Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 28, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 28, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BRINKER INTERNATIONAL INC | |
Entity Central Index Key | 703,351 | |
Current Fiscal Year End Date | --06-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,656,312 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 29, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 34,155 | $ 31,446 |
Accounts receivable, net | 39,035 | 43,944 |
Inventories | 24,978 | 25,104 |
Restaurant supplies | 45,295 | 45,455 |
Prepaid expenses | 30,990 | 30,825 |
Total current assets | 174,453 | 176,774 |
Property and Equipment, at Cost: | ||
Land | 149,094 | 147,626 |
Buildings and leasehold improvements | 1,639,356 | 1,626,924 |
Furniture and equipment | 676,818 | 663,472 |
Construction-in-progress | 16,190 | 23,965 |
Property plant and equipment gross | 2,481,458 | 2,461,987 |
Less accumulated depreciation and amortization | (1,453,350) | (1,418,835) |
Net property and equipment | 1,028,108 | 1,043,152 |
Other Assets: | ||
Goodwill | 163,933 | 164,007 |
Deferred income taxes, net | 29,972 | 27,003 |
Intangibles, net | 29,692 | 30,225 |
Other | 32,368 | 28,299 |
Total other assets | 255,965 | 249,534 |
Total assets | 1,458,526 | 1,469,460 |
Current Liabilities: | ||
Current installments of long-term debt | 3,848 | 3,563 |
Accounts payable | 93,576 | 95,414 |
Gift card liability | 120,725 | 122,329 |
Accrued payroll | 66,247 | 70,999 |
Other accrued liabilities | 133,550 | 121,324 |
Income taxes payable | 7,675 | 18,814 |
Total current liabilities | 425,621 | 432,443 |
Long-term debt, less current installments | 1,441,979 | 1,110,693 |
Other liabilities | 141,991 | 139,423 |
Commitments and Contingencies (Note 10) | ||
Shareholders’ Deficit: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 50,136,232 shares outstanding at September 28, 2016, and 176,246,649 shares issued and 55,420,656 shares outstanding at June 29, 2016 | 17,625 | 17,625 |
Additional paid-in capital | 434,097 | 495,110 |
Accumulated other comprehensive loss | (12,075) | (11,594) |
Retained earnings | 2,562,444 | 2,558,193 |
Shareholders' deficit including treasury stock | 3,002,091 | 3,059,334 |
Less treasury stock, at cost (126,110,417 shares at September 28, 2016 and 120,825,993 shares at June 29, 2016) | (3,553,156) | (3,272,433) |
Total shareholders’ deficit | (551,065) | (213,099) |
Total liabilities and shareholders’ deficit | $ 1,458,526 | $ 1,469,460 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 28, 2016 | Jun. 29, 2016 |
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 | 50,136,232 | 55,420,656 |
Treasury Stock, shares | 126,110,417 | 120,825,993 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Company sales | $ 737,410 | $ 740,481 |
Franchise and other revenues | 21,082 | 22,078 |
Total revenues | 758,492 | 762,559 |
Operating costs and expenses: | ||
Cost of sales | 192,302 | 196,603 |
Restaurant labor | 250,570 | 246,577 |
Restaurant expenses | 196,643 | 189,173 |
Company restaurant expenses | 639,515 | 632,353 |
Depreciation and amortization | 38,886 | 39,171 |
General and administrative | 32,537 | 33,111 |
Other gains and charges | 6,078 | 1,677 |
Total operating costs and expenses | 717,016 | 706,312 |
Operating income | 41,476 | 56,247 |
Interest expense | 8,809 | 7,767 |
Other, net | (299) | (273) |
Income before provision for income taxes | 32,966 | 48,753 |
Provision for income taxes | 9,733 | 15,546 |
Net income | $ 23,233 | $ 33,207 |
Basic net income per share | $ 0.42 | $ 0.55 |
Diluted net income per share | $ 0.42 | $ 0.54 |
Basic weighted average shares outstanding | 54,844 | 60,225 |
Diluted weighted average shares outstanding | 55,576 | 61,208 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | $ (481) | $ (2,805) |
Other comprehensive loss | (481) | (2,805) |
Comprehensive income | $ 22,752 | $ 30,402 |
Dividends per share | $ 0.34 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 23,233 | $ 33,207 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,886 | 39,171 |
Stock-based compensation | 4,034 | 4,189 |
Deferred income taxes | (2,968) | 1,375 |
Restructure charges and other impairments | 5,150 | 574 |
Net loss (gain) on disposal of assets | 481 | (1,233) |
Undistributed earnings on equity investments | (186) | (173) |
Other | 490 | 435 |
Changes in assets and liabilities: | ||
Accounts receivable | 8,261 | 6,904 |
Inventories | 20 | 22 |
Restaurant supplies | (784) | (138) |
Prepaid expenses | (216) | (676) |
Intangibles | 17 | (86) |
Other assets | (351) | (440) |
Accounts payable | 1,392 | (12,175) |
Gift card liability | (1,604) | (8,644) |
Accrued payroll | (4,748) | (22,404) |
Other accrued liabilities | 6,017 | 9,908 |
Current income taxes | (11,672) | (7,427) |
Other liabilities | 768 | 3,497 |
Net cash provided by operating activities | 66,220 | 45,886 |
Cash Flows from Investing Activities: | ||
Payments for property and equipment | (27,111) | (23,731) |
Payment for business acquisition, net of cash acquired | 0 | (105,577) |
Proceeds from sale of assets | 0 | 2,756 |
Net cash used in investing activities | (27,111) | (126,552) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 350,000 | 0 |
Purchases of treasury stock | (349,963) | (51,061) |
Payments on revolving credit facility | (83,000) | 0 |
Borrowings on revolving credit facility | 70,000 | 155,500 |
Payments of dividends | (18,298) | (18,076) |
Payments for debt issuance costs | (9,183) | 0 |
Excess tax benefits from stock-based compensation | 1,538 | 4,752 |
Proceeds from issuances of treasury stock | 3,396 | 1,306 |
Payments on long-term debt | (890) | (849) |
Net cash (used in) provided by financing activities | (36,400) | 91,572 |
Net change in cash and cash equivalents | 2,709 | 10,906 |
Cash and cash equivalents at beginning of period | 31,446 | 55,121 |
Cash and cash equivalents at end of period | $ 34,155 | $ 66,027 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 28, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION References to “Brinker,” the "Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our consolidated financial statements as of September 28, 2016 and June 29, 2016 and for the thirteen week periods ended September 28, 2016 and September 23, 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We are principally engaged in the ownership, operation, development, and franchising of the Chili’s ® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy ® (“Maggiano’s”) restaurant brands. At September 28, 2016 , we owned, operated or franchised 1,652 restaurants in the United States and 30 countries and two territories outside of the United States. The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of our Canadian restaurants and our Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. Actual results could differ from those estimates. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2015, which required us to adopt these provisions in the first quarter of fiscal 2017. Accordingly, we reclassified the debt issuance cost balances associated with the 2.60% notes and 3.88% notes of $1.0 million and $2.2 million , respectively, from other assets to long-term debt, less current installments on the consolidated balance sheet as of June 29, 2016. The reclassification did not have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to companies that purchase cloud computing services to determine whether or not the 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 required us to adopt these provisions in the first quarter of fiscal 2017. We adopted the guidance prospectively and the adoption did not have a material impact on our consolidated financial statements. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the June 29, 2016 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. |
ACQUISITION OF CHILI'S RESTAURA
ACQUISITION OF CHILI'S RESTAURANTS | 3 Months Ended |
Sep. 28, 2016 | |
ACQUISITION OF CHILI'S RESTAURANTS [Abstract] | |
ACQUISITION OF CHILI'S RESTAURANTS | ACQUISITION OF CHILI'S RESTAURANTS On June 25, 2015 , we completed the stock acquisition of Pepper Dining Holding Corp. ("Pepper Dining") , a franchisee of 103 Chili's Grill & Bar restaurants primarily located in the Northeast and Southeast United States. The purchase price of $106.5 million , excluding cash and customary working capital adjustments of $0.9 million , was funded with borrowings from our existing credit facility. The results of operations of these restaurants are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of the restaurants were recorded at their respective fair values as of the date of acquisition. The acquisition of Pepper Dining resulted in the recognition of $31.9 million of goodwill and 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 28, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting periods. Diluted net income 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 diluted net income per share calculation. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended September 28, 2016 September 23, 2015 Basic weighted average shares outstanding 54,844 60,225 Dilutive stock options 246 400 Dilutive restricted shares 486 583 732 983 Diluted weighted average shares outstanding 55,576 61,208 Awards excluded due to anti-dilutive effect on diluted net income per share 1,027 357 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Sep. 28, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following (in thousands): September 28, June 29, Revolving credit facility $ 517,250 $ 530,250 5.00% notes 350,000 0 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations 37,788 37,532 Total long-term debt 1,455,038 1,117,782 Less unamortized debt issuance costs and discounts (9,211 ) (3,526 ) Total long-term debt less unamortized debt issuance costs and discounts 1,445,827 1,114,256 Less current installments (3,848 ) (3,563 ) $ 1,441,979 $ 1,110,693 During the first two months of fiscal 2017 , $70.0 million was drawn from the $750 million revolving credit facility primarily to fund share repurchases for which we repaid a total of $20.0 million . On September 13, 2016, we amended the revolving credit agreement to increase the borrowing capacity from $750 million to $1 billion . We capitalized debt issuance costs of $4.0 million associated with the amendment of the revolving credit facility which is included in other assets in the consolidated balance sheet as of September 28, 2016. Subsequent to the amendment, we repaid an additional $13.0 million . On September 23, 2016, we completed the private offering of $350 million of our 5.0% senior notes due October 2024 . We received proceeds of $350.0 million prior to debt issuance costs of $5.9 million and utilized the proceeds to fund a $300 million accelerated share repurchase agreement and to repay $50 million on the amended $1 billion revolving credit facility. See Note 8 for additional disclosures related to the accelerated share repurchase agreement. The notes require semi-annual interest payments beginning on April 1, 2017. Under the amended $1 billion revolving credit facility, the maturity date for $890.0 million of the facility is extended from March 12, 2020 to September 12, 2021 and the remaining $110.0 million remains due on March 12, 2020 . The amended revolving credit facility bears interest of LIBOR plus an applicable margin, which is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.00% . Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.38% for a total of 1.90% . One month LIBOR at September 28, 2016 was approximately 0.52% . As of September 28, 2016 , $482.8 million of credit is available under the revolving credit facility. Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. The financial covenants were not significantly changed as a result of the new and amended debt agreements. We are currently in compliance with all financial covenants. |
OTHER GAINS AND CHARGES
OTHER GAINS AND CHARGES | 3 Months Ended |
Sep. 28, 2016 | |
Other Gains and Charges [Abstract] | |
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended September 28, September 23, Restaurant closure charges $ 2,506 $ 0 Information technology restructuring 2,491 0 Severance 293 2,159 Gain on the sale of assets, net 0 (1,762 ) Acquisition costs 0 580 Other 788 700 $ 6,078 $ 1,677 Fiscal 2017 During the first quarter of fiscal 2017, we recorded restaurant closure charges of $2.5 million primarily related to lease termination charges for restaurants closed during the quarter. Additionally, we incurred $2.5 million of professional fees and severance associated with the information technology restructuring. Fiscal 2016 During the first quarter of fiscal 2016, we incurred $2.2 million in severance and other benefits related to organizational changes. Additionally, we recorded a $1.8 million gain on the sale of property. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 3 Months Ended |
Sep. 28, 2016 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): September 28, June 29, Sales tax $ 19,823 $ 26,280 Insurance 21,862 19,976 Property tax 20,316 15,762 Dividends 18,631 17,760 Other 52,918 41,546 $ 133,550 $ 121,324 Other liabilities consist of the following (in thousands): September 28, June 29, Straight-line rent $ 56,537 $ 56,896 Insurance 39,853 38,433 Landlord contributions 25,884 24,681 Unfavorable leases 6,167 6,521 Unrecognized tax benefits 5,955 5,811 Other 7,595 7,081 $ 141,991 $ 139,423 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 28, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: • Level 1 – inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 – inputs are unobservable and reflect our own assumptions. (a) Non-Financial Assets Measured on a Non-Recurring Basis We review the carrying amounts of property and equipment, reacquired franchise rights and transferable liquor licenses semi-annually or when events or circumstances indicate that the fair value may not exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. No impairment charges were recorded in the first quarters of fiscal 2017 and fiscal 2016. We review the carrying amount of goodwill annually or when events or circumstances indicate that the fair value may not exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. No impairment charges were recorded in the first quarters of fiscal 2017 and fiscal 2016 and no indicators of impairment were identified through the end of the first quarter of fiscal 2017. (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 amended 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, 3.88% notes and 5.00% notes are based on quoted market prices and are considered Level 2 fair value measurements. The carrying amounts, which are net of unamortized debt issuance costs, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands): September 28, 2016 June 29, 2016 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,062 $ 250,790 $ 248,918 $ 252,445 3.88% Notes $ 297,645 $ 285,528 $ 297,556 $ 302,655 5.00% Notes $ 344,082 $ 354,081 $ 0 $ 0 |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 3 Months Ended |
Sep. 28, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' DEFICIT | SHAREHOLDERS’ DEFICIT In August 2016, our Board of Directors authorized a $150.0 million increase to our existing share repurchase program resulting in total authorizations of $4.3 billion . In September 2016, we entered into a $300.0 million accelerated share repurchase agreement ("ASR Agreement") with Bank of America, N.A. (“BofA”). Pursuant to the terms of the ASR Agreement, we paid BofA $300.0 million in cash, and on September 26, 2016 , we received an initial delivery of approximately 4.6 million shares of common stock. Additional shares may be received prior to and/or at final settlement, based generally on the average of the daily volume-weighted average prices of the Company’s common stock during the term of the ASR Agreement, less a discount. Final settlement of the ASR Agreement will occur no later than March 31, 2017, although the settlement may be accelerated at BofA’s option. We also repurchased approximately 1.0 million additional shares of common stock for a total of 5.6 million shares repurchased during the first quarter of fiscal 2017 for $350.0 million . The repurchased shares included shares purchased as part of our share repurchase program and shares repurchased to satisfy team member tax withholding obligations on the vesting of restricted shares. As of September 28, 2016 , approximately $135.8 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings, and planned investment and financing needs. The accelerated share repurchase transaction qualifies for equity accounting treatment. Shares that have been paid for but not yet delivered are reflected as a reduction of additional paid-in capital while other repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit. During the first quarter of fiscal 2017 , we granted approximately 481,000 stock options with a weighted average exercise price per share of $54.33 and a weighted average fair value per share of $9.65 , and approximately 214,000 restricted share awards with a weighted average fair value per share of $54.33 . Additionally, during the first quarter of fiscal 2017 , approximately 127,000 stock options were exercised resulting in cash proceeds of approximately $3.4 million . We received an excess tax benefit from stock-based compensation of approximately $1.0 million , net of a $0.5 million tax deficiency, during the first quarter primarily as a result of the vesting and distribution of restricted stock grants and performance shares and stock option exercises. The excess tax benefit from stock-based compensation represents the additional income tax benefit received resulting from the increase in the fair value of awards from the time of grant to the exercise date. During the first quarter of fiscal 2017 , we paid dividends of $18.3 million to common stock shareholders, compared to $18.1 million in the prior year. Additionally, our Board of Directors approved a 6.25% increase in the quarterly dividend from $0.32 to $0.34 per share effective with the dividend declared in August 2016 of $18.6 million which was paid on September 29, 2016 . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of September 28, 2016 . |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Sep. 28, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for income taxes and interest in the first quarter of fiscal 2017 and 2016 are as follows (in thousands): September 28, September 23, Income taxes, net of refunds $ 21,992 $ 15,266 Interest, net of amounts capitalized 2,781 2,280 Non-cash investing and financing activities for the first quarter of fiscal 2017 and 2016 are as follows (in thousands): September 28, September 23, Retirement of fully depreciated assets $ 2,844 $ 3,757 Dividends declared but not paid 18,982 19,288 Accrued capital expenditures 3,664 3,010 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Sep. 28, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of September 28, 2016 and June 29, 2016 , we have outstanding lease guarantees or are secondarily liable for $79.9 million and $72.9 million , respectively. These amounts represent the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2017 through fiscal 2027. 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 September 28, 2016 . We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of September 28, 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. We are engaged in various legal proceedings and have certain unresolved claims pending. Reserves have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 28, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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 operating segments are predominantly in the U.S. There were no material transactions amongst our operating 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): Thirteen Week Period Ended September 28, 2016 Chili's Maggiano's Other Consolidated Company sales $ 648,643 $ 88,767 $ 0 $ 737,410 Franchise and other revenues 16,915 4,167 0 21,082 Total revenues 665,558 92,934 0 758,492 Operational expenses (a) 555,570 83,585 360 639,515 Depreciation and amortization 32,601 3,886 2,399 38,886 General and administrative 9,930 1,524 21,083 32,537 Other gains and charges 1,926 734 3,418 6,078 Total operating costs and expenses 600,027 89,729 27,260 717,016 Operating income $ 65,531 $ 3,205 $ (27,260 ) $ 41,476 Segment assets $ 1,194,678 $ 166,937 $ 96,911 1,458,526 Equity method investment 10,275 0 0 10,275 Payments for property and equipment 18,829 4,896 3,386 27,111 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. Thirteen Week Period Ended September 23, 2015 Chili's Maggiano's Other Consolidated Company sales $ 653,051 $ 87,430 $ 0 $ 740,481 Franchise and other revenues 17,602 4,476 0 22,078 Total revenues 670,653 91,906 0 762,559 Operational expenses (a) 548,766 83,141 446 632,353 Depreciation and amortization 33,131 3,634 2,406 39,171 General and administrative 9,419 1,813 21,879 33,111 Other gains and charges (942 ) 173 2,446 1,677 Total operating costs and expenses 590,374 88,761 27,177 706,312 Operating income $ 80,279 $ 3,145 $ (27,177 ) $ 56,247 Segment assets $ 1,248,541 $ 161,168 $ 135,715 $ 1,545,424 Equity method investment 10,756 0 0 10,756 Payments for property and equipment 15,972 4,568 3,191 23,731 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. Reconciliation of operating income to income before provision for income taxes: Thirteen Week Periods Ended Sept. 28, 2016 Sept. 23, 2015 Operating income $ 41,476 $ 56,247 Less interest expense (8,809 ) (7,767 ) Plus other, net 299 273 Income before provision for income taxes $ 32,966 $ 48,753 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 28, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to the end of the quarter, and pursuant to the ASR Agreement, we received 483,423 shares of our common stock from BofA on the October 31, 2016 scheduled interim delivery date. |
EFFECT OF NEW ACCOUNTING STANDA
EFFECT OF NEW ACCOUNTING STANDARDS | 3 Months Ended |
Sep. 28, 2016 | |
Effect of New Accounting Standards [Abstract] | |
EFFECT OF NEW ACCOUNTING STANDARDS | EFFECT OF NEW ACCOUNTING STANDARDS In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230). This update provides clarification regarding how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This update is 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 adoption is permitted for financial statements that have not been previously issued. The update will be applied on a retrospective basis. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. 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 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended September 28, 2016 September 23, 2015 Basic weighted average shares outstanding 54,844 60,225 Dilutive stock options 246 400 Dilutive restricted shares 486 583 732 983 Diluted weighted average shares outstanding 55,576 61,208 Awards excluded due to anti-dilutive effect on diluted net income per share 1,027 357 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): September 28, June 29, Revolving credit facility $ 517,250 $ 530,250 5.00% notes 350,000 0 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations 37,788 37,532 Total long-term debt 1,455,038 1,117,782 Less unamortized debt issuance costs and discounts (9,211 ) (3,526 ) Total long-term debt less unamortized debt issuance costs and discounts 1,445,827 1,114,256 Less current installments (3,848 ) (3,563 ) $ 1,441,979 $ 1,110,693 |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Other Gains and Charges [Abstract] | |
Schedule Of Other Gains And Charges Table | Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended September 28, September 23, Restaurant closure charges $ 2,506 $ 0 Information technology restructuring 2,491 0 Severance 293 2,159 Gain on the sale of assets, net 0 (1,762 ) Acquisition costs 0 580 Other 788 700 $ 6,078 $ 1,677 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): September 28, June 29, Sales tax $ 19,823 $ 26,280 Insurance 21,862 19,976 Property tax 20,316 15,762 Dividends 18,631 17,760 Other 52,918 41,546 $ 133,550 $ 121,324 |
Schedule of Other Liabilities | Other liabilities consist of the following (in thousands): September 28, June 29, Straight-line rent $ 56,537 $ 56,896 Insurance 39,853 38,433 Landlord contributions 25,884 24,681 Unfavorable leases 6,167 6,521 Unrecognized tax benefits 5,955 5,811 Other 7,595 7,081 $ 141,991 $ 139,423 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts, which are net of unamortized debt issuance costs, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands): September 28, 2016 June 29, 2016 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,062 $ 250,790 $ 248,918 $ 252,445 3.88% Notes $ 297,645 $ 285,528 $ 297,556 $ 302,655 5.00% Notes $ 344,082 $ 354,081 $ 0 $ 0 |
SUPPLEMENTAL CASH FLOW INFORM24
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid for Interest and Income Taxes | Cash paid for income taxes and interest in the first quarter of fiscal 2017 and 2016 are as follows (in thousands): September 28, September 23, Income taxes, net of refunds $ 21,992 $ 15,266 Interest, net of amounts capitalized 2,781 2,280 |
Non-Cash Investing and Financing Activities | Non-cash investing and financing activities for the first quarter of fiscal 2017 and 2016 are as follows (in thousands): September 28, September 23, Retirement of fully depreciated assets $ 2,844 $ 3,757 Dividends declared but not paid 18,982 19,288 Accrued capital expenditures 3,664 3,010 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 28, 2016 | |
Segment Reporting [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): Thirteen Week Period Ended September 28, 2016 Chili's Maggiano's Other Consolidated Company sales $ 648,643 $ 88,767 $ 0 $ 737,410 Franchise and other revenues 16,915 4,167 0 21,082 Total revenues 665,558 92,934 0 758,492 Operational expenses (a) 555,570 83,585 360 639,515 Depreciation and amortization 32,601 3,886 2,399 38,886 General and administrative 9,930 1,524 21,083 32,537 Other gains and charges 1,926 734 3,418 6,078 Total operating costs and expenses 600,027 89,729 27,260 717,016 Operating income $ 65,531 $ 3,205 $ (27,260 ) $ 41,476 Segment assets $ 1,194,678 $ 166,937 $ 96,911 1,458,526 Equity method investment 10,275 0 0 10,275 Payments for property and equipment 18,829 4,896 3,386 27,111 ____________________________________________________________________ (a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses. Thirteen Week Period Ended September 23, 2015 Chili's Maggiano's Other Consolidated Company sales $ 653,051 $ 87,430 $ 0 $ 740,481 Franchise and other revenues 17,602 4,476 0 22,078 Total revenues 670,653 91,906 0 762,559 Operational expenses (a) 548,766 83,141 446 632,353 Depreciation and amortization 33,131 3,634 2,406 39,171 General and administrative 9,419 1,813 21,879 33,111 Other gains and charges (942 ) 173 2,446 1,677 Total operating costs and expenses 590,374 88,761 27,177 706,312 Operating income $ 80,279 $ 3,145 $ (27,177 ) $ 56,247 Segment assets $ 1,248,541 $ 161,168 $ 135,715 $ 1,545,424 Equity method investment 10,756 0 0 10,756 Payments for property and equipment 15,972 4,568 3,191 23,731 ____________________________________________________________________ (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: Thirteen Week Periods Ended Sept. 28, 2016 Sept. 23, 2015 Operating income $ 41,476 $ 56,247 Less interest expense (8,809 ) (7,767 ) Plus other, net 299 273 Income before provision for income taxes $ 32,966 $ 48,753 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Sep. 28, 2016LocationrestaurantCountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of entity restaurants | restaurant | 1,652 |
Number of countries in which entity operates | Country | 30 |
Number of territories in which entity operates | Location | 2 |
BASIS OF PRESENTATION Adjustmen
BASIS OF PRESENTATION Adjustment for New Accounting Pronouncements (Details) - Accounting Standards Update 2015-03 [Member] $ in Millions | Jun. 29, 2016USD ($) |
2.60% notes [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt Issuance Costs, Net | $ 1 |
3.88% notes [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt Issuance Costs, Net | $ 2.2 |
Acquisition of Chili's Restau28
Acquisition of Chili's Restaurants - Additional Information (Details) $ in Millions | Jun. 25, 2015USD ($)Restaurants | Sep. 23, 2015USD ($) |
ACQUISITION OF CHILI'S RESTAURANTS [Abstract] | ||
Effective Date of Acquisition | Jun. 25, 2015 | |
Name of Acquired Entity | Pepper Dining Holding Corp. ("Pepper Dining") | |
Number of restaurants acquired | Restaurants | 103 | |
Purchase price excluding customary working capital adjustments | $ 106.5 | |
Cash and customary working capital purchase price adjustments | $ 0.9 | |
Goodwill, Acquired During Period | $ 31.9 | |
Goodwill deductible for tax purposes | $ 12.8 |
Schedule of Weighted Average Nu
Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Basic weighted average shares outstanding | 54,844 | 60,225 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 732 | 983 |
Diluted weighted average shares outstanding | 55,576 | 61,208 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,027 | 357 |
Employee Stock Option [Member] | ||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 246 | 400 |
Restricted Stock Units (RSUs) [Member] | ||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 486 | 583 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 29, 2016 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 37,788 | $ 37,532 |
Total long-term debt | 1,455,038 | 1,117,782 |
Less unamortized debt issuance costs and discounts | (9,211) | (3,526) |
Total long-term debt less unamortized debt issuance costs and discounts | 1,445,827 | 1,114,256 |
Less current installments | (3,848) | (3,563) |
Long-term debt, less current installments | 1,441,979 | 1,110,693 |
5.00% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 0 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 517,250 | $ 530,250 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Sep. 28, 2016 | Sep. 23, 2015 | Jun. 29, 2016 | |
Line of Credit Facility [Line Items] | |||
Proceeds from issuance of long-term debt | $ 350,000,000 | $ 0 | |
Payments on revolving credit facility | (83,000,000) | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | $ 750,000,000 | |
Line of Credit Facility, Covenant Compliance | We are currently in compliance with all financial covenants. | ||
$750M Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Proceeds from Lines of Credit | $ 70,000,000 | ||
Repayments of Lines of Credit | 20,000,000 | ||
$1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Repayments of Lines of Credit | 13,000,000 | ||
Debt Issuance Costs, Gross | 4,000,000 | ||
Additional repayments of lines of credit | 50,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 482,800,000 | ||
Line of Credit Facility, Interest Rate During Period | 1.90% | ||
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | ||
$890M of the $1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | Sep. 12, 2021 | ||
$110M of the $1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | Mar. 12, 2020 | ||
Maximum [Member] | $1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Minimum [Member] | $1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.375% | ||
London Interbank Offered Rate (LIBOR) [Member] | $1B Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.52% | ||
5.00% notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Debt Instrument, Maturity Date | Oct. 23, 2024 | ||
Debt Issuance Costs, Gross | $ 5,900,000 |
Other Gains and Charges - Sched
Other Gains and Charges - Schedule of Other Gains and Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Other Gains and Charges [Abstract] | ||
Restaurant closure charges | $ 2,506 | $ 0 |
Information technology restructuring | 2,491 | 0 |
Severance | 293 | 2,159 |
Gain on the sale of assets, net | 0 | 1,762 |
Acquisition costs | 0 | 580 |
Other | 788 | 700 |
Gains And Charges Other | $ 6,078 | $ 1,677 |
Other Gains and Charges - Addit
Other Gains and Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Other Gains and Charges [Abstract] | ||
Restaurant closure charges | $ 2,506 | $ 0 |
Information technology restructuring | 2,491 | 0 |
Severance | 293 | 2,159 |
(Gain) Loss on the sale of assets, net | $ 0 | $ (1,762) |
Accrued and Other Liabilities34
Accrued and Other Liabilities (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 29, 2016 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Sales tax | $ 19,823 | $ 26,280 |
Insurance | 21,862 | 19,976 |
Property tax | 20,316 | 15,762 |
Dividends | 18,631 | 17,760 |
Other | 52,918 | 41,546 |
Other accrued liabilities | $ 133,550 | $ 121,324 |
Accrued and Other Liabilities35
Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 29, 2016 |
Accrued and Other Liabilities (Other Liabilities) [Abstract] | ||
Straight-line rent | $ 56,537 | $ 56,896 |
Insurance | 39,853 | 38,433 |
Landlord contributions | 25,884 | 24,681 |
Unfavorable leases | 6,167 | 6,521 |
Unrecognized tax benefits | 5,955 | 5,811 |
Other | 7,595 | 7,081 |
Other liabilities | $ 141,991 | $ 139,423 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Fair Value Disclosures (Assets Measured At Fair Value on Non-Recurring Basis [Abstract] | ||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 |
Goodwill, Impairment Loss | 0 | 0 |
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 |
Fair Value Disclosures (Other F
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 29, 2016 |
2.60% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Long-term Debt | $ 249,062 | $ 248,918 |
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
Long-term Debt, Fair Value | $ 250,790 | 252,445 |
3.88% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Long-term Debt | $ 297,645 | 297,556 |
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |
Long-term Debt, Fair Value | $ 285,528 | 302,655 |
5.00% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Long-term Debt | $ 344,082 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Long-term Debt, Fair Value | $ 354,081 | $ 0 |
Shareholder's Deficit - Additio
Shareholder's Deficit - Additional information (Share Repurchase) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased, shares | 5.6 | |
Payments for repurchase of common stock | $ 349,963 | $ 51,061 |
Accelerated Share Repurchase Agreement [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Date of initial delivery of shares | Sep. 26, 2016 | |
Shares repurchased, shares | 4.6 | |
Payments for repurchase of common stock | $ 300,000 | |
Other Share Repurchases [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased, shares | 1 |
SHAREHOLDERS' DEFICIT Sharehold
SHAREHOLDERS' DEFICIT Shareholders' Deficit - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 28, 2016 | Sep. 23, 2015 | Jun. 29, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Increase In Share Repurchase Program | $ 150,000,000 | ||
Stock repurchase program, authorized amount | 4,300,000,000 | ||
Amount available under share repurchase authorizations | $ 135,800,000 | ||
Stock option, granted | 481,000 | ||
Stock option, weighted average exercise price | $ 54.33 | ||
Stock option, weighted average fair value | $ 9.65 | ||
Restricted share awards, granted | 214,000 | ||
Restricted share awards, weighted average fair value | $ 54.33 | ||
Stock option exercised, shares | 127,000 | ||
Cash proceeds from stock option exercised | $ 3,396,000 | $ 1,306,000 | |
Excess tax benefits from stock-based compensation, net | 1,000,000 | ||
Income tax deficiency from share-based compensation | 500,000 | ||
Payments of dividends | $ 18,298,000 | $ 18,076,000 | |
Percentage increase in quarterly dividend declared | 6.25% | ||
Dividends per share declared | $ 0.34 | $ 0.32 | |
Dividends | $ 18,631,000 | $ 17,760,000 | |
Dividends Payable, Date to be Paid | Sep. 29, 2016 |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information - Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes, net of refunds | $ 21,992 | $ 15,266 |
Interest, net of amounts capitalized | $ 2,781 | $ 2,280 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Other Significant Noncash Transactions [Line Items] | ||
Retirement of fully depreciated assets | $ 2,844 | $ 3,757 |
Accrued capital expenditures | 3,664 | 3,010 |
Dividend Declared [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Dividends declared but not paid | $ 18,982 | $ 19,288 |
Contingencies - Additional info
Contingencies - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Jun. 29, 2016 | |
Guarantor Obligations [Line Items] | ||
Description of Material Contingencies of Parent Company | No material liabilities have been recorded | |
Letters of Credit Outstanding, Amount | $ 28,100 | |
Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 79,900 | $ 72,900 |
Loss Contingency, Accrual, Current | $ 0 |
Loss Contingencies (Details)
Loss Contingencies (Details) | Sep. 28, 2016LegalMatter |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 0 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 28, 2016 | Sep. 23, 2015 | Jun. 29, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Company sales | $ 737,410 | $ 740,481 | ||
Franchise and other revenues | 21,082 | 22,078 | ||
Revenues | 758,492 | 762,559 | ||
Operating Expenses | [1] | 639,515 | 632,353 | |
Depreciation and amortization | 38,886 | 39,171 | ||
General and administrative | 32,537 | 33,111 | ||
Other gains and charges | 6,078 | 1,677 | ||
Costs and Expenses | 717,016 | 706,312 | ||
Operating Income (Loss) | 41,476 | 56,247 | ||
Assets | 1,458,526 | 1,545,424 | $ 1,469,460 | |
Equity Method Investments | 10,275 | 10,756 | ||
Payments to Acquire Property, Plant, and Equipment | 27,111 | 23,731 | ||
Chili's Restaurants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 648,643 | 653,051 | ||
Franchise and other revenues | 16,915 | 17,602 | ||
Revenues | 665,558 | 670,653 | ||
Operating Expenses | [1] | 555,570 | 548,766 | |
Depreciation and amortization | 32,601 | 33,131 | ||
General and administrative | 9,930 | 9,419 | ||
Other gains and charges | 1,926 | (942) | ||
Costs and Expenses | 600,027 | 590,374 | ||
Operating Income (Loss) | 65,531 | 80,279 | ||
Assets | 1,194,678 | 1,248,541 | ||
Equity Method Investments | 10,275 | 10,756 | ||
Payments to Acquire Property, Plant, and Equipment | 18,829 | 15,972 | ||
Maggiano's Restaurants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 88,767 | 87,430 | ||
Franchise and other revenues | 4,167 | 4,476 | ||
Revenues | 92,934 | 91,906 | ||
Operating Expenses | [1] | 83,585 | 83,141 | |
Depreciation and amortization | 3,886 | 3,634 | ||
General and administrative | 1,524 | 1,813 | ||
Other gains and charges | 734 | 173 | ||
Costs and Expenses | 89,729 | 88,761 | ||
Operating Income (Loss) | 3,205 | 3,145 | ||
Assets | 166,937 | 161,168 | ||
Equity Method Investments | 0 | 0 | ||
Payments to Acquire Property, Plant, and Equipment | 4,896 | 4,568 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 0 | 0 | ||
Franchise and other revenues | 0 | 0 | ||
Revenues | 0 | 0 | ||
Operating Expenses | [1] | 360 | 446 | |
Depreciation and amortization | 2,399 | 2,406 | ||
General and administrative | 21,083 | 21,879 | ||
Other gains and charges | 3,418 | 2,446 | ||
Costs and Expenses | 27,260 | 27,177 | ||
Operating Income (Loss) | (27,260) | (27,177) | ||
Assets | 96,911 | 135,715 | ||
Equity Method Investments | 0 | 0 | ||
Payments to Acquire Property, Plant, and Equipment | $ 3,386 | $ 3,191 | ||
[1] | Operational expenses includes cost of sales, restaurant labor and restaurant expenses. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating Income (Loss) | $ 41,476 | $ 56,247 |
Interest expense | 8,809 | 7,767 |
Other Nonoperating Income (Expense) | 299 | 273 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 32,966 | $ 48,753 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - shares | 1 Months Ended | 3 Months Ended |
Nov. 04, 2016 | Sep. 28, 2016 | |
Subsequent Event [Line Items] | ||
Shares repurchased, shares | 5,600,000 | |
Dividends Payable, Date to be Paid | Sep. 29, 2016 | |
Accelerated Share Repurchase Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Shares repurchased, shares | 4,600,000 | |
Subsequent Event [Member] | Accelerated Share Repurchase Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Shares repurchased, shares | 483,423 | |
Subsequent Event, Date | Oct. 31, 2016 |