Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 29, 2016 | Aug. 15, 2016 | Dec. 23, 2015 | |
Document Documentand Entity Information [Abstract] | |||
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 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 29, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 54,924,317 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,523,573,296 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Revenues: | |||
Company sales | $ 3,166,659 | $ 2,904,746 | $ 2,823,069 |
Franchise and other revenues | 90,830 | 97,532 | 86,426 |
Total revenues | 3,257,489 | 3,002,278 | 2,909,495 |
Operating Costs and Expenses: | |||
Cost of sales | 840,204 | 775,063 | 758,028 |
Restaurant labor | 1,036,005 | 929,206 | 905,589 |
Restaurant expenses | 762,663 | 703,334 | 686,314 |
Company restaurant expenses | 2,638,872 | 2,407,603 | 2,349,931 |
Depreciation and amortization | 156,368 | 145,242 | 136,081 |
General and administrative | 127,593 | 133,467 | 132,094 |
Other gains and charges | 17,180 | 4,764 | 49,224 |
Total operating costs and expenses | 2,940,013 | 2,691,076 | 2,667,330 |
Operating income | 317,476 | 311,202 | 242,165 |
Interest expense | 32,574 | 29,006 | 28,091 |
Other, net | (1,485) | (2,081) | (2,214) |
Income before provision for income taxes | 286,387 | 284,277 | 216,288 |
Provision for income taxes | 85,642 | 87,583 | 62,249 |
Net income | $ 200,745 | $ 196,694 | $ 154,039 |
Basic Net Income Per Share: | |||
Basic net income per share (in dollars per share) | $ 3.47 | $ 3.12 | $ 2.33 |
Diluted Net Income Per Share: | |||
Diluted net income per share (in dollars per share) | $ 3.42 | $ 3.05 | $ 2.26 |
Basic weighted average shares outstanding (in shares) | 57,895 | 63,072 | 66,251 |
Diluted weighted average shares outstanding (in shares) | 58,684 | 64,404 | 68,152 |
Other Comprehensive Income (Loss) | |||
Foreign currency translation adjustment | $ (2,964) | $ (7,690) | $ (940) |
Other comprehensive loss | (2,964) | (7,690) | (940) |
Comprehensive income | $ 197,781 | $ 189,004 | $ 153,099 |
Dividends per share | $ 1.28 | $ 1.12 | $ 0.96 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 31,446 | $ 55,121 |
Accounts receivable, net | 43,944 | 46,588 |
Inventories | 25,104 | 23,035 |
Restaurant supplies | 45,455 | 43,968 |
Prepaid expenses | 30,825 | 18,512 |
Total current assets | 176,774 | 187,224 |
Property and Equipment: | ||
Land | 147,626 | 147,763 |
Buildings and leasehold improvements | 1,626,924 | 1,546,957 |
Furniture and equipment | 663,472 | 618,084 |
Construction-in-progress | 23,965 | 15,001 |
Gross property and equipment | 2,461,987 | 2,327,805 |
Less accumulated depreciation and amortization | (1,418,835) | (1,295,761) |
Net property and equipment | 1,043,152 | 1,032,044 |
Other Assets: | ||
Goodwill | 164,007 | 132,381 |
Deferred income taxes, net | 27,003 | 33,137 |
Intangibles | 30,225 | 16,642 |
Other | 31,555 | 34,445 |
Total other assets | 252,790 | 216,605 |
Total assets | 1,472,716 | 1,435,873 |
Current Liabilities: | ||
Current installments of long-term debt | 3,563 | 3,439 |
Accounts payable | 95,414 | 92,947 |
Gift card liability | 122,329 | 114,726 |
Accrued payroll | 70,999 | 82,915 |
Other accrued liabilities | 121,324 | 111,197 |
Income taxes payable | 18,814 | 13,251 |
Total current liabilities | 432,443 | 418,475 |
Long-term debt, less current installments | 1,113,949 | 970,825 |
Other liabilities | 139,423 | 125,033 |
Commitments and Contingencies (Notes 9 and 14) | ||
Shareholders’ Deficit: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 55,420,656 shares outstanding at June 29, 2016 and 176,246,649 shares issued and 60,585,608 shares outstanding at June 24, 2015 | 17,625 | 17,625 |
Additional paid-in capital | 495,110 | 490,111 |
Accumulated other comprehensive loss | (11,594) | (8,630) |
Retained earnings | 2,558,193 | 2,431,683 |
Shareholders' equity including treasury stock | 3,059,334 | 2,930,789 |
Less treasury stock, at cost (120,825,993 shares at June 29, 2016 and 115,661,041 shares at June 24, 2015) | (3,272,433) | (3,009,249) |
Total shareholders’ deficit | (213,099) | (78,460) |
Total liabilities and shareholders’ deficit | $ 1,472,716 | $ 1,435,873 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2016 | 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 | 55,420,656 | 60,585,608 |
Treasury stock, shares | 120,825,993 | 115,661,041 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
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 | 64,559,000 | |||||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 200,745 | 0 | 0 | 200,745 | 0 | 0 |
Other comprehensive loss | (2,964) | 0 | 0 | 0 | 0 | (2,964) |
Dividends | (74,235) | 0 | 0 | (74,235) | 0 | 0 |
Stock-based compensation | 15,207 | 0 | 15,207 | 0 | 0 | 0 |
Purchases of treasury stock | (284,905) | $ 0 | (3,796) | 0 | (281,109) | 0 |
Purchases of treasury stock, shares | (5,842,000) | |||||
Issuances of common stock | 6,147 | $ 0 | (11,778) | 0 | 17,925 | 0 |
Issuances of common stock, shares | 677,000 | |||||
Excess tax benefit from stock-based compensation | $ 5,366 | $ 0 | 5,366 | 0 | 0 | 0 |
Balance, shares at Jun. 29, 2016 | 55,420,656 | 55,421,000 | ||||
Balance at Jun. 29, 2016 | $ (213,099) | $ 17,625 | $ 495,110 | $ 2,558,193 | $ (3,272,433) | $ (11,594) |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Dividends per share | $ 1.28 | $ 1.12 | $ 0.96 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $ 200,745 | $ 196,694 | $ 154,039 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 156,368 | 145,242 | 136,081 |
Litigation reserves | 0 | 0 | 39,500 |
Restructure charges and other impairments | 17,445 | 5,636 | 8,533 |
Deferred income taxes | 21,523 | 13,140 | (23,041) |
Net loss on disposal of assets | 87 | 4,523 | 5,161 |
Stock-based compensation | 15,159 | 14,802 | 16,074 |
Gain on equity investments | (571) | (368) | (328) |
Other | 1,918 | 250 | 707 |
Changes in assets and liabilities: | |||
Accounts receivable | (3,682) | 1,932 | (5,372) |
Inventories | 11 | 475 | 912 |
Prepaid expenses and other | (13,130) | 4,368 | 1,827 |
Intangibles and other assets | 72 | (2,140) | (3,397) |
Current income taxes | 9,928 | 6,284 | 14,087 |
Accounts payable | (5,783) | 1,117 | 3,756 |
Accrued liabilities | (10,013) | (22,595) | 14,617 |
Other liabilities | 4,623 | (749) | (3,314) |
Net cash provided by operating activities | 394,700 | 368,611 | 359,842 |
Cash Flows from Investing Activities: | |||
Payments for property and equipment | (112,788) | (140,262) | (161,066) |
Proceeds from sale of assets | 4,256 | 1,950 | 888 |
Payments for purchase of restaurants | (105,577) | 0 | 0 |
Net cash used in investing activities | (214,109) | (138,312) | (160,178) |
Cash Flows from Financing Activities: | |||
Borrowings on revolving credit facility | 256,500 | 480,750 | 120,000 |
Purchases of treasury stock | (284,905) | (306,255) | (239,597) |
Payments on long-term debt | (3,402) | (189,177) | (26,521) |
Payments on revolving credit facility | (110,000) | (177,000) | (40,000) |
Payments of dividends | (74,066) | (70,832) | (63,395) |
Proceeds from issuances of treasury stock | 6,147 | 16,259 | 29,295 |
Excess tax benefits from stock-based compensation | 5,460 | 15,893 | 18,872 |
Payments for deferred financing costs | 0 | (2,501) | 0 |
Net cash used in financing activities | (204,266) | (232,863) | (201,346) |
Net change in cash and cash equivalents | (23,675) | (2,564) | (1,682) |
Cash and cash equivalents at beginning of year | 55,121 | 57,685 | 59,367 |
Cash and cash equivalents at end of year | $ 31,446 | $ 55,121 | $ 57,685 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 , we owned, operated, or franchised 1,660 restaurants in the United States and 31 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 year 2016 ended on June 29, 2016 and contained 53 weeks. Fiscal years 2015 and 2014 , which ended on June 24, 2015 , and June 25, 2014 , respectively, each contained 52 weeks. The estimated impact of the 53rd week in fiscal 2016 in comparison to fiscal 2015 was an increase in revenue of approximately $58.3 million . While certain expenses increased in direct relationship to additional revenue from the 53rd week, other expenses, such as fixed costs, are incurred on a calendar month basis. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. Prior to the issuance of the standard, deferred tax assets and liabilities were required to be separately classified into a current amount and a noncurrent amount on the balance sheet. The standard is effective for annual periods beginning after December 15, 2016, and early adoption is permitted. We elected to early adopt this guidance as of March 23, 2016 and to apply the guidance retrospectively. Accordingly, we reclassified the current deferred tax asset balance of $2.5 million to noncurrent on the consolidated balance sheet as of June 24, 2015. The reclassification did not have a material effect on our consolidated financial statements. 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, gift card breakage and discounts, tabletop gaming revenue, Chili's retail food product 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 satisfaction of our obligations. 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. We have determined the restaurant level is the lowest level of identifiable cash flows. 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 inherent risk. 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 $93.6 million , $94.3 million and $92.2 million in fiscal 2016 , 2015 , and 2014 , 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 operating segments and reporting units. 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 tests 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 2016 . 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. Non-transferable liquor licenses are reviewed for impairment 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. Transferable liquor licenses are tested for impairment semi-annually or more frequently if events or circumstances indicate that the asset might be impaired. Impairment charges are recognized based on the excess of carrying value over 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 that is not more-likely-than-not to be realized. We recognize any interest and penalties related to unrecognized tax benefits in income tax expense. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. (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. 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 compared to a peer group at the end of a three-year cycle. The fair value of performance shares, which contain a market condition, 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 $15.2 million , $15.0 million and $16.9 million for fiscal 2016 , 2015 and 2014 , respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income related to stock-based compensation expense was approximately $5.8 million , $5.5 million and $6.9 million during fiscal 2016 , 2015 and 2014 , respectively. The weighted average fair values of option grants were $10.48 , $11.72 and $14.75 during fiscal 2016 , 2015 and 2014 , respectively. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: 2016 2015 2014 Expected volatility 27.5 % 31.0 % 47.7 % Risk-free interest rate 1.5 % 1.6 % 1.6 % Expected lives 5 years 5 years 5 years Dividend yield 2.4 % 2.2 % 2.2 % 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 29, 2016 , no preferred shares were issued. (s) 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 5.8 million shares of our common stock for $284.9 million during fiscal 2016 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 29, 2016 , approximately $333.0 million was available under our share repurchase authorizations. Repurchased common stock is reflected as a reduction of shareholders’ equity. During fiscal 2016 , approximately 234,000 stock options were exercised resulting in cash proceeds of $6.1 million . We paid dividends of $74.1 million to common stock shareholders during fiscal 2016 , compared to $70.8 million in the prior year. Additionally, we declared a quarterly dividend of approximately $17.8 million , or $0.32 per share, in May 2016 which was paid on June 30, 2016 . (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 2016 , 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 the sale or upon complete or substantially complete liquidation of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. (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. Stock options and restricted share awards with an anti-dilutive effect are not included in the dilutive earnings per share calculation. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): 2016 2015 2014 Basic weighted average shares outstanding 57,895 63,072 66,251 Dilutive stock options 316 569 853 Dilutive restricted shares 473 763 1,048 789 1,332 1,901 Diluted weighted average shares outstanding 58,684 64,404 68,152 Awards excluded due to anti-dilutive effect on earnings per share 550 119 113 (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 operating performance. We manage our business on the basis of two operating segments, Chili’s and Maggiano’s. The brands operate company-owned restaurants principally in the U.S. within the full-service casual dining segment of the industry. The Chili's segment also has franchised locations in 31 countries and two U.S. territories. Beginning in fiscal 2016, we have separately reported information about each brand. Prior to fiscal 2016, we aggregated our two operating segments into one reportable segment. Additional information about our segments, including financial information, is included in Note 15. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Jun. 29, 2016 | |
Business Combinations [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. During the third quarter of fiscal 2016, we finalized the valuation of the acquired assets and liabilities associated with the Pepper Dining acquisition. The final fair value analysis resulted in a reduction of the recorded amounts for property and equipment of approximately $6.0 million and current liabilities of approximately $0.2 million on the consolidated balance sheet. The fair value reduction associated with property and equipment also resulted in a decrease of approximately $2.4 million in the deferred income tax liability associated with the assets. The change in these amounts resulted in a corresponding net increase to goodwill of approximately $3.4 million . We do not expect any further adjustments to the Pepper Dining purchase price allocation. The final allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents (a) $ 6,331 Property and equipment 64,532 Goodwill 31,912 Reacquired franchise rights (b) 10,400 Deferred income taxes 15,388 Favorable leases 5,496 Total assets acquired 134,059 Current liabilities 17,800 Unfavorable leases 8,846 Total liabilities assumed 26,646 Net assets acquired (a) $ 107,413 (a) The net assets acquired includes cash and cash equivalents of $1.8 million . (b) 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 $259.6 million of revenue for the fifty-three week period ended June 29, 2016, approximately $2.5 million of average annual revenue per restaurant, 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. |
EQUITY METHOD INVESTMENT
EQUITY METHOD INVESTMENT | 12 Months Ended |
Jun. 29, 2016 | |
Disclosure Investments And Other Dispositions Narrative [Abstract] | |
EQUITY METHOD INVESTMENT | EQUITY METHOD INVESTMENT We have a joint venture agreement with CMR, S.A.B. de C.V. to develop 50 Chili’s restaurants in Mexico. At June 29, 2016 , 40 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. |
OTHER GAINS AND CHARGES
OTHER GAINS AND CHARGES | 12 Months Ended |
Jun. 29, 2016 | |
Disclosure Other Gains And Charges [Abstract] | |
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): 2016 2015 2014 Restaurant impairment charges $ 10,651 $ 2,255 $ 4,502 Restaurant closure charges 3,780 1,736 3,413 Severance and other benefits 3,304 1,182 2,140 Litigation (3,191 ) (2,753 ) 39,500 (Gain) loss on the sale of assets, net (2,858 ) 1,093 (608 ) Impairment of investment 1,000 0 0 Acquisition costs 700 1,100 0 Impairment of intangible assets 392 645 0 Other 3,402 (494 ) 277 $ 17,180 $ 4,764 $ 49,224 Fiscal 2016 During fiscal 2016, we recorded impairment charges of $10.7 million primarily related to seven underperforming restaurants that either continue to operate or are scheduled to close and $1.0 million related to a cost method investment. Restaurant closure charges of $3.8 million primarily consists of additional lease and other costs associated with closed restaurants. We also incurred $3.3 million in severance and other benefits related to organizational changes. We were a plantiff 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. We also received net proceeds of $1.2 million from British Petroleum in the fourth quarter of fiscal 2016 related to the 2010 Gulf of Mexico oil spill judgment. Additionally, we recorded a $2.9 million gain on the sale of several properties and $0.7 million of transaction costs related to the acquisition of Pepper Dining. Other charges primarily include $1.4 million of expenses to reserve for royalties, rents and other outstanding amounts related to a bankrupt franchisee and $1.2 million of professional service fees associated with organizational changes. Fiscal 2015 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 . Also 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 in fiscal 2017. 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 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. We also incurred expenses of approximately $1.1 million during fiscal 2015 related to the acquisition of Pepper Dining subsequent to the end of the year. Fiscal 2014 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 in fiscal 2017. 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. 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 AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Chili's Maggiano's Consolidated Chili's Maggiano's Consolidated Balance at beginning of year $ 93,984 $ 38,397 $ 132,381 $ 95,037 $ 38,397 $ 133,434 Changes in goodwill: Additions (a) 31,912 0 31,912 0 0 0 Foreign currency translation adjustment (286 ) 0 (286 ) (1,053 ) 0 (1,053 ) Balance at end of year $ 125,610 $ 38,397 $ 164,007 $ 93,984 $ 38,397 $ 132,381 ____________________________________________________________________ (a) Additions reflect the goodwill acquired as a result of the acquisition of Pepper Dining. See Note 2 for additional disclosures. Intangible assets, net for the fiscal years ended June 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Chili's reacquired franchise rights (a) $ 17,284 $ (3,041 ) $ 14,243 $ 7,423 $ (1,625 ) $ 5,798 Chili's other (b) 5,988 (713 ) 5,275 804 (358 ) 446 $ 23,272 $ (3,754 ) $ 19,518 $ 8,227 $ (1,983 ) $ 6,244 Indefinite-lived intangible assets Chili's liquor licenses $ 9,775 $ 9,466 Maggiano's liquor licenses 932 932 $ 10,707 $ 10,398 Amortization expense for all definite-lived intangible assets was $1.5 million , $0.8 million and $1.0 million in fiscal 2016, 2015 and 2014, respectively. Annual amortization expense for definite-lived intangible assets will approximate $1.5 million for the next five fiscal years. ____________________________________________________________________ (a) The increase in the gross carrying amount reflects an additional $10.4 million of reacquired franchise rights from the acquisition of Pepper Dining. See Note 2 for additional disclosures. Additionally, the gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $0.3 million and $1.0 million for fiscal 2016 and 2015, respectively. We also recorded an impairment charge of $0.2 million and $0.4 million in fiscal 2016 and fiscal 2015, respectively. See Note 10 for additional disclosures. (b) The increase in the gross carrying amount reflects an additional $5.5 million of favorable lease assets from the acquisition of Pepper Dining. See Note 2 for additional disclosures. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Jun. 29, 2016 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): 2016 2015 Sales tax $ 26,280 $ 20,308 Insurance 19,976 22,658 Property tax 15,762 14,224 Dividends 17,760 16,961 Other 41,546 37,046 $ 121,324 $ 111,197 Other liabilities consist of the following (in thousands): 2016 2015 Straight-line rent $ 56,896 $ 56,345 Insurance 38,433 30,988 Landlord contributions 24,681 24,785 Unfavorable leases 6,521 663 Unrecognized tax benefits 5,811 5,144 Other 7,081 7,108 $ 139,423 $ 125,033 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following (in thousands): 2016 2015 2014 Current income tax expense: Federal $ 48,049 $ 59,726 $ 66,170 State 12,203 11,862 15,219 Foreign 3,497 3,319 3,550 Total current income tax expense 63,749 74,907 84,939 Deferred income tax (benefit) expense: Federal 21,023 10,754 (18,715 ) State 885 2,018 (4,087 ) Foreign (15 ) (96 ) 112 Total deferred income tax (benefit) expense 21,893 12,676 (22,690 ) $ 85,642 $ 87,583 $ 62,249 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): 2016 2015 2014 Income tax expense at statutory rate $ 100,236 $ 99,497 $ 75,701 FICA tax credit (20,497 ) (18,633 ) (18,116 ) State income taxes, net of Federal benefit 11,102 8,646 7,636 Other (5,199 ) (1,927 ) (2,972 ) $ 85,642 $ 87,583 $ 62,249 The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Deferred income tax assets: Leasing transactions $ 32,132 $ 30,928 Stock-based compensation 12,817 13,105 Restructure charges and impairments 2,439 2,303 Insurance reserves 18,015 18,567 Employee benefit plans 501 470 Gift cards 19,948 18,499 State net operating losses 16,120 16,521 Federal credit carryover 14,722 0 State credit carryover 4,981 4,538 Other, net 6,987 9,804 Less: Valuation allowance (18,407 ) (21,059 ) Total deferred income tax assets 110,255 93,676 Deferred income tax liabilities: Prepaid expenses 17,360 16,803 Goodwill and other amortization 29,884 27,713 Depreciation and capitalized interest on property and equipment 31,626 12,060 Other, net 4,382 3,963 Total deferred income tax liabilities 83,252 60,539 Net deferred income tax asset $ 27,003 $ 33,137 The valuation allowance decreased by $2.7 million in fiscal 2016 to recognize certain state net operating loss benefits management believes are more-likely-than-not to be realized. No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries’ earnings. The cumulative earnings were approximately $5.2 million as of June 29, 2016. It is not practicable to estimate the amount of tax that might be payable because our intent is to permanently reinvest these earnings or to repatriate earnings when it is tax effective to do so. A reconciliation of unrecognized tax benefits for the fiscal years ended June 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Balance at beginning of year $ 6,088 $ 7,375 Additions based on tax positions related to the current year 1,761 760 Additions based on tax positions related to prior years 1,062 18 Settlements with tax authorities (2,290 ) (371 ) Expiration of statute of limitations (810 ) (1,694 ) Balance at end of year $ 5,811 $ 6,088 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 $3.9 million and $4.1 million as of June 29, 2016 and June 24, 2015 , 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 ( $0.5 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 2016, we recognized approximately $1.3 million in interest expense. During fiscal 2015 and 2014, we recognized expenses of approximately $0.2 million and $0.3 million , respectively, in interest due to the reduction of accrued interest from statute expirations and settlements, net of accrued interest for remaining positions. As of June 29, 2016 , we had $0.8 million ( $0.6 million net of a $0.2 million Federal deferred tax benefit) of interest and penalties accrued, compared to $2.2 million ( $1.5 million net of a $0.7 million Federal deferred tax benefit) at June 24, 2015 . |
DEBT
DEBT | 12 Months Ended |
Jun. 29, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consists of the following (in thousands): 2016 2015 Revolving credit facility $ 530,250 $ 383,750 3.88% notes 299,796 299,766 2.60% notes 249,934 249,899 Capital lease obligations (see Note 9) 37,532 40,849 1,117,512 974,264 Less current installments (3,563 ) (3,439 ) $ 1,113,949 $ 970,825 During fiscal 2016 , $256.5 million was drawn from the $750 million revolving credit facility primarily to fund the acquisition of Pepper Dining and for share repurchases. We repaid a total of $110.0 million during fiscal 2016. 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 1.18% for a total of 1.64% . One month LIBOR at June 29, 2016 was approximately 0.46% . As of June 29, 2016 , $219.8 million of credit is available under the revolving credit facility. During the first nine months of fiscal 2015, $97.0 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. 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 29, 2016 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2017 $ 0 2018 249,934 2019 0 2020 530,250 2021 0 Thereafter 299,796 $ 1,079,980 |
LEASES
LEASES | 12 Months Ended |
Jun. 29, 2016 | |
Leases [Abstract] | |
LEASES | LEASES (a) Capital Leases We lease certain buildings under capital leases. The asset value of $38.8 million and $39.0 million at June 29, 2016 and June 24, 2015 , and the related accumulated amortization of $24.1 million and $22.1 million at June 29, 2016 and June 24, 2015 , respectively, are included in buildings and leasehold improvements. 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 2035. 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): 2016 2015 2014 Straight-lined minimum rent $ 107,776 $ 92,917 $ 90,574 Contingent rent 4,408 4,774 4,737 Other 11,283 9,998 9,817 Total rent expense $ 123,467 $ 107,689 $ 105,128 (c) Commitments As of June 29, 2016 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2017 $ 5,954 $ 123,312 2018 5,745 116,418 2019 5,226 95,276 2020 4,853 80,881 2021 4,138 66,293 Thereafter 27,977 156,563 Total minimum lease payments(a) 53,893 $ 638,743 Imputed interest (average rate of 7%) (16,361 ) Present value of minimum lease payments 37,532 Less current installments (3,563 ) $ 33,969 ____________________________________________________________________ (a) Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. The total of undiscounted future sublease rentals are approximately $25.5 million and $47.1 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Jun. 29, 2016 | |
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 fair value may not exceed the carrying amount. 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 inherent risk. Based on our semi-annual review, during fiscal 2016, long-lived assets with a carrying value of $7.0 million , primarily related to five underperforming restaurants, were written down to their fair value of $0.2 million resulting in an impairment charge of $6.8 million . During the third quarter of fiscal 2016, two restaurants were identified for closure by management with a combined carrying value of $3.4 million . We determined these restaurants had no fair value resulting in an impairment charge of $3.4 million . In 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 . We determine the fair value of transferable liquor licenses based on prices in the open market for licenses in the same or similar jurisdictions. During fiscal 2016, four transferable liquor licenses with a carrying value of $1.1 million were written down to the fair value of $0.9 million resulting in an impairment charge of $0.2 million . In 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 . 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 2016, 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 three restaurants purchased as part of the acquisition of Pepper Dining were fully impaired which indicated that the related reacquired franchise rights had no fair value resulting in an impairment charge of $0.2 million . 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 2016, we recorded an impairment charge of $0.2 million related to a parcel of undeveloped land that we own. The land had a carrying value of $1.0 million and was written down to the fair value of $0.8 million . The fair value was based on the sales price of comparable properties. Additionally, we recorded an impairment charge of $0.2 million related to a capital lease asset that is subleased to a franchisee. The capital lease asset had a carrying value of $0.3 million and was written down to the fair value of $0.1 million . The fair value of the capital lease asset is based on discounted projected future cash flows from the sublease. We also recorded an impairment charge of $1.0 million related to a cost method investment which we determined to have no fair value. 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 June 29, 2016 and June 24, 2015 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 29, 2016 $ 0 $ 0 $ 208 $ 208 At June 24, 2015 $ 0 $ 0 $ 0 $ 0 Liquor licenses: At June 29, 2016 $ 0 $ 857 $ 0 $ 857 At June 24, 2015 $ 0 $ 550 $ 0 $ 550 Reacquired franchise rights: At June 29, 2016 $ 0 $ 0 $ 0 $ 0 At June 24, 2015 $ 0 $ 0 $ 0 $ 0 Other long-lived assets: At June 29, 2016 $ 0 $ 750 $ 107 $ 857 At June 24, 2015 $ 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): June 29, 2016 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,934 $ 252,445 $ 249,899 $ 250,583 3.88% Notes $ 299,796 $ 302,655 $ 299,766 $ 290,706 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 29, 2016 | |
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”). 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 2016 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 24, 2015 1,173 $ 33.08 Granted 347 52.71 Exercised (234 ) 26.23 Forfeited or canceled (69 ) 48.58 Options outstanding at June 29, 2016 1,217 $ 39.12 4.7 $ 12,074 Options exercisable at June 29, 2016 608 $ 28.29 3.2 $ 11,285 At June 29, 2016 , unrecognized compensation expense related to stock options totaled approximately $2.4 million and will be recognized over a weighted average period of 1.6 years. The intrinsic value of options exercised totaled approximately $5.3 million , $28.1 million and $25.7 million during fiscal 2016 , 2015 and 2014 , respectively. The tax benefit realized on options exercised totaled approximately $1.6 million , $9.2 million and $8.9 million during fiscal 2016 , 2015 and 2014 , 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 2016 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 24, 2015 1,159 $ 38.44 Granted 324 49.19 Vested (402 ) 39.09 Forfeited (83 ) 44.44 Restricted share awards outstanding at June 29, 2016 998 $ 42.68 At June 29, 2016 , unrecognized compensation expense related to restricted share awards totaled approximately $13.9 million and will be recognized over a weighted average period of 2.1 years. The fair value of shares that vested during fiscal 2016 , 2015 and 2014 totaled approximately $23.9 million , $34.2 million and $42.2 million , respectively. |
SAVINGS PLANS
SAVINGS PLANS | 12 Months Ended |
Jun. 29, 2016 | |
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 2016 , 2015 and 2014 , we contributed approximately $8.9 million , $8.0 million and $7.4 million , respectively. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Jun. 29, 2016 | |
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): 2016 2015 2014 Income taxes, net of refunds $ 45,743 $ 50,437 $ 48,379 Interest, net of amounts capitalized 28,989 26,190 25,476 Non-cash investing and financing activities are as follows (in thousands): 2016 2015 2014 Retirement of fully depreciated assets $ 24,806 $ 40,775 $ 64,420 Dividends declared but not paid 18,442 18,132 17,250 Accrued capital expenditures 7,094 4,109 15,703 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 and June 24, 2015 , we have outstanding lease guarantees or are secondarily liable for $72.9 million and $98.9 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 2017 through fiscal 2024. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of June 29, 2016 , as the likelihood of default by the buyers on the assignment agreements was deemed to be less than probable. 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 June 29, 2016 , we had $28.1 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. The parties reached a settlement agreement and 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 29, 2016 | |
Segment Information [Abstract] | |
Segment Reporting Disclosure | SEGMENT INFORMATION Our operating segments are Chili's and Maggiano's. The Chili’s segment includes the results of our company-owned Chili’s restaurants in the U.S. and Canada as well as the results from our domestic and international franchise business. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants. Company sales are derived principally from the sales of food and beverages. Franchise and other revenues primarily includes royalties, development fees, franchise fees, banquet service charge income, gift card breakage and discounts, tabletop device revenue, Chili's retail food product royalties and delivery fee income. We do not rely on any major customers as a source of sales and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments. Our chief operating decision maker uses operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Operational expenses include food and beverage costs, restaurant labor costs and restaurant expenses. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands): Fiscal Year Ended June 29, 2016 Chili's Maggiano's Other Consolidated Company sales $ 2,754,904 $ 411,755 $ 0 $ 3,166,659 Franchise and other revenues 68,484 22,346 0 90,830 Total revenues 2,823,388 434,101 0 3,257,489 Operational expenses (a) 2,272,771 364,466 1,635 2,638,872 Depreciation and amortization 131,306 15,046 10,016 156,368 General and administrative 35,845 6,225 85,523 127,593 Other gains and charges 6,973 3,472 6,735 17,180 Total operating costs and expenses 2,446,895 389,209 103,909 2,940,013 Operating income $ 376,493 $ 44,892 $ (103,909 ) $ 317,476 Segment assets $ 1,218,009 $ 163,753 $ 90,954 $ 1,472,716 Equity method investment (b) 10,257 0 0 10,257 Payments for property and equipment 80,277 17,540 14,971 112,788 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. (b) The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures. Fiscal Year Ended June 24, 2015 Chili's Maggiano's Other Consolidated Company sales $ 2,503,133 $ 401,613 $ 0 $ 2,904,746 Franchise and other revenues 75,860 21,672 0 97,532 Total revenues 2,578,993 423,285 0 3,002,278 Operational expenses (a) 2,044,521 360,903 2,179 2,407,603 Depreciation and amortization 122,093 14,233 8,916 145,242 General and administrative 37,131 6,722 89,614 133,467 Other gains and charges 600 (1,009 ) 5,173 4,764 Total operating costs and expenses 2,204,345 380,849 105,882 2,691,076 Operating income $ 374,648 $ 42,436 $ (105,882 ) $ 311,202 Segment assets $ 1,141,025 $ 161,283 $ 133,565 $ 1,435,873 Equity method investment (b) 11,801 0 0 11,801 Payments for property and equipment 114,416 14,408 11,438 140,262 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. (b) The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures. Fiscal Year Ended June 25, 2014 Chili's Maggiano's Other Consolidated Company sales $ 2,443,950 $ 379,119 $ 0 $ 2,823,069 Franchise and other revenues 65,364 21,062 0 86,426 Total revenues 2,509,314 400,181 0 2,909,495 Operational expenses (a) 2,005,795 341,870 2,266 2,349,931 Depreciation and amortization 112,809 13,323 9,949 136,081 General and administrative 34,693 7,145 90,256 132,094 Other gains and charges 6,412 1,052 41,760 49,224 Total operating costs and expenses 2,159,709 363,390 144,231 2,667,330 Operating income $ 349,605 $ 36,791 $ (144,231 ) $ 242,165 Payments for property and equipment $ 141,709 $ 14,284 $ 5,073 $ 161,066 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. Reconciliation of operating income to income before provision for income taxes: Fiscal Years Ended June 29, 2016 June 24, 2015 June 25, 2014 Operating income $ 317,476 $ 311,202 $ 242,165 Less interest expense (32,574 ) (29,006 ) (28,091 ) Plus other, net 1,485 2,081 2,214 Income before provision for income taxes $ 286,387 $ 284,277 $ 216,288 |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Jun. 29, 2016 | |
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 2016 and 2015 (in thousands, except per share amounts): Fiscal Year 2016 Quarters Ended Sept. 23 Dec. 23 March 23 June 29 Revenues $ 762,559 $ 788,610 $ 824,639 $ 881,681 Income before provision for income taxes $ 48,753 $ 68,272 $ 78,150 $ 91,212 Net income $ 33,207 $ 47,694 $ 57,502 $ 62,342 Basic net income per share $ 0.55 $ 0.81 $ 1.01 $ 1.12 Diluted net income per share $ 0.54 $ 0.80 $ 1.00 $ 1.11 Basic weighted average shares outstanding 60,225 59,198 56,673 55,657 Diluted weighted average shares outstanding 61,208 59,899 57,407 56,394 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 Net income for fiscal 2016 included restaurant impairment charges of $0.5 million , $3.4 million and $6.7 million recorded in the second, third and fourth quarters, respectively. We also recorded additional lease and other costs associated with closed restaurants of $3.8 million in the fourth quarter of fiscal 2016 related to restaurants closed in prior years. Severance charges of $2.2 million , $0.2 million and $0.9 million were incurred in the first, second and fourth quarters of fiscal 2016, respectively. We incurred expenses of $1.2 million and $0.2 million in the second and fourth quarters, respectively, to reserve for royalties, rent and other outstanding amounts related to a bankrupt franchisee. Additionally, we recorded charges of $0.6 million and $0.1 million in the first and third quarters of fiscal 2016, respectively, for acquisition costs incurred as part of completing the acquisition of Pepper Dining. Net income also included net gains of $2.0 million and $1.2 million related to litigation in the second and fourth quarters, respectively. We also recorded gains on the sale of several properties of $1.8 million and $1.1 million in the first and third quarters of fiscal 2016, respectively. 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 Pepper Dining. Long-lived asset impairment charges 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, respectively, 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, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 29, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to the end of the fiscal year, an additional $70.0 million was borrowed from the $750 million revolving credit facility primarily to fund share repurchases. We also made a $20.0 million payment on the revolving credit facility. Subsequent to the end of the fiscal year, we repurchased 699,000 shares for approximately $33.7 million as part of our share repurchase program. We also repurchased approximately 51,000 shares for $2.8 million to satisfy team member tax withholding obligations on the vesting of primarily restricted stock units. On August 18, 2016 , our Board of Directors declared a quarterly dividend of $0.34 per share effective with the September 2016 dividend. |
EFFECT OF NEW ACCOUNTING STANDA
EFFECT OF NEW ACCOUNTING STANDARDS | 12 Months Ended |
Jun. 29, 2016 | |
Effect of New Accounting Standards [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | EFFECT OF NEW ACCOUNTING STANDARDS In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. 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 will be applied either prospectively, retrospectively or using a cumulative effect transition method, depending on the area covered in this update. We have not yet determined the effect of this update on our ongoing financial reporting. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The update also requires additional disclosures about the amount, timing, and uncertainty of cash flows arising from leases. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2018, which will require us to adopt these provisions in the first quarter of fiscal 2020. Early adoption is permitted for financial statements that have not been previously issued. This update will be applied on a modified retrospective basis. We have not yet determined the effect of this update on our ongoing financial reporting. 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. The adoption of this update will not have a material impact on our consolidated financial statements. Our current balance of debt issuance costs was approximately $3.3 million at the end of fiscal 2016. 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). The FASB has subsequently amended this update by issuing additional ASU's that provide clarification and further guidance around areas identified as potential implementation issues. These updates provide 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. These updates also require 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. These updates are 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. These updates permit the use of either the retrospective or cumulative effect transition method. We do not believe the standard will impact our recognition of revenue from company-owned restaurants or our recognition of royalty fees from franchisees. We are continuing to evaluate the impact the adoption of this standard will have on the recognition of other less significant revenue transactions. |
NATURE OF OPERATIONS AND SUMM26
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 , we owned, operated, or franchised 1,660 restaurants in the United States and 31 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 year 2016 ended on June 29, 2016 and contained 53 weeks. Fiscal years 2015 and 2014 , which ended on June 24, 2015 , and June 25, 2014 , respectively, each contained 52 weeks. The estimated impact of the 53rd week in fiscal 2016 in comparison to fiscal 2015 was an increase in revenue of approximately $58.3 million . While certain expenses increased in direct relationship to additional revenue from the 53rd week, other expenses, such as fixed costs, are incurred on a calendar month basis. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. Prior to the issuance of the standard, deferred tax assets and liabilities were required to be separately classified into a current amount and a noncurrent amount on the balance sheet. The standard is effective for annual periods beginning after December 15, 2016, and early adoption is permitted. We elected to early adopt this guidance as of March 23, 2016 and to apply the guidance retrospectively. Accordingly, we reclassified the current deferred tax asset balance of $2.5 million to noncurrent on the consolidated balance sheet as of June 24, 2015. The reclassification did not have a material effect on our consolidated financial statements. 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, gift card breakage and discounts, tabletop gaming revenue, Chili's retail food product 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 satisfaction of our obligations. 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. We have determined the restaurant level is the lowest level of identifiable cash flows. 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 inherent risk. 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 $93.6 million , $94.3 million and $92.2 million in fiscal 2016 , 2015 , and 2014 , 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 operating segments and reporting units. 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 tests 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 2016 . 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. |
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. Non-transferable liquor licenses are reviewed for impairment 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. Transferable liquor licenses are tested for impairment semi-annually or more frequently if events or circumstances indicate that the asset might be impaired. Impairment charges are recognized based on the excess of carrying value over 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. We record a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return that is not more-likely-than-not to be realized. We recognize any interest and penalties related to unrecognized tax benefits in income tax expense. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. |
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. 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 compared to a peer group at the end of a three-year cycle. The fair value of performance shares, which contain a market condition, 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 29, 2016 , no preferred shares were issued. |
Shareholders' Deficit | (s) 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 5.8 million shares of our common stock for $284.9 million during fiscal 2016 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 29, 2016 , approximately $333.0 million was available under our share repurchase authorizations. Repurchased common stock is reflected as a reduction of shareholders’ equity. During fiscal 2016 , approximately 234,000 stock options were exercised resulting in cash proceeds of $6.1 million . We paid dividends of $74.1 million to common stock shareholders during fiscal 2016 , compared to $70.8 million in the prior year. Additionally, we declared a quarterly dividend of approximately $17.8 million , or $0.32 per share, in May 2016 which was paid on June 30, 2016 . |
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 2016 , 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 the sale or upon complete or substantially complete liquidation of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. |
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. Stock options and restricted share awards with an anti-dilutive effect are not included in the dilutive earnings per share calculation. |
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 operating performance. We manage our business on the basis of two operating segments, Chili’s and Maggiano’s. The brands operate company-owned restaurants principally in the U.S. within the full-service casual dining segment of the industry. The Chili's segment also has franchised locations in 31 countries and two U.S. territories. Beginning in fiscal 2016, we have separately reported information about each brand. Prior to fiscal 2016, we aggregated our two operating segments into one reportable segment. Additional information about our segments, including financial information, is included in Note 15. |
NATURE OF OPERATIONS AND SUMM27
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
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: 2016 2015 2014 Expected volatility 27.5 % 31.0 % 47.7 % Risk-free interest rate 1.5 % 1.6 % 1.6 % Expected lives 5 years 5 years 5 years Dividend yield 2.4 % 2.2 % 2.2 % 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): 2016 2015 2014 Basic weighted average shares outstanding 57,895 63,072 66,251 Dilutive stock options 316 569 853 Dilutive restricted shares 473 763 1,048 789 1,332 1,901 Diluted weighted average shares outstanding 58,684 64,404 68,152 Awards excluded due to anti-dilutive effect on earnings per share 550 119 113 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents (a) $ 6,331 Property and equipment 64,532 Goodwill 31,912 Reacquired franchise rights (b) 10,400 Deferred income taxes 15,388 Favorable leases 5,496 Total assets acquired 134,059 Current liabilities 17,800 Unfavorable leases 8,846 Total liabilities assumed 26,646 Net assets acquired (a) $ 107,413 (a) The net assets acquired includes cash and cash equivalents of $1.8 million . (b) The reacquired franchise rights have an amortization period of 12 years . |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Disclosure Other Gains And Charges [Abstract] | |
Schedule Of Other Gains And Charges | Other gains and charges consist of the following (in thousands): 2016 2015 2014 Restaurant impairment charges $ 10,651 $ 2,255 $ 4,502 Restaurant closure charges 3,780 1,736 3,413 Severance and other benefits 3,304 1,182 2,140 Litigation (3,191 ) (2,753 ) 39,500 (Gain) loss on the sale of assets, net (2,858 ) 1,093 (608 ) Impairment of investment 1,000 0 0 Acquisition costs 700 1,100 0 Impairment of intangible assets 392 645 0 Other 3,402 (494 ) 277 $ 17,180 $ 4,764 $ 49,224 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Chili's Maggiano's Consolidated Chili's Maggiano's Consolidated Balance at beginning of year $ 93,984 $ 38,397 $ 132,381 $ 95,037 $ 38,397 $ 133,434 Changes in goodwill: Additions (a) 31,912 0 31,912 0 0 0 Foreign currency translation adjustment (286 ) 0 (286 ) (1,053 ) 0 (1,053 ) Balance at end of year $ 125,610 $ 38,397 $ 164,007 $ 93,984 $ 38,397 $ 132,381 ____________________________________________________________________ (a) Additions reflect the goodwill acquired as a result of the acquisition of Pepper Dining. See Note 2 for additional disclosures. |
Schedule of Intangible Assets | Intangible assets, net for the fiscal years ended June 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Chili's reacquired franchise rights (a) $ 17,284 $ (3,041 ) $ 14,243 $ 7,423 $ (1,625 ) $ 5,798 Chili's other (b) 5,988 (713 ) 5,275 804 (358 ) 446 $ 23,272 $ (3,754 ) $ 19,518 $ 8,227 $ (1,983 ) $ 6,244 Indefinite-lived intangible assets Chili's liquor licenses $ 9,775 $ 9,466 Maggiano's liquor licenses 932 932 $ 10,707 $ 10,398 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): 2016 2015 Sales tax $ 26,280 $ 20,308 Insurance 19,976 22,658 Property tax 15,762 14,224 Dividends 17,760 16,961 Other 41,546 37,046 $ 121,324 $ 111,197 |
Other Liabilities | Other liabilities consist of the following (in thousands): 2016 2015 Straight-line rent $ 56,896 $ 56,345 Insurance 38,433 30,988 Landlord contributions 24,681 24,785 Unfavorable leases 6,521 663 Unrecognized tax benefits 5,811 5,144 Other 7,081 7,108 $ 139,423 $ 125,033 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes From Continuing Operations | The provision for income taxes consists of the following (in thousands): 2016 2015 2014 Current income tax expense: Federal $ 48,049 $ 59,726 $ 66,170 State 12,203 11,862 15,219 Foreign 3,497 3,319 3,550 Total current income tax expense 63,749 74,907 84,939 Deferred income tax (benefit) expense: Federal 21,023 10,754 (18,715 ) State 885 2,018 (4,087 ) Foreign (15 ) (96 ) 112 Total deferred income tax (benefit) expense 21,893 12,676 (22,690 ) $ 85,642 $ 87,583 $ 62,249 |
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): 2016 2015 2014 Income tax expense at statutory rate $ 100,236 $ 99,497 $ 75,701 FICA tax credit (20,497 ) (18,633 ) (18,116 ) State income taxes, net of Federal benefit 11,102 8,646 7,636 Other (5,199 ) (1,927 ) (2,972 ) $ 85,642 $ 87,583 $ 62,249 |
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 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Deferred income tax assets: Leasing transactions $ 32,132 $ 30,928 Stock-based compensation 12,817 13,105 Restructure charges and impairments 2,439 2,303 Insurance reserves 18,015 18,567 Employee benefit plans 501 470 Gift cards 19,948 18,499 State net operating losses 16,120 16,521 Federal credit carryover 14,722 0 State credit carryover 4,981 4,538 Other, net 6,987 9,804 Less: Valuation allowance (18,407 ) (21,059 ) Total deferred income tax assets 110,255 93,676 Deferred income tax liabilities: Prepaid expenses 17,360 16,803 Goodwill and other amortization 29,884 27,713 Depreciation and capitalized interest on property and equipment 31,626 12,060 Other, net 4,382 3,963 Total deferred income tax liabilities 83,252 60,539 Net deferred income tax asset $ 27,003 $ 33,137 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits for the fiscal years ended June 29, 2016 and June 24, 2015 are as follows (in thousands): 2016 2015 Balance at beginning of year $ 6,088 $ 7,375 Additions based on tax positions related to the current year 1,761 760 Additions based on tax positions related to prior years 1,062 18 Settlements with tax authorities (2,290 ) (371 ) Expiration of statute of limitations (810 ) (1,694 ) Balance at end of year $ 5,811 $ 6,088 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): 2016 2015 Revolving credit facility $ 530,250 $ 383,750 3.88% notes 299,796 299,766 2.60% notes 249,934 249,899 Capital lease obligations (see Note 9) 37,532 40,849 1,117,512 974,264 Less current installments (3,563 ) (3,439 ) $ 1,113,949 $ 970,825 |
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 29, 2016 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2017 $ 0 2018 249,934 2019 0 2020 530,250 2021 0 Thereafter 299,796 $ 1,079,980 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense consists of the following (in thousands): 2016 2015 2014 Straight-lined minimum rent $ 107,776 $ 92,917 $ 90,574 Contingent rent 4,408 4,774 4,737 Other 11,283 9,998 9,817 Total rent expense $ 123,467 $ 107,689 $ 105,128 |
Future Minimum Lease Payments | As of June 29, 2016 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2017 $ 5,954 $ 123,312 2018 5,745 116,418 2019 5,226 95,276 2020 4,853 80,881 2021 4,138 66,293 Thereafter 27,977 156,563 Total minimum lease payments(a) 53,893 $ 638,743 Imputed interest (average rate of 7%) (16,361 ) Present value of minimum lease payments 37,532 Less current installments (3,563 ) $ 33,969 ____________________________________________________________________ (a) Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. The total of undiscounted future sublease rentals are approximately $25.5 million and $47.1 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
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 29, 2016 and June 24, 2015 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 29, 2016 $ 0 $ 0 $ 208 $ 208 At June 24, 2015 $ 0 $ 0 $ 0 $ 0 Liquor licenses: At June 29, 2016 $ 0 $ 857 $ 0 $ 857 At June 24, 2015 $ 0 $ 550 $ 0 $ 550 Reacquired franchise rights: At June 29, 2016 $ 0 $ 0 $ 0 $ 0 At June 24, 2015 $ 0 $ 0 $ 0 $ 0 Other long-lived assets: At June 29, 2016 $ 0 $ 750 $ 107 $ 857 At June 24, 2015 $ 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): June 29, 2016 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,934 $ 252,445 $ 249,899 $ 250,583 3.88% Notes $ 299,796 $ 302,655 $ 299,766 $ 290,706 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Stock Options | |
Transactions During Fiscal 2016 | Transactions during fiscal 2016 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 24, 2015 1,173 $ 33.08 Granted 347 52.71 Exercised (234 ) 26.23 Forfeited or canceled (69 ) 48.58 Options outstanding at June 29, 2016 1,217 $ 39.12 4.7 $ 12,074 Options exercisable at June 29, 2016 608 $ 28.29 3.2 $ 11,285 |
Restricted Share Award | |
Transactions During Fiscal 2016 | Transactions during fiscal 2016 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 24, 2015 1,159 $ 38.44 Granted 324 49.19 Vested (402 ) 39.09 Forfeited (83 ) 44.44 Restricted share awards outstanding at June 29, 2016 998 $ 42.68 |
SUPPLEMENTAL CASH FLOW INFORM37
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid For Interest And Income Taxes | Cash paid for interest and income taxes is as follows (in thousands): 2016 2015 2014 Income taxes, net of refunds $ 45,743 $ 50,437 $ 48,379 Interest, net of amounts capitalized 28,989 26,190 25,476 |
Non-Cash Investing And Financing Activities | Non-cash investing and financing activities are as follows (in thousands): 2016 2015 2014 Retirement of fully depreciated assets $ 24,806 $ 40,775 $ 64,420 Dividends declared but not paid 18,442 18,132 17,250 Accrued capital expenditures 7,094 4,109 15,703 |
SEGMENT INFORMATION SEGMENT INF
SEGMENT INFORMATION SEGMENT INFORMATION (Tables) | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Segment Information [Abstract] | |||
Schedule of Segment Reporting Information, by Segment | The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands): Fiscal Year Ended June 29, 2016 Chili's Maggiano's Other Consolidated Company sales $ 2,754,904 $ 411,755 $ 0 $ 3,166,659 Franchise and other revenues 68,484 22,346 0 90,830 Total revenues 2,823,388 434,101 0 3,257,489 Operational expenses (a) 2,272,771 364,466 1,635 2,638,872 Depreciation and amortization 131,306 15,046 10,016 156,368 General and administrative 35,845 6,225 85,523 127,593 Other gains and charges 6,973 3,472 6,735 17,180 Total operating costs and expenses 2,446,895 389,209 103,909 2,940,013 Operating income $ 376,493 $ 44,892 $ (103,909 ) $ 317,476 Segment assets $ 1,218,009 $ 163,753 $ 90,954 $ 1,472,716 Equity method investment (b) 10,257 0 0 10,257 Payments for property and equipment 80,277 17,540 14,971 112,788 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. (b) The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures. | Fiscal Year Ended June 24, 2015 Chili's Maggiano's Other Consolidated Company sales $ 2,503,133 $ 401,613 $ 0 $ 2,904,746 Franchise and other revenues 75,860 21,672 0 97,532 Total revenues 2,578,993 423,285 0 3,002,278 Operational expenses (a) 2,044,521 360,903 2,179 2,407,603 Depreciation and amortization 122,093 14,233 8,916 145,242 General and administrative 37,131 6,722 89,614 133,467 Other gains and charges 600 (1,009 ) 5,173 4,764 Total operating costs and expenses 2,204,345 380,849 105,882 2,691,076 Operating income $ 374,648 $ 42,436 $ (105,882 ) $ 311,202 Segment assets $ 1,141,025 $ 161,283 $ 133,565 $ 1,435,873 Equity method investment (b) 11,801 0 0 11,801 Payments for property and equipment 114,416 14,408 11,438 140,262 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. (b) The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures. | Fiscal Year Ended June 25, 2014 Chili's Maggiano's Other Consolidated Company sales $ 2,443,950 $ 379,119 $ 0 $ 2,823,069 Franchise and other revenues 65,364 21,062 0 86,426 Total revenues 2,509,314 400,181 0 2,909,495 Operational expenses (a) 2,005,795 341,870 2,266 2,349,931 Depreciation and amortization 112,809 13,323 9,949 136,081 General and administrative 34,693 7,145 90,256 132,094 Other gains and charges 6,412 1,052 41,760 49,224 Total operating costs and expenses 2,159,709 363,390 144,231 2,667,330 Operating income $ 349,605 $ 36,791 $ (144,231 ) $ 242,165 Payments for property and equipment $ 141,709 $ 14,284 $ 5,073 $ 161,066 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. |
Reconciliation of Revenue from Segments to Consolidated | Reconciliation of operating income to income before provision for income taxes: Fiscal Years Ended June 29, 2016 June 24, 2015 June 25, 2014 Operating income $ 317,476 $ 311,202 $ 242,165 Less interest expense (32,574 ) (29,006 ) (28,091 ) Plus other, net 1,485 2,081 2,214 Income before provision for income taxes $ 286,387 $ 284,277 $ 216,288 |
QUARTERLY RESULTS OF OPERATIO39
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Consolidated Quarterly Results Of Operations | The following table summarizes the unaudited consolidated quarterly results of operations for fiscal 2016 and 2015 (in thousands, except per share amounts): Fiscal Year 2016 Quarters Ended Sept. 23 Dec. 23 March 23 June 29 Revenues $ 762,559 $ 788,610 $ 824,639 $ 881,681 Income before provision for income taxes $ 48,753 $ 68,272 $ 78,150 $ 91,212 Net income $ 33,207 $ 47,694 $ 57,502 $ 62,342 Basic net income per share $ 0.55 $ 0.81 $ 1.01 $ 1.12 Diluted net income per share $ 0.54 $ 0.80 $ 1.00 $ 1.11 Basic weighted average shares outstanding 60,225 59,198 56,673 55,657 Diluted weighted average shares outstanding 61,208 59,899 57,407 56,394 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 |
Nature Of Operations And Summ40
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Detail) | Jun. 29, 2016USD ($)LocationrestaurantCountry$ / sharesshares | Sep. 23, 2015USD ($) | Jun. 29, 2016USD ($)LocationsegmentrestaurantCountry$ / sharesshares | Jun. 24, 2015USD ($)$ / shares | Jun. 25, 2014USD ($)$ / shares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of Restaurants | restaurant | 1,660 | 1,660 | |||
Number of countries in which entity operates | Country | 31 | 31 | |||
Number of territories in which entity operates | Location | 2 | 2 | |||
53rd week revenues | $ 58,300,000 | ||||
Deferred Tax Assets, Net, Current | $ 2,500,000 | ||||
Advertising expense, net of franchisee contribution | $ 93,600,000 | 94,300,000 | $ 92,200,000 | ||
Stock-based compensation expense from continuing operations | 15,200,000 | 15,000,000 | 16,900,000 | ||
Tax benefit related to stock-based compensation expense | $ 5,800,000 | $ 5,500,000 | $ 6,900,000 | ||
Weighted average fair values of option grants | $ / shares | $ 10.48 | $ 11.72 | $ 14.75 | ||
Number of preferred stock the Board of Directors is authorized to issue | shares | 1,000,000 | 1,000,000 | |||
Preferred stock, par value | $ / shares | $ 1 | $ 1 | |||
Preferred stock, shares issued | shares | 0 | 0 | |||
Increase in share repurchase program | $ 250,000,000 | ||||
Stock repurchase program, total authorization of shares to be repurchased | $ 4,185,000,000 | $ 4,185,000,000 | |||
Stock repurchase during period, shares | shares | 5,800,000 | ||||
Stock repurchased during period, value | $ 284,900,000 | ||||
Remaining authorized share purchases, amount | 333,000,000 | 333,000,000 | |||
Proceeds from issuances of treasury stock | 6,147,000 | $ 16,259,000 | $ 29,295,000 | ||
Payments of dividends | 74,066,000 | 70,832,000 | $ 63,395,000 | ||
Dividends Payable, Current | $ 17,760,000 | $ 17,760,000 | $ 16,961,000 | ||
Dividends per share declared but not paid | $ / shares | $ 0.32 | $ 0.32 | |||
Number of Reportable Segments | segment | 2 | ||||
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 | (234,000) | ||||
Common Stock | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Dividends Payable, Current | $ 17,800,000 | $ 17,800,000 | |||
Chili's Restaurants [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of countries in which entity operates | Country | 31 | 31 | |||
Number of territories in which entity operates | Location | 2 | 2 |
Nature Of Operations And Summ41
Nature Of Operations And Summary Of Significant Accounting Policies (Fair Value Assumptions Using Black-Scholes Option-Pricing Model) (Detail) | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | |||
Expected volatility | 27.50% | 31.00% | 47.70% |
Risk-free interest rate | 1.50% | 1.60% | 1.60% |
Expected lives | 5 years | 5 years | 5 years |
Dividend yield | 2.40% | 2.20% | 2.20% |
NATURE OF OPERATIONS AND SUMM42
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. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Basic weighted average shares outstanding (in shares) | 55,657 | 56,673 | 59,198 | 60,225 | 61,132 | 62,891 | 63,590 | 64,668 | 57,895 | 63,072 | 66,251 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 789 | 1,332 | 1,901 | ||||||||
Diluted weighted average shares outstanding (in shares) | 56,394 | 57,407 | 59,899 | 61,208 | 62,294 | 64,091 | 64,963 | 66,263 | 58,684 | 64,404 | 68,152 |
Stock options and restricted share awards outstanding excluded from dilutive earnings per share | 550 | 119 | 113 | ||||||||
Restricted Share Award | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 473 | 763 | 1,048 | ||||||||
Employee Stock Option [Member] | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 316 | 569 | 853 |
Acquisition (Details)
Acquisition (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 23, 2016USD ($) | Sep. 23, 2015USD ($)restaurant | Jun. 29, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Jun. 25, 2015 | ||
Business Acquisition, Name of Acquired Entity | Pepper Dining Holding Corp. ("Pepper Dining") | ||
Number of restaurants acquired | restaurant | 103 | ||
Payments to Acquire Businesses, Gross | $ 106,500,000 | ||
Cash and customary working capital purchase price adjustments | $ 900,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 12,800,000 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 259,600,000 | ||
Average annual revenue per acquired restaurant | 2,500,000 | ||
Average annual royalty revenues lost per acquired restaurant | $ 104,000 | ||
Business Combination, Pro Forma Information, Disclosure Impracticable | 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. | ||
Acquisition of Chili's restaurants [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | $ (6,000,000) | ||
Decrease to accrued liabilities, business combination, adjustment | 200,000 | ||
Goodwill, Subsequent Recognition of Deferred Tax Asset | 2,400,000 | ||
Goodwill, Purchase Accounting Adjustments | $ 3,400,000 |
Acquisition (Schedule of Recogn
Acquisition (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | ||
Business Acquisition [Line Items] | |||
Goodwill, Acquired During Period | $ 31,912 | $ 0 | |
Finite-lived Intangible Assets Acquired | 10,400 | ||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 5,500 | ||
Off-market Lease, Unfavorable | 6,521 | $ 663 | |
Acquisition of Chili's restaurants [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | [1] | 6,331 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 64,532 | ||
Goodwill, Acquired During Period | 31,912 | ||
Finite-lived Intangible Assets Acquired | [2] | 10,400 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 15,388 | ||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 5,496 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 134,059 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 17,800 | ||
Off-market Lease, Unfavorable | 8,846 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 26,646 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | [1] | 107,413 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 1,800 | ||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||
[1] | The net assets acquired includes cash and cash equivalents of $1.8 million. | ||
[2] | The reacquired franchise rights have an amortization period of 12 years. |
Equity Method Investment (Narra
Equity Method Investment (Narrative) (Detail) - Joint Venture Investment, Mexico [Member] | 12 Months Ended |
Jun. 29, 2016Store | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of restaurants to develop | 50 |
Number of restaurants operating in joint venture | 40 |
Other Gains And Charges (Schedu
Other Gains And Charges (Schedule Of Other Gains And Charges) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Dec. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Disclosure Other Gains And Charges [Abstract] | |||||||||
Restaurant impairment charges | $ 6,700 | $ 3,400 | $ 500 | $ 1,500 | $ 700 | $ 10,651 | $ 2,255 | $ 4,502 | |
Restaurant closure charges | 3,780 | 1,736 | 3,413 | ||||||
Severance and other benefits | $ 900 | 200 | $ 2,200 | 900 | $ 300 | 3,304 | 1,182 | 2,140 | |
Litigation | (3,191) | (2,753) | 39,500 | ||||||
(Gain) loss on the sale of assets, net | 1,100 | $ 1,800 | (2,858) | 1,093 | (608) | ||||
Impairment of investment | 1,000 | 0 | 0 | ||||||
Acquisition costs | $ 100 | $ 600 | $ 1,100 | 700 | 1,100 | 0 | |||
Impairment of intangible assets | 392 | 645 | 0 | ||||||
Other | 3,402 | (494) | 277 | ||||||
Other gains and charges | $ 17,180 | $ 4,764 | $ 49,224 |
Other Gains And Charges (Narrat
Other Gains And Charges (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restaurant impairment charges | $ 6,700 | $ 3,400 | $ 500 | $ 1,500 | $ 700 | $ 10,651 | $ 2,255 | $ 4,502 | ||
Impairment of investment | 1,000 | 0 | 0 | |||||||
Restaurant closure charges | 3,780 | 1,736 | 3,413 | |||||||
Severance and other benefits | 900 | 200 | $ 2,200 | 900 | 300 | 3,304 | 1,182 | 2,140 | ||
Proceeds from Legal Settlements | 1,200 | 2,000 | $ 8,600 | |||||||
Litigation reserves | $ 5,800 | 0 | 0 | 39,500 | ||||||
(Gain) loss on the sale of assets, net | 1,100 | 1,800 | (2,858) | 1,093 | (608) | |||||
Acquisition costs | $ 100 | $ 600 | $ 1,100 | 700 | $ 1,100 | $ 0 | ||||
Expenses related to a bankrupt franchisee | $ 200 | $ 1,200 | 1,400 | |||||||
Professional Fees | $ 1,200 |
Goodwill (Changes In Carrying A
Goodwill (Changes In Carrying Amount Of Goodwill) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2016 | Jun. 24, 2015 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 132,381 | $ 133,434 |
Goodwill, Acquired During Period | 31,912 | 0 |
Foreign currency translation adjustment | (286) | (1,053) |
Balance at end of year | 164,007 | 132,381 |
Chili's Restaurants [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 93,984 | 95,037 |
Goodwill, Acquired During Period | 31,912 | 0 |
Foreign currency translation adjustment | (286) | (1,053) |
Balance at end of year | 125,610 | 93,984 |
Maggiano's Restaurants [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 38,397 | 38,397 |
Goodwill, Acquired During Period | 0 | 0 |
Foreign currency translation adjustment | 0 | 0 |
Balance at end of year | $ 38,397 | $ 38,397 |
GOODWILL AND INTANGIBLES Schedu
GOODWILL AND INTANGIBLES Schedule of Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 23,272 | $ 8,227 | |||
Accumulated Amortization | (3,754) | (1,983) | |||
Net Carrying Amount | 19,518 | 6,244 | |||
Finite-lived Intangible Assets Acquired | 10,400 | ||||
Impairment of intangible assets | 392 | 645 | $ 0 | ||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 5,500 | ||||
Franchise Rights [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Impairment of intangible assets | 200 | 400 | |||
Foreign currency translation adjustment | (300) | (1,000) | |||
Indefinite-lived Intangible Assets [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 10,707 | 10,398 | |||
Chili's Restaurants [Member] | Franchise Rights [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | [1] | 17,284 | 7,423 | ||
Accumulated Amortization | [1] | (3,041) | (1,625) | ||
Net Carrying Amount | [1] | 14,243 | 5,798 | ||
Chili's Restaurants [Member] | Other Intangible Assets [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 5,988 | [2] | 804 | ||
Accumulated Amortization | (713) | (358) | |||
Net Carrying Amount | 5,275 | 446 | |||
Chili's Restaurants [Member] | Indefinite-lived Intangible Assets [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 9,775 | 9,466 | |||
Maggiano's Restaurants [Member] | Indefinite-lived Intangible Assets [Member] | |||||
Schedule of Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 932 | $ 932 | |||
[1] | The increase in the gross carrying amount reflects an additional $10.4 million of reacquired franchise rights from the acquisition of Pepper Dining. See Note 2 for additional disclosures. Additionally, the gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $0.3 million and $1.0 million for fiscal 2016 and 2015, respectively. We also recorded an impairment charge of $0.2 million and $0.4 million in fiscal 2016 and fiscal 2015, respectively. See Note 10 for additional disclosures. | ||||
[2] | The increase in the gross carrying amount reflects an additional $5.5 million of favorable lease assets from the acquisition of Pepper Dining. See Note 2 for additional disclosures. |
GOODWILL AND INTANGIBLES Sche50
GOODWILL AND INTANGIBLES Schedule of Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Schedule of Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,500 | ||
Chili's Restaurants [Member] | |||
Schedule of Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1,500 | $ 800 | $ 1,000 |
Accrued And Other Liabilities51
Accrued And Other Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Sales tax | $ 26,280 | $ 20,308 |
Insurance | 19,976 | 22,658 |
Property tax | 15,762 | 14,224 |
Dividends | 17,760 | 16,961 |
Other | 41,546 | 37,046 |
Other accrued liabilities | $ 121,324 | $ 111,197 |
Accrued And Other Liabilities52
Accrued And Other Liabilities (Other Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Straight-line rent | $ 56,896 | $ 56,345 |
Insurance | 38,433 | 30,988 |
Landlord contributions | 24,681 | 24,785 |
Off-market Lease, Unfavorable | 6,521 | 663 |
Unrecognized tax benefits | 5,811 | 5,144 |
Other | 7,081 | 7,108 |
Other liabilities | $ 139,423 | $ 125,033 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes From Continuing Operations) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Current income tax expense: | |||
Federal | $ 48,049 | $ 59,726 | $ 66,170 |
State | 12,203 | 11,862 | 15,219 |
Foreign | 3,497 | 3,319 | 3,550 |
Total current income tax expense | 63,749 | 74,907 | 84,939 |
Deferred income tax (benefit) expense: | |||
Federal | 21,023 | 10,754 | (18,715) |
State | 885 | 2,018 | (4,087) |
Foreign | (15) | (96) | 112 |
Total deferred income tax (benefit) expense | 21,893 | 12,676 | (22,690) |
Provision for income taxes | $ 85,642 | $ 87,583 | $ 62,249 |
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. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rate | $ 100,236 | $ 99,497 | $ 75,701 |
FICA tax credit | (20,497) | (18,633) | (18,116) |
State income taxes, net of Federal benefit | 11,102 | 8,646 | 7,636 |
Other | (5,199) | (1,927) | (2,972) |
Provision for income taxes | $ 85,642 | $ 87,583 | $ 62,249 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
Deferred income tax assets: | ||
Leasing transactions | $ 32,132 | $ 30,928 |
Stock-based compensation | 12,817 | 13,105 |
Restructure charges and impairments | 2,439 | 2,303 |
Insurance reserves | 18,015 | 18,567 |
Employee benefit plans | 501 | 470 |
Gift cards | 19,948 | 18,499 |
State net operating losses | 16,120 | 16,521 |
Federal credit carryover | 14,722 | 0 |
State credit carryover | 4,981 | 4,538 |
Other, net | 6,987 | 9,804 |
Less: Valuation allowance | (18,407) | (21,059) |
Total deferred income tax assets | 110,255 | 93,676 |
Deferred income tax liabilities: | ||
Prepaid expenses | 17,360 | 16,803 |
Goodwill and other amortization | 29,884 | 27,713 |
Depreciation and capitalized interest on property and equipment | 31,626 | 12,060 |
Other, net | 4,382 | 3,963 |
Total deferred income tax liabilities | 83,252 | 60,539 |
Net deferred income tax asset | $ 27,003 | $ 33,137 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2016 | Jun. 24, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 6,088 | $ 7,375 |
Additions based on tax positions related to the current year | 1,761 | 760 |
Additions based on tax positions related to prior years | 1,062 | 18 |
Settlements with tax authorities | (2,290) | (371) |
Expiration of statute of limitations | (810) | (1,694) |
Balance at end of year | $ 5,811 | $ 6,088 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Income Tax Disclosure [Line Items] | |||
Statutory Federal income tax rate | 35.00% | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2.7 | ||
Undistributed Earnings of Foreign Subsidiaries | 5.2 | ||
Amount that would affect the effective tax rate if recognized | 3.9 | $ 4.1 | |
Potential reduction in unrecognized tax benefits due to expiration of statutes or sustained tax positions | 0.8 | ||
Recognized expense in interest | 1.3 | 0.2 | $ 0.3 |
Income tax penalties and interest accrued | 0.8 | 2.2 | |
Income tax penalties and interest accrued, net of deferred tax benefits | 0.6 | 1.5 | |
Federal deferred tax benefit | 0.2 | $ 0.7 | |
Anticipated Outcome During Next Twelve Months [Member] | |||
Income Tax Disclosure [Line Items] | |||
Amount that would affect the effective tax rate if recognized | $ 0.5 |
Debt (Long-Term Debt) (Detail)
Debt (Long-Term Debt) (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
Debt [Line Items] | ||
Capital lease obligations (see Note 9) | $ 37,532 | $ 40,849 |
Long-term debt and capital lease obligations, including current maturities | 1,117,512 | 974,264 |
Less current installments | (3,563) | (3,439) |
Long-term debt, less current installments | 1,113,949 | 970,825 |
Revolver Borrowings [Member] | ||
Debt [Line Items] | ||
Revolving credit facility | 530,250 | 383,750 |
3.88% notes [Member] | ||
Debt [Line Items] | ||
Senior notes | 299,796 | 299,766 |
2.60% notes [Member] | ||
Debt [Line Items] | ||
Senior notes | $ 249,934 | $ 249,899 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 29, 2016 | Jun. 24, 2015 | Mar. 25, 2015 | Jun. 25, 2014 | Mar. 25, 2015 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Debt [Line Items] | ||||||||
Repayments of Long-term Debt | $ 168,800,000 | $ 18,700,000 | $ 3,402,000 | $ 189,177,000 | $ 26,521,000 | |||
Debt instrument, face amount | $ 550,000,000 | 550,000,000 | ||||||
Net proceeds from issuance of long-term debt | 549,500,000 | |||||||
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% | ||||||
March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Debt [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 38,000,000 | 345,800,000 | 256,500,000 | |||||
Repayments of Lines of Credit | 110,000,000 | |||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||||||
Line of Credit Facility, Expiration Date | Mar. 12, 2020 | |||||||
Debt Instrument, Interest Rate During Period | 1.64% | |||||||
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | |||||||
Debt available under revolving credit facility | $ 219,800,000 | $ 219,800,000 | ||||||
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 | 1.175% | |||||||
$250 Million Revolver [Member] | ||||||||
Debt [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 97,000,000 | |||||||
Repayments of Lines of Credit | $ 177,000,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Debt [Line Items] | ||||||||
Basis spread on variable rate | 0.46% |
Debt (Long-Term Debt Maturities
Debt (Long-Term Debt Maturities Excluding Capital Lease Obligations) (Detail) $ in Thousands | Jun. 29, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 249,934 |
2,019 | 0 |
2,020 | 530,250 |
2,021 | 0 |
Thereafter | 299,796 |
Carrying value of notes | $ 1,079,980 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2016 | Jun. 24, 2015 | |
Leases [Abstract] | ||
Capital Leased Assets, Gross | $ 38.8 | $ 39 |
Capital lease accumulated amortization | $ 24.1 | $ 22.1 |
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. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Leases [Abstract] | |||
Straight-lined minimum rent | $ 107,776 | $ 92,917 | $ 90,574 |
Contingent rent | 4,408 | 4,774 | 4,737 |
Other | 11,283 | 9,998 | 9,817 |
Total rent expense | $ 123,467 | $ 107,689 | $ 105,128 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Detail) $ in Thousands | 12 Months Ended | |
Jun. 29, 2016USD ($) | ||
Leases [Abstract] | ||
Percentage Of Imputed Average Capital Lease Interest | 7.00% | |
Capital Leases, 2017 | $ 5,954 | |
Capital Leases, 2018 | 5,745 | |
Capital Leases, 2019 | 5,226 | |
Capital Leases, 2020 | 4,853 | |
Capital Leases, 2021 | 4,138 | |
Capital Leases, Thereafter | 27,977 | |
Capital Leases, Total minimum lease payments | 53,893 | [1] |
Imputed interest (average rate of 7%) | (16,361) | |
Present value of minimum lease payments | 37,532 | |
Less current installments | (3,563) | |
Capital Leases, Net minimum payments | 33,969 | |
Operating Leases, 2017 | 123,312 | |
Operating Leases, 2018 | 116,418 | |
Operating Leases, 2019 | 95,276 | |
Operating Leases, 2020 | 80,881 | |
Operating Leases, 2021 | 66,293 | |
Operating Leases, Thereafter | 156,563 | |
Operating Leases, Total minimum lease payments | 638,743 | [1] |
Capital Leases, Minimum sublease rentals | 25,500 | |
Operating Leases, Minimum sublease rentals | $ 47,100 | |
[1] | Future minimum lease payments have not been reduced by minimum sublease rentals to be received in the future under non-cancelable subleases. The total of undiscounted future sublease rentals are approximately $25.5 million and $47.1 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES Fair Val
FAIR VALUE DISCLOSURES Fair Value Disclosures (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 23, 2016USD ($)Restaurants | Jun. 29, 2016USD ($)RestaurantsAsset | Jun. 24, 2015USD ($)RestaurantsAsset | Jun. 25, 2014USD ($) | |
Schedule of Impairments [Line Items] | ||||
Carrying Value Of Impaired Long Lived Assets | $ 3,400,000 | $ 7,000,000 | $ 2,300,000 | |
Number Of Underperforming Restaurants | Restaurants | 2 | 5 | 4 | |
Fair Value Of Impaired Long Lived Assets | $ 0 | $ 208,000 | $ 0 | |
Impairment of Long-Lived Assets Held-for-use | $ 3,400,000 | 6,800,000 | 2,300,000 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 0 | ||
Impairment of intangible assets | 392,000 | 645,000 | $ 0 | |
Impairment of real estate | 200,000 | |||
Carrying value of undeveloped land | 1,000,000 | |||
Fair value of undeveloped land | 800,000 | |||
Impairment of capital lease asset | 200,000 | |||
Carrying value of impaired capital lease asset | 300,000 | |||
Fair value of capital lease asset | 100,000 | |||
Cost Method Investments, Fair Value Disclosure | 0 | |||
Franchise Rights [Member] | ||||
Schedule of Impairments [Line Items] | ||||
Fair Value of Finite-Lived Franchise Rights | $ 0 | $ 0 | ||
Number of Impaired Finite-lived Assets | Asset | 3 | 1 | ||
Impairment of intangible assets | $ 200,000 | $ 400,000 | ||
Liquor Licenses [Member] | ||||
Schedule of Impairments [Line Items] | ||||
Carrying Value Of Impaired Long Lived Assets | 1,100,000 | 800,000 | ||
Fair Value Of Impaired Long Lived Assets | $ 857,000 | $ 550,000 | ||
Number of Impaired Indefinite-Lived Assets | Asset | 4 | 4 | ||
Fair Value of Indefinite Lived Asset | $ 900,000 | $ 600,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 200,000 | $ 200,000 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Detail) - USD ($) | Jun. 29, 2016 | Mar. 23, 2016 | Jun. 24, 2015 |
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | $ 208,000 | $ 0 | $ 0 |
Fair Value of Finite-Lived Franchise Rights | 0 | 0 | |
Fair value of other long-lived assets | 857,000 | 0 | |
Liquor Licenses [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 857,000 | 550,000 | |
Fair Value of Indefinite Lived Asset | 900,000 | 600,000 | |
Franchise Rights [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair Value of Finite-Lived Franchise Rights | 0 | 0 | |
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 of other long-lived assets | 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 of other long-lived assets | 750,000 | 0 | |
Fair Value Measurements Using Level 2 [Member] | Liquor Licenses [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 857,000 | 550,000 | |
Fair Value Measurements Using Level 3 [Member] | |||
Fair Value Disclosures [Line Items] | |||
Fair value of impaired long-lived asset | 208,000 | 0 | |
Fair Value of Finite-Lived Franchise Rights | 0 | 0 | |
Fair value of other long-lived assets | 107,000 | 0 | |
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 Fair V66
FAIR VALUE DISCLOSURES Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 29, 2016 | Jun. 24, 2015 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 249,934 | $ 249,899 |
Long-term Debt, Fair Value | $ 252,445 | 250,583 |
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 299,796 | 299,766 |
Long-term Debt, Fair Value | $ 302,655 | $ 290,706 |
Debt Instrument, Interest Rate, Stated Percentage | 3.88% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Employees And Non-Employee Directors And Consultants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | $ 2.4 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 1 year 7 months 17 days | ||
Total intrinsic value of options exercised | $ 5.3 | $ 28.1 | $ 25.7 |
Tax benefit realized on options exercised | 1.6 | 9.2 | 8.9 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 13.9 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 2 years 1 month 2 days | ||
Fair value of shares that vested during period | $ 23.9 | $ 34.2 | $ 42.2 |
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 2016-Stock Options) (Detail) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 29, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at June 24, 2015, Number of Options | shares | 1,173,000 |
Granted, Number of Options | shares | 347,000 |
Exercised, Number of Options | shares | (234,000) |
Forfeited or canceled, Number of Options | shares | (69,000) |
Options outstanding at June 29, 2016, Number of Options | shares | 1,217,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at June 24, 2015, Weighted Average Exercise Price | $ / shares | $ 33.08 |
Granted, Weighted Average Exercise Price | $ / shares | 52.71 |
Exercised, Weighted Average Exercise Price | $ / shares | 26.23 |
Forfeited or canceled, Weighted Average Exercise Price | $ / shares | 48.58 |
Options outstanding at June 29, 2016, Weighted Average Exercise Price | $ / shares | $ 39.12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 608,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 28.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 8 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 12,074 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 11,285 |
Stock-Based Compensation (Tra69
Stock-Based Compensation (Transactions During Fiscal 2016-Restricted Share Awards) (Detail) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Jun. 29, 2016$ / sharesshares | |
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 24, 2015, Number of Restricted Share Awards | shares | 1,159 |
Granted, Number of Restricted Share Awards | shares | 324 |
Vested, Number of Restricted Share Awards | shares | (402) |
Forfeited, Number of Restricted Share Awards | shares | (83) |
Restricted share awards outstanding at June 29, 2016, Number of Restricted Share Awards | shares | 998 |
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 24, 2015, Weighted Average Fair Value Per Award | $ / shares | $ 38.44 |
Granted, Weighted Average Fair Value Per Award | $ / shares | 49.19 |
Vested, Weighted Average Fair Value Per Award | $ / shares | 39.09 |
Forfeited, Weighted Average Fair Value Per Award | $ / shares | 44.44 |
Restricted share awards outstanding at June 29, 2016, Weighted Average Fair Value Per Award | $ / shares | $ 42.68 |
Savings Plans (Narrative) (Deta
Savings Plans (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
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 | $ 8.9 | $ 8 | $ 7.4 |
Supplemental Cash Flow Inform71
Supplemental Cash Flow Information (Cash Paid For Interest And Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Income taxes, net of refunds | $ 45,743 | $ 50,437 | $ 48,379 |
Interest, net of amounts capitalized | $ 28,989 | $ 26,190 | $ 25,476 |
Supplemental Cash Flow Inform72
Supplemental Cash Flow Information (Non-Cash Investing and Financing Activities) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Retirement of fully depreciated assets | $ 24,806 | $ 40,775 | $ 64,420 |
Accrued capital expenditures | 7,094 | 4,109 | 15,703 |
Dividend Declared [Member] | |||
Dividends declared but not paid | $ 18,442 | $ 18,132 | $ 17,250 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 23, 2015 | Jun. 29, 2016 | Jun. 24, 2015 | |
Guarantor Obligations [Line Items] | |||
Description of material contingencies | No material liabilities have been recorded as of June 29, 2016 | ||
Letters of Credit Outstanding, Amount | $ 28.1 | ||
Lease Guarantees And Secondary Obligations [Member] | |||
Guarantor Obligations [Line Items] | |||
Loss Contingency, Range of Possible Loss, Maximum, Change During Period | $ (19) | ||
Maximum [Member] | Lease Guarantees And Secondary Obligations [Member] | |||
Guarantor Obligations [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 72.9 | $ 98.9 |
CONTINGENCIES Loss Contingencie
CONTINGENCIES Loss Contingencies (Details) $ in Millions | 3 Months Ended | |
Mar. 25, 2015USD ($) | Jun. 29, 2016LegalMatter | |
Loss Contingencies [Line Items] | ||
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 Accrual, Payments | $ | $ 44 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | $ 3,166,659 | $ 2,904,746 | $ 2,823,069 | |||||||||
Franchise and other revenues | 90,830 | 97,532 | 86,426 | |||||||||
Revenues | $ 881,681 | $ 824,639 | $ 788,610 | $ 762,559 | $ 764,147 | $ 784,215 | $ 742,898 | $ 711,018 | 3,257,489 | 3,002,278 | 2,909,495 | |
Operational expenses (a) | [1] | 2,638,872 | 2,407,603 | 2,349,931 | ||||||||
Depreciation and amortization | 156,368 | 145,242 | 136,081 | |||||||||
General and administrative | 127,593 | 133,467 | 132,094 | |||||||||
Other gains and charges | 17,180 | 4,764 | 49,224 | |||||||||
Total operating costs and expenses | 2,940,013 | 2,691,076 | 2,667,330 | |||||||||
Operating income | 317,476 | 311,202 | 242,165 | |||||||||
Assets | 1,472,716 | 1,435,873 | 1,472,716 | 1,435,873 | ||||||||
Equity Method Investments | [2] | 10,257 | 11,801 | 10,257 | 11,801 | |||||||
Payments to Acquire Property, Plant, and Equipment | 112,788 | 140,262 | 161,066 | |||||||||
Chili's Restaurants [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | 2,754,904 | 2,503,133 | 2,443,950 | |||||||||
Franchise and other revenues | 68,484 | 75,860 | 65,364 | |||||||||
Revenues | 2,823,388 | 2,578,993 | 2,509,314 | |||||||||
Operational expenses (a) | [1] | 2,272,771 | 2,044,521 | 2,005,795 | ||||||||
Depreciation and amortization | 131,306 | 122,093 | 112,809 | |||||||||
General and administrative | 35,845 | 37,131 | 34,693 | |||||||||
Other gains and charges | 6,973 | 600 | 6,412 | |||||||||
Total operating costs and expenses | 2,446,895 | 2,204,345 | 2,159,709 | |||||||||
Operating income | 376,493 | 374,648 | 349,605 | |||||||||
Assets | 1,218,009 | 1,141,025 | 1,218,009 | 1,141,025 | ||||||||
Equity Method Investments | [2] | 10,257 | 11,801 | 10,257 | 11,801 | |||||||
Payments to Acquire Property, Plant, and Equipment | 80,277 | 114,416 | 141,709 | |||||||||
Maggiano's Restaurants [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | 411,755 | 401,613 | 379,119 | |||||||||
Franchise and other revenues | 22,346 | 21,672 | 21,062 | |||||||||
Revenues | 434,101 | 423,285 | 400,181 | |||||||||
Operational expenses (a) | [1] | 364,466 | 360,903 | 341,870 | ||||||||
Depreciation and amortization | 15,046 | 14,233 | 13,323 | |||||||||
General and administrative | 6,225 | 6,722 | 7,145 | |||||||||
Other gains and charges | 3,472 | (1,009) | 1,052 | |||||||||
Total operating costs and expenses | 389,209 | 380,849 | 363,390 | |||||||||
Operating income | 44,892 | 42,436 | 36,791 | |||||||||
Assets | 163,753 | 161,283 | 163,753 | 161,283 | ||||||||
Equity Method Investments | 0 | 0 | 0 | 0 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 17,540 | 14,408 | 14,284 | |||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | 0 | 0 | 0 | |||||||||
Franchise and other revenues | 0 | 0 | 0 | |||||||||
Revenues | 0 | 0 | 0 | |||||||||
Operational expenses (a) | [1] | 1,635 | 2,179 | 2,266 | ||||||||
Depreciation and amortization | 10,016 | 8,916 | 9,949 | |||||||||
General and administrative | 85,523 | 89,614 | 90,256 | |||||||||
Other gains and charges | 6,735 | 5,173 | 41,760 | |||||||||
Total operating costs and expenses | 103,909 | 105,882 | 144,231 | |||||||||
Operating income | (103,909) | (105,882) | (144,231) | |||||||||
Assets | 90,954 | 133,565 | 90,954 | 133,565 | ||||||||
Equity Method Investments | $ 0 | $ 0 | 0 | 0 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ 14,971 | $ 11,438 | $ 5,073 | |||||||||
[1] | Operational expenses includes cost of sales, restaurant labor and restaurant expenses. | |||||||||||
[2] | The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures. |
SEGMENT INFORMATION Segment I76
SEGMENT INFORMATION Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Operating income | $ 317,476 | $ 311,202 | $ 242,165 | ||||||||
Interest expense | (32,574) | (29,006) | (28,091) | ||||||||
Other, net | 1,485 | 2,081 | 2,214 | ||||||||
Income before provision for income taxes | $ 91,212 | $ 78,150 | $ 68,272 | $ 48,753 | $ 81,403 | $ 96,316 | $ 58,744 | $ 47,814 | $ 286,387 | $ 284,277 | $ 216,288 |
Quarterly Results Of Operatio77
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. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 881,681 | $ 824,639 | $ 788,610 | $ 762,559 | $ 764,147 | $ 784,215 | $ 742,898 | $ 711,018 | $ 3,257,489 | $ 3,002,278 | $ 2,909,495 |
Income before provision for income taxes | 91,212 | 78,150 | 68,272 | 48,753 | 81,403 | 96,316 | 58,744 | 47,814 | 286,387 | 284,277 | 216,288 |
Net income | $ 62,342 | $ 57,502 | $ 47,694 | $ 33,207 | $ 57,223 | $ 65,427 | $ 41,306 | $ 32,738 | $ 200,745 | $ 196,694 | $ 154,039 |
Basic net income per share (in dollars per share) | $ 1.12 | $ 1.01 | $ 0.81 | $ 0.55 | $ 0.94 | $ 1.04 | $ 0.65 | $ 0.51 | $ 3.47 | $ 3.12 | $ 2.33 |
Diluted net income per share (in dollars per share) | $ 1.11 | $ 1 | $ 0.80 | $ 0.54 | $ 0.92 | $ 1.02 | $ 0.64 | $ 0.49 | $ 3.42 | $ 3.05 | $ 2.26 |
Basic weighted average shares outstanding (in shares) | 55,657 | 56,673 | 59,198 | 60,225 | 61,132 | 62,891 | 63,590 | 64,668 | 57,895 | 63,072 | 66,251 |
Diluted weighted average shares outstanding (in shares) | 56,394 | 57,407 | 59,899 | 61,208 | 62,294 | 64,091 | 64,963 | 66,263 | 58,684 | 64,404 | 68,152 |
Quarterly Results Of Operatio78
Quarterly Results Of Operations (Unaudited) (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Sep. 24, 2014 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Quarterly Financial Data [Line Items] | |||||||||||
Litigation | $ (3,191) | $ (2,753) | $ 39,500 | ||||||||
Litigation reserves | $ 5,800 | 0 | 0 | 39,500 | |||||||
Proceeds from Legal Settlements | $ 1,200 | $ 2,000 | $ 8,600 | ||||||||
Gain Loss On Sale Of Assets | $ (1,100) | (1,800) | 2,858 | (1,093) | 608 | ||||||
Acquisition costs | 100 | $ 600 | $ 1,100 | 700 | 1,100 | 0 | |||||
Long-lived asset impairments | 6,700 | $ 3,400 | 500 | 1,500 | 700 | 10,651 | 2,255 | 4,502 | |||
Severance Costs | 900 | 200 | $ 2,200 | 900 | 300 | 3,304 | $ 1,182 | $ 2,140 | |||
Expenses related to a bankrupt franchisee | 200 | $ 1,200 | $ 1,400 | ||||||||
Lease termination charges | $ 3,800 | $ 500 | $ 500 | $ 900 |
SUBSEQUENT EVENTS Subsequent Ev
SUBSEQUENT EVENTS Subsequent Events (Details) - USD ($) | Aug. 18, 2016 | Aug. 29, 2016 | Sep. 23, 2015 | Jun. 24, 2015 | Mar. 25, 2015 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 |
Subsequent Event [Line Items] | ||||||||
Payments for Repurchase of Common Stock | $ 284,905,000 | $ 306,255,000 | $ 239,597,000 | |||||
Increase in share repurchase program | $ 250,000,000 | |||||||
Remaining authorized share purchases, amount | $ 333,000,000 | |||||||
Dividends per share | $ 1.28 | $ 1.12 | $ 0.96 | |||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Treasury Stock, Shares, Acquired | 699,000 | |||||||
Payments for Repurchase of Common Stock | $ 33,700,000 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 51,000 | |||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 2,800,000 | |||||||
Dividends Payable, Date Declared | Aug. 18, 2016 | |||||||
Dividends per share | $ 0.34 | |||||||
March 2015 Revised Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from Lines of Credit | $ 38,000,000 | $ 345,800,000 | $ 256,500,000 | |||||
Repayments of Lines of Credit | $ 110,000,000 | |||||||
March 2015 Revised Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from Lines of Credit | 70,000,000 | |||||||
Repayments of Lines of Credit | $ 20,000,000 |