Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Oct. 16, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CEC | ' |
Entity Registrant Name | 'CEC ENTERTAINMENT INC | ' |
Entity Central Index Key | '0000813920 | ' |
Current Fiscal Year End Date | '--12-29 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 17,551,269 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $21,384 | $19,636 |
Accounts receivable | 17,462 | 26,411 |
Inventories | 20,595 | 18,957 |
Prepaid expenses | 18,445 | 18,171 |
Deferred tax asset | 2,884 | 2,884 |
Total current assets | 80,770 | 86,059 |
Property and equipment, net | 695,020 | 703,956 |
Other noncurrent assets | 11,058 | 11,791 |
Total assets | 786,848 | 801,806 |
Current liabilities: | ' | ' |
Capital lease obligations, current portion | 1,011 | 1,060 |
Accounts payable | 30,640 | 32,678 |
Accrued expenses | 39,473 | 35,517 |
Unearned revenues | 10,745 | 11,779 |
Dividends payable | 4,340 | 312 |
Accrued interest | 1,107 | 1,794 |
Total current liabilities | 87,316 | 83,140 |
Capital lease obligations, less current portion | 20,646 | 21,656 |
Revolving credit facility borrowings | 348,500 | 389,500 |
Deferred rent liability | 58,745 | 57,196 |
Deferred landlord contributions | 26,218 | 27,092 |
Deferred tax liability | 62,557 | 62,931 |
Accrued insurance | 13,863 | 11,980 |
Other noncurrent liabilities | 5,056 | 5,037 |
Total liabilities | 622,901 | 658,532 |
Stockholders’ equity: | ' | ' |
Common stock, $0.10 par value; authorized 100,000,000 shares; 61,892,493 and 61,696,806 shares issued, respectively | 6,189 | 6,170 |
Capital in excess of par value | 451,570 | 447,449 |
Retained earnings | 858,253 | 823,012 |
Accumulated other comprehensive income | 5,284 | 5,880 |
Less treasury stock, at cost; 44,341,224 and 43,814,979 shares, respectively | -1,157,349 | -1,139,237 |
Total stockholders’ equity | 163,947 | 143,274 |
Total liabilities and stockholders’ equity | $786,848 | $801,806 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 61,892,493 | 61,696,806 |
Treasury stock, shares | 44,341,224 | 43,814,979 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
REVENUES: | ' | ' | ' | ' |
Food and beverage sales | $87,170 | $90,406 | $289,488 | $291,190 |
Entertainment and merchandise sales | 107,629 | 105,223 | 349,957 | 331,021 |
Total Company store sales | 194,799 | 195,629 | 639,445 | 622,211 |
Franchise fees and royalties | 1,107 | 921 | 3,708 | 3,512 |
Total revenues | 195,906 | 196,550 | 643,153 | 625,723 |
Company store operating costs: | ' | ' | ' | ' |
Cost of food and beverage (exclusive of items shown separately below) | 20,850 | 22,627 | 69,815 | 71,863 |
Cost of entertainment and merchandise (exclusive of items shown separately below) | 6,976 | 7,703 | 23,256 | 23,848 |
Total cost of food, beverage, entertainment and merchandise | 27,826 | 30,330 | 93,071 | 95,711 |
Labor expenses | 56,469 | 55,139 | 174,409 | 170,192 |
Depreciation and amortization | 19,603 | 19,872 | 58,666 | 58,702 |
Rent expense | 19,672 | 19,526 | 58,648 | 57,441 |
Other store operating expenses | 34,401 | 33,501 | 98,775 | 95,767 |
Total Company store operating costs | 157,971 | 158,368 | 483,569 | 477,813 |
Other costs and expenses: | ' | ' | ' | ' |
Advertising expense | 10,644 | 9,966 | 32,960 | 26,947 |
General and administrative expenses | 13,529 | 12,931 | 42,950 | 39,635 |
Asset impairments | 537 | 818 | 763 | 3,541 |
Total operating costs and expenses | 182,681 | 182,083 | 560,242 | 547,936 |
Operating income | 13,225 | 14,467 | 82,911 | 77,787 |
Interest expense | 1,278 | 2,031 | 5,509 | 6,085 |
Income before income taxes | 11,947 | 12,436 | 77,402 | 71,702 |
Income taxes | 4,508 | 4,642 | 29,467 | 27,525 |
Net income | $7,439 | $7,794 | $47,935 | $44,177 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.44 | $0.45 | $2.80 | $2.51 |
Diluted (in dollars per share) | $0.43 | $0.45 | $2.78 | $2.50 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 16,958 | 17,397 | 17,128 | 17,595 |
Diluted (in shares) | 17,121 | 17,473 | 17,238 | 17,652 |
Cash dividends declared per share (in dollars per share) | $0.24 | $0.22 | $0.72 | $0.66 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net income | $7,439 | $7,794 | $47,935 | $44,177 |
Components of other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 225 | 767 | -596 | 712 |
Total components of other comprehensive income (loss), net of tax | 225 | 767 | -596 | 712 |
Comprehensive income | $7,664 | $8,561 | $47,339 | $44,889 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $47,935 | $44,177 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 59,269 | 59,257 |
Deferred income taxes | -477 | 4,551 |
Stock-based compensation expense | 6,469 | 5,630 |
Amortization of landlord contributions | -1,729 | -1,653 |
Amortization of deferred debt financing costs | 337 | 367 |
Loss on asset disposals, net | 704 | 1,797 |
Asset impairments | 763 | 3,541 |
Other adjustments | 75 | 266 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 4,246 | 1,957 |
Inventories | -1,665 | 872 |
Prepaid expenses | 55 | -4,905 |
Accounts payable | -2,928 | -687 |
Accrued expenses | 5,325 | 5,039 |
Unearned revenues | -1,029 | -656 |
Accrued interest | -637 | -623 |
Income taxes payable | 4,105 | -2,563 |
Deferred rent liability | 1,468 | 2,550 |
Deferred landlord contributions | 1,469 | 323 |
Net cash provided by operating activities | 123,755 | 119,240 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -54,446 | -75,831 |
Proceeds from sale of property and equipment | 2,260 | 474 |
Other investing activities | 678 | 0 |
Net cash used in investing activities | -51,508 | -75,357 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net repayments on revolving credit facility | -41,000 | -15,200 |
Payments on capital lease obligations | -697 | -590 |
Dividends paid | -8,445 | -11,829 |
Excess tax benefit realized from stock-based compensation | 249 | 619 |
Restricted stock returned for payment of taxes | -2,191 | -2,629 |
Purchases of treasury stock | -18,112 | -14,353 |
Net cash used in financing activities | -70,196 | -43,982 |
Effect of foreign exchange rate changes on cash | -303 | 119 |
Change in cash and cash equivalents | 1,748 | 20 |
Cash and cash equivalents at beginning of period | 19,636 | 18,673 |
Cash and cash equivalents at end of period | 21,384 | 18,693 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Interest paid | 5,713 | 6,398 |
Income taxes paid, net | 25,616 | 24,812 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Accrued construction costs | 3,904 | 3,214 |
Dividends payable | 4,904 | 4,381 |
Capital lease obligations | $740 | $10,689 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 29, 2013 | ||
Accounting Policies [Abstract] | ' | |
Description of Business and Summary of Significant Accounting Policies: | ' | |
Description of Business and Summary of Significant Accounting Policies: | ||
Description of Business | ||
The use of the terms “CEC Entertainment,” “Company,” “we,” “us” and “our” throughout these unaudited notes to the interim Consolidated Financial Statements refer to CEC Entertainment, Inc. and its subsidiaries. | ||
All of our stores utilize a consistent restaurant-entertainment format that features both family dining and entertainment areas with the same general mix of food, beverages, entertainment and merchandise. The economic characteristics, products and services, preparation processes, distribution methods and types of customers are substantially similar for each of our stores. Therefore, we aggregate each store’s operating performance into one reportable segment for financial reporting purposes. | ||
Basis of Presentation | ||
Our Consolidated Financial Statements include the accounts of the Company and the International Association of CEC Entertainment, Inc. (the “Association”), a variable interest entity in which we have a controlling financial interest. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements. | ||
Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million and $0.5 million for the three months ended September 29, 2013 and September 30, 2012, respectively, and $2.0 million and $1.6 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. | ||
The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudted Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Interim Financial Statements | ||
The accompanying Consolidated Financial Statements as of September 29, 2013 and for the three and nine months ended September 29, 2013 and September 30, 2012 are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and, consequently, do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the Company’s Consolidated Financial Statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of its consolidated results of operations, financial position and cash flows as of the dates and for the periods presented in accordance with GAAP and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). | ||
Consolidated results of operations for interim periods are not necessarily indicative of results for the full year. The unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the SEC on February 21, 2013. | ||
Fair Value Disclosures | ||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: | ||
Level 1 – | inputs are quoted prices available for identical assets or liabilities in active markets. | |
Level 2 – | inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; or other inputs that are observable or can be corroborated by observable market data. | |
Level 3 – | inputs are unobservable and reflect our own assumptions. | |
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and revolving credit facility obligations. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of borrowings under our revolving credit facility approximates fair value because the interest rates are adjusted regularly based on current market conditions. We may also adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. The fair values of our long-lived assets held and used are determined using Level 3 inputs based on the estimated discounted future cash flows of the respective store over its expected remaining useful life or lease term. Due to uncertainties in the estimates and assumptions used, actual results could differ from the estimated fair values. See Note 2 “Asset Impairments” for the fair value disclosures of stores we have impaired. | ||
During the three and nine months ended September 29, 2013 and September 30, 2012, there were no significant transfers among level 1, 2 or 3 fair value determinations. | ||
Recently Issued Accounting Guidance | ||
Accounting Guidance Adopted: In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-2, Testing Indefinite-Lived Intangible Assets for Impairment. This amendment allows an entity to first assess relevant qualitative factors in order to determine whether it is necessary to perform the two-step quantitative impairment test for indefinite-lived intangible assets. Unless the entity determines, based on the qualitative assessment, that it is more likely than not that the asset is impaired, it would not be required to calculate the fair value of an indefinite-lived intangible asset in connection with the impairment test. The adoption of this amendment during the first quarter of 2013 did not have a significant impact on our impairment analysis. | ||
In February 2013, the FASB issued ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This amendment requires an entity to provide the effects on net income of significant reclassifications out of accumulated other comprehensive income by component on a prospective basis. The adoption of this amendment during the first quarter of 2013 required additional disclosure but did not have an impact on our Consolidated Financial Statements. | ||
Accounting Guidance Not Yet Adopted: In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. We believe the adoption of this amendment will not have a significant impact on our Consolidated Financial Statements. |
Asset_Impairments
Asset Impairments | 9 Months Ended | |
Sep. 29, 2013 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |
Asset Impairments: | ' | |
Asset Impairments: | ||
During the three months ended September 29, 2013, we recognized an asset impairment charge of $0.5 million primarily related to one store, which was previously impaired. During the three months ended September 30, 2012, we recognized an asset impairment charge of $0.8 million related to two stores, of which one store was previously impaired. During the nine months ended September 29, 2013, we recognized asset impairment charges of $0.8 million primarily related to two stores, of which one store was previously impaired. During the nine months ended September 30, 2012, we recognized asset impairment charges of $3.5 million related to 12 stores, of which seven stores were previously impaired. These impairment charges were the result of declines in the stores’ financial performance primarily due to various competitive and economic factors in the markets in which the stores are located. We continue to operate all but one of these stores. | ||
As of September 29, 2013 and September 30, 2012, the aggregate carrying value of the property and equipment at the impaired stores, after the impairment charges, was $0.9 million and $4.5 million, respectively. | ||
Asset impairments represent adjustments we recognize to write down the carrying amount of the property and equipment at our stores to their estimated fair value, as the store’s operations are not expected to generate sufficient projected future cash flows to recover the current net book value of its long-lived assets. We estimate the fair value of a store’s long-lived assets (property and equipment) by discounting the expected future cash flows of the store using a weighted average cost of capital commensurate with the risk. Accordingly, the fair value measurement of the stores for which we recognized an impairment charge is classified within Level 3 of the fair value hierarchy. The following estimates and assumptions used in the discounted cash flow analysis impact the fair value of a store’s long-lived assets: | ||
• | Discount rate based on our weighted average cost of capital and the risk-free rate of return; | |
• | Sales growth rates and cash flow margins; | |
• | Strategic plans, including projected capital spending and intent to exercise lease renewal options for the store; | |
• | Salvage values; and | |
• | Other risks and qualitative factors specific to the asset or market conditions in which the asset is located at the time the assessment was made. | |
During the first nine months of 2013, the average discount rate, average sales growth rate and average cash flow margin used for impaired stores were 7%, 0% and 12%, respectively. We believe our assumptions in calculating the fair value of our long-lived assets are similar to those used by other marketplace participants. If actual results are not consistent with our estimates and assumptions, we may be exposed to additional impairment charges, which could be material to our Consolidated Statements of Earnings. |
Revolving_Credit_Facility
Revolving Credit Facility | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Revolving Credit Facility: | ' | ||||||||
Revolving Credit Facility: | |||||||||
September 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Revolving credit facility borrowings | $ | 348,500 | $ | 389,500 | |||||
The revolving credit facility is a senior unsecured credit commitment of $500.0 million that expires on October 28, 2016. The revolving credit facility also includes an accordion feature allowing us, subject to meeting certain conditions and lender approval, to request an increase to the revolving commitment of up to $200.0 million in borrowings at any time. Based on the type of borrowing, the revolving credit facility bears interest at the one month London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 0.875% to 1.625%, determined based on our financial performance and debt levels, or alternatively, the highest of (a) the Prime Rate; (b) the Federal Funds rate plus 0.50%; or (c) one month LIBOR plus 1.0%; plus an applicable margin up to 0.625%, determined based on our financial performance and debt levels. During the nine months ended September 29, 2013, the Prime Rate was 3.25% and the one month LIBOR rate ranged from 0.18% to 0.24%. The revolving credit facility also requires us to pay a commitment fee on a quarterly basis, ranging from 0.15% to 0.30%, depending on our financial performance and debt levels, on any unused portion of the revolving credit facility. All borrowings under the revolving credit facility are unsecured, but we agreed not to pledge any of our existing assets to secure any other future indebtedness. | |||||||||
As of September 29, 2013, we had $10.9 million of letters of credit, issued but undrawn under the revolving credit facility. The weighted average effective interest rate incurred on our borrowings under our revolving credit facility for both the three and nine months ended September 29, 2013 and September 30, 2012 was 1.7%. | |||||||||
The credit agreement for the revolving credit facility also contains certain restrictions and conditions that, among other things, require us to comply with specified financial covenant ratios, including, at the end of any fiscal quarter, a consolidated fixed charge coverage ratio of not less than 1.5 to 1.0 and a consolidated maximum leverage ratio of not greater than 3.0 to 1.0, as defined in the revolving credit facility. Additionally, the terms of the credit agreement for the revolving credit facility do not restrict dividend payments or stock repurchases by us as long as we do not exceed a consolidated leverage ratio (as defined in the revolving credit facility) of 2.75 to 1.0 on a pro forma basis, for the four fiscal quarters then most recently ended, immediately after giving effect to such payments or repurchases. As of September 29, 2013, we were in compliance with all of these restrictions and covenants. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes: | ' |
Income Taxes: | |
Our effective income tax rate for the three months ended September 29, 2013 was 37.7% compared to 37.3% for the three months ended September 30, 2012. Our effective income tax rate for the nine months ended September 29, 2013 was 38.1% compared to 38.4% for the nine months ended September 30, 2012. Our liability for uncertain tax positions (excluding interest and penalties) was $3.2 million and $2.9 million as of September 29, 2013 and December 30, 2012, respectively, and if recognized would decrease our provision for income taxes by $2.3 million. Within the next twelve months, we could settle or otherwise conclude certain ongoing income tax audits. As such, it is reasonably possible that the liability for uncertain tax positions could decrease by as much as $1.6 million as a result of settlements with certain taxing authorities within the next twelve months. | |
The total accrued interest and penalties related to unrecognized tax benefits as of September 29, 2013 and December 30, 2012, was $2.0 million and $2.6 million, respectively. On the Consolidated Balance Sheets, we include current interest related to unrecognized tax benefits in “Accrued interest,” current penalties in “Accrued expenses” and noncurrent accrued interest and penalties in “Other noncurrent liabilities.” |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share: | ' | ||||||||||||||||
Earnings Per Share: | |||||||||||||||||
Basic earnings per share (“EPS”) represents net income divided by the weighted average number of common shares outstanding during the period. Common shares outstanding consist of shares of our common stock and certain unvested shares of restricted stock containing nonforfeitable dividend rights. As of March 31, 2013, all shares of restricted stock with nonforfeitable dividend rights had vested. Diluted EPS represents net income divided by the basic weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares represent the incremental common shares issuable upon the vesting of unvested shares of restricted stock. The dilutive effect of potential common shares is determined using the treasury stock method, whereby unamortized stock-based compensation cost of unvested restricted stock, and any associated excess tax benefits are assumed to be used to repurchase our common stock at the average market price during the period. | |||||||||||||||||
The following table sets forth the computation of basic and diluted EPS: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 7,439 | $ | 7,794 | $ | 47,935 | $ | 44,177 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average common shares outstanding | 16,958 | 17,397 | 17,128 | 17,595 | |||||||||||||
Potential common shares for restricted stock | 163 | 76 | 110 | 57 | |||||||||||||
Diluted weighted average common shares outstanding | 17,121 | 17,473 | 17,238 | 17,652 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.44 | $ | 0.45 | $ | 2.8 | $ | 2.51 | |||||||||
Diluted | $ | 0.43 | $ | 0.45 | $ | 2.78 | $ | 2.5 | |||||||||
StockBased_Compensation_Arrang
Stock-Based Compensation Arrangements | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation Arrangements: | ' | ||||||||||||||||
Stock-Based Compensation Arrangements: | |||||||||||||||||
Our stock-based compensation plans permit us to grant awards of restricted stock to our employees and non-employee directors. Certain of these awards are subject to performance-based criteria. The fair value of all stock-based awards, less estimated forfeitures, if any, and portions capitalized as described below, is recognized as stock-based compensation expense in “General and administrative expenses” in the Consolidated Financial Statements over the period that services are required to be provided in exchange for the award. | |||||||||||||||||
The following table summarizes stock-based compensation expense and associated tax benefit recognized in the Consolidated Financial Statements: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Stock-based compensation costs | $ | 2,288 | $ | 1,958 | $ | 6,603 | $ | 5,725 | |||||||||
Portion capitalized as property and equipment(1) | (44 | ) | (33 | ) | (134 | ) | (95 | ) | |||||||||
Stock-based compensation expense recognized | $ | 2,244 | $ | 1,925 | $ | 6,469 | $ | 5,630 | |||||||||
Tax benefit recognized from stock-based compensation awards | $ | 77 | $ | — | $ | 249 | $ | 619 | |||||||||
__________________ | |||||||||||||||||
-1 | We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets. | ||||||||||||||||
As of September 29, 2013, unrecognized pre-tax stock-based compensation cost of $14.7 million related to restricted stock awards granted will be recognized over a weighted average remaining vesting period of 1.7 years. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
The following table summarizes restricted stock activity during the nine months ended September 29, 2013: | |||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested restricted stock awards, December 30, 2012 | 547,077 | $ | 35.94 | ||||||||||||||
Granted | 291,245 | $ | 30.95 | ||||||||||||||
Vested | (221,751 | ) | $ | 33.69 | |||||||||||||
Forfeited | (24,093 | ) | $ | 35.73 | |||||||||||||
Unvested restricted stock awards, September 29, 2013 | 592,478 | $ | 34.34 | ||||||||||||||
During the nine months ended September 29, 2013, employees and non-employee directors tendered 71,465 shares of their common stock to satisfy tax withholding requirements on the vesting of their restricted stock at an average price per share of $30.66. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||
Stockholders’ Equity: | ' | ||||||||||||||||||||||||||||||
Stockholders’ Equity: | |||||||||||||||||||||||||||||||
The following table summarizes the changes in stockholders’ equity during the first nine months of 2013: | |||||||||||||||||||||||||||||||
Common Stock | Capital In | Retained | Accumulated | Treasury Stock | |||||||||||||||||||||||||||
Excess of | Earnings | Other | |||||||||||||||||||||||||||||
Par Value | Comprehensive | ||||||||||||||||||||||||||||||
Shares | Amount | Income | Shares | Amount | Total | ||||||||||||||||||||||||||
(in thousands, except share information) | |||||||||||||||||||||||||||||||
Balance at December 30, 2012 | 61,696,806 | $ | 6,170 | $ | 447,449 | $ | 823,012 | $ | 5,880 | 43,814,979 | $ | (1,139,237 | ) | $ | 143,274 | ||||||||||||||||
Net income | — | — | — | 47,935 | — | — | — | 47,935 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (596 | ) | — | — | (596 | ) | |||||||||||||||||||||
Stock-based compensation costs | — | — | 6,603 | — | — | — | — | 6,603 | |||||||||||||||||||||||
Restricted stock issued, net of forfeitures | 267,152 | 27 | (27 | ) | — | — | — | — | — | ||||||||||||||||||||||
Tax shortfall from restricted stock, net | — | — | (272 | ) | — | — | — | — | (272 | ) | |||||||||||||||||||||
Restricted stock returned for taxes | (71,465 | ) | (8 | ) | (2,183 | ) | — | — | — | — | (2,191 | ) | |||||||||||||||||||
Repurchase of treasury shares | — | — | — | — | — | 526,245 | (18,112 | ) | (18,112 | ) | |||||||||||||||||||||
Dividends declared | — | — | — | (12,694 | ) | — | — | — | (12,694 | ) | |||||||||||||||||||||
Balance at September 29, 2013 | 61,892,493 | $ | 6,189 | $ | 451,570 | $ | 858,253 | $ | 5,284 | 44,341,224 | $ | (1,157,349 | ) | $ | 163,947 | ||||||||||||||||
Cash Dividends | |||||||||||||||||||||||||||||||
During the nine months ended September 29, 2013 and September 30, 2012, we declared cash dividends to common stockholders of $12.7 million and $11.9 million, respectively. On October 29, 2013, our Board of Directors ("Board") approved a 13% increase in the Company's quarterly cash dividend and declared a cash dividend of $0.27 per share, which will be paid on December 27, 2013 to stockholders of record on December 5, 2013. | |||||||||||||||||||||||||||||||
Stock Repurchase Program | |||||||||||||||||||||||||||||||
On April 30, 2013, the Board authorized a $100 million increase to our existing Board approved stock repurchase program. | |||||||||||||||||||||||||||||||
During the nine months ended September 29, 2013, we repurchased 526,245 shares of our common stock at an average price of $34.42 per share for an aggregate purchase price of $18.1 million. As of September 29, 2013, $128.9 million remained available for us to repurchase shares of our common stock in the future, under our stock repurchase program as most recently amended April 30, 2013. | |||||||||||||||||||||||||||||||
Our stock repurchase program does not have an expiration date, and the pace of our repurchase activity will depend on factors such as our working capital needs, our debt repayment obligations, the market price of our common stock and economic and market conditions. Our share repurchases may be performed from time to time through open market purchases, accelerated share repurchases or in privately negotiated transactions. Although there are no current plans to modify the implementation of our stock repurchase program, our Board may elect to accelerate, expand, suspend, delay or discontinue the program at any time. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 29, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
Our Consolidated Financial Statements include the accounts of the Company and the International Association of CEC Entertainment, Inc. (the “Association”), a variable interest entity in which we have a controlling financial interest. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements. | ||
Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million and $0.5 million for the three months ended September 29, 2013 and September 30, 2012, respectively, and $2.0 million and $1.6 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. | ||
The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudted Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Interim Financial Statements | ||
The accompanying Consolidated Financial Statements as of September 29, 2013 and for the three and nine months ended September 29, 2013 and September 30, 2012 are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and, consequently, do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the Company’s Consolidated Financial Statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of its consolidated results of operations, financial position and cash flows as of the dates and for the periods presented in accordance with GAAP and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). | ||
Consolidated results of operations for interim periods are not necessarily indicative of results for the full year. The unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the SEC on February 21, 2013. | ||
Fair Value Disclosures | ' | |
Fair Value Disclosures | ||
Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: | ||
Level 1 – | inputs are quoted prices available for identical assets or liabilities in active markets. | |
Level 2 – | inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; or other inputs that are observable or can be corroborated by observable market data. | |
Level 3 – | inputs are unobservable and reflect our own assumptions. | |
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and revolving credit facility obligations. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of borrowings under our revolving credit facility approximates fair value because the interest rates are adjusted regularly based on current market conditions. We may also adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. The fair values of our long-lived assets held and used are determined using Level 3 inputs based on the estimated discounted future cash flows of the respective store over its expected remaining useful life or lease term. Due to uncertainties in the estimates and assumptions used, actual results could differ from the estimated fair values. See Note 2 “Asset Impairments” for the fair value disclosures of stores we have impaired. | ||
During the three and nine months ended September 29, 2013 and September 30, 2012, there were no significant transfers among level 1, 2 or 3 fair value determinations. | ||
Recently Issued Accounting Guidance | ' | |
Recently Issued Accounting Guidance | ||
Accounting Guidance Adopted: In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-2, Testing Indefinite-Lived Intangible Assets for Impairment. This amendment allows an entity to first assess relevant qualitative factors in order to determine whether it is necessary to perform the two-step quantitative impairment test for indefinite-lived intangible assets. Unless the entity determines, based on the qualitative assessment, that it is more likely than not that the asset is impaired, it would not be required to calculate the fair value of an indefinite-lived intangible asset in connection with the impairment test. The adoption of this amendment during the first quarter of 2013 did not have a significant impact on our impairment analysis. | ||
In February 2013, the FASB issued ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This amendment requires an entity to provide the effects on net income of significant reclassifications out of accumulated other comprehensive income by component on a prospective basis. The adoption of this amendment during the first quarter of 2013 required additional disclosure but did not have an impact on our Consolidated Financial Statements. | ||
Accounting Guidance Not Yet Adopted: In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. We believe the adoption of this amendment will not have a significant impact on our Consolidated Financial Statements. | ||
Property, Plant and Equipment, Impairment Policy | ' | |
Asset impairments represent adjustments we recognize to write down the carrying amount of the property and equipment at our stores to their estimated fair value, as the store’s operations are not expected to generate sufficient projected future cash flows to recover the current net book value of its long-lived assets. We estimate the fair value of a store’s long-lived assets (property and equipment) by discounting the expected future cash flows of the store using a weighted average cost of capital commensurate with the risk. Accordingly, the fair value measurement of the stores for which we recognized an impairment charge is classified within Level 3 of the fair value hierarchy. The following estimates and assumptions used in the discounted cash flow analysis impact the fair value of a store’s long-lived assets: | ||
• | Discount rate based on our weighted average cost of capital and the risk-free rate of return; | |
• | Sales growth rates and cash flow margins; | |
• | Strategic plans, including projected capital spending and intent to exercise lease renewal options for the store; | |
• | Salvage values; and | |
• | Other risks and qualitative factors specific to the asset or market conditions in which the asset is located at the time the assessment was made. | |
During the first nine months of 2013, the average discount rate, average sales growth rate and average cash flow margin used for impaired stores were 7%, 0% and 12%, respectively. We believe our assumptions in calculating the fair value of our long-lived assets are similar to those used by other marketplace participants. If actual results are not consistent with our estimates and assumptions, we may be exposed to additional impairment charges, which could be material to our Consolidated Statements of Earnings. | ||
Earnings Per Share | ' | |
Basic earnings per share (“EPS”) represents net income divided by the weighted average number of common shares outstanding during the period. Common shares outstanding consist of shares of our common stock and certain unvested shares of restricted stock containing nonforfeitable dividend rights. As of March 31, 2013, all shares of restricted stock with nonforfeitable dividend rights had vested. Diluted EPS represents net income divided by the basic weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares represent the incremental common shares issuable upon the vesting of unvested shares of restricted stock. The dilutive effect of potential common shares is determined using the treasury stock method, whereby unamortized stock-based compensation cost of unvested restricted stock, and any associated excess tax benefits are assumed to be used to repurchase our common stock at the average market price during the period. |
Revolving_Credit_Facility_Tabl
Revolving Credit Facility (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Revolving Credit Facility | ' | ||||||||
September 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Revolving credit facility borrowings | $ | 348,500 | $ | 389,500 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of EPS, Basic and Diluted | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted EPS: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 7,439 | $ | 7,794 | $ | 47,935 | $ | 44,177 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average common shares outstanding | 16,958 | 17,397 | 17,128 | 17,595 | |||||||||||||
Potential common shares for restricted stock | 163 | 76 | 110 | 57 | |||||||||||||
Diluted weighted average common shares outstanding | 17,121 | 17,473 | 17,238 | 17,652 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.44 | $ | 0.45 | $ | 2.8 | $ | 2.51 | |||||||||
Diluted | $ | 0.43 | $ | 0.45 | $ | 2.78 | $ | 2.5 | |||||||||
StockBased_Compensation_Arrang1
Stock-Based Compensation Arrangements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Stock-Based Compensation Expense and Associated Tax Benefit Recognized | ' | ||||||||||||||||
The following table summarizes stock-based compensation expense and associated tax benefit recognized in the Consolidated Financial Statements: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Stock-based compensation costs | $ | 2,288 | $ | 1,958 | $ | 6,603 | $ | 5,725 | |||||||||
Portion capitalized as property and equipment(1) | (44 | ) | (33 | ) | (134 | ) | (95 | ) | |||||||||
Stock-based compensation expense recognized | $ | 2,244 | $ | 1,925 | $ | 6,469 | $ | 5,630 | |||||||||
Tax benefit recognized from stock-based compensation awards | $ | 77 | $ | — | $ | 249 | $ | 619 | |||||||||
__________________ | |||||||||||||||||
-1 | We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets. | ||||||||||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||||||
The following table summarizes restricted stock activity during the nine months ended September 29, 2013: | |||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested restricted stock awards, December 30, 2012 | 547,077 | $ | 35.94 | ||||||||||||||
Granted | 291,245 | $ | 30.95 | ||||||||||||||
Vested | (221,751 | ) | $ | 33.69 | |||||||||||||
Forfeited | (24,093 | ) | $ | 35.73 | |||||||||||||
Unvested restricted stock awards, September 29, 2013 | 592,478 | $ | 34.34 | ||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||
Summary of Changes in Stockholders' Equity | ' | ||||||||||||||||||||||||||||||
The following table summarizes the changes in stockholders’ equity during the first nine months of 2013: | |||||||||||||||||||||||||||||||
Common Stock | Capital In | Retained | Accumulated | Treasury Stock | |||||||||||||||||||||||||||
Excess of | Earnings | Other | |||||||||||||||||||||||||||||
Par Value | Comprehensive | ||||||||||||||||||||||||||||||
Shares | Amount | Income | Shares | Amount | Total | ||||||||||||||||||||||||||
(in thousands, except share information) | |||||||||||||||||||||||||||||||
Balance at December 30, 2012 | 61,696,806 | $ | 6,170 | $ | 447,449 | $ | 823,012 | $ | 5,880 | 43,814,979 | $ | (1,139,237 | ) | $ | 143,274 | ||||||||||||||||
Net income | — | — | — | 47,935 | — | — | — | 47,935 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (596 | ) | — | — | (596 | ) | |||||||||||||||||||||
Stock-based compensation costs | — | — | 6,603 | — | — | — | — | 6,603 | |||||||||||||||||||||||
Restricted stock issued, net of forfeitures | 267,152 | 27 | (27 | ) | — | — | — | — | — | ||||||||||||||||||||||
Tax shortfall from restricted stock, net | — | — | (272 | ) | — | — | — | — | (272 | ) | |||||||||||||||||||||
Restricted stock returned for taxes | (71,465 | ) | (8 | ) | (2,183 | ) | — | — | — | — | (2,191 | ) | |||||||||||||||||||
Repurchase of treasury shares | — | — | — | — | — | 526,245 | (18,112 | ) | (18,112 | ) | |||||||||||||||||||||
Dividends declared | — | — | — | (12,694 | ) | — | — | — | (12,694 | ) | |||||||||||||||||||||
Balance at September 29, 2013 | 61,892,493 | $ | 6,189 | $ | 451,570 | $ | 858,253 | $ | 5,284 | 44,341,224 | $ | (1,157,349 | ) | $ | 163,947 | ||||||||||||||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Contributions from franchisees to advertising and media funds | $0.60 | $0.50 | $2 | $1.60 |
Asset_Impairments_Additional_I
Asset Impairments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Store | Store | Store | Store | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Asset impairment charge | $537,000 | $818,000 | $763,000 | $3,541,000 |
Number of stores impaired | 1 | 2 | 2 | 12 |
Number Of Stores Previously Impaired | 1 | 1 | 1 | 7 |
Number of stores discontinued to operate | ' | ' | 1 | ' |
Carrying value of impaired assets | $900,000 | $4,500,000 | $900,000 | $4,500,000 |
Average discount rate | ' | ' | 7.00% | ' |
Average sales growth rate | ' | ' | 0.00% | ' |
Average cash flow margin | ' | ' | 0.12 | ' |
Revolving_Credit_Facility_Addi
Revolving Credit Facility - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Oct. 28, 2011 | Sep. 29, 2013 | Sep. 29, 2013 | Oct. 28, 2011 | Sep. 29, 2013 | Sep. 29, 2013 | Oct. 28, 2011 | Sep. 29, 2013 | Oct. 28, 2011 | Oct. 28, 2011 | |
2011 Revolving Credit Facility | 2011 Revolving Credit Facility | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Scenario One | Scenario Two | ||||||
2011 Revolving Credit Facility | 2011 Revolving Credit Facility | 2011 Revolving Credit Facility | 2011 Revolving Credit Facility | 2011 Revolving Credit Facility | 2011 Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility borrowings | $348,500,000 | ' | $348,500,000 | ' | $389,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity of revolving credit facility | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility maturity date | ' | ' | ' | ' | ' | 28-Oct-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity under revolving credit facility | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR applicable margin | ' | ' | ' | ' | ' | ' | ' | ' | 0.88% | ' | ' | 1.63% | ' | ' | 1.00% |
Interest rate in addition to Federal Funds rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' |
Additional margin over LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.63% | ' | ' | ' |
Prime interest rate | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR rate, minimum | ' | ' | ' | ' | ' | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR rate, maximum | ' | ' | ' | ' | ' | ' | 0.24% | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | ' | ' | 0.30% | ' | ' |
Letters of credit, issued but undrawn | ' | ' | ' | ' | ' | ' | $10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average effective interest rate incurred on borrowings | 1.70% | 1.70% | 1.70% | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Maximum leverage ratio for payment of dividends and stock repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75 | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective income tax rate | 37.70% | 37.30% | 38.10% | 38.40% | ' |
Unrecognized tax benefits | $3.20 | ' | $3.20 | ' | $2.90 |
Unrecognized tax benefits that would decrease effective tax rate and provision for income taxes, if recognized | 2.3 | ' | 2.3 | ' | ' |
Expected decrease in unrecognized tax benefits within next twelve months | 1.6 | ' | 1.6 | ' | ' |
Total amount of interest and penalties accrued related to unrecognized tax benefits | $2 | ' | $2 | ' | $2.60 |
Earnings_Per_Share_Computation
Earnings Per Share Computation of EPS, Basic and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $7,439 | $7,794 | $47,935 | $44,177 |
Basic weighted average common shares outstanding | 16,958 | 17,397 | 17,128 | 17,595 |
Potential common shares for restricted stock | 163 | 76 | 110 | 57 |
Diluted weighted average common shares outstanding | 17,121 | 17,473 | 17,238 | 17,652 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.44 | $0.45 | $2.80 | $2.51 |
Diluted (in dollars per share) | $0.43 | $0.45 | $2.78 | $2.50 |
StockBased_Compensation_Arrang2
Stock-Based Compensation Arrangements Stock-Based Compensation Arrangements - Summary of Stock-Based Compensation Expense and Associated Tax Benefit Recognized (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' | ||||
Stock-based compensation costs | $2,288 | $1,958 | $6,603 | $5,725 | ||||
Portion capitalized as property and equipment | -44 | [1] | -33 | [1] | -134 | [1] | -95 | [1] |
Stock-based compensation expense recognized | 2,244 | 1,925 | 6,469 | 5,630 | ||||
Tax benefit recognized from stock-based compensation awards | $77 | $0 | $249 | $619 | ||||
[1] | We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net†in the Consolidated Balance Sheets. |
StockBased_Compensation_Arrang3
Stock-Based Compensation Arrangements Stock-Based Compensation Arrangements - Summary of Restricted Stock Activity (Details) (USD $) | 9 Months Ended |
Sep. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Restricted Shares, Unvested restricted stock awards, December 30, 2012 | 547,077 |
Restricted Shares, Granted | 291,245 |
Restricted Shares, Vested | -221,751 |
Restricted Shares, Forfeited | -24,093 |
Restricted Shares, Unvested restricted stock awards, September 29, 2013 | 592,478 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted Average Grant Date Fair Value, Unvested restricted stock awards, December 30, 2012 | $35.94 |
Weighted Average Grant Date Fair Value, Granted | $30.95 |
Weighted Average Grant Date Fair Value, Vested | $33.69 |
Weighted Average Grant Date Fair Value, Forfeited | $35.73 |
Weighted Average Grant Date Fair Value, Unvested restricted stock awards, September 29, 2013 | $34.34 |
StockBased_Compensation_Arrang4
Stock-Based Compensation Arrangements - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 29, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation cost, pre-tax | $14.70 |
Weighted average remaining vesting period for unrecognized pre-tax stock-based compensation expense, in years | '1 year 8 months 12 days |
Employees And Non-Employee Directors | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares tendered to satisfy tax withholding requirements on vesting of restricted stock | 71,465 |
Average price per share on which shares are tendered to satisfy tax withholding requirements on vesting of restricted stock | $30.66 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 0 Months Ended | |
Apr. 30, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Oct. 29, 2013 | |
Cash Dividends | ||||
Subsequent Event | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Dividends declared to common stockholder | ' | $12,694,000 | $11,900,000 | ' |
Dividend declaration date | ' | ' | ' | 29-Oct-13 |
Percentage Increase in Quarterly Dividend Declared | ' | ' | ' | 13.00% |
Cash dividend declared per share | ' | ' | ' | $0.27 |
Dividend payable date | ' | ' | ' | 27-Dec-13 |
Record date | ' | ' | ' | 5-Dec-13 |
Increase to share repurchase program | 100,000,000 | ' | ' | ' |
Number of shares repurchased | ' | 526,245 | ' | ' |
Average repurchase price per share | ' | $34.42 | ' | ' |
Aggregate purchase price of common stock repurchased | ' | 18,112,000 | ' | ' |
Value of remaining shares to be repurchased | ' | $128,900,000 | ' | ' |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Changes In Stockholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Common Stock, Value, Issued beginning balance | ' | ' | $6,170 | ' |
Capital in excess of par value beginning balance | ' | ' | 447,449 | ' |
Retained earnings beginning balance | ' | ' | 823,012 | ' |
Accumulated other comprehensive income beginning balance | 5,284 | ' | 5,284 | ' |
Treasury stock, value beginning balance | ' | ' | -1,139,237 | ' |
Beginning Balance | ' | ' | 143,274 | ' |
Net income | 7,439 | 7,794 | 47,935 | 44,177 |
Other comprehensive income | 225 | 767 | -596 | 712 |
Stock-based compensation costs | ' | ' | 6,603 | ' |
Tax shortfall from restricted stock, net | ' | ' | -272 | ' |
Restricted stock returned for taxes | ' | ' | -2,191 | ' |
Repurchase of treasury shares (in shares) | ' | ' | 526,245 | ' |
Repurchase of treasury shares | ' | ' | -18,112 | ' |
Dividends declared | ' | ' | -12,694 | -11,900 |
Common Stock, Value, Issued ending balance | 6,189 | ' | 6,189 | ' |
Capital in excess of par value ending balance | 451,570 | ' | 451,570 | ' |
Retained earnings ending balance | 858,253 | ' | 858,253 | ' |
Accumulated other comprehensive income ending balance | ' | ' | 5,880 | ' |
Treasury stock, value ending balance | -1,157,349 | ' | -1,157,349 | ' |
Ending Balance | 163,947 | ' | 163,947 | ' |
Common Stock | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | ' | 61,696,806 | ' |
Common Stock, Value, Issued beginning balance | ' | ' | 6,170 | ' |
Restricted stock issued, net of forfeitures (in shares) | ' | ' | 267,152 | ' |
Restricted stock issued, net of forfeitures | ' | ' | 27 | ' |
Restricted stock returned for taxes (in shares) | ' | ' | -71,465 | ' |
Restricted stock returned for taxes | ' | ' | -8 | ' |
Ending Balance (in shares) | 61,892,493 | ' | 61,892,493 | ' |
Common Stock, Value, Issued ending balance | 6,189 | ' | 6,189 | ' |
Capital In Excess of Par Value | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Capital in excess of par value beginning balance | ' | ' | 447,449 | ' |
Stock-based compensation costs | ' | ' | 6,603 | ' |
Restricted stock issued, net of forfeitures | ' | ' | -27 | ' |
Tax shortfall from restricted stock, net | ' | ' | -272 | ' |
Restricted stock returned for taxes | ' | ' | -2,183 | ' |
Capital in excess of par value ending balance | 451,570 | ' | 451,570 | ' |
Retained Earnings | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Retained earnings beginning balance | ' | ' | 823,012 | ' |
Net income | ' | ' | 47,935 | ' |
Dividends declared | ' | ' | -12,694 | ' |
Retained earnings ending balance | 858,253 | ' | 858,253 | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income beginning balance | 5,284 | ' | 5,284 | ' |
Other comprehensive income | ' | ' | -596 | ' |
Accumulated other comprehensive income ending balance | ' | ' | 5,880 | ' |
Treasury Stock | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | ' | 43,814,979 | ' |
Treasury stock, value beginning balance | ' | ' | -1,139,237 | ' |
Repurchase of treasury shares (in shares) | ' | ' | 526,245 | ' |
Repurchase of treasury shares | ' | ' | -18,112 | ' |
Ending Balance (in shares) | 44,341,224 | ' | 44,341,224 | ' |
Treasury stock, value ending balance | ($1,157,349) | ' | ($1,157,349) | ' |