employees are eligible to receive stock options, performance shares, restricted stock and restricted stock units, while non-employee members of the Board of Directors are eligible to receive stock options, restricted stock and restricted stock units. Performance shares represent a right to receive shares of common stock upon satisfaction of company performance goals at the end of a three-year cycle. Performance shares are paid out in common stock and are fully vested upon issuance. The fair value of performance shares is determined on the date of grant based on a Monte Carlo simulation model. The fair value of restricted stock and restricted stock units are based on our closing stock price on the date of grant. | |||||||||
Stock-based compensation expense totaled approximately $16.9 million, $16.6 million and $13.5 million for fiscal 2014, 2013 and 2012, respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income related to stock-based compensation expense was approximately $6.9 million, $6.6 million and $5.1 million during fiscal 2014, 2013 and 2012, respectively. | |||||||||
The weighted average fair values of option grants were $14.75, $12.94 and $9.35 during fiscal 2014, 2013 and 2012, respectively. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||
2014 | 2013 | 2012 | |||||||
Expected volatility | 47.7 | % | 53.4 | % | 56.7 | % | |||
Risk-free interest rate | 1.6 | % | 0.7 | % | 0.9 | % | |||
Expected lives | 5 years | 5 years | 5 years | ||||||
Dividend yield | 2.2 | % | 2.4 | % | 2.6 | % | |||
Expected volatility and the expected life of stock options are based on historical experience. The risk-free rate is based on the yield of a Treasury Note with a term equal to the expected life of the stock options. The dividend yield is based on the most recent quarterly dividend per share declared and the closing stock price on the declaration date. | |||||||||
(r) Preferred Stock | |||||||||
Our Board of Directors is authorized to provide for the issuance of 1.0 million preferred shares with a par value of $1.00 per share, in one or more series, and to fix the voting rights, liquidation preferences, dividend rates, conversion rights, redemption rights, and terms, including sinking fund provisions, and certain other rights and preferences. As of June 25, 2014, no preferred shares were issued. | |||||||||
(s) Shareholders’ Equity | |||||||||
In August 2013, our Board of Directors authorized a $200.0 million increase to our existing share repurchase program resulting in total authorizations of $3,585.0 million. We repurchased approximately 5.1 million shares of our common stock for $239.6 million during fiscal 2014. As of June 25, 2014, approximately $307 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs. Repurchased common stock is reflected as a reduction of shareholders’ equity. During fiscal 2014, approximately 1.2 million stock options were exercised resulting in cash proceeds of $29.3 million. | |||||||||
We paid dividends of $63.4 million to common stock shareholders during fiscal 2014, compared to $56.3 million in the prior year. Additionally, we declared a quarterly dividend of $15.6 million, or $0.24 per share, in May 2014 which was paid on June 26, 2014. | |||||||||
(t) Comprehensive Income | |||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Fiscal 2014 comprehensive income consists of net income and foreign currency translation adjustments. The foreign currency translation adjustment represents the unrealized impact of translating the financial statements of the Canadian restaurants from Canadian dollars, the functional currency, to U.S. dollars. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. Fiscal 2013 and 2012 comprehensive income consists of net income. | |||||||||
(u) Net Income Per Share | |||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards, determined using the treasury stock method. We had approximately 113,000 stock options and restricted share awards outstanding at June 25, 2014, 193,000 stock options and restricted share awards outstanding at June 26, 2013, and 287,000 stock options and restricted share awards outstanding at June 27, 2012 that were not included in the dilutive earnings per share calculation because the effect would have been antidilutive. | |||||||||
Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): | |||||||||
2014 | 2013 | 2012 | |||||||
Basic weighted average shares outstanding | 66,251 | 71,788 | 78,559 | ||||||
Dilutive stock options | 853 | 955 | 738 | ||||||
Dilutive restricted shares | 1,048 | 1,415 | 1,367 | ||||||
1,901 | 2,370 | 2,105 | |||||||
Diluted weighted average shares outstanding | 68,152 | 74,158 | 80,664 | ||||||
(v) Segment Reporting | |||||||||
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Two or more operating segments may be aggregated into a single operating segment if they have similar economic characteristics and are similar in the following areas: | |||||||||
• | The nature of products and services | ||||||||
• | Nature of production processes | ||||||||
• | Type or class of customer | ||||||||
• | Methods used to distribute products or provide services | ||||||||
• | The nature of the regulatory environment, if applicable | ||||||||
Our two brands have similar types of products, contracts, customers and employees and all operate as full-service restaurants offering lunch and dinner in the casual-dining segment of the industry. In addition, we have similar long-term average margins across our brands. Therefore, we believe we meet the criteria for aggregating operating segments into a single reporting segment. |
Acquisition
Acquisition | 12 Months Ended |
Jun. 25, 2014 | |
Business Combinations [Abstract] | ' |
ACQUISITION OF CHILI'S RESTAURANTS | ' |
ACQUISITION OF CHILI'S RESTAURANTS | |
On June 1, 2013, we completed the acquisition of 11 Chili's restaurants in Alberta, Canada from an existing franchisee for $24.6 million in cash. The results of operations of the Canadian restaurants are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of the Canadian restaurants were recorded at their respective fair values as of the date of acquisition. During fiscal 2014, we completed the valuation of the reacquired franchise rights and recorded the asset at an estimated fair value of $8.9 million in intangibles on the consolidated balance sheet, with a corresponding decrease to goodwill. This asset is amortized using the straight-line method over the estimated useful life of eleven years. | |
The excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill. We expect the majority of the goodwill balance to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents benefits expected as a result of the acquisition, including sales and unit growth opportunities. As a result of the acquisition, we incurred expenses of approximately $0.4 million during fiscal 2013, which are included in other gains and charges in our consolidated statement of comprehensive income. Pro-forma financial information of the combined entities for periods prior to the acquisition is not presented due to the immaterial impact of the financial results of the Canadian restaurants on our consolidated financial statements. |
INVESTMENTS_AND_OTHER_DISPOSIT
INVESTMENTS AND OTHER DISPOSITIONS | 12 Months Ended |
Jun. 25, 2014 | |
Disclosure Investments And Other Dispositions Narrative [Abstract] | ' |
INVESTMENTS AND OTHER DISPOSITIONS | ' |
INVESTMENTS AND OTHER DISPOSITIONS | |
(a) Investments | |
We have a joint venture agreement with CMR, S.A.B. de C.V. to develop 50 Chili’s restaurants in Mexico. At June 25, 2014, 36 Chili’s restaurants were operating in the joint venture. We account for the Mexico joint venture investment under the equity method of accounting and record our share of the net income or loss of the investee within operating income since their operations are similar to our ongoing operations. These amounts have been included in restaurant expense in our consolidated statements of comprehensive income due to the immaterial nature of the amounts. The investment in the joint venture is included in other assets in our consolidated balance sheets. | |
In fiscal 2011, we entered into a joint venture investment with BTTO Participacoes Ltda (“BTTO”) to develop Chili's restaurants in Brazil. During fiscal 2012, we made capital contributions of $1.6 million to the joint venture and opened one restaurant. We accounted for this investment under the equity method of accounting until April 2012 when we purchased BTTO’s interest in the joint venture for approximately $1.5 million and began consolidating the entity’s results. In the fourth quarter of fiscal 2013, we fully impaired the property and equipment and recorded a charge in other gains and charges in the consolidated statement of comprehensive income. The restaurant was subsequently closed in July 2013. | |
(b) Other Dispositions | |
In April 2013, we sold our remaining ownership interest in Romano’s Macaroni Grill (“Macaroni Grill”) for approximately $8.3 million in cash proceeds. This amount was recorded as a gain in other gains and charges in the consolidated statement of comprehensive income in fiscal 2013. |
OTHER_GAINS_AND_CHARGES
OTHER GAINS AND CHARGES | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Disclosure Other Gains And Charges [Abstract] | ' | |||||||||||
OTHER GAINS AND CHARGES | ' | |||||||||||
OTHER GAINS AND CHARGES | ||||||||||||
Other gains and charges consist of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Litigation reserves | $ | 39,500 | $ | 0 | $ | 0 | ||||||
Restaurant impairment charges | 4,502 | 5,276 | 3,139 | |||||||||
Restaurant closure charges | 3,413 | 3,637 | 4,655 | |||||||||
Severance and other benefits | 2,140 | 2,235 | 0 | |||||||||
Gain on the sale of assets, net | (608 | ) | (11,228 | ) | (3,306 | ) | ||||||
Loss on extinguishment of debt | 0 | 15,768 | 0 | |||||||||
Impairment of liquor licenses | 0 | 170 | 2,641 | |||||||||
Other | 277 | 1,442 | 1,845 | |||||||||
$ | 49,224 | $ | 17,300 | $ | 8,974 | |||||||
Other gains and charges in fiscal 2014 includes charges of approximately $39.5 million related to various litigation matters including a class action litigation pending in California. See Note 14 for additional disclosures. | ||||||||||||
During fiscal 2014, we recorded restaurant impairment charges of $4.5 million related to underperforming restaurants that either continue to operate or are scheduled to close. We also recorded $3.4 million of restaurant closure charges consisting primarily of lease termination charges and other costs associated with closed restaurants. Additionally, we incurred $2.1 million in severance and other benefits related to organization changes made during the fiscal year. The severance charges include expense related to the accelerated vesting of stock-based compensation awards. Furthermore, a $0.6 million gain was recorded primarily related to land sales. | ||||||||||||
In June 2013, we redeemed the 5.75% notes due May 2014, resulting in a charge of $15.8 million representing the remaining interest payments and unamortized debt issuance costs and discount. See Note 8 for additional disclosures related to fiscal 2013 activity. | ||||||||||||
During fiscal 2013, we recorded restaurant impairment charges of $5.3 million primarily related to the impairment of the company-owned restaurant in Brazil which subsequently closed in fiscal 2014. We also recorded $3.6 million of restaurant closure charges, consisting primarily of $2.3 million of lease termination charges and $0.9 million related to the write-down of land associated with a closed facility. Additionally, we incurred $2.2 million in severance and other benefits related to organizational changes. The severance charges include expense related to the accelerated vesting of stock-based compensation awards. In fiscal 2013, we also recognized gains of $11.2 million on the sale of assets, including an $8.3 million gain on the sale of our remaining interest in Macaroni Grill and net gains of $2.9 million related to land sales. | ||||||||||||
During fiscal 2012, we recorded restaurant impairment charges of $3.1 million related to underperforming restaurants that either continue to operate or are scheduled to close. We also recorded 2.6 million of impairment charges for the excess of the carrying amount of certain transferable liquor licenses over their fair value. Additionally, we incurred $4.7 million of restaurant closure charges primarily related to lease termination charges associated with restaurants closed in prior years and a long-lived asset impairment charge of $0.4 million resulting from closures. Furthermore, a $3.3 million gain was recorded primarily related to land sales during the fiscal year. | ||||||||||||
The restaurant and liquor license impairment charges were measured as the excess of the carrying amount of property and equipment or liquor licenses over the fair value. See Note 10 for fair value disclosures related to these impairment charges. |
GOODWILL
GOODWILL | 12 Months Ended | |||||||||||||||||||
Jun. 25, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||
GOODWILL AND INTANGIBLES | ||||||||||||||||||||
The changes in the carrying amount of goodwill for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Balance at beginning of year: | ||||||||||||||||||||
Goodwill | $ | 204,937 | $ | 188,438 | ||||||||||||||||
Accumulated impairment losses(a) | (62,834 | ) | (62,834 | ) | ||||||||||||||||
142,103 | 125,604 | |||||||||||||||||||
Changes in goodwill: | ||||||||||||||||||||
Additions(b) | 0 | 16,499 | ||||||||||||||||||
Adjustments(c) | (8,387 | ) | 0 | |||||||||||||||||
Foreign currency translation adjustment | (282 | ) | 0 | |||||||||||||||||
Balance at end of year: | ||||||||||||||||||||
Goodwill | 196,268 | 204,937 | ||||||||||||||||||
Accumulated impairment losses | (62,834 | ) | (62,834 | ) | ||||||||||||||||
$ | 133,434 | $ | 142,103 | |||||||||||||||||
____________________________________________________________________ | ||||||||||||||||||||
(a) | The impairment losses recorded in prior years are related to restaurant brands that we no longer own. | |||||||||||||||||||
(b) | Additions for the prior year reflect the preliminary goodwill acquired as a result of the Canada acquisition. | |||||||||||||||||||
(c) | The valuation of the reacquired franchise rights associated with the Canada acquisition was finalized during fiscal 2014 and a fair value of approximately $8.9 million was assigned to the intangible asset. There was no value assigned to these rights in the preliminary purchase price allocation presented at June 26, 2013. Intangibles was increased by approximately $8.9 million with a corresponding decrease to goodwill. | |||||||||||||||||||
Intangible assets, net for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||
Reacquired franchise rights | $ | 9,107 | $ | (1,121 | ) | $ | 7,986 | $ | 560 | $ | (241 | ) | $ | 319 | ||||||
Other | 872 | (292 | ) | 580 | 364 | (210 | ) | 154 | ||||||||||||
$ | 9,979 | $ | (1,413 | ) | $ | 8,566 | $ | 924 | $ | (451 | ) | $ | 473 | |||||||
Indefinite-lived intangible assets | ||||||||||||||||||||
Liquor licenses | $ | 10,275 | $ | 10,223 | ||||||||||||||||
Amortization expense for all definite-lived intangible assets was $1.0 million, $0.2 million and $0.2 million in fiscal 2014, 2013 and 2012, respectively. Amortization expense for definite-lived intangible assets will approximate $0.9 million for the next five fiscal years. |
ACCRUED_AND_OTHER_LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
ACCRUED AND OTHER LIABILITIES [Abstract] | ' | |||||||
ACCRUED AND OTHER LIABILITIES | ' | |||||||
ACCRUED AND OTHER LIABILITIES | ||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Gift cards | $ | 104,378 | $ | 91,893 | ||||
Payroll | 77,585 | 77,238 | ||||||
Litigation reserves | 39,500 | 0 | ||||||
Sales tax | 19,622 | 18,613 | ||||||
Insurance | 20,652 | 17,743 | ||||||
Property tax | 14,209 | 14,119 | ||||||
Dividends | 15,625 | 13,511 | ||||||
Other | 36,446 | 36,348 | ||||||
$ | 328,017 | $ | 269,465 | |||||
Other liabilities consist of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Straight-line rent | $ | 57,462 | $ | 57,129 | ||||
Insurance | 36,352 | 38,602 | ||||||
Landlord contributions | 23,404 | 24,029 | ||||||
Unrecognized tax benefits | 5,247 | 5,055 | ||||||
Other | 6,633 | 7,078 | ||||||
$ | 129,098 | $ | 131,893 | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current income tax expense: | ||||||||||||
Federal | $ | 66,170 | $ | 46,852 | $ | 27,707 | ||||||
State | 15,219 | 11,800 | 7,056 | |||||||||
Foreign | 3,550 | 2,879 | 5,098 | |||||||||
Total current income tax expense | 84,939 | 61,531 | 39,861 | |||||||||
Deferred income tax (benefit) expense: | ||||||||||||
Federal | (18,715 | ) | 7,344 | 16,520 | ||||||||
State | (4,087 | ) | (1,919 | ) | 1,196 | |||||||
Foreign | 112 | 0 | 0 | |||||||||
Total deferred income tax (benefit) expense | (22,690 | ) | 5,425 | 17,716 | ||||||||
$ | 62,249 | $ | 66,956 | $ | 57,577 | |||||||
A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory Federal income tax rate of 35% to income before provision for income taxes is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax expense at statutory rate | $ | 75,701 | $ | 80,610 | $ | 73,083 | ||||||
FICA tax credit | (18,116 | ) | (16,450 | ) | (16,609 | ) | ||||||
State income taxes, net of Federal benefit | 7,636 | 6,368 | 4,750 | |||||||||
Other | (2,972 | ) | (3,572 | ) | (3,647 | ) | ||||||
$ | 62,249 | $ | 66,956 | $ | 57,577 | |||||||
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Leasing transactions | $ | 40,085 | $ | 40,662 | ||||||||
Stock-based compensation | 13,698 | 13,250 | ||||||||||
Restructure charges and impairments | 16,726 | 2,885 | ||||||||||
Insurance reserves | 18,550 | 18,595 | ||||||||||
Employee benefit plans | 404 | 544 | ||||||||||
Gift cards | 15,497 | 13,171 | ||||||||||
Other, net | 8,975 | 10,903 | ||||||||||
Total deferred income tax assets | 113,935 | 100,010 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Prepaid expenses | 16,462 | 15,776 | ||||||||||
Goodwill and other amortization | 26,551 | 25,333 | ||||||||||
Depreciation and capitalized interest on property and equipment | 20,982 | 32,160 | ||||||||||
Other, net | 3,680 | 3,522 | ||||||||||
Total deferred income tax liabilities | 67,675 | 76,791 | ||||||||||
Net deferred income tax asset | $ | 46,260 | $ | 23,219 | ||||||||
A reconciliation of unrecognized tax benefits for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 6,388 | $ | 7,336 | ||||||||
Additions based on tax positions related to the current year | 1,582 | 754 | ||||||||||
Additions based on tax positions related to prior years | 347 | 7 | ||||||||||
Settlements with tax authorities | (339 | ) | (930 | ) | ||||||||
Expiration of statute of limitations | (603 | ) | (779 | ) | ||||||||
Balance at end of year | $ | 7,375 | $ | 6,388 | ||||||||
The total amount of unrecognized tax benefits that would favorably affect the effective tax rate if resolved in our favor due to the effect of deferred tax benefits was $4.9 million and $4.3 million as of June 25, 2014 and June 26, 2013, respectively. During the next twelve months, we anticipate that it is reasonably possible that the amount of unrecognized tax benefits could be reduced by approximately $0.5 million ($0.3 million of which would affect the effective tax rate due to the effect of deferred tax benefits) either because our tax position will be sustained upon audit or as a result of the expiration of the statute of limitations for specific jurisdictions. | ||||||||||||
We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal 2014, we recognized a benefit of approximately $0.3 million in interest. During fiscal 2013 and 2012, we recognized an expense of approximately $0.5 million and a benefit of $0.3 million, respectively, in interest due to the reduction of accrued interest from statute expirations and settlements, net of accrued interest for remaining positions. As of June 25, 2014, we had $2.5 million ($1.7 million net of a $0.8 million Federal deferred tax benefit) of interest and penalties accrued, compared to $2.1 million ($1.5 million net of a $0.6 million Federal deferred tax benefit) at June 26, 2013. |
DEBT
DEBT | 12 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT | ' | |||||||
DEBT | ||||||||
Long-term debt consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
3.88% notes | $ | 299,736 | $ | 299,707 | ||||
2.60% notes | 249,864 | 249,829 | ||||||
Term loan | 187,500 | 212,500 | ||||||
Revolving credit facility | 80,000 | 0 | ||||||
Capital lease obligations (see Note 9) | 43,086 | 45,681 | ||||||
860,186 | 807,717 | |||||||
Less current installments | (27,884 | ) | (27,596 | ) | ||||
$ | 832,302 | $ | 780,121 | |||||
Our credit facility, which matures in August 2016, includes a $250 million revolver and a $250 million term loan. During fiscal 2014, $120.0 million was drawn from the revolver to fund share repurchases. We repaid $40.0 million of the outstanding balance leaving $170 million of credit available under the revolver as of June 25, 2014. During fiscal 2014, we paid the required term loan installments totaling $25.0 million bringing the outstanding balance to $187.5 million. | ||||||||
The term loan and revolving credit facility bear interest at LIBOR plus an applicable margin, which is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.50%. Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.63%. One month LIBOR at June 25, 2014 was approximately 0.15%. | ||||||||
In May 2013, we issued $550.0 million of notes consisting of two tranches - $250.0 million of 2.60% notes due in May 2018 and $300.0 million of 3.88% notes due in May 2023. We received proceeds totaling approximately $549.5 million prior to debt issuance costs and utilized the proceeds to redeem the 5.75% notes due in June 2014, pay down the revolver and fund share repurchases. The new notes require semi-annual interest payments which began in the second quarter of fiscal 2014. | ||||||||
Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants. | ||||||||
Excluding capital lease obligations (see Note 9) and interest, our long-term debt maturities for the five years following June 25, 2014 and thereafter are as follows (in thousands): | ||||||||
Fiscal Year | Long-Term Debt | |||||||
2015 | $ | 25,000 | ||||||
2016 | 25,000 | |||||||
2017 | 217,500 | |||||||
2018 | 249,864 | |||||||
2019 | 0 | |||||||
Thereafter | 299,736 | |||||||
$ | 817,100 | |||||||
LEASES
LEASES | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
LEASES | ' | |||||||||||
LEASES | ||||||||||||
(a) Capital Leases | ||||||||||||
We lease certain buildings under capital leases. The asset value of $39.0 million at June 25, 2014 and June 26, 2013, and the related accumulated amortization of $20.1 million and $18.2 million at June 25, 2014 and June 26, 2013, respectively, are included in property and equipment. Amortization of assets under capital leases is included in depreciation and amortization expense. | ||||||||||||
(b) Operating Leases | ||||||||||||
We lease restaurant facilities and office space under operating leases having terms expiring at various dates through fiscal 2093. The restaurant leases have renewal clauses of 1 to 30 years at our option and, in some cases, have provisions for contingent rent based upon a percentage of sales in excess of specified levels, as defined in the leases. We include other rent-related costs in rent expense, such as common area maintenance, taxes and amortization of landlord contributions. | ||||||||||||
Rent expense consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Straight-lined minimum rent | $ | 90,574 | $ | 88,773 | $ | 88,194 | ||||||
Contingent rent | 4,737 | 3,637 | 3,752 | |||||||||
Other | 9,817 | 9,296 | 9,344 | |||||||||
Total rent expense | $ | 105,128 | $ | 101,706 | $ | 101,290 | ||||||
(c) Commitments | ||||||||||||
As of June 25, 2014, future minimum lease payments on capital and operating leases were as follows (in thousands): | ||||||||||||
Fiscal Year | Capital Leases | Operating Leases | ||||||||||
2015 | $ | 5,692 | $ | 111,314 | ||||||||
2016 | 5,806 | 100,922 | ||||||||||
2017 | 5,709 | 78,358 | ||||||||||
2018 | 5,521 | 59,714 | ||||||||||
2019 | 5,202 | 35,238 | ||||||||||
Thereafter | 36,968 | 105,646 | ||||||||||
Total minimum lease payments(a) | 64,898 | $ | 491,192 | |||||||||
Imputed interest (average rate of 7%) | (21,812 | ) | ||||||||||
Present value of minimum lease payments | 43,086 | |||||||||||
Less current installments | (2,883 | ) | ||||||||||
$ | 40,203 | |||||||||||
____________________________________________________________________ | ||||||||||||
(a) | Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. Sublease rentals are approximately $35.5 million and $48.4 million for capital and operating subleases, respectively. |
FAIR_VALUE_DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE DISCLOSURES | ' | |||||||||||||||
FAIR VALUE DISCLOSURES | ||||||||||||||||
(a) Non-Financial Assets Measured on a Non-Recurring Basis | ||||||||||||||||
In fiscal 2014, long-lived assets with a carrying value of $5.8 million, primarily related to nine underperforming restaurants, were written down to their fair value of $1.3 million resulting in an impairment charge of $4.5 million. In fiscal 2013, long-lived assets with a carrying value of $5.6 million, primarily related to three underperforming restaurants including the company-owned Chili's in Brazil, were written down to their fair value of $0.3 million resulting in an impairment charge of $5.3 million. We determined fair value based on projected discounted future operating cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. | ||||||||||||||||
In fiscal 2014, we reviewed the transferable liquor licenses during our semi-annual impairment analysis and determined there was no impairment. In fiscal 2013, one transferable liquor license with a carrying value of $0.3 million was written down to the fair value of $0.1 million resulting in an impairment charge of $0.2 million. We determined fair value based on prices in the open market for licenses in same or similar jurisdictions. | ||||||||||||||||
All impairment charges related to underperforming restaurants and liquor licenses were included in other gains and charges in the consolidated statement of comprehensive income for the periods presented. | ||||||||||||||||
During fiscal 2014, we completed the valuation of the reacquired franchise rights related to the Canada acquisition and recorded the asset at an estimated fair value of $8.9 million in intangibles on the consolidated balance sheet. In fiscal 2014, we reviewed the reacquired franchise rights during our annual impairment analysis and determined there was no impairment. | ||||||||||||||||
The following table presents fair values for those assets measured at fair value on a non-recurring basis at June 25, 2014 and June 26, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Long-lived assets held for use: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 1,342 | $ | 1,342 | ||||||||
At June 26, 2013 | $ | 0 | $ | 0 | $ | 333 | $ | 333 | ||||||||
Liquor licenses: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
At June 26, 2013 | $ | 0 | $ | 100 | $ | 0 | $ | 100 | ||||||||
Reacquired franchise rights: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 8,860 | $ | 8,860 | ||||||||
(b) Other Financial Instruments | ||||||||||||||||
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximates their carrying amounts because of the short maturity of these items. The fair value of the 2.60% notes and 3.88% notes is based on quoted market prices and are considered Level 1 fair value measurements. At June 25, 2014, the 2.60% notes had a carrying value of $249.9 million and a fair value of $250.4 million and the 3.88% notes had a carrying value of $299.7 million and a fair value of $290.2 million. At June 26, 2013, the 2.60% notes had a carrying value of $249.8 million and a fair value of $244.2 million and the 3.88% notes had a carrying value of $299.7 million and a fair value of $279.5 million. The carrying amount of debt outstanding pursuant to the term loan and revolving credit facility approximates fair value as interest rates on these instruments approximate current market rates (Level 2). |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Jun. 25, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
Our shareholders approved stock-based compensation plans including the Stock Option and Incentive Plan and the Stock Option and Incentive Plan for Non-Employee Directors and Consultants (collectively, the “Plans”). In November 2013, our shareholders approved an amendment to the Stock Option and Incentive Plan increasing the number of shares authorized for issuance by 2.0 million shares. The total number of shares authorized for issuance to employees and non-employee directors and consultants under the Plans is currently 37.3 million. The Plans provide for grants of options to purchase our common stock, restricted stock, restricted stock units, performance shares and stock appreciation rights. | |||||||||||||
(a) Stock Options | |||||||||||||
Expense related to stock options issued to eligible employees under the Plans is recognized using a graded-vesting schedule over the vesting period or to the date on which retirement eligibility is achieved, if shorter. Stock options generally vest over a period of 1 to 4 years and have contractual terms to exercise of 8 years. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination. | |||||||||||||
Transactions during fiscal 2014 were as follows (in thousands, except option prices): | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Life (Years) | |||||||||||||
Options outstanding at June 26, 2013 | 2,725 | $ | 23.13 | ||||||||||
Granted | 223 | 42.89 | |||||||||||
Exercised | (1,203 | ) | 24.35 | ||||||||||
Forfeited or canceled | (44 | ) | 25.15 | ||||||||||
Options outstanding at June 25, 2014 | 1,701 | $ | 24.8 | 4 | $ | 44,367 | |||||||
Options exercisable at June 25, 2014 | 1,113 | $ | 20.58 | 2.8 | $ | 33,728 | |||||||
At June 25, 2014, unrecognized compensation expense related to stock options totaled approximately $2.6 million and will be recognized over a weighted average period of 1.9 years. The intrinsic value of options exercised totaled approximately $25.7 million, $22.4 million and $12.6 million during fiscal 2014, 2013 and 2012, respectively. The tax benefit realized on options exercised totaled approximately $8.9 million, $8.1 million and $4.8 million during fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
(b) Restricted Share Awards | |||||||||||||
Restricted share awards consist of performance shares, restricted stock and restricted stock units. Performance shares and most restricted stock units issued to eligible employees under the Plans generally vest in full on the third anniversary of the date of grant, while restricted stock units issued to eligible employees under our career equity plan generally vest upon each employee’s retirement from the Company. Expense is recognized ratably over the vesting period, or to the date on which retirement eligibility is achieved, if shorter. Restricted stock and restricted stock units issued to non-employee directors under the Plans generally vest in full on the fourth anniversary of the date of grant or upon each director’s retirement from the Board and are expensed when granted. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination. | |||||||||||||
Transactions during fiscal 2014 were as follows (in thousands, except fair values): | |||||||||||||
Number of | Weighted | ||||||||||||
Restricted | Average | ||||||||||||
Share | Fair Value | ||||||||||||
Awards | Per Award | ||||||||||||
Restricted share awards outstanding at June 26, 2013 | 1,923 | $ | 21.15 | ||||||||||
Granted | 455 | 39.81 | |||||||||||
Vested | (703 | ) | 12.93 | ||||||||||
Forfeited | (167 | ) | 32.65 | ||||||||||
Restricted share awards outstanding at June 25, 2014 | 1,508 | $ | 29.39 | ||||||||||
At June 25, 2014, unrecognized compensation expense related to restricted share awards totaled approximately $12.8 million and will be recognized over a weighted average period of 2.4 years. The fair value of shares that vested during fiscal 2014, 2013, and 2012 totaled approximately $42.2 million, $22.0 million and $11.5 million, respectively. |
SAVINGS_PLANS
SAVINGS PLANS | 12 Months Ended |
Jun. 25, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
SAVINGS PLANS | ' |
SAVINGS PLAN | |
We sponsor a qualified defined contribution retirement plan covering all employees who have attained the age of twenty-one and have completed one year and 1,000 hours of service. Eligible employees are allowed to contribute, subject to IRS limitations on total annual contributions, up to 50% of their base compensation and 100% of their eligible bonuses, as defined in the plan, to various investment funds. We match in cash at a rate of 100% of the first 3% an employee contributes and 50% of the next 2% the employee contributes with immediate vesting. In fiscal 2014, 2013, and 2012, we contributed approximately $7.4 million, $7.2 million, and $6.7 million, respectively. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
Cash paid for interest and income taxes is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes, net of refunds | $ | 48,379 | $ | 60,291 | $ | 47,514 | ||||||
Interest, net of amounts capitalized (a) | 25,476 | 41,504 | 24,455 | |||||||||
____________________________________________________________________ | ||||||||||||
(a) Fiscal 2013 interest includes $15.3 million of interest paid upon retirement of the 5.75% notes in June 2013. | ||||||||||||
Non-cash investing and financing activities are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Retirement of fully depreciated assets | $ | 64,420 | $ | 55,427 | $ | 77,249 | ||||||
Accrued dividends | 15,625 | 13,511 | 11,948 | |||||||||
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 25, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of June 25, 2014 and June 26, 2013, we have outstanding lease guarantees or are secondarily liable for $116.5 million and $132.6 million, respectively. This amount represents the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2015 through fiscal 2024. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of June 25, 2014, as the likelihood of default by the buyers on the assignment agreements was deemed to be less than probable. | |
We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of June 25, 2014, we had $26.1 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually. | |
The aggregate litigation reserves of approximately $39.5 million established in the fourth quarter of fiscal 2014 are based on the terms set forth in the applicable agreements and our reasonable expectations regarding future events. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. | |
In August 2004, certain current and former hourly restaurant team members filed a putative class action lawsuit against us in California Superior Court alleging violations of California labor laws with respect to meal periods and rest breaks. The lawsuit sought penalties and attorney’s fees and was certified as a class action by the trial court in July 2006. In July 2008, the California Court of Appeal decertified the class action on all claims with prejudice. In October 2008, the California Supreme Court granted a writ to review the decision of the Court of Appeal and oral arguments were heard by the California Supreme Court on November 8, 2011. On April 12, 2012, the California Supreme Court issued an opinion affirming in part, reversing in part, and remanding in part for further proceedings. The California Supreme Court’s opinion resolved many of the legal standards for meal periods and rest breaks in our California restaurants. On September 26, 2013, the trial court granted plaintiffs’ motion to certify a meal period subclass and denied our motion to decertify the rest period subclass. | |
On April 8, 2014, the parties participated in mediation where preliminary settlement discussions began, but a settlement was not achieved and significant issues remained outstanding. On August 6, 2014, the parties reached a preliminary settlement agreement, which remains subject to court approval, to resolve all claims in exchange for a settlement payment not to exceed $56.5 million. We established a reserve of approximately $39.0 million related to this pending class action litigation, but the actual amount of any settlement payment could vary from our reserve and will be subject to many factors including approval by the court, claims process, and other matters typically associated with the potential settlement of complex class action litigation. | |
We are engaged in various other legal proceedings and have certain unresolved claims pending. Reserves have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, Management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
QUARTERLY_RESULTS_OF_OPERATION
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ' | |||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
The following table summarizes the unaudited consolidated quarterly results of operations for fiscal 2014 and 2013 (in thousands, except per share amounts): | ||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||
Quarters Ended | ||||||||||||||||
Sept. 25 | Dec. 25 | March 26 | June 25 | |||||||||||||
Revenues | $ | 683,924 | $ | 704,395 | $ | 758,408 | $ | 758,725 | ||||||||
Income before provision for income taxes | $ | 42,582 | $ | 57,713 | $ | 80,815 | $ | 35,178 | ||||||||
Net income | $ | 29,212 | $ | 39,744 | $ | 56,263 | $ | 28,820 | ||||||||
Basic net income per share | $ | 0.44 | $ | 0.59 | $ | 0.85 | $ | 0.44 | ||||||||
Diluted net income per share | $ | 0.42 | $ | 0.58 | $ | 0.82 | $ | 0.43 | ||||||||
Basic weighted average shares outstanding | 66,693 | 66,811 | 66,479 | 65,009 | ||||||||||||
Diluted weighted average shares outstanding | 68,802 | 68,628 | 68,342 | 66,824 | ||||||||||||
Fiscal Year 2013 | ||||||||||||||||
Quarters Ended | ||||||||||||||||
Sept. 26 | Dec. 26 | March 27 | June 26 | |||||||||||||
Revenues | $ | 683,507 | $ | 689,764 | $ | 742,759 | $ | 730,068 | ||||||||
Income before provision for income taxes | $ | 40,452 | $ | 55,226 | $ | 72,814 | $ | 61,823 | ||||||||
Net income | $ | 27,864 | $ | 37,177 | $ | 51,951 | $ | 46,367 | ||||||||
Basic net income per share | $ | 0.38 | $ | 0.51 | $ | 0.73 | $ | 0.67 | ||||||||
Diluted net income per share | $ | 0.36 | $ | 0.5 | $ | 0.71 | $ | 0.64 | ||||||||
Basic weighted average shares outstanding | 73,903 | 72,560 | 71,067 | 69,607 | ||||||||||||
Diluted weighted average shares outstanding | 76,558 | 74,720 | 73,341 | 71,999 | ||||||||||||
Net income for fiscal 2014 included a $39.5 million charge in the fourth quarter to establish reserves for the potential settlement of various litigation matters. Long-lived asset impairments of $1.3 million and $3.2 million were recorded in the second and fourth quarters, respectively. Additionally, net income included lease termination charges of $0.2 million, $0.2 million, $0.9 million and $0.6 million in the four quarters of fiscal 2014 related to restaurants closed in the current year and adjustments for prior year closures. Severance charges of $0.2 million, $0.2 million, $0.7 million and $1.0 million were incurred in the four quarters of fiscal 2014. | ||||||||||||||||
Net income for fiscal year 2013 included a $15.8 million loss on extinguishment of debt in the fourth quarter. Long-lived asset impairments of $0.7 million and $4.6 million were recorded in the second and fourth quarters, respectively. Severance charges of $1.3 million and $1.0 million were incurred during the third and fourth quarters, respectively. Net income also included lease termination charges related to previously closed restaurants of $0.4 million, $1.1 million and $0.6 million in the first, second and fourth quarters, respectively. These charges were partially offset by an $8.3 million gain on the sale of our remaining interest in Macaroni Grill in the fourth quarter and net gains of $2.3 million and $0.4 million related to land sales in the second and fourth quarters, respectively. |
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Jun. 25, 2014 | ||
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | ' | |
Nature Of Operations | ' | |
(a) Nature of Operations | ||
We are principally engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (“Chili’s”) and Maggiano’s Little Italy (“Maggiano’s”) restaurant brands. At June 25, 2014, we owned, operated, or franchised 1,615 restaurants in the United States and 30 countries and two territories outside of the United States. | ||
Basis Of Presentation | ' | |
(b) Basis of Presentation | ||
Our consolidated financial statements include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||
We have a 52/53 week fiscal year ending on the last Wednesday in June. Fiscal years 2014, 2013, and 2012 which ended on June 25, 2014, June 26, 2013, and June 27, 2012, respectively, each contained 52 weeks. | ||
Beginning in fiscal 2014, other comprehensive income is presented on the newly titled consolidated statements of comprehensive income. On June 1, 2013, we completed the acquisition of 11 Chili's restaurants in Alberta, Canada from an existing franchisee and have included the results of operations of the Canadian restaurants in our consolidated financial statements from the date of acquisition. The foreign currency translation adjustment included in comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants from Canadian dollars, the functional currency, to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the business. The accumulated other comprehensive loss is presented on the consolidated balance sheets. Additionally, certain prior year balances in the consolidated balance sheets have been reclassified to conform with fiscal 2014 presentation. These reclassifications have no effect on our net income as previously reported and an immaterial impact on our prior year consolidated balance sheets. | ||
Revenues are presented in two separate captions on the consolidated statements of comprehensive income to provide more clarity around company-owned restaurant revenue and operating expense trends. Company sales includes revenues generated by the operation of company-owned restaurants including gift card redemptions. Franchise and other revenues includes royalties, development fees, franchise fees, Maggiano's banquet service charge income, certain gift card activity (breakage and discounts) and Ziosk gaming revenue. | ||
We report certain labor and related expenses in a separate caption on the consolidated statements of comprehensive income titled restaurant labor. Restaurant labor includes all compensation-related expenses, including benefits and incentive compensation, for restaurant team members at the general manager level and below. Labor-related expenses attributable to multi-restaurant (or above-restaurant) supervision is included in restaurant expenses. | ||
Use Of Estimates | ' | |
(c) Use of Estimates | ||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. Actual results could differ from those estimates. | ||
Revenue Recognition | ' | |
(d) Revenue Recognition | ||
We record revenue from the sale of food, beverages and alcohol as products are sold. Initial fees received from a franchisee to establish a new franchise are recognized as income when we have performed our obligations required to assist the franchisee in opening a new franchise restaurant, which is generally upon the opening of such restaurant. Fees received for development arrangements are recognized as income upon payment of the fees. Continuing royalties, which are a percentage of net sales of franchised restaurants, are accrued as income when earned. | ||
Proceeds from the sale of gift cards are recorded as deferred revenue and recognized as revenue when the gift card is redeemed by the holder. Breakage income represents the value associated with the portion of gift cards sold that will most likely never be redeemed. Based on our historical gift card redemption patterns and considering our gift cards have no expiration dates or dormancy fees, we can reasonably estimate the amount of gift card balances for which redemption is remote and record breakage income based on this estimate. We recognize breakage income within franchise and other revenues in the consolidated statements of comprehensive income. We update our estimate of our breakage rate periodically and, if necessary, adjust the deferred revenue balance accordingly. | ||
Fair Value Measurements | ' | |
(e) Fair Value Measurements | ||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: | ||
• | Level 1—inputs are quoted prices in active markets for identical assets or liabilities. | |
• | Level 2—inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. | |
• | Level 3—inputs are unobservable and reflect our own assumptions. | |
Cash And Cash Equivalents | ' | |
(f) Cash and Cash Equivalents | ||
Our policy is to invest cash in excess of operating requirements in income-producing investments. Income-producing investments with original maturities of three months or less are reflected as cash equivalents. | ||
Accounts Receivable | ' | |
(g) Accounts Receivable | ||
Accounts receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. Provisions for doubtful accounts are recorded based on management’s judgment regarding our ability to collect as well as the age of the receivables. Accounts receivable are written off when they are deemed uncollectible. | ||
Inventories | ' | |
(h) Inventories | ||
Inventories consist of food, beverages and supplies and are valued at the lower of cost or market. During fiscal 2013, we began implementing a new restaurant information system for all company-owned restaurants and changed from the weighted average cost method to the first-in, first-out or “FIFO” method. The system implementation process was completed in fiscal 2013 for all Chili's restaurants and in fiscal 2014 for all Maggiano's restaurants. As of June 25, 2014, all inventories are valued using the FIFO method. As of June 26, 2013, inventories located at all Chili’s as well as the converted Maggiano’s restaurants are valued using the FIFO method and inventories at non-converted Maggiano's restaurants are stated at weighted average cost. The change in inventory valuation methods did not have a material impact on our consolidated financial statements. | ||
Property And Equipment | ' | |
(i) Property and Equipment | ||
Property and equipment is stated at cost. Buildings and leasehold improvements are depreciated using the straight-line method over the lesser of the life of the lease, including renewal options, or the estimated useful lives of the assets, which range from 5 to 20 years. Furniture and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. Routine repair and maintenance costs are expensed when incurred. Major replacements and improvements are capitalized. | ||
We review the carrying amount of property and equipment semi-annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on projected discounted future operating cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. | ||
Operating Leases | ' | |
(j) Operating Leases | ||
Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty such that the renewal appears reasonably assured. The straight-line rent calculation and rent expense includes the rent holiday period, which is the period of time between taking control of a leased site and the rent commencement date. Contingent rents are generally amounts due as a result of sales in excess of amounts stipulated in certain restaurant leases and are included in rent expense as they are incurred. Landlord contributions are recorded when received as a deferred rent liability and amortized as a reduction of rent expense on a straight-line basis over the lesser of the lease term, including renewal options, or 20 years. | ||
Advertising | ' | |
(k) Advertising | ||
Advertising production costs are expensed in the period when the advertising first takes place. Other advertising costs are expensed as incurred. Advertising costs, net of advertising contributions from franchisees, were $92.2 million, $82.8 million and $80.4 million million in fiscal 2014, 2013, and 2012, respectively, and are included in restaurant expenses in the consolidated statements of comprehensive income. | ||
Goodwill and Other Intangibles | ' | |
(l) Goodwill and Other Intangibles | ||
Goodwill is not subject to amortization, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill has been assigned to reporting units for purposes of impairment testing. Our two restaurant brands, Chili’s and Maggiano’s, are both reporting units and operating segments. We have established that the appropriate level to evaluate goodwill is at the operating segment level. The menu items, services offered and food preparation are virtually identical at each restaurant within the reporting unit and our targeted customer is consistent across each brand. We maintain a centralized purchasing department which manages all purchasing and distribution for our restaurants. In addition, contracts for our food supplies are negotiated at a consolidated level in order to secure the best prices and maintain similar quality across all of our brands. Local laws, regulations and other issues may result in slightly different legal and regulatory environments; however, the overall regulatory climate within and across our operating segments is quite similar. As such, we believe that aggregating components is appropriate for the evaluation of goodwill. | ||
Goodwill impairment tests consist of a comparison of each reporting unit’s fair value with its carrying value. We determine fair value based on a combination of market based values and projected discounted future operating cash flows of the restaurant brands using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We determined that there was no goodwill impairment during our annual test as the fair value of our reporting units was substantially in excess of the carrying value. No indicators of impairment were identified through the end of fiscal year 2014. See Note 5 for additional disclosures related to goodwill. | ||
We occasionally acquire restaurants from our franchisees. Goodwill from these acquisitions represents the excess of the cost of the business acquired over the net amounts assigned to assets acquired, including identifiable intangible assets, primarily reacquired franchise rights. In connection with the sale of restaurants, we will allocate goodwill from the reporting unit, or restaurant brand, to the disposal group in the determination of the gain or loss on the disposition. The allocation is based on the relative fair values of the disposal group and the portion of the reporting unit that was retained. If we dispose of a restaurant brand and all related restaurants, the entire goodwill balance associated with the reporting unit or brand will be included in the disposal group for purposes of determining the gain or loss on the disposition. | ||
Liquor Licenses | ' | |
(m) Liquor Licenses | ||
The costs of obtaining non-transferable liquor licenses from local government agencies are expensed over the specified term of the license. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in intangibles. | ||
Liquor licenses are reviewed for impairment semi-annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on prices in the open market for licenses in same or similar jurisdictions. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. | ||
Sales Taxes | ' | |
(n) Sales Taxes | ||
Sales taxes collected from guests are excluded from revenues. The obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. | ||
Self-Insurance Program | ' | |
(o) Self-Insurance Program | ||
We are self-insured for certain losses related to health, general liability and workers’ compensation. We maintain stop loss coverage with third party insurers to limit our total exposure. The self-insurance liability represents an estimate of the ultimate cost of claims incurred and unpaid as of the balance sheet date. The estimated liability is not discounted and is established based upon analysis of historical data and actuarial estimates, and is reviewed on a quarterly basis to ensure that the liability is appropriate. If actual trends, including the severity or frequency of claims, differ from our estimates, our financial results could be impacted. Accrued and other liabilities include the estimated incurred but unreported costs to settle unpaid claims and estimated future claims. | ||
Income Taxes | ' | |
(p) Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
Stock-Based Compensation | ' | |
(q) Stock-Based Compensation | ||
We measure and recognize compensation cost at fair value for all share-based payments. We record compensation expense using a graded-vesting schedule or on a straight-line basis, as applicable, over the vesting period, or to the date on which retirement eligibility is achieved, if shorter (non-substantive vesting period approach). | ||
Certain employees are eligible to receive stock options, performance shares, restricted stock and restricted stock units, while non-employee members of the Board of Directors are eligible to receive stock options, restricted stock and restricted stock units. Performance shares represent a right to receive shares of common stock upon satisfaction of company performance goals at the end of a three-year cycle. Performance shares are paid out in common stock and are fully vested upon issuance. The fair value of performance shares is determined on the date of grant based on a Monte Carlo simulation model. The fair value of restricted stock and restricted stock units are based on our closing stock price on the date of grant. | ||
Preferred Stock | ' | |
(r) Preferred Stock | ||
Our Board of Directors is authorized to provide for the issuance of 1.0 million preferred shares with a par value of $1.00 per share, in one or more series, and to fix the voting rights, liquidation preferences, dividend rates, conversion rights, redemption rights, and terms, including sinking fund provisions, and certain other rights and preferences. As of June 25, 2014, no preferred shares were issued. | ||
Shareholders' Equity | ' | |
(s) Shareholders’ Equity | ||
In August 2013, our Board of Directors authorized a $200.0 million increase to our existing share repurchase program resulting in total authorizations of $3,585.0 million. We repurchased approximately 5.1 million shares of our common stock for $239.6 million during fiscal 2014. As of June 25, 2014, approximately $307 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs. Repurchased common stock is reflected as a reduction of shareholders’ equity. During fiscal 2014, approximately 1.2 million stock options were exercised resulting in cash proceeds of $29.3 million. | ||
We paid dividends of $63.4 million to common stock shareholders during fiscal 2014, compared to $56.3 million in the prior year. Additionally, we declared a quarterly dividend of $15.6 million, or $0.24 per share, in May 2014 which was paid on June 26, 2014. | ||
Comprehensive Income | ' | |
(t) Comprehensive Income | ||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Fiscal 2014 comprehensive income consists of net income and foreign currency translation adjustments. The foreign currency translation adjustment represents the unrealized impact of translating the financial statements of the Canadian restaurants from Canadian dollars, the functional currency, to U.S. dollars. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. Fiscal 2013 and 2012 comprehensive income consists of net income. | ||
Net Income Per Share | ' | |
(u) Net Income Per Share | ||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards, determined using the treasury stock method. We had approximately 113,000 stock options and restricted share awards outstanding at June 25, 2014, 193,000 stock options and restricted share awards outstanding at June 26, 2013, and 287,000 stock options and restricted share awards outstanding at June 27, 2012 that were not included in the dilutive earnings per share calculation because the effect would have been antidilutive. | ||
Segment Reporting | ' | |
(v) Segment Reporting | ||
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Two or more operating segments may be aggregated into a single operating segment if they have similar economic characteristics and are similar in the following areas: | ||
• | The nature of products and services | |
• | Nature of production processes | |
• | Type or class of customer | |
• | Methods used to distribute products or provide services | |
• | The nature of the regulatory environment, if applicable | |
Our two brands have similar types of products, contracts, customers and employees and all operate as full-service restaurants offering lunch and dinner in the casual-dining segment of the industry. In addition, we have similar long-term average margins across our brands. Therefore, we believe we meet the criteria for aggregating operating segments into a single reporting segment. |
NATURE_OF_OPERATIONS_AND_SUMMA2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Jun. 25, 2014 | |||||||||
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | ' | ||||||||
Fair Value Assumptions Using The Black-Scholes Option-Pricing Model | ' | ||||||||
The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||
2014 | 2013 | 2012 | |||||||
Expected volatility | 47.7 | % | 53.4 | % | 56.7 | % | |||
Risk-free interest rate | 1.6 | % | 0.7 | % | 0.9 | % | |||
Expected lives | 5 years | 5 years | 5 years | ||||||
Dividend yield | 2.2 | % | 2.4 | % | 2.6 | % | |||
Expected volatility and the expected life of stock options are based on historical experience. The risk-free rate is based on the yield of a Treasury Note with a term equal to the expected life of the stock options. The dividend yield is based on the most recent quarterly dividend per share declared and the closing stock price on the declaration date. | |||||||||
Schedule of Weighted Average Number of Shares | ' | ||||||||
Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): | |||||||||
2014 | 2013 | 2012 | |||||||
Basic weighted average shares outstanding | 66,251 | 71,788 | 78,559 | ||||||
Dilutive stock options | 853 | 955 | 738 | ||||||
Dilutive restricted shares | 1,048 | 1,415 | 1,367 | ||||||
1,901 | 2,370 | 2,105 | |||||||
Diluted weighted average shares outstanding | 68,152 | 74,158 | 80,664 | ||||||
OTHER_GAINS_AND_CHARGES_Tables
OTHER GAINS AND CHARGES (Tables) | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Disclosure Other Gains And Charges [Abstract] | ' | |||||||||||
Schedule Of Other Gains And Charges | ' | |||||||||||
Other gains and charges consist of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Litigation reserves | $ | 39,500 | $ | 0 | $ | 0 | ||||||
Restaurant impairment charges | 4,502 | 5,276 | 3,139 | |||||||||
Restaurant closure charges | 3,413 | 3,637 | 4,655 | |||||||||
Severance and other benefits | 2,140 | 2,235 | 0 | |||||||||
Gain on the sale of assets, net | (608 | ) | (11,228 | ) | (3,306 | ) | ||||||
Loss on extinguishment of debt | 0 | 15,768 | 0 | |||||||||
Impairment of liquor licenses | 0 | 170 | 2,641 | |||||||||
Other | 277 | 1,442 | 1,845 | |||||||||
$ | 49,224 | $ | 17,300 | $ | 8,974 | |||||||
GOODWILL_AND_INTANGIBLES_Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 25, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Changes In Carrying Amount Of Goodwill | ' | |||||||||||||||||||
The changes in the carrying amount of goodwill for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Balance at beginning of year: | ||||||||||||||||||||
Goodwill | $ | 204,937 | $ | 188,438 | ||||||||||||||||
Accumulated impairment losses(a) | (62,834 | ) | (62,834 | ) | ||||||||||||||||
142,103 | 125,604 | |||||||||||||||||||
Changes in goodwill: | ||||||||||||||||||||
Additions(b) | 0 | 16,499 | ||||||||||||||||||
Adjustments(c) | (8,387 | ) | 0 | |||||||||||||||||
Foreign currency translation adjustment | (282 | ) | 0 | |||||||||||||||||
Balance at end of year: | ||||||||||||||||||||
Goodwill | 196,268 | 204,937 | ||||||||||||||||||
Accumulated impairment losses | (62,834 | ) | (62,834 | ) | ||||||||||||||||
$ | 133,434 | $ | 142,103 | |||||||||||||||||
____________________________________________________________________ | ||||||||||||||||||||
(a) | The impairment losses recorded in prior years are related to restaurant brands that we no longer own. | |||||||||||||||||||
(b) | Additions for the prior year reflect the preliminary goodwill acquired as a result of the Canada acquisition. | |||||||||||||||||||
(c) | The valuation of the reacquired franchise rights associated with the Canada acquisition was finalized during fiscal 2014 and a fair value of approximately $8.9 million was assigned to the intangible asset. There was no value assigned to these rights in the preliminary purchase price allocation presented at June 26, 2013. Intangibles was increased by approximately $8.9 million with a corresponding decrease to goodwill. | |||||||||||||||||||
Schedule of Intangible Assets | ' | |||||||||||||||||||
Intangible assets, net for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||
Reacquired franchise rights | $ | 9,107 | $ | (1,121 | ) | $ | 7,986 | $ | 560 | $ | (241 | ) | $ | 319 | ||||||
Other | 872 | (292 | ) | 580 | 364 | (210 | ) | 154 | ||||||||||||
$ | 9,979 | $ | (1,413 | ) | $ | 8,566 | $ | 924 | $ | (451 | ) | $ | 473 | |||||||
Indefinite-lived intangible assets | ||||||||||||||||||||
Liquor licenses | $ | 10,275 | $ | 10,223 | ||||||||||||||||
ACCRUED_AND_OTHER_LIABILITIES_
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
ACCRUED AND OTHER LIABILITIES [Abstract] | ' | |||||||
Accrued Liabilities | ' | |||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Gift cards | $ | 104,378 | $ | 91,893 | ||||
Payroll | 77,585 | 77,238 | ||||||
Litigation reserves | 39,500 | 0 | ||||||
Sales tax | 19,622 | 18,613 | ||||||
Insurance | 20,652 | 17,743 | ||||||
Property tax | 14,209 | 14,119 | ||||||
Dividends | 15,625 | 13,511 | ||||||
Other | 36,446 | 36,348 | ||||||
$ | 328,017 | $ | 269,465 | |||||
Other Liabilities | ' | |||||||
Other liabilities consist of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Straight-line rent | $ | 57,462 | $ | 57,129 | ||||
Insurance | 36,352 | 38,602 | ||||||
Landlord contributions | 23,404 | 24,029 | ||||||
Unrecognized tax benefits | 5,247 | 5,055 | ||||||
Other | 6,633 | 7,078 | ||||||
$ | 129,098 | $ | 131,893 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Provision For Income Taxes From Continuing Operations | ' | |||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current income tax expense: | ||||||||||||
Federal | $ | 66,170 | $ | 46,852 | $ | 27,707 | ||||||
State | 15,219 | 11,800 | 7,056 | |||||||||
Foreign | 3,550 | 2,879 | 5,098 | |||||||||
Total current income tax expense | 84,939 | 61,531 | 39,861 | |||||||||
Deferred income tax (benefit) expense: | ||||||||||||
Federal | (18,715 | ) | 7,344 | 16,520 | ||||||||
State | (4,087 | ) | (1,919 | ) | 1,196 | |||||||
Foreign | 112 | 0 | 0 | |||||||||
Total deferred income tax (benefit) expense | (22,690 | ) | 5,425 | 17,716 | ||||||||
$ | 62,249 | $ | 66,956 | $ | 57,577 | |||||||
Reconciliation Between Reported Provision for Income Taxes And Amount Computed By Statutory Federal Income Tax Rate | ' | |||||||||||
A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory Federal income tax rate of 35% to income before provision for income taxes is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax expense at statutory rate | $ | 75,701 | $ | 80,610 | $ | 73,083 | ||||||
FICA tax credit | (18,116 | ) | (16,450 | ) | (16,609 | ) | ||||||
State income taxes, net of Federal benefit | 7,636 | 6,368 | 4,750 | |||||||||
Other | (2,972 | ) | (3,572 | ) | (3,647 | ) | ||||||
$ | 62,249 | $ | 66,956 | $ | 57,577 | |||||||
Deferred Income Tax Assets And Liabilities | ' | |||||||||||
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Leasing transactions | $ | 40,085 | $ | 40,662 | ||||||||
Stock-based compensation | 13,698 | 13,250 | ||||||||||
Restructure charges and impairments | 16,726 | 2,885 | ||||||||||
Insurance reserves | 18,550 | 18,595 | ||||||||||
Employee benefit plans | 404 | 544 | ||||||||||
Gift cards | 15,497 | 13,171 | ||||||||||
Other, net | 8,975 | 10,903 | ||||||||||
Total deferred income tax assets | 113,935 | 100,010 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Prepaid expenses | 16,462 | 15,776 | ||||||||||
Goodwill and other amortization | 26,551 | 25,333 | ||||||||||
Depreciation and capitalized interest on property and equipment | 20,982 | 32,160 | ||||||||||
Other, net | 3,680 | 3,522 | ||||||||||
Total deferred income tax liabilities | 67,675 | 76,791 | ||||||||||
Net deferred income tax asset | $ | 46,260 | $ | 23,219 | ||||||||
Reconciliation Of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of unrecognized tax benefits for the fiscal years ended June 25, 2014 and June 26, 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 6,388 | $ | 7,336 | ||||||||
Additions based on tax positions related to the current year | 1,582 | 754 | ||||||||||
Additions based on tax positions related to prior years | 347 | 7 | ||||||||||
Settlements with tax authorities | (339 | ) | (930 | ) | ||||||||
Expiration of statute of limitations | (603 | ) | (779 | ) | ||||||||
Balance at end of year | $ | 7,375 | $ | 6,388 | ||||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
3.88% notes | $ | 299,736 | $ | 299,707 | ||||
2.60% notes | 249,864 | 249,829 | ||||||
Term loan | 187,500 | 212,500 | ||||||
Revolving credit facility | 80,000 | 0 | ||||||
Capital lease obligations (see Note 9) | 43,086 | 45,681 | ||||||
860,186 | 807,717 | |||||||
Less current installments | (27,884 | ) | (27,596 | ) | ||||
$ | 832,302 | $ | 780,121 | |||||
Long-Term Debt Maturities Excluding Capital Lease Obligations | ' | |||||||
Excluding capital lease obligations (see Note 9) and interest, our long-term debt maturities for the five years following June 25, 2014 and thereafter are as follows (in thousands): | ||||||||
Fiscal Year | Long-Term Debt | |||||||
2015 | $ | 25,000 | ||||||
2016 | 25,000 | |||||||
2017 | 217,500 | |||||||
2018 | 249,864 | |||||||
2019 | 0 | |||||||
Thereafter | 299,736 | |||||||
$ | 817,100 | |||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Schedule of Rent Expense | ' | |||||||||||
Rent expense consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Straight-lined minimum rent | $ | 90,574 | $ | 88,773 | $ | 88,194 | ||||||
Contingent rent | 4,737 | 3,637 | 3,752 | |||||||||
Other | 9,817 | 9,296 | 9,344 | |||||||||
Total rent expense | $ | 105,128 | $ | 101,706 | $ | 101,290 | ||||||
Future Minimum Lease Payments | ' | |||||||||||
As of June 25, 2014, future minimum lease payments on capital and operating leases were as follows (in thousands): | ||||||||||||
Fiscal Year | Capital Leases | Operating Leases | ||||||||||
2015 | $ | 5,692 | $ | 111,314 | ||||||||
2016 | 5,806 | 100,922 | ||||||||||
2017 | 5,709 | 78,358 | ||||||||||
2018 | 5,521 | 59,714 | ||||||||||
2019 | 5,202 | 35,238 | ||||||||||
Thereafter | 36,968 | 105,646 | ||||||||||
Total minimum lease payments(a) | 64,898 | $ | 491,192 | |||||||||
Imputed interest (average rate of 7%) | (21,812 | ) | ||||||||||
Present value of minimum lease payments | 43,086 | |||||||||||
Less current installments | (2,883 | ) | ||||||||||
$ | 40,203 | |||||||||||
____________________________________________________________________ | ||||||||||||
(a) | Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. Sublease rentals are approximately $35.5 million and $48.4 million for capital and operating subleases, respectively. |
FAIR_VALUE_DISCLOSURES_Tables
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets Measured At Fair Value On Non-Recurring Basis | ' | |||||||||||||||
The following table presents fair values for those assets measured at fair value on a non-recurring basis at June 25, 2014 and June 26, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Long-lived assets held for use: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 1,342 | $ | 1,342 | ||||||||
At June 26, 2013 | $ | 0 | $ | 0 | $ | 333 | $ | 333 | ||||||||
Liquor licenses: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
At June 26, 2013 | $ | 0 | $ | 100 | $ | 0 | $ | 100 | ||||||||
Reacquired franchise rights: | ||||||||||||||||
At June 25, 2014 | $ | 0 | $ | 0 | $ | 8,860 | $ | 8,860 | ||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Jun. 25, 2014 | |||||||||||||
Stock Options | ' | ||||||||||||
Transactions During Fiscal 2014 | ' | ||||||||||||
Transactions during fiscal 2014 were as follows (in thousands, except option prices): | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Life (Years) | |||||||||||||
Options outstanding at June 26, 2013 | 2,725 | $ | 23.13 | ||||||||||
Granted | 223 | 42.89 | |||||||||||
Exercised | (1,203 | ) | 24.35 | ||||||||||
Forfeited or canceled | (44 | ) | 25.15 | ||||||||||
Options outstanding at June 25, 2014 | 1,701 | $ | 24.8 | 4 | $ | 44,367 | |||||||
Options exercisable at June 25, 2014 | 1,113 | $ | 20.58 | 2.8 | $ | 33,728 | |||||||
Restricted Share Award [Member] | ' | ||||||||||||
Transactions During Fiscal 2014 | ' | ||||||||||||
Transactions during fiscal 2014 were as follows (in thousands, except fair values): | |||||||||||||
Number of | Weighted | ||||||||||||
Restricted | Average | ||||||||||||
Share | Fair Value | ||||||||||||
Awards | Per Award | ||||||||||||
Restricted share awards outstanding at June 26, 2013 | 1,923 | $ | 21.15 | ||||||||||
Granted | 455 | 39.81 | |||||||||||
Vested | (703 | ) | 12.93 | ||||||||||
Forfeited | (167 | ) | 32.65 | ||||||||||
Restricted share awards outstanding at June 25, 2014 | 1,508 | $ | 29.39 | ||||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
Cash Paid For Interest And Income Taxes | ' | |||||||||||
Cash paid for interest and income taxes is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes, net of refunds | $ | 48,379 | $ | 60,291 | $ | 47,514 | ||||||
Interest, net of amounts capitalized (a) | 25,476 | 41,504 | 24,455 | |||||||||
____________________________________________________________________ | ||||||||||||
(a) Fiscal 2013 interest includes $15.3 million of interest paid upon retirement of the 5.75% notes in June 2013. | ||||||||||||
Non-Cash Investing And Financing Activities | ' | |||||||||||
Non-cash investing and financing activities are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Retirement of fully depreciated assets | $ | 64,420 | $ | 55,427 | $ | 77,249 | ||||||
Accrued dividends | 15,625 | 13,511 | 11,948 | |||||||||
QUARTERLY_RESULTS_OF_OPERATION1
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Unaudited Consolidated Quarterly Results Of Operations | ' | |||||||||||||||
The following table summarizes the unaudited consolidated quarterly results of operations for fiscal 2014 and 2013 (in thousands, except per share amounts): | ||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||
Quarters Ended | ||||||||||||||||
Sept. 25 | Dec. 25 | March 26 | June 25 | |||||||||||||
Revenues | $ | 683,924 | $ | 704,395 | $ | 758,408 | $ | 758,725 | ||||||||
Income before provision for income taxes | $ | 42,582 | $ | 57,713 | $ | 80,815 | $ | 35,178 | ||||||||
Net income | $ | 29,212 | $ | 39,744 | $ | 56,263 | $ | 28,820 | ||||||||
Basic net income per share | $ | 0.44 | $ | 0.59 | $ | 0.85 | $ | 0.44 | ||||||||
Diluted net income per share | $ | 0.42 | $ | 0.58 | $ | 0.82 | $ | 0.43 | ||||||||
Basic weighted average shares outstanding | 66,693 | 66,811 | 66,479 | 65,009 | ||||||||||||
Diluted weighted average shares outstanding | 68,802 | 68,628 | 68,342 | 66,824 | ||||||||||||
Fiscal Year 2013 | ||||||||||||||||
Quarters Ended | ||||||||||||||||
Sept. 26 | Dec. 26 | March 27 | June 26 | |||||||||||||
Revenues | $ | 683,507 | $ | 689,764 | $ | 742,759 | $ | 730,068 | ||||||||
Income before provision for income taxes | $ | 40,452 | $ | 55,226 | $ | 72,814 | $ | 61,823 | ||||||||
Net income | $ | 27,864 | $ | 37,177 | $ | 51,951 | $ | 46,367 | ||||||||
Basic net income per share | $ | 0.38 | $ | 0.51 | $ | 0.73 | $ | 0.67 | ||||||||
Diluted net income per share | $ | 0.36 | $ | 0.5 | $ | 0.71 | $ | 0.64 | ||||||||
Basic weighted average shares outstanding | 73,903 | 72,560 | 71,067 | 69,607 | ||||||||||||
Diluted weighted average shares outstanding | 76,558 | 74,720 | 73,341 | 71,999 | ||||||||||||
Recovered_Sheet1
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 25, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | |
restaurant | ||||
Location | ||||
Country | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Number of entity restaurants | ' | 1,615 | ' | ' |
Number of countries in which entity operates | ' | 30 | ' | ' |
Number of territories in which entity operates | ' | 2 | ' | ' |
Deferred rent liability and amortized as a reduction of rent expense over the lesser of the lease term (in years) | ' | '20 years | ' | ' |
Advertising expense, net of franchisee contribution | ' | $92,200,000 | $82,800,000 | $80,400,000 |
Stock-based compensation expense from continuing operations | ' | 16,900,000 | 16,600,000 | 13,500,000 |
Tax benefit related to stock-based compensation expense | ' | 6,900,000 | 6,600,000 | 5,100,000 |
Weighted average fair values of option grants | ' | $14.75 | $12.94 | $9.35 |
Number of preferred stock the Board of Directors is authorized to issue | ' | 1,000,000 | ' | ' |
Preferred stock, par value | ' | $1 | ' | ' |
Preferred stock, shares issued | ' | 0 | ' | ' |
Increase in share repurchase program | 200,000,000 | ' | ' | ' |
Stock repurchase program, total authorization of shares to be repurchased | ' | 3,585,000,000 | ' | ' |
Stock repurchase during period, shares | ' | 5,100,000 | ' | ' |
Stock repurchased during period, value | ' | 239,600,000 | ' | ' |
Remaining authorized share purchases, amount | ' | 307,000,000 | ' | ' |
Proceeds from issuances of treasury stock | ' | 29,295,000 | 41,190,000 | 43,416,000 |
Payments of dividends | ' | 63,395,000 | 56,343,000 | 50,081,000 |
Dividends declared but not paid | ' | $15,625,000 | $13,511,000 | $11,948,000 |
Dividends per share declared but not paid | ' | $0.24 | ' | ' |
Stock options and restricted share awards outstanding excluded from dilutive earnings per share | ' | 113,000 | 193,000 | 287,000 |
Minimum [Member] | Buildings And Leasehold Improvements [Member] | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '5 years | ' | ' |
Minimum [Member] | Furniture And Equipment [Member] | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '3 years | ' | ' |
Maximum [Member] | Buildings And Leasehold Improvements [Member] | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '20 years | ' | ' |
Maximum [Member] | Furniture And Equipment [Member] | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '10 years | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Exercised, Number of Options | ' | -1,203,000 | ' | ' |
Recovered_Sheet2
Nature Of Operations And Summary Of Significant Accounting Policies (Fair Value Assumptions Using Black-Scholes Option-Pricing Model) (Detail) | 12 Months Ended | ||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | |
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | ' | ' | ' |
Expected volatility | 47.70% | 53.40% | 56.70% |
Risk-free interest rate | 1.60% | 0.70% | 0.90% |
Expected lives | '5 years | '5 years | '5 years |
Dividend yield | 2.20% | 2.40% | 2.60% |
NATURE_OF_OPERATIONS_AND_SUMMA3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Weighted Average Number of Shares (Details) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 26, 2013 | Mar. 27, 2013 | Dec. 26, 2012 | Sep. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | 65,009 | 66,479 | 66,811 | 66,693 | 69,607 | 71,067 | 72,560 | 73,903 | 66,251 | 71,788 | 78,559 |
Weighted Average Number Diluted Shares Outstanding Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 1,901 | 2,370 | 2,105 |
Diluted weighted average shares outstanding (in shares) | 66,824 | 68,342 | 68,628 | 68,802 | 71,999 | 73,341 | 74,720 | 76,558 | 68,152 | 74,158 | 80,664 |
Restricted Share Award [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 1,048 | 1,415 | 1,367 |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 853 | 955 | 738 |
Acquisition_Details
Acquisition (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 25, 2013 | Jun. 01, 2013 |
Chili's Restaurants [Member] | ||
restaurant | ||
Business Acquisition [Line Items] | ' | ' |
Number of restaurants acquired | ' | 11 |
Acquisition of restaurants price | ' | $24.60 |
Acquisition related expenses incurred | ' | 0.4 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | $8.90 | ' |
Recovered_Sheet3
Investments And Other Dispositions (Narrative) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 10 Months Ended | 1 Months Ended | |||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 25, 2014 | Jun. 27, 2012 | Apr. 30, 2012 | Apr. 30, 2013 | |
Joint Venture Investment, Mexico [Member] | Joint Venture Investment, Brazil [Member] | Joint Venture Investment, Brazil [Member] | Sale Of Macaroni Grill [Member] | ||||
Store | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants to develop | ' | ' | ' | 50 | ' | ' | ' |
Capital contribution to the joint venture | $0 | $0 | $3,170,000 | ' | $1,500,000 | $1,600,000 | ' |
Number of restaurants operating in joint venture | ' | ' | ' | 36 | ' | ' | ' |
Proceeds from Sale | ' | ' | ' | ' | ' | ' | $8,300,000 |
Other_Gains_And_Charges_Schedu
Other Gains And Charges (Schedule Of Other Gains And Charges) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 26, 2013 | Mar. 27, 2013 | Dec. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Disclosure Other Gains And Charges [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation reserves | $39,500 | ' | ' | ' | ' | ' | ' | $39,500 | $0 | $0 |
Restaurant impairment charges | 3,200 | ' | 1,300 | ' | 4,600 | ' | 700 | 4,502 | 5,276 | 3,139 |
Restaurant closure charges | ' | ' | ' | ' | ' | ' | ' | 3,413 | 3,637 | 4,655 |
Severance and other benefits | 1,000 | 700 | 200 | 200 | 1,000 | 1,300 | ' | 2,140 | 2,235 | 0 |
Gain on sale of assets, net | ' | ' | ' | ' | ' | ' | ' | -608 | -11,228 | -3,306 |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | 0 | 15,768 | 0 |
Impairment of liquor licenses | ' | ' | ' | ' | ' | ' | ' | 0 | 170 | 2,641 |
Other | ' | ' | ' | ' | ' | ' | ' | 277 | 1,442 | 1,845 |
Other gains and charges | ' | ' | ' | ' | ' | ' | ' | $49,224 | $17,300 | $8,974 |
Other_Gains_And_Charges_Narrat
Other Gains And Charges (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 26, 2013 | Mar. 27, 2013 | Dec. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 26, 2013 | Apr. 30, 2013 | |
5.75% Notes [Member] | Sale Of Macaroni Grill [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation reserves | $39,500,000 | ' | ' | ' | ' | ' | ' | $39,500,000 | $0 | $0 | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | 0 | -15,768,000 | 0 | 15,800,000 | ' |
Gain on sale of assets, net | ' | ' | ' | ' | ' | ' | ' | -608,000 | -11,228,000 | -3,306,000 | ' | ' |
Proceeds from Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,300,000 |
Gain on sale of land | ' | ' | ' | ' | 400,000 | ' | 2,300,000 | ' | 2,900,000 | ' | ' | ' |
Restaurant impairment charges | 3,200,000 | ' | 1,300,000 | ' | 4,600,000 | ' | 700,000 | 4,502,000 | 5,276,000 | 3,139,000 | ' | ' |
Restaurant closure charges | ' | ' | ' | ' | ' | ' | ' | 3,413,000 | 3,637,000 | 4,655,000 | ' | ' |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' |
Impairment of real estate | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' |
Impairment of liquor licenses | ' | ' | ' | ' | ' | ' | ' | 0 | 170,000 | 2,641,000 | ' | ' |
Long-lived asset impairments | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' |
Severance and other benefits | $1,000,000 | $700,000 | $200,000 | $200,000 | $1,000,000 | $1,300,000 | ' | $2,140,000 | $2,235,000 | $0 | ' | ' |
Goodwill_Changes_In_Carrying_A
Goodwill (Changes In Carrying Amount Of Goodwill) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 25, 2013 | Sep. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | |||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||||
Goodwill, Beginning balance | $204,937,000 | $188,438,000 | $204,937,000 | $188,438,000 | ||||
Accumulated impairment losses, Beginning balance | -62,834,000 | [1] | -62,834,000 | [1] | -62,834,000 | [1] | -62,834,000 | [1] |
Goodwill, Net, Beginning balance | 142,103,000 | 125,604,000 | 142,103,000 | 125,604,000 | ||||
Additions | ' | ' | 0 | [2] | 16,499,000 | [2] | ||
Adjustments | -8,387,000 | [3] | 0 | [3] | ' | ' | ||
Foreign currency translation adjustment | -282,000 | 0 | ' | ' | ||||
Goodwill, Ending balance | ' | ' | 196,268,000 | 204,937,000 | ||||
Accumulated impairment losses, Ending balance | ' | ' | -62,834,000 | -62,834,000 | [1] | |||
Goodwill, Net, Ending balance | ' | ' | 133,434,000 | 142,103,000 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 8,900,000 | ' | ' | ' | ||||
Finite-lived Intangible Assets Acquired | $8,900,000 | ' | ' | ' | ||||
[1] | (a)The impairment losses recorded in prior years are related to restaurant brands that we no longer own. | |||||||
[2] | (b)Additions for the prior year reflect the preliminary goodwill acquired as a result of the Canada acquisition. | |||||||
[3] | (c)The valuation of the reacquired franchise rights associated with the Canada acquisition was finalized during fiscal 2014 and a fair value of approximately $8.9 million was assigned to the intangible asset. There was no value assigned to these rights in the preliminary purchase price allocation presented at June 26, 2013. Intangibles was increased by approximately $8.9 million with a corresponding decrease to goodwill |
GOODWILL_AND_INTANGIBLES_Sched
GOODWILL AND INTANGIBLES Schedule of Intangibles (Details) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Finite-Lived Franchise Rights | $9,107 | $560 |
Finite-Lived Franchise Rights, Accumulated Amortization | -1,121 | -241 |
Finite-Lived Franchise Rights, net | 7,986 | 319 |
Other Finite-Lived Intangible Assets, Gross | 872 | 364 |
Other Finite-Lived Intanigble Assets, Accumulated Amortization | -292 | -210 |
Other Intangible Assets, Net | 580 | 154 |
Finite-Lived Intangible Assets, Gross | 9,979 | 924 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,413 | -451 |
Finite-Lived Intangible Assets, Net | 8,566 | 473 |
Indefinite-Lived License Agreements | $10,275 | $10,223 |
GOODWILL_AND_INTANGIBLES_Sched1
GOODWILL AND INTANGIBLES Schedule of Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization of Intangible Assets | $1,000,000 | $200,000 | $200,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 900,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 900,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 900,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 900,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $900,000 | ' | ' |
Recovered_Sheet4
Accrued And Other Liabilities (Accrued Liabilities) (Detail) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED AND OTHER LIABILITIES [Abstract] | ' | ' |
Gift cards | $104,378 | $91,893 |
Payroll | 77,585 | 77,238 |
Litigation reserves | 39,500 | 0 |
Sales tax | 19,622 | 18,613 |
Insurance | 20,652 | 17,743 |
Property tax | 14,209 | 14,119 |
Dividends | 15,625 | 13,511 |
Other | 36,446 | 36,348 |
Accrued liabilities | $328,017 | $269,465 |
Accrued_And_Other_Liabilities_1
Accrued And Other Liabilities (Other Liabilities) (Detail) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED AND OTHER LIABILITIES [Abstract] | ' | ' |
Straight-line rent | $57,462 | $57,129 |
Insurance | 36,352 | 38,602 |
Landlord contributions | 23,404 | 24,029 |
Unrecognized tax benefits | 5,247 | 5,055 |
Other | 6,633 | 7,078 |
Other liabilities | $129,098 | $131,893 |
Income_Taxes_Provision_For_Inc
Income Taxes (Provision For Income Taxes From Continuing Operations) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Current income tax expense: | ' | ' | ' |
Federal | $66,170 | $46,852 | $27,707 |
State | 15,219 | 11,800 | 7,056 |
Foreign | 3,550 | 2,879 | 5,098 |
Total current income tax expense | 84,939 | 61,531 | 39,861 |
Deferred income tax (benefit) expense: | ' | ' | ' |
Federal | -18,715 | 7,344 | 16,520 |
State | -4,087 | -1,919 | 1,196 |
Deferred Foreign Income Tax Expense (Benefit) | 112 | 0 | 0 |
Total deferred income tax (benefit) expense | -22,690 | 5,425 | 17,716 |
Provision for income taxes | $62,249 | $66,956 | $57,577 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Statutory Federal income tax rate | 35.00% | ' | ' |
Amount that would affect the effective tax rate if recognized | $4.90 | $4.30 | ' |
Potential reduction in unrecognized tax benefits due to expiration of statutes or sustained tax positions | 0.5 | ' | ' |
Recognized expense in interest | -0.3 | 0.5 | -0.3 |
Income tax penalties and interest accrued | 2.5 | 2.1 | ' |
Income tax penalties and interest accrued, net of deferred tax benefits | 1.7 | 1.5 | ' |
Federal deferred tax benefit | 0.8 | 0.6 | ' |
Anticipated Outcome During Next Twelve Months [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Amount that would affect the effective tax rate if recognized | $0.30 | ' | ' |
Income_Taxes_Reconciliation_Be
Income Taxes (Reconciliation Between Reported Provision For Income Taxes And Amount Computed By Statutory Federal Income Tax Rate) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax expense at statutory rate | $75,701 | $80,610 | $73,083 |
FICA tax credit | -18,116 | -16,450 | -16,609 |
State income taxes, net of Federal benefit | 7,636 | 6,368 | 4,750 |
Other | -2,972 | -3,572 | -3,647 |
Provision for income taxes | $62,249 | $66,956 | $57,577 |
Income_Taxes_Deferred_Income_T
Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Leasing transactions | $40,085 | $40,662 |
Stock-based compensation | 13,698 | 13,250 |
Restructure charges and impairments | 16,726 | 2,885 |
Insurance reserves | 18,550 | 18,595 |
Employee benefit plans | 404 | 544 |
Gift cards | 15,497 | 13,171 |
Other, net | 8,975 | 10,903 |
Total deferred income tax assets | 113,935 | 100,010 |
Deferred income tax liabilities: | ' | ' |
Prepaid expenses | 16,462 | 15,776 |
Goodwill and other amortization | 26,551 | 25,333 |
Depreciation and capitalized interest on property and equipment | 20,982 | 32,160 |
Other, net | 3,680 | 3,522 |
Total deferred income tax liabilities | 67,675 | 76,791 |
Net deferred income tax asset | $46,260 | $23,219 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Balance at beginning of year | $6,388 | $7,336 |
Additions based on tax positions related to the current year | 1,582 | 754 |
Additions based on tax positions related to prior years | 347 | 7 |
Settlements with tax authorities | -339 | -930 |
Expiration of statute of limitations | -603 | -779 |
Balance at end of year | $7,375 | $6,388 |
Debt_LongTerm_Debt_Detail
Debt (Long-Term Debt) (Detail) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 |
In Thousands, unless otherwise specified | ||
Debt [Line Items] | ' | ' |
Capital lease obligations (see Note 9) | $43,086 | $45,681 |
Long-term debt and capital lease obligations, including current maturities | 860,186 | 807,717 |
Less current installments | -27,884 | -27,596 |
Long-term debt, less current installments | 832,302 | 780,121 |
Term Loan [Member] | ' | ' |
Debt [Line Items] | ' | ' |
Term loan | 187,500 | 212,500 |
Revolver Borrowings [Member] | ' | ' |
Debt [Line Items] | ' | ' |
Revolving credit facility | 80,000 | 0 |
Ten Year Notes [Member] | ' | ' |
Debt [Line Items] | ' | ' |
Senior notes | 299,736 | 299,707 |
Five Year Notes [Member] | ' | ' |
Debt [Line Items] | ' | ' |
Senior notes | $249,864 | $249,829 |
Debt_Narrative_Detail
Debt (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Aug. 31, 2011 | Jun. 25, 2014 | Jun. 26, 2013 | Aug. 31, 2011 | Jun. 25, 2014 | Jun. 25, 2014 | Jun. 25, 2014 | |
Five Year Notes [Member] | Five Year Notes [Member] | Ten Year Notes [Member] | Ten Year Notes [Member] | 5.75% Notes [Member] | Revolver Borrowings [Member] | Revolver Borrowings [Member] | Revolver Borrowings [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Revised Unsecured Senior Credit Facility [Member] | Revised Unsecured Senior Credit Facility [Member] | Revised Unsecured Senior Credit Facility [Member] | |||||
Maximum [Member] | Minimum [Member] | |||||||||||||||||
Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | $550,000,000 | ' | $550,000,000 | ' | ' | $250,000,000 | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | 2.60% | 2.60% | 3.88% | 3.88% | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of long-term debt | 549,500,000 | 0 | 549,528,000 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | 250,000,000 | ' | ' | ' |
Credit facility borrowings during the year | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility repayments during the year | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | 25,000,000 | ' | ' | ' | ' | ' |
Term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,500,000 | 212,500,000 | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' |
Debt available under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | $170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 1.63% |
One-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | ' | ' |
Debt_LongTerm_Debt_Maturities_
Debt (Long-Term Debt Maturities Excluding Capital Lease Obligations) (Detail) (USD $) | Jun. 25, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $25,000 |
2015 | 25,000 |
2016 | 217,500 |
2017 | 249,864 |
2018 | 0 |
Thereafter | 299,736 |
Carrying value of notes | $817,100 |
Leases_Narrative_Detail
Leases (Narrative) (Detail) (USD $) | 12 Months Ended | |
Jun. 25, 2014 | Jun. 26, 2013 | |
Leases [Abstract] | ' | ' |
Capital Leased Assets, Gross | $39,000,000 | $39,000,000 |
Capital lease accumulated amortization | $20,100,000 | $18,200,000 |
Minimum lease renewal term at Company's option, years | '1 year | ' |
Maximum lease renewal term at Company's option, years | '30 years | ' |
Leases_Rent_Expense_Detail_Det
Leases (Rent Expense Detail) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Leases [Abstract] | ' | ' | ' |
Straight-lined minimum rent | $90,574 | $88,773 | $88,194 |
Contingent rent | 4,737 | 3,637 | 3,752 |
Other | 9,817 | 9,296 | 9,344 |
Total rent expense | $105,128 | $101,706 | $101,290 |
Leases_Future_Minimum_Lease_Pa
Leases (Future Minimum Lease Payments) (Detail) (USD $) | 12 Months Ended | |
Jun. 25, 2014 | ||
Leases [Abstract] | ' | |
Percentage Of Imputed Average Capital Lease Interest | 7.00% | |
Capital Leases, 2015 | $5,692,000 | |
Capital Leases, 2016 | 5,806,000 | |
Capital Leases, 2017 | 5,709,000 | |
Capital Leases, 2018 | 5,521,000 | |
Capital Leases, 2019 | 5,202,000 | |
Capital Leases, Thereafter | 36,968,000 | |
Capital Leases, Total minimum lease payments | 64,898,000 | [1] |
Imputed interest (average rate of 7%) | -21,812,000 | |
Present value of minimum lease payments | 43,086,000 | |
Less current installments | -2,883,000 | |
Capital Leases, Net minimum payments | 40,203,000 | |
Operating Leases, 2015 | 111,314,000 | |
Operating Leases, 2016 | 100,922,000 | |
Operating Leases, 2017 | 78,358,000 | |
Operating Leases, 2018 | 59,714,000 | |
Operating Leases, 2019 | 35,238,000 | |
Operating Leases, Thereafter | 105,646,000 | |
Operating Leases, Total minimum lease payments | 491,192,000 | [1] |
Capital Leases, Minimum sublease rentals | 35,500,000 | |
Operating Leases, Minimum sublease rentals | $48,400,000 | |
[1] | (a)Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. Sublease rentals are approximately $35.5 million and $48.4 million for capital and operating subleases, respectively. |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative) (Detail) (USD $) | 3 Months Ended | ||||
Sep. 25, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | |
Five Year Notes [Member] | Five Year Notes [Member] | Ten Year Notes [Member] | Ten Year Notes [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | $8,900,000 | ' | ' | ' | ' |
Stated interest rate | ' | 2.60% | 2.60% | 3.88% | 3.88% |
Senior notes | ' | 249,864,000 | 249,829,000 | 299,736,000 | 299,707,000 |
Fair value of notes | ' | $250,400,000 | $244,200,000 | $290,200,000 | $279,500,000 |
Fair_Value_Disclosures_Assets_
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Detail) (USD $) | 12 Months Ended | |
Jun. 25, 2014 | Jun. 26, 2013 | |
Restaurants | Restaurants | |
Fair Value Disclosures [Line Items] | ' | ' |
Number Of Underperforming Restaurants | 9 | 3 |
Carrying Value Of Impaired Long Lived Assets | $5,800,000 | $5,600,000 |
Fair value of impaired long-lived asset | 1,342,000 | 333,000 |
Impairment of Long-Lived Assets Held-for-use | 4,500,000 | 5,300,000 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 8,860,000 | ' |
Liquor Licenses [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Carrying Value Of Impaired Long Lived Assets | ' | 300,000 |
Fair value of impaired long-lived asset | 0 | 100,000 |
Impairment of Long-Lived Assets Held-for-use | 0 | 200,000 |
Fair Value Measurements Using Level 1 [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | 0 | 0 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 0 | ' |
Fair Value Measurements Using Level 1 [Member] | Liquor Licenses [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | 0 | 0 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 0 | ' |
Fair Value Measurements Using Level 2 [Member] | Liquor Licenses [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | 0 | 100,000 |
Fair Value Measurements Using Level 3 [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | 1,342,000 | 333,000 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 8,860,000 | ' |
Fair Value Measurements Using Level 3 [Member] | Liquor Licenses [Member] | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Fair value of impaired long-lived asset | $0 | $0 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Jun. 25, 2014 | Dec. 25, 2013 | Jun. 25, 2014 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 25, 2014 | Jun. 25, 2014 |
Employees And Non-Employee Directors And Consultants [Member] | Employees And Non-Employee Directors And Consultants [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Minimum [Member] | Maximum [Member] | ||
Employee Stock Option [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | 37.3 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '4 years |
Contractual term of stock option exercises, in years | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | $2.60 | ' | ' | $12.80 | ' | ' | ' | ' |
Period of recognition for unrecognized stock-based compensation costs, in years | ' | ' | ' | '1 year 10 months 17 days | ' | ' | '2 years 4 months 28 days | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | 25.7 | 22.4 | 12.6 | ' | ' | ' | ' | ' |
Tax benefit realized on options exercised | ' | ' | ' | 8.9 | 8.1 | 4.8 | ' | ' | ' | ' | ' |
Fair value of shares that vested during period | ' | ' | ' | ' | ' | ' | $42.20 | $22 | $11.50 | ' | ' |
StockBased_Compensation_Transa
Stock-Based Compensation (Transactions During Fiscal 2014-Stock Options) (Detail) (Employee Stock Option [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Options outstanding at June 26, 2013, Number of Options | 2,725 |
Granted, Number of Options | 223 |
Exercised, Number of Options | -1,203 |
Forfeited or canceled, Number of Options | -44 |
Options outstanding at June 25, 2014, Number of Options | 1,701 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Options outstanding at June 26, 2013, Weighted Average Exercise Price | $23.13 |
Granted, Weighted Average Exercise Price | $42.89 |
Exercised, Weighted Average Exercise Price | $24.35 |
Forfeited or canceled, Weighted Average Exercise Price | $25.15 |
Options outstanding at June 25, 2014, Weighted Average Exercise Price | $24.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,113 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $20.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '2 years 9 months 25 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $44,367 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $33,728 |
StockBased_Compensation_Transa1
Stock-Based Compensation (Transactions During Fiscal 2014-Restricted Share Awards) (Detail) (Restricted Share Awards [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 |
Restricted Share Awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Restricted share awards outstanding at June 26, 2013, Number of Restricted Share Awards | 1,923 |
Granted, Number of Restricted Share Awards | 455 |
Vested, Number of Restricted Share Awards | -703 |
Forfeited, Number of Restricted Share Awards | -167 |
Restricted share awards outstanding at June 25, 2014, Number of Restricted Share Awards | 1,508 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Restricted share awards outstanding at June 26, 2013, Weighted Average Fair Value Per Award | $21.15 |
Granted, Weighted Average Fair Value Per Award | $39.81 |
Vested, Weighted Average Fair Value Per Award | $12.93 |
Forfeited, Weighted Average Fair Value Per Award | $32.65 |
Restricted share awards outstanding at June 25, 2014, Weighted Average Fair Value Per Award | $29.39 |
Savings_Plans_Narrative_Detail
Savings Plans (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Eligibility age for savings plan | '21 years | ' | ' |
Number of years of service necessary for savings plan eligibility | '1 year | ' | ' |
Hours of service necessary for eligibility in employee savings plan | '1000 hours | ' | ' |
Percentage of base salary allowed for savings plan contribution | 50.00% | ' | ' |
Percentage of bonus allowed for contribution to savings plan | 100.00% | ' | ' |
Employer matching contribution percentage for first three percent contributed to savings plan | 100.00% | ' | ' |
Percentage of compensation contributed to savings plan matched by employer at 100% | 3.00% | ' | ' |
Employer matching contribution percentage for subsequent two percent contributed to savings plan | 50.00% | ' | ' |
Percentage over 3% for which employer will match 50% of employee contributions to savings plan | 2.00% | ' | ' |
Employer contributions to savings plan | $7.40 | $7.20 | $6.70 |
Recovered_Sheet5
Supplemental Cash Flow Information (Cash Paid For Interest And Income Taxes) (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | |||
Income taxes, net of refunds | $48,379 | $60,291 | $47,514 | |||
Interest, net of amounts capitalized | 25,476 | [1] | 41,504 | [1] | 24,455 | [1] |
5.75% Notes [Member] | ' | ' | ' | |||
Interest, net of amounts capitalized | ' | $15,300 | ' | |||
5.75% Notes [Member] | ' | ' | ' | |||
Stated interest rate | ' | 5.75% | ' | |||
[1] | (a) Fiscal 2013 interest includes $15.3 million of interest paid upon retirement of the 5.75% notes in June 2013. |
Recovered_Sheet6
Supplemental Cash Flow Information (Non-Cash Investing and Financing Activities) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Retirement of fully depreciated assets | $64,420 | $55,427 | $77,249 |
Dividends declared but not paid | $15,625 | $13,511 | $11,948 |
Contingencies_Narrative_Detail
Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 25, 2014 | Jun. 25, 2014 | Jun. 26, 2013 |
Lease Guarantees And Secondary Obligations [Member] | Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ' | ' | ' |
Loss Contingency, Range of Possible Loss, Maximum | ' | $116.50 | $132.60 |
Description of material contingencies | 'No material liabilities have been recorded as of June 25, 2014 | ' | ' |
Letters of Credit Outstanding, Amount | $26.10 | ' | ' |
CONTINGENCIES_Loss_Contingenci
CONTINGENCIES Loss Contingencies (Details) (USD $) | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Aug. 06, 2014 |
LegalMatter | August 2004 California lawsuit [Member] | Subsequent Event [Member] | ||
August 2004 California lawsuit [Member] | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Litigation reserves | $39,500,000 | $0 | $39,000,000 | ' |
Loss Contingency, Range of Possible Loss, Maximum | ' | ' | ' | $56,500,000 |
Number of threatened or pending claims expected to have a material adverse effect | 0 | ' | ' | ' |
Recovered_Sheet7
Quarterly Results Of Operations (Unaudited) (Unaudited Consolidated Quarterly Results Of Operations) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 26, 2013 | Mar. 27, 2013 | Dec. 26, 2012 | Sep. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $758,725 | $758,408 | $704,395 | $683,924 | $730,068 | $742,759 | $689,764 | $683,507 | $2,905,452 | $2,846,098 | $2,820,722 |
Income before provision for income taxes | 35,178 | 80,815 | 57,713 | 42,582 | 61,823 | 72,814 | 55,226 | 40,452 | 216,288 | 230,315 | 208,809 |
Net income | $28,820 | $56,263 | $39,744 | $29,212 | $46,367 | $51,951 | $37,177 | $27,864 | $154,039 | $163,359 | $151,232 |
Basic net income per share (in dollars per share) | $0.44 | $0.85 | $0.59 | $0.44 | $0.67 | $0.73 | $0.51 | $0.38 | $2.33 | $2.28 | $1.93 |
Diluted net income per share (in dollars per share) | $0.43 | $0.82 | $0.58 | $0.42 | $0.64 | $0.71 | $0.50 | $0.36 | $2.26 | $2.20 | $1.87 |
Basic weighted average shares outstanding (in shares) | 65,009 | 66,479 | 66,811 | 66,693 | 69,607 | 71,067 | 72,560 | 73,903 | 66,251 | 71,788 | 78,559 |
Diluted weighted average shares outstanding (in shares) | 66,824 | 68,342 | 68,628 | 68,802 | 71,999 | 73,341 | 74,720 | 76,558 | 68,152 | 74,158 | 80,664 |
Recovered_Sheet8
Quarterly Results Of Operations (Unaudited) (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 26, 2013 | Mar. 27, 2013 | Dec. 26, 2012 | Sep. 26, 2012 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 27, 2012 | Jun. 26, 2013 | Apr. 30, 2013 | |
5.75% Notes [Member] | Sale Of Macaroni Grill [Member] | ||||||||||||
Quarterly Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation reserves | $39,500,000 | ' | ' | ' | ' | ' | ' | ' | $39,500,000 | $0 | $0 | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -15,768,000 | 0 | 15,800,000 | ' |
Long-lived asset impairments | 3,200,000 | ' | 1,300,000 | ' | 4,600,000 | ' | 700,000 | ' | 4,502,000 | 5,276,000 | 3,139,000 | ' | ' |
Severance Costs | 1,000,000 | 700,000 | 200,000 | 200,000 | 1,000,000 | 1,300,000 | ' | ' | 2,140,000 | 2,235,000 | 0 | ' | ' |
Lease termination charges | 600,000 | 900,000 | 200,000 | 200,000 | 600,000 | ' | 1,100,000 | 400,000 | ' | ' | ' | ' | ' |
Proceeds from Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,300,000 |
Gain on sale of land | ' | ' | ' | ' | $400,000 | ' | $2,300,000 | ' | ' | $2,900,000 | ' | ' | ' |