Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 25, 2014 | Jul. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'DENNYS CORP | ' |
Entity Central Index Key | '0000852772 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 84,937,765 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 25-Jun-14 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 25, 2014 | Dec. 25, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,221 | $2,943 |
Receivables | 13,998 | 17,321 |
Inventories | 2,772 | 2,881 |
Current deferred tax asset | 22,385 | 23,264 |
Prepaid and other current assets | 5,068 | 7,417 |
Total current assets | 45,444 | 53,826 |
Property, net of accumulated depreciation of $252,475 and $255,966, respectively | 108,280 | 105,620 |
Goodwill | 31,451 | 31,451 |
Intangible assets, net | 47,093 | 47,925 |
Deferred financing costs, net | 1,855 | 2,097 |
Noncurrent deferred tax asset | 24,071 | 28,290 |
Other noncurrent assets | 26,000 | 26,568 |
Total assets | 284,194 | 295,777 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 3,375 | 3,000 |
Current maturities of capital lease obligations | 4,047 | 4,150 |
Accounts payable | 14,332 | 14,237 |
Other current liabilities | 45,179 | 52,698 |
Total current liabilities | 66,933 | 74,085 |
Long-term liabilities: | ' | ' |
Long-term debt, less current maturities | 157,875 | 150,000 |
Capital lease obligations, less current maturities | 14,556 | 15,923 |
Liability for insurance claims, less current portion | 18,000 | 18,249 |
Other noncurrent liabilities and deferred credits | 26,844 | 29,089 |
Total long-term liabilities | 217,275 | 213,261 |
Total liabilities | 284,208 | 287,346 |
Commitments and Contingencies | ' | ' |
Shareholders' equity | ' | ' |
Common stock $0.01 par value; authorized - 135,000; June 25, 2014: 105,229 shares issued and 85,803 shares outstanding; December 25, 2013: 105,014 shares issued and 89,232 shares outstanding | 1,053 | 1,050 |
Paid-in capital | 568,939 | 567,505 |
Deficit | -456,242 | -470,946 |
Accumulated other comprehensive loss, net of tax | -17,438 | -16,842 |
Shareholders' equity before treasury stock | 96,312 | 80,767 |
Treasury stock, at cost, 19,426 and 15,782 shares, respectively | -96,326 | -72,336 |
Total shareholders' equity (deficit) | -14 | 8,431 |
Total liabilities and shareholders' equity | $284,194 | $295,777 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 25, 2014 | Dec. 25, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Assets [Abstract] | ' | ' |
Accumulated depreciation | $252,475 | $255,966 |
Shareholders' equity | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 135,000 | 135,000 |
Common stock, shares issued | 105,229 | 105,014 |
Common stock, shares outstanding | 85,803 | 89,232 |
Treasury stock, at cost, shares | 19,426 | 15,782 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Revenue: | ' | ' | ' | ' |
Company restaurant sales | $81,138 | $82,841 | $160,442 | $163,871 |
Franchise and license revenue | 33,476 | 33,730 | 66,092 | 67,190 |
Total operating revenue | 114,614 | 116,571 | 226,534 | 231,061 |
Costs of company restaurant sales: | ' | ' | ' | ' |
Product costs | 21,327 | 21,402 | 41,910 | 42,548 |
Payroll and benefits | 31,978 | 33,220 | 65,077 | 64,766 |
Occupancy | 4,899 | 5,513 | 10,027 | 10,741 |
Other operating expenses | 11,443 | 11,316 | 22,808 | 22,516 |
Total costs of company restaurant sales | 69,647 | 71,451 | 139,822 | 140,571 |
Costs of franchise and license revenue | 10,633 | 11,585 | 21,330 | 22,987 |
General and administrative expenses | 14,068 | 14,085 | 28,184 | 29,244 |
Depreciation and amortization | 5,281 | 5,352 | 10,519 | 10,576 |
Operating (gains), losses and other charges, net | 40 | 1,484 | 462 | 1,618 |
Total operating costs and expenses, net | 99,669 | 103,957 | 200,317 | 204,996 |
Operating income | 14,945 | 12,614 | 26,217 | 26,065 |
Interest expense, net | 2,274 | 2,548 | 4,596 | 5,348 |
Other nonoperating (income) expense, net | -332 | 1,331 | -432 | 1,332 |
Net income before income taxes | 13,003 | 8,735 | 22,053 | 19,385 |
Provision for income taxes | 4,730 | 2,537 | 7,349 | 6,106 |
Net income | $8,273 | $6,198 | $14,704 | $13,279 |
Basic net income per share | $0.10 | $0.07 | $0.17 | $0.14 |
Diluted net income per share | $0.09 | $0.07 | $0.16 | $0.14 |
Basic weighted average shares outstanding | 86,781 | 91,659 | 87,792 | 92,004 |
Diluted weighted average shares outstanding | 88,384 | 93,665 | 89,630 | 94,081 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $8,273 | $6,198 | $14,704 | $13,279 |
Other comprehensive (loss) income, net of tax | ' | ' | ' | ' |
Minimum pension liability adjustment, net of tax expense of $91, $160, $181 and $325 | 140 | 247 | 281 | 501 |
Recognition of unrealized gain (loss) on hedged transactions, net of tax expense (benefit) of $(339), $1,522, $(563) and $1,522 | -528 | 2,348 | -877 | 2,348 |
Other comprehensive income (loss) | -388 | 2,595 | -596 | 2,849 |
Total comprehensive income | $7,885 | $8,793 | $14,108 | $16,128 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Minimum pension liability adjustment, tax expense | $91 | $160 | $181 | $325 |
Unrealized gain (loss) on hedged transactions, tax expense (benefit) | ($339) | $1,522 | ($563) | $1,522 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Paid-in Capital [Member] | (Deficit) [Member] | Accumulated Other Comprehensive Loss, Net [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 25, 2013 | $8,431 | $1,050 | ($72,336) | $567,505 | ($470,946) | ($16,842) |
Balance, treasury stock, at cost, shares at Dec. 25, 2013 | -15,782 | ' | -15,782 | ' | ' | ' |
Balance, common stock, shares issued at Dec. 25, 2013 | 105,014 | 105,014 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 14,704 | ' | ' | ' | 14,704 | ' |
Other comprehensive loss | -596 | ' | ' | ' | ' | -596 |
Share-based compensation on equity classified awards | 1,186 | ' | ' | 1,186 | ' | ' |
Purchase of treasury stock | -23,990 | ' | -23,990 | ' | ' | ' |
Purchase of treasury stock (in shares) | -3,644 | ' | -3,644 | ' | ' | ' |
Issuance of common stock for share-based compensation | 0 | 2 | ' | -2 | ' | ' |
Issuance of common stock for share-based compensation (in shares) | ' | 151 | ' | ' | ' | ' |
Exercise of common stock options | 205 | 1 | ' | 204 | ' | ' |
Exercise of common stock options (in shares) | ' | 64 | ' | ' | ' | ' |
Tax benefit from share-based compensation | 46 | ' | ' | 46 | ' | ' |
Balance at Jun. 25, 2014 | ($14) | $1,053 | ($96,326) | $568,939 | ($456,242) | ($17,438) |
Balance, treasury stock, at cost, shares at Jun. 25, 2014 | -19,426 | ' | -19,426 | ' | ' | ' |
Balance, common stock, shares issued at Jun. 25, 2014 | 105,229 | 105,229 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $14,704 | $13,279 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ' | ' |
Depreciation and amortization | 10,519 | 10,576 |
Operating (gains), losses and other charges, net | 462 | 1,618 |
Amortization of deferred financing costs | 242 | 256 |
(Gain) loss on early extinguishment of debt | -1 | 1,687 |
(Gain) loss on change in the fair value of interest rate caps | 11 | -36 |
Deferred income tax expense | 5,480 | 4,876 |
Share-based compensation | 2,344 | 2,381 |
Decrease (increase) in assets: | ' | ' |
Receivables | 2,996 | 1,986 |
Inventories | 109 | 52 |
Other current assets | 2,349 | 3,718 |
Other assets | -1,383 | -1,105 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable | 2,578 | -2,734 |
Accrued salaries and vacations | -3,274 | -4,783 |
Accrued taxes | 58 | 360 |
Other accrued liabilities | -6,414 | -3,930 |
Other noncurrent liabilities and deferred credits | -848 | -3,879 |
Net cash flows provided by operating activities | 29,932 | 24,322 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -13,526 | -5,387 |
Acquisition of restaurant and real estate | 0 | -3,157 |
Proceeds from disposition of property | 4 | 22 |
Collections on notes receivable | 1,210 | 2,407 |
Issuance of notes receivable | -651 | -757 |
Net cash flows used in investing activities | -12,963 | -6,872 |
Cash flows from financing activities: | ' | ' |
Net revolver borrowings under new credit agreement | 9,750 | 97,500 |
Term loan borrowings under new credit agreement | 0 | 60,000 |
Long-term debt payments | -3,549 | -172,936 |
Proceeds from exercise of stock options | 205 | 1,225 |
Tax withholding on share-based payments | -419 | -464 |
Tax benefit (expense) for share-based compensation | 46 | -172 |
Debt transaction costs | 0 | 366 |
Deferred financing costs | 0 | 1,314 |
Purchase of treasury stock | -23,815 | -10,751 |
Net bank overdrafts | -909 | -1,726 |
Net cash flows used in financing activities | -18,691 | -29,004 |
Decrease in cash and cash equivalents | -1,722 | -11,554 |
Cash and cash equivalents at beginning of period | 2,943 | 13,565 |
Cash and cash equivalents at end of period | $1,221 | $2,011 |
Introduction_and_Basis_of_Pres
Introduction and Basis of Presentation | 6 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Introduction and Basis of Presentation | ' | |||||||||||
Introduction and Basis of Presentation | ||||||||||||
Denny’s Corporation, or Denny’s, is one of America’s largest full-service restaurant chains based on number of restaurants. The following table shows the unit activity for the quarter and two quarters ended June 25, 2014 and June 26, 2013, respectively: | ||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||
Company restaurants, beginning of period | 161 | 164 | 163 | 164 | ||||||||
Units opened | — | — | — | — | ||||||||
Units acquired from franchisees | — | 1 | — | 1 | ||||||||
Units closed | (1 | ) | — | (3 | ) | — | ||||||
End of period | 160 | 165 | 160 | 165 | ||||||||
Franchised and licensed restaurants, beginning of period | 1,535 | 1,525 | 1,537 | 1,524 | ||||||||
Units opened | 3 | 11 | 7 | 18 | ||||||||
Units acquired by Company | — | (1 | ) | — | (1 | ) | ||||||
Units closed | (5 | ) | (10 | ) | (11 | ) | (16 | ) | ||||
End of period | 1,533 | 1,525 | 1,533 | 1,525 | ||||||||
Total restaurants, end of period | 1,693 | 1,690 | 1,693 | 1,690 | ||||||||
Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates, including those for the above-described items, are reasonable. | ||||||||||||
These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 25, 2013 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 25, 2013. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 31, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 25, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Accounting Standards to be Adopted | |
Discontinued Operations | |
ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" | |
In April 2014, the FASB issued ASU 2014-08, which raises the threshold for a disposal to qualify as a discontinued operation and modifies the related disclosure requirements. Under the new guidance, only disposals resulting in a strategic shift that will have a major effect on an entity's operations and financial results will be reported as discontinued operations. ASU 2014-08 also removes the requirement that an entity not have any significant continuing involvement in the operations of the component after disposal to qualify for reporting of the disposal as a discontinued operation. The guidance is effective for annual and interim periods beginning after December 15, 2014 (our fiscal 2015), with early adoption permitted for any disposal transaction not previously reported. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |
Revenue Recognition | |
ASU 2014-09, "Revenue from Contracts with Customers" | |
In May 2014, the FASB issued ASU 2014-09, which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or service to a customer in an amount that reflects the consideration to which a company expects to be entitled. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption, however early adoption is not permitted. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. | |
We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the financial statements as a result of future adoption. |
Receivables
Receivables | 6 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Receivables | ' | |||||||
Receivables | ||||||||
Receivables were comprised of the following: | ||||||||
June 25, 2014 | December 25, 2013 | |||||||
(In thousands) | ||||||||
Current assets: | ||||||||
Receivables: | ||||||||
Trade accounts receivable from franchisees | $ | 9,563 | $ | 10,072 | ||||
Notes receivable from franchisees | 1,472 | 1,800 | ||||||
Vendor receivables | 1,155 | 2,516 | ||||||
Credit card receivables | 894 | 2,162 | ||||||
Other | 1,149 | 1,002 | ||||||
Allowance for doubtful accounts | (235 | ) | (231 | ) | ||||
Total current receivables, net | $ | 13,998 | $ | 17,321 | ||||
Noncurrent assets (included as a component of other noncurrent assets): | ||||||||
Notes receivable from franchisees | $ | 535 | $ | 766 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||
Goodwill had a carrying amount of $31.5 million as of June 25, 2014 and December 25, 2013. | ||||||||||||||||
Other intangible assets were comprised of the following: | ||||||||||||||||
June 25, 2014 | December 25, 2013 | |||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||
Trade names | $ | 44,056 | $ | — | $ | 44,055 | $ | — | ||||||||
Liquor licenses | 126 | — | 126 | — | ||||||||||||
Intangible assets with definite lives: | ||||||||||||||||
Franchise and license agreements | 22,613 | 21,027 | 31,248 | 29,007 | ||||||||||||
Reacquired franchise rights | 1,857 | 532 | 1,857 | 354 | ||||||||||||
Intangible assets | $ | 68,652 | $ | 21,559 | $ | 77,286 | $ | 29,361 | ||||||||
The $8.6 million decrease in franchise and license agreements primarily resulted from the removal of fully amortized agreements. |
Operating_Gains_Losses_and_Oth
Operating (Gains), Losses and Other Charges, Net | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Operating (Gains), Losses And Other Charges, Net [Abstract] | ' | |||||||||||||||
Operating (Gains), Losses and Other Charges, Net | ' | |||||||||||||||
Operating (Gains), Losses and Other Charges, Net | ||||||||||||||||
Operating (gains), losses and other charges, net are comprised of the following: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
(Gains) losses on sales of assets and other, net | $ | (33 | ) | $ | (33 | ) | $ | (41 | ) | $ | (15 | ) | ||||
Restructuring charges and exit costs | 45 | 660 | 475 | 776 | ||||||||||||
Impairment charges | 28 | 857 | 28 | 857 | ||||||||||||
Operating (gains), losses and other charges, net | $ | 40 | $ | 1,484 | $ | 462 | $ | 1,618 | ||||||||
Restructuring Charges and Exit Costs | ||||||||||||||||
Restructuring charges and exit costs were comprised of the following: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Exit costs | $ | 35 | $ | 181 | $ | 89 | $ | 237 | ||||||||
Severance and other restructuring charges | 10 | 479 | 386 | 539 | ||||||||||||
Total restructuring charges and exit costs | $ | 45 | $ | 660 | $ | 475 | $ | 776 | ||||||||
The components of the change in accrued exit cost liabilities are as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, December 25, 2013 | $ | 3,149 | ||||||||||||||
Exit costs (1) | 89 | |||||||||||||||
Payments, net of sublease receipts | (574 | ) | ||||||||||||||
Reclassification of certain lease assets and liabilities, net | (10 | ) | ||||||||||||||
Interest accretion | 99 | |||||||||||||||
Balance, June 25, 2014 | 2,753 | |||||||||||||||
Less current portion included in other current liabilities | 1,082 | |||||||||||||||
Long-term portion included in other noncurrent liabilities | $ | 1,671 | ||||||||||||||
-1 | Included as a component of operating (gains), losses and other charges, net. | |||||||||||||||
Estimated net cash payments related to exit cost liabilities are as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Remainder of 2014 | $ | 873 | ||||||||||||||
2015 | 583 | |||||||||||||||
2016 | 295 | |||||||||||||||
2017 | 296 | |||||||||||||||
2018 | 299 | |||||||||||||||
Thereafter | 986 | |||||||||||||||
Total | 3,332 | |||||||||||||||
Less imputed interest | 579 | |||||||||||||||
Present value of exit cost liabilities | $ | 2,753 | ||||||||||||||
As of both June 25, 2014 and December 25, 2013, we had accrued severance and other restructuring charges of $0.1 million. The balance as of June 25, 2014 is expected to be paid during the next 12 months. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||||
Jun. 25, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis | ||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Valuation Technique | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Fair value measurements as of June 25, 2014: | ||||||||||||||||||
Deferred compensation plan investments (1) | $ | 8,883 | $ | 8,883 | $ | — | $ | — | market approach | |||||||||
Interest rate swaps (2) | $ | 1,592 | — | 1,592 | — | income approach | ||||||||||||
Interest rate caps (2) | $ | 0 | $ | — | $ | 0 | $ | — | income approach | |||||||||
Total | $ | 10,475 | $ | 8,883 | $ | 1,592 | $ | — | ||||||||||
Fair value measurements as of December 25, 2013: | ||||||||||||||||||
Deferred compensation plan investments (1) | $ | 8,168 | $ | 8,168 | $ | — | $ | — | market approach | |||||||||
Interest rate swaps (2) | $ | 3,032 | $ | — | $ | 3,032 | $ | — | income approach | |||||||||
Interest rate caps (2) | $ | 11 | $ | — | $ | 11 | $ | — | income approach | |||||||||
Total | $ | 11,211 | $ | 8,168 | $ | 3,043 | $ | — | ||||||||||
-1 | The fair values of our deferred compensation plan investments are based on the closing market prices of the participants’ elected investments. | |||||||||||||||||
-2 | The fair values of our interest rate swaps and interest rate caps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps and interest rate caps. | |||||||||||||||||
Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Valuation Technique | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Fair value measurements as of December 25, 2013: | ||||||||||||||||||
Assets held and used (1) | $ | 1,198 | $ | — | $ | — | $ | 1,198 | income approach | |||||||||
Total | $ | 1,198 | $ | — | $ | — | $ | 1,198 | ||||||||||
-1 | As of December 25, 2013, impaired assets related to an underperforming restaurant were written down to their fair value. Impairment charges of $4.8 million were recognized as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Income during the quarter ended December 25, 2013. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. |
LongTerm_Debt
Long-Term Debt | 6 Months Ended |
Jun. 25, 2014 | |
Debt Disclosure [Abstract] | ' |
Long-Term Debt | ' |
Long-Term Debt | |
Denny's Corporation and certain of its subsidiaries have a credit facility comprised of a senior secured term loan in an original principal amount of $60 million and a $190 million senior secured revolver (with a $30 million letter of credit sublimit). As of June 25, 2014, we had outstanding term loan borrowings under the credit facility of $56.3 million and outstanding letters of credit under the senior secured revolver of $23.7 million. There were $105.0 million of revolving loans outstanding at June 25, 2014. These balances resulted in availability of $61.3 million under the revolving facility. The weighted-average interest rate under the term loan and on outstanding revolver loans was 2.16% and 2.17% as of June 25, 2014 and December 25, 2013, respectively. | |
The revolving credit facility includes an accordion feature that would allow us to increase the size of the revolver to $240 million. A commitment fee of 0.35% is paid on the unused portion of the revolving credit facility. Borrowings under the credit facility bear a tiered interest rate based on the Company's consolidated leverage ratio and was initially set at LIBOR plus 200 basis points. The maturity date for the credit facility is April 24, 2018. | |
The credit facility is guaranteed by the Company and its material subsidiaries and is secured by substantially all of the assets of the Company and its subsidiaries, including the stock of the Company's subsidiaries. It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio and maximum capital expenditures. | |
The term loan under the credit facility requires amortization of the original term loan balance of 5% per year in the first two years (April 2013 through April 2015), 7.5% in the subsequent two years (April 2015 through April 2017) and 10% in the fifth year (April 2017 through April 2018) with the balance due at maturity. We are required to make certain mandatory prepayments under certain circumstances and have the option to make certain prepayments under the credit facility. The credit facility includes events of default (and related remedies, including acceleration and increased interest rates following an event of default) that are usual for facilities and transactions of this type. | |
During the two quarters ended June 25, 2014, we paid $1.5 million on the term loan under the credit facility. | |
Interest Rate Hedges | |
We have entered into interest rate hedges that cap the LIBOR rate on borrowings under our credit facility. The 200 basis point LIBOR cap applied to $125 million of borrowings from April 14, 2013 through April 13, 2014 and applies to $150 million of borrowings from April 14, 2014 through March 31, 2015. | |
We also have entered into interest rate swaps to hedge a portion of the cash flows of our floating rate debt from March 31, 2015 through March 29, 2018. We designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to payments of LIBOR due on a related $150 million notional debt obligation from March 31, 2015 through March 31, 2017 and a related $140 million notional debt obligation from April 1, 2017 through March 29, 2018. Under the terms of the swaps, we will pay an average fixed rate of 3.12% on the notional amounts and receive payments from a counterparty based on the 30-day LIBOR rate. As of June 25, 2014, the fair value of the interest rate swaps was $1.6 million, which is recorded as a component of other noncurrent assets on our Condensed Consolidated Balance Sheets. See Note 13 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps. | |
We believe that our estimated cash flows from operations for 2014, combined with our capacity for additional borrowings under our credit facility, will enable us to meet our anticipated cash requirements and fund capital expenditures over the next twelve months. |
Defined_Benefit_Plans
Defined Benefit Plans | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Defined Benefit Plans | ' | |||||||||||||||
Defined Benefit Plans | ||||||||||||||||
The components of net periodic benefit cost were as follows: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Pension Plan: | ||||||||||||||||
Service cost | $ | 95 | $ | 100 | $ | 190 | $ | 200 | ||||||||
Interest cost | 771 | 734 | 1,550 | 1,488 | ||||||||||||
Expected return on plan assets | (988 | ) | (1,120 | ) | (1,977 | ) | (2,244 | ) | ||||||||
Amortization of net loss | 231 | 408 | 462 | 827 | ||||||||||||
Net periodic benefit cost | $ | 109 | $ | 122 | $ | 225 | $ | 271 | ||||||||
Other Defined Benefit Plans: | ||||||||||||||||
Interest cost | $ | 31 | $ | 28 | $ | 62 | $ | 56 | ||||||||
Amortization of net loss | 16 | 18 | 31 | 36 | ||||||||||||
Settlement loss recognized | 25 | — | 25 | — | ||||||||||||
Net periodic benefit cost | $ | 72 | $ | 46 | $ | 118 | $ | 92 | ||||||||
We made contributions of $1.3 million and $2.8 million to our qualified pension plan during the two quarters ended June 25, 2014 and June 26, 2013, respectively. We made contributions of $0.2 million and $0.1 million to our other defined benefit plans during the two quarters ended June 25, 2014 and June 26, 2013, respectively. We expect to contribute an additional $1.3 million to our qualified pension plan and an additional $0.2 million to our other defined benefit plans over the remainder of fiscal 2014. | ||||||||||||||||
Additional minimum pension liability of $18.4 million and $18.7 million is reported as a component of accumulated other comprehensive loss in the Condensed Consolidated Statement of Shareholders’ Equity as of June 25, 2014 and December 25, 2013, respectively. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-Based Compensation | ' | |||||||||||||||
Share-Based Compensation | ||||||||||||||||
Total share-based compensation cost included as a component of net income was as follows: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Stock options | $ | — | $ | 133 | $ | 52 | $ | 297 | ||||||||
Performance share awards | 984 | 811 | 1,912 | 1,642 | ||||||||||||
Restricted stock units | 196 | 262 | 380 | 442 | ||||||||||||
Total share-based compensation | $ | 1,180 | $ | 1,206 | $ | 2,344 | $ | 2,381 | ||||||||
Stock Options | ||||||||||||||||
As of June 25, 2014, there was no unrecognized compensation cost related to unvested stock option awards outstanding. | ||||||||||||||||
Performance Share Awards | ||||||||||||||||
In February 2014, we granted approximately 0.2 million performance shares and related performance-based target cash awards of $2.2 million to certain employees. In April 2014, we granted less than 0.1 million performance shares and related performance-based target cash awards of $0.3 million to additional employees under the same award plan. As these awards contain a market condition, a Monte Carlo valuation was used to determine the performance shares' grant date fair values of $7.65 per share (February 2014) and $6.80 per share (April 2014) and the payout probabilities of the target cash awards. The awards granted to our named executive officers also contain a performance condition based on certain operating measures for the fiscal year ended December 31, 2014. The performance period is the three year fiscal period beginning December 26, 2013 and ending December 28, 2016. The performance shares and cash awards will vest and be earned (from 0% to 200% of the target award for each such increment) at the end of the performance period based on the total shareholder return of our stock compared to the total shareholder returns of a group of peer companies. | ||||||||||||||||
During the two quarters ended June 25, 2014, we made payments of $1.1 million in cash and issued 0.1 million shares of common stock related to performance share awards. | ||||||||||||||||
As of June 25, 2014, we had approximately $5.8 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which is expected to be recognized over a weighted average of 1.9 years. | ||||||||||||||||
Restricted Stock Units for Board Members | ||||||||||||||||
During the two quarters ended June 25, 2014, we granted 0.1 million restricted stock units (which are equity classified) with a weighted average grant date fair value of $6.56 per unit to non-employee members of our Board of Directors. A director may elect to convert these awards into shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors) or upon termination as a member of our Board of Directors. During the two quarters ended June 25, 2014, less than 0.1 million restricted stock units were converted into shares of common stock. As of June 25, 2014, we had approximately $0.6 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which is expected to be recognized over a weighted average of 0.8 years. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes was $7.3 million and $6.1 million for the two quarters ended June 25, 2014 and June 26, 2013, respectively. For the 2014 period, the difference in the overall effective rate from the U.S. Statutory rate was primarily due to two discrete tax items. State job tax credits of $0.5 million were claimed during the 2014 period resulting from the prior year's hiring activity. In addition, share-based compensation adjustments resulted in an out-of-period tax benefit of $0.5 million. We do not believe the out-of-period adjustment was material to any prior or current year financial statements or on earnings trends. For the 2013 period, the difference in the overall effective rate from the U.S. Statutory rate was due to state and foreign taxes, employment tax credits, and discrete tax items. The passage of the American Tax Payer Relief Act of 2012 resulted in deferred tax benefits of $0.3 million related to work opportunity credits generated in 2012, which were allowed retroactively during 2013. In addition, state jobs tax credits of $0.8 million were claimed during the 2013 period resulting from the prior year's hiring activity. |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
Net Income Per Share | ||||||||||||||||
The amounts used for the basic and diluted net income per share calculation are summarized below: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands, except for per share amounts) | ||||||||||||||||
Net income | $ | 8,273 | $ | 6,198 | $ | 14,704 | $ | 13,279 | ||||||||
Weighted average shares outstanding - basic | 86,781 | 91,659 | 87,792 | 92,004 | ||||||||||||
Effect of dilutive share-based compensation awards | 1,603 | 2,006 | 1,838 | 2,077 | ||||||||||||
Weighted average shares outstanding - diluted | 88,384 | 93,665 | 89,630 | 94,081 | ||||||||||||
Basic net income per share | $ | 0.1 | $ | 0.07 | $ | 0.17 | $ | 0.14 | ||||||||
Diluted net income per share | $ | 0.09 | $ | 0.07 | $ | 0.16 | $ | 0.14 | ||||||||
Anti-dilutive share-based compensation awards | 606 | 331 | 606 | 331 | ||||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 6 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ||||||||
Two Quarters Ended | ||||||||
June 25, 2014 | June 26, 2013 | |||||||
(In thousands) | ||||||||
Income taxes paid, net | $ | 1,640 | $ | 1,335 | ||||
Interest paid | $ | 4,103 | $ | 5,010 | ||||
Noncash investing and financing activities: | ||||||||
Issuance of common stock, pursuant to share-based compensation plans | $ | 1,030 | $ | 1,590 | ||||
Execution of capital leases | $ | 757 | $ | 2,865 | ||||
Treasury stock payable | $ | 395 | $ | 1,144 | ||||
Accrued deferred financing costs | $ | — | $ | 54 | ||||
Shareholders_Equity
Shareholders' Equity | 6 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | |||||||||||
Shareholders' equity | ' | |||||||||||
Shareholders' Equity | ||||||||||||
Share Repurchase | ||||||||||||
Our credit facility permits the payment of cash dividends and the purchase of Denny’s stock subject to certain limitations. In April 2013, we announced that our Board of Directors approved a share repurchase program authorizing us to repurchase up to an additional 10.0 million shares of our common stock. Under this program, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934) or in privately negotiated transactions, subject to market and business conditions. During the two quarters ended June 25, 2014, we repurchased 3.6 million shares of our common stock for approximately $24.0 million. This brings the total amount repurchased under this program to 4.4 million shares of our common stock for approximately $29.0 million, leaving 5.6 million shares that can be repurchased as of June 25, 2014. Repurchased shares are included as treasury stock in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Shareholders' Equity. | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
The components of the change in accumulated other comprehensive loss were as follows: | ||||||||||||
Pensions | Derivatives | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | ||||||||||||
Balance as of December 25, 2013 | (18,690 | ) | 1,848 | (16,842 | ) | |||||||
Amortization of net loss (1) | 462 | — | 462 | |||||||||
Net change in fair value of derivatives | — | (1,440 | ) | (1,440 | ) | |||||||
Income tax (expense) benefit related to items of other comprehensive income | (181 | ) | 563 | 382 | ||||||||
Balance as of June 25, 2014 | $ | (18,409 | ) | $ | 971 | $ | (17,438 | ) | ||||
-1 | Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the two quarters ended June 25, 2014. See Note 8 for additional details. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
We have guarantees related to certain franchisee leases and loans. Payments under these guarantees would result from the inability of a franchisee to fund required payments when due. Through June 25, 2014, no events had occurred that caused us to make payments under the guarantees. There were $6.8 million and $6.1 million of loans outstanding under these programs as of June 25, 2014 and December 25, 2013, respectively. As of June 25, 2014, the maximum amounts payable under the lease guarantee and loan guarantees were $2.0 million and $1.7 million, respectively. As a result of these guarantees, we have recorded liabilities of approximately $0.1 million as of June 25, 2014 and December 25, 2013, which are included as a component of other noncurrent liabilities and deferred credits in our Condensed Consolidated Balance Sheets and other nonoperating expense in our Condensed Consolidated Statements of Income. | |
There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company's consolidated results of operations or financial position. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 6 Months Ended |
Jun. 25, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
We performed an evaluation of subsequent events and determined that no events required disclosure. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 25, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting standards to be adopted | ' |
Accounting Standards to be Adopted | |
Discontinued Operations | |
ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" | |
In April 2014, the FASB issued ASU 2014-08, which raises the threshold for a disposal to qualify as a discontinued operation and modifies the related disclosure requirements. Under the new guidance, only disposals resulting in a strategic shift that will have a major effect on an entity's operations and financial results will be reported as discontinued operations. ASU 2014-08 also removes the requirement that an entity not have any significant continuing involvement in the operations of the component after disposal to qualify for reporting of the disposal as a discontinued operation. The guidance is effective for annual and interim periods beginning after December 15, 2014 (our fiscal 2015), with early adoption permitted for any disposal transaction not previously reported. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |
Revenue Recognition | |
ASU 2014-09, "Revenue from Contracts with Customers" | |
In May 2014, the FASB issued ASU 2014-09, which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or service to a customer in an amount that reflects the consideration to which a company expects to be entitled. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption, however early adoption is not permitted. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. | |
We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the financial statements as a result of future adoption. |
Introduction_and_Basis_of_Pres1
Introduction and Basis of Presentation (Tables) | 6 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Company and franchise unit activity | ' | |||||||||||
The following table shows the unit activity for the quarter and two quarters ended June 25, 2014 and June 26, 2013, respectively: | ||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||
Company restaurants, beginning of period | 161 | 164 | 163 | 164 | ||||||||
Units opened | — | — | — | — | ||||||||
Units acquired from franchisees | — | 1 | — | 1 | ||||||||
Units closed | (1 | ) | — | (3 | ) | — | ||||||
End of period | 160 | 165 | 160 | 165 | ||||||||
Franchised and licensed restaurants, beginning of period | 1,535 | 1,525 | 1,537 | 1,524 | ||||||||
Units opened | 3 | 11 | 7 | 18 | ||||||||
Units acquired by Company | — | (1 | ) | — | (1 | ) | ||||||
Units closed | (5 | ) | (10 | ) | (11 | ) | (16 | ) | ||||
End of period | 1,533 | 1,525 | 1,533 | 1,525 | ||||||||
Total restaurants, end of period | 1,693 | 1,690 | 1,693 | 1,690 | ||||||||
Receivables_Tables
Receivables (Tables) | 6 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Receivables, net | ' | |||||||
Receivables were comprised of the following: | ||||||||
June 25, 2014 | December 25, 2013 | |||||||
(In thousands) | ||||||||
Current assets: | ||||||||
Receivables: | ||||||||
Trade accounts receivable from franchisees | $ | 9,563 | $ | 10,072 | ||||
Notes receivable from franchisees | 1,472 | 1,800 | ||||||
Vendor receivables | 1,155 | 2,516 | ||||||
Credit card receivables | 894 | 2,162 | ||||||
Other | 1,149 | 1,002 | ||||||
Allowance for doubtful accounts | (235 | ) | (231 | ) | ||||
Total current receivables, net | $ | 13,998 | $ | 17,321 | ||||
Noncurrent assets (included as a component of other noncurrent assets): | ||||||||
Notes receivable from franchisees | $ | 535 | $ | 766 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible assets | ' | |||||||||||||||
Other intangible assets were comprised of the following: | ||||||||||||||||
June 25, 2014 | December 25, 2013 | |||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||
Trade names | $ | 44,056 | $ | — | $ | 44,055 | $ | — | ||||||||
Liquor licenses | 126 | — | 126 | — | ||||||||||||
Intangible assets with definite lives: | ||||||||||||||||
Franchise and license agreements | 22,613 | 21,027 | 31,248 | 29,007 | ||||||||||||
Reacquired franchise rights | 1,857 | 532 | 1,857 | 354 | ||||||||||||
Intangible assets | $ | 68,652 | $ | 21,559 | $ | 77,286 | $ | 29,361 | ||||||||
Operating_Gains_Losses_and_Oth1
Operating (Gains), Losses and Other Charges, Net (Tables) | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Operating (Gains), Losses And Other Charges, Net [Abstract] | ' | |||||||||||||||
Operating gains losses and other charges net | ' | |||||||||||||||
Operating (gains), losses and other charges, net are comprised of the following: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
(Gains) losses on sales of assets and other, net | $ | (33 | ) | $ | (33 | ) | $ | (41 | ) | $ | (15 | ) | ||||
Restructuring charges and exit costs | 45 | 660 | 475 | 776 | ||||||||||||
Impairment charges | 28 | 857 | 28 | 857 | ||||||||||||
Operating (gains), losses and other charges, net | $ | 40 | $ | 1,484 | $ | 462 | $ | 1,618 | ||||||||
Schedule of restructuring charges and exit costs | ' | |||||||||||||||
Restructuring charges and exit costs were comprised of the following: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Exit costs | $ | 35 | $ | 181 | $ | 89 | $ | 237 | ||||||||
Severance and other restructuring charges | 10 | 479 | 386 | 539 | ||||||||||||
Total restructuring charges and exit costs | $ | 45 | $ | 660 | $ | 475 | $ | 776 | ||||||||
Components of change in accrued exit cost liabilities | ' | |||||||||||||||
The components of the change in accrued exit cost liabilities are as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, December 25, 2013 | $ | 3,149 | ||||||||||||||
Exit costs (1) | 89 | |||||||||||||||
Payments, net of sublease receipts | (574 | ) | ||||||||||||||
Reclassification of certain lease assets and liabilities, net | (10 | ) | ||||||||||||||
Interest accretion | 99 | |||||||||||||||
Balance, June 25, 2014 | 2,753 | |||||||||||||||
Less current portion included in other current liabilities | 1,082 | |||||||||||||||
Long-term portion included in other noncurrent liabilities | $ | 1,671 | ||||||||||||||
-1 | Included as a component of operating (gains), losses and other charges, net. | |||||||||||||||
Estimated net cash payments related to exit cost liabilities | ' | |||||||||||||||
Estimated net cash payments related to exit cost liabilities are as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Remainder of 2014 | $ | 873 | ||||||||||||||
2015 | 583 | |||||||||||||||
2016 | 295 | |||||||||||||||
2017 | 296 | |||||||||||||||
2018 | 299 | |||||||||||||||
Thereafter | 986 | |||||||||||||||
Total | 3,332 | |||||||||||||||
Less imputed interest | 579 | |||||||||||||||
Present value of exit cost liabilities | $ | 2,753 | ||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 25, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Valuation Technique | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Fair value measurements as of June 25, 2014: | ||||||||||||||||||
Deferred compensation plan investments (1) | $ | 8,883 | $ | 8,883 | $ | — | $ | — | market approach | |||||||||
Interest rate swaps (2) | $ | 1,592 | — | 1,592 | — | income approach | ||||||||||||
Interest rate caps (2) | $ | 0 | $ | — | $ | 0 | $ | — | income approach | |||||||||
Total | $ | 10,475 | $ | 8,883 | $ | 1,592 | $ | — | ||||||||||
Fair value measurements as of December 25, 2013: | ||||||||||||||||||
Deferred compensation plan investments (1) | $ | 8,168 | $ | 8,168 | $ | — | $ | — | market approach | |||||||||
Interest rate swaps (2) | $ | 3,032 | $ | — | $ | 3,032 | $ | — | income approach | |||||||||
Interest rate caps (2) | $ | 11 | $ | — | $ | 11 | $ | — | income approach | |||||||||
Total | $ | 11,211 | $ | 8,168 | $ | 3,043 | $ | — | ||||||||||
-1 | The fair values of our deferred compensation plan investments are based on the closing market prices of the participants’ elected investments. | |||||||||||||||||
-2 | The fair values of our interest rate swaps and interest rate caps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps and interest rate caps. | |||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis | ' | |||||||||||||||||
Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | Valuation Technique | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Fair value measurements as of December 25, 2013: | ||||||||||||||||||
Assets held and used (1) | $ | 1,198 | $ | — | $ | — | $ | 1,198 | income approach | |||||||||
Total | $ | 1,198 | $ | — | $ | — | $ | 1,198 | ||||||||||
-1 | As of December 25, 2013, impaired assets related to an underperforming restaurant were written down to their fair value. Impairment charges of $4.8 million were recognized as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Income during the quarter ended December 25, 2013. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. |
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of net periodic benefit cost | ' | |||||||||||||||
The components of net periodic benefit cost were as follows: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Pension Plan: | ||||||||||||||||
Service cost | $ | 95 | $ | 100 | $ | 190 | $ | 200 | ||||||||
Interest cost | 771 | 734 | 1,550 | 1,488 | ||||||||||||
Expected return on plan assets | (988 | ) | (1,120 | ) | (1,977 | ) | (2,244 | ) | ||||||||
Amortization of net loss | 231 | 408 | 462 | 827 | ||||||||||||
Net periodic benefit cost | $ | 109 | $ | 122 | $ | 225 | $ | 271 | ||||||||
Other Defined Benefit Plans: | ||||||||||||||||
Interest cost | $ | 31 | $ | 28 | $ | 62 | $ | 56 | ||||||||
Amortization of net loss | 16 | 18 | 31 | 36 | ||||||||||||
Settlement loss recognized | 25 | — | 25 | — | ||||||||||||
Net periodic benefit cost | $ | 72 | $ | 46 | $ | 118 | $ | 92 | ||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Total share-based compensation | ' | |||||||||||||||
Total share-based compensation cost included as a component of net income was as follows: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Stock options | $ | — | $ | 133 | $ | 52 | $ | 297 | ||||||||
Performance share awards | 984 | 811 | 1,912 | 1,642 | ||||||||||||
Restricted stock units | 196 | 262 | 380 | 442 | ||||||||||||
Total share-based compensation | $ | 1,180 | $ | 1,206 | $ | 2,344 | $ | 2,381 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 25, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
The amounts used for the basic and diluted net income per share calculation are summarized below: | ||||||||||||||||
Quarter Ended | Two Quarters Ended | |||||||||||||||
June 25, 2014 | June 26, 2013 | June 25, 2014 | June 26, 2013 | |||||||||||||
(In thousands, except for per share amounts) | ||||||||||||||||
Net income | $ | 8,273 | $ | 6,198 | $ | 14,704 | $ | 13,279 | ||||||||
Weighted average shares outstanding - basic | 86,781 | 91,659 | 87,792 | 92,004 | ||||||||||||
Effect of dilutive share-based compensation awards | 1,603 | 2,006 | 1,838 | 2,077 | ||||||||||||
Weighted average shares outstanding - diluted | 88,384 | 93,665 | 89,630 | 94,081 | ||||||||||||
Basic net income per share | $ | 0.1 | $ | 0.07 | $ | 0.17 | $ | 0.14 | ||||||||
Diluted net income per share | $ | 0.09 | $ | 0.07 | $ | 0.16 | $ | 0.14 | ||||||||
Anti-dilutive share-based compensation awards | 606 | 331 | 606 | 331 | ||||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 6 Months Ended | |||||||
Jun. 25, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Two Quarters Ended | ||||||||
June 25, 2014 | June 26, 2013 | |||||||
(In thousands) | ||||||||
Income taxes paid, net | $ | 1,640 | $ | 1,335 | ||||
Interest paid | $ | 4,103 | $ | 5,010 | ||||
Noncash investing and financing activities: | ||||||||
Issuance of common stock, pursuant to share-based compensation plans | $ | 1,030 | $ | 1,590 | ||||
Execution of capital leases | $ | 757 | $ | 2,865 | ||||
Treasury stock payable | $ | 395 | $ | 1,144 | ||||
Accrued deferred financing costs | $ | — | $ | 54 | ||||
Accumulated_other_comprehensiv
Accumulated other comprehensive loss (Tables) | 6 Months Ended | |||||||||||
Jun. 25, 2014 | ||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||
Components of accumulated other comprehensive loss | ' | |||||||||||
The components of the change in accumulated other comprehensive loss were as follows: | ||||||||||||
Pensions | Derivatives | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | ||||||||||||
Balance as of December 25, 2013 | (18,690 | ) | 1,848 | (16,842 | ) | |||||||
Amortization of net loss (1) | 462 | — | 462 | |||||||||
Net change in fair value of derivatives | — | (1,440 | ) | (1,440 | ) | |||||||
Income tax (expense) benefit related to items of other comprehensive income | (181 | ) | 563 | 382 | ||||||||
Balance as of June 25, 2014 | $ | (18,409 | ) | $ | 971 | $ | (17,438 | ) | ||||
-1 | Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the two quarters ended June 25, 2014. See Note 8 for additional details. |
Introduction_and_Basis_of_Pres2
Introduction and Basis of Presentation (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | |
restaurant | restaurant | restaurant | restaurant | |
Entity and franchisee unit activity [Roll Forward] | ' | ' | ' | ' |
Units, end of period | 1,693 | 1,690 | 1,693 | 1,690 |
Company restaurants [Member] | ' | ' | ' | ' |
Entity and franchisee unit activity [Roll Forward] | ' | ' | ' | ' |
Units, beginning of period | 161 | 164 | 163 | 164 |
Units opened | 0 | 0 | 0 | 0 |
Units acquired from franchisees | 0 | 1 | 0 | 1 |
Units closed | -1 | 0 | -3 | 0 |
Units, end of period | 160 | 165 | 160 | 165 |
Franchised and licensed restaurants [Member] | ' | ' | ' | ' |
Entity and franchisee unit activity [Roll Forward] | ' | ' | ' | ' |
Units, beginning of period | 1,535 | 1,525 | 1,537 | 1,524 |
Units opened | 3 | 11 | 7 | 18 |
Units acquired by Company | 0 | -1 | 0 | -1 |
Units closed | -5 | -10 | -11 | -16 |
Units, end of period | 1,533 | 1,525 | 1,533 | 1,525 |
Receivables_Details
Receivables (Details) (USD $) | Jun. 25, 2014 | Dec. 25, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Trade accounts receivable from franchisees, gross, current | $9,563 | $10,072 |
Notes receivable from franchisees, gross, current | 1,472 | 1,800 |
Allowance for doubtful accounts | -235 | -231 |
Total current receivables, net | 13,998 | 17,321 |
Noncurrent assets (included as a component of other noncurrent assets): | ' | ' |
Notes receivable from franchisees, noncurrent | 535 | 766 |
Vendor receivables [Member] | ' | ' |
Receivables [Abstract] | ' | ' |
Other receivable, gross, current | 1,155 | 2,516 |
Credit card receivables [Member] | ' | ' |
Receivables [Abstract] | ' | ' |
Other receivable, gross, current | 894 | 2,162 |
Other [Member] | ' | ' |
Receivables [Abstract] | ' | ' |
Other receivable, gross, current | $1,149 | $1,002 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 6 Months Ended | |
Jun. 25, 2014 | Dec. 25, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill | $31,451,000 | $31,451,000 |
Goodwill and Intangible Assets [Line Items] | ' | ' |
Intangible assets | 68,652,000 | 77,286,000 |
Intangible assets with indefinite lives [Abstract] | ' | ' |
Gross carrying amount - Trade names | 44,056,000 | 44,055,000 |
Gross carrying amount - Liquor licenses | 126,000 | 126,000 |
Intangible assets with definite lives [Abstract] | ' | ' |
Accumulated amortization | 21,559,000 | 29,361,000 |
Franchise and license agreements [Member] | ' | ' |
Intangible assets with definite lives [Abstract] | ' | ' |
Gross carrying amount | 22,613,000 | 31,248,000 |
Accumulated amortization | 21,027,000 | 29,007,000 |
Decrease in franchise and license agreements | 8,600,000 | ' |
Reacquired franchise rights [Member] | ' | ' |
Intangible assets with definite lives [Abstract] | ' | ' |
Gross carrying amount | 1,857,000 | 1,857,000 |
Accumulated amortization | $532,000 | $354,000 |
Operating_Gains_Losses_and_Oth2
Operating (Gains), Losses and Other Charges, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Dec. 25, 2013 | |
Operating (gains), losses and other charges, net [Abstract] | ' | ' | ' | ' | ' | |
(Gains) losses on sales of assets and other, net | ($33) | ($33) | ($41) | ($15) | ' | |
Restructuring charges and exit costs | 45 | 660 | 475 | 776 | ' | |
Impairment charges | 28 | 857 | 28 | 857 | ' | |
Operating (gains), losses and other charges, net | 40 | 1,484 | 462 | 1,618 | ' | |
Restructuring charges and exit costs [Abstract] | ' | ' | ' | ' | ' | |
Exit costs | 35 | 181 | 89 | [1] | 237 | ' |
Severance and other restructuring charges | 10 | 479 | 386 | 539 | ' | |
Total restructuring charges and exit costs | 45 | 660 | 475 | 776 | ' | |
Components of change in accrued exit cost liabilities [Roll Forward] | ' | ' | ' | ' | ' | |
Balance, December 25, 2013 | ' | ' | 3,149 | ' | ' | |
Exit costs | 35 | 181 | 89 | [1] | 237 | ' |
Payments, net of sublease receipts | ' | ' | -574 | ' | ' | |
Reclassification of certain lease assets and liabilities, net | ' | ' | -10 | ' | ' | |
Interest accretion | ' | ' | 99 | ' | ' | |
Balance, June 25, 2014 | 2,753 | ' | 2,753 | ' | ' | |
Less current portion included in other current liabilities | 1,082 | ' | 1,082 | ' | ' | |
Long-term portion included in other noncurrent liabilities | 1,671 | ' | 1,671 | ' | ' | |
Estimated net cash payments related to exit cost liabilities [Abstract] | ' | ' | ' | ' | ' | |
Remainder of 2014 | 873 | ' | 873 | ' | ' | |
2015 | 583 | ' | 583 | ' | ' | |
2016 | 295 | ' | 295 | ' | ' | |
2017 | 296 | ' | 296 | ' | ' | |
2018 | 299 | ' | 299 | ' | ' | |
Thereafter | 986 | ' | 986 | ' | ' | |
Total | 3,332 | ' | 3,332 | ' | ' | |
Less imputed interest | 579 | ' | 579 | ' | ' | |
Present value of exit cost liabilities | 2,753 | ' | 2,753 | ' | ' | |
Accrued severance and other restructuring charges | $100 | ' | $100 | ' | $100 | |
Period of accrued severance and other restructuring charges, maximum | ' | ' | '12 months | ' | ' | |
[1] | Included as a component of operating (gains), losses and other charges, net. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 25, 2014 | Dec. 25, 2013 | |||
Recurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | $10,475,000 | $11,211,000 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | 8,883,000 | 8,168,000 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | 1,592,000 | 3,043,000 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | 0 | 0 | ||
Recurring [Member] | Deferred compensation plan investments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Deferred compensation plan investments | 8,883,000 | [1] | 8,168,000 | [1] |
Valuation technique | 'market approach | 'market approach | ||
Recurring [Member] | Deferred compensation plan investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Deferred compensation plan investments | 8,883,000 | [1] | 8,168,000 | [1] |
Recurring [Member] | Deferred compensation plan investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Deferred compensation plan investments | 0 | [1] | 0 | [1] |
Recurring [Member] | Deferred compensation plan investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Deferred compensation plan investments | 0 | [1] | 0 | [1] |
Recurring [Member] | Interest rate swaps [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 1,592,000 | [2] | 3,032,000 | [2] |
Valuation technique | 'income approach | 'income approach | ||
Recurring [Member] | Interest rate swaps [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 0 | [2] |
Recurring [Member] | Interest rate swaps [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 1,592,000 | [2] | 3,032,000 | [2] |
Recurring [Member] | Interest rate swaps [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 0 | [2] |
Recurring [Member] | Interest rate caps [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 11,000 | [2] |
Valuation technique | 'income approach | 'income approach | ||
Recurring [Member] | Interest rate caps [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 0 | [2] |
Recurring [Member] | Interest rate caps [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 11,000 | [2] |
Recurring [Member] | Interest rate caps [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps and interest rate caps | 0 | [2] | 0 | [2] |
Nonrecurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ' | 1,198,000 | ||
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ' | 0 | ||
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ' | 0 | ||
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ' | 1,198,000 | ||
Nonrecurring [Member] | Assets held and used [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets held and used | ' | 1,198,000 | [3] | |
Valuation technique | ' | 'income approach | ||
Impairment of Long-Lived Assets Held-for-use | ' | 4,800,000 | ||
Nonrecurring [Member] | Assets held and used [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets held and used | ' | 0 | [3] | |
Nonrecurring [Member] | Assets held and used [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets held and used | ' | 0 | [3] | |
Nonrecurring [Member] | Assets held and used [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets held and used | ' | $1,198,000 | [3] | |
[1] | The fair values of our deferred compensation plan investments are based on the closing market prices of the participantsb elected investments. | |||
[2] | The fair values of our interest rate swaps and interest rate caps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps and interest rate caps. | |||
[3] | As of December 25, 2013, impaired assets related to an underperforming restaurant were written down to their fair value. Impairment charges of $4.8 million were recognized as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Income during the quarter ended December 25, 2013. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 6 Months Ended | |
Jun. 25, 2014 | Dec. 25, 2013 | |
Line of Credit Facility [Line Items] | ' | ' |
Weighted-average interest rate (in hundredths) | 2.16% | 2.17% |
Maturity date | 24-Apr-18 | ' |
Debt Instrument, periodic amortization, principal, years one and two | 5.00% | ' |
Debt Instrument, periodic amortization, principal, years three and four | 7.50% | ' |
Debt Instrument, periodic amortization, principal, year five | 10.00% | ' |
Secured Debt [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Term loan, original principal amount | 60,000,000 | ' |
Outstanding amount under credit facility | 56,300,000 | ' |
Basis spread on variable rate debt | 2.00% | ' |
Repayments of term loan under the credit facility | 1,500,000 | ' |
Senior secured revolver [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility, current borrowing capacity | 190,000,000 | ' |
Outstanding amount under credit facility | 105,000,000 | ' |
Availability under the revolving facility | 61,300,000 | ' |
Accordion feature that allows increase in size of facility | 240,000,000 | ' |
Commitment fee for unused portion of revolving credit facility (in hundredths) | 0.35% | ' |
Letter of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility, current borrowing capacity | 30,000,000 | ' |
Outstanding amount of letters of credit | 23,700,000 | ' |
Interest Rate Cap [Member] | Interest Rate Cap 2013-2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate cap, description of variable rate basis | 'LIBOR | ' |
Interest rate cap, basis spread on variable rate (percent) | 2.00% | ' |
Derivative, notional amount | 125,000,000 | ' |
Interest Rate Cap [Member] | Interest Rate Cap 2014-2015 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate cap, description of variable rate basis | 'LIBOR | ' |
Interest rate cap, basis spread on variable rate (percent) | 2.00% | ' |
Derivative, notional amount | 150,000,000 | ' |
Interest Rate Swap [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Fair value of interest rate swaps | 1,592,000 | ' |
Interest Rate Swap [Member] | Interest Rate Swaps 2015-2017 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Derivative, notional amount | 150,000,000 | ' |
Average fixed interest rate on interest rate swaps | 3.12% | ' |
Interest Rate Swap [Member] | Interest Rate Swaps 2017-2018 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Derivative, notional amount | 140,000,000 | ' |
Average fixed interest rate on interest rate swaps | 3.12% | ' |
Defined_Benefit_Plans_Details
Defined Benefit Plans (Details) (USD $) | Jun. 25, 2014 | Dec. 25, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Pension Plan [Member] | Pension Plan [Member] | Pension Plan [Member] | Pension Plan [Member] | Other Defined Benefit Plans [Member] | Other Defined Benefit Plans [Member] | Other Defined Benefit Plans [Member] | Other Defined Benefit Plans [Member] | |||
Components of net periodic benefit cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | $95,000 | $100,000 | $190,000 | $200,000 | ' | ' | ' | ' |
Interest cost | ' | ' | 771,000 | 734,000 | 1,550,000 | 1,488,000 | 31,000 | 28,000 | 62,000 | 56,000 |
Expected return on plan assets | ' | ' | -988,000 | -1,120,000 | -1,977,000 | -2,244,000 | ' | ' | ' | ' |
Amortization of net loss | ' | ' | 231,000 | 408,000 | 462,000 | 827,000 | 16,000 | 18,000 | 31,000 | 36,000 |
Settlement loss recognized | ' | ' | ' | ' | ' | ' | 25,000 | 0 | 25,000 | 0 |
Net periodic benefit cost | ' | ' | 109,000 | 122,000 | 225,000 | 271,000 | 72,000 | 46,000 | 118,000 | 92,000 |
Maximum contributions made to qualified pension plan and other defined benefit plans | ' | ' | ' | ' | 1,300,000 | 2,800,000 | ' | ' | 200,000 | 100,000 |
Maximum expected additional contributions to be made to qualified pension plan and other defined benefit plans | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | 200,000 | ' |
Additional minimum pension liability | $18,400,000 | $18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Total share-based compensation [Abstract] | ' | ' | ' | ' |
Total share-based compensation | $1,180,000 | $1,206,000 | $2,344,000 | $2,381,000 |
Stock options [Member] | ' | ' | ' | ' |
Total share-based compensation [Abstract] | ' | ' | ' | ' |
Total share-based compensation | 0 | 133,000 | 52,000 | 297,000 |
Unrecognized compensation cost [Abstract] | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested stock option awards outstanding | 0 | ' | 0 | ' |
Performance shares [Member] | ' | ' | ' | ' |
Total share-based compensation [Abstract] | ' | ' | ' | ' |
Total share-based compensation | 984,000 | 811,000 | 1,912,000 | 1,642,000 |
Restricted Stock Units [Abstract] | ' | ' | ' | ' |
Performance period | ' | ' | '3 years | ' |
Minimum percentage of target awards to be earned (in hundredths) | ' | ' | 0.00% | ' |
Maximum percentage of target awards to be earned (in hundredths) | ' | ' | 200.00% | ' |
Cash payments | ' | ' | 1,100,000 | ' |
Maximum common stock shares issued (in shares) | ' | ' | 0.1 | ' |
Unrecognized compensation cost [Abstract] | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested performance share awards outstanding | 5,800,000 | ' | 5,800,000 | ' |
Unrecognized compensation cost, expected weighted average period | ' | ' | '1 year 10 months 17 days | ' |
Restricted stock units [Member] | ' | ' | ' | ' |
Total share-based compensation [Abstract] | ' | ' | ' | ' |
Total share-based compensation | 196,000 | 262,000 | 380,000 | 442,000 |
Restricted Stock Units [Abstract] | ' | ' | ' | ' |
Equity awards granted (in shares) | ' | ' | 0.1 | ' |
Equity awards, grant date fair value (in dollars per share) | ' | ' | $6.56 | ' |
Maximum common stock shares issued (in shares) | ' | ' | 0.1 | ' |
Unrecognized compensation cost [Abstract] | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested restricted stock units outstanding | 600,000 | ' | 600,000 | ' |
Unrecognized compensation cost related to unvested restricted stock units, expected weighted average period | ' | ' | '0 years 10 months 0 days | ' |
Performance award granted February 2014 [Member] | Performance shares [Member] | ' | ' | ' | ' |
Restricted Stock Units [Abstract] | ' | ' | ' | ' |
Equity awards granted (in shares) | ' | ' | 0.2 | ' |
Employee performance based target cash awards | ' | ' | 2,200,000 | ' |
Equity awards, grant date fair value (in dollars per share) | ' | ' | $7.65 | ' |
Performance award granted April 2014 [Member] | Performance shares [Member] | ' | ' | ' | ' |
Restricted Stock Units [Abstract] | ' | ' | ' | ' |
Equity awards granted (in shares) | ' | ' | 0.1 | ' |
Employee performance based target cash awards | ' | ' | $300,000 | ' |
Equity awards, grant date fair value (in dollars per share) | ' | ' | $6.80 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $4,730,000 | $2,537,000 | $7,349,000 | $6,106,000 |
State jobs tax credits | ' | ' | 500,000 | 800,000 |
Tax adjustment benefit | ' | ' | 500,000 | ' |
Deferred tax benefit | ' | ' | ' | $300,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $8,273 | $6,198 | $14,704 | $13,279 |
Weighted average shares outstanding - basic (in shares) | 86,781 | 91,659 | 87,792 | 92,004 |
Effect of dilutive share-based compensation awards | 1,603 | 2,006 | 1,838 | 2,077 |
Weighted average shares outstanding - diluted (in shares) | 88,384 | 93,665 | 89,630 | 94,081 |
Basic net income per share | $0.10 | $0.07 | $0.17 | $0.14 |
Diluted net income per share | $0.09 | $0.07 | $0.16 | $0.14 |
Antidilutive securities excluded from diluted weighted-average shares outstanding (in shares) | 606 | 331 | 606 | 331 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Income taxes paid, net | $1,640 | $1,335 |
Interest paid | 4,103 | 5,010 |
Noncash investing and financing activities: | ' | ' |
Issuance of common stock, pursuant to share-based compensation plans | 1,030 | 1,590 |
Execution of capital leases | 757 | 2,865 |
Treasury stock payable | 395 | 1,144 |
Accrued deferred financing costs | $0 | $54 |
Share_Repurchase_Details
Share Repurchase (Details) (USD $) | 6 Months Ended |
Jun. 25, 2014 | |
Share Repurchase [Abstract] | ' |
Additional number of shares approved under stock repurchase program (in shares) | 10,000,000 |
Purchase of treasury stock (in shares) | 3,644,000 |
Purchase of treasury stock | $23,990,000 |
Number of accumulated shares repurchased (in shares) | 4,400,000 |
Value of shares repurchased | $29,000,000 |
Remaining number of shares approved under stock repurchase program (in shares) | 5,600,000 |
Components_of_accumulated_othe
Components of accumulated other comprehensive loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 25, 2014 | Jun. 26, 2013 | Jun. 25, 2014 | Jun. 26, 2013 | |
Components of Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Balance as of December 25, 2013 | ' | ' | ($16,842) | ' | |
Amortization of net loss, before tax | ' | ' | 462 | [1] | ' |
Net change in fair value of derivatives, before tax | ' | ' | -1,440 | ' | |
Unrealized gain (loss) on hedged transactions, tax expense (benefit) | 339 | -1,522 | 563 | -1,522 | |
Other comprehensive loss, tax benefit | ' | ' | 382 | ' | |
Balance as of June 25, 2014 | -17,438 | ' | -17,438 | ' | |
Pensions [Member] | ' | ' | ' | ' | |
Components of Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Balance as of December 25, 2013 | ' | ' | -18,690 | ' | |
Amortization of net loss, before tax | ' | ' | 462 | [1] | ' |
Minimum pension liability, adjustment, tax expense | ' | ' | -181 | ' | |
Balance as of June 25, 2014 | -18,409 | ' | -18,409 | ' | |
Derivatives [Member] | ' | ' | ' | ' | |
Components of Change in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Balance as of December 25, 2013 | ' | ' | 1,848 | ' | |
Net change in fair value of derivatives, before tax | ' | ' | -1,440 | ' | |
Unrealized gain (loss) on hedged transactions, tax expense (benefit) | ' | ' | 563 | ' | |
Balance as of June 25, 2014 | $971 | ' | $971 | ' | |
[1] | Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the two quarters ended June 25, 2014. See Note 8 for additional details. |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Details) (USD $) | Jun. 25, 2014 | Dec. 25, 2013 |
In Millions, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ' | ' |
Guarantee liabilities included as a component of other noncurrent liabilities and deferred credits | $0.10 | $0.10 |
Financial Guarantee [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Loan amounts outstanding under the loan pools | 6.8 | 6.1 |
Maximum payments guaranteed | 1.7 | ' |
Property Lease Guarantee [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Maximum payments guaranteed | $2 | ' |