Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 25, 2015 | Apr. 27, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 25-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BRINKER INTERNATIONAL INC | |
Entity Central Index Key | 703351 | |
Current Fiscal Year End Date | -18 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,134,527 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $63,543 | $57,685 |
Accounts receivable | 43,083 | 47,850 |
Inventories | 24,125 | 23,643 |
Prepaid expenses and other | 58,431 | 65,506 |
Deferred income taxes | 864 | 16,170 |
Total current assets | 190,046 | 210,854 |
Property and Equipment, at Cost: | ||
Land | 148,053 | 149,184 |
Buildings and leasehold improvements | 1,536,292 | 1,483,894 |
Furniture and equipment | 607,965 | 593,344 |
Construction-in-progress | 17,065 | 32,844 |
Property plant and equipment gross | 2,309,375 | 2,259,266 |
Less accumulated depreciation and amortization | -1,271,950 | -1,202,812 |
Net property and equipment | 1,037,425 | 1,056,454 |
Other Assets: | ||
Goodwill | 132,309 | 133,434 |
Deferred income taxes | 23,512 | 30,090 |
Intangibles, net | 17,234 | 18,841 |
Other | 36,793 | 40,931 |
Total other assets | 209,848 | 223,296 |
Total assets | 1,437,319 | 1,490,604 |
Current Liabilities: | ||
Current installments of long-term debt | 3,115 | 27,884 |
Accounts payable | 89,382 | 102,931 |
Accrued liabilities | 312,336 | 328,017 |
Income taxes payable | 1,808 | 7,278 |
Total current liabilities | 406,641 | 466,110 |
Long-term debt, less current installments | 933,207 | 832,302 |
Other liabilities | 129,600 | 129,098 |
Commitments and Contingencies (Note 9) | ||
Shareholders’ (Deficit) Equity: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 62,035,497 shares outstanding at March 25, 2015, and 176,246,649 shares issued and 64,558,909 shares outstanding at June 25, 2014 | 17,625 | 17,625 |
Additional paid-in capital | 488,338 | 484,320 |
Accumulated other comprehensive loss | -8,123 | -940 |
Retained earnings | 2,391,810 | 2,306,532 |
Shareholders' equity including treasury stock | 2,889,650 | 2,807,537 |
Less treasury stock, at cost (114,211,152 shares at March 25, 2015 and 111,687,740 shares at June 25, 2014) | -2,921,779 | -2,744,443 |
Total shareholders’ (deficit) equity | -32,129 | 63,094 |
Total liabilities and shareholders’ (deficit) equity | $1,437,319 | $1,490,604 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
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 | 62,035,497 | 64,558,909 |
Treasury Stock, shares | 114,211,152 | 111,687,740 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 | Mar. 25, 2015 | Mar. 26, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Company sales | $761,736 | $739,200 | $2,166,368 | $2,088,087 |
Franchise and other revenues | 22,479 | 20,093 | 71,763 | 61,528 |
Total revenues | 784,215 | 759,293 | 2,238,131 | 2,149,615 |
Operating costs and expenses: | ||||
Cost of sales | 203,960 | 195,439 | 582,507 | 561,276 |
Restaurant labor | 240,105 | 233,890 | 695,114 | 672,525 |
Restaurant expenses | 173,611 | 172,459 | 528,047 | 511,293 |
Company restaurant expenses | 617,676 | 601,788 | 1,805,668 | 1,745,094 |
Depreciation and amortization | 36,599 | 34,218 | 108,213 | 100,912 |
General and administrative | 35,194 | 34,009 | 100,488 | 98,792 |
Other gains and charges | -8,477 | 2,088 | 747 | 4,315 |
Total operating costs and expenses | 680,992 | 672,103 | 2,015,116 | 1,949,113 |
Operating income | 103,223 | 87,190 | 223,015 | 200,502 |
Interest expense | 7,361 | 7,068 | 21,709 | 21,128 |
Other, net | -454 | -693 | -1,568 | -1,736 |
Income before provision for income taxes | 96,316 | 80,815 | 202,874 | 181,110 |
Provision for income taxes | 30,889 | 24,552 | 63,403 | 55,891 |
Net income | 65,427 | 56,263 | 139,471 | 125,219 |
Basic net income per share | $1.04 | $0.85 | $2.19 | $1.88 |
Diluted net income per share | $1.02 | $0.82 | $2.14 | $1.83 |
Basic weighted average shares outstanding | 62,891 | 66,479 | 63,719 | 66,661 |
Diluted weighted average shares outstanding | 64,091 | 68,342 | 65,108 | 68,591 |
Other Comprehensive Income (Loss) [Abstract] | ||||
Foreign Currency Translation Adjustment | -2,847 | -1,108 | -7,183 | -1,862 |
Other Comprehensive Loss | -2,847 | -1,108 | -7,183 | -1,862 |
Comprehensive Income | $62,580 | $55,155 | $132,288 | $123,357 |
Dividends per share | $0.28 | $0.24 | $0.84 | $0.72 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 |
Cash Flows from Operating Activities: | ||
Net income | $139,471 | $125,219 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 108,213 | 100,912 |
Stock-based compensation | 11,587 | 12,990 |
Deferred income taxes | 21,884 | -1,490 |
Restructure charges and other impairments | 8,402 | 3,836 |
Net loss on disposal of assets | 3,819 | 3,208 |
Gain on equity investments | -283 | -353 |
Other | 215 | 355 |
Changes in assets and liabilities: | ||
Accounts receivable | 7,450 | 2,820 |
Inventories | -563 | 212 |
Prepaid expenses and other | 8,154 | 4,115 |
Intangibles and other assets | -3,197 | -1,694 |
Accounts payable | -1,693 | 4,168 |
Accrued liabilities | -24,334 | 11,699 |
Current income taxes | -8,080 | 14,043 |
Other liabilities | 3,862 | -2,940 |
Net cash provided by operating activities | 274,907 | 277,100 |
Cash Flows from Investing Activities: | ||
Payments for property and equipment | -107,108 | -113,980 |
Proceeds from sale of assets | 1,950 | 833 |
Net cash used in investing activities | -105,158 | -113,147 |
Cash Flows from Financing Activities: | ||
Borrowings on revolving credit facility | 442,750 | 98,000 |
Purchases of treasury stock | -217,019 | -191,811 |
Payments on long-term debt | -188,758 | -19,890 |
Payments on revolving credit facility | -177,000 | -40,000 |
Payments of dividends | -53,248 | -47,556 |
Excess tax benefits from stock-based compensation | 16,920 | 17,972 |
Proceeds from issuances of treasury stock | 14,965 | 24,574 |
Payments for deferred financing costs | -2,501 | 0 |
Net cash used in financing activities | -163,891 | -158,711 |
Net change in cash and cash equivalents | 5,858 | 5,242 |
Cash and cash equivalents at beginning of period | 57,685 | 59,367 |
Cash and cash equivalents at end of period | $63,543 | $64,609 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 25, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
References to “Brinker,” the "Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. | |
Our consolidated financial statements as of March 25, 2015 and June 25, 2014 and for the thirteen week and thirty-nine week periods ended March 25, 2015 and March 26, 2014 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). 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 March 25, 2015, we owned, operated or franchised 1,629 restaurants in the United States and 29 countries and two territories outside of the United States. | |
We discovered an immaterial error related to the classification of certain revenues and expenses in the consolidated statements of comprehensive income in the previously issued financial statements for the year ended June 25, 2014 primarily related to Maggiano’s delivery services. The amounts had previously been reported net instead of gross. The error did not impact net income as previously reported or any prior amounts reported on the consolidated balance sheets, statements of cash flows or statements of shareholders' equity. We corrected the error by adjusting the previously reported consolidated statements of comprehensive income for the thirteen week and thirty-nine week periods ended March 26, 2014, which resulted in a $0.9 million and a $2.9 million increase in franchise and other revenues and restaurant expenses, respectively. | |
The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants and the Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. | |
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. | |
The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the June 25, 2014 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||
Mar. 25, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||||||
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting periods. 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 earnings 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. Stock options and restricted share awards with an anti-dilutive effect are not included in the diluted earnings per share calculation. | ||||||||||||
Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): | ||||||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||||||
March 25, 2015 | March 26, 2014 | March 25, 2015 | March 26, 2014 | |||||||||
Basic weighted average shares outstanding | 62,891 | 66,479 | 63,719 | 66,661 | ||||||||
Dilutive stock options | 525 | 815 | 617 | 888 | ||||||||
Dilutive restricted shares | 675 | 1,048 | 772 | 1,042 | ||||||||
1,200 | 1,863 | 1,389 | 1,930 | |||||||||
Diluted weighted average shares outstanding | 64,091 | 68,342 | 65,108 | 68,591 | ||||||||
Awards excluded due to anti-dilutive effect on earnings per share | 19 | 119 | 234 | 241 | ||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT | LONG-TERM DEBT | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Revolving credit facility | $ | 345,750 | $ | 80,000 | ||||
3.88% notes | 299,759 | 299,736 | ||||||
2.60% notes | 249,891 | 249,864 | ||||||
Capital lease obligations | 40,922 | 43,086 | ||||||
Term loan | 0 | 187,500 | ||||||
936,322 | 860,186 | |||||||
Less current installments | (3,115 | ) | (27,884 | ) | ||||
$ | 933,207 | $ | 832,302 | |||||
During the first nine months of fiscal 2015, $97 million was drawn from the $250 million revolving credit facility primarily to fund share repurchases, and we paid the required quarterly term loan payments totaling $18.7 million. In March 2015, we terminated the existing credit facility including both the $250 million revolver and the term loan and entered into a new $750 million revolving credit facility. Approximately $345.8 million was drawn from the new revolver and the proceeds were used to pay off the outstanding balances of the term loan and $250 million revolver in the amount of $168.8 million and $177.0 million, respectively. | ||||||||
The maturity date of the $750 million revolving credit facility is March 12, 2020. The revolving credit facility bears interest of 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 2.00%. Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.38%. One month LIBOR at March 25, 2015 was approximately 0.18%. As of March 25, 2015, $404.3 million of credit is available under the revolving credit facility. | ||||||||
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. |
OTHER_GAINS_AND_CHARGES
OTHER GAINS AND CHARGES | 9 Months Ended | |||||||||||||||
Mar. 25, 2015 | ||||||||||||||||
Other Gains and Charges [Abstract] | ||||||||||||||||
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES | |||||||||||||||
Other gains and charges consist of the following (in thousands): | ||||||||||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||||||||||
March 25, | March 26, | March 25, | March 26, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Litigation | $ | (8,553 | ) | $ | 0 | $ | (2,753 | ) | $ | 0 | ||||||
Restaurant impairment charges | 0 | 0 | 747 | 1,285 | ||||||||||||
Restaurant closure charges | 76 | 1,224 | 1,457 | 2,330 | ||||||||||||
Loss (Gain) on the sale of assets, net | 0 | 0 | 1,093 | (579 | ) | |||||||||||
Impairment of liquor licenses | 0 | 0 | 175 | 0 | ||||||||||||
Other | 0 | 864 | 28 | 1,279 | ||||||||||||
$ | (8,477 | ) | $ | 2,088 | $ | 747 | $ | 4,315 | ||||||||
We were a plaintiff in the antitrust litigation against Visa and MasterCard styled as Progressive Casualty Insurance Co., et al. v. Visa, Inc., et al. A settlement agreement was fully executed by all parties in January 2015 and we received approximately $8.6 million per the terms of this agreement. | ||||||||||||||||
During the second quarter of fiscal 2015, the class action lawsuit styled as Hohnbaum, et al. v. Brinker Restaurant Corp., et al. was finalized resulting in an additional charge of approximately $5.8 million to adjust our previous estimate of the final settlement amount. See Note 9 for additional disclosures. Additionally, during the first nine months of fiscal 2015 we recorded restaurant impairment charges of $0.7 million related to underperforming restaurants that either continue to operate or are scheduled to close and $0.2 million for the excess of the carrying amount of a transferable liquor license over the fair value. We also recorded a $1.1 million charge primarily related to the sale of two company owned restaurants located in Mexico and restaurant closure charges of $1.5 million primarily related to lease termination charges. | ||||||||||||||||
In the third quarter of fiscal 2014, we recorded $1.2 million of restaurant closure charges consisting primarily of lease termination charges and other costs associated with closed restaurants. | ||||||||||||||||
During the first nine months of fiscal 2014, we recorded restaurant impairment charges of $1.3 million related to underperforming restaurants that either continue to operate or were scheduled to close. We also recorded $2.3 million of restaurant closure charges consisting primarily of lease termination charges and a $0.6 million gain primarily related to land sales in the second quarter. |
ACCRUED_AND_OTHER_LIABILITIES
ACCRUED AND OTHER LIABILITIES | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
ACCRUED AND OTHER LIABILITIES [Abstract] | ||||||||
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES | |||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Gift cards | $ | 119,233 | $ | 104,378 | ||||
Payroll | 81,800 | 77,585 | ||||||
Litigation reserves | 1,185 | 39,500 | ||||||
Sales tax | 21,266 | 19,622 | ||||||
Insurance | 20,160 | 20,652 | ||||||
Property tax | 11,041 | 14,209 | ||||||
Dividends | 17,513 | 15,625 | ||||||
Other | 40,138 | 36,446 | ||||||
$ | 312,336 | $ | 328,017 | |||||
Other liabilities consist of the following (in thousands): | ||||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Straight-line rent | $ | 55,938 | $ | 57,462 | ||||
Insurance | 33,157 | 36,352 | ||||||
Landlord contributions | 25,410 | 23,404 | ||||||
Unrecognized tax benefits | 6,619 | 5,247 | ||||||
Other | 8,476 | 6,633 | ||||||
$ | 129,600 | $ | 129,098 | |||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Mar. 25, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid 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. | |||||||||||||||
(a) | Non-Financial Assets Measured on a Non-Recurring Basis | |||||||||||||||
We review the carrying amount of property and equipment and transferable liquor licenses 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 of property and equipment 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. Based on our semi-annual review, during fiscal 2015, long-lived assets with a carrying value of $0.7 million, primarily related to two underperforming restaurants, were determined to have no fair value resulting in an impairment charge of $0.7 million. During fiscal 2014, long-lived assets with a carrying value of $2.6 million, primarily related to four underperforming restaurants, were written down to their fair value of $1.3 million resulting in an impairment charge of $1.3 million. | ||||||||||||||||
We determine fair value of transferable liquor licenses based on prices in the open market for licenses in same or similar jurisdictions. Based on our semi-annual review, during fiscal 2015, one transferable liquor license with a carrying value of $225,000 was written down to the fair value of $50,000 resulting in an impairment charge of $175,000. During fiscal 2014, we reviewed the transferable liquor licenses and determined there was no impairment. | ||||||||||||||||
All impairment charges related to underperforming restaurants and liquor licenses were included in other gains and charges in the consolidated statements of comprehensive income for the periods presented. | ||||||||||||||||
The following table presents fair values for those assets measured at fair value on a non-recurring basis at March 25, 2015 and March 26, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Long-lived assets held for use: | ||||||||||||||||
At March 25, 2015 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
At March 26, 2014 | $ | 0 | $ | 0 | $ | 1,342 | $ | 1,342 | ||||||||
Liquor licenses: | ||||||||||||||||
At March 25, 2015 | $ | 0 | $ | 50 | $ | 0 | $ | 50 | ||||||||
At March 26, 2014 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
We review the carrying amount of goodwill and reacquired franchise rights 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 determined that there was no impairment of goodwill during our annual test in fiscal 2015 and fiscal 2014 as the fair value of our reporting units was substantially in excess of the carrying value. We also determined that there was no impairment of reacquired franchise rights during our annual test in fiscal 2015 and fiscal 2014. No indicators of impairment were identified through the end of the third quarter of fiscal 2015. | ||||||||||||||||
(b) | Other Financial Instruments | |||||||||||||||
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items. The carrying amount of debt outstanding related to the revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of the 2.60% notes and 3.88% notes are based on quoted market prices and are considered Level 2 fair value measurements. | ||||||||||||||||
The carrying amounts and fair values of the 2.60% notes and 3.88% notes are as follows (in thousands): | ||||||||||||||||
25-Mar-15 | 25-Jun-14 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
2.60% Notes | $ | 249,891 | $ | 251,163 | $ | 249,864 | $ | 250,400 | ||||||||
3.88% Notes | $ | 299,759 | $ | 299,328 | $ | 299,736 | $ | 290,211 | ||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Mar. 25, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | SHAREHOLDERS’ (DEFICIT) EQUITY |
In August 2014, our Board of Directors authorized a $350.0 million increase to our existing share repurchase program. We repurchased approximately 3.9 million shares of our common stock for $217.0 million during the first three quarters of fiscal 2015 including 3.7 million shares purchased under the share repurchase program. As of March 25, 2015, approximately $449.7 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 in treasury stock within shareholders’ (deficit) equity. | |
During the first three quarters of fiscal 2015, we granted approximately 235,000 stock options with a weighted average exercise price of $49.56 and a weighted average fair value of $11.71, and approximately 262,000 restricted share awards with a weighted average fair value of $50.40. Additionally, during the first three quarters of fiscal 2015, approximately 719,000 stock options were exercised resulting in cash proceeds of approximately $15.0 million. We received an excess tax benefit from stock-based compensation of approximately $16.9 million during the first three quarters primarily as a result of the vesting and distribution of restricted stock grants and performance shares and stock option exercises. The excess tax benefit from stock-based compensation represents the additional income tax benefit received resulting from the increase in the fair value of awards from the time of grant to the exercise date. | |
During the first three quarters of fiscal 2015, we paid dividends of $53.2 million to common stock shareholders, compared to $47.6 million in the prior year. Additionally, our Board of Directors approved a 17 percent increase in the quarterly dividend from $0.24 to $0.28 per share effective with the dividend declared in August 2014. We also declared a quarterly dividend of $17.5 million in February 2015 which was paid on March 26, 2015. The dividend accrual was included in accrued liabilities on our consolidated balance sheet as of March 25, 2015. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid for income taxes and interest in the first three quarters of fiscal 2015 and 2014 are as follows (in thousands): | ||||||||
March 25, | March 26, | |||||||
2015 | 2014 | |||||||
Income taxes, net of refunds | $ | 30,329 | $ | 22,825 | ||||
Interest, net of amounts capitalized | 15,230 | 14,640 | ||||||
Non-cash investing and financing activities for the first three quarters of fiscal 2015 and 2014 are as follows (in thousands): | ||||||||
March 25, | March 26, | |||||||
2015 | 2014 | |||||||
Retirement of fully depreciated assets | $ | 32,061 | $ | 49,601 | ||||
Accrued dividends | 17,513 | 15,838 | ||||||
Accrued capital expenditures | 3,357 | 5,262 | ||||||
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Mar. 25, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES |
In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of March 25, 2015 and June 25, 2014, we have outstanding lease guarantees or are secondarily liable for $104.7 million and $116.5 million, respectively. These amounts represent 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 liabilities have been recorded as of March 25, 2015, 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 March 25, 2015, we had $32.1 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually. | |
The aggregate litigation reserves of approximately $1.2 million at March 25, 2015 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, styled as Hohnbaum, et al. v. Brinker Restaurant Corp., et al. On August 6, 2014, the parties reached a preliminary settlement agreement, which remained subject to court approval, to resolve all claims in exchange for a settlement payment not to exceed $56.5 million. On December 12, 2014, the court granted final approval of the settlement agreement. In February 2015, we funded the settlement in the amount of $44.0 million against our previously established reserve. We do not expect any further payments related to this matter. | |
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 likely to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 25, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
In April 2015, an additional $30 million was borrowed from the revolver for general corporate purposes, including share repurchases. Subsequent to the end of the quarter, we repurchased approximately 926,000 shares for $56.2 million. |
EFFECT_OF_NEW_ACCOUNTING_STAND
EFFECT OF NEW ACCOUNTING STANDARDS Effect of New Accounting Standards (Notes) | 9 Months Ended |
Mar. 25, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
EFFECT OF NEW ACCOUNTING STANDARDS | 11. EFFECT OF NEW ACCOUNTING STANDARDS |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt this guidance in the first quarter of fiscal 2017. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. We do not expect the updated guidance to have a material impact on our financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This update requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, ASU 2013-05 clarified that the parent should apply the guidance in Subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. ASU 2013-05 was effective for us during the quarter ended September 24, 2014. The adoption of this standard has not had an impact on our consolidated financial statements. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||
Mar. 25, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Weighted Average Number of Shares | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): | |||||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||||||
March 25, 2015 | March 26, 2014 | March 25, 2015 | March 26, 2014 | |||||||||
Basic weighted average shares outstanding | 62,891 | 66,479 | 63,719 | 66,661 | ||||||||
Dilutive stock options | 525 | 815 | 617 | 888 | ||||||||
Dilutive restricted shares | 675 | 1,048 | 772 | 1,042 | ||||||||
1,200 | 1,863 | 1,389 | 1,930 | |||||||||
Diluted weighted average shares outstanding | 64,091 | 68,342 | 65,108 | 68,591 | ||||||||
Awards excluded due to anti-dilutive effect on earnings per share | 19 | 119 | 234 | 241 | ||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-term debt consists of the following (in thousands): | |||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Revolving credit facility | $ | 345,750 | $ | 80,000 | ||||
3.88% notes | 299,759 | 299,736 | ||||||
2.60% notes | 249,891 | 249,864 | ||||||
Capital lease obligations | 40,922 | 43,086 | ||||||
Term loan | 0 | 187,500 | ||||||
936,322 | 860,186 | |||||||
Less current installments | (3,115 | ) | (27,884 | ) | ||||
$ | 933,207 | $ | 832,302 | |||||
OTHER_GAINS_AND_CHARGES_Tables
OTHER GAINS AND CHARGES (Tables) | 9 Months Ended | |||||||||||||||
Mar. 25, 2015 | ||||||||||||||||
Other Gains and Charges [Abstract] | ||||||||||||||||
Schedule Of Other Gains And Charges | Other gains and charges consist of the following (in thousands): | |||||||||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||||||||||
March 25, | March 26, | March 25, | March 26, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Litigation | $ | (8,553 | ) | $ | 0 | $ | (2,753 | ) | $ | 0 | ||||||
Restaurant impairment charges | 0 | 0 | 747 | 1,285 | ||||||||||||
Restaurant closure charges | 76 | 1,224 | 1,457 | 2,330 | ||||||||||||
Loss (Gain) on the sale of assets, net | 0 | 0 | 1,093 | (579 | ) | |||||||||||
Impairment of liquor licenses | 0 | 0 | 175 | 0 | ||||||||||||
Other | 0 | 864 | 28 | 1,279 | ||||||||||||
$ | (8,477 | ) | $ | 2,088 | $ | 747 | $ | 4,315 | ||||||||
ACCRUED_AND_OTHER_LIABILITIES_
ACCRUED AND OTHER LIABILITIES (Tables) | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
ACCRUED AND OTHER LIABILITIES [Abstract] | ||||||||
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): | |||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Gift cards | $ | 119,233 | $ | 104,378 | ||||
Payroll | 81,800 | 77,585 | ||||||
Litigation reserves | 1,185 | 39,500 | ||||||
Sales tax | 21,266 | 19,622 | ||||||
Insurance | 20,160 | 20,652 | ||||||
Property tax | 11,041 | 14,209 | ||||||
Dividends | 17,513 | 15,625 | ||||||
Other | 40,138 | 36,446 | ||||||
$ | 312,336 | $ | 328,017 | |||||
Schedule Of Other Liabilities | Other liabilities consist of the following (in thousands): | |||||||
March 25, | June 25, | |||||||
2015 | 2014 | |||||||
Straight-line rent | $ | 55,938 | $ | 57,462 | ||||
Insurance | 33,157 | 36,352 | ||||||
Landlord contributions | 25,410 | 23,404 | ||||||
Unrecognized tax benefits | 6,619 | 5,247 | ||||||
Other | 8,476 | 6,633 | ||||||
$ | 129,600 | $ | 129,098 | |||||
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Mar. 25, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Nonrecurring | The following table presents fair values for those assets measured at fair value on a non-recurring basis at March 25, 2015 and March 26, 2014 (in thousands): | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Long-lived assets held for use: | ||||||||||||||||
At March 25, 2015 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
At March 26, 2014 | $ | 0 | $ | 0 | $ | 1,342 | $ | 1,342 | ||||||||
Liquor licenses: | ||||||||||||||||
At March 25, 2015 | $ | 0 | $ | 50 | $ | 0 | $ | 50 | ||||||||
At March 26, 2014 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts and fair values of the 2.60% notes and 3.88% notes are as follows (in thousands): | |||||||||||||||
25-Mar-15 | 25-Jun-14 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
2.60% Notes | $ | 249,891 | $ | 251,163 | $ | 249,864 | $ | 250,400 | ||||||||
3.88% Notes | $ | 299,759 | $ | 299,328 | $ | 299,736 | $ | 290,211 | ||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended | |||||||
Mar. 25, 2015 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Cash Paid for Interest and Income Taxes | Cash paid for income taxes and interest in the first three quarters of fiscal 2015 and 2014 are as follows (in thousands): | |||||||
March 25, | March 26, | |||||||
2015 | 2014 | |||||||
Income taxes, net of refunds | $ | 30,329 | $ | 22,825 | ||||
Interest, net of amounts capitalized | 15,230 | 14,640 | ||||||
Non-Cash Investing and Financing Activities | Non-cash investing and financing activities for the first three quarters of fiscal 2015 and 2014 are as follows (in thousands): | |||||||
March 25, | March 26, | |||||||
2015 | 2014 | |||||||
Retirement of fully depreciated assets | $ | 32,061 | $ | 49,601 | ||||
Accrued dividends | 17,513 | 15,838 | ||||||
Accrued capital expenditures | 3,357 | 5,262 | ||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 26, 2014 | Mar. 26, 2014 | Mar. 25, 2015 |
restaurant | |||
Country | |||
Location | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of entity restaurants | 1,629 | ||
Number of countries in which entity operates | 29 | ||
Number of territories in which entity operates | 2 | ||
Quantifying Immaterial Error in Prior Period | $0.90 | $2.90 |
Schedule_of_Weighted_Average_N
Schedule of Weighted Average Number of Shares (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 | Mar. 25, 2015 | Mar. 26, 2014 |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Basic weighted average shares outstanding | 62,891 | 66,479 | 63,719 | 66,661 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,200 | 1,863 | 1,389 | 1,930 |
Diluted weighted average shares outstanding | 64,091 | 68,342 | 65,108 | 68,591 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19 | 119 | 234 | 241 |
Employee Stock Option [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 525 | 815 | 617 | 888 |
Restricted Stock Units (RSUs) [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 675 | 1,048 | 772 | 1,042 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Capital lease obligations | $40,922 | $43,086 |
Long-term debt and capital lease obligations, including current maturities | 936,322 | 860,186 |
Less current installments | -3,115 | -27,884 |
Long-term debt, less current installments | 933,207 | 832,302 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 299,759 | 299,736 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 249,891 | 249,864 |
$750 Million Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 345,750 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 0 | 187,500 |
$250 Million Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $80,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | |
Mar. 25, 2015 | Mar. 26, 2014 | Mar. 25, 2015 | |
Line of Credit Facility [Line Items] | |||
Repayments of Lines of Credit | $177,000,000 | $40,000,000 | |
$250 Million Revolver [Member] | |||
Line of Credit Facility [Line Items] | |||
Proceeds from Lines of Credit | 97,000,000 | ||
Repayments of Lines of Credit | 177,000,000 | ||
Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Periodic Payment | 18,700,000 | ||
Repayments of Lines of Credit | 168,800,000 | ||
$250 Million Term Loan and $250 Million Revolver Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | 12-Mar-15 | ||
$750 Million Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Proceeds from Lines of Credit | 345,800,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 750,000,000 | 750,000,000 | |
Line of Credit Facility, Expiration Date | 12-Mar-20 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $404,300,000 | $404,300,000 | |
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | ||
Maximum [Member] | $750 Million Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Minimum [Member] | $750 Million Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.38% | ||
London Interbank Offered Rate (LIBOR) [Member] | $750 Million Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.18% |
Other_Gains_and_Charges_Schedu
Other Gains and Charges - Schedule of Other Gains and Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 | Mar. 25, 2015 | Mar. 26, 2014 |
Other Gains and Charges [Abstract] | ||||
Gain Loss Related to Litigation | ($8,553) | $0 | ($2,753) | $0 |
Restaurant impairment charges | 0 | 0 | 747 | 1,285 |
Restaurant closure charges | 76 | 1,224 | 1,457 | 2,330 |
Gain loss on sale of assets | 0 | 0 | 1,093 | -579 |
Other Asset Impairment Charges | 0 | 0 | 175 | 0 |
Other Gains And Charges Other | 0 | 864 | 28 | 1,279 |
Other gains and charges | ($8,477) | $2,088 | $747 | $4,315 |
Other_Gains_and_Charges_Additi
Other Gains and Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 25, 2015 | Dec. 24, 2014 | Mar. 26, 2014 | Mar. 25, 2015 | Mar. 26, 2014 | |
Other Gains and Charges [Abstract] | |||||
Proceeds from Legal Settlements | $8,600,000 | ||||
Loss Contingency Accrual, Period Increase (Decrease) | 5,800,000 | ||||
Restaurant impairment charges | 0 | 0 | 747,000 | 1,285,000 | |
Other Asset Impairment Charges | 0 | 0 | 175,000 | 0 | |
Restaurant closure charges | 76,000 | 1,224,000 | 1,457,000 | 2,330,000 | |
Gain loss on sale of assets | $0 | $0 | $1,093,000 | ($579,000) |
Recovered_Sheet1
Accrued and Other Liabilities (Accrued Liabilities) (Details) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 | Mar. 26, 2014 |
In Thousands, unless otherwise specified | |||
ACCRUED AND OTHER LIABILITIES [Abstract] | |||
Gift Cards | $119,233 | $104,378 | |
Payroll | 81,800 | 77,585 | |
Litigation reserves | 1,185 | 39,500 | |
Sales Tax | 21,266 | 19,622 | |
Insurance | 20,160 | 20,652 | |
Property tax | 11,041 | 14,209 | |
Dividends Payable | 17,513 | 15,625 | 15,838 |
Other | 40,138 | 36,446 | |
Accrued Liabilities, Current | $312,336 | $328,017 |
Accrued_and_Other_Liabilities_1
Accrued and Other Liabilities (Other Liabilities) (Details) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
In Thousands, unless otherwise specified | ||
Accrued and Other Liabilities (Other Liabilities) [Abstract] | ||
Straight-line rent | $55,938 | $57,462 |
Insurance | 33,157 | 36,352 |
Landlord contributions | 25,410 | 23,404 |
Unrecognized tax benefits | 6,619 | 5,247 |
Other | 8,476 | 6,633 |
Other liabilities | $129,600 | $129,098 |
Recovered_Sheet2
FAIR VALUE MEASUREMENTS Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Details) (USD $) | 9 Months Ended | |
Mar. 25, 2015 | Mar. 26, 2014 | |
Restaurants | Restaurants | |
Fair Value Disclosure [Line Items] | ||
Goodwill, Impairment Loss | $0 | |
Carrying Value Of Impaired Long Lived Assets | 700,000 | 2,600,000 |
Number Of Underperforming Restaurants | 2 | 4 |
Fair Value Of Impaired Long Lived Assets | 0 | 1,342,000 |
Impairment of Long-Lived Assets Held-for-use | 700,000 | 1,300,000 |
Impairment of Intangible Assets, Finite-lived | 0 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Long Lived Assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Long Lived Assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Long Lived Assets | 0 | 1,342,000 |
Liquor Licenses [Member] | ||
Fair Value Disclosure [Line Items] | ||
Number of Impaired Indefinite-Lived Assets | 1 | |
Carrying Value Of Impaired Indefinite Lived Assets | 225,000 | |
Fair Value Of Impaired Indefinite Lived Assets | 50,000 | 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 175,000 | 0 |
Liquor Licenses [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Indefinite Lived Assets | 0 | 0 |
Liquor Licenses [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Indefinite Lived Assets | 50,000 | 0 |
Liquor Licenses [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair Value Of Impaired Indefinite Lived Assets | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional information (Detail) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
In Thousands, unless otherwise specified | ||
2.60% notes [Member] | ||
Fair Value Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
Senior Notes | $249,891 | $249,864 |
Long-term Debt, Fair Value | 251,163 | 250,400 |
3.88% notes [Member] | ||
Fair Value Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |
Senior Notes | 299,759 | 299,736 |
Long-term Debt, Fair Value | $299,328 | $290,211 |
Shareholders_Equity_Additional
Shareholder's Equity - Additional information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 26, 2015 | Mar. 25, 2015 | Mar. 26, 2014 | Mar. 25, 2015 | Mar. 26, 2014 | Jun. 25, 2014 | |
Stockholders' Equity Note [Abstract] | ||||||
Increase in share repurchase program | $350,000,000 | |||||
Shares repurchased, shares | 3,900,000 | |||||
Payments for Repurchase of Common Stock | 217,019,000 | 191,811,000 | ||||
Program shares repurchased, shares | 3,700,000 | |||||
Amount available under share repurchase authorizations | 449,700,000 | 449,700,000 | ||||
Stock option, granted | 235,000 | |||||
Stock option, weighted average exercise price | $49.56 | |||||
Stock option, weighted average fair value | $11.71 | |||||
Restricted share awards, granted | 262,000 | |||||
Restricted share awards, weighted average fair value | $50.40 | |||||
Stock option exercised, shares | 719,000 | |||||
Cash proceeds from stock option exercised | 14,965,000 | 24,574,000 | ||||
Excess tax benefits from stock-based compensation | 16,920,000 | 17,972,000 | ||||
Payments of dividends | 53,248,000 | 47,556,000 | ||||
Percentage increase in quarterly dividend declared | 17.00% | |||||
Dividends per share declared | $0.28 | $0.24 | $0.84 | $0.72 | ||
Dividends Payable | $17,513,000 | $15,838,000 | $17,513,000 | $15,838,000 | $15,625,000 | |
Dividends Payable, Date to be Paid | 26-Mar-15 |
Recovered_Sheet3
Supplemental Cash Flow Information - Cash Paid for Interest and Income Taxes (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes, net of refunds | $30,329 | $22,825 |
Interest, net of amounts capitalized | $15,230 | $14,640 |
Recovered_Sheet4
Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 25, 2015 | Mar. 26, 2014 | Jun. 25, 2014 |
Supplemental Cash Flow Information [Abstract] | |||
Retirement of fully depreciated assets | $32,061 | $49,601 | |
Dividends Payable | 17,513 | 15,838 | 15,625 |
Capital Expenditures Incurred but Not yet Paid | $3,357 | $5,262 |
Contingencies_Additional_infor
Contingencies - Additional information (Detail) (USD $) | Mar. 25, 2015 | Jun. 25, 2014 |
Guarantor Obligations [Line Items] | ||
Loss Contingency, Accrual, Current | $1,185,000 | $39,500,000 |
Letters of Credit Outstanding, Amount | 32,100,000 | |
Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Accrual, Current | 0 | |
Loss Contingency, Range of Possible Loss, Maximum | $104,700,000 | $116,500,000 |
Loss_Contingencies_Details
Loss Contingencies (Details) (USD $) | 3 Months Ended | |
Mar. 25, 2015 | Jun. 25, 2014 | |
Loss Contingencies [Line Items] | ||
Litigation reserves | $1,185,000 | $39,500,000 |
Loss Contingency, Pending Claims, Number | 0 | |
August 2004 California lawsuit [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual, Payments | 44,000,000 | |
Loss Contingency, Range of Possible Loss, Maximum | $56,500,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | |
Mar. 25, 2015 | Mar. 26, 2014 | 4-May-15 | Mar. 25, 2015 | |
Subsequent Event [Line Items] | ||||
Shares repurchased, shares | 3,900,000 | |||
Payments for Repurchase of Common Stock | $217,019,000 | $191,811,000 | ||
Treasury Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares repurchased, shares | 926,000 | |||
Payments for Repurchase of Common Stock | 56,200,000 | |||
$750 Million Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Lines of Credit | 345,800,000 | |||
$750 Million Revolving Credit Facility [Member] | $750 Million Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Lines of Credit | $30,000,000 |