Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 24, 2015 | Aug. 10, 2015 | Dec. 24, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | BRINKER INTERNATIONAL INC | ||
Entity Central Index Key | 703,351 | ||
Current Fiscal Year End Date | --06-24 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 24, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 60,105,325 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,497,359,922 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Revenues [Abstract] | |||
Company sales | $ 2,904,746 | $ 2,823,069 | $ 2,766,618 |
Franchise and other revenues | 97,532 | 86,426 | 83,100 |
Total revenues | 3,002,278 | 2,909,495 | 2,849,718 |
Operating Costs and Expenses: | |||
Cost of sales | 775,063 | 758,028 | 758,377 |
Restaurant labor | 929,206 | 905,589 | 892,413 |
Restaurant expenses | 703,334 | 686,314 | 658,834 |
Company restaurant expenses | 2,407,603 | 2,349,931 | 2,309,624 |
Depreciation and amortization | 145,242 | 136,081 | 131,481 |
General and administrative | 133,467 | 132,094 | 134,538 |
Other gains and charges | 4,764 | 49,224 | 17,300 |
Total operating costs and expenses | 2,691,076 | 2,667,330 | 2,592,943 |
Operating income | 311,202 | 242,165 | 256,775 |
Interest expense | 29,006 | 28,091 | 29,118 |
Other, net | (2,081) | (2,214) | (2,658) |
Income before provision for income taxes | 284,277 | 216,288 | 230,315 |
Provision for income taxes | 87,583 | 62,249 | 66,956 |
Net income | $ 196,694 | $ 154,039 | $ 163,359 |
Basic net income per share: | |||
Basic net income per share (in dollars per share) | $ 3.12 | $ 2.33 | $ 2.28 |
Diluted net income per share: | |||
Diluted net income per share (in dollars per share) | $ 3.05 | $ 2.26 | $ 2.20 |
Basic weighted average shares outstanding (in shares) | 63,072 | 66,251 | 71,788 |
Diluted weighted average shares outstanding (in shares) | 64,404 | 68,152 | 74,158 |
Other Comprehensive Income (Loss) | |||
Foreign Currency Translation Adjustment | $ (7,690) | $ (940) | $ 0 |
Other Comprehensive Loss | (7,690) | (940) | 0 |
Comprehensive Income | $ 189,004 | $ 153,099 | $ 163,359 |
Dividends per share | $ 1.12 | $ 0.96 | $ 0.80 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 55,121 | $ 57,685 |
Accounts receivable, net | 46,588 | 47,850 |
Inventories | 23,035 | 23,643 |
Prepaid expenses and other | 62,480 | 65,506 |
Deferred income taxes | 2,493 | 16,170 |
Total current assets | 189,717 | 210,854 |
Property and Equipment: | ||
Land | 147,763 | 149,184 |
Buildings and leasehold improvements | 1,546,957 | 1,483,894 |
Furniture and equipment | 618,084 | 593,344 |
Construction-in-progress | 15,001 | 32,844 |
Gross property and equipment | 2,327,805 | 2,259,266 |
Less accumulated depreciation and amortization | (1,295,761) | (1,202,812) |
Net property and equipment | 1,032,044 | 1,056,454 |
Other Assets: | ||
Goodwill | 132,381 | 133,434 |
Deferred income taxes | 30,644 | 30,090 |
Intangibles | 16,642 | 18,841 |
Other | 34,445 | 40,931 |
Total other assets | 214,112 | 223,296 |
Total assets | 1,435,873 | 1,490,604 |
Current Liabilities: | ||
Current installments of long-term debt | 3,439 | 27,884 |
Accounts payable | 92,947 | 102,931 |
Gift card liability | 114,726 | 104,378 |
Accrued payroll | 82,915 | 77,585 |
Other accrued liabilities | 111,197 | 146,054 |
Income taxes payable | 13,251 | 7,278 |
Total current liabilities | 418,475 | 466,110 |
Long-term debt, less current installments | 970,825 | 832,302 |
Other liabilities | $ 125,033 | $ 129,098 |
Commitments and Contingencies (Notes 9 and 14) | ||
Shareholders’ (Deficit) Equity: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 60,585,608 shares outstanding at June 24, 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 | 490,111 | 484,320 |
Accumulated other comprehensive loss | (8,630) | (940) |
Retained earnings | 2,431,683 | 2,306,532 |
Shareholders' equity including treasury stock | 2,930,789 | 2,807,537 |
Less treasury stock, at cost (115,661,041 shares at June 24, 2015 and 111,687,740 shares at June 25, 2014) | (3,009,249) | (2,744,443) |
Total shareholders’ (deficit) equity | (78,460) | 63,094 |
Total liabilities and shareholders’ (deficit) equity | $ 1,435,873 | $ 1,490,604 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 24, 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 | 60,585,608 | 64,558,909 |
Treasury stock, shares | 115,661,041 | 111,687,740 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, shares at Jun. 27, 2012 | 74,342,000 | |||||
Balance at Jun. 27, 2012 | $ 309,873 | $ 17,625 | $ 466,781 | $ 2,112,858 | $ (2,287,391) | $ 0 |
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, shares at Jun. 26, 2013 | 67,444,000 | |||||
Balance at Jun. 26, 2013 | 149,357 | $ 17,625 | 477,420 | 2,217,623 | (2,563,311) | 0 |
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, shares at Jun. 25, 2014 | 64,558,909 | 64,559,000 | ||||
Balance at Jun. 25, 2014 | $ 63,094 | $ 17,625 | 484,320 | 2,306,532 | (2,744,443) | (940) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 196,694 | 0 | 0 | 196,694 | 0 | 0 |
Other Comprehensive Loss | (7,690) | 0 | 0 | 0 | 0 | (7,690) |
Dividends | (71,543) | 0 | 0 | (71,543) | 0 | 0 |
Stock-based compensation | 14,989 | 0 | 14,989 | 0 | 0 | 0 |
Purchases of treasury stock | (306,255) | $ 0 | (4,804) | 0 | (301,451) | 0 |
Purchases of treasury stock, shares | (5,445,000) | |||||
Issuances of common stock | 16,259 | $ 0 | (20,386) | 0 | 36,645 | 0 |
Issuances of common stock, shares | 1,472,000 | |||||
Excess tax benefit from stock-based compensation | $ 15,992 | $ 0 | 15,992 | 0 | 0 | 0 |
Balance, shares at Jun. 24, 2015 | 60,585,608 | 60,586,000 | ||||
Balance at Jun. 24, 2015 | $ (78,460) | $ 17,625 | $ 490,111 | $ 2,431,683 | $ (3,009,249) | $ (8,630) |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Dividends per share | $ 1.12 | $ 0.96 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Cash Flows from Operating Activities: | |||
Net income | $ 196,694 | $ 154,039 | $ 163,359 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 145,242 | 136,081 | 131,481 |
Litigation reserves | 0 | 39,500 | 0 |
Restructure charges and other impairments | 5,636 | 8,533 | 11,425 |
Deferred income taxes | 13,140 | (23,041) | (4,793) |
Net loss (gain) on disposal of assets | 4,523 | 5,161 | (6,905) |
Stock-based compensation | 14,802 | 16,074 | 15,909 |
(Gain) loss on equity investments | (368) | (328) | 851 |
Other | 250 | 707 | 363 |
Changes in assets and liabilities: | |||
Accounts receivable | 1,932 | (5,372) | 5,398 |
Inventories | 475 | 912 | 908 |
Prepaid expenses and other | 4,368 | 1,827 | 82 |
Intangibles and other assets | (2,140) | (3,397) | (4,115) |
Current income taxes | 6,284 | 14,087 | 749 |
Accounts payable | 1,117 | 3,756 | (9,339) |
Accrued liabilities | (22,595) | 14,617 | (9,381) |
Other liabilities | (749) | (3,314) | (5,304) |
Net cash provided by operating activities | 368,611 | 359,842 | 290,688 |
Cash Flows from Investing Activities: | |||
Payments for property and equipment | (140,262) | (161,066) | (131,531) |
Proceeds from sale of assets | 1,950 | 888 | 17,157 |
Payments for purchase of restaurants | 0 | 0 | (24,622) |
Insurance recoveries | 0 | 0 | 1,152 |
Net cash used in investing activities | (138,312) | (160,178) | (137,844) |
Cash Flows from Financing Activities: | |||
Borrowings on revolving credit facility | 480,750 | 120,000 | 110,000 |
Purchases of treasury stock | (306,255) | (239,597) | (333,384) |
Payments on long-term debt | (189,177) | (26,521) | (316,380) |
Payments on revolving credit facility | (177,000) | (40,000) | (150,000) |
Payments of dividends | (70,832) | (63,395) | (56,343) |
Proceeds from issuances of treasury stock | 16,259 | 29,295 | 41,190 |
Excess tax benefits from stock-based compensation | 15,893 | 18,872 | 8,778 |
Payments for deferred financing costs | (2,501) | 0 | (5,969) |
Proceeds from issuance of long-term debt | 0 | 0 | 549,528 |
Net cash used in financing activities | (232,863) | (201,346) | (152,580) |
Net change in cash and cash equivalents | (2,564) | (1,682) | 264 |
Cash and cash equivalents at beginning of year | 57,685 | 59,367 | 59,103 |
Cash and cash equivalents at end of year | $ 55,121 | $ 57,685 | $ 59,367 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 , we owned, operated, or franchised 1,629 restaurants in the United States and 29 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 2015 , 2014 , and 2013 which ended on June 24, 2015 , June 25, 2014 , and June 27, 2013 , respectively, each contained 52 weeks. 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' (deficit) equity. We corrected the error by adjusting the previously reported consolidated statements of comprehensive income for the fifty-two week periods ended June 25, 2014 and June 27, 2013, which resulted in a $4.0 million , and a $3.6 million increase in franchise and other revenues and restaurant expenses, respectively. 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), tabletop gaming revenue, retail food royalties and delivery fee income. 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, using the first-in, first-out or "FIFO" method. (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 certain 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 discounted projected 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 lease term. (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 $94.3 million , $92.2 million and $82.8 million million in fiscal 2015 , 2014 , and 2013 , 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 and economic characteristics within and across our operating segments are 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 discounted projected 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 2015 . 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. (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. (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. 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 $15.0 million , $16.9 million and $16.6 million for fiscal 2015 , 2014 and 2013 , respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income related to stock-based compensation expense was approximately $5.5 million , $6.9 million and $6.6 million during fiscal 2015 , 2014 and 2013 , respectively. The weighted average fair values of option grants were $ 11.72 , $ 14.75 and $ 12.94 during fiscal 2015 , 2014 and 2013 , respectively. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: 2015 2014 2013 Expected volatility 31.0 % 47.7 % 53.4 % Risk-free interest rate 1.6 % 1.6 % 0.7 % Expected lives 5 years 5 years 5 years Dividend yield 2.2 % 2.2 % 2.4 % 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 24, 2015 , no preferred shares were issued. (s) Shareholders’ (Deficit) Equity In August 2014 , our Board of Directors authorized a $ 350.0 million increase to our existing share repurchase program resulting in total authorizations of $3,935.0 million. We repurchased approximately 5.4 million shares of our common stock for $ 306.3 million during fiscal 2015 including shares purchased as part of our share repurchase program and to satisfy team member tax withholding obligations on the vesting of restricted shares. As of June 24, 2015 , approximately $ 361 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 2015 , approximately 765,000 stock options were exercised resulting in cash proceeds of $ 16.3 million . We paid dividends of $ 70.8 million to common stock shareholders during fiscal 2015 , compared to $ 63.4 million in the prior year. Additionally, we declared a quarterly dividend of approximately $ 17.0 million , or $ 0.28 per share, in May 2015 which was paid on June 25, 2015 . (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 2015 and 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 and the joint venture with CMR 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. Fiscal 2013 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 119,000 stock options and restricted share awards outstanding at June 24, 2015 , 113,000 stock options and restricted share awards outstanding at June 25, 2014 , and 193,000 stock options and restricted share awards outstanding at June 27, 2013 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): 2015 2014 2013 Basic weighted average shares outstanding 63,072 66,251 71,788 Dilutive stock options 569 853 955 Dilutive restricted shares 763 1,048 1,415 1,332 1,901 2,370 Diluted weighted average shares outstanding 64,404 68,152 74,158 (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. 24, 2015 | |
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 based on a preliminary estimate. During fiscal 2014, we completed the valuation of the assets and liabilities resulting in an adjustment of approximately $8.4 million to goodwill. The excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill. The majority of the goodwill balance is 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 DISPOSITI
INVESTMENTS AND OTHER DISPOSITIONS | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 , 38 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. In April 2012, we purchased BTTO’s interest in the joint venture 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. 24, 2015 | |
Disclosure Other Gains And Charges [Abstract] | |
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): 2015 2014 2013 Litigation $ (2,753 ) $ 39,500 $ 0 Restaurant impairment charges 2,255 4,502 5,276 Restaurant closure charges 1,736 3,413 3,637 Severance and other benefits 1,182 2,140 2,235 Acquisition costs 1,100 0 0 Loss (gain) on the sale of assets, net 1,093 (608 ) (11,228 ) Impairment of franchise rights 440 0 0 Impairment of liquor licenses 205 0 170 Loss on extinguishment of debt 0 0 15,768 Other (494 ) 277 1,442 $ 4,764 $ 49,224 $ 17,300 During fiscal 2015, 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 recognized a gain of approximately $8.6 million . During fiscal 2015, the class action lawsuit styled as Hohnbaum, et al. v. Brinker Restaurant Corp., et al. ("Hohnbaum case") was finalized resulting in an additional charge of approximately $5.8 million to adjust our previous estimate of the final settlement amount. See Note 14 for additional disclosures. We recorded restaurant impairment charges of $2.3 million related to underperforming restaurants that either continue to operate or are scheduled to close. We also recorded restaurant closure charges of $1.7 million primarily related to lease termination charges and a $1.1 million loss primarily related to the sale of two company owned restaurants located in Mexico. Furthermore, we incurred $1.2 million in severance other benefits related to organizational changes made during the fiscal year. The severance charges include expense related to the accelerated vesting of stock-based compensation awards. We also incurred expenses of approximately $1.1 million during fiscal 2015 related to the acquisition of a franchisee which owns 103 Chili's restaurants subsequent to the end of the year. See Note 16 for additional disclosures. Other gains and charges in fiscal 2014 includes charges of approximately $39.5 million related to various litigation matters including the Hohnbaum case. 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 organizational 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. 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, consisting of 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. The restaurant, liquor license and reacquired franchise rights impairment charges were measured as the excess of the carrying amount over the fair value. See Note 10 for fair value disclosures related to these impairment charges. |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Balance at beginning of year: Goodwill $ 196,268 $ 204,937 Accumulated impairment losses(a) (62,834 ) (62,834 ) 133,434 142,103 Changes in goodwill: Adjustments(b) 0 (8,387 ) Foreign currency translation adjustment (1,053 ) (282 ) Balance at end of year: Goodwill 195,215 196,268 Accumulated impairment losses (62,834 ) (62,834 ) $ 132,381 $ 133,434 ____________________________________________________________________ (a) The impairment losses recorded in prior years are related to restaurant brands that we no longer own. (b) The valuation of assets and liabilities related to the acquired Canadian restaurants was finalized during fiscal 2014 resulting in an adjustment of approximately $8.4 million to goodwill. Intangible assets, net for the fiscal years ended June 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights (a) $ 7,423 $ (1,625 ) $ 5,798 $ 9,107 $ (1,121 ) $ 7,986 Other 804 (358 ) 446 872 (292 ) 580 $ 8,227 $ (1,983 ) $ 6,244 $ 9,979 $ (1,413 ) $ 8,566 Indefinite-lived intangible assets Liquor licenses $ 10,398 $ 10,275 Amortization expense for all definite-lived intangible assets was $0.8 million , $1.0 million and $0.2 million in fiscal 2015, 2014 and 2013, respectively. Amortization expense for definite-lived intangible assets will approximate $0.9 million for the next five fiscal years. ____________________________________________________________________ (a) The gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $1.0 million . Additionally, we recorded an impairment charge of $0.4 million in fiscal 2015 to write down the Brinker Canada franchise rights. See Note 10 for additional disclosures. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Jun. 24, 2015 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): 2015 2014 Sales tax 20,308 19,622 Insurance 22,658 20,652 Property tax 14,224 14,209 Dividends 16,961 15,625 Litigation reserves 0 39,500 Other 37,046 36,446 $ 111,197 $ 146,054 Other liabilities consist of the following (in thousands): 2015 2014 Straight-line rent $ 56,345 $ 57,462 Insurance 30,988 36,352 Landlord contributions 24,785 23,404 Unrecognized tax benefits 5,144 5,247 Other 7,771 6,633 $ 125,033 $ 129,098 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 24, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following (in thousands): 2015 2014 2013 Current income tax expense: Federal $ 59,726 $ 66,170 $ 46,852 State 11,862 15,219 11,800 Foreign 3,319 3,550 2,879 Total current income tax expense 74,907 84,939 61,531 Deferred income tax (benefit) expense: Federal 10,754 (18,715 ) 7,344 State 2,018 (4,087 ) (1,919 ) Foreign (96 ) 112 0 Total deferred income tax (benefit) expense 12,676 (22,690 ) 5,425 $ 87,583 $ 62,249 $ 66,956 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): 2015 2014 2013 Income tax expense at statutory rate $ 99,497 $ 75,701 $ 80,610 FICA tax credit (18,633 ) (18,116 ) (16,450 ) State income taxes, net of Federal benefit 8,646 7,636 6,368 Other (1,927 ) (2,972 ) (3,572 ) $ 87,583 $ 62,249 $ 66,956 The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Deferred income tax assets: Leasing transactions $ 38,858 $ 40,085 Stock-based compensation 13,105 13,698 Restructure charges and impairments 2,303 16,726 Insurance reserves 18,567 18,550 Employee benefit plans 470 404 Gift cards 18,499 15,497 Other, net 9,804 8,975 Total deferred income tax assets 101,606 113,935 Deferred income tax liabilities: Prepaid expenses 16,803 16,462 Goodwill and other amortization 27,713 26,551 Depreciation and capitalized interest on property and equipment 19,990 20,982 Other, net 3,963 3,680 Total deferred income tax liabilities 68,469 67,675 Net deferred income tax asset $ 33,137 $ 46,260 A reconciliation of unrecognized tax benefits for the fiscal years ended June 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Balance at beginning of year $ 7,375 $ 6,388 Additions based on tax positions related to the current year 760 1,582 Additions based on tax positions related to prior years 18 347 Settlements with tax authorities (371 ) (339 ) Expiration of statute of limitations (1,694 ) (603 ) Balance at end of year $ 6,088 $ 7,375 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 $4.1 million and $4.9 million as of June 24, 2015 and June 25, 2014 , 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 $0.8 million ( $0.6 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 2015, we recognized an expense of approximately $0.2 million in interest. During fiscal 2014 and 2013, we recognized a benefit of approximately $0.3 million and an expense of $0.5 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 24, 2015 , we had $2.2 million ( $1.5 million net of a $0.7 million Federal deferred tax benefit) of interest and penalties accrued, compared to $2.5 million ( $1.7 million net of a $0.8 million Federal deferred tax benefit) at June 25, 2014 . |
DEBT
DEBT | 12 Months Ended |
Jun. 24, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consists of the following (in thousands): 2015 2014 3.88% notes $ 299,766 $ 299,736 2.60% notes 249,899 249,864 Term loan 0 187,500 Revolving credit facility 383,750 80,000 Capital lease obligations (see Note 9) 40,849 43,086 974,264 860,186 Less current installments (3,439 ) (27,884 ) $ 970,825 $ 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. During the fourth quarter of fiscal 2015, an additional $38.0 million was drawn from the new revolver primarily to fund share repurchases. Subsequent to the end of the fiscal year, an additional $135.5 million was borrowed from the $750 million revolving credit facility primarily to fund the acquisition of a franchisee which owns 103 Chili's restaurants. See Note 16 for additional disclosures related to the acquisition. 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 June 24, 2015 was approximately 0.19% . As of June 24, 2015 , $366.2 million of credit is available under the revolving credit facility. 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 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 24, 2015 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2016 $ 0 2017 0 2018 249,899 2019 0 2020 383,750 Thereafter 299,766 $ 933,415 |
LEASES
LEASES | 12 Months Ended |
Jun. 24, 2015 | |
Leases [Abstract] | |
LEASES | LEASES (a) Capital Leases We lease certain buildings under capital leases. The asset value of $39.0 million at June 24, 2015 and June 25, 2014 , and the related accumulated amortization of $22.1 million and $20.1 million at June 24, 2015 and June 25, 2014 , 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. The majority having terms expiring at various dates through fiscal 2031. The restaurant leases have cumulative 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): 2015 2014 2013 Straight-lined minimum rent $ 92,917 $ 90,574 $ 88,773 Contingent rent 4,774 4,737 3,637 Other 9,998 9,817 9,296 Total rent expense $ 107,689 $ 105,128 $ 101,706 (c) Commitments As of June 24, 2015 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2016 $ 6,050 $ 113,511 2017 5,953 94,405 2018 5,764 70,531 2019 5,202 50,991 2020 4,853 39,736 Thereafter 32,114 114,526 Total minimum lease payments(a) 59,936 $ 483,700 Imputed interest (average rate of 7%) (19,087 ) Present value of minimum lease payments 40,849 Less current installments (3,439 ) $ 37,410 ____________________________________________________________________ (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 $34.9 million and $37.4 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Jun. 24, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES (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 the fair value of property and equipment based on discounted projected 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 $2.3 million , primarily related to four underperforming restaurants including one restaurant located in Canada, were determined to have no fair value resulting in an impairment charge of $2.3 million . 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 . We determine the fair value of transferable liquor licenses based on prices in the open market for licenses in the same or similar jurisdictions. Based on our semi-annual review, during fiscal 2015, four transferable liquor licenses with a carrying value of $0.8 million were written down to the fair value of $0.6 million resulting in an impairment charge of $0.2 million . In fiscal 2014, we determined there was no impairment. We determine the fair value of reacquired franchise rights based on discounted projected future operating cash flows of the restaurants associated with these franchise rights. We review the carrying amount 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. During fiscal 2015, we performed the annual review of reacquired franchise rights and determined there was no impairment. Subsequent to the annual review, we performed the semi-annual review of long-lived assets and determined that one restaurant located in Canada was fully impaired which indicated that the related reacquired franchise rights had no fair value resulting in an impairment charge of $0.4 million . 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. All impairment charges related to underperforming restaurants, liquor licenses and reacquired franchise rights 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 June 24, 2015 and June 25, 2014 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 24, 2015 $ 0 $ 0 $ 0 $ 0 At June 25, 2014 $ 0 $ 0 $ 1,342 $ 1,342 Liquor licenses: At June 24, 2015 $ 0 $ 550 $ 0 $ 550 At June 25, 2014 $ 0 $ 0 $ 0 $ 0 Reacquired franchise rights: At June 24, 2015 $ 0 $ 0 $ 0 $ 0 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 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): June 24, 2015 June 25, 2014 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,899 $ 250,583 $ 249,864 $ 250,400 3.88% Notes $ 299,766 $ 290,706 $ 299,736 $ 290,211 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 24, 2015 | |
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 2015 were as follows (in thousands, except option prices): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Options outstanding at June 25, 2014 1,701 $ 24.80 Granted 279 51.24 Exercised (765 ) 21.25 Forfeited or canceled (42 ) 34.45 Options outstanding at June 24, 2015 1,173 $ 33.08 4.8 $ 28,849 Options exercisable at June 24, 2015 624 $ 24.06 3.4 $ 20,907 At June 24, 2015 , unrecognized compensation expense related to stock options totaled approximately $2.5 million and will be recognized over a weighted average period of 1.8 years. The intrinsic value of options exercised totaled approximately $28.1 million , $25.7 million and $22.4 million during fiscal 2015 , 2014 and 2013 , respectively. The tax benefit realized on options exercised totaled approximately $9.2 million , $8.9 million and $8.1 million during fiscal 2015 , 2014 and 2013 , 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 2015 were as follows (in thousands, except fair values): Number of Restricted Share Awards Weighted Average Fair Value Per Award Restricted share awards outstanding at June 25, 2014 1,508 $ 29.39 Granted 282 50.71 Vested (567 ) 20.68 Forfeited (64 ) 36.58 Restricted share awards outstanding at June 24, 2015 1,159 $ 38.44 At June 24, 2015 , unrecognized compensation expense related to restricted share awards totaled approximately $13.7 million and will be recognized over a weighted average period of 2.3 years. The fair value of shares that vested during fiscal 2015 , 2014 , and 2013 totaled approximately $34.2 million , $42.2 million and $22.0 million , respectively. |
SAVINGS PLANS
SAVINGS PLANS | 12 Months Ended |
Jun. 24, 2015 | |
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 2015 , 2014 , and 2013 , we contributed approximately $8.0 million , $7.4 million , and $7.2 million , respectively. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Jun. 24, 2015 | |
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): 2015 2014 2013 Income taxes, net of refunds $ 50,437 $ 48,379 $ 60,291 Interest, net of amounts capitalized (a) 26,190 25,476 41,504 ____________________________________________________________________ (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): 2015 2014 2013 Retirement of fully depreciated assets $ 40,775 $ 64,420 $ 55,427 Dividends declared but not paid 18,132 17,250 15,263 Accrued capital expenditures 4,109 15,703 9,854 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 and June 25, 2014 , we have outstanding lease guarantees or are secondarily liable for $98.9 million and $116.5 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 2016 through fiscal 2025. 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. Our secondary liability position will be reduced by approximately $19.0 million in the first quarter of fiscal 2016 related to the Pepper Dining acquisition. See Note 16 for additional disclosures related to the acquisition. We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of June 24, 2015 , we had $32.1 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually. 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 expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Jun. 24, 2015 | |
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 2015 and 2014 (in thousands, except per share amounts): Fiscal Year 2015 Quarters Ended Sept. 24 Dec. 24 March 25 June 24 Revenues $ 711,018 $ 742,898 $ 784,215 $ 764,147 Income before provision for income taxes $ 47,814 $ 58,744 $ 96,316 $ 81,403 Net income $ 32,738 $ 41,306 $ 65,427 $ 57,223 Basic net income per share $ 0.51 $ 0.65 $ 1.04 $ 0.94 Diluted net income per share $ 0.49 $ 0.64 $ 1.02 $ 0.92 Basic weighted average shares outstanding 64,668 63,590 62,891 61,132 Diluted weighted average shares outstanding 66,263 64,963 64,091 62,294 Fiscal Year 2014 Quarters Ended Sept. 25 Dec. 25 March 26 June 25 Revenues $ 684,660 $ 705,662 $ 759,293 $ 759,880 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 Net income for fiscal 2015 included a net gain of $2.8 million related to litigation which included antitrust litigation settlement proceeds of $8.6 million , partially offset by a charge of $5.8 million to adjust our previous reserve estimate of final settlement amounts related to various litigation matters. We recorded a charge of $1.1 million in the fourth quarter of fiscal 2015 for acquisition costs incurred prior to completing the acquisition of a franchisee which owns 103 Chili's restaurants. Long-lived asset impairment of $0.7 million and $1.5 million were recorded in the second and fourth quarters, respectively. Additionally, net income included lease termination charges of $0.9 million , $0.5 million and $0.5 million in the first, second and fourth quarters of fiscal 2015 related to restaurants closed in the current year. Severance charges of $0.3 million and $0.9 million were incurred in the second and fourth quarters of fiscal 2015. 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. |
SUBSEQUENT EVENTS SUBSEQUENT EV
SUBSEQUENT EVENTS SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 24, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On June 25, 2015 , we completed the acquisition of Pepper Dining Holding Corp. ("Pepper Dining"), a franchisee of 103 Chili’s® Grill & Bar restaurants primarily located in the Northeast and Southeast United States. The purchase price of $106.5 million was funded with availability under our existing credit facility. The results of operations of these restaurants will be included in our consolidated financial statements from the date of acquisition beginning in fiscal 2016. The acquired restaurants are expected to generate approximately $2.6 million of average annual revenue per restaurant in fiscal 2016 which will be partially offset by the loss of average annual royalty revenues of approximately $104,000 per restaurant. We are in the process of evaluating the fair value of the assets and liabilities acquired through internal studies and third-party valuations and expect to complete a preliminary purchase price allocation in the first quarter of fiscal 2016. Subsequent to the end of the fiscal year, an additional $135.5 million was borrowed from the $750 million revolving credit facility primarily to fund the acquisition of Pepper Dining. Subsequent to the end of the fiscal year, we repurchased 766,000 shares for approximately $44.0 million as part of our share repurchase program. We also repurchased approximately 74,000 shares for $4.1 million to satisfy team member tax withholding obligations on the vesting of primarily performance shares. On August 20, 2015, our Board of Directors declared a quarterly dividend of $0.32 per share effective with the September 2015 dividend. Our Board of Directors also authorized an additional $250 million in share repurchases, bringing the total authorization to $4,185 million . |
NATURE OF OPERATIONS AND SUMM24
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 , we owned, operated, or franchised 1,629 restaurants in the United States and 29 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 2015 , 2014 , and 2013 which ended on June 24, 2015 , June 25, 2014 , and June 27, 2013 , respectively, each contained 52 weeks. 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' (deficit) equity. We corrected the error by adjusting the previously reported consolidated statements of comprehensive income for the fifty-two week periods ended June 25, 2014 and June 27, 2013, which resulted in a $4.0 million , and a $3.6 million increase in franchise and other revenues and restaurant expenses, respectively. 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), tabletop gaming revenue, retail food royalties and delivery fee income. 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, using the first-in, first-out or "FIFO" method. |
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 certain 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 discounted projected 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 lease term. |
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 $94.3 million , $92.2 million and $82.8 million million in fiscal 2015 , 2014 , and 2013 , 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 and economic characteristics within and across our operating segments are 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 discounted projected 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 2015 . 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. |
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. 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 24, 2015 , no preferred shares were issued. |
Shareholders' Equity | (s) Shareholders’ (Deficit) Equity In August 2014 , our Board of Directors authorized a $ 350.0 million increase to our existing share repurchase program resulting in total authorizations of $3,935.0 million. We repurchased approximately 5.4 million shares of our common stock for $ 306.3 million during fiscal 2015 including shares purchased as part of our share repurchase program and to satisfy team member tax withholding obligations on the vesting of restricted shares. As of June 24, 2015 , approximately $ 361 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 2015 , approximately 765,000 stock options were exercised resulting in cash proceeds of $ 16.3 million . We paid dividends of $ 70.8 million to common stock shareholders during fiscal 2015 , compared to $ 63.4 million in the prior year. Additionally, we declared a quarterly dividend of approximately $ 17.0 million , or $ 0.28 per share, in May 2015 which was paid on June 25, 2015 . |
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 2015 and 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 and the joint venture with CMR 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. Fiscal 2013 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 119,000 stock options and restricted share awards outstanding at June 24, 2015 , 113,000 stock options and restricted share awards outstanding at June 25, 2014 , and 193,000 stock options and restricted share awards outstanding at June 27, 2013 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 SUMM25
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
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: 2015 2014 2013 Expected volatility 31.0 % 47.7 % 53.4 % Risk-free interest rate 1.6 % 1.6 % 0.7 % Expected lives 5 years 5 years 5 years Dividend yield 2.2 % 2.2 % 2.4 % 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): 2015 2014 2013 Basic weighted average shares outstanding 63,072 66,251 71,788 Dilutive stock options 569 853 955 Dilutive restricted shares 763 1,048 1,415 1,332 1,901 2,370 Diluted weighted average shares outstanding 64,404 68,152 74,158 |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Disclosure Other Gains And Charges [Abstract] | |
Schedule Of Other Gains And Charges | Other gains and charges consist of the following (in thousands): 2015 2014 2013 Litigation $ (2,753 ) $ 39,500 $ 0 Restaurant impairment charges 2,255 4,502 5,276 Restaurant closure charges 1,736 3,413 3,637 Severance and other benefits 1,182 2,140 2,235 Acquisition costs 1,100 0 0 Loss (gain) on the sale of assets, net 1,093 (608 ) (11,228 ) Impairment of franchise rights 440 0 0 Impairment of liquor licenses 205 0 170 Loss on extinguishment of debt 0 0 15,768 Other (494 ) 277 1,442 $ 4,764 $ 49,224 $ 17,300 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Balance at beginning of year: Goodwill $ 196,268 $ 204,937 Accumulated impairment losses(a) (62,834 ) (62,834 ) 133,434 142,103 Changes in goodwill: Adjustments(b) 0 (8,387 ) Foreign currency translation adjustment (1,053 ) (282 ) Balance at end of year: Goodwill 195,215 196,268 Accumulated impairment losses (62,834 ) (62,834 ) $ 132,381 $ 133,434 ____________________________________________________________________ (a) The impairment losses recorded in prior years are related to restaurant brands that we no longer own. (b) The valuation of assets and liabilities related to the acquired Canadian restaurants was finalized during fiscal 2014 resulting in an adjustment of approximately $8.4 million to goodwill. |
Schedule of Intangible Assets | Intangible assets, net for the fiscal years ended June 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights (a) $ 7,423 $ (1,625 ) $ 5,798 $ 9,107 $ (1,121 ) $ 7,986 Other 804 (358 ) 446 872 (292 ) 580 $ 8,227 $ (1,983 ) $ 6,244 $ 9,979 $ (1,413 ) $ 8,566 Indefinite-lived intangible assets Liquor licenses $ 10,398 $ 10,275 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): 2015 2014 Sales tax 20,308 19,622 Insurance 22,658 20,652 Property tax 14,224 14,209 Dividends 16,961 15,625 Litigation reserves 0 39,500 Other 37,046 36,446 $ 111,197 $ 146,054 |
Other Liabilities | Other liabilities consist of the following (in thousands): 2015 2014 Straight-line rent $ 56,345 $ 57,462 Insurance 30,988 36,352 Landlord contributions 24,785 23,404 Unrecognized tax benefits 5,144 5,247 Other 7,771 6,633 $ 125,033 $ 129,098 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes From Continuing Operations | The provision for income taxes consists of the following (in thousands): 2015 2014 2013 Current income tax expense: Federal $ 59,726 $ 66,170 $ 46,852 State 11,862 15,219 11,800 Foreign 3,319 3,550 2,879 Total current income tax expense 74,907 84,939 61,531 Deferred income tax (benefit) expense: Federal 10,754 (18,715 ) 7,344 State 2,018 (4,087 ) (1,919 ) Foreign (96 ) 112 0 Total deferred income tax (benefit) expense 12,676 (22,690 ) 5,425 $ 87,583 $ 62,249 $ 66,956 |
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): 2015 2014 2013 Income tax expense at statutory rate $ 99,497 $ 75,701 $ 80,610 FICA tax credit (18,633 ) (18,116 ) (16,450 ) State income taxes, net of Federal benefit 8,646 7,636 6,368 Other (1,927 ) (2,972 ) (3,572 ) $ 87,583 $ 62,249 $ 66,956 |
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 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Deferred income tax assets: Leasing transactions $ 38,858 $ 40,085 Stock-based compensation 13,105 13,698 Restructure charges and impairments 2,303 16,726 Insurance reserves 18,567 18,550 Employee benefit plans 470 404 Gift cards 18,499 15,497 Other, net 9,804 8,975 Total deferred income tax assets 101,606 113,935 Deferred income tax liabilities: Prepaid expenses 16,803 16,462 Goodwill and other amortization 27,713 26,551 Depreciation and capitalized interest on property and equipment 19,990 20,982 Other, net 3,963 3,680 Total deferred income tax liabilities 68,469 67,675 Net deferred income tax asset $ 33,137 $ 46,260 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits for the fiscal years ended June 24, 2015 and June 25, 2014 are as follows (in thousands): 2015 2014 Balance at beginning of year $ 7,375 $ 6,388 Additions based on tax positions related to the current year 760 1,582 Additions based on tax positions related to prior years 18 347 Settlements with tax authorities (371 ) (339 ) Expiration of statute of limitations (1,694 ) (603 ) Balance at end of year $ 6,088 $ 7,375 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): 2015 2014 3.88% notes $ 299,766 $ 299,736 2.60% notes 249,899 249,864 Term loan 0 187,500 Revolving credit facility 383,750 80,000 Capital lease obligations (see Note 9) 40,849 43,086 974,264 860,186 Less current installments (3,439 ) (27,884 ) $ 970,825 $ 832,302 |
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 24, 2015 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2016 $ 0 2017 0 2018 249,899 2019 0 2020 383,750 Thereafter 299,766 $ 933,415 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense consists of the following (in thousands): 2015 2014 2013 Straight-lined minimum rent $ 92,917 $ 90,574 $ 88,773 Contingent rent 4,774 4,737 3,637 Other 9,998 9,817 9,296 Total rent expense $ 107,689 $ 105,128 $ 101,706 |
Future Minimum Lease Payments | As of June 24, 2015 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2016 $ 6,050 $ 113,511 2017 5,953 94,405 2018 5,764 70,531 2019 5,202 50,991 2020 4,853 39,736 Thereafter 32,114 114,526 Total minimum lease payments(a) 59,936 $ 483,700 Imputed interest (average rate of 7%) (19,087 ) Present value of minimum lease payments 40,849 Less current installments (3,439 ) $ 37,410 ____________________________________________________________________ (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 $34.9 million and $37.4 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
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 24, 2015 and June 25, 2014 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 24, 2015 $ 0 $ 0 $ 0 $ 0 At June 25, 2014 $ 0 $ 0 $ 1,342 $ 1,342 Liquor licenses: At June 24, 2015 $ 0 $ 550 $ 0 $ 550 At June 25, 2014 $ 0 $ 0 $ 0 $ 0 Reacquired franchise rights: At June 24, 2015 $ 0 $ 0 $ 0 $ 0 At June 25, 2014 $ 0 $ 0 $ 8,860 $ 8,860 |
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): June 24, 2015 June 25, 2014 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,899 $ 250,583 $ 249,864 $ 250,400 3.88% Notes $ 299,766 $ 290,706 $ 299,736 $ 290,211 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Stock Options | |
Transactions During Fiscal 2015 | Transactions during fiscal 2015 were as follows (in thousands, except option prices): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Options outstanding at June 25, 2014 1,701 $ 24.80 Granted 279 51.24 Exercised (765 ) 21.25 Forfeited or canceled (42 ) 34.45 Options outstanding at June 24, 2015 1,173 $ 33.08 4.8 $ 28,849 Options exercisable at June 24, 2015 624 $ 24.06 3.4 $ 20,907 |
Restricted Share Award | |
Transactions During Fiscal 2015 | Transactions during fiscal 2015 were as follows (in thousands, except fair values): Number of Restricted Share Awards Weighted Average Fair Value Per Award Restricted share awards outstanding at June 25, 2014 1,508 $ 29.39 Granted 282 50.71 Vested (567 ) 20.68 Forfeited (64 ) 36.58 Restricted share awards outstanding at June 24, 2015 1,159 $ 38.44 |
SUPPLEMENTAL CASH FLOW INFORM34
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid For Interest And Income Taxes | Cash paid for interest and income taxes is as follows (in thousands): 2015 2014 2013 Income taxes, net of refunds $ 50,437 $ 48,379 $ 60,291 Interest, net of amounts capitalized (a) 26,190 25,476 41,504 ____________________________________________________________________ (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): 2015 2014 2013 Retirement of fully depreciated assets $ 40,775 $ 64,420 $ 55,427 Dividends declared but not paid 18,132 17,250 15,263 Accrued capital expenditures 4,109 15,703 9,854 |
QUARTERLY RESULTS OF OPERATIO35
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 24, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Consolidated Quarterly Results Of Operations | The following table summarizes the unaudited consolidated quarterly results of operations for fiscal 2015 and 2014 (in thousands, except per share amounts): Fiscal Year 2015 Quarters Ended Sept. 24 Dec. 24 March 25 June 24 Revenues $ 711,018 $ 742,898 $ 784,215 $ 764,147 Income before provision for income taxes $ 47,814 $ 58,744 $ 96,316 $ 81,403 Net income $ 32,738 $ 41,306 $ 65,427 $ 57,223 Basic net income per share $ 0.51 $ 0.65 $ 1.04 $ 0.94 Diluted net income per share $ 0.49 $ 0.64 $ 1.02 $ 0.92 Basic weighted average shares outstanding 64,668 63,590 62,891 61,132 Diluted weighted average shares outstanding 66,263 64,963 64,091 62,294 Fiscal Year 2014 Quarters Ended Sept. 25 Dec. 25 March 26 June 25 Revenues $ 684,660 $ 705,662 $ 759,293 $ 759,880 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 |
Nature Of Operations And Summ36
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Detail) | 3 Months Ended | 12 Months Ended | ||
Sep. 24, 2014USD ($) | Jun. 24, 2015USD ($)LocationrestaurantCountry$ / sharesshares | Jun. 25, 2014USD ($)$ / sharesshares | Jun. 26, 2013USD ($)$ / sharesshares | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of Restaurants | restaurant | 1,629 | |||
Number of countries in which entity operates | Country | 29 | |||
Number of territories in which entity operates | Location | 2 | |||
Quantifying Immaterial Error in Prior Period | $ 4,000,000 | $ 3,600,000 | ||
Advertising expense, net of franchisee contribution | $ 94,300,000 | 92,200,000 | 82,800,000 | |
Stock-based compensation expense from continuing operations | 15,000,000 | 16,900,000 | 16,600,000 | |
Tax benefit related to stock-based compensation expense | $ 5,500,000 | $ 6,900,000 | $ 6,600,000 | |
Weighted average fair values of option grants | $ / shares | $ 11.72 | $ 14.75 | $ 12.94 | |
Number of preferred stock the Board of Directors is authorized to issue | shares | 1,000,000 | |||
Preferred stock, par value | $ / shares | $ 1 | |||
Preferred stock, shares issued | shares | 0 | |||
Increase in share repurchase program | $ 350,000,000 | |||
Stock repurchase program, total authorization of shares to be repurchased | $ 3,935,000,000 | |||
Stock repurchase during period, shares | shares | 5,400,000 | |||
Stock repurchased during period, value | $ 306,300,000 | |||
Remaining authorized share purchases, amount | 361,000,000 | |||
Proceeds from issuances of treasury stock | 16,259,000 | $ 29,295,000 | $ 41,190,000 | |
Payments of dividends | 70,832,000 | 63,395,000 | $ 56,343,000 | |
Dividends Payable, Current | $ 16,961,000 | $ 15,625,000 | ||
Dividends per share declared but not paid | $ / shares | $ 0.28 | |||
Stock options and restricted share awards outstanding excluded from dilutive earnings per share | shares | 119,000 | 113,000 | 193,000 | |
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 | shares | (765,000) | |||
Common Stock [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Dividends Payable, Current | $ 17,000,000 |
Nature Of Operations And Summ37
Nature Of Operations And Summary Of Significant Accounting Policies (Fair Value Assumptions Using Black-Scholes Option-Pricing Model) (Detail) | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | |||
Expected volatility | 31.00% | 47.70% | 53.40% |
Risk-free interest rate | 1.60% | 1.60% | 0.70% |
Expected lives | 5 years | 5 years | 5 years |
Dividend yield | 2.20% | 2.20% | 2.40% |
NATURE OF OPERATIONS AND SUMM38
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Basic weighted average shares outstanding (in shares) | 61,132 | 62,891 | 63,590 | 64,668 | 65,009 | 66,479 | 66,811 | 66,693 | 63,072 | 66,251 | 71,788 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,332 | 1,901 | 2,370 | ||||||||
Diluted weighted average shares outstanding (in shares) | 62,294 | 64,091 | 64,963 | 66,263 | 66,824 | 68,342 | 68,628 | 68,802 | 64,404 | 68,152 | 74,158 |
Restricted Share Award | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 763 | 1,048 | 1,415 | ||||||||
Employee Stock Option [Member] | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 569 | 853 | 955 |
Acquisition (Details)
Acquisition (Details) $ in Thousands | Jun. 01, 2013USD ($)restaurant | Jun. 24, 2015USD ($) | Jun. 24, 2015USD ($) | Jun. 25, 2014USD ($) | Jun. 26, 2013USD ($) | |
Business Acquisition [Line Items] | ||||||
Adjustments | [1] | $ 0 | $ (8,387) | |||
Acquisition costs | $ 1,100 | $ 1,100 | 0 | $ 0 | ||
Chili's Restaurants [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of restaurants acquired | restaurant | 11 | |||||
Payments to Acquire Businesses, Gross | $ 24,600 | |||||
Adjustments | $ 8,400 | |||||
Acquisition costs | $ 400 | |||||
[1] | (b)The valuation of assets and liabilities related to the acquired Canadian restaurants was finalized during fiscal 2014 resulting in an adjustment of approximately $8.4 million to goodwill. |
Investments And Other Disposi40
Investments And Other Dispositions (Narrative) (Detail) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2013USD ($) | Jun. 24, 2015Store | |
Joint Venture Investment, Mexico [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of restaurants to develop | 50 | |
Number of restaurants operating in joint venture | 38 | |
Sale Of Macaroni Grill [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Sale | $ | $ 8.3 |
Other Gains And Charges (Schedu
Other Gains And Charges (Schedule Of Other Gains And Charges) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 24, 2015 | Dec. 24, 2014 | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Mar. 25, 2015 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Disclosure Other Gains And Charges [Abstract] | ||||||||||
Litigation | $ (2,753) | $ 39,500 | $ 0 | |||||||
Restaurant impairment charges | $ 1,500 | $ 700 | $ 3,200 | $ 1,300 | 2,255 | 4,502 | 5,276 | |||
Restaurant closure charges | 1,736 | 3,413 | 3,637 | |||||||
Severance and other benefits | 900 | $ 300 | $ 1,000 | $ 700 | $ 200 | $ 200 | 1,182 | 2,140 | 2,235 | |
Acquisition costs | $ 1,100 | 1,100 | 0 | 0 | ||||||
Loss (gain) on the sale of assets, net | $ 1,093 | 1,093 | (608) | (11,228) | ||||||
Impairment of franchise rights | 440 | 0 | 0 | |||||||
Impairment of liquor licenses | 205 | 0 | 170 | |||||||
Loss on extinguishment of debt | 0 | 0 | 15,768 | |||||||
Other | (494) | 277 | 1,442 | |||||||
Other gains and charges | $ 4,764 | $ 49,224 | $ 17,300 |
Other Gains And Charges (Narrat
Other Gains And Charges (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2013 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Mar. 25, 2015 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Proceeds from Legal Settlements | $ 8,600 | |||||||||||
Litigation reserves | $ 5,800 | $ 39,500 | $ 0 | $ 39,500 | $ 0 | |||||||
Restaurant impairment charges | $ 1,500 | 700 | 3,200 | $ 1,300 | 2,255 | 4,502 | 5,276 | |||||
Impairment of real estate | 900 | |||||||||||
Impairment of liquor licenses | 205 | 0 | 170 | |||||||||
Loss (gain) on the sale of assets, net | $ 1,093 | 1,093 | (608) | (11,228) | ||||||||
Restaurant closure charges | 1,736 | 3,413 | 3,637 | |||||||||
Lease termination charges | 2,300 | |||||||||||
Severance and other benefits | 900 | $ 300 | $ 1,000 | $ 700 | $ 200 | $ 200 | 1,182 | 2,140 | 2,235 | |||
Acquisition costs | $ 1,100 | 1,100 | 0 | 0 | ||||||||
Gain on sale of land | 2,900 | |||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 15,768 | |||||||||
5.75% Notes [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||||
Loss on extinguishment of debt | $ 15,800 | |||||||||||
Sale Of Macaroni Grill [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Proceeds from Sale | $ 8,300 |
Goodwill (Changes In Carrying A
Goodwill (Changes In Carrying Amount Of Goodwill) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 24, 2015 | Jun. 25, 2014 | |||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning balance | $ 196,268 | $ 204,937 | ||
Accumulated impairment losses, Beginning balance | [1] | (62,834) | (62,834) | |
Goodwill, Net, Beginning balance | 133,434 | 142,103 | ||
Adjustments | [2] | 0 | (8,387) | |
Foreign currency translation adjustment | (1,053) | (282) | ||
Goodwill, Ending balance | 195,215 | 196,268 | ||
Accumulated impairment losses, Ending balance | (62,834) | (62,834) | [1] | |
Goodwill, Net, Ending balance | $ 132,381 | $ 133,434 | ||
[1] | (a)The impairment losses recorded in prior years are related to restaurant brands that we no longer own. | |||
[2] | (b)The valuation of assets and liabilities related to the acquired Canadian restaurants was finalized during fiscal 2014 resulting in an adjustment of approximately $8.4 million to goodwill. |
GOODWILL AND INTANGIBLES Schedu
GOODWILL AND INTANGIBLES Schedule of Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | ||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 8,227 | $ 9,979 | ||
Accumulated Amortization | (1,983) | (1,413) | ||
Net Carrying Amount | 6,244 | 8,566 | ||
Impairment of franchise rights | 440 | 0 | $ 0 | |
Franchise Rights [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | [1] | 7,423 | 9,107 | |
Accumulated Amortization | [1] | (1,625) | (1,121) | |
Net Carrying Amount | [1] | 5,798 | 7,986 | |
Impairment of franchise rights | 400 | |||
Foreign currency translation adjustment | (1,000) | |||
Other Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 804 | 872 | ||
Accumulated Amortization | (358) | (292) | ||
Net Carrying Amount | 446 | 580 | ||
Indefinite-lived Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 10,398 | $ 10,275 | ||
[1] | (a)The gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $1.0 million. Additionally, we recorded an impairment charge of $0.4 million in fiscal 2015 to write down the Brinker Canada franchise rights. See Note 10 for additional disclosures. |
GOODWILL AND INTANGIBLES Sche45
GOODWILL AND INTANGIBLES Schedule of Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 800 | $ 1,000 | $ 200 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 900 |
Accrued And Other Liabilities46
Accrued And Other Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Sales tax | $ 20,308 | $ 19,622 |
Insurance | 22,658 | 20,652 |
Property tax | 14,224 | 14,209 |
Dividends | 16,961 | 15,625 |
Litigation reserves | 0 | 39,500 |
Other | 37,046 | 36,446 |
Other accrued liabilities | $ 111,197 | $ 146,054 |
Accrued And Other Liabilities47
Accrued And Other Liabilities (Other Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Straight-line rent | $ 56,345 | $ 57,462 |
Insurance | 30,988 | 36,352 |
Landlord contributions | 24,785 | 23,404 |
Unrecognized tax benefits | 5,144 | 5,247 |
Other | 7,771 | 6,633 |
Other liabilities | $ 125,033 | $ 129,098 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes From Continuing Operations) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Current income tax expense: | |||
Federal | $ 59,726 | $ 66,170 | $ 46,852 |
State | 11,862 | 15,219 | 11,800 |
Foreign | 3,319 | 3,550 | 2,879 |
Total current income tax expense | 74,907 | 84,939 | 61,531 |
Deferred income tax (benefit) expense: | |||
Federal | 10,754 | (18,715) | 7,344 |
State | 2,018 | (4,087) | (1,919) |
Foreign | (96) | 112 | 0 |
Total deferred income tax (benefit) expense | 12,676 | (22,690) | 5,425 |
Provision for income taxes | $ 87,583 | $ 62,249 | $ 66,956 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Income Tax Disclosure [Line Items] | |||
Statutory Federal income tax rate | 35.00% | ||
Amount that would affect the effective tax rate if recognized | $ 4.1 | $ 4.9 | |
Potential reduction in unrecognized tax benefits due to expiration of statutes or sustained tax positions | 0.8 | ||
Recognized expense in interest | 0.2 | (0.3) | $ 0.5 |
Income tax penalties and interest accrued | 2.2 | 2.5 | |
Income tax penalties and interest accrued, net of deferred tax benefits | 1.5 | 1.7 | |
Federal deferred tax benefit | 0.7 | $ 0.8 | |
Anticipated Outcome During Next Twelve Months [Member] | |||
Income Tax Disclosure [Line Items] | |||
Amount that would affect the effective tax rate if recognized | $ 0.6 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between Reported Provision For Income Taxes And Amount Computed By Statutory Federal Income Tax Rate) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rate | $ 99,497 | $ 75,701 | $ 80,610 |
FICA tax credit | (18,633) | (18,116) | (16,450) |
State income taxes, net of Federal benefit | 8,646 | 7,636 | 6,368 |
Other | (1,927) | (2,972) | (3,572) |
Provision for income taxes | $ 87,583 | $ 62,249 | $ 66,956 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
Deferred income tax assets: | ||
Leasing transactions | $ 38,858 | $ 40,085 |
Stock-based compensation | 13,105 | 13,698 |
Restructure charges and impairments | 2,303 | 16,726 |
Insurance reserves | 18,567 | 18,550 |
Employee benefit plans | 470 | 404 |
Gift cards | 18,499 | 15,497 |
Other, net | 9,804 | 8,975 |
Total deferred income tax assets | 101,606 | 113,935 |
Deferred income tax liabilities: | ||
Prepaid expenses | 16,803 | 16,462 |
Goodwill and other amortization | 27,713 | 26,551 |
Depreciation and capitalized interest on property and equipment | 19,990 | 20,982 |
Other, net | 3,963 | 3,680 |
Total deferred income tax liabilities | 68,469 | 67,675 |
Net deferred income tax asset | $ 33,137 | $ 46,260 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 24, 2015 | Jun. 25, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 7,375 | $ 6,388 |
Additions based on tax positions related to the current year | 760 | 1,582 |
Additions based on tax positions related to prior years | 18 | 347 |
Settlements with tax authorities | (371) | (339) |
Expiration of statute of limitations | (1,694) | (603) |
Balance at end of year | $ 6,088 | $ 7,375 |
Debt (Long-Term Debt) (Detail)
Debt (Long-Term Debt) (Detail) - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
Debt [Line Items] | ||
Capital lease obligations (see Note 9) | $ 40,849 | $ 43,086 |
Long-term debt and capital lease obligations, including current maturities | 974,264 | 860,186 |
Less current installments | (3,439) | (27,884) |
Long-term debt, less current installments | 970,825 | 832,302 |
Term Loan [Member] | ||
Debt [Line Items] | ||
Term loan | 0 | 187,500 |
Revolver Borrowings [Member] | ||
Debt [Line Items] | ||
Revolving credit facility | 383,750 | 80,000 |
3.88% notes [Member] | ||
Debt [Line Items] | ||
Senior notes | 299,766 | 299,736 |
2.60% notes [Member] | ||
Debt [Line Items] | ||
Senior notes | $ 249,899 | $ 249,864 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 21, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Jun. 26, 2013 | Mar. 25, 2015 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Debt [Line Items] | ||||||||
Debt instrument, face amount | $ 550,000,000 | $ 550,000,000 | ||||||
Net proceeds from issuance of long-term debt | 549,500,000 | $ 0 | $ 0 | 549,528,000 | ||||
Five Year Notes [Member] | ||||||||
Debt [Line Items] | ||||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 | ||||||
Stated interest rate | 2.60% | 2.60% | ||||||
Ten Year Notes [Member] | ||||||||
Debt [Line Items] | ||||||||
Debt instrument, face amount | $ 300,000,000 | $ 300,000,000 | ||||||
Stated interest rate | 3.88% | 3.88% | ||||||
5.75% Notes [Member] | ||||||||
Debt [Line Items] | ||||||||
Stated interest rate | 5.75% | |||||||
March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Debt [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 38,000,000 | $ 345,800,000 | ||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||||||
Line of Credit Facility, Expiration Date | Mar. 12, 2020 | |||||||
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | |||||||
Debt available under revolving credit facility | $ 366,200,000 | $ 366,200,000 | ||||||
March 2015 Revised Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Debt [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
March 2015 Revised Revolving Credit Facility [Member] | Minimum [Member] | ||||||||
Debt [Line Items] | ||||||||
Basis spread on variable rate | 1.38% | |||||||
$250 Million Revolver [Member] | ||||||||
Debt [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 97,000,000 | |||||||
Credit facility repayments during the year | 177,000,000 | |||||||
Term Loan [Member] | ||||||||
Debt [Line Items] | ||||||||
Line of Credit Facility, Periodic Payment | $ 18,700,000 | |||||||
Credit facility repayments during the year | $ 168,800,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Debt [Line Items] | ||||||||
Basis spread on variable rate | 0.19% | |||||||
March 2015 Revised Revolving Credit Facility [Member] | March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Debt [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 135,500,000 |
Debt (Long-Term Debt Maturities
Debt (Long-Term Debt Maturities Excluding Capital Lease Obligations) (Detail) $ in Thousands | Jun. 24, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 0 |
2,017 | 0 |
2,018 | 249,899 |
2,019 | 0 |
2,020 | 383,750 |
Thereafter | 299,766 |
Carrying value of notes | $ 933,415 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) | 12 Months Ended | |
Jun. 24, 2015 | Jun. 25, 2014 | |
Leases [Abstract] | ||
Capital Leased Assets, Gross | $ 39,000,000 | $ 39,000,000 |
Capital lease accumulated amortization | $ 22,100,000 | $ 20,100,000 |
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) (D
Leases (Rent Expense Detail) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Leases [Abstract] | |||
Straight-lined minimum rent | $ 92,917 | $ 90,574 | $ 88,773 |
Contingent rent | 4,774 | 4,737 | 3,637 |
Other | 9,998 | 9,817 | 9,296 |
Total rent expense | $ 107,689 | $ 105,128 | $ 101,706 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Detail) - Jun. 24, 2015 - USD ($) $ in Thousands | Total | |
Leases [Abstract] | ||
Percentage Of Imputed Average Capital Lease Interest | 7.00% | |
Capital Leases, 2016 | $ 6,050 | |
Capital Leases, 2017 | 5,953 | |
Capital Leases, 2018 | 5,764 | |
Capital Leases, 2019 | 5,202 | |
Capital Leases, 2020 | 4,853 | |
Capital Leases, Thereafter | 32,114 | |
Capital Leases, Total minimum lease payments | [1] | 59,936 |
Imputed interest (average rate of 7%) | (19,087) | |
Present value of minimum lease payments | 40,849 | |
Less current installments | (3,439) | |
Capital Leases, Net minimum payments | 37,410 | |
Operating Leases, 2016 | 113,511 | |
Operating Leases, 2017 | 94,405 | |
Operating Leases, 2018 | 70,531 | |
Operating Leases, 2019 | 50,991 | |
Operating Leases, 2020 | 39,736 | |
Operating Leases, Thereafter | 114,526 | |
Operating Leases, Total minimum lease payments | [1] | 483,700 |
Capital Leases, Minimum sublease rentals | 34,900 | |
Operating Leases, Minimum sublease rentals | $ 37,400 | |
[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 $34.9 million and $37.4 million for capital and operating subleases, respectively. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Detail) | 12 Months Ended | ||
Jun. 24, 2015USD ($)RestaurantsAsset | Jun. 25, 2014USD ($)Restaurants | Jun. 26, 2013USD ($) | |
Fair Value Disclosures [Line Items] | |||
Number Of Underperforming Restaurants | Restaurants | 4 | 9 | |
Carrying Value Of Impaired Long Lived Assets | $ 2,300,000 | $ 5,800,000 | |
Fair value of impaired long-lived asset | 0 | 1,342,000 | |
Impairment of Long-Lived Assets Held-for-use | 2,300,000 | 4,500,000 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 8,860,000 | |
Impairment of franchise rights | 440,000 | 0 | $ 0 |
Liquor Licenses [Member] | |||
Fair Value Disclosures [Line Items] | |||
Carrying Value Of Impaired Long Lived Assets | 800,000 | ||
Fair value of impaired long-lived asset | $ 550,000 | 0 | |
Number of Impaired Indefinite-Lived Assets | Asset | 4 | ||
Carrying Value Of Impaired Indefinite Lived Assets | $ 600,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 200,000 | 0 | |
Franchise Rights [Member] | |||
Fair Value Disclosures [Line Items] | |||
Number of Impaired Finite-lived Assets | Asset | 1 | ||
Fair Value of Finite-Lived Franchise Rights | $ 0 | 8,900,000 | |
Impairment of franchise rights | 400,000 | ||
Fair Value Measurements Using Level 1 [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 0 | 0 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 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 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 0 | |
Fair Value Measurements Using Level 2 [Member] | Liquor Licenses [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 550,000 | 0 | |
Fair Value Measurements Using Level 3 [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 0 | 1,342,000 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 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 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Detail) - USD ($) $ in Thousands | Jun. 24, 2015 | Jun. 25, 2014 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.60% | |
Senior notes | $ 249,899 | $ 249,864 |
Fair value of notes | $ 250,583 | 250,400 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.88% | |
Senior notes | $ 299,766 | 299,736 |
Fair value of notes | $ 290,706 | $ 290,211 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Employees And Non-Employee Directors And Consultants [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 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term of stock option exercises, in years | 8 years | ||
Unrecognized compensation expense | $ 2.5 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 1 year 9 months 18 days | ||
Total intrinsic value of options exercised | $ 28.1 | $ 25.7 | $ 22.4 |
Tax benefit realized on options exercised | 9.2 | 8.9 | 8.1 |
Restricted Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 13.7 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 2 years 3 months 14 days | ||
Fair value of shares that vested during period | $ 34.2 | $ 42.2 | $ 22 |
Minimum [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, Award Vesting Period | 1 year | ||
Maximum [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, Award Vesting Period | 4 years |
Stock-Based Compensation (Trans
Stock-Based Compensation (Transactions During Fiscal 2015-Stock Options) (Detail) - Jun. 24, 2015 - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at June 25, 2014, Number of Options | 1,701,000 |
Granted, Number of Options | 279,000 |
Exercised, Number of Options | (765,000) |
Forfeited or canceled, Number of Options | (42,000) |
Options outstanding at June 24, 2015, Number of Options | 1,173,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at June 25, 2014, Weighted Average Exercise Price | $ 24.80 |
Granted, Weighted Average Exercise Price | 51.24 |
Exercised, Weighted Average Exercise Price | 21.25 |
Forfeited or canceled, Weighted Average Exercise Price | 34.45 |
Options outstanding at June 24, 2015, Weighted Average Exercise Price | $ 33.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 624,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 24.06 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 9 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 4 months 25 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 28,849 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 20,907 |
Stock-Based Compensation (Tra63
Stock-Based Compensation (Transactions During Fiscal 2015-Restricted Share Awards) (Detail) - 12 months ended Jun. 24, 2015 - Restricted Share Awards [Member] - $ / shares shares in Thousands | Total |
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 25, 2014, Number of Restricted Share Awards | 1,508 |
Granted, Number of Restricted Share Awards | 282 |
Vested, Number of Restricted Share Awards | (567) |
Forfeited, Number of Restricted Share Awards | (64) |
Restricted share awards outstanding at June 24, 2015, Number of Restricted Share Awards | 1,159 |
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 25, 2014, Weighted Average Fair Value Per Award | $ 29.39 |
Granted, Weighted Average Fair Value Per Award | 50.71 |
Vested, Weighted Average Fair Value Per Award | 20.68 |
Forfeited, Weighted Average Fair Value Per Award | 36.58 |
Restricted share awards outstanding at June 24, 2015, Weighted Average Fair Value Per Award | $ 38.44 |
Savings Plans (Narrative) (Deta
Savings Plans (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
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 | $ 8 | $ 7.4 | $ 7.2 |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information (Cash Paid For Interest And Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | ||
Income taxes, net of refunds | $ 50,437 | $ 48,379 | $ 60,291 | |
Interest, net of amounts capitalized (a) | [1] | $ 26,190 | 25,476 | $ 41,504 |
5.75% Notes [Member] | ||||
Interest, net of amounts capitalized (a) | $ 15,300 | |||
5.75% Notes [Member] | ||||
Stated interest rate | 5.75% | |||
[1] | (a) Fiscal 2013 interest includes $15.3 million of interest paid upon retirement of the 5.75% notes in June 2013. |
Supplemental Cash Flow Inform66
Supplemental Cash Flow Information (Non-Cash Investing and Financing Activities) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Retirement of fully depreciated assets | $ 40,775 | $ 64,420 | $ 55,427 |
Accrued capital expenditures | 4,109 | 15,703 | 9,854 |
Dividend Declared [Member] | |||
Dividends declared but not paid | $ 18,132 | $ 17,250 | $ 15,263 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 24, 2015 | Jun. 25, 2014 | |
Guarantor Obligations [Line Items] | ||
Description of material contingencies | No material liabilities have been recorded as of June 25, 2014 | |
Letters of Credit Outstanding, Amount | $ 32.1 | |
Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Range of Possible Loss, Maximum | $ 98.9 | $ 116.5 |
CONTINGENCIES Loss Contingencie
CONTINGENCIES Loss Contingencies (Details) $ in Thousands | 3 Months Ended | ||
Mar. 25, 2015USD ($) | Jun. 24, 2015USD ($)LegalMatter | Jun. 25, 2014USD ($) | |
Loss Contingencies [Line Items] | |||
Litigation reserves | $ 0 | $ 39,500 | |
Number of threatened or pending claims expected to have a material adverse effect | LegalMatter | 0 | ||
August 2004 California lawsuit [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Range of Possible Loss, Maximum | $ 56,500 | ||
Loss Contingency Accrual, Payments | $ 44,000 |
Quarterly Results Of Operatio69
Quarterly Results Of Operations (Unaudited) (Unaudited Consolidated Quarterly Results Of Operations) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 764,147 | $ 784,215 | $ 742,898 | $ 711,018 | $ 759,880 | $ 759,293 | $ 705,662 | $ 684,660 | $ 3,002,278 | $ 2,909,495 | $ 2,849,718 |
Income before provision for income taxes | 81,403 | 96,316 | 58,744 | 47,814 | 35,178 | 80,815 | 57,713 | 42,582 | 284,277 | 216,288 | 230,315 |
Net income | $ 57,223 | $ 65,427 | $ 41,306 | $ 32,738 | $ 28,820 | $ 56,263 | $ 39,744 | $ 29,212 | $ 196,694 | $ 154,039 | $ 163,359 |
Basic net income per share (in dollars per share) | $ 0.94 | $ 1.04 | $ 0.65 | $ 0.51 | $ 0.44 | $ 0.85 | $ 0.59 | $ 0.44 | $ 3.12 | $ 2.33 | $ 2.28 |
Diluted net income per share (in dollars per share) | $ 0.92 | $ 1.02 | $ 0.64 | $ 0.49 | $ 0.43 | $ 0.82 | $ 0.58 | $ 0.42 | $ 3.05 | $ 2.26 | $ 2.20 |
Basic weighted average shares outstanding (in shares) | 61,132 | 62,891 | 63,590 | 64,668 | 65,009 | 66,479 | 66,811 | 66,693 | 63,072 | 66,251 | 71,788 |
Diluted weighted average shares outstanding (in shares) | 62,294 | 64,091 | 64,963 | 66,263 | 66,824 | 68,342 | 68,628 | 68,802 | 64,404 | 68,152 | 74,158 |
Quarterly Results Of Operatio70
Quarterly Results Of Operations (Unaudited) (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2013 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 25, 2014 | Mar. 26, 2014 | Dec. 25, 2013 | Sep. 25, 2013 | Jun. 24, 2015 | Jun. 25, 2014 | Jun. 26, 2013 | |
Quarterly Financial Data [Line Items] | ||||||||||||
Litigation | $ (2,753) | $ 39,500 | $ 0 | |||||||||
Litigation reserves | $ 5,800 | $ 39,500 | 0 | 39,500 | 0 | |||||||
Proceeds from Legal Settlements | $ 8,600 | |||||||||||
Acquisition costs | $ 1,100 | 1,100 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | (15,768) | |||||||||
Long-lived asset impairments | 1,500 | 700 | 3,200 | $ 1,300 | 2,255 | 4,502 | 5,276 | |||||
Severance Costs | 900 | 300 | 1,000 | $ 700 | 200 | $ 200 | $ 1,182 | 2,140 | $ 2,235 | |||
Lease termination charges | $ 500 | $ 500 | $ 900 | $ 600 | $ 900 | $ 200 | $ 200 | |||||
Gain on sale of land | 2,900 | |||||||||||
5.75% Notes [Member] | ||||||||||||
Quarterly Financial Data [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ (15,800) | |||||||||||
Sale Of Macaroni Grill [Member] | ||||||||||||
Quarterly Financial Data [Line Items] | ||||||||||||
Proceeds from Sale | $ 8,300 |
SUBSEQUENT EVENTS Subsequent 71
SUBSEQUENT EVENTS Subsequent Events (Details) | Aug. 20, 2015USD ($)$ / shares | Jun. 25, 2015USD ($)Restaurants | Aug. 21, 2015USD ($)shares | Jun. 24, 2015USD ($)restaurant | Mar. 25, 2015USD ($) | Sep. 24, 2014USD ($) | Jun. 24, 2015USD ($)restaurant$ / shares | Jun. 25, 2014USD ($)$ / shares | Jun. 26, 2013USD ($)$ / shares |
Subsequent Event [Line Items] | |||||||||
Number of Restaurants | restaurant | 1,629 | 1,629 | |||||||
Payments for Repurchase of Common Stock | $ 306,255,000 | $ 239,597,000 | $ 333,384,000 | ||||||
Dividends per share | $ / shares | $ 1.12 | $ 0.96 | $ 0.80 | ||||||
Increase in share repurchase program | $ 350,000,000 | ||||||||
Stock repurchase program, total authorization of shares to be repurchased | $ 3,935,000,000 | $ 3,935,000,000 | |||||||
Treasury Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Treasury Stock, Shares, Acquired | shares | 766,000 | ||||||||
Payments for Repurchase of Common Stock | $ 44,000,000 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | shares | 74,000 | ||||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 4,100,000 | ||||||||
Increase in share repurchase program | $ 250,000,000 | ||||||||
Stock repurchase program, total authorization of shares to be repurchased | $ 4,185,000,000 | ||||||||
Acquisition of Chili's restaurants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Date of Acquisition Agreement | Jun. 25, 2015 | ||||||||
Number of Restaurants | Restaurants | 103 | ||||||||
Payments to Acquire Businesses, Gross | $ 106,500,000 | ||||||||
Average annual revenue per acquired restaurant | 2,600,000 | ||||||||
Average annual royalty revenues lost per acquired restaurant | $ 104,000 | ||||||||
Dividend Declared [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends per share | $ / shares | $ 0.32 | ||||||||
March 2015 Revised Revolving Credit Facility [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from Lines of Credit | $ 38,000,000 | $ 345,800,000 | |||||||
March 2015 Revised Revolving Credit Facility [Member] | March 2015 Revised Revolving Credit Facility [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from Lines of Credit | $ 135,500,000 |