Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 27, 2017 | Oct. 30, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BRINKER INTERNATIONAL INC | |
Entity Central Index Key | 703,351 | |
Current Fiscal Year End Date | --06-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,290,188 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 27, 2017 | Jun. 28, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 8,954 | $ 9,064 |
Accounts receivable, net | 38,552 | 44,658 |
Inventories | 24,202 | 24,997 |
Restaurant supplies | 46,516 | 46,380 |
Prepaid expenses | 19,231 | 19,226 |
Income taxes receivable | 3,421 | 0 |
Total current assets | 140,876 | 144,325 |
Property and Equipment, at Cost: | ||
Land | 149,098 | 149,098 |
Buildings and leasehold improvements | 1,660,650 | 1,655,227 |
Furniture and equipment | 706,469 | 713,228 |
Construction-in-progress | 15,381 | 21,767 |
Property plant and equipment gross | 2,531,598 | 2,539,320 |
Less accumulated depreciation and amortization | (1,556,773) | (1,538,706) |
Net property and equipment | 974,825 | 1,000,614 |
Other Assets: | ||
Goodwill | 164,245 | 163,953 |
Deferred income taxes, net | 32,443 | 37,029 |
Intangibles, net | 25,836 | 27,512 |
Other | 30,400 | 30,200 |
Total other assets | 252,924 | 258,694 |
Total assets | 1,368,625 | 1,403,633 |
Current Liabilities: | ||
Current installments of long-term debt | 9,015 | 9,649 |
Accounts payable | 93,229 | 104,231 |
Gift card liability | 118,006 | 126,482 |
Accrued payroll | 63,787 | 70,281 |
Other accrued liabilities | 130,325 | 111,515 |
Income taxes payable | 0 | 14,203 |
Total current liabilities | 414,362 | 436,361 |
Long-term debt, less current installments | 1,353,659 | 1,319,829 |
Other liabilities | 139,632 | 141,124 |
Commitments and Contingencies (Note 10) | ||
Shareholders’ Deficit: | ||
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 47,233,919 shares outstanding at September 27, 2017, and 176,246,649 shares issued and 48,440,721 shares outstanding at June 28, 2017 | 17,625 | 17,625 |
Additional paid-in capital | 503,058 | 502,074 |
Accumulated other comprehensive loss | (10,384) | (11,921) |
Retained earnings | 2,618,182 | 2,627,073 |
Shareholders' deficit including treasury stock | 3,128,481 | 3,134,851 |
Less treasury stock, at cost (129,012,730 shares at September 27, 2017 and 127,805,928 shares at June 28, 2017) | (3,667,509) | (3,628,532) |
Total shareholders’ deficit | (539,028) | (493,681) |
Total liabilities and shareholders’ deficit | $ 1,368,625 | $ 1,403,633 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 27, 2017 | Jun. 28, 2017 |
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 | 47,233,919 | 48,440,721 |
Treasury Stock, shares | 129,012,730 | 127,805,928 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 27, 2017 | Sep. 28, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Company sales | $ 716,942 | $ 737,410 | |
Franchise and other revenues | 22,448 | 21,082 | |
Total revenues | 739,390 | 758,492 | |
Operating costs and expenses: | |||
Cost of sales | 187,597 | 192,302 | |
Restaurant labor | 251,075 | 250,570 | |
Restaurant expenses | 188,129 | 196,643 | |
Company restaurant expenses | [1] | 626,801 | 639,515 |
Depreciation and amortization | 38,520 | 38,886 | |
General and administrative | 32,358 | 32,537 | |
Other gains and charges | 13,154 | 6,078 | |
Total operating costs and expenses | 710,833 | 717,016 | |
Operating income | 28,557 | 41,476 | |
Interest expense | 13,884 | 8,809 | |
Other, net | (476) | (299) | |
Income before provision for income taxes | 15,149 | 32,966 | |
Provision for income taxes | 5,272 | 9,733 | |
Net income | $ 9,877 | $ 23,233 | |
Basic net income per share | $ 0.20 | $ 0.42 | |
Diluted net income per share | $ 0.20 | $ 0.42 | |
Basic weighted average shares outstanding | 48,293 | 54,844 | |
Diluted weighted average shares outstanding | 48,732 | 55,576 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | $ 1,537 | $ (481) | |
Other comprehensive income (loss) | 1,537 | (481) | |
Comprehensive income | $ 11,414 | $ 22,752 | |
Dividends per share | $ 0.38 | $ 0.34 | |
[1] | (a)Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 9,877 | $ 23,233 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,520 | 38,886 |
Stock-based compensation | 3,480 | 4,034 |
Deferred income taxes, net | 4,576 | (2,968) |
Restructure charges and other impairments | 9,019 | 5,150 |
Net loss on disposal of assets | 417 | 481 |
Undistributed loss (earnings) on equity investments | 162 | (186) |
Other | 967 | 490 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 6,466 | 8,261 |
Inventories | 171 | 20 |
Restaurant supplies | (782) | (784) |
Prepaid expenses | 3 | (2,272) |
Other assets | (95) | (351) |
Accounts payable | (4,979) | 1,392 |
Gift card liability | (8,477) | (1,604) |
Accrued payroll | (6,510) | (4,748) |
Other accrued liabilities | 15,178 | 8,090 |
Current income taxes | (18,176) | (10,134) |
Other liabilities | 413 | 768 |
Net cash provided by operating activities | 50,230 | 67,758 |
Cash Flows from Investing Activities: | ||
Payments for property and equipment | (22,460) | (27,111) |
Proceeds from sale of assets | 85 | 0 |
Net cash used in investing activities | (22,375) | (27,111) |
Cash Flows from Financing Activities: | ||
Borrowings on revolving credit facility | 110,000 | 70,000 |
Payments on revolving credit facility | (77,000) | (83,000) |
Purchases of treasury stock | (41,718) | (349,963) |
Payments of dividends | (16,978) | (18,298) |
Payments on long-term debt | (2,514) | (890) |
Proceeds from issuances of treasury stock | 245 | 3,396 |
Proceeds from issuance of long-term debt | 0 | 350,000 |
Payments for debt issuance costs | 0 | (9,183) |
Net cash used in financing activities | (27,965) | (37,938) |
Net change in cash and cash equivalents | (110) | 2,709 |
Cash and cash equivalents at beginning of period | 9,064 | 31,446 |
Cash and cash equivalents at end of period | $ 8,954 | $ 34,155 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 27, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION References to “Brinker,” the "Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our unaudited consolidated financial statements as of September 27, 2017 and June 28, 2017 and thirteen week periods ended September 27, 2017 and September 28, 2016 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We are principally engaged in the ownership, operation, development, and franchising of the Chili’s ® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy ® (“Maggiano’s”) restaurant brands. At September 27, 2017 , we owned, operated or franchised 1,682 restaurants in the United States and 32 countries and two territories outside of the United States. The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of our Canadian restaurants and our Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings. Additionally, certain prior year balances in the consolidated balance sheets have been reclassified to conform with fiscal 2018 presentation. These reclassifications have no effect on our net income as previously reported and an immaterial impact on our prior year consolidated balance sheets. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") 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 periods. Actual results could differ from those estimates. In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update changed the recognition of excess tax benefits and tax deficiencies resulting from the settlement of share-based awards from an adjustment to additional paid-in capital on the consolidated balance sheets to an adjustment to the provision for income taxes on the consolidated statements of comprehensive income and is applied on a prospective basis. This update also changed the classification of excess tax benefits from cash flows from financing activities to cash flows from operating activities on the consolidated statements of cash flows and is applied retrospectively. This update was effective for annual and interim periods for fiscal years beginning after December 15, 2016, which required us to adopt these provisions in the first quarter of fiscal 2018. Accordingly, we recognized a discrete tax expense of $1.6 million in the provision for income taxes, which resulted in a decrease in diluted earnings per share of $0.03 , in the consolidated statements of comprehensive income for the thirteen week period ended September 27, 2017. The inclusion of excess tax benefits and tax deficiencies within our provision for income taxes will increase its volatility as the amount of excess tax benefits or tax deficiencies from share-based compensation awards depends on our stock price at the date the awards vest. In addition, we reclassified $1.5 million of excess tax benefits received in the first quarter of fiscal 2017 from cash flows from financing activities to cash flows from operating activities on our consolidated statement of cash flows for the thirteen week period ended September 28, 2016. The adoption of the other provisions in this update, including the accounting policy election for accounting 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, had no impact on our consolidated financial statements. We will continue to estimate forfeitures of share-based awards. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the June 28, 2017 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 27, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting 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 earnings 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): Thirteen Week Periods Ended September 27, 2017 September 28, 2016 Basic weighted average shares outstanding 48,293 54,844 Dilutive stock options 83 246 Dilutive restricted shares 356 486 439 732 Diluted weighted average shares outstanding 48,732 55,576 Awards excluded due to anti-dilutive effect on diluted net income per share 1,414 1,027 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Sep. 27, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | DEBT Long-term debt consists of the following (in thousands): September 27, June 28, Revolving credit facility $ 425,250 $ 392,250 5.00% notes 350,000 350,000 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations 45,186 45,417 Total long-term debt 1,370,436 1,337,667 Less unamortized debt issuance costs and discounts (7,762 ) (8,189 ) Total long-term debt less unamortized debt issuance costs and discounts 1,362,674 1,329,478 Less current installments (9,015 ) (9,649 ) $ 1,353,659 $ 1,319,829 During the first three months of fiscal 2018, net borrowings of $33.0 million were drawn on the $1 billion revolving credit facility primarily to fund share repurchases. Under the revolving credit facility, $890.0 million of the facility is due on September 12, 2021 and the remaining $110.0 million is due on March 12, 2020 . The revolving credit facility bears interest of LIBOR plus an applicable margin, which is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.00% . Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.38% for a total of 2.61% . One month LIBOR at September 27, 2017 was approximately 1.23% . As of September 27, 2017 , $574.8 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. We are currently in compliance with all financial covenants. |
OTHER GAINS AND CHARGES
OTHER GAINS AND CHARGES | 3 Months Ended |
Sep. 27, 2017 | |
Other Gains and Charges [Abstract] | |
OTHER GAINS AND CHARGES | OTHER GAINS AND CHARGES Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended September 27, September 28, Restaurant impairment charges $ 7,159 $ — Hurricane-related costs 4,648 — Accelerated depreciation 483 — Restaurant closure charges 238 2,506 Loss on the sale of assets, net 45 — Information technology restructuring — 2,491 Other 581 1,081 $ 13,154 $ 6,078 Fiscal 2018 During the first quarter of fiscal 2018, we recorded asset impairment charges of $7.2 million primarily related to the long-lived assets and reacquired franchise rights of nine underperforming Chili's restaurants located in Alberta, Canada which are scheduled to close in the second quarter of fiscal 2018. Alberta has an oil dependent economy and has experienced an economic recession in recent years related to lower oil production. The slower economy has negatively affected traffic at the restaurants. The decision to close these restaurants was driven by management’s belief that the long-term profitability of these restaurants will not meet our required level of return. Additionally, we incurred expenses associated with Hurricanes Harvey and Irma primarily related to employee relief payments and inventory spoilage. Our restaurants were closed in the areas affected by these disasters and our team members were unable to work. These payments were made to assist our team members during these crises and to promote retention. We carry insurance coverage for these types of natural disasters and are working closely with our insurance provider to determine what, if any, costs are recoverable related to the losses recorded as well as our loss of revenues. Fiscal 2017 During the first quarter of fiscal 2017, we recorded restaurant closure charges of $2.5 million primarily related to lease termination charges for restaurants closed during the quarter. Additionally, we incurred $2.5 million of professional fees and severance associated with our information technology restructuring. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 27, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 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 operating 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): Thirteen Week Period Ended September 27, 2017 Chili's Maggiano's Other Consolidated Company sales $ 627,604 $ 89,338 $ — $ 716,942 Franchise and other revenues 18,265 4,183 — 22,448 Total revenues 645,869 93,521 — 739,390 Company restaurant expenses (a) 541,346 85,308 147 626,801 Depreciation and amortization 31,804 4,050 2,666 38,520 General and administrative 9,578 1,313 21,467 32,358 Other gains and charges 12,149 (212 ) 1,217 13,154 Total operating costs and expenses 594,877 90,459 25,497 710,833 Operating income (loss) $ 50,992 $ 3,062 $ (25,497 ) $ 28,557 Segment assets $ 1,141,870 $ 157,505 $ 69,250 $ 1,368,625 Equity method investment 10,528 — — 10,528 Payments for property and equipment 18,619 2,456 1,385 22,460 Thirteen Week Period Ended September 28, 2016 Chili's Maggiano's Other Consolidated Company sales $ 648,643 $ 88,767 $ — $ 737,410 Franchise and other revenues 16,915 4,167 — 21,082 Total revenues 665,558 92,934 — 758,492 Company restaurant expenses (a) 555,570 83,585 360 639,515 Depreciation and amortization 32,601 3,886 2,399 38,886 General and administrative 9,930 1,524 21,083 32,537 Other gains and charges 1,926 734 3,418 6,078 Total operating costs and expenses 600,027 89,729 27,260 717,016 Operating income (loss) $ 65,531 $ 3,205 $ (27,260 ) $ 41,476 Payments for property and equipment 18,829 4,896 3,386 27,111 ____________________________________________________________________ (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: Thirteen Week Periods Ended September 27, 2017 September 28, 2016 Operating income $ 28,557 $ 41,476 Less interest expense (13,884 ) (8,809 ) Plus other, net 476 299 Income before provision for income taxes $ 15,149 $ 32,966 |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 3 Months Ended |
Sep. 27, 2017 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): September 27, June 28, Property tax $ 21,257 $ 16,566 Insurance 19,298 17,484 Dividends 18,432 16,649 Interest 16,591 7,696 Sales tax 13,397 12,494 Other 41,350 40,626 $ 130,325 $ 111,515 Other liabilities consist of the following (in thousands): September 27, June 28, Straight-line rent $ 58,285 $ 57,464 Insurance 42,625 42,532 Landlord contributions 25,144 26,402 Unfavorable leases 4,595 5,398 Unrecognized tax benefits 3,116 3,116 Other 5,867 6,212 $ 139,632 $ 141,124 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 27, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: • Level 1 – inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 – inputs are unobservable and reflect our own assumptions. (a) Non-Financial Assets Measured on a Non-Recurring Basis We review the carrying amounts of property and equipment, reacquired franchise rights and transferable liquor licenses semi-annually or when events or circumstances indicate that the fair value may not exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. During the first quarter of fiscal 2018, we impaired long-lived assets and reacquired franchise rights with carrying values of $6.0 million and $1.2 million , respectively, primarily related to underperforming Chili's restaurants located in Alberta, Canada which were identified for closure by management. We determined the leasehold improvements and other assets associated with these restaurants had no fair value, based on Level 3 fair value measurements, resulting in an impairment charge of $7.2 million . The restaurant assets were assigned a zero fair value as the decision to close the restaurants in the second quarter of fiscal 2018 will result in substantially all of the assets reverting to the landlords. No impairment charges were recorded in the first quarter of fiscal 2017. We review the carrying amounts of goodwill annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the implied fair value of the goodwill. No goodwill impairment charges were recorded in the first quarters of fiscal 2018 and fiscal 2017 and no indicators of impairment were identified through the end of the first quarter of fiscal 2018. All impairment charges were included in other gains and charges in the consolidated statements of comprehensive income for the periods presented. (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 our revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of the 2.60% notes, 3.88% notes and 5.00% notes are based on quoted market prices and are considered Level 2 fair value measurements. The carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands): September 27, 2017 June 28, 2017 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,639 $ 250,933 $ 249,495 $ 250,480 3.88% Notes $ 298,001 $ 293,307 $ 297,912 $ 286,077 5.00% Notes $ 344,597 $ 346,941 $ 344,405 $ 347,956 |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 3 Months Ended |
Sep. 27, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' DEFICIT | SHAREHOLDERS’ DEFICIT In August 2017, our Board of Directors authorized a $250.0 million increase to our existing share repurchase program resulting in total authorizations of $4.6 billion . We repurchased approximately 1.3 million shares of our common stock for $41.7 million during the first quarter of fiscal 2018 . 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. Repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit. As of September 27, 2017 , approximately $324.9 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. During the first quarter of fiscal 2018 , we granted approximately 1.2 million stock options with a weighted average exercise price per share of $31.22 and a weighted average fair value per share of $4.45 , and approximately 415,000 restricted share awards with a weighted average fair value per share of $31.22 . During the first quarter of fiscal 2018 , we paid dividends of $17.0 million to common stock shareholders, compared to $18.3 million in the prior year. Additionally, our Board of Directors approved a 12% increase in the quarterly dividend from $0.34 to $0.38 per share effective with the dividend declared in August 2017, which was paid subsequent to the end of the quarter on September 28, 2017 in the amount of $18.4 million . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of September 27, 2017 . |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Sep. 27, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for income taxes and interest in the first quarter of fiscal 2018 and 2017 are as follows (in thousands): September 27, September 28, Income taxes, net of refunds $ 18,872 $ 21,992 Interest, net of amounts capitalized 3,575 2,781 Non-cash investing and financing activities for the first quarter of fiscal 2018 and 2017 are as follows (in thousands): September 27, September 28, Retirement of fully depreciated assets $ 16,133 $ 2,844 Dividends declared but not paid 18,768 18,982 Accrued capital expenditures 6,387 3,664 Capital lease additions 2,283 1,147 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Sep. 27, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of September 27, 2017 and June 28, 2017 , we have outstanding lease guarantees or are secondarily liable for $63.1 million and $69.0 million , respectively. These amounts represent the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 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 Mac Acquisition LLC, the owner of Romano’s Macaroni Grill restaurants, closed several of its properties for which we are secondarily liable. Based on management’s belief that Mac Acquisition LLC would default on the leases for these closed locations, a liability was established based on an estimate of the obligation associated with these locations of approximately $1.1 million in fiscal 2017. In October 2017, Mac Acquisition LLC filed for Chapter 11 bankruptcy protection. We believe our liability for the previously closed restaurants remains appropriate. We will continue to monitor the bankruptcy proceedings to assess the likelihood of any incremental losses. Estimating a potential loss or range of loss related to the Romano's Macaroni Grill restaurants operating under bankruptcy protection is not possible at this time due to the shortage of available information and significant uncertainty regarding the outcome of the bankruptcy proceedings. We have not been informed by landlords of Mac Acquisition LLC of any lease defaults other than those relating to locations known to be closed in July 2017. No other liabilities have been recorded as of September 27, 2017 . We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of September 27, 2017 , we had $31.0 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. Liabilities have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 27, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to the end of the quarter, net borrowings of $60.0 million were drawn on the revolving credit facility. Additionally, we repurchased approximately 949,000 shares of our common stock for $30.0 million . On October 13, 2017, we sold our Dutch subsidiary that held all of our equity interest in our Chili's joint venture in Mexico. The sale was completed to our franchise partner in the joint venture, CMR, S.A.B. de C.V. for $18.0 million . The consideration for the shares was in the form of one payment made at closing and a note with payments to be made over 71 months. We are evaluating the fair value of this note to determine the appropriate gain or loss that will be recorded in the second quarter. Subsequent to the end of the quarter, we closed nine underperforming Chili's restaurants located in Alberta, Canada based on management’s determination that the restaurants will not meet our required return metrics. We are in the process of negotiating lease termination costs and expect to record these charges in the second quarter of fiscal 2018. We will continue to operate the remaining five company-owned Chili's located in Canada. |
EFFECT OF NEW ACCOUNTING STANDA
EFFECT OF NEW ACCOUNTING STANDARDS | 3 Months Ended |
Sep. 27, 2017 | |
Effect of New Accounting Standards [Abstract] | |
EFFECT OF NEW ACCOUNTING STANDARDS | 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 not to exceed the carrying amount of goodwill. 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 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended September 27, 2017 September 28, 2016 Basic weighted average shares outstanding 48,293 54,844 Dilutive stock options 83 246 Dilutive restricted shares 356 486 439 732 Diluted weighted average shares outstanding 48,732 55,576 Awards excluded due to anti-dilutive effect on diluted net income per share 1,414 1,027 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): September 27, June 28, Revolving credit facility $ 425,250 $ 392,250 5.00% notes 350,000 350,000 3.88% notes 300,000 300,000 2.60% notes 250,000 250,000 Capital lease obligations 45,186 45,417 Total long-term debt 1,370,436 1,337,667 Less unamortized debt issuance costs and discounts (7,762 ) (8,189 ) Total long-term debt less unamortized debt issuance costs and discounts 1,362,674 1,329,478 Less current installments (9,015 ) (9,649 ) $ 1,353,659 $ 1,319,829 |
OTHER GAINS AND CHARGES (Tables
OTHER GAINS AND CHARGES (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Other Gains and Charges [Abstract] | |
Schedule Of Other Gains And Charges Table | Other gains and charges consist of the following (in thousands): Thirteen Week Periods Ended September 27, September 28, Restaurant impairment charges $ 7,159 $ — Hurricane-related costs 4,648 — Accelerated depreciation 483 — Restaurant closure charges 238 2,506 Loss on the sale of assets, net 45 — Information technology restructuring — 2,491 Other 581 1,081 $ 13,154 $ 6,078 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands): Thirteen Week Period Ended September 27, 2017 Chili's Maggiano's Other Consolidated Company sales $ 627,604 $ 89,338 $ — $ 716,942 Franchise and other revenues 18,265 4,183 — 22,448 Total revenues 645,869 93,521 — 739,390 Company restaurant expenses (a) 541,346 85,308 147 626,801 Depreciation and amortization 31,804 4,050 2,666 38,520 General and administrative 9,578 1,313 21,467 32,358 Other gains and charges 12,149 (212 ) 1,217 13,154 Total operating costs and expenses 594,877 90,459 25,497 710,833 Operating income (loss) $ 50,992 $ 3,062 $ (25,497 ) $ 28,557 Segment assets $ 1,141,870 $ 157,505 $ 69,250 $ 1,368,625 Equity method investment 10,528 — — 10,528 Payments for property and equipment 18,619 2,456 1,385 22,460 Thirteen Week Period Ended September 28, 2016 Chili's Maggiano's Other Consolidated Company sales $ 648,643 $ 88,767 $ — $ 737,410 Franchise and other revenues 16,915 4,167 — 21,082 Total revenues 665,558 92,934 — 758,492 Company restaurant expenses (a) 555,570 83,585 360 639,515 Depreciation and amortization 32,601 3,886 2,399 38,886 General and administrative 9,930 1,524 21,083 32,537 Other gains and charges 1,926 734 3,418 6,078 Total operating costs and expenses 600,027 89,729 27,260 717,016 Operating income (loss) $ 65,531 $ 3,205 $ (27,260 ) $ 41,476 Payments for property and equipment 18,829 4,896 3,386 27,111 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliation of operating income to income before provision for income taxes: Thirteen Week Periods Ended September 27, 2017 September 28, 2016 Operating income $ 28,557 $ 41,476 Less interest expense (13,884 ) (8,809 ) Plus other, net 476 299 Income before provision for income taxes $ 15,149 $ 32,966 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): September 27, June 28, Property tax $ 21,257 $ 16,566 Insurance 19,298 17,484 Dividends 18,432 16,649 Interest 16,591 7,696 Sales tax 13,397 12,494 Other 41,350 40,626 $ 130,325 $ 111,515 |
Schedule of Other Liabilities | Other liabilities consist of the following (in thousands): September 27, June 28, Straight-line rent $ 58,285 $ 57,464 Insurance 42,625 42,532 Landlord contributions 25,144 26,402 Unfavorable leases 4,595 5,398 Unrecognized tax benefits 3,116 3,116 Other 5,867 6,212 $ 139,632 $ 141,124 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands): September 27, 2017 June 28, 2017 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,639 $ 250,933 $ 249,495 $ 250,480 3.88% Notes $ 298,001 $ 293,307 $ 297,912 $ 286,077 5.00% Notes $ 344,597 $ 346,941 $ 344,405 $ 347,956 |
SUPPLEMENTAL CASH FLOW INFORM24
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Sep. 27, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid for Income Taxes and Interest | Cash paid for income taxes and interest in the first quarter of fiscal 2018 and 2017 are as follows (in thousands): September 27, September 28, Income taxes, net of refunds $ 18,872 $ 21,992 Interest, net of amounts capitalized 3,575 2,781 |
Non-Cash Investing and Financing Activities | Non-cash investing and financing activities for the first quarter of fiscal 2018 and 2017 are as follows (in thousands): September 27, September 28, Retirement of fully depreciated assets $ 16,133 $ 2,844 Dividends declared but not paid 18,768 18,982 Accrued capital expenditures 6,387 3,664 Capital lease additions 2,283 1,147 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Sep. 27, 2017LocationrestaurantCountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of entity restaurants | restaurant | 1,682 |
Number of countries in which entity operates | Country | 32 |
Number of territories in which entity operates | Location | 2 |
BASIS OF PRESENTATION Adjustmen
BASIS OF PRESENTATION Adjustment for New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (1.6) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ (0.03) | |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 1.5 |
Schedule of Weighted Average Nu
Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Basic weighted average shares outstanding | 48,293 | 54,844 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 439 | 732 |
Diluted weighted average shares outstanding | 48,732 | 55,576 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,414 | 1,027 |
Employee Stock Option [Member] | ||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 83 | 246 |
Restricted Stock Units (RSUs) [Member] | ||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 356 | 486 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 27, 2017 | Jun. 28, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 45,186 | $ 45,417 |
Total long-term debt | 1,370,436 | 1,337,667 |
Less unamortized debt issuance costs and discounts | (7,762) | (8,189) |
Total long-term debt less unamortized debt issuance costs and discounts | 1,362,674 | 1,329,478 |
Less current installments | (9,015) | (9,649) |
Long-term debt, less current installments | 1,353,659 | 1,319,829 |
5.00% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 425,250 | $ 392,250 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 27, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Covenant Compliance | We are currently in compliance with all financial covenants. |
$1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Net Borrowings on revolving credit facility | $ 33 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Line of Credit Facility, Interest Rate During Period | 2.61% |
Debt Instrument, Description of Variable Rate Basis | One month LIBOR |
Line of Credit Facility, Remaining Borrowing Capacity | $ 574.8 |
$890M of the $1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Expiration Date | Sep. 12, 2021 |
$110M of the $1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 12, 2020 |
Maximum [Member] | $1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.00% |
Minimum [Member] | $1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.38% |
London Interbank Offered Rate (LIBOR) [Member] | $1B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.23% |
Other Gains and Charges - Sched
Other Gains and Charges - Schedule of Other Gains and Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Other Gains and Charges [Abstract] | ||
Restaurant impairment charges | $ 7,159 | $ 0 |
Hurricane-related costs | 4,648 | 0 |
Accelerated depreciation | 483 | 0 |
Restaurant closure charges | 238 | 2,506 |
Loss on the sale of assets, net | 45 | 0 |
Information technology restructuring | 0 | 2,491 |
Other | 581 | 1,081 |
Gains And Charges Other | $ 13,154 | $ 6,078 |
Other Gains and Charges - Addit
Other Gains and Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Other Gains and Charges [Abstract] | ||
Restaurant impairment charges | $ 7,159 | $ 0 |
Restaurant closure charges | 238 | 2,506 |
Information technology restructuring | $ 0 | $ 2,491 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 27, 2017 | Sep. 28, 2016 | Jun. 28, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Company sales | $ 716,942 | $ 737,410 | ||
Franchise and other revenues | 22,448 | 21,082 | ||
Total revenues | 739,390 | 758,492 | ||
Company restaurant expenses (a) | [1] | 626,801 | 639,515 | |
Depreciation and amortization | 38,520 | 38,886 | ||
General and administrative | 32,358 | 32,537 | ||
Other gains and charges | 13,154 | 6,078 | ||
Total operating costs and expenses | 710,833 | 717,016 | ||
Operating income | 28,557 | 41,476 | ||
Assets | 1,368,625 | $ 1,403,633 | ||
Equity Method Investments | 10,528 | |||
Payments to Acquire Property, Plant, and Equipment | 22,460 | 27,111 | ||
Chili's Restaurants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 627,604 | 648,643 | ||
Franchise and other revenues | 18,265 | 16,915 | ||
Total revenues | 645,869 | 665,558 | ||
Company restaurant expenses (a) | [1] | 541,346 | 555,570 | |
Depreciation and amortization | 31,804 | 32,601 | ||
General and administrative | 9,578 | 9,930 | ||
Other gains and charges | 12,149 | 1,926 | ||
Total operating costs and expenses | 594,877 | 600,027 | ||
Operating income | 50,992 | 65,531 | ||
Assets | 1,141,870 | |||
Equity Method Investments | 10,528 | |||
Payments to Acquire Property, Plant, and Equipment | 18,619 | 18,829 | ||
Maggiano's Restaurants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 89,338 | 88,767 | ||
Franchise and other revenues | 4,183 | 4,167 | ||
Total revenues | 93,521 | 92,934 | ||
Company restaurant expenses (a) | [1] | 85,308 | 83,585 | |
Depreciation and amortization | 4,050 | 3,886 | ||
General and administrative | 1,313 | 1,524 | ||
Other gains and charges | (212) | 734 | ||
Total operating costs and expenses | 90,459 | 89,729 | ||
Operating income | 3,062 | 3,205 | ||
Assets | 157,505 | |||
Equity Method Investments | 0 | |||
Payments to Acquire Property, Plant, and Equipment | 2,456 | 4,896 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Company sales | 0 | 0 | ||
Franchise and other revenues | 0 | 0 | ||
Total revenues | 0 | 0 | ||
Company restaurant expenses (a) | [1] | 147 | 360 | |
Depreciation and amortization | 2,666 | 2,399 | ||
General and administrative | 21,467 | 21,083 | ||
Other gains and charges | 1,217 | 3,418 | ||
Total operating costs and expenses | 25,497 | 27,260 | ||
Operating income | (25,497) | (27,260) | ||
Assets | 69,250 | |||
Equity Method Investments | 0 | |||
Payments to Acquire Property, Plant, and Equipment | $ 1,385 | $ 3,386 | ||
[1] | (a)Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Segment Reporting, Reconciling Item [Line Items] | ||
Operating income | $ 28,557 | $ 41,476 |
Less interest expense | (13,884) | (8,809) |
Plus other, net | 476 | 299 |
Income before provision for income taxes | $ 15,149 | $ 32,966 |
Accrued and Other Liabilities34
Accrued and Other Liabilities (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 27, 2017 | Jun. 28, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Property tax | $ 21,257 | $ 16,566 |
Insurance | 19,298 | 17,484 |
Dividends | 18,432 | 16,649 |
Interest | 16,591 | 7,696 |
Sales tax | 13,397 | 12,494 |
Other | 41,350 | 40,626 |
Other accrued liabilities | $ 130,325 | $ 111,515 |
Accrued and Other Liabilities35
Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 27, 2017 | Jun. 28, 2017 |
Accrued and Other Liabilities (Other Liabilities) [Abstract] | ||
Straight-line rent | $ 58,285 | $ 57,464 |
Insurance | 42,625 | 42,532 |
Landlord contributions | 25,144 | 26,402 |
Unfavorable leases | 4,595 | 5,398 |
Unrecognized tax benefits | 3,116 | 3,116 |
Other | 5,867 | 6,212 |
Other liabilities | $ 139,632 | $ 141,124 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Schedule of Impairments [Line Items] | ||
Carrying Value Of Impaired Long Lived Assets | $ 6,000 | |
Carrying value of reacquired franchise rights | 1,200 | |
Restaurant impairment charges | 7,159 | $ 0 |
Fair value of impaired long lived assets | 0 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Fair Value Disclosures (Other F
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 27, 2017 | Jun. 28, 2017 |
2.60% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
Long-term Debt | $ 249,639 | $ 249,495 |
Long-term Debt, Fair Value | $ 250,933 | 250,480 |
3.88% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |
Long-term Debt | $ 298,001 | 297,912 |
Long-term Debt, Fair Value | $ 293,307 | 286,077 |
5.00% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Long-term Debt | $ 344,597 | 344,405 |
Long-term Debt, Fair Value | $ 346,941 | $ 347,956 |
Shareholder's Deficit - Additio
Shareholder's Deficit - Additional information (Share Repurchase) (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Payments for repurchase of common stock | $ 41,718 | $ 349,963 |
Other Share Repurchases [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased, shares | 1.3 |
Shareholders' Deficit - Additio
Shareholders' Deficit - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 27, 2017 | Sep. 28, 2016 | Jun. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |||
Increase In Share Repurchase Program | $ 250,000,000 | ||
Stock repurchase program, authorized amount | 4,600,000,000 | ||
Amount available under share repurchase authorizations | $ 324,900,000 | ||
Stock option, granted | 1,200,000 | ||
Stock option, weighted average exercise price | $ 31.22 | ||
Stock option, weighted average fair value | $ 4.45 | ||
Restricted share awards, granted | 415,000 | ||
Restricted share awards, weighted average fair value | $ 31.22 | ||
Payments of dividends | $ 16,978,000 | $ 18,298,000 | |
Percentage increase in quarterly dividend declared | 12.00% | ||
Dividends per share declared | $ 0.38 | $ 0.34 | |
Dividends | $ 18,432,000 | $ 16,649,000 |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information - Cash Paid for Income Taxes and Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes, net of refunds | $ 18,872 | $ 21,992 |
Interest, net of amounts capitalized | $ 3,575 | $ 2,781 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2017 | Sep. 28, 2016 | |
Other Significant Noncash Transactions [Line Items] | ||
Retirement of fully depreciated assets | $ 16,133 | $ 2,844 |
Accrued capital expenditures | 6,387 | 3,664 |
Capital lease additions | 2,283 | 1,147 |
Dividend Declared [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Dividends declared but not paid | $ 18,768 | $ 18,982 |
Contingencies - Additional info
Contingencies - Additional information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 27, 2017 | Jun. 28, 2017 | |
Guarantor Obligations [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 31 | |
Lease Guarantees And Secondary Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 63.1 | $ 69 |
Loss Contingency, Accrual, Current | $ 1.1 | |
Description of Material Contingencies of Parent Company | No other liabilities have been recorded |
Loss Contingencies (Details)
Loss Contingencies (Details) | Sep. 27, 2017LegalMatter |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 27, 2017 | Sep. 27, 2017 | Sep. 28, 2016 | |
Subsequent Event [Line Items] | |||
Payments for repurchase of common stock | $ 41,718 | $ 349,963 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Shares repurchased, shares | 949,000 | ||
Payments for repurchase of common stock | $ 30,000 | ||
Sales price of joint venture | 18,000 | ||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from Lines of Credit | $ 60,000 |
EFFECT OF NEW ACCOUNTING STAN45
EFFECT OF NEW ACCOUNTING STANDARDS ADDITIONAL INFORMATION (Details) $ in Thousands | Jun. 28, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Leases, Future Minimum Payments Due | $ 606,900 |