Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 23, 2015 | Jan. 25, 2016 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 23, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | BRINKER INTERNATIONAL INC | |
Entity Central Index Key | 703,351 | |
Current Fiscal Year End Date | --06-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 57,106,559 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 23, 2015 | Jun. 24, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 71,288 | $ 55,121 |
Accounts receivable, net | 87,706 | 46,588 |
Inventories | 25,868 | 23,035 |
Restaurant supplies | 44,468 | 43,968 |
Prepaid expenses | 23,611 | 18,512 |
Deferred income taxes | 997 | 2,493 |
Total current assets | 253,938 | 189,717 |
Property and Equipment, at Cost: | ||
Land | 147,576 | 147,763 |
Buildings and leasehold improvements | 1,622,146 | 1,546,957 |
Furniture and equipment | 649,169 | 618,084 |
Construction-in-progress | 13,356 | 15,001 |
Property plant and equipment gross | 2,432,247 | 2,327,805 |
Less accumulated depreciation and amortization | (1,361,015) | (1,295,761) |
Net property and equipment | 1,071,232 | 1,032,044 |
Other Assets: | ||
Goodwill | 160,208 | 132,381 |
Deferred income taxes | 28,808 | 30,644 |
Intangibles, net | 31,214 | 16,642 |
Other | 34,484 | 34,445 |
Total other assets | 254,714 | 214,112 |
Total assets | 1,579,884 | 1,435,873 |
Current Liabilities: | ||
Current installments of long-term debt | 3,605 | 3,439 |
Accounts payable | 82,941 | 92,947 |
Gift card liability | 166,035 | 114,726 |
Accrued payroll | 73,443 | 82,915 |
Other accrued liabilities | 121,997 | 111,197 |
Income taxes payable | 989 | 13,251 |
Total current liabilities | 449,010 | 418,475 |
Long-term debt, less current installments | 1,156,493 | 970,825 |
Other liabilities | $ 139,313 | $ 125,033 |
Commitments and Contingencies (Note 10) | ||
Shareholders’ Deficit: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 58,255,713 shares outstanding at December 23, 2015, and 176,246,649 shares issued and 60,585,608 shares outstanding at June 24, 2015 | $ 17,625 | $ 17,625 |
Additional paid-in capital | 488,229 | 490,111 |
Accumulated other comprehensive loss | (11,895) | (8,630) |
Retained earnings | 2,474,441 | 2,431,683 |
Shareholders' deficit including treasury stock | 2,968,400 | 2,930,789 |
Less treasury stock, at cost (117,990,936 shares at December 23, 2015 and 115,661,041 shares at June 24, 2015) | (3,133,332) | (3,009,249) |
Total shareholders’ deficit | (164,932) | (78,460) |
Total liabilities and shareholders’ deficit | $ 1,579,884 | $ 1,435,873 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 23, 2015 | Jun. 24, 2015 |
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 | 58,255,713 | 60,585,608 |
Treasury Stock, shares | 117,990,936 | 115,661,041 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Company sales | $ 765,672 | $ 717,768 | $ 1,506,153 | $ 1,404,632 |
Franchise and other revenues | 22,938 | 25,130 | 45,016 | 49,284 |
Total revenues | 788,610 | 742,898 | 1,551,169 | 1,453,916 |
Operating costs and expenses: | ||||
Cost of sales | 203,799 | 193,762 | 400,402 | 378,547 |
Restaurant labor | 247,596 | 227,733 | 494,173 | 455,009 |
Restaurant expenses | 190,660 | 178,898 | 379,833 | 354,436 |
Company restaurant expenses | 642,055 | 600,393 | 1,274,408 | 1,187,992 |
Depreciation and amortization | 39,114 | 36,072 | 78,285 | 71,614 |
General and administrative | 31,909 | 32,660 | 65,020 | 65,294 |
Other gains and charges | (87) | 8,291 | 1,590 | 9,224 |
Total operating costs and expenses | 712,991 | 677,416 | 1,419,303 | 1,334,124 |
Operating income | 75,619 | 65,482 | 131,866 | 119,792 |
Interest expense | 7,907 | 7,349 | 15,674 | 14,348 |
Other, net | (560) | (611) | (833) | (1,114) |
Income before provision for income taxes | 68,272 | 58,744 | 117,025 | 106,558 |
Provision for income taxes | 20,578 | 17,438 | 36,124 | 32,514 |
Net income | $ 47,694 | $ 41,306 | $ 80,901 | $ 74,044 |
Basic net income per share | $ 0.81 | $ 0.65 | $ 1.35 | $ 1.15 |
Diluted net income per share | $ 0.80 | $ 0.64 | $ 1.34 | $ 1.13 |
Basic weighted average shares outstanding | 59,198 | 63,590 | 59,712 | 64,129 |
Diluted weighted average shares outstanding | 59,899 | 64,963 | 60,553 | 65,613 |
Other Comprehensive Loss | ||||
Foreign currency translation adjustment | $ (460) | $ (3,529) | $ (3,265) | $ (4,336) |
Other comprehensive loss | (460) | (3,529) | (3,265) | (4,336) |
Comprehensive Income | $ 47,234 | $ 37,777 | $ 77,636 | $ 69,708 |
Dividends per share | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 23, 2015 | Dec. 24, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 80,901 | $ 74,044 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 78,285 | 71,614 |
Stock-based compensation | 7,522 | 6,992 |
Deferred income taxes | 16,305 | (3,969) |
Restructure charges and other impairments | 1,229 | 8,326 |
Net (gain) loss on disposal of assets | (274) | 2,974 |
Undistributed earnings on equity investments | (213) | (188) |
Other | 149 | 418 |
Changes in assets and liabilities: | ||
Accounts receivable | (41,551) | (49,665) |
Inventories | (720) | (1,564) |
Prepaid expenses and other | (4,760) | 2,495 |
Intangibles and other assets | (724) | (2,018) |
Accounts payable | (11,899) | (12,107) |
Accrued liabilities | 39,367 | 60,569 |
Current income taxes | (13,254) | (2,286) |
Other liabilities | 5,202 | 6,830 |
Net cash provided by operating activities | 155,565 | 162,465 |
Cash Flows from Investing Activities: | ||
Payments for property and equipment | (52,199) | (79,481) |
Payment for business acquisition, net of cash acquired | (105,577) | 0 |
Proceeds from sale of assets | 2,756 | 1,950 |
Net cash used in investing activities | (155,020) | (77,531) |
Cash Flows from Financing Activities: | ||
Borrowings on revolving credit facility | 207,500 | 83,000 |
Purchases of treasury stock | (140,089) | (112,789) |
Payments of dividends | (37,363) | (35,409) |
Payments on revolving credit facility | (20,000) | 0 |
Excess tax benefits from stock-based compensation | 4,907 | 10,351 |
Proceeds from issuances of treasury stock | 1,691 | 3,975 |
Payments on long-term debt | (1,024) | (13,338) |
Net cash provided by (used in) financing activities | 15,622 | (64,210) |
Net change in cash and cash equivalents | 16,167 | 20,724 |
Cash and cash equivalents at beginning of period | 55,121 | 57,685 |
Cash and cash equivalents at end of period | $ 71,288 | $ 78,409 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 23, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION References to “Brinker,” the "Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our consolidated financial statements as of December 23, 2015 and June 24, 2015 and for the thirteen and twenty-six week periods ended December 23, 2015 and December 24, 2014 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We are principally engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (“Chili’s”) and Maggiano’s Little Italy (“Maggiano’s”) restaurant brands. At December 23, 2015 , we owned, operated or franchised 1,646 restaurants in the United States and 30 countries and two territories outside of the United States. The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants and the Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. Actual results could differ from those estimates. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the June 24, 2015 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. |
ACQUISITION OF CHILI'S RESTAURA
ACQUISITION OF CHILI'S RESTAURANTS | 6 Months Ended |
Dec. 23, 2015 | |
ACQUISITION OF CHILI'S RESTAURANTS [Abstract] | |
ACQUISITION OF CHILI'S RESTAURANTS | ACQUISITION OF CHILI'S RESTAURANTS On June 25, 2015, we completed the stock 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 , excluding cash and customary working capital adjustments of $0.9 million , was funded with borrowings from our existing credit facility. The results of operations of these restaurants are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of the restaurants were recorded at their preliminary respective fair values as of the date of acquisition. We are in the process of finalizing the fair value of the acquired assets and liabilities through internal studies and third-party valuations. This process is substantially complete and we do not expect any material adjustments to the fair values recorded. The preliminary allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents (1) $ 6,331 Current deferred income taxes 2,050 Property and equipment 70,576 Goodwill 28,543 Reacquired franchise rights (2) 10,400 Deferred income taxes 10,928 Favorable leases 5,496 Total assets acquired 134,324 Current liabilities 18,065 Unfavorable leases 8,846 Total liabilities assumed 26,911 Net assets acquired (1) $ 107,413 (1) The net assets acquired includes cash and cash equivalents of $1.8 million . (2) The reacquired franchise rights have an amortization period of 12 years . We expect $12.8 million of the goodwill balance to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities. The acquired restaurants generated approximately $62.2 million and $124.0 million of revenue for the thirteen and twenty-six week periods ended December 23, 2015 and are expected to generate approximately $2.5 million of average annual revenue per restaurant in fiscal 2016, partially offset by the loss of average annual royalty revenues of approximately $104,000 per restaurant. Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Dec. 23, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting periods. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards determined using the treasury stock method. We had approximately 682,000 stock options and restricted share awards outstanding at December 23, 2015 and 235,000 stock options and restricted share awards outstanding at December 24, 2014 that were not included in the dilutive earnings per share calculation because the effect would have been anti-dilutive. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 23, 2015 December 24, 2014 December 23, 2015 December 24, 2014 Basic weighted average shares outstanding 59,198 63,590 59,712 64,129 Dilutive stock options 314 673 356 663 Dilutive restricted shares 387 700 485 821 701 1,373 841 1,484 Diluted weighted average shares outstanding 59,899 64,963 60,553 65,613 |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Dec. 23, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following (in thousands): December 23, June 24, Revolving credit facility $ 571,250 $ 383,750 3.88% notes 299,781 299,766 2.60% notes 249,917 249,899 Capital lease obligations 39,150 40,849 1,160,098 974,264 Less current installments (3,605 ) (3,439 ) $ 1,156,493 $ 970,825 During the first six months of fiscal 2016 , $207.5 million was drawn from the $750 million revolving credit facility primarily to fund the acquisition of Pepper Dining and share repurchases. We repaid $20.0 million in the second quarter. 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 December 23, 2015 was approximately 0.42% . As of December 23, 2015 , $178.8 million of credit is available under the revolving credit facility. Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants. |
OTHER GAINS AND CHARGES
OTHER GAINS AND CHARGES | 6 Months Ended |
Dec. 23, 2015 | |
Other Gains and Charges [Abstract] | |
Other Gains And Charges [Text Block] | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 23, December 24, December 23, December 24, Litigation $ (2,032 ) $ 5,800 $ (2,032 ) $ 5,800 Restaurant impairment charges 468 747 525 747 Severance 209 0 2,368 0 Acquisition costs 0 0 580 0 Loss (Gain) on the sale of assets, net 0 1,069 (1,762 ) 1,093 Restaurant closure charges 0 509 0 1,381 Impairment of liquor licenses 0 175 0 175 Other 1,268 (9 ) 1,911 28 $ (87 ) $ 8,291 $ 1,590 $ 9,224 We were a plaintiff in a class action lawsuit against US Foods styled as In re U.S. Foodservice, Inc. Pricing Litigation . A settlement agreement was fully executed by all parties in September 2015 and we received approximately $2.0 million during the second quarter of fiscal 2016 in settlement of this litigation. Additionally, we incurred expenses of $1.2 million to reserve for royalties, rents and other outstanding amounts related to a bankrupt franchisee. We also recorded impairment charges of $0.5 million primarily related to a capital lease asset that is subleased to a franchisee and an undeveloped parcel of land that we own for the excess of the carrying amounts over the fair values. See note 7 for fair value disclosures. During the first quarter of fiscal 2016, we incurred $2.2 million in severance and other benefits related to organizational changes made during the quarter. Additionally, we recorded $0.6 million of transaction costs related to the acquisition of Pepper Dining and a $1.8 million gain on the sale of property. In the second quarter of fiscal 2015, the class action lawsuit styled as Hohnbaum, et al. v. Brinker Restaurant Corp., et al. was finalized resulting in an additional charge of approximately $5.8 million to adjust our previous estimate of the final settlement amount. Additionally, we recorded restaurant impairment charges of $0.7 million related to underperforming restaurants that either continue to operate or are scheduled to close and $0.2 million for the excess of the carrying amount of a transferable liquor license over the fair value. We also recorded a $1.1 million charge primarily related to the sale of two company owned restaurants located in Mexico and restaurant closure charges of $0.5 million primarily related to lease termination charges. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 6 Months Ended |
Dec. 23, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): December 23, June 24, Sales tax $ 22,990 $ 20,308 Insurance 24,431 22,658 Property tax 17,096 14,224 Dividends 18,719 16,961 Other 38,761 37,046 $ 121,997 $ 111,197 Other liabilities consist of the following (in thousands): December 23, June 24, Straight-line rent $ 58,521 $ 56,345 Insurance 35,809 30,988 Landlord contributions 25,192 24,785 Unfavorable leases 7,197 663 Unrecognized tax benefits 5,008 5,144 Other 7,586 7,108 $ 139,313 $ 125,033 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 23, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: • Level 1 – inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 – inputs are unobservable and reflect our own assumptions. (a) Non-Financial Assets Measured on a Non-Recurring Basis We review the carrying amounts 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 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 the first six months of fiscal 2016, long-lived assets with a carrying value of $106,000 , primarily related to underperforming restaurants previously impaired, were determined to have no fair value resulting in an impairment charge of $106,000 . During fiscal 2015, long-lived assets with a carrying value of $747,000 , primarily related to two underperforming restaurants, were determined to have no fair value resulting in an impairment charge of $747,000 . 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 the second quarter of fiscal 2016, we determined there was no impairment. During fiscal 2015, one transferable liquor license with a carrying value of $225,000 was written down to the fair value of $50,000 resulting in an impairment charge of $175,000 . We review the carrying amounts of goodwill and reacquired franchise rights annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determined that there was no impairment of goodwill during our annual test in the second quarter of fiscal 2016 and fiscal 2015 as the fair value of our reporting units was substantially in excess of the carrying value. We also determined that there was no impairment of reacquired franchise rights during our annual test in the second quarter of fiscal 2016 and fiscal 2015. No indicators of impairment were identified through the end of the second quarter of fiscal 2016. During the second quarter of fiscal 2016, we recorded an impairment charge of $187,000 related to a parcel of undeveloped land that we own. The land had a carrying value of $937,000 and was written down to the fair value of $750,000 . The fair value was based on the sales price of comparable properties. Additionally, we recorded an impairment charge of $231,000 related to a capital lease asset that is subleased to a franchise. The capital lease asset had a carrying value of $338,000 and was written down to the fair value of $107,000 . The fair value of the capital lease asset is based on discounted projected future cash flows from the sublease. All impairment charges 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 December 23, 2015 and December 24, 2014 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At December 23, 2015 $ 0 $ 0 $ 0 $ 0 At December 24, 2014 $ 0 $ 0 $ 0 $ 0 Liquor licenses: At December 23, 2015 $ 0 $ 0 $ 0 $ 0 At December 24, 2014 $ 0 $ 50 $ 0 $ 50 Other long-lived assets: At December 23, 2015 $ 0 $ 750 $ 107 $ 857 At December 24, 2014 $ 0 $ 0 $ 0 $ 0 (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): December 23, 2015 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,917 $ 249,173 $ 249,899 $ 250,583 3.88% Notes $ 299,781 $ 289,443 $ 299,766 $ 290,706 |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 6 Months Ended |
Dec. 23, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Deficit Note Disclosure | SHAREHOLDERS’ DEFICIT In August 2015, our Board of Directors authorized a $250.0 million increase to our existing share repurchase program resulting in total authorizations of $4,185.0 million . We repurchased approximately 2.8 million shares of our common stock for $140.1 million during the first two quarters of fiscal 2016 , including shares purchased as part of our share repurchase program and shares repurchased to satisfy team member tax withholding obligations on the vesting of restricted shares. As of December 23, 2015 , approximately $477.6 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 an increase in treasury stock within shareholders’ deficit. During the first two quarters of fiscal 2016 , we granted approximately 279,000 stock options with a weighted average exercise price per share of $54.11 and a weighted average fair value per share of $11.18 , and approximately 269,000 restricted share awards with a weighted average fair value per share of $49.83 . Additionally, during the first two quarters of fiscal 2016 , approximately 65,000 stock options were exercised resulting in cash proceeds of approximately $1.7 million . We received an excess tax benefit from stock-based compensation of approximately $4.9 million during the first two quarters primarily as a result of the vesting and distribution of restricted stock grants and performance shares and stock option exercises. The excess tax benefit from stock-based compensation represents the additional income tax benefit received resulting from the increase in the fair value of awards from the time of grant to the exercise date. During the first two quarters of fiscal 2016 , we paid dividends of $37.4 million to common stock shareholders, compared to $35.4 million in the prior year. Additionally, our Board of Directors approved a 14% increase in the quarterly dividend from $0.28 to $0.32 per share effective with the dividend declared in August 2015. We also declared a quarterly dividend of $18.7 million in October 2015 which was paid on December 24, 2015 . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of December 23, 2015 . |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Dec. 23, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for income taxes and interest in the first two quarters of fiscal 2016 and 2015 are as follows (in thousands): December 23, December 24, Income taxes, net of refunds $ 26,966 $ 26,643 Interest, net of amounts capitalized 13,828 13,002 Non-cash investing and financing activities for the first two quarters of fiscal 2016 and 2015 are as follows (in thousands): December 23, December 24, Retirement of fully depreciated assets $ 9,901 $ 25,029 Dividends declared but not paid 18,912 18,403 Accrued capital expenditures 1,283 1,745 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Dec. 23, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of December 23, 2015 and June 24, 2015 , we have outstanding lease guarantees or are secondarily liable for $77.7 million and $98.9 million , respectively. These amounts represent the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 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 December 23, 2015 . Our secondary liability position was reduced by approximately $19.0 million in the first quarter of fiscal 2016 related to the Pepper Dining acquisition. See Note 2 for additional disclosures related to the acquisition. We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of December 23, 2015 , we had $25.2 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. We are engaged in various 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 23, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to the end of the quarter, an additional $20.0 million was borrowed from the revolver for general corporate purposes, including share repurchases. Additionally, we repurchased approximately 1.9 million shares for $91.0 million . |
EFFECT OF NEW ACCOUNTING STANDA
EFFECT OF NEW ACCOUNTING STANDARDS | 6 Months Ended |
Dec. 23, 2015 | |
EFFECT OF NEW ACCOUNTING STANDARDS [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | EFFECT OF NEW ACCOUNTING STANDARDS In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires that entities with a classified balance sheet present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early adoption is permitted for financial statements that have not been previously issued. This update can be applied on either a prospective or retrospective basis. We do not expect the adoption of this update to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of fiscal 2017. Early adoption is permitted for financial statements that have not been previously issued. This update will be applied on a retrospective basis. We do not expect the adoption of this update to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to customers about whether a cloud computing arrangement includes a software license and the related accounting treatment. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of fiscal 2017. Early adoption is permitted for financial statements that have not been previously issued. This update may be applied prospectively for all arrangements entered into or materially modified after the effective date or on a retrospective basis. We do not expect the adoption of this update to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14 delaying the effective date of adoption. This update is now effective for annual and interim periods for fiscal years beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2019. Early application in fiscal 2018 is permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this update will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of this update on our ongoing financial reporting. |
ACQUISITION OF CHILI'S RESTAU18
ACQUISITION OF CHILI'S RESTAURANTS (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
ACQUISITION OF CHILI'S RESTAURANTS [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents (1) $ 6,331 Current deferred income taxes 2,050 Property and equipment 70,576 Goodwill 28,543 Reacquired franchise rights (2) 10,400 Deferred income taxes 10,928 Favorable leases 5,496 Total assets acquired 134,324 Current liabilities 18,065 Unfavorable leases 8,846 Total liabilities assumed 26,911 Net assets acquired (1) $ 107,413 (1) The net assets acquired includes cash and cash equivalents of $1.8 million . (2) The reacquired franchise rights have an amortization period of 12 years . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 23, 2015 December 24, 2014 December 23, 2015 December 24, 2014 Basic weighted average shares outstanding 59,198 63,590 59,712 64,129 Dilutive stock options 314 673 356 663 Dilutive restricted shares 387 700 485 821 701 1,373 841 1,484 Diluted weighted average shares outstanding 59,899 64,963 60,553 65,613 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): December 23, June 24, Revolving credit facility $ 571,250 $ 383,750 3.88% notes 299,781 299,766 2.60% notes 249,917 249,899 Capital lease obligations 39,150 40,849 1,160,098 974,264 Less current installments (3,605 ) (3,439 ) $ 1,156,493 $ 970,825 |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Other Gains and Charges [Abstract] | |
Schedule Of Other Gains And Charges Table | Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 23, December 24, December 23, December 24, Litigation $ (2,032 ) $ 5,800 $ (2,032 ) $ 5,800 Restaurant impairment charges 468 747 525 747 Severance 209 0 2,368 0 Acquisition costs 0 0 580 0 Loss (Gain) on the sale of assets, net 0 1,069 (1,762 ) 1,093 Restaurant closure charges 0 509 0 1,381 Impairment of liquor licenses 0 175 0 175 Other 1,268 (9 ) 1,911 28 $ (87 ) $ 8,291 $ 1,590 $ 9,224 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): December 23, June 24, Sales tax $ 22,990 $ 20,308 Insurance 24,431 22,658 Property tax 17,096 14,224 Dividends 18,719 16,961 Other 38,761 37,046 $ 121,997 $ 111,197 |
Schedule of Other Liabilities | Other liabilities consist of the following (in thousands): December 23, June 24, Straight-line rent $ 58,521 $ 56,345 Insurance 35,809 30,988 Landlord contributions 25,192 24,785 Unfavorable leases 7,197 663 Unrecognized tax benefits 5,008 5,144 Other 7,586 7,108 $ 139,313 $ 125,033 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Nonrecurring | The following table presents fair values for those assets measured at fair value on a non-recurring basis at December 23, 2015 and December 24, 2014 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At December 23, 2015 $ 0 $ 0 $ 0 $ 0 At December 24, 2014 $ 0 $ 0 $ 0 $ 0 Liquor licenses: At December 23, 2015 $ 0 $ 0 $ 0 $ 0 At December 24, 2014 $ 0 $ 50 $ 0 $ 50 Other long-lived assets: At December 23, 2015 $ 0 $ 750 $ 107 $ 857 At December 24, 2014 $ 0 $ 0 $ 0 $ 0 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts and fair values of the 2.60% notes and 3.88% notes are as follows (in thousands): December 23, 2015 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,917 $ 249,173 $ 249,899 $ 250,583 3.88% Notes $ 299,781 $ 289,443 $ 299,766 $ 290,706 |
SUPPLEMENTAL CASH FLOW INFORM24
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Dec. 23, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid for Interest and Income Taxes | Cash paid for income taxes and interest in the first two quarters of fiscal 2016 and 2015 are as follows (in thousands): December 23, December 24, Income taxes, net of refunds $ 26,966 $ 26,643 Interest, net of amounts capitalized 13,828 13,002 |
Non-Cash Investing and Financing Activities | Non-cash investing and financing activities for the first two quarters of fiscal 2016 and 2015 are as follows (in thousands): December 23, December 24, Retirement of fully depreciated assets $ 9,901 $ 25,029 Dividends declared but not paid 18,912 18,403 Accrued capital expenditures 1,283 1,745 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Dec. 23, 2015LocationrestaurantCountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of entity restaurants | restaurant | 1,646 |
Number of countries in which entity operates | Country | 30 |
Number of territories in which entity operates | Location | 2 |
Acquisition of Chili's Restau26
Acquisition of Chili's Restaurants - Additional Information (Details) - USD ($) | Jun. 25, 2015 | Dec. 23, 2015 | Dec. 23, 2015 |
ACQUISITION OF CHILI'S RESTAURANTS [Abstract] | |||
Purchase price excluding customary working capital adjustments | $ 106,500,000 | ||
Cash and customary working capital purchase price adjustments | 900,000 | ||
Goodwill deductible for tax purposes | $ 12,800,000 | $ 12,800,000 | |
Revenue of acquiree since acquisition date, actual | $ 62,200,000 | $ 124,000,000 | |
Average annual revenue per acquired restaurant | 2,500,000 | ||
Average annual royalty revenues lost per acquired restaurant | $ 104,000 |
Acquisition of Chili's Restau27
Acquisition of Chili's Restaurants - Schedule of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | 6 Months Ended | |
Dec. 23, 2015USD ($) | ||
Schedule of Assets Acquired and Liabilities Assumed [Abstract] | ||
Current assets including cash and cash equivalents (1) | $ 6,331 | [1] |
Current deferred income taxes | 2,050 | |
Property and equipment | 70,576 | |
Goodwill | 28,543 | |
Reacquired franchise rights (2) | $ 10,400 | [2] |
Reacquired franchise rights amortization period | 12 years | |
Deferred income taxes | $ 10,928 | |
Favorable leases | 5,496 | |
Total assets acquired | 134,324 | |
Current liabilities | 18,065 | |
Unfavorable leases | 8,846 | |
Total liabilities assumed | 26,911 | |
Net assets acquired (1) | 107,413 | [1] |
Cash and cash equivalents | $ 1,800 | |
[1] | The net assets acquired includes cash and cash equivalents of $1.8 million. | |
[2] | The reacquired franchise rights have an amortization period of 12 years. |
Schedule of Weighted Average Nu
Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Basic weighted average shares outstanding | 59,198,000 | 63,590,000 | 59,712,000 | 64,129,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 701,000 | 1,373,000 | 841,000 | 1,484,000 |
Diluted weighted average shares outstanding | 59,899,000 | 64,963,000 | 60,553,000 | 65,613,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 682,000 | 235,000 | ||
Employee Stock Option [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 314,000 | 673,000 | 356,000 | 663,000 |
Restricted Stock Units (RSUs) [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 387,000 | 700,000 | 485,000 | 821,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 23, 2015 | Jun. 24, 2015 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 39,150 | $ 40,849 |
Long-term debt and capital lease obligations, including current maturities | 1,160,098 | 974,264 |
Less current installments | (3,605) | (3,439) |
Long-term debt, less current installments | 1,156,493 | 970,825 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 299,781 | 299,766 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 249,917 | 249,899 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 571,250 | $ 383,750 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 23, 2015 | Dec. 23, 2015 | Dec. 24, 2014 | |
Line of Credit Facility [Line Items] | |||
Payments on revolving credit facility | $ (20,000,000) | $ 0 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Proceeds from Lines of Credit | 207,500,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000,000 | 750,000,000 | |
Line of Credit Facility, Expiration Date | Mar. 12, 2020 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 178,800,000 | $ 178,800,000 | |
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Minimum [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.375% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.42% |
Other Gains and Charges - Sched
Other Gains and Charges - Schedule of Other Gains and Charges (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 23, 2015 | Sep. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Other Gains and Charges [Abstract] | |||||
Litigation | $ (2,032,000) | $ 5,800,000 | $ (2,032,000) | $ 5,800,000 | |
Restaurant impairment charges | 468,000 | 747,000 | 525,000 | 747,000 | |
Severance | 209,000 | $ 2,200,000 | 0 | 2,368,000 | 0 |
Acquisition costs | 0 | 600,000 | 0 | 580,000 | 0 |
Loss (Gain) on sale of assets | 0 | $ 1,800,000 | 1,069,000 | (1,762,000) | 1,093,000 |
Restaurant closure charges | 0 | 509,000 | 0 | 1,381,000 | |
Impairment of liquor licenses | 0 | 175,000 | 0 | 175,000 | |
Other | 1,268,000 | (9,000) | 1,911,000 | 28,000 | |
Gains And Charges Other | $ (87,000) | $ 8,291,000 | $ 1,590,000 | $ 9,224,000 |
Other Gains and Charges - Addit
Other Gains and Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 23, 2015 | Sep. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Other Gains and Charges [Abstract] | |||||
Litigation | $ (2,032,000) | $ 5,800,000 | $ (2,032,000) | $ 5,800,000 | |
Expenses related to a bankrupt franchisee | 1,200,000 | ||||
Restaurant impairment charges | 468,000 | 747,000 | 525,000 | 747,000 | |
Severance | 209,000 | $ 2,200,000 | 0 | 2,368,000 | 0 |
Acquisition costs | 0 | 600,000 | 0 | 580,000 | 0 |
Loss (Gain) on sale of assets | 0 | $ 1,800,000 | 1,069,000 | (1,762,000) | 1,093,000 |
Impairment of liquor licenses | 0 | 175,000 | 0 | 175,000 | |
Restaurant closure charges | $ 0 | $ 509,000 | $ 0 | $ 1,381,000 |
Accrued and Other Liabilities33
Accrued and Other Liabilities (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 23, 2015 | Jun. 24, 2015 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Sales tax | $ 22,990 | $ 20,308 |
Insurance | 24,431 | 22,658 |
Property tax | 17,096 | 14,224 |
Dividends | 18,719 | 16,961 |
Other | 38,761 | 37,046 |
Other accrued liabilities | $ 121,997 | $ 111,197 |
Accrued and Other Liabilities34
Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 23, 2015 | Jun. 24, 2015 |
Accrued and Other Liabilities (Other Liabilities) [Abstract] | ||
Straight-line rent | $ 58,521 | $ 56,345 |
Insurance | 35,809 | 30,988 |
Landlord contributions | 25,192 | 24,785 |
Unfavorable leases | 7,197 | 663 |
Unrecognized tax benefits | 5,008 | 5,144 |
Other | 7,586 | 7,108 |
Other liabilities | $ 139,313 | $ 125,033 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Fair Value Disclosures [Abstract] | ||||
Carrying value of impaired long lived assets | $ 106,000 | $ 747,000 | ||
Fair value of long-lived assets held for use | $ 0 | $ 0 | 0 | 0 |
Impairment of long-lived assets held-for-use | 106,000 | 747,000 | ||
Impairment of liquor licenses | 0 | 175,000 | 0 | 175,000 |
Carrying value of liquor licenses | 225,000 | |||
Fair value of liquor licenses | 0 | $ 50,000 | 0 | 50,000 |
Goodwill, Impairment Loss | 0 | 0 | ||
Impairment of franchise rights | 0 | $ 0 | ||
Impairment of undeveloped land | 187,000 | |||
Carrying value of undeveloped land | 937,000 | |||
Fair value of undeveloped land | 750,000 | 750,000 | ||
Impairment of capital lease asset | 231,000 | |||
Carrying value of impaired capital lease asset | 338,000 | |||
Fair value of capital lease asset | $ 107,000 | $ 107,000 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Details) - USD ($) | Dec. 23, 2015 | Dec. 24, 2014 |
Fair Value Disclosure [Line Items] | ||
Fair value of long-lived assets held for use | $ 0 | $ 0 |
Fair value of liquor licenses | 0 | 50,000 |
Fair value of other long-lived assets | 857,000 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair value of long-lived assets held for use | 0 | 0 |
Fair value of liquor licenses | 0 | 0 |
Fair value of other long-lived assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair value of long-lived assets held for use | 0 | 0 |
Fair value of liquor licenses | 0 | 50,000 |
Fair value of other long-lived assets | 750,000 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Disclosure [Line Items] | ||
Fair value of long-lived assets held for use | 0 | 0 |
Fair value of liquor licenses | 0 | 0 |
Fair value of other long-lived assets | $ 107,000 | $ 0 |
Fair Value Disclosures (Other F
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 23, 2015 | Jun. 24, 2015 |
2.60% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
Senior notes | $ 249,917 | $ 249,899 |
Long-term Debt, Fair Value | $ 249,173 | 250,583 |
3.88% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |
Senior notes | $ 299,781 | 299,766 |
Long-term Debt, Fair Value | $ 289,443 | $ 290,706 |
Shareholder's Deficit - Additio
Shareholder's Deficit - Additional information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | Jun. 24, 2015 | |
Stockholders' Equity Note [Abstract] | |||||
Increase in share repurchase program | $ 250,000,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 4,185,000,000 | $ 4,185,000,000 | |||
Shares repurchased, shares | 2,800,000 | ||||
Payments for Repurchase of Common Stock | $ 140,089,000 | $ 112,789,000 | |||
Amount available under share repurchase authorizations | $ 477,600,000 | $ 477,600,000 | |||
Stock option, granted | 279,000 | ||||
Stock option, weighted average exercise price | $ 54.11 | ||||
Stock option, weighted average fair value | $ 11.18 | ||||
Restricted share awards, granted | 269,000 | ||||
Restricted share awards, weighted average fair value | $ 49.83 | ||||
Stock option exercised, shares | 65,000 | ||||
Cash proceeds from stock option exercised | $ 1,691,000 | 3,975,000 | |||
Excess tax benefits from stock-based compensation | 4,907,000 | 10,351,000 | |||
Payments of dividends | $ 37,363,000 | $ 35,409,000 | |||
Percentage increase in quarterly dividend declared | 14.00% | ||||
Dividends per share declared | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 | |
Dividends | $ 18,719,000 | $ 18,719,000 | $ 16,961,000 | ||
Dividends Payable, Date to be Paid | Dec. 24, 2015 |
Supplemental Cash Flow Inform39
Supplemental Cash Flow Information - Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 23, 2015 | Dec. 24, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes, net of refunds | $ 26,966 | $ 26,643 |
Interest, net of amounts capitalized | $ 13,828 | $ 13,002 |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 23, 2015 | Dec. 24, 2014 | |
Other Significant Noncash Transactions [Line Items] | ||
Retirement of fully depreciated assets | $ 9,901 | $ 25,029 |
Accrued capital expenditures | 1,283 | 1,745 |
Dividends Payable [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Dividends declared but not paid | $ 18,912 | $ 18,403 |
Contingencies - Additional info
Contingencies - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 23, 2015 | Dec. 23, 2015 | Jun. 24, 2015 | |
Guarantor Obligations [Line Items] | |||
Description of Material Contingencies of Parent Company | No material liabilities have been recorded | ||
Letters of Credit Outstanding, Amount | $ 25,200 | $ 25,200 | |
Lease Guarantees And Secondary Obligations [Member] | |||
Guarantor Obligations [Line Items] | |||
Loss Contingency, Range of Possible Loss, Maximum | 77,700 | 77,700 | $ 98,900 |
Loss contingency, range of possible loss, change to maximum | (19,000) | ||
Loss Contingency, Accrual, Current | $ 0 | $ 0 |
Loss Contingencies (Details)
Loss Contingencies (Details) | Dec. 23, 2015LegalMatter |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 29, 2016 | Dec. 23, 2015 | Dec. 24, 2014 | Dec. 23, 2015 | Dec. 24, 2014 | |
Subsequent Event [Line Items] | |||||
Shares repurchased, shares | 2.8 | ||||
Payments for Repurchase of Common Stock | $ 140,089,000 | $ 112,789,000 | |||
Dividends per share | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 | |
Dividends Payable, Date to be Paid | Dec. 24, 2015 | ||||
Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Lines of Credit | $ 207,500,000 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Shares repurchased, shares | 1.9 | ||||
Payments for Repurchase of Common Stock | $ 91,000,000 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Lines of Credit | $ 20,000,000 |