Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 28, 2017 | Aug. 14, 2017 | Dec. 28, 2016 | |
Document Documentand Entity Information [Abstract] | |||
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 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 28, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 48,454,974 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,411,056,503 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |||
Revenues: | |||||
Company sales | $ 3,062,579 | $ 3,166,659 | $ 2,904,746 | ||
Franchise and other revenues | 88,258 | 90,830 | 97,532 | ||
Total revenues | 3,150,837 | 3,257,489 | 3,002,278 | ||
Operating costs and expenses: | |||||
Cost of sales | 791,321 | 840,204 | 775,063 | ||
Restaurant labor | 1,017,945 | 1,036,005 | 929,206 | ||
Restaurant expenses | 773,510 | 762,663 | 703,334 | ||
Company restaurant expenses | 2,582,776 | 2,638,872 | 2,407,603 | ||
Depreciation and amortization | 156,409 | 156,368 | 145,242 | ||
General and administrative | 132,819 | 127,593 | 133,467 | ||
Other gains and charges | 22,655 | 17,180 | 4,764 | ||
Total operating costs and expenses | 2,894,659 | 2,940,013 | 2,691,076 | ||
Operating income | 256,178 | 317,476 | 311,202 | ||
Interest expense | 49,547 | 32,574 | 29,006 | ||
Other, net | (1,877) | (1,485) | (2,081) | ||
Income before provision for income taxes | 208,508 | 286,387 | 284,277 | ||
Provision for income taxes | 57,685 | 85,767 | 89,618 | ||
Net income | $ 150,823 | $ 200,620 | [1] | $ 194,659 | [1] |
Basic Net Income Per Share: | |||||
Basic net income per share (in dollars per share) | $ 2.98 | $ 3.47 | $ 3.09 | ||
Diluted Net Income Per Share: | |||||
Diluted net income per share (in dollars per share) | $ 2.94 | $ 3.42 | $ 3.02 | ||
Basic weighted average shares outstanding (in shares) | 50,638 | 57,895 | 63,072 | ||
Diluted weighted average shares outstanding (in shares) | 51,250 | 58,684 | 64,404 | ||
Other Comprehensive Income (Loss) | |||||
Foreign currency translation adjustment | $ (327) | $ (2,964) | $ (7,690) | ||
Other comprehensive loss | (327) | (2,964) | (7,690) | ||
Comprehensive income | $ 150,496 | $ 197,656 | $ 186,969 | ||
Common Stock, Dividends, Per Share, Declared | $ 1.36 | $ 1.28 | $ 1.12 | ||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 29, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 9,064 | $ 31,446 |
Accounts receivable, net | 44,658 | 45,612 |
Inventories | 24,997 | 25,104 |
Restaurant supplies | 46,380 | 45,455 |
Prepaid expenses | 29,293 | 30,825 |
Total current assets | 154,392 | 178,442 |
Property and Equipment, at Cost: | ||
Land | 149,098 | 147,626 |
Buildings and leasehold improvements | 1,655,227 | 1,626,924 |
Furniture and equipment | 713,228 | 663,472 |
Construction-in-progress | 21,767 | 23,965 |
Gross property and equipment | 2,539,320 | 2,461,987 |
Less accumulated depreciation and amortization | (1,538,706) | (1,418,835) |
Net property and equipment | 1,000,614 | 1,043,152 |
Other Assets: | ||
Goodwill | 163,953 | 164,007 |
Deferred income taxes, net | 37,029 | 14,325 |
Intangibles | 27,512 | 30,225 |
Other | 30,200 | 28,299 |
Total other assets | 258,694 | 236,856 |
Total assets | 1,413,700 | 1,458,450 |
Current Liabilities: | ||
Current installments of long-term debt | 9,649 | 3,563 |
Accounts payable | 104,231 | 95,414 |
Gift card liability | 126,482 | 122,329 |
Accrued payroll | 70,281 | 70,999 |
Other accrued liabilities | 121,582 | 121,324 |
Income taxes payable | 14,203 | 22,022 |
Total current liabilities | 446,428 | 435,651 |
Long-term debt, less current installments | 1,319,829 | 1,110,693 |
Other liabilities | 141,124 | 137,682 |
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 48,440,721 shares outstanding at June 28, 2017 and 176,246,649 shares issued and 55,420,656 shares outstanding at June 29, 2016 | 17,625 | 17,625 |
Additional paid-in capital | 502,074 | 495,110 |
Accumulated other comprehensive loss | (11,921) | (11,594) |
Retained earnings | 2,627,073 | 2,545,716 |
Shareholders' equity including treasury stock | 3,134,851 | 3,046,857 |
Less treasury stock, at cost (127,805,928 shares at June 28, 2017 and 120,825,993 shares at June 29, 2016) | (3,628,532) | (3,272,433) |
Total shareholders’ deficit | (493,681) | (225,576) |
Total liabilities and shareholders’ deficit | $ 1,413,700 | $ 1,458,450 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 28, 2017 | 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 | 48,440,721 | 55,420,656 |
Treasury stock, shares | 127,805,928 | 120,825,993 |
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) | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (10,317) | [1] | $ 0 | $ 0 | $ (10,317) | [1] | $ 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 | 194,659 | [1] | 0 | 0 | 194,659 | [1] | 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 | 60,586,000 | |||||||
Balance at Jun. 24, 2015 | (90,812) | $ 17,625 | 490,111 | 2,419,331 | (3,009,249) | (8,630) | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | (10,317) | |||||||
Restatement of Prior Year Income, Net of Tax | (2,100) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 200,620 | [1] | 0 | 0 | 200,620 | [1] | 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 | $ (225,576) | $ 17,625 | 495,110 | 2,545,716 | (3,272,433) | (11,594) | ||
Restatement of Prior Year Income, Net of Tax | (100) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 150,823 | 0 | 0 | 150,823 | 0 | 0 | ||
Other comprehensive loss | (327) | 0 | 0 | 0 | 0 | (327) | ||
Dividends | (69,466) | 0 | 0 | (69,466) | 0 | 0 | ||
Stock-based compensation | 14,453 | 0 | 14,453 | 0 | 0 | 0 | ||
Purchases of treasury stock | (370,877) | $ 0 | (1,753) | 0 | (369,124) | 0 | ||
Purchases of treasury stock, shares | (7,451,000) | |||||||
Issuances of common stock | 5,621 | $ 0 | (7,404) | 0 | 13,025 | 0 | ||
Issuances of common stock, shares | 471,000 | |||||||
Excess tax benefit from stock-based compensation | $ 1,668 | $ 0 | 1,668 | 0 | 0 | 0 | ||
Balance, shares at Jun. 28, 2017 | 48,440,721 | 48,441,000 | ||||||
Balance at Jun. 28, 2017 | $ (493,681) | $ 17,625 | $ 502,074 | 2,627,073 | $ (3,628,532) | $ (11,921) | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (12,500) | |||||||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Jun. 28, 2017 | Sep. 28, 2016 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Common Stock, Dividends, Per Share, Declared | $ 0.34 | $ 0.34 | $ 0.32 | $ 1.36 | $ 1.28 | $ 1.12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |||
Cash Flows from Operating Activities: | |||||
Net income | $ 150,823 | $ 200,620 | [1] | $ 194,659 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 156,409 | 156,368 | 145,242 | ||
Stock-based compensation | 14,568 | 15,159 | 14,802 | ||
Deferred income taxes, net | (22,704) | 23,902 | 14,199 | ||
Restructure charges and other impairments | 14,412 | 17,445 | 5,636 | ||
Net (gain) loss on disposal of assets | (377) | 87 | 4,523 | ||
Undistributed loss (earnings) on equity investments | 1 | (571) | (368) | ||
Other | 3,009 | 1,918 | 250 | ||
Changes in assets and liabilities: | |||||
Accounts receivable, net | 3,487 | (3,682) | 1,932 | ||
Inventories | (62) | 11 | 475 | ||
Restaurant supplies | (1,496) | (1,651) | 518 | ||
Prepaid expenses | (1,694) | (11,479) | 3,850 | ||
Other assets | 308 | 72 | (2,140) | ||
Current income taxes | (9,915) | 9,415 | 7,260 | ||
Accounts payable | 2,984 | (5,783) | 1,117 | ||
Gift card liability | 4,153 | 6,190 | 10,348 | ||
Accrued payroll | (714) | (17,229) | 5,330 | ||
Other accrued liabilities | (4,805) | 1,026 | (38,273) | ||
Other liabilities | 4,499 | 2,882 | (749) | ||
Net cash provided by operating activities | 312,886 | 394,700 | 368,611 | ||
Cash Flows from Investing Activities: | |||||
Payments for property and equipment | (102,573) | (112,788) | (140,262) | ||
Proceeds from sale of assets | 3,157 | 4,256 | 1,950 | ||
Payment for business acquisition, net of cash acquired | 0 | (105,577) | 0 | ||
Net cash used in investing activities | (99,416) | (214,109) | (138,312) | ||
Cash Flows from Financing Activities: | |||||
Proceeds from issuance of long-term debt | 350,000 | 0 | 0 | ||
Purchases of treasury stock | (370,877) | (284,905) | (306,255) | ||
Payments on revolving credit facility | (388,000) | (110,000) | (177,000) | ||
Borrowings on revolving credit facility | 250,000 | 256,500 | 480,750 | ||
Payments of dividends | (70,771) | (74,066) | (70,832) | ||
Payments for debt issuance costs | (10,216) | 0 | (2,501) | ||
Proceeds from issuances of treasury stock | 5,621 | 6,147 | 16,259 | ||
Payments on long-term debt | (3,832) | (3,402) | (189,177) | ||
Excess tax benefits from stock-based compensation | 2,223 | 5,460 | 15,893 | ||
Net cash used in financing activities | (235,852) | (204,266) | (232,863) | ||
Net change in cash and cash equivalents | (22,382) | (23,675) | (2,564) | ||
Cash and cash equivalents at beginning of year | 31,446 | 55,121 | 57,685 | ||
Cash and cash equivalents at end of year | $ 9,064 | $ 31,446 | $ 55,121 | ||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 , we owned, operated, or franchised 1,674 restaurants in the United States and 30 countries and two territories outside of the United States. (b) Basis of Presentation Our consolidated financial statements include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We have a 52/53 week fiscal year ending on the last Wednesday in June. Fiscal years 2017 and 2015 , which ended on June 28, 2017 and June 24, 2015 , respectively, each contained 52 weeks. Fiscal year 2016 ended on June 29, 2016 and contained 53 weeks. The estimated impact of the 53rd week in fiscal 2016 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 connection with the preparation of the consolidated financial statements for the year ended June 28, 2017, we discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions included a net increase in the provision for income taxes of $0.1 million and $2.1 million for fiscal 2016 and 2015, respectively. These revisions for fiscal 2016 offset and therefore resulted in no change to earnings per share for fiscal 2016 and a $0.03 decrease for fiscal 2015. The cumulative effect of the changes to retained earnings at the beginning of fiscal 2015, the earliest date presented in the consolidated financial statements for the year ended June 28, 2017, was a reduction of $10.3 million . For additional information, see Note 16 - Immaterial Correction of Prior Period Financial Statements. 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 was 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 was 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 any impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure should include the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events. This update was effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. We adopted the guidance effective June 28, 2017. Accordingly, we performed an evaluation and determined that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern through August 28, 2018. The adoption did not have any impact 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, digital entertainment 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, generally upon the execution of the agreement when the development rights are conveyed to the franchisee. 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) Definite-lived Intangible Assets Definite-lived intangible assets primarily include reacquired franchise rights resulting from our acquisitions. Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. 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 semi-annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. (k) 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 at the point in time we determine that it is probable that such sales levels will be achieved. 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. (l) 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 $103.8 million , $93.6 million and $94.3 million in fiscal 2017 , 2016 , and 2015 , respectively, and are included in restaurant expenses in the consolidated statements of comprehensive income. (m) Goodwill 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 values. No indicators of impairment were identified through the end of fiscal year 2017 . 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. (n) 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. 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. (o) 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. (p) 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. (q) 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. (r) 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. We recognize compensation expense for only the portion of share-based awards that are expected to vest. Therefore, we apply estimated forfeiture rates that are derived from our historical forfeitures of similar awards. Certain employees are eligible to receive stock options, performance shares, restricted stock and restricted stock units, while non-employee members of the Board of Directors are eligible to receive stock options, restricted stock and restricted stock units. Performance shares represent a right to receive shares of common stock upon satisfaction of company performance goals at the end of a three-year cycle. Vesting of performance shares granted in fiscal 2017 is contingent upon meeting company performance goals based on our rate of earnings growth at the end of the three-year period. Compensation expense for the performance shares granted in fiscal 2017 is recorded based on management's periodic estimates of the number of shares that will ultimately be issued and the fair value of the shares as determined by our closing stock price on the date of grant. A cumulative expense adjustment is recognized when that estimate changes. The fair value of our performance shares granted prior to fiscal 2017, which contain a market condition, was 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 $14.5 million , $15.2 million and $15.0 million for fiscal 2017 , 2016 and 2015 , respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income related to stock-based compensation expense was approximately $5.7 million , $5.8 million and $5.5 million during fiscal 2017 , 2016 and 2015 , respectively. The weighted average fair values of option grants were $9.30 , $10.48 and $11.72 during fiscal 2017 , 2016 and 2015 , respectively. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: 2017 2016 2015 Expected volatility 25.5 % 27.5 % 31.0 % Risk-free interest rate 1.3 % 1.5 % 1.6 % Expected lives 5 years 5 years 5 years Dividend yield 2.6 % 2.4 % 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. (s) 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 28, 2017 , no preferred shares were issued. (t) 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”). The ASR Agreement settled in January 2017. Pursuant to the terms of the ASR Agreement, we paid BofA $300.0 million in cash and received 5.9 million shares of our common stock. The accelerated share repurchase transaction qualified for equity accounting treatment. Repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit. We also repurchased approximately 1.6 million additional shares of common stock for a total of 7.5 million shares repurchased during fiscal 2017 for $370.9 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 June 28, 2017 , approximately $115.8 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. Additionally, during fiscal 2017 , approximately 225,000 stock options were exercised resulting in cash proceeds of approximately $5.6 million . During fiscal 2017 , we paid dividends of $70.8 million to common stock shareholders, compared to $74.1 million in the prior year. Our Board of Directors approved a 6.3% increase in the quarterly dividend from $0.32 to $0.34 per share effective with the dividend declared in August 2016. We also declared a quarterly dividend of $0.34 per share in May 2017 which was paid subsequent to the end of the year on June 29, 2017 in the amount of $16.6 million . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of June 28, 2017 . (u) 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 2017 , 2016 and 2015 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 Mexico joint venture with CMR, S.A.B. de C.V. 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. (v) 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. 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): 2017 2016 2015 Basic weighted average shares outstanding 50,638 57,895 63,072 Dilutive stock options 192 316 569 Dilutive restricted shares 420 473 763 612 789 1,332 Diluted weighted average shares outstanding 51,250 58,684 64,404 Awards excluded due to anti-dilutive effect on earnings per share 973 550 119 (w) 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 company-owned restaurants in Canada and franchised locations in the U.S and 30 countries and two territories outside of the U.S. Additional information about our segments, including financial information, is included in Note 15. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Jun. 28, 2017 | |
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 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 were 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 excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill. Of the $31.9 million recorded as goodwill, $12.8 million is expected 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. 28, 2017 | |
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 28, 2017 , 45 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. 28, 2017 | |
Disclosure Other Gains And Charges [Abstract] | |
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): 2017 2016 2015 Severance and other benefits $ 6,591 $ 3,304 $ 1,182 Restaurant impairment charges 5,190 10,651 2,255 Restaurant closure charges 4,084 3,780 1,736 Information technology restructuring 2,739 — — Accelerated depreciation 1,988 — — Lease guarantee charges 1,089 — — (Gain) loss on the sale of assets, net (2,659 ) (2,858 ) 1,093 Impairment of investment — 1,000 — Acquisition costs — 700 1,100 Impairment of intangible assets — 392 645 Litigation — (3,191 ) (2,753 ) Other 3,633 3,402 (494 ) $ 22,655 $ 17,180 $ 4,764 Fiscal 2017 During fiscal 2017, we completed a reorganization of the Chili’s restaurant operations team and certain departments at the corporate headquarters to better align our staffing with the current management strategy and resource needs. This employee separation action resulted in severance charges and accelerated stock-based compensation expenses of $6.6 million . All of the severance amounts were paid by the end of fiscal 2017. We recorded restaurant impairment charges of $5.2 million primarily related to the long-lived assets and reacquired franchise rights of ten underperforming Chili's restaurants which will continue to operate. See Note 10 for fair value disclosures. Additionally, we recorded restaurant closure charges of $4.1 million primarily related to lease charges and other costs associated with closed restaurants. We incurred $2.7 million of professional fees and severance associated with our information technology restructuring offset by a $2.7 million gain on the sale of property. We also recorded accelerated depreciation charges of $2.0 million related to long-lived assets to be disposed of and lease guarantee charges of $1.1 million related to leases that were assigned to a divested brand. For additional lease guarantee disclosures, see Note 14 - Commitments and Contingencies. Other charges primarily include $2.4 million of expenses for consulting fees related to a special project. 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 closed during fiscal 2017 and $1.0 million related to a cost method investment. We recorded restaurant closure charges of $3.8 million that primarily consisted 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 plaintiff in a class action lawsuit against US Foods styled as In re U.S. Foodservice, Inc. Pricing Litigation . A settlement agreement was fully executed by all parties in September 2015, and we received approximately $2.0 million during the second quarter of fiscal 2016 in settlement of this litigation. 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 included $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. We recorded restaurant impairment charges of $2.3 million related to underperforming restaurants that either continue to operate or closed during 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. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Chili's Maggiano's Consolidated Chili's Maggiano's Consolidated Balance at beginning of year $ 125,610 $ 38,397 $ 164,007 $ 93,984 $ 38,397 $ 132,381 Changes in goodwill: Additions (a) — — — 31,912 — 31,912 Foreign currency translation adjustment (54 ) — (54 ) (286 ) — (286 ) Balance at end of year $ 125,556 $ 38,397 $ 163,953 $ 125,610 $ 38,397 $ 164,007 ____________________________________________________________________ (a) Fiscal 2016 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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 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) $ 16,170 $ (4,175 ) $ 11,995 $ 17,284 $ (3,041 ) $ 14,243 Chili's other 5,985 (1,070 ) 4,915 5,988 (713 ) 5,275 $ 22,155 $ (5,245 ) $ 16,910 $ 23,272 $ (3,754 ) $ 19,518 Indefinite-lived intangible assets Chili's liquor licenses $ 9,670 $ 9,775 Maggiano's liquor licenses 932 932 $ 10,602 $ 10,707 Amortization expense for all definite-lived intangible assets was $1.4 million , $1.5 million and $0.8 million in fiscal 2017 , 2016 and 2015 , respectively. Annual amortization expense for definite-lived intangible assets will approximate $1.5 million for each of the next five fiscal years. ____________________________________________________________________ (a) The gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $0.1 million and $0.3 million for fiscal 2017 and 2016, respectively. We also recorded an impairment charge of $0.8 million and $0.2 million in fiscal 2017 and fiscal 2016, respectively. See Note 10 for additional disclosures. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Jun. 28, 2017 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): 2017 2016 Sales tax $ 22,561 $ 26,280 Insurance 17,484 19,976 Property tax 16,566 15,762 Dividends 16,649 17,760 Other 48,322 41,546 $ 121,582 $ 121,324 Other liabilities consist of the following (in thousands): 2017 2016 Straight-line rent $ 57,464 $ 56,896 Insurance 42,532 38,433 Landlord contributions 26,402 24,681 Unfavorable leases 5,398 6,521 Unrecognized tax benefits 3,116 4,070 Other 6,212 7,081 $ 141,124 $ 137,682 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before provision for income taxes consists of the following (in thousands): 2017 2016 2015 Domestic $ 186,679 $ 258,905 $ 257,228 Foreign 21,829 27,482 27,049 Total income before provision for income taxes $ 208,508 $ 286,387 $ 284,277 The provision for income taxes consists of the following (in thousands): 2017 2016 2015 Current income tax expense: Federal $ 64,407 $ 48,896 $ 60,575 State 13,358 10,843 11,990 Foreign 2,490 3,497 3,319 Total current income tax expense 80,255 63,236 75,884 Deferred income tax (benefit) expense: Federal (19,647 ) 21,842 11,674 State (3,064 ) 704 2,156 Foreign 141 (15 ) (96 ) Total deferred income tax (benefit) expense (22,570 ) 22,531 13,734 $ 57,685 $ 85,767 $ 89,618 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): 2017 2016 2015 Income tax expense at statutory rate $ 72,978 $ 100,236 $ 99,496 FICA tax credit (20,657 ) (20,497 ) (18,633 ) State income taxes, net of Federal benefit 5,928 9,614 8,646 Other (564 ) (3,586 ) 109 $ 57,685 $ 85,767 $ 89,618 The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Deferred income tax assets: Leasing transactions $ 32,019 $ 32,826 Stock-based compensation 14,029 12,817 Restructure charges and impairments 3,533 2,211 Insurance reserves 19,700 18,015 Employee benefit plans 288 501 Gift cards 23,670 18,609 State net operating losses 2,554 3,030 Federal credit carryover 12,697 14,722 State credit carryover 3,148 3,238 Other, net 8,480 7,930 Less: Valuation allowance (5,232 ) (5,315 ) Total deferred income tax assets 114,886 108,584 Deferred income tax liabilities: Prepaid expenses 19,506 17,360 Goodwill and other amortization 30,213 28,659 Depreciation and capitalized interest on property and equipment 26,375 43,858 Other, net 1,763 4,382 Total deferred income tax liabilities 77,857 94,259 Net deferred income tax asset $ 37,029 $ 14,325 We have deferred tax assets of $6.4 million reflecting the benefit of state loss carryforwards, before federal benefit and valuation allowance, which expire at various dates between fiscal 2018 and fiscal 2037. We have deferred tax assets of $12.7 million of federal and $4.8 million state tax credits, before federal benefit and valuation allowance, which expire at various dates between fiscal 2024 and fiscal 2035. The recognized deferred tax asset for the state loss carryforwards is $0.5 million and the federal tax credits is $12.7 million . The federal credit carryover is limited by Section 382 of the Internal Revenue Code. The valuation allowance decreased by $0.1 million in fiscal 2017 to recognize certain state net operating loss benefits management believes are more-likely-than-not to be realized. No provision was made for the United States federal and state income taxes on certain outside basis differences, which primarily relate to accumulated unrepatriated foreign earnings of approximately $3.8 million as of June 28, 2017. 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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Balance at beginning of year $ 4,989 $ 3,843 Additions based on tax positions related to the current year 402 1,359 Additions based on tax positions related to prior years 31 2,332 Settlements with tax authorities (681 ) (1,963 ) Expiration of statute of limitations (679 ) (582 ) Balance at end of year $ 4,062 $ 4,989 The total amount of unrecognized tax benefits that would affect income tax expense if resolved in our favor was $3.1 million and $3.9 million as of June 28, 2017 and June 29, 2016 , respectively. We do not expect any material changes to our liability for uncertain tax positions during the next 12 months. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal 2017, we recognized approximately $0.2 million in interest expense. During fiscal 2016 and 2015, we recognized expenses of approximately $1.3 million and $0.2 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 28, 2017 , we had $0.6 million ( $0.4 million net of a $0.2 million Federal deferred tax benefit) of interest and penalties accrued, compared to $0.8 million ( $0.6 million net of a $0.2 million Federal deferred tax benefit) at June 29, 2016 . Our income tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate. The periods subject to examination for our federal return are fiscal 2015 to fiscal 2016 and fiscal 2013 to fiscal 2016 for our Canadian returns. State income tax returns are generally subject to examination for a period of three to five years after filing. We have various state income tax returns in the process of examination or settlements. Our federal return for fiscal 2015 and 2016 are currently under examination through the Internal Revenue Service: Compliance Assurance Process (CAP) program. There are no unrecorded liabilities associated with these examinations. |
DEBT
DEBT | 12 Months Ended |
Jun. 28, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consists of the following (in thousands): 2017 2016 Revolving credit facility $ 392,250 $ 530,250 5.00% notes 350,000 — 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations (see Note 9) 45,417 37,532 Total long-term debt 1,337,667 1,117,782 Less unamortized debt issuance costs and discounts (8,189 ) (3,526 ) Total long-term debt less unamortized debt issuance costs and discounts 1,329,478 1,114,256 Less current installments (9,649 ) (3,563 ) $ 1,319,829 $ 1,110,693 On September 23, 2016, we completed the private offering of $350.0 million of our 5.0% senior notes due October 2024 (the "2024 Notes"). We received proceeds of $350.0 million prior to debt issuance costs of $6.2 million and utilized the proceeds to fund a $300 million accelerated share repurchase agreement and to repay $50.0 million on the amended $1 billion revolving credit facility. See Note 1 for additional disclosures related to the accelerated share repurchase agreement. The notes require semi-annual interest payments which began on April 1, 2017. The indenture for the 2024 Notes contains certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indenture) to (i) create liens on Principal Property (as defined in the Indenture), (ii) enter into any Sale and Leaseback Transaction (as defined in the Indenture) with respect to any property, and (iii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions and limitations. On September 13, 2016, we amended the revolving credit facility 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 are included in other assets in the consolidated balance sheet as of June 28, 2017 . During fiscal 2017, net payments of $138.0 million were made on the revolving credit facility. Under the amended $1 billion revolving credit facility, the maturity date for $890.0 million of the facility was 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 2.60% . One month LIBOR at June 28, 2017 was approximately 1.22% . 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 of the revolving credit facility during fiscal 2016. 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. The notes require semi-annual interest payments which began in the second quarter of fiscal 2014. As of June 28, 2017, $607.8 million of credit is available under the revolving credit facility. Obligations under our 2.60% notes, which will mature in May 2018, have been classified as long-term, reflecting our ability to refinance these notes through our existing 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. Excluding capital lease obligations (see Note 9) and interest, our long-term debt maturities for the five years following June 28, 2017 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2018 $ 250,000 2019 — 2020 — 2021 — 2022 392,250 Thereafter 650,000 $ 1,292,250 |
LEASES
LEASES | 12 Months Ended |
Jun. 28, 2017 | |
Leases [Abstract] | |
LEASES | LEASES (a) Capital Leases We lease certain buildings under capital leases. The asset value of $38.8 million at June 28, 2017 and June 29, 2016 , and the related accumulated amortization of $26.0 million and $24.1 million at June 28, 2017 and June 29, 2016 , respectively, are included in buildings and leasehold improvements. We also lease certain technology equipment under capital leases. The asset value of $12.4 million and $0.7 million at June 28, 2017 and June 29, 2016 , and the related accumulated amortization of $0.7 million and $0.2 million at June 28, 2017 and June 29, 2016 , respectively, are included in furniture and equipment. Amortization of assets under capital leases is included in depreciation and amortization expense. (b) Operating Leases We lease restaurant facilities and office space under operating leases. The majority having terms expiring at various dates through fiscal 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): 2017 2016 2015 Straight-lined minimum rent $ 109,819 $ 107,776 $ 92,917 Contingent rent 3,821 4,408 4,774 Other 11,682 11,283 9,998 Total rent expense $ 125,322 $ 123,467 $ 107,689 (c) Commitments As of June 28, 2017 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2018 $ 11,823 $ 122,598 2019 7,636 110,238 2020 7,164 97,645 2021 4,820 82,707 2022 3,902 63,584 Thereafter 24,074 130,083 Total minimum lease payments(a) 59,419 $ 606,855 Imputed interest (average rate of 7%) (14,002 ) Present value of minimum lease payments 45,417 Less current installments (9,649 ) $ 35,768 ____________________________________________________________________ (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 $25.0 million and $40.8 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Jun. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES (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. We determine the fair value of property and equipment and reacquired franchise rights based on discounted projected future cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the inherent risk. Based on our semi-annual review, during fiscal 2017, long-lived assets and reacquired franchise rights with carrying values of $4.5 million and $0.8 million , respectively, primarily related to ten underperforming restaurants, were determined to have a total fair value of $0.2 million resulting in an impairment charge of $5.1 million . Based on our semi-annual review, during fiscal 2016, long-lived assets and reacquired franchise rights with carrying values of $7.0 million and $0.2 million , respectively, primarily related to five underperforming restaurants, were determined to have a total fair value of $0.2 million resulting in an impairment charge of $7.0 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 . We determine the fair value of transferable liquor licenses based on prices in the open market for licenses in the same or similar jurisdictions. In fiscal 2017, six transferable liquor licenses with a carrying value of $1.3 million were written down to the fair value of $1.2 million resulting in an impairment charge of $0.1 million . In 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 . During fiscal 2016, we recorded an impairment charge of $187,000 related to a parcel of undeveloped land that we own. The land had a carrying value of $937,000 and was written down to the fair value of $750,000 . The fair value was based on the sales price of comparable properties. Additionally, we recorded an impairment charge of $231,000 related to a capital lease asset that is subleased to a franchisee. The capital lease asset had a carrying value of $338,000 and was written down to the fair value of $107,000 . The fair value of the capital lease asset is based on discounted projected future cash flows from the sublease. 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 28, 2017 and June 29, 2016 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 28, 2017 $ — $ — $ 201 $ 201 At June 29, 2016 $ — $ — $ 208 $ 208 Liquor licenses: At June 28, 2017 $ — $ 1,185 $ — $ 1,185 At June 29, 2016 $ — $ 857 $ — $ 857 Other long-lived assets: At June 28, 2017 $ — $ — $ — $ — At June 29, 2016 $ — $ 750 $ 107 $ 857 (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% 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 discounts, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands): June 28, 2017 June 29, 2016 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,495 $ 250,480 $ 248,918 $ 252,445 3.88% Notes $ 297,912 $ 286,077 $ 297,556 $ 302,655 5.00% Notes $ 344,405 $ 347,956 $ — $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 28, 2017 | |
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 granted 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 2017 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 29, 2016 1,217 $ 39.12 Granted 546 53.10 Exercised (225 ) 24.98 Forfeited or canceled (162 ) 52.01 Options outstanding at June 28, 2017 1,376 $ 45.46 5.0 $ 4,014 Options exercisable at June 28, 2017 652 $ 37.82 3.1 $ 4,014 At June 28, 2017 , unrecognized compensation expense related to stock options totaled approximately $1.6 million and will be recognized over a weighted average period of 1.9 years. The intrinsic value of options exercised totaled approximately $5.6 million , $5.3 million and $28.1 million during fiscal 2017 , 2016 and 2015 , respectively. The tax benefit realized on options exercised totaled approximately $1.6 million , $1.6 million and $9.2 million during fiscal 2017 , 2016 and 2015 , respectively. (b) Restricted Share Awards Restricted share awards consist of performance shares, restricted stock and restricted stock units. In fiscal 2017, eligible employees under the Plans were granted performance shares whose vesting is contingent upon meeting company performance goals based on our rate of earnings growth at the end of a three fiscal year period. Expense is recognized ratably over the vesting period, or to the date on which retirement eligibility is achieved, if shorter, based upon management's periodic estimates of the number of shares that ultimately will be issued. Prior to fiscal 2017, eligible employees under the Plans were granted performance shares containing a market condition which generally vest in full on the third anniversary of the date of grant. Most restricted stock units granted to eligible employees under the Plans generally vest in full on the third anniversary of the date of grant. 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 granted 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. The non-employee directors' awards are non-forfeitable and are expensed upon grant. 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 2017 were as follows (in thousands, except fair values): Number of Restricted Share Awards Weighted Average Grant Date Fair Value Per Award Restricted share awards outstanding at June 29, 2016 998 $ 42.68 Granted 262 53.11 Vested (303 ) 39.55 Forfeited (143 ) 47.71 Restricted share awards outstanding at June 28, 2017 814 $ 46.32 At June 28, 2017 , unrecognized compensation expense related to restricted share awards totaled approximately $9.4 million and will be recognized over a weighted average period of 2.2 years. The fair value of shares that vested during fiscal 2017 , 2016 and 2015 totaled approximately $12.8 million , $23.9 million and $34.2 million , respectively. |
SAVINGS PLANS
SAVINGS PLANS | 12 Months Ended |
Jun. 28, 2017 | |
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 2017 , 2016 and 2015 , we contributed approximately $8.9 million , $8.9 million and $8.0 million , respectively. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Jun. 28, 2017 | |
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): 2017 2016 2015 Income taxes, net of refunds $ 89,035 $ 45,743 $ 50,437 Interest, net of amounts capitalized 39,767 28,989 26,190 Non-cash investing and financing activities are as follows (in thousands): 2017 2016 2015 Retirement of fully depreciated assets $ 21,185 $ 24,806 $ 40,775 Dividends declared but not paid 17,317 18,442 18,132 Accrued capital expenditures 12,738 7,094 4,109 Capital lease additions 11,717 — — |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 and June 29, 2016 , we have outstanding lease guarantees or are secondarily liable for $69.0 million and $72.9 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 2018 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. In July 2017, subsequent to the end of the fiscal year, we were notified that a divested brand closed several of its properties for which we are secondarily liable. We believe a loss has been incurred based on the likely default under the lease contracts by the divested brand. As a result, a liability was established in fiscal 2017 based on an estimate of the obligation associated with these locations. Our total lease obligation liability recorded in accrued liabilities on the consolidated balance sheet at the end of fiscal 2017 related to divested brands was approximately $1.5 million . We will continue to assess the potential for further changes to our liability related to the outstanding lease guarantees and will pursue recovering any damages incurred. We have not been informed of any other lease defaults. No other liabilities have been recorded as of June 28, 2017 . We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of June 28, 2017 , we had $31.2 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. We are engaged in various legal proceedings and have certain unresolved claims pending. Reserves have been established based on our best estimates of our probable 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. 28, 2017 | |
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, digital entertainment 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. Company restaurant 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 28, 2017 Chili's Maggiano's Other Consolidated Company sales $ 2,653,301 $ 409,278 $ — $ 3,062,579 Franchise and other revenues 66,693 21,565 — 88,258 Total revenues 2,719,994 430,843 — 3,150,837 Company restaurant expenses (a) 2,220,607 361,700 469 2,582,776 Depreciation and amortization 129,335 16,172 10,902 156,409 General and administrative 37,005 6,191 89,623 132,819 Other gains and charges 13,229 783 8,643 22,655 Total operating costs and expenses 2,400,176 384,846 109,637 2,894,659 Operating income $ 319,818 $ 45,997 $ (109,637 ) $ 256,178 Segment assets $ 1,173,797 $ 163,733 $ 76,170 $ 1,413,700 Equity method investment 10,171 — — 10,171 Payments for property and equipment 75,992 13,288 13,293 102,573 Fiscal Year Ended June 29, 2016 Chili's Maggiano's Other Consolidated Company sales $ 2,754,904 $ 411,755 $ — $ 3,166,659 Franchise and other revenues 68,484 22,346 — 90,830 Total revenues 2,823,388 434,101 — 3,257,489 Company restaurant 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 $ 76,688 $ 1,458,450 Equity method investment 10,257 — — 10,257 Payments for property and equipment 80,277 17,540 14,971 112,788 Fiscal Year Ended June 24, 2015 Chili's Maggiano's Other Consolidated Company sales $ 2,503,133 $ 401,613 $ — $ 2,904,746 Franchise and other revenues 75,860 21,672 — 97,532 Total revenues 2,578,993 423,285 — 3,002,278 Company restaurant 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 Payments for property and equipment $ 114,416 $ 14,408 $ 11,438 $ 140,262 ____________________________________________________________________ (a) Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising. Reconciliation of operating income to income before provision for income taxes: Fiscal Years Ended June 28, 2017 June 29, 2016 June 24, 2015 Operating income $ 256,178 $ 317,476 $ 311,202 Less interest expense (49,547 ) (32,574 ) (29,006 ) Plus other, net 1,877 1,485 2,081 Income before provision for income taxes $ 208,508 $ 286,387 $ 284,277 |
IMMATERIAL CORRECTION OF PRIOR
IMMATERIAL CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS | 12 Months Ended |
Jun. 28, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections | IMMATERIAL CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS In connection with the preparation of the consolidated financial statements for the year ended June 28, 2017, we discovered immaterial errors in prior years relating to the accuracy of the deferred income tax liability, primarily related to property and equipment. While we have concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we have revised our previously-reported consolidated financial statements for the years ended June 29, 2016 and June 24, 2015. The revisions to our consolidated statements of comprehensive income for the years ended June 29, 2016 and June 24, 2015 are as follows (in thousands, except per share amounts): Fifty-Three Week Period Ended June 29, 2016 Fifty-Two Week Period Ended June 24, 2015 As Reported As Revised As Reported As Revised Income before provision for income taxes $ 286,387 $ 286,387 $ 284,277 284,277 Provision for income taxes 85,642 85,767 87,583 89,618 Net income $ 200,745 $ 200,620 $ 196,694 $ 194,659 Basic net income per share $ 3.47 $ 3.47 $ 3.12 $ 3.09 Diluted net income per share $ 3.42 $ 3.42 $ 3.05 $ 3.02 Basic weighted average shares outstanding 57,895 57,895 63,072 63,072 Diluted weighted average shares outstanding 58,684 58,684 64,404 64,404 Other comprehensive loss: Foreign currency translation adjustment $ (2,964 ) $ (2,964 ) $ (7,690 ) $ (7,690 ) Other comprehensive loss (2,964 ) (2,964 ) (7,690 ) (7,690 ) Comprehensive income $ 197,781 $ 197,656 $ 189,004 $ 186,969 The revisions to our consolidated balance sheet as of June 29, 2016 were as follows (in thousands): June 29, 2016 As Reported As Revised Accounts receivable, net $ 43,944 $ 45,612 Total current assets 176,774 178,442 Deferred income taxes, net 27,003 14,325 Total other assets (a) 249,534 236,856 Total assets (a) 1,469,460 1,458,450 Income taxes payable 18,814 22,022 Total current liabilities 432,443 435,651 Other liabilities 139,423 137,682 Total shareholders’ deficit (213,099 ) (225,576 ) Total liabilities and shareholders’ deficit $ 1,469,460 $ 1,458,450 ____________________________________________________________________ (a) During the first quarter of fiscal 2017, we adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis. 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 revisions had no impact on cash flows from operating, investing, or financing activities on the consolidated statements of cash flows for fiscal years 2016 and 2015. The revisions to the consolidated statements of shareholders' deficit include the changes to net income and comprehensive income, as noted above, and a $10.3 million decrease to retained earnings at the beginning of fiscal 2015. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Jun. 28, 2017 | |
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 2017 and 2016 (in thousands, except per share amounts): Fiscal Year 2017 Quarters Ended Sept. 28 Dec. 28 March 29 June 28 Revenues $ 758,492 $ 771,043 $ 810,641 $ 810,661 Income before provision for income taxes $ 32,966 $ 48,268 $ 59,612 $ 67,662 Net income $ 23,233 $ 34,637 $ 42,369 $ 50,584 Basic net income per share $ 0.42 $ 0.70 $ 0.87 $ 1.03 Diluted net income per share $ 0.42 $ 0.69 $ 0.86 $ 1.02 Basic weighted average shares outstanding 54,844 49,833 48,954 48,917 Diluted weighted average shares outstanding 55,576 50,480 49,506 49,435 Fiscal Year 2016 Sept. 23 Dec. 23 March 23 June 29 (a) 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 $ 62,217 Basic net income per share $ 0.55 $ 0.81 $ 1.01 $ 1.12 Diluted net income per share $ 0.54 $ 0.80 $ 1.00 $ 1.10 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 ____________________________________________________________________ (a) This unaudited financial information has been revised to reflect the effect of the revisions described in Note 16-Immaterial Correction of Prior Period Financial Statements. The impact on fiscal 2016 was a reduction to net income of $0.1 million which has been reflected as a reduction in the fourth quarter of fiscal 2016. There were no impacts to the previously-reported quarterly results in fiscal 2017. Net income for fiscal 2017 included severance charges of $0.3 million , $5.9 million and $0.4 million in the first, third and fourth quarters of fiscal 2017, respectively. Restaurant impairment charges of $1.9 million and $3.3 million were recorded in the second and fourth quarters, respectively. We also recorded additional lease and other costs associated with closed restaurants of $2.5 million , $0.3 million , $0.8 million and $0.5 million in the first, second, third and fourth quarters of fiscal 2017, respectively. We incurred professional fees and severance expenses of $2.5 million and $0.2 million in the first and second quarters, respectively, related to our information technology restructuring. We also recorded gains on the sale of property of $2.6 million in the second quarter of fiscal 2017. Additionally, we recorded accelerated depreciation related to long-lived assets to be disposed of $0.7 million , $0.7 million and $0.6 million in the first, second and fourth quarters of fiscal 2017, respectively. Furthermore, we recorded consulting fees of $2.4 million and lease guarantee charges of $1.1 million in the fourth quarter of fiscal 2017. 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On August 10, 2017 , our Board of Directors declared a quarterly dividend of $0.38 per share effective with the September 2017 dividend. Our Board of Directors also authorized a $250 million increase to our existing share repurchase program, bringing the total amount available for repurchases to approximately $365 million . Subsequent to the end of the fiscal year, an additional $110.0 million was drawn from the $1 billion revolving credit facility. |
EFFECT OF NEW ACCOUNTING STANDA
EFFECT OF NEW ACCOUNTING STANDARDS | 12 Months Ended |
Jun. 28, 2017 | |
Effect of New Accounting Standards [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | EFFECT OF NEW ACCOUNTING STANDARDS In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update eliminates step two of the goodwill impairment analysis. Companies will no longer be required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, they will measure impairment as the difference between the carrying amount and the fair value of the reporting unit. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2019, which will require us to adopt these provisions in the first quarter of fiscal 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed with measurement dates after January 1, 2017. The update will be applied on a prospective basis. We do not expect the adoption of this guidance to have any impact on our consolidated financial statements as the fair value of our reporting units is substantially in excess of the carrying values. 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 or debt covenants. 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. Adoption of the new guidance will require recognition of excess tax benefits and tax deficiencies in the consolidated statements of comprehensive income on a prospective basis, with a cumulative effect adjustment to retained earnings for any prior year excess tax benefits or tax deficiencies not previously recorded. In addition, this guidance will require reclassification of excess tax benefits from cash flows from financing activities to cash flows from operating activities on the consolidated statements of cash flows. We expect to apply this change on a retrospective basis. Based on our current stock price, we expect the adoption of the new guidance in the first quarter of fiscal 2018 will result in the recognition of a discrete tax expense of approximately $2 million in the provision for income taxes on our fiscal 2018 consolidated statements of comprehensive income. The inclusion of excess tax benefits and deficiencies within our provision for income taxes will increase its volatility as the amount of excess tax benefits or deficiencies from share-based compensation awards depends on our stock price at the date the awards vest. We expect that adoption of the remaining provisions in the update noted above will not have a material impact on our consolidated financial statements. 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 for virtually all leases, other than leases with a term of 12 months or less. 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 anticipate implementing the standard by taking advantage of the practical expedient option. The discounted minimum remaining rental payments will be the starting point for determining the right-of-use asset and lease liability. We had operating leases with remaining rental payments of approximately $606.9 million at the end of fiscal 2017. We expect that adoption of the new guidance will have a material impact on our consolidated balance sheets due to recognition of the right-of-use asset and lease liability related to our current operating leases. The process of evaluating the full impact of the new guidance on our consolidated financial statements and disclosures is ongoing, but we anticipate the initial evaluation of the impact will be completed in fiscal 2018. 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 these updates will impact our recognition of revenue from sales generated at company-owned restaurants or our recognition of royalty fees from franchisees. We are continuing to evaluate the impact the adoption of these updates will have on the recognition of revenue related to our gift card and loyalty programs and our franchise agreements, as well as which adoption method will be used. The process of evaluating the full impact of the new guidance on our consolidated financial statements and disclosures is ongoing, but we anticipate the initial evaluation of the impact will be completed in the first half of fiscal 2018. |
NATURE OF OPERATIONS AND SUMM27
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 , we owned, operated, or franchised 1,674 restaurants in the United States and 30 countries and two territories outside of the United States |
Basis Of Presentation | (b) Basis of Presentation Our consolidated financial statements include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We have a 52/53 week fiscal year ending on the last Wednesday in June. Fiscal years 2017 and 2015 , which ended on June 28, 2017 and June 24, 2015 , respectively, each contained 52 weeks. Fiscal year 2016 ended on June 29, 2016 and contained 53 weeks. The estimated impact of the 53rd week in fiscal 2016 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 connection with the preparation of the consolidated financial statements for the year ended June 28, 2017, we discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions included a net increase in the provision for income taxes of $0.1 million and $2.1 million for fiscal 2016 and 2015, respectively. These revisions for fiscal 2016 offset and therefore resulted in no change to earnings per share for fiscal 2016 and a $0.03 decrease for fiscal 2015. The cumulative effect of the changes to retained earnings at the beginning of fiscal 2015, the earliest date presented in the consolidated financial statements for the year ended June 28, 2017, was a reduction of $10.3 million . For additional information, see Note 16 - Immaterial Correction of Prior Period Financial Statements. 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 was 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 was 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 any impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure should include the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events. This update was effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. We adopted the guidance effective June 28, 2017. Accordingly, we performed an evaluation and determined that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern through August 28, 2018. The adoption did not have any impact 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, digital entertainment 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, generally upon the execution of the agreement when the development rights are conveyed to the franchisee. 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. |
Definite-lived Intangible Assets | (j) Definite-lived Intangible Assets Definite-lived intangible assets primarily include reacquired franchise rights resulting from our acquisitions. Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. 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 semi-annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. Impairment charges are included in other gains and charges in the consolidated statements of comprehensive income. |
Operating Leases | (k) 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 at the point in time we determine that it is probable that such sales levels will be achieved. 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 | (l) 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 $103.8 million , $93.6 million and $94.3 million in fiscal 2017 , 2016 , and 2015 , respectively, and are included in restaurant expenses in the consolidated statements of comprehensive income. |
Goodwill and Other Intangibles | (m) Goodwill 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 values. No indicators of impairment were identified through the end of fiscal year 2017 . 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. |
Liquor Licenses | (n) 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. 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 | (o) 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 | (p) 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 | (q) 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 | (r) 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. We recognize compensation expense for only the portion of share-based awards that are expected to vest. Therefore, we apply estimated forfeiture rates that are derived from our historical forfeitures of similar awards. Certain employees are eligible to receive stock options, performance shares, restricted stock and restricted stock units, while non-employee members of the Board of Directors are eligible to receive stock options, restricted stock and restricted stock units. Performance shares represent a right to receive shares of common stock upon satisfaction of company performance goals at the end of a three-year cycle. Vesting of performance shares granted in fiscal 2017 is contingent upon meeting company performance goals based on our rate of earnings growth at the end of the three-year period. Compensation expense for the performance shares granted in fiscal 2017 is recorded based on management's periodic estimates of the number of shares that will ultimately be issued and the fair value of the shares as determined by our closing stock price on the date of grant. A cumulative expense adjustment is recognized when that estimate changes. The fair value of our performance shares granted prior to fiscal 2017, which contain a market condition, was 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 | (s) 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 28, 2017 , no preferred shares were issued. |
Shareholders' Deficit | (t) 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”). The ASR Agreement settled in January 2017. Pursuant to the terms of the ASR Agreement, we paid BofA $300.0 million in cash and received 5.9 million shares of our common stock. The accelerated share repurchase transaction qualified for equity accounting treatment. Repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit. We also repurchased approximately 1.6 million additional shares of common stock for a total of 7.5 million shares repurchased during fiscal 2017 for $370.9 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 June 28, 2017 , approximately $115.8 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. Additionally, during fiscal 2017 , approximately 225,000 stock options were exercised resulting in cash proceeds of approximately $5.6 million . During fiscal 2017 , we paid dividends of $70.8 million to common stock shareholders, compared to $74.1 million in the prior year. Our Board of Directors approved a 6.3% increase in the quarterly dividend from $0.32 to $0.34 per share effective with the dividend declared in August 2016. We also declared a quarterly dividend of $0.34 per share in May 2017 which was paid subsequent to the end of the year on June 29, 2017 in the amount of $16.6 million . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of June 28, 2017 . |
Comprehensive Income | (u) 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 2017 , 2016 and 2015 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 Mexico joint venture with CMR, S.A.B. de C.V. 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 | (v) 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. Stock options and restricted share awards with an anti-dilutive effect are not included in the dilutive earnings per share calculation. |
Segment Reporting | (w) 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 company-owned restaurants in Canada and franchised locations in the U.S and 30 countries and two territories outside of the U.S. Additional information about our segments, including financial information, is included in Note 15. |
NATURE OF OPERATIONS AND SUMM28
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
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: 2017 2016 2015 Expected volatility 25.5 % 27.5 % 31.0 % Risk-free interest rate 1.3 % 1.5 % 1.6 % Expected lives 5 years 5 years 5 years Dividend yield 2.6 % 2.4 % 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): 2017 2016 2015 Basic weighted average shares outstanding 50,638 57,895 63,072 Dilutive stock options 192 316 569 Dilutive restricted shares 420 473 763 612 789 1,332 Diluted weighted average shares outstanding 51,250 58,684 64,404 Awards excluded due to anti-dilutive effect on earnings per share 973 550 119 |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Disclosure Other Gains And Charges [Abstract] | |
Schedule Of Other Gains And Charges | Other gains and charges consist of the following (in thousands): 2017 2016 2015 Severance and other benefits $ 6,591 $ 3,304 $ 1,182 Restaurant impairment charges 5,190 10,651 2,255 Restaurant closure charges 4,084 3,780 1,736 Information technology restructuring 2,739 — — Accelerated depreciation 1,988 — — Lease guarantee charges 1,089 — — (Gain) loss on the sale of assets, net (2,659 ) (2,858 ) 1,093 Impairment of investment — 1,000 — Acquisition costs — 700 1,100 Impairment of intangible assets — 392 645 Litigation — (3,191 ) (2,753 ) Other 3,633 3,402 (494 ) $ 22,655 $ 17,180 $ 4,764 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Chili's Maggiano's Consolidated Chili's Maggiano's Consolidated Balance at beginning of year $ 125,610 $ 38,397 $ 164,007 $ 93,984 $ 38,397 $ 132,381 Changes in goodwill: Additions (a) — — — 31,912 — 31,912 Foreign currency translation adjustment (54 ) — (54 ) (286 ) — (286 ) Balance at end of year $ 125,556 $ 38,397 $ 163,953 $ 125,610 $ 38,397 $ 164,007 ____________________________________________________________________ (a) Fiscal 2016 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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 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) $ 16,170 $ (4,175 ) $ 11,995 $ 17,284 $ (3,041 ) $ 14,243 Chili's other 5,985 (1,070 ) 4,915 5,988 (713 ) 5,275 $ 22,155 $ (5,245 ) $ 16,910 $ 23,272 $ (3,754 ) $ 19,518 Indefinite-lived intangible assets Chili's liquor licenses $ 9,670 $ 9,775 Maggiano's liquor licenses 932 932 $ 10,602 $ 10,707 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): 2017 2016 Sales tax $ 22,561 $ 26,280 Insurance 17,484 19,976 Property tax 16,566 15,762 Dividends 16,649 17,760 Other 48,322 41,546 $ 121,582 $ 121,324 |
Other Liabilities | Other liabilities consist of the following (in thousands): 2017 2016 Straight-line rent $ 57,464 $ 56,896 Insurance 42,532 38,433 Landlord contributions 26,402 24,681 Unfavorable leases 5,398 6,521 Unrecognized tax benefits 3,116 4,070 Other 6,212 7,081 $ 141,124 $ 137,682 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income before provision for income taxes consists of the following (in thousands): 2017 2016 2015 Domestic $ 186,679 $ 258,905 $ 257,228 Foreign 21,829 27,482 27,049 Total income before provision for income taxes $ 208,508 $ 286,387 $ 284,277 |
Provision For Income Taxes From Continuing Operations | The provision for income taxes consists of the following (in thousands): 2017 2016 2015 Current income tax expense: Federal $ 64,407 $ 48,896 $ 60,575 State 13,358 10,843 11,990 Foreign 2,490 3,497 3,319 Total current income tax expense 80,255 63,236 75,884 Deferred income tax (benefit) expense: Federal (19,647 ) 21,842 11,674 State (3,064 ) 704 2,156 Foreign 141 (15 ) (96 ) Total deferred income tax (benefit) expense (22,570 ) 22,531 13,734 $ 57,685 $ 85,767 $ 89,618 |
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): 2017 2016 2015 Income tax expense at statutory rate $ 72,978 $ 100,236 $ 99,496 FICA tax credit (20,657 ) (20,497 ) (18,633 ) State income taxes, net of Federal benefit 5,928 9,614 8,646 Other (564 ) (3,586 ) 109 $ 57,685 $ 85,767 $ 89,618 |
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 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Deferred income tax assets: Leasing transactions $ 32,019 $ 32,826 Stock-based compensation 14,029 12,817 Restructure charges and impairments 3,533 2,211 Insurance reserves 19,700 18,015 Employee benefit plans 288 501 Gift cards 23,670 18,609 State net operating losses 2,554 3,030 Federal credit carryover 12,697 14,722 State credit carryover 3,148 3,238 Other, net 8,480 7,930 Less: Valuation allowance (5,232 ) (5,315 ) Total deferred income tax assets 114,886 108,584 Deferred income tax liabilities: Prepaid expenses 19,506 17,360 Goodwill and other amortization 30,213 28,659 Depreciation and capitalized interest on property and equipment 26,375 43,858 Other, net 1,763 4,382 Total deferred income tax liabilities 77,857 94,259 Net deferred income tax asset $ 37,029 $ 14,325 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits for the fiscal years ended June 28, 2017 and June 29, 2016 are as follows (in thousands): 2017 2016 Balance at beginning of year $ 4,989 $ 3,843 Additions based on tax positions related to the current year 402 1,359 Additions based on tax positions related to prior years 31 2,332 Settlements with tax authorities (681 ) (1,963 ) Expiration of statute of limitations (679 ) (582 ) Balance at end of year $ 4,062 $ 4,989 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): 2017 2016 Revolving credit facility $ 392,250 $ 530,250 5.00% notes 350,000 — 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations (see Note 9) 45,417 37,532 Total long-term debt 1,337,667 1,117,782 Less unamortized debt issuance costs and discounts (8,189 ) (3,526 ) Total long-term debt less unamortized debt issuance costs and discounts 1,329,478 1,114,256 Less current installments (9,649 ) (3,563 ) $ 1,319,829 $ 1,110,693 |
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 28, 2017 and thereafter are as follows (in thousands): Fiscal Year Long-Term Debt 2018 $ 250,000 2019 — 2020 — 2021 — 2022 392,250 Thereafter 650,000 $ 1,292,250 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense consists of the following (in thousands): 2017 2016 2015 Straight-lined minimum rent $ 109,819 $ 107,776 $ 92,917 Contingent rent 3,821 4,408 4,774 Other 11,682 11,283 9,998 Total rent expense $ 125,322 $ 123,467 $ 107,689 |
Future Minimum Lease Payments | As of June 28, 2017 , future minimum lease payments on capital and operating leases were as follows (in thousands): Fiscal Year Capital Leases Operating Leases 2018 $ 11,823 $ 122,598 2019 7,636 110,238 2020 7,164 97,645 2021 4,820 82,707 2022 3,902 63,584 Thereafter 24,074 130,083 Total minimum lease payments(a) 59,419 $ 606,855 Imputed interest (average rate of 7%) (14,002 ) Present value of minimum lease payments 45,417 Less current installments (9,649 ) $ 35,768 ____________________________________________________________________ (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 $25.0 million and $40.8 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
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 28, 2017 and June 29, 2016 (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Long-lived assets held for use: At June 28, 2017 $ — $ — $ 201 $ 201 At June 29, 2016 $ — $ — $ 208 $ 208 Liquor licenses: At June 28, 2017 $ — $ 1,185 $ — $ 1,185 At June 29, 2016 $ — $ 857 $ — $ 857 Other long-lived assets: At June 28, 2017 $ — $ — $ — $ — At June 29, 2016 $ — $ 750 $ 107 $ 857 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | June 28, 2017 June 29, 2016 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,495 $ 250,480 $ 248,918 $ 252,445 3.88% Notes $ 297,912 $ 286,077 $ 297,556 $ 302,655 5.00% Notes $ 344,405 $ 347,956 $ — $ — |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Stock Options | |
Transactions During Fiscal 2017 | Transactions during fiscal 2017 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 29, 2016 1,217 $ 39.12 Granted 546 53.10 Exercised (225 ) 24.98 Forfeited or canceled (162 ) 52.01 Options outstanding at June 28, 2017 1,376 $ 45.46 5.0 $ 4,014 Options exercisable at June 28, 2017 652 $ 37.82 3.1 $ 4,014 |
Restricted Share Award | |
Transactions During Fiscal 2017 | Transactions during fiscal 2017 were as follows (in thousands, except fair values): Number of Restricted Share Awards Weighted Average Grant Date Fair Value Per Award Restricted share awards outstanding at June 29, 2016 998 $ 42.68 Granted 262 53.11 Vested (303 ) 39.55 Forfeited (143 ) 47.71 Restricted share awards outstanding at June 28, 2017 814 $ 46.32 |
SUPPLEMENTAL CASH FLOW INFORM37
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid For Interest And Income Taxes | Cash paid for interest and income taxes is as follows (in thousands): 2017 2016 2015 Income taxes, net of refunds $ 89,035 $ 45,743 $ 50,437 Interest, net of amounts capitalized 39,767 28,989 26,190 |
Non-Cash Investing And Financing Activities | Non-cash investing and financing activities are as follows (in thousands): 2017 2016 2015 Retirement of fully depreciated assets $ 21,185 $ 24,806 $ 40,775 Dividends declared but not paid 17,317 18,442 18,132 Accrued capital expenditures 12,738 7,094 4,109 Capital lease additions 11,717 — — |
SEGMENT INFORMATION SEGMENT INF
SEGMENT INFORMATION SEGMENT INFORMATION (Tables) | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Segment Information [Abstract] | |||
Schedule of Segment Reporting Information, by Segment | Fiscal Year Ended June 28, 2017 Chili's Maggiano's Other Consolidated Company sales $ 2,653,301 $ 409,278 $ — $ 3,062,579 Franchise and other revenues 66,693 21,565 — 88,258 Total revenues 2,719,994 430,843 — 3,150,837 Company restaurant expenses (a) 2,220,607 361,700 469 2,582,776 Depreciation and amortization 129,335 16,172 10,902 156,409 General and administrative 37,005 6,191 89,623 132,819 Other gains and charges 13,229 783 8,643 22,655 Total operating costs and expenses 2,400,176 384,846 109,637 2,894,659 Operating income $ 319,818 $ 45,997 $ (109,637 ) $ 256,178 Segment assets $ 1,173,797 $ 163,733 $ 76,170 $ 1,413,700 Equity method investment 10,171 — — 10,171 Payments for property and equipment 75,992 13,288 13,293 102,573 | Fiscal Year Ended June 29, 2016 Chili's Maggiano's Other Consolidated Company sales $ 2,754,904 $ 411,755 $ — $ 3,166,659 Franchise and other revenues 68,484 22,346 — 90,830 Total revenues 2,823,388 434,101 — 3,257,489 Company restaurant 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 $ 76,688 $ 1,458,450 Equity method investment 10,257 — — 10,257 Payments for property and equipment 80,277 17,540 14,971 112,788 | Fiscal Year Ended June 24, 2015 Chili's Maggiano's Other Consolidated Company sales $ 2,503,133 $ 401,613 $ — $ 2,904,746 Franchise and other revenues 75,860 21,672 — 97,532 Total revenues 2,578,993 423,285 — 3,002,278 Company restaurant 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 Payments for property and equipment $ 114,416 $ 14,408 $ 11,438 $ 140,262 ____________________________________________________________________ (a) Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising. |
Reconciliation of Revenue from Segments to Consolidated | Reconciliation of operating income to income before provision for income taxes: Fiscal Years Ended June 28, 2017 June 29, 2016 June 24, 2015 Operating income $ 256,178 $ 317,476 $ 311,202 Less interest expense (49,547 ) (32,574 ) (29,006 ) Plus other, net 1,877 1,485 2,081 Income before provision for income taxes $ 208,508 $ 286,387 $ 284,277 |
IMMATERIAL CORRECTION OF PRIO39
IMMATERIAL CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS(Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement to Prior Year Income | The revisions to our consolidated statements of comprehensive income for the years ended June 29, 2016 and June 24, 2015 are as follows (in thousands, except per share amounts): Fifty-Three Week Period Ended June 29, 2016 Fifty-Two Week Period Ended June 24, 2015 As Reported As Revised As Reported As Revised Income before provision for income taxes $ 286,387 $ 286,387 $ 284,277 284,277 Provision for income taxes 85,642 85,767 87,583 89,618 Net income $ 200,745 $ 200,620 $ 196,694 $ 194,659 Basic net income per share $ 3.47 $ 3.47 $ 3.12 $ 3.09 Diluted net income per share $ 3.42 $ 3.42 $ 3.05 $ 3.02 Basic weighted average shares outstanding 57,895 57,895 63,072 63,072 Diluted weighted average shares outstanding 58,684 58,684 64,404 64,404 Other comprehensive loss: Foreign currency translation adjustment $ (2,964 ) $ (2,964 ) $ (7,690 ) $ (7,690 ) Other comprehensive loss (2,964 ) (2,964 ) (7,690 ) (7,690 ) Comprehensive income $ 197,781 $ 197,656 $ 189,004 $ 186,969 The revisions to our consolidated balance sheet as of June 29, 2016 were as follows (in thousands): June 29, 2016 As Reported As Revised Accounts receivable, net $ 43,944 $ 45,612 Total current assets 176,774 178,442 Deferred income taxes, net 27,003 14,325 Total other assets (a) 249,534 236,856 Total assets (a) 1,469,460 1,458,450 Income taxes payable 18,814 22,022 Total current liabilities 432,443 435,651 Other liabilities 139,423 137,682 Total shareholders’ deficit (213,099 ) (225,576 ) Total liabilities and shareholders’ deficit $ 1,469,460 $ 1,458,450 ____________________________________________________________________ (a) During the first quarter of fiscal 2017, we adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis. 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. |
QUARTERLY RESULTS OF OPERATIO40
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Consolidated Quarterly Results Of Operations | The following table summarizes the unaudited consolidated quarterly results of operations for fiscal 2017 and 2016 (in thousands, except per share amounts): Fiscal Year 2017 Quarters Ended Sept. 28 Dec. 28 March 29 June 28 Revenues $ 758,492 $ 771,043 $ 810,641 $ 810,661 Income before provision for income taxes $ 32,966 $ 48,268 $ 59,612 $ 67,662 Net income $ 23,233 $ 34,637 $ 42,369 $ 50,584 Basic net income per share $ 0.42 $ 0.70 $ 0.87 $ 1.03 Diluted net income per share $ 0.42 $ 0.69 $ 0.86 $ 1.02 Basic weighted average shares outstanding 54,844 49,833 48,954 48,917 Diluted weighted average shares outstanding 55,576 50,480 49,506 49,435 Fiscal Year 2016 Sept. 23 Dec. 23 March 23 June 29 (a) 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 $ 62,217 Basic net income per share $ 0.55 $ 0.81 $ 1.01 $ 1.12 Diluted net income per share $ 0.54 $ 0.80 $ 1.00 $ 1.10 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 |
Nature Of Operations And Summ41
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Detail) | Jun. 29, 2016USD ($) | Jun. 28, 2017USD ($)LocationrestaurantCountry$ / sharesshares | Sep. 28, 2016USD ($)$ / shares | Sep. 23, 2015$ / shares | Jun. 28, 2017USD ($)LocationsegmentrestaurantCountry$ / sharesshares | Jun. 29, 2016USD ($)$ / shares | Jun. 24, 2015USD ($)$ / shares | Jun. 25, 2014USD ($) | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Impact of Restatement on Earnings Per Share, Diluted | $ / shares | $ 0 | $ 0 | ||||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | [1] | $ (10,317,000) | ||||||||
Number of Restaurants | restaurant | 1,674 | 1,674 | ||||||||
Number of countries in which entity operates | Country | 30 | 30 | ||||||||
Number of territories in which entity operates | Location | 2 | 2 | ||||||||
53rd week revenues | $ 58,300,000 | |||||||||
Restatement of Prior Year Income, Net of Tax | $ (100,000) | $ (2,100,000) | ||||||||
Advertising expense, net of franchisee contribution | 103,800,000 | 93,600,000 | $ 94,300,000 | |||||||
Stock-based compensation expense from continuing operations | 14,500,000 | 15,200,000 | 15,000,000 | |||||||
Tax benefit related to stock-based compensation expense | $ 5,700,000 | $ 5,800,000 | $ 5,500,000 | |||||||
Weighted average fair values of option grants | $ / shares | $ 9.30 | $ 10.48 | $ 11.72 | |||||||
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 | $ 150,000,000 | |||||||||
Stock repurchase program, total authorization of shares to be repurchased | $ 4,300,000,000 | $ 4,300,000,000 | ||||||||
Stock repurchase during period, shares | shares | 7,500,000 | |||||||||
Remaining authorized share purchases, amount | 115,800,000 | $ 115,800,000 | ||||||||
Proceeds from issuances of treasury stock | 5,621,000 | $ 6,147,000 | $ 16,259,000 | |||||||
Payments of dividends | 70,771,000 | 74,066,000 | 70,832,000 | |||||||
Dividends Payable, Current | 17,760,000 | $ 16,649,000 | $ 16,649,000 | 17,760,000 | ||||||
Number of Reportable Segments | segment | 2 | |||||||||
Payments for Repurchase of Common Stock | $ 370,877,000 | $ 284,905,000 | $ 306,255,000 | |||||||
Percentage Increase In Quarterly Dividend Declared | 6.25% | |||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.34 | $ 0.34 | $ 0.32 | $ 1.36 | $ 1.28 | $ 1.12 | ||||
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 | (225,000) | |||||||||
Chili's Restaurants [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Number of countries in which entity operates | Country | 30 | 30 | ||||||||
Number of territories in which entity operates | Location | 2 | 2 | ||||||||
2.60% notes [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Debt Issuance Costs, Net | 1,000,000 | $ 1,000,000 | ||||||||
3.88% notes [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Debt Issuance Costs, Net | $ 2,200,000 | $ 2,200,000 | ||||||||
Accelerated Share Repurchase Agreement [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Payments for Repurchase of Common Stock | $ 300,000,000 | |||||||||
Treasury Stock, Shares, Acquired | shares | 5,900,000 | |||||||||
Other Share Repurchases [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Treasury Stock, Shares, Acquired | shares | 1,600,000 | |||||||||
Retained Earnings | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (12,500,000) | $ (12,500,000) | $ (10,317,000) | $ (10,317,000) | [1] | |||||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. |
Nature Of Operations And Summ42
Nature Of Operations And Summary Of Significant Accounting Policies (Fair Value Assumptions Using Black-Scholes Option-Pricing Model) (Detail) | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Disclosure Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract] | |||
Expected volatility | 25.50% | 27.50% | 31.00% |
Risk-free interest rate | 1.30% | 1.50% | 1.60% |
Expected lives | 5 years | 5 years | 5 years |
Dividend yield | 2.60% | 2.40% | 2.20% |
NATURE OF OPERATIONS AND SUMM43
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. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Basic weighted average shares outstanding (in shares) | 48,917 | 48,954 | 49,833 | 54,844 | 55,657 | 56,673 | 59,198 | 60,225 | 50,638 | 57,895 | 63,072 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 612 | 789 | 1,332 | ||||||||
Diluted weighted average shares outstanding (in shares) | 49,435 | 49,506 | 50,480 | 55,576 | 56,394 | 57,407 | 59,899 | 61,208 | 51,250 | 58,684 | 64,404 |
Stock options and restricted share awards outstanding excluded from dilutive earnings per share | 973 | 550 | 119 | ||||||||
Restricted Share Award | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 420 | 473 | 763 | ||||||||
Employee Stock Option [Member] | |||||||||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 192 | 316 | 569 |
Acquisition (Details)
Acquisition (Details) | Jun. 25, 2015USD ($)Restaurants | Sep. 23, 2015USD ($) | Jun. 28, 2017USD ($) | Jun. 29, 2016USD ($) |
Business Combinations [Abstract] | ||||
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 | Restaurants | 103 | |||
Payments to Acquire Businesses, Gross | $ 106,500,000 | |||
Cash and customary working capital purchase price adjustments | $ 900,000 | |||
Goodwill, Acquired During Period | $ 31,900,000 | $ 0 | $ 31,912,000 | |
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. |
Equity Method Investment (Narra
Equity Method Investment (Narrative) (Detail) - Joint Venture Investment, Mexico [Member] | 12 Months Ended |
Jun. 28, 2017Store | |
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 | 45 |
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. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Disclosure Other Gains And Charges [Abstract] | |||||||||||
Severance and other benefits | $ 400 | $ 5,900 | $ 300 | $ 900 | $ 200 | $ 2,200 | $ 6,591 | $ 3,304 | $ 1,182 | ||
Restaurant impairment charges | 3,300 | $ 1,900 | $ 6,700 | $ 3,400 | $ 500 | 5,190 | 10,651 | 2,255 | |||
Restaurant closure charges | 500 | $ 800 | 300 | 2,500 | 4,084 | 3,780 | 1,736 | ||||
Information technology restructuring | 200 | 2,500 | 2,739 | 0 | 0 | ||||||
Accelerated depreciation | $ 600 | 700 | $ 700 | 1,988 | 0 | 0 | |||||
Lease guarantee charges | 1,089 | 0 | 0 | ||||||||
(Gain) loss on the sale of assets, net | $ 2,600 | 1,100 | 1,800 | (2,659) | (2,858) | 1,093 | |||||
Impairment of investment | 0 | 1,000 | 0 | ||||||||
Acquisition costs | $ 100 | $ 600 | 0 | 700 | 1,100 | ||||||
Impairment of intangible assets | 0 | 392 | 645 | ||||||||
Litigation | 0 | (3,191) | (2,753) | ||||||||
Other | 3,633 | 3,402 | (494) | ||||||||
Other gains and charges | $ 22,655 | $ 17,180 | $ 4,764 |
Other Gains And Charges (Narrat
Other Gains And Charges (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Severance and other benefits | $ 400 | $ 5,900 | $ 300 | $ 900 | $ 200 | $ 2,200 | $ 6,591 | $ 3,304 | $ 1,182 | ||||
Lease Termination Charges | 1,100 | 3,800 | |||||||||||
Restaurant impairment charges | 3,300 | $ 1,900 | 6,700 | $ 3,400 | 500 | 5,190 | 10,651 | 2,255 | |||||
Restaurant closure charges | 500 | $ 800 | 300 | 2,500 | 4,084 | 3,780 | 1,736 | ||||||
Information technology restructuring | 200 | 2,500 | 2,739 | 0 | 0 | ||||||||
Gain (Loss) on Disposition of Assets | (2,600) | (1,100) | (1,800) | 2,659 | 2,858 | (1,093) | |||||||
Accelerated depreciation | 600 | $ 700 | $ 700 | 1,988 | 0 | 0 | |||||||
Lease guarantee charges | 1,089 | 0 | 0 | ||||||||||
Professional Fees | $ 2,400 | 2,400 | 1,200 | ||||||||||
Impairment of investment | 0 | 1,000 | 0 | ||||||||||
Proceeds from Legal Settlements | 1,200 | 2,000 | $ 8,600 | ||||||||||
Litigation reserves | $ 5,800 | ||||||||||||
Acquisition costs | $ 100 | $ 600 | $ 0 | 700 | $ 1,100 | ||||||||
Expenses related to a bankrupt franchisee | $ 200 | $ 1,200 | $ 1,400 |
Goodwill (Changes In Carrying A
Goodwill (Changes In Carrying Amount Of Goodwill) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | |
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 132,381 | $ 164,007 | $ 132,381 |
Goodwill, Acquired During Period | 31,900 | 0 | 31,912 |
Foreign currency translation adjustment | (54) | (286) | |
Balance at end of year | 163,953 | 164,007 | |
Chili's Restaurants [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | 93,984 | 125,610 | 93,984 |
Goodwill, Acquired During Period | 0 | 31,912 | |
Foreign currency translation adjustment | (54) | (286) | |
Balance at end of year | 125,556 | 125,610 | |
Maggiano's Restaurants [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 38,397 | 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. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | ||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 22,155 | $ 23,272 | ||
Accumulated Amortization | (5,245) | (3,754) | ||
Net Carrying Amount | 16,910 | 19,518 | ||
Impairment of intangible assets | 0 | 392 | $ 645 | |
Franchise Rights [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 800 | 200 | ||
Foreign currency translation adjustment | (100) | (300) | ||
Indefinite-lived Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 10,602 | 10,707 | ||
Chili's Restaurants [Member] | Franchise Rights [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | [1] | 16,170 | 17,284 | |
Accumulated Amortization | [1] | (4,175) | (3,041) | |
Net Carrying Amount | [1] | 11,995 | 14,243 | |
Chili's Restaurants [Member] | Other Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 5,985 | 5,988 | ||
Accumulated Amortization | (1,070) | (713) | ||
Net Carrying Amount | 4,915 | 5,275 | ||
Chili's Restaurants [Member] | Indefinite-lived Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 9,670 | 9,775 | ||
Maggiano's Restaurants [Member] | Indefinite-lived Intangible Assets [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 932 | $ 932 | ||
[1] | The gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $0.1 million and $0.3 million for fiscal 2017 and 2016, respectively. We also recorded an impairment charge of $0.8 million and $0.2 million in fiscal 2017 and fiscal 2016, respectively. See Note 10 for additional disclosures. |
GOODWILL AND INTANGIBLES Sche50
GOODWILL AND INTANGIBLES Schedule of Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
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 | $ 1,400 | $ 1,500 | $ 800 |
Accrued And Other Liabilities51
Accrued And Other Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 29, 2016 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Sales tax | $ 22,561 | $ 26,280 |
Insurance | 17,484 | 19,976 |
Property tax | 16,566 | 15,762 |
Dividends | 16,649 | 17,760 |
Other | 48,322 | 41,546 |
Other accrued liabilities | $ 121,582 | $ 121,324 |
Accrued And Other Liabilities52
Accrued And Other Liabilities (Other Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 29, 2016 |
ACCRUED AND OTHER LIABILITIES [Abstract] | ||
Straight-line rent | $ 57,464 | $ 56,896 |
Insurance | 42,532 | 38,433 |
Landlord contributions | 26,402 | 24,681 |
Unfavorable leases | 5,398 | 6,521 |
Unrecognized tax benefits | 3,116 | 4,070 |
Other | 6,212 | 7,081 |
Other liabilities | $ 141,124 | $ 137,682 |
Income Taxes (Income Before Pro
Income Taxes (Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 186,679 | $ 258,905 | $ 257,228 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 21,829 | 27,482 | 27,049 | ||||||||
Income before provision for income taxes | $ 67,662 | $ 59,612 | $ 48,268 | $ 32,966 | $ 91,212 | $ 78,150 | $ 68,272 | $ 48,753 | $ 208,508 | $ 286,387 | $ 284,277 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes From Continuing Operations) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Current income tax expense: | |||
Federal | $ 64,407 | $ 48,896 | $ 60,575 |
State | 13,358 | 10,843 | 11,990 |
Foreign | 2,490 | 3,497 | 3,319 |
Total current income tax expense | 80,255 | 63,236 | 75,884 |
Deferred income tax (benefit) expense: | |||
Federal | (19,647) | 21,842 | 11,674 |
State | (3,064) | 704 | 2,156 |
Foreign | 141 | (15) | (96) |
Total deferred income tax (benefit) expense | (22,570) | 22,531 | 13,734 |
Provision for income taxes | $ 57,685 | $ 85,767 | $ 89,618 |
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. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rate | $ 72,978 | $ 100,236 | $ 99,496 |
FICA tax credit | (20,657) | (20,497) | (18,633) |
State income taxes, net of Federal benefit | 5,928 | 9,614 | 8,646 |
Other | (564) | (3,586) | 109 |
Provision for income taxes | $ 57,685 | $ 85,767 | $ 89,618 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 29, 2016 |
Deferred income tax assets: | ||
Leasing transactions | $ 32,019 | $ 32,826 |
Stock-based compensation | 14,029 | 12,817 |
Restructure charges and impairments | 3,533 | 2,211 |
Insurance reserves | 19,700 | 18,015 |
Employee benefit plans | 288 | 501 |
Gift cards | 23,670 | 18,609 |
State net operating losses | 2,554 | 3,030 |
Federal credit carryover | 12,697 | 14,722 |
State credit carryover | 3,148 | 3,238 |
Other, net | 8,480 | 7,930 |
Less: Valuation allowance | (5,232) | (5,315) |
Total deferred income tax assets | 114,886 | 108,584 |
Deferred income tax liabilities: | ||
Prepaid expenses | 19,506 | 17,360 |
Goodwill and other amortization | 30,213 | 28,659 |
Depreciation and capitalized interest on property and equipment | 26,375 | 43,858 |
Other, net | 1,763 | 4,382 |
Total deferred income tax liabilities | 77,857 | 94,259 |
Net deferred income tax asset | $ 37,029 | $ 14,325 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2017 | Jun. 29, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 4,989 | $ 3,843 |
Additions based on tax positions related to the current year | 402 | 1,359 |
Additions based on tax positions related to prior years | 31 | 2,332 |
Settlements with tax authorities | (681) | (1,963) |
Expiration of statute of limitations | (679) | (582) |
Balance at end of year | $ 4,062 | $ 4,989 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Income Tax Disclosure [Line Items] | |||
State net operating losses | $ 6,400 | ||
Federal credit carryover | 12,697 | $ 14,722 | |
State credit carryover | 4,800 | ||
Deferred Tax Assets, State Credit Carryover, Recognized | $ 500 | ||
Statutory Federal income tax rate | 35.00% | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 100 | ||
Undistributed Earnings of Foreign Subsidiaries | 3,800 | ||
Amount that would affect the effective tax rate if recognized | 3,100 | 3,900 | |
Recognized expense in interest | 200 | 1,300 | $ 200 |
Income tax penalties and interest accrued | 600 | 800 | |
Income tax penalties and interest accrued, net of deferred tax benefits | 400 | 600 | |
Federal deferred tax benefit | $ 200 | $ 200 |
Debt (Long-Term Debt) (Detail)
Debt (Long-Term Debt) (Detail) - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 29, 2016 |
Debt [Line Items] | ||
Capital lease obligations (see Note 9) | $ 45,417 | $ 37,532 |
Long-term debt and capital lease obligations, including current maturities | 1,337,667 | 1,117,782 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (8,189) | (3,526) |
Debt and capital lease obligations, net of unamortized debt issuance costs and discounts | 1,329,478 | 1,114,256 |
Less current installments | (9,649) | (3,563) |
Long-term debt, less current installments | 1,319,829 | 1,110,693 |
Revolver Borrowings [Member] | ||
Debt [Line Items] | ||
Revolving credit facility | 392,250 | 530,250 |
5.00% notes [Member] | ||
Debt [Line Items] | ||
Senior Notes | 350,000 | 0 |
3.88% notes [Member] | ||
Debt [Line Items] | ||
Senior Notes | 300,000 | 300,000 |
2.60% notes [Member] | ||
Debt [Line Items] | ||
Senior Notes | $ 250,000 | $ 250,000 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2016 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |
Debt [Line Items] | |||||
Repayments of Long-term Debt | $ 3,832,000 | $ 3,402,000 | $ 189,177,000 | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | 750,000,000 | |||
Debt instrument, face amount | $ 550,000,000 | ||||
Proceeds from issuance of long-term debt | 350,000,000 | 0 | $ 0 | ||
Net Payments on revolving credit facility | $ 138,000,000 | ||||
Line of Credit Facility, Covenant Compliance | We are currently in compliance with all financial covenants. | ||||
5.00% notes [Member] | |||||
Debt [Line Items] | |||||
Senior Notes | $ 350,000,000 | $ 0 | |||
Stated interest rate | 5.00% | 5.00% | |||
Debt Issuance Costs, Gross | $ 6,200,000 | ||||
Five Year Notes [Member] | |||||
Debt [Line Items] | |||||
Debt instrument, face amount | $ 250,000,000 | ||||
Stated interest rate | 2.60% | ||||
Ten Year Notes [Member] | |||||
Debt [Line Items] | |||||
Debt instrument, face amount | $ 300,000,000 | ||||
Stated interest rate | 3.88% | ||||
$1B Revolving Credit Facility [Member] | |||||
Debt [Line Items] | |||||
Repayments of Lines of Credit | 50,000,000 | ||||
Line of Credit Facility, Interest Rate During Period | 2.60% | ||||
Debt Instrument, Description of Variable Rate Basis | One month LIBOR | ||||
Debt available under revolving credit facility | $ 607,800,000 | ||||
Debt Issuance Costs, Gross | $ 4,000,000 | ||||
$1B Revolving Credit Facility [Member] | Maximum [Member] | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
$1B Revolving Credit Facility [Member] | Minimum [Member] | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 1.38% | ||||
$890M of the $1B Revolving Credit Facility [Member] | |||||
Debt [Line Items] | |||||
Line of Credit Facility, Expiration Date | Sep. 12, 2021 | ||||
$110M of the $1B Revolving Credit Facility [Member] | |||||
Debt [Line Items] | |||||
Line of Credit Facility, Expiration Date | Mar. 12, 2020 | ||||
March 2015 Revised Revolving Credit Facility [Member] | |||||
Debt [Line Items] | |||||
Proceeds from Lines of Credit | $ 256,500,000 | ||||
Repayments of Lines of Credit | $ 110,000,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | $1B Revolving Credit Facility [Member] | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 1.22% |
Debt (Long-Term Debt Maturities
Debt (Long-Term Debt Maturities Excluding Capital Lease Obligations) (Detail) $ in Thousands | Jun. 28, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 250,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 392,250 |
Thereafter | 650,000 |
Carrying value of notes | $ 1,292,250 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2017 | Jun. 29, 2016 | |
Capital Leased Assets [Line Items] | ||
Minimum lease renewal term at Company's option, years | 1 year | |
Maximum lease renewal term at Company's option, years | 30 years | |
Building [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 38.8 | $ 38.8 |
Capital lease accumulated amortization | 26 | 24.1 |
Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 12.4 | 0.7 |
Capital lease accumulated amortization | $ 0.7 | $ 0.2 |
Leases (Rent Expense Detail) (D
Leases (Rent Expense Detail) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Leases [Abstract] | |||
Straight-lined minimum rent | $ 109,819 | $ 107,776 | $ 92,917 |
Contingent rent | 3,821 | 4,408 | 4,774 |
Other | 11,682 | 11,283 | 9,998 |
Total rent expense | $ 125,322 | $ 123,467 | $ 107,689 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Detail) $ in Thousands | 12 Months Ended | |
Jun. 28, 2017USD ($) | ||
Leases [Abstract] | ||
Percentage Of Imputed Average Capital Lease Interest | 7.00% | |
Capital Leases, 2018 | $ 11,823 | |
Capital Leases, 2019 | 7,636 | |
Capital Leases, 2020 | 7,164 | |
Capital Leases, 2021 | 4,820 | |
Capital Leases, 2022 | 3,902 | |
Capital Leases, Thereafter | 24,074 | |
Capital Leases, Total minimum lease payments | 59,419 | [1] |
Imputed interest (average rate of 7%) | (14,002) | |
Present value of minimum lease payments | 45,417 | |
Less current installments | (9,649) | |
Capital Leases, Net minimum payments | 35,768 | |
Operating Leases, 2018 | 122,598 | |
Operating Leases, 2019 | 110,238 | |
Operating Leases, 2020 | 97,645 | |
Operating Leases, 2021 | 82,707 | |
Operating Leases, 2022 | 63,584 | |
Operating Leases, Thereafter | 130,083 | |
Operating Leases, Total minimum lease payments | 606,855 | [1] |
Capital Leases, Minimum sublease rentals | 25,000 | |
Operating Leases, Minimum sublease rentals | $ 40,800 | |
[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 $25.0 million and $40.8 million for capital and operating subleases, respectively. |
FAIR VALUE DISCLOSURES Fair Val
FAIR VALUE DISCLOSURES Fair Value Disclosures (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2017USD ($)Restaurants | Mar. 23, 2016USD ($) | Jun. 28, 2017USD ($)RestaurantsAsset | Jun. 29, 2016USD ($)RestaurantsAsset | Jun. 24, 2015USD ($) | |
Schedule of Impairments [Line Items] | |||||
Carrying Value Of Impaired Long Lived Assets | $ 3,400,000 | $ 4,500,000 | $ 7,000,000 | ||
Carrying value of reacquired franchise rights | $ 800,000 | $ 200,000 | |||
Number Of Underperforming Restaurants | Restaurants | 2 | 10 | 5 | ||
Fair Value Of Impaired Long Lived Assets | $ 201,000 | $ 208,000 | |||
Impairment of Long-Lived Assets Held-for-use | $ 3,400,000 | 5,100,000 | 7,000,000 | ||
Impairment of real estate | 187,000 | ||||
Carrying value of undeveloped land | 937,000 | ||||
Fair value of undeveloped land | 750,000 | ||||
Impairment of capital lease asset | 231,000 | ||||
Carrying value of impaired capital lease asset | 338,000 | ||||
Fair value of capital lease asset | 107,000 | ||||
Impairment of investment | 0 | 1,000,000 | $ 0 | ||
Cost Method Investments, Fair Value Disclosure | 0 | ||||
Liquor Licenses [Member] | |||||
Schedule of Impairments [Line Items] | |||||
Carrying Value Of Impaired Long Lived Assets | 1,300,000 | 1,100,000 | |||
Fair Value Of Impaired Long Lived Assets | $ 1,185,000 | $ 857,000 | |||
Number of Impaired Indefinite-Lived Assets | Asset | 6 | 4 | |||
Fair Value of Indefinite Lived Asset | $ 1,200,000 | $ 900,000 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 100,000 | $ 200,000 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2017USD ($)Restaurants | Mar. 23, 2016USD ($) | Jun. 28, 2017USD ($)RestaurantsAsset | Jun. 29, 2016USD ($)RestaurantsAsset | Jun. 24, 2015USD ($) | |
Fair Value Disclosures [Line Items] | |||||
Impairment of investment | $ 0 | $ 1,000 | $ 0 | ||
Carrying Value Of Impaired Long Lived Assets | $ 3,400 | 4,500 | 7,000 | ||
Carrying value of reacquired franchise rights | $ 800 | $ 200 | |||
Number Of Underperforming Restaurants | Restaurants | 2 | 10 | 5 | ||
Fair value of impaired long-lived asset | $ 201 | $ 208 | |||
Impairment of Long-Lived Assets Held-for-use | $ 3,400 | 5,100 | 7,000 | ||
Fair value of other long-lived assets | 0 | 857 | |||
Liquor Licenses [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Carrying Value Of Impaired Long Lived Assets | 1,300 | 1,100 | |||
Fair value of impaired long-lived asset | $ 1,185 | $ 857 | |||
Number of Impaired Indefinite-Lived Assets | Asset | 6 | 4 | |||
Fair Value of Indefinite Lived Asset | $ 1,200 | $ 900 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 100 | 200 | |||
Fair Value Measurements Using Level 1 [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Fair value of impaired long-lived asset | 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 other long-lived assets | 0 | 750 | |||
Fair Value Measurements Using Level 2 [Member] | Liquor Licenses [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Fair value of impaired long-lived asset | 1,185 | 857 | |||
Fair Value Measurements Using Level 3 [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Fair value of impaired long-lived asset | 201 | 208 | |||
Fair value of other long-lived assets | 0 | 107 | |||
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 V67
FAIR VALUE DISCLOSURES Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 28, 2017 | Sep. 28, 2016 | Jun. 29, 2016 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,292,250 | ||
2.60% notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 249,495 | $ 248,918 | |
Long-term Debt, Fair Value | $ 250,480 | 252,445 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | ||
3.88% notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 297,912 | 297,556 | |
Long-term Debt, Fair Value | $ 286,077 | 302,655 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | ||
5.00% notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 344,405 | 0 | |
Long-term Debt, Fair Value | $ 347,956 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
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 | $ 1.6 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 1 year 10 months 15 days | ||
Total intrinsic value of options exercised | $ 5.6 | $ 5.3 | $ 28.1 |
Tax benefit realized on options exercised | 1.6 | 1.6 | 9.2 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 9.4 | ||
Period of recognition for unrecognized stock-based compensation costs, in years | 2 years 2 months 10 days | ||
Fair value of shares that vested during period | $ 12.8 | $ 23.9 | $ 34.2 |
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 2017-Stock Options) (Detail) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 28, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at June 29, 2016, Number of Options | shares | 1,217,000 |
Granted, Number of Options | shares | 546,000 |
Exercised, Number of Options | shares | (225,000) |
Forfeited or canceled, Number of Options | shares | (162,000) |
Options outstanding at June 28, 2017, Number of Options | shares | 1,376,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at June 29, 2016, Weighted Average Exercise Price | $ / shares | $ 39.12 |
Granted, Weighted Average Exercise Price | $ / shares | 53.10 |
Exercised, Weighted Average Exercise Price | $ / shares | 24.98 |
Forfeited or canceled, Weighted Average Exercise Price | $ / shares | 52.01 |
Options outstanding at June 28, 2017, Weighted Average Exercise Price | $ / shares | $ 45.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 652,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 37.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 4,014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 4,014 |
Stock-Based Compensation (Tra70
Stock-Based Compensation (Transactions During Fiscal 2017-Restricted Share Awards) (Detail) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Jun. 28, 2017$ / 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 29, 2016, Number of Restricted Share Awards | shares | 998 |
Granted, Number of Restricted Share Awards | shares | 262 |
Vested, Number of Restricted Share Awards | shares | (303) |
Forfeited, Number of Restricted Share Awards | shares | (143) |
Restricted share awards outstanding at June 28, 2017, Number of Restricted Share Awards | shares | 814 |
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 29, 2016, Weighted Average Fair Value Per Award | $ / shares | $ 42.68 |
Granted, Weighted Average Fair Value Per Award | $ / shares | 53.11 |
Vested, Weighted Average Fair Value Per Award | $ / shares | 39.55 |
Forfeited, Weighted Average Fair Value Per Award | $ / shares | 47.71 |
Restricted share awards outstanding at June 28, 2017, Weighted Average Fair Value Per Award | $ / shares | $ 46.32 |
Savings Plans (Narrative) (Deta
Savings Plans (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
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 | $ 8.9 | $ 8 |
Supplemental Cash Flow Inform72
Supplemental Cash Flow Information (Cash Paid For Interest And Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Income taxes, net of refunds | $ 89,035 | $ 45,743 | $ 50,437 |
Interest, net of amounts capitalized | $ 39,767 | $ 28,989 | $ 26,190 |
Supplemental Cash Flow Inform73
Supplemental Cash Flow Information (Non-Cash Investing and Financing Activities) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Retirement of fully depreciated assets | $ 21,185 | $ 24,806 | $ 40,775 |
Accrued capital expenditures | 12,738 | 7,094 | 4,109 |
Capital Lease Obligations Incurred | 11,717 | 0 | 0 |
Dividend Declared [Member] | |||
Dividends declared but not paid | $ 17,317 | $ 18,442 | $ 18,132 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2017 | Jun. 29, 2016 | |
Guarantor Obligations [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 31.2 | |
Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Accrual, Current | $ 1.5 | |
Description of Material Contingencies of Parent Company | No other liabilities have been recorded | |
Maximum [Member] | Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 69 | $ 72.9 |
CONTINGENCIES Loss Contingencie
CONTINGENCIES Loss Contingencies (Details) | Jun. 28, 2017LegalMatter |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 0 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | $ 3,062,579 | $ 3,166,659 | $ 2,904,746 | |||||||||
Franchise and other revenues | 88,258 | 90,830 | 97,532 | |||||||||
Revenues | $ 810,661 | $ 810,641 | $ 771,043 | $ 758,492 | $ 881,681 | $ 824,639 | $ 788,610 | $ 762,559 | 3,150,837 | 3,257,489 | 3,002,278 | |
Company restaurant expenses (a) | [1] | 2,582,776 | 2,638,872 | 2,407,603 | ||||||||
Depreciation and amortization | 156,409 | 156,368 | 145,242 | |||||||||
General and administrative | 132,819 | 127,593 | 133,467 | |||||||||
Other gains and charges | 22,655 | 17,180 | 4,764 | |||||||||
Total operating costs and expenses | 2,894,659 | 2,940,013 | 2,691,076 | |||||||||
Operating income | 256,178 | 317,476 | 311,202 | |||||||||
Assets | 1,413,700 | 1,458,450 | 1,413,700 | 1,458,450 | ||||||||
Equity Method Investments | 10,171 | 10,257 | 10,171 | 10,257 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 102,573 | 112,788 | 140,262 | |||||||||
Chili's Restaurants [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | 2,653,301 | 2,754,904 | 2,503,133 | |||||||||
Franchise and other revenues | 66,693 | 68,484 | 75,860 | |||||||||
Revenues | 2,719,994 | 2,823,388 | 2,578,993 | |||||||||
Company restaurant expenses (a) | [1] | 2,220,607 | 2,272,771 | 2,044,521 | ||||||||
Depreciation and amortization | 129,335 | 131,306 | 122,093 | |||||||||
General and administrative | 37,005 | 35,845 | 37,131 | |||||||||
Other gains and charges | 13,229 | 6,973 | 600 | |||||||||
Total operating costs and expenses | 2,400,176 | 2,446,895 | 2,204,345 | |||||||||
Operating income | 319,818 | 376,493 | 374,648 | |||||||||
Assets | 1,173,797 | 1,218,009 | 1,173,797 | 1,218,009 | ||||||||
Equity Method Investments | 10,171 | 10,257 | 10,171 | 10,257 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 75,992 | 80,277 | 114,416 | |||||||||
Maggiano's Restaurants [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Company sales | 409,278 | 411,755 | 401,613 | |||||||||
Franchise and other revenues | 21,565 | 22,346 | 21,672 | |||||||||
Revenues | 430,843 | 434,101 | 423,285 | |||||||||
Company restaurant expenses (a) | [1] | 361,700 | 364,466 | 360,903 | ||||||||
Depreciation and amortization | 16,172 | 15,046 | 14,233 | |||||||||
General and administrative | 6,191 | 6,225 | 6,722 | |||||||||
Other gains and charges | 783 | 3,472 | (1,009) | |||||||||
Total operating costs and expenses | 384,846 | 389,209 | 380,849 | |||||||||
Operating income | 45,997 | 44,892 | 42,436 | |||||||||
Assets | 163,733 | 163,753 | 163,733 | 163,753 | ||||||||
Equity Method Investments | 0 | 0 | 0 | 0 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 13,288 | 17,540 | 14,408 | |||||||||
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 | |||||||||
Company restaurant expenses (a) | [1] | 469 | 1,635 | 2,179 | ||||||||
Depreciation and amortization | 10,902 | 10,016 | 8,916 | |||||||||
General and administrative | 89,623 | 85,523 | 89,614 | |||||||||
Other gains and charges | 8,643 | 6,735 | 5,173 | |||||||||
Total operating costs and expenses | 109,637 | 103,909 | 105,882 | |||||||||
Operating income | (109,637) | (103,909) | (105,882) | |||||||||
Assets | 76,170 | 76,688 | 76,170 | 76,688 | ||||||||
Equity Method Investments | $ 0 | $ 0 | 0 | 0 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ 13,293 | $ 14,971 | $ 11,438 | |||||||||
[1] | Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Income from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Segment Reporting [Abstract] | |||||||||||
Operating income | $ 256,178 | $ 317,476 | $ 311,202 | ||||||||
Interest expense | (49,547) | (32,574) | (29,006) | ||||||||
Other, net | 1,877 | 1,485 | 2,081 | ||||||||
Income before provision for income taxes | $ 67,662 | $ 59,612 | $ 48,268 | $ 32,966 | $ 91,212 | $ 78,150 | $ 68,272 | $ 48,753 | $ 208,508 | $ 286,387 | $ 284,277 |
Immaterial Correction of Prio78
Immaterial Correction of Prior Period Financial Statements (Revisions to Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | Jun. 25, 2014 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Income before provision for income taxes | $ 67,662 | $ 59,612 | $ 48,268 | $ 32,966 | $ 91,212 | $ 78,150 | $ 68,272 | $ 48,753 | $ 208,508 | $ 286,387 | $ 284,277 | |||||
Provision for income taxes | 57,685 | 85,767 | 89,618 | |||||||||||||
Net income | $ 50,584 | $ 42,369 | $ 34,637 | $ 23,233 | $ 62,217 | $ 57,502 | $ 47,694 | $ 33,207 | $ 150,823 | $ 200,620 | [1] | $ 194,659 | [1] | |||
Basic net income per share (in dollars per share) | $ 1.03 | $ 0.87 | $ 0.70 | $ 0.42 | $ 1.12 | $ 1.01 | $ 0.81 | $ 0.55 | $ 2.98 | $ 3.47 | $ 3.09 | |||||
Diluted net income per share (in dollars per share) | $ 1.02 | $ 0.86 | $ 0.69 | $ 0.42 | $ 1.10 | $ 1 | $ 0.80 | $ 0.54 | $ 2.94 | $ 3.42 | $ 3.02 | |||||
Basic weighted average shares outstanding (in shares) | 48,917 | 48,954 | 49,833 | 54,844 | 55,657 | 56,673 | 59,198 | 60,225 | 50,638 | 57,895 | 63,072 | |||||
Diluted weighted average shares outstanding (in shares) | 49,435 | 49,506 | 50,480 | 55,576 | 56,394 | 57,407 | 59,899 | 61,208 | 51,250 | 58,684 | 64,404 | |||||
Foreign currency translation adjustment | $ (327) | $ (2,964) | $ (7,690) | |||||||||||||
Other comprehensive loss | (327) | (2,964) | (7,690) | |||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 150,496 | 197,656 | 186,969 | |||||||||||||
Accounts receivable, net | $ 44,658 | $ 45,612 | 44,658 | 45,612 | ||||||||||||
Assets, Current | 154,392 | 178,442 | 154,392 | 178,442 | ||||||||||||
Deferred income taxes, net | 37,029 | 14,325 | 37,029 | 14,325 | ||||||||||||
Total Other Assets | 258,694 | 236,856 | 258,694 | 236,856 | ||||||||||||
Assets | 1,413,700 | 1,458,450 | 1,413,700 | 1,458,450 | ||||||||||||
Income taxes payable | 14,203 | 22,022 | 14,203 | 22,022 | ||||||||||||
Liabilities, Current | 446,428 | 435,651 | 446,428 | 435,651 | ||||||||||||
Other liabilities | 141,124 | 137,682 | 141,124 | 137,682 | ||||||||||||
Stockholders' Equity Attributable to Parent | (493,681) | (225,576) | (493,681) | (225,576) | (90,812) | $ 63,094 | ||||||||||
Liabilities and Equity | 1,413,700 | 1,458,450 | 1,413,700 | 1,458,450 | ||||||||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | [1] | (10,317) | ||||||||||||||
Scenario, Previously Reported [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Income before provision for income taxes | 286,387 | 284,277 | ||||||||||||||
Provision for income taxes | 85,642 | 87,583 | ||||||||||||||
Net income | $ 200,745 | $ 196,694 | ||||||||||||||
Basic net income per share (in dollars per share) | $ 3.47 | $ 3.12 | ||||||||||||||
Diluted net income per share (in dollars per share) | $ 3.42 | $ 3.05 | ||||||||||||||
Basic weighted average shares outstanding (in shares) | 57,895 | 63,072 | ||||||||||||||
Diluted weighted average shares outstanding (in shares) | 58,684 | 64,404 | ||||||||||||||
Foreign currency translation adjustment | $ (2,964) | $ (7,690) | ||||||||||||||
Other comprehensive loss | (2,964) | (7,690) | ||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 197,781 | 189,004 | ||||||||||||||
Accounts receivable, net | 43,944 | 43,944 | ||||||||||||||
Assets, Current | 176,774 | 176,774 | ||||||||||||||
Deferred income taxes, net | 27,003 | 27,003 | ||||||||||||||
Total Other Assets | [2] | 249,534 | 249,534 | |||||||||||||
Assets | [2] | 1,469,460 | 1,469,460 | |||||||||||||
Income taxes payable | 18,814 | 18,814 | ||||||||||||||
Liabilities, Current | 432,443 | 432,443 | ||||||||||||||
Other liabilities | 139,423 | 139,423 | ||||||||||||||
Stockholders' Equity Attributable to Parent | (213,099) | (213,099) | ||||||||||||||
Liabilities and Equity | 1,469,460 | 1,469,460 | ||||||||||||||
Accounting Standards Update 2015-03 [Member] | 2.60% notes [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | 1,000 | 1,000 | ||||||||||||||
Accounting Standards Update 2015-03 [Member] | 3.88% notes [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | 2,200 | 2,200 | ||||||||||||||
Retained Earnings | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Net income | 150,823 | 200,620 | [1] | 194,659 | [1] | |||||||||||
Other comprehensive loss | 0 | 0 | 0 | |||||||||||||
Stockholders' Equity Attributable to Parent | 2,627,073 | $ 2,545,716 | 2,627,073 | $ 2,545,716 | 2,419,331 | 2,306,532 | ||||||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (12,500) | $ (12,500) | $ (10,317) | $ (10,317) | [1] | |||||||||||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. | |||||||||||||||
[2] | During the first quarter of fiscal 2017, we adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis. Accordingly, we reclassified the debt issuance cost balances associated with the 2.60% notes and 3.88% notes of $1.0 million and $2.2 million, respectively, from other assets to long-term debt, less current installments on the consolidated balance sheet as of June 29, 2016. |
Quarterly Results Of Operatio79
Quarterly Results Of Operations (Unaudited) (Unaudited Consolidated Quarterly Results Of Operations) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenues | $ 810,661 | $ 810,641 | $ 771,043 | $ 758,492 | $ 881,681 | $ 824,639 | $ 788,610 | $ 762,559 | $ 3,150,837 | $ 3,257,489 | $ 3,002,278 | ||
Income before provision for income taxes | 67,662 | 59,612 | 48,268 | 32,966 | 91,212 | 78,150 | 68,272 | 48,753 | 208,508 | 286,387 | 284,277 | ||
Net income | $ 50,584 | $ 42,369 | $ 34,637 | $ 23,233 | $ 62,217 | $ 57,502 | $ 47,694 | $ 33,207 | $ 150,823 | $ 200,620 | [1] | $ 194,659 | [1] |
Basic net income per share (in dollars per share) | $ 1.03 | $ 0.87 | $ 0.70 | $ 0.42 | $ 1.12 | $ 1.01 | $ 0.81 | $ 0.55 | $ 2.98 | $ 3.47 | $ 3.09 | ||
Diluted net income per share (in dollars per share) | $ 1.02 | $ 0.86 | $ 0.69 | $ 0.42 | $ 1.10 | $ 1 | $ 0.80 | $ 0.54 | $ 2.94 | $ 3.42 | $ 3.02 | ||
Basic weighted average shares outstanding (in shares) | 48,917 | 48,954 | 49,833 | 54,844 | 55,657 | 56,673 | 59,198 | 60,225 | 50,638 | 57,895 | 63,072 | ||
Diluted weighted average shares outstanding (in shares) | 49,435 | 49,506 | 50,480 | 55,576 | 56,394 | 57,407 | 59,899 | 61,208 | 51,250 | 58,684 | 64,404 | ||
[1] | We discovered immaterial errors in prior years relating to the accuracy of certain tax accounts. While we concluded that the impact of these errors on our previously-issued consolidated financial statements was not material, we revised our previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions to the consolidated statements of shareholder's (deficit) equity include a $10.3 million decrease to retained earnings at the beginning of fiscal 2015 and decreases to net income of $2.1 million and $0.1 million for fiscal 2015 and fiscal 2016, respectively, for a total reduction of $12.5 million. For additional information, see Note 16—Immaterial Correction of Prior Period Financial Statements. |
Quarterly Results Of Operatio80
Quarterly Results Of Operations (Unaudited) (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 28, 2017 | Mar. 29, 2017 | Dec. 28, 2016 | Sep. 28, 2016 | Jun. 29, 2016 | Mar. 23, 2016 | Dec. 23, 2015 | Sep. 23, 2015 | Mar. 25, 2015 | Dec. 24, 2014 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 | |
Quarterly Financial Data [Line Items] | |||||||||||||
Litigation | $ 0 | $ (3,191) | $ (2,753) | ||||||||||
Litigation reserves | $ 5,800 | ||||||||||||
Proceeds from Legal Settlements | $ 1,200 | $ 2,000 | $ 8,600 | ||||||||||
Acquisition costs | $ 100 | $ 600 | 0 | 700 | 1,100 | ||||||||
Long-lived asset impairments | $ 3,300 | $ 1,900 | 6,700 | 3,400 | 500 | 5,190 | 10,651 | 2,255 | |||||
Restaurant closure charges | 500 | $ 800 | 300 | $ 2,500 | 4,084 | 3,780 | 1,736 | ||||||
Severance and other benefits | 400 | $ 5,900 | 300 | 900 | 200 | 2,200 | 6,591 | 3,304 | 1,182 | ||||
Expenses related to a bankrupt franchisee | 200 | $ 1,200 | 1,400 | ||||||||||
Lease Termination Charges | 1,100 | $ 3,800 | |||||||||||
Information technology restructuring | 200 | 2,500 | 2,739 | 0 | 0 | ||||||||
Gain (Loss) on Disposition of Assets | (2,600) | $ (1,100) | $ (1,800) | 2,659 | 2,858 | (1,093) | |||||||
Accelerated depreciation | 600 | $ 700 | $ 700 | 1,988 | 0 | $ 0 | |||||||
Professional Fees | $ 2,400 | $ 2,400 | $ 1,200 |
SUBSEQUENT EVENTS Subsequent Ev
SUBSEQUENT EVENTS Subsequent Events (Details) - USD ($) | Aug. 10, 2017 | Aug. 28, 2017 | Jun. 28, 2017 | Sep. 28, 2016 | Sep. 23, 2015 | Jun. 28, 2017 | Jun. 29, 2016 | Jun. 24, 2015 |
Subsequent Event [Line Items] | ||||||||
Borrowings on revolving credit facility | $ 250,000,000 | $ 256,500,000 | $ 480,750,000 | |||||
Increase in share repurchase program | $ 150,000,000 | |||||||
Remaining authorized share purchases, amount | $ 115,800,000 | $ 115,800,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.34 | $ 0.34 | $ 0.32 | $ 1.36 | $ 1.28 | $ 1.12 | ||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowings on revolving credit facility | $ 110,000,000 | |||||||
Increase in share repurchase program | $ 250,000,000 | |||||||
Remaining authorized share purchases, amount | $ 365,000,000 | |||||||
Dividends Payable, Date Declared | Aug. 10, 2017 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.38 |
EFFECT OF NEW ACCOUNTING STAN82
EFFECT OF NEW ACCOUNTING STANDARDS Effect of New Accounting Standards (Details) $ in Thousands | 12 Months Ended | |
Jun. 28, 2017USD ($) | ||
Effect of New Accounting Standards [Abstract] | ||
Estimated impact on income tax expense of adoption of ASU 2016-09 in Fiscal 2018 | $ 2,000 | |
Operating Leases, Future Minimum Payments Due | $ 606,855 | [1] |
[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 $25.0 million and $40.8 million for capital and operating subleases, respectively. |