Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DENNYS CORP | |
Entity Central Index Key | 852,772 | |
Current Fiscal Year End Date | --12-30 | |
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 | 80,547,040 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 8,601 | $ 3,074 |
Receivables | 13,187 | 18,059 |
Inventories | 2,908 | 2,952 |
Assets held for sale | 75 | 0 |
Current deferred income taxes | 23,097 | 24,310 |
Prepaid and other current assets | 8,035 | 7,676 |
Total current assets | 55,903 | 56,071 |
Property, net of accumulated depreciation of $250,253 and $255,089, respectively | 117,402 | 109,777 |
Goodwill | 31,898 | 31,451 |
Intangible assets, net | 46,211 | 46,278 |
Deferred financing costs, net | 2,220 | 1,614 |
Noncurrent deferred income taxes | 12,247 | 19,252 |
Other noncurrent assets | 23,826 | 25,415 |
Total assets | 289,707 | 289,858 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 4,125 |
Current maturities of capital lease obligations | 3,313 | 3,609 |
Accounts payable | 13,749 | 13,250 |
Other current liabilities | 57,121 | 59,432 |
Total current liabilities | 74,183 | 80,416 |
Long-term liabilities: | ||
Long-term debt, less current maturities | 150,000 | 135,875 |
Capital lease obligations, less current maturities | 16,392 | 15,204 |
Liability for insurance claims, less current portion | 16,960 | 18,005 |
Other noncurrent liabilities and deferred credits | 39,720 | 38,775 |
Total long-term liabilities | 223,072 | 207,859 |
Total liabilities | $ 297,255 | $ 288,275 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock $0.01 par value; shares authorized - 135,000; September 30, 2015: 106,437 shares issued and 81,857 shares outstanding; December 31, 2014: 105,818 shares issued and 84,707 shares outstanding | $ 1,064 | $ 1,058 |
Paid-in capital | 575,506 | 571,674 |
Deficit | (411,004) | (438,221) |
Accumulated other comprehensive loss, net of tax | (25,846) | (24,602) |
Shareholders’ equity before treasury stock | 139,720 | 109,909 |
Treasury stock, at cost, 24,580 and 21,111 shares, respectively | (147,268) | (108,326) |
Total shareholders' (deficit) equity | (7,548) | 1,583 |
Total liabilities and shareholders' equity | $ 289,707 | $ 289,858 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets [Abstract] | ||
Accumulated depreciation | $ 250,253 | $ 255,089 |
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 | 106,437 | 105,818 |
Common stock, shares outstanding | 81,857 | 84,707 |
Treasury stock, at cost, shares | 24,580 | 21,111 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | |
Revenue: | ||||
Company restaurant sales | $ 89,279 | $ 82,827 | $ 263,890 | $ 243,269 |
Franchise and license revenue | 34,499 | 34,205 | 103,378 | 100,297 |
Total operating revenue | 123,778 | 117,032 | 367,268 | 343,566 |
Costs of company restaurant sales: | ||||
Product costs | 23,289 | 21,364 | 66,609 | 63,274 |
Payroll and benefits | 34,249 | 32,507 | 101,118 | 97,584 |
Occupancy | 5,164 | 5,418 | 14,972 | 15,445 |
Other operating expenses | 12,388 | 12,514 | 36,019 | 35,322 |
Total costs of company restaurant sales | 75,090 | 71,803 | 218,718 | 211,625 |
Costs of franchise and license revenue | 10,649 | 11,309 | 32,843 | 32,639 |
General and administrative expenses | 16,008 | 13,439 | 49,771 | 41,623 |
Depreciation and amortization | 5,422 | 5,185 | 15,760 | 15,704 |
Operating (gains), losses and other charges, net | 886 | 587 | 1,722 | 1,049 |
Total operating costs and expenses, net | 108,055 | 102,323 | 318,814 | 302,640 |
Operating income | 15,723 | 14,709 | 48,454 | 40,926 |
Interest expense, net | 2,327 | 2,284 | 6,678 | 6,880 |
Other nonoperating expense (income), net | 592 | (33) | 538 | (465) |
Net income before income taxes | 12,804 | 12,458 | 41,238 | 34,511 |
Provision for income taxes | 3,854 | 4,115 | 14,021 | 11,464 |
Net income | $ 8,950 | $ 8,343 | $ 27,217 | $ 23,047 |
Basic net income per share | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.27 |
Diluted net income per share | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.26 |
Basic weighted average shares outstanding | 82,923 | 85,061 | 83,952 | 86,882 |
Diluted weighted average shares outstanding | 85,056 | 86,983 | 86,067 | 88,844 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,950 | $ 8,343 | $ 27,217 | $ 23,047 |
Other comprehensive (loss) income, net of tax: | ||||
Minimum pension liability adjustment, net of tax expense of $169, $90, $507 and $271 | 265 | 141 | 793 | 422 |
Recognition of unrealized (loss) gain on hedge transactions, net of tax (benefit) expense of $(2,266), $103, $(1,303) and $(460) | (3,542) | 159 | (2,037) | (718) |
Other comprehensive (loss) income | (3,277) | 300 | (1,244) | (296) |
Total comprehensive income | $ 5,673 | $ 8,643 | $ 25,973 | $ 22,751 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Minimum pension liability adjustment, tax expense | $ 169 | $ 90 | $ 507 | $ 271 |
Unrealized gain (loss) on hedged transactions, tax expense (benefit) | $ (2,266) | $ 103 | $ (1,303) | $ (460) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Paid-in Capital [Member] | (Deficit) [Member] | Accumulated Other Comprehensive Loss, Net [Member] |
Balance at Dec. 31, 2014 | $ 1,583 | $ 1,058 | $ (108,326) | $ 571,674 | $ (438,221) | $ (24,602) |
Balance, common stock, shares issued at Dec. 31, 2014 | 105,818 | 105,818 | ||||
Balance, treasury stock, at cost, shares at Dec. 31, 2014 | (21,111) | (21,111) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 27,217 | 27,217 | ||||
Other comprehensive income | (1,244) | (1,244) | ||||
Share-based compensation on equity classified awards | 2,391 | 2,391 | ||||
Purchase of treasury stock | (38,942) | $ (38,942) | ||||
Purchase of treasury stock (in shares) | (3,469) | |||||
Issuance of common stock for share-based compensation | 0 | $ 5 | (5) | |||
Issuance of common stock for share-based compensation (in shares) | 502 | |||||
Exercise of common stock options | 471 | $ 1 | 470 | |||
Exercise of common stock options (in shares) | 117 | |||||
Tax benefit from share-based compensation | 976 | 976 | ||||
Balance at Sep. 30, 2015 | $ (7,548) | $ 1,064 | $ (147,268) | $ 575,506 | $ (411,004) | $ (25,846) |
Balance, common stock, shares issued at Sep. 30, 2015 | 106,437 | 106,437 | ||||
Balance, treasury stock, at cost, shares at Sep. 30, 2015 | (24,580) | (24,580) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 24, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 27,217 | $ 23,047 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 15,760 | 15,704 |
Operating (gains), losses and other charges, net | 1,722 | 1,049 |
Amortization of deferred financing costs | 366 | 362 |
Loss (gain) on early extinguishments of debt | 260 | (54) |
Loss on change in the fair value of interest rate caps | 0 | 11 |
Deferred income tax expense | 9,013 | 8,118 |
Share-based compensation | 5,505 | 2,993 |
Decrease (increase) in assets: | ||
Receivables | 4,626 | 2,325 |
Inventories | 44 | 138 |
Other current assets | (358) | 1,089 |
Other assets | 726 | (1,668) |
Increase (decrease) in liabilities: | ||
Accounts payable | 1,134 | 1,797 |
Accrued salaries and vacations | (2,278) | (620) |
Accrued taxes | 1,389 | 1,753 |
Other accrued liabilities | (6,655) | (5,437) |
Other noncurrent liabilities and deferred credits | (1,544) | (2,366) |
Net cash flows provided by operating activities | 56,927 | 48,241 |
Cash flows from investing activities: | ||
Capital expenditures | (18,432) | (17,880) |
Acquisition of restaurants and real estate | (2,330) | 0 |
Proceeds from disposition of property | 0 | 61 |
Collections on notes receivable | 1,359 | 1,788 |
Issuance of notes receivable | (1,151) | (1,167) |
Net cash flows used in investing activities | (20,554) | (17,198) |
Cash flows from financing activities: | ||
Revolver borrowings | 167,500 | 22,200 |
Revolver payments | (102,750) | (20,450) |
Long-term debt payments | (57,486) | (5,340) |
Proceeds from exercise of stock options | 471 | 970 |
Tax withholding on share-based payments | (982) | (419) |
Tax benefit for share-based compensation | 976 | 627 |
Deferred financing costs | (1,265) | 0 |
Purchase of treasury stock | (37,310) | (32,073) |
Net bank overdrafts | 0 | 1,949 |
Net cash flows used in financing activities | (30,846) | (32,536) |
Increase (decrease) in cash and cash equivalents | 5,527 | (1,493) |
Cash and cash equivalents at beginning of period | 3,074 | 2,943 |
Cash and cash equivalents at end of period | $ 8,601 | $ 1,450 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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. At September 30, 2015 , the Denny's brand consisted of 1,700 restaurants, 1,539 of which were franchised/licensed restaurants and 161 of which were company operated. 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 31, 2014 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 31, 2014 . The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 30, 2015 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Newly Adopted Accounting Standards Discontinued Operations ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" Effective January 1, 2015, we adopted 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. This guidance requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The adoption of this guidance did not have a material impact on our consolidated financial statements. Accounting Standards to be Adopted Revenue Recognition ASU 2014-09, "Revenue from Contracts with Customers" and ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" 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. In August 2015, the FASB issued ASU 2015-14, which defers the effective date for ASU 2014-09. The guidance is now effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018). The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption. Early adoption is now permitted, but not before the original effective date of December 15, 2016. We are currently evaluating the adoption methods and the impact the adoption of this guidance will have on our consolidated financial statements. Consolidation ASU 2015-02,"Consolidation (Topic 810): Amendments to the Consolidation Analysis" In February 2015, the FASB issued ASU 2015-02, which improves targeted areas of the consolidation guidance and reduces the number of consolidation models. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. Debt Issuance ASU 2015-03,"Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" and ASU 2015-15,"Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update)" In April 2015, the FASB issued ASU 2015-03, which simplifies the guidance on the presentation of debt issuance costs. The new guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. The new guidance is to be applied retrospectively to all prior periods. In August 2015, the FASB issued ASU 2015-15, which addresses the SEC's comments related to the absence of authoritative guidance within ASU 2015-03 related to line-of-credit arrangements. The SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not believe the adoption of this guidance will have any impact on our consolidated financial statements and we expect to continue to classify debt issuance costs as an asset. Defined Benefit Plans ASU 2015-04,"Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" In April 2015, the FASB issued ASU 2015-04, which provides a practical expedient for entities with a fiscal year-end that does not coincide with a month-end. The practical expedient permits an entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end. ASU 2015-04 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. ASU 2015-07,"Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force)" In May 2015, the FASB issued ASU 2015-07, which modifies the practical expedient that permits an entity to measure the fair value of certain investments using the net asset value per share of the investment. The amendments remove the requirement to categorize investments within the fair value hierarchy that are measured using this practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value with the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure fair value using the practical expedient. ASU 2015-07 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. The new guidance is to be applied retrospectively to all prior periods. We are currently assessing the impact the adoption of this guidance will have on our footnote disclosures to our consolidated financial statements. Inventory ASU 2015-11,"Inventory (Topic 330): Simplifying the Measurement of Inventory" In July 2015, the FASB issued ASU 2015-11, which requires inventory that is measured using the first-in, first-out method to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual and interim periods beginning after December 15, 2016 (our fiscal 2017) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact 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 our financial statements as a result of future adoption. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables were comprised of the following: September 30, 2015 December 31, 2014 (In thousands) Current assets: Receivables: Trade accounts receivable from franchisees $ 9,492 $ 10,929 Notes receivable from franchisees 1,174 1,419 Vendor receivables 1,516 2,534 Credit card receivables 1,195 1,661 Other 89 1,816 Allowance for doubtful accounts (279 ) (300 ) Total current receivables, net $ 13,187 $ 18,059 Noncurrent assets (included as a component of other noncurrent assets): Notes receivable from franchisees $ 462 $ 425 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table reflects the changes in carrying amounts of goodwill. (In thousands) Balance, December 31, 2014 $ 31,451 Additions related to acquisition 448 Write-offs associated with the sale of restaurants (1 ) Balance, September 30, 2015 $ 31,898 Other intangible assets were comprised of the following: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,066 $ — $ 44,065 $ — Liquor licenses 126 — 126 — Intangible assets with definite lives: Franchise and license agreements 12,530 12,148 22,366 21,426 Reacquired franchise rights 2,624 987 1,857 710 Intangible assets $ 59,346 $ 13,135 $ 68,414 $ 22,136 The $9.8 million decrease in gross franchise and license agreements primarily resulted from the removal of fully amortized agreements. |
Other Current Liabilities Other
Other Current Liabilities Other Current Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Current Liabilities Other current liabilities consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Accrued salaries and vacation $ 24,059 $ 23,928 Accrued insurance, primarily current portion of liability for insurance claims 6,702 6,340 Accrued taxes 8,518 7,129 Accrued advertising 4,444 8,027 Gift cards 2,899 4,017 Other 10,499 9,991 Other current liabilities 57,121 59,432 |
Operating (Gains), Losses and O
Operating (Gains), Losses and Other Charges, Net | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [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 Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Gains on sales of assets and other, net $ (23 ) $ (33 ) $ (43 ) $ (74 ) Restructuring charges and exit costs 332 300 1,094 775 Impairment charges 577 320 671 348 Operating (gains), losses and other charges, net $ 886 $ 587 $ 1,722 $ 1,049 Restructuring charges and exit costs were comprised of the following: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Exit costs $ 43 $ 291 $ 583 $ 380 Severance and other restructuring charges 289 9 511 395 Total restructuring charges and exit costs $ 332 $ 300 $ 1,094 $ 775 The components of the change in accrued exit cost liabilities are as follows: (In thousands) Balance, December 31, 2014 $ 2,142 Exit costs (1) 583 Payments, net of sublease receipts (845 ) Interest accretion 103 Balance, September 30, 2015 1,983 Less current portion included in other current liabilities 470 Long-term portion included in other noncurrent liabilities $ 1,513 (1) Included as a component of operating (gains), losses and other charges, net. Impairment charges of $0.7 million for the three quarters ended September 30, 2015 resulted primarily from the impairment of a restaurant identified as assets held for sale. Impairment charges of $0.3 million for the three quarters ended September 24, 2014 resulted primarily from the impairment of an underperforming unit. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (In thousands ) Fair value measurements as of September 30, 2015: Deferred compensation plan investments (1) $ 9,478 $ 9,478 $ — $ — market approach Interest rate swaps (2) (2,697 ) — (2,697 ) — income approach Total $ 6,781 $ 9,478 $ (2,697 ) $ — Fair value measurements as of December 31, 2014: Deferred compensation plan investments (1) $ 9,295 $ 9,295 $ — $ — market approach Interest rate swap (2) 642 — 642 — income approach Interest rate cap (2) 0 — 0 — income approach Total $ 9,937 $ 9,295 $ 642 $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps and interest rate cap 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 8 for details on the interest rate swaps and interest rate cap. Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impairment Charges Valuation Technique Fair value measurements as of September 30, 2015: Assets held for sale (1) $ 75 $ — $ 577 market approach Fair value measurements as of December 31, 2014: Assets held and used (2) $ — $ — $ 320 income approach (1) As of September 30, 2015, assets held for sale were written down to their fair value. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements. (2) As of December 31, 2014, impaired assets related to an underperforming restaurant were written down to their fair value. 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. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Refinancing of Credit Facility In March 2015, Denny's Corporation and certain of its subsidiaries refinanced our credit facility (the "Old Credit Facility") and entered into a new five-year $250 million senior secured revolver (with a $30 million letter of credit sublimit) (the “New Credit Facility”). The New Credit Facility includes an accordion feature that allows us to increase the size of the revolver to $325 million . A commitment fee of 0.20% is paid on the unused portion of the revolving credit facility. Borrowings under the credit facility bear a tiered interest rate, which is based on the Company’s consolidated leverage ratio and was initially set at LIBOR plus 150 basis points. The maturity date for the credit facility is March 30, 2020 . The New Credit Facility was used to refinance the Old Credit Facility and is also available for working capital, capital expenditures and other general corporate purposes. The New Credit Facility is guaranteed by the Company and its material subsidiaries and is secured by 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 New Credit Facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. As a result of the debt refinancing, we recorded $0.3 million of losses on early extinguishment of debt from the write-off of deferred financing costs related to the Old Credit Facility during the quarter ended April 1, 2015. These losses are included as a component of other nonoperating expense in our Condensed Consolidated Statements of Income. As of September 30, 2015 , we had outstanding revolver loans of $150.0 million and outstanding letters of credit under the senior secured revolver of $24.5 million . These balances resulted in availability of $75.5 million under the revolving facility. Prior to considering the impact of our interest rate swap, described below, the weighted-average interest rate on outstanding revolver loans was 1.70% and 2.17% as of September 30, 2015 and December 31, 2014 , respectively. Taking into consideration our interest rate swap, which became effective on March 31, 2015, the weighted-average interest rate of outstanding revolver loans was 2.44% as of September 30, 2015 . Aggregate annual maturities of long-term debt, excluding capital lease obligations, at September 30, 2015 are as follows: In thousands Remainder of 2015 $ — 2016 — 2017 — 2018 — 2019 — Thereafter 150,000 Total long-term debt, excluding capital lease obligations $ 150,000 Interest Rate Hedges We previously entered into interest rate hedges that capped 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 to $150 million of borrowings from April 14, 2014 through March 31, 2015. We also previously entered into an interest rate swap to hedge a portion of the cash flows of our floating rate debt from March 31, 2015 to March 29, 2018. During the quarter ended April 1, 2015, we entered into an additional interest rate swap to hedge a portion of the cash flows of our floating rate debt from March 29, 2018 through March 31, 2025. 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 $120 million notional debt obligation. Based on the interest rate as determined by our consolidated leverage ratio in effect as of September 30, 2015 , under the terms of the swap, we will pay a fixed rate of 2.63% on the notional amounts from March 31, 2015 to March 29, 2018, pay a fixed rate of 3.936% from March 29, 2018 through March 31, 2025 and receive payments during these periods from a counterparty based on the 30-day LIBOR rate. As of September 30, 2015 , the fair value of the interest rate swaps was a liability of $2.7 million , which is recorded as a component of other noncurrent liabilities and deferred credits on our Condensed Consolidated Balance Sheets. See Note 14 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps. Subsequent to the end of the quarter ended September 30, 2015 , we amended the New Credit Facility and entered into a new interest rate swap. See Note 16. We believe that our estimated cash flows from operations for 2015 , 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 | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plans | Defined Benefit Plans The components of net periodic benefit cost were as follows: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Pension Plan: Service cost $ 95 $ 95 $ 285 $ 285 Interest cost 745 775 2,237 2,325 Expected return on plan assets (877 ) (988 ) (2,631 ) (2,965 ) Amortization of net loss 434 231 1,300 693 Net periodic benefit cost $ 397 $ 113 $ 1,191 $ 338 Other Defined Benefit Plans: Interest cost $ 26 $ 31 $ 80 $ 93 Amortization of net loss 20 15 59 46 Settlement loss recognized — 33 — 58 Net periodic benefit cost $ 46 $ 79 $ 139 $ 197 During 2014, our Board of Directors approved the termination of the Advantica Pension Plan as of December 31, 2014. We currently expect that the termination of the plan will be completed during the first half of 2016. Settlement gain or loss, if any, resulting from the termination will be recognized at that time. We will be required to make contributions to the qualified pension plan as a result of the termination, dependent upon market conditions and participant elections. We currently expect that these contributions will be between $6 million and $9 million . We made no contributions to our qualified pension plan during the three quarters ended September 30, 2015 . We made contributions of $2.5 million to our qualified pension plan during the three quarters ended September 24, 2014 . We made contributions of $0.1 million and $0.4 million to our other defined benefit plans during the three quarters ended September 30, 2015 and September 24, 2014 , respectively. We expect to contribute less than $0.1 million to our other defined benefit plans over the remainder of fiscal 2015 . Additional minimum pension liability of $24.2 million and $25.0 million is reported as a component of accumulated other comprehensive loss in our Condensed Consolidated Statement of Shareholders’ Equity as of September 30, 2015 and December 31, 2014 , respectively. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Stock options $ — $ — $ — $ 52 Performance share awards 1,727 446 4,905 2,358 Restricted stock units for board members 214 203 600 583 Total share-based compensation $ 1,941 $ 649 $ 5,505 $ 2,993 Performance Share Awards In February 2015, we granted certain employees approximately 0.2 million performance shares that vest based on the total shareholder return ("TSR") of our stock compared to the TSRs of a group of peer companies and 0.3 million performance shares that vest based on our Adjusted EBITDA growth rate, as defined under the terms of the award. As the TSR based performance shares contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value of $11.86 per share. The performance shares based on the Adjusted EBITDA growth rate have a grant date fair value of $11.03 per share, the market value of our stock on the date of grant. The awards granted to our named executive officers also contain a performance condition based on certain operating measures for the fiscal year ended December 30, 2015 . The performance period for these performance shares is the three year fiscal period beginning January 1, 2015 and ending December 27, 2017. They will vest and be earned (from 0% to 150% of the target award for each such increment) at the end of the performance period. During the three quarters ended September 30, 2015 , we made payments of $3.4 million in cash and issued 0.4 million shares of common stock related to performance share awards. As of September 30, 2015 , we had approximately $7.7 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which is expected to be recognized over a weighted average of 1.8 years . Restricted Stock Units for Board Members During the three quarters ended September 30, 2015 , we granted approximately 0.1 million deferred stock units (which are equity classified) with a weighted average grant date fair value of $10.60 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 three quarters ended September 30, 2015 , 0.1 million deferred stock units were converted into shares of common stock. As of September 30, 2015 , we had approximately $0.5 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 0.6 years . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three quarters ended September 30, 2015 was 34.0% , compared to 33.2% for the three quarters ended September 24, 2014 . The increase in the effective rate is primarily related to discrete tax items. The 2015 and 2014 rates benefited from state jobs tax credits claimed for the prior year's hiring activity of 0.6% and 1.4% , respectively. The 2015 rate also benefited 1.8% from taking the foreign tax credit in lieu of a deduction upon the completion of the federal income tax return. The 2014 rate also benefited 1.3% from an out-of-period share-based compensation adjustment. We do not believe the out-of-period adjustments were material to any prior year financial statements or on earnings trends. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands, except for per share amounts) Net income $ 8,950 $ 8,343 $ 27,217 $ 23,047 Weighted average shares outstanding - basic 82,923 85,061 83,952 86,882 Effect of dilutive share-based compensation awards 2,133 1,922 2,115 1,962 Weighted average shares outstanding - diluted 85,056 86,983 86,067 88,844 Basic net income per share $ 0.11 $ 0.10 $ 0.32 $ 0.27 Diluted net income per share $ 0.11 $ 0.10 $ 0.32 $ 0.26 Anti-dilutive share-based compensation awards — 252 — 549 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Quarters Ended September 30, 2015 September 24, 2014 (In thousands) Income taxes paid, net $ 4,916 $ 3,070 Interest paid $ 6,102 $ 6,145 Noncash investing and financing activities: Property acquisition payable $ 615 $ — Issuance of common stock, pursuant to share-based compensation plans $ 4,551 $ 1,030 Execution of capital leases $ 3,635 $ 2,489 Treasury stock payable $ 1,785 $ 108 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Shareholders' equity | Shareholders' Equity Share Repurchase Our Old Credit Facility (as defined in Note 8) permitted and our New Credit Facility (as defined in Note 8) permits the payment of cash dividends and the purchase of Denny’s stock subject to certain limitations. In April 2013, 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 (in addition to prior authorizations). 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, as amended) or in privately negotiated transactions, subject to market and business conditions. During the three quarters ended September 30, 2015 , we repurchased 3.5 million shares of our common stock for approximately $38.9 million . This brings the total amount repurchased under this program to 9.6 million shares of our common stock for approximately $79.9 million , leaving 0.4 million shares that can be repurchased as of September 30, 2015 . On March 31, 2015, our Board of Directors approved a new share repurchase program authorizing us to repurchase an additional $100 million of our common stock, in addition to repurchases previously authorized. Such repurchases are to be made in a manner similar to, and will be in addition to, authorizations under the April 2013 repurchase program. Subsequent to the end of the quarter ended September 30, 2015 , we entered into a $50 million accelerated share repurchase agreement. See Note 16. Repurchased shares are included as treasury stock in our Condensed Consolidated Balance Sheets and our 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 31, 2014 $ (24,994 ) $ 392 $ (24,602 ) Amortization of net loss (1) 1,300 — 1,300 Net change in fair value of derivatives — (2,762 ) (2,762 ) Reclassification of derivatives to interest expense (2) — (578 ) (578 ) Income tax (expense) benefit related to items of other comprehensive loss (507 ) 1,303 796 Balance as of September 30, 2015 $ (24,201 ) $ (1,645 ) $ (25,846 ) (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 three quarters ended September 30, 2015 . See Note 9 for additional details. (2) Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $1.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 , no events had occurred that caused us to make payments under the guarantees. There were $10.0 million and $9.8 million of loans outstanding under these programs as of September 30, 2015 and December 31, 2014 , respectively. As of September 30, 2015 , 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 less than $0.1 million as of both September 30, 2015 and December 31, 2014 , 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 Subsequent Ev
Subsequent Events Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Amendment of Credit Facility On October 30, 2015, we amended the New Credit Facility (the "Amended Credit Facility") to exercise the accordion feature that allows us to increase the size of the revolver and to effect certain other changes. The Amended Credit Facility is comprised of a $325 million senior secured revolver (with a $30 million letter of credit sublimit). The maturity date for the credit facility remains March 30, 2020 . There was no change to the interest rates for the facility. As of the closing, there were $155 million of borrowings outstanding under the amended revolver. Subsequent to the closing, additional borrowings under the Amended Credit Facility will be used to fund the $50 million accelerated share repurchase agreement (see Accelerated Share Repurchase below). Accelerated Share Repurchase On November 6, 2015, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the "ASR") agreement with Wells Fargo Bank, National Association ("Wells Fargo"), to repurchase an aggregate of $50 million of our common stock. In exchange for a $50 million up-front payment, we will receive an initial delivery of shares in the fourth quarter of 2015, which represents the minimum shares to be delivered based on the cap price. The total aggregate number of shares of our common stock to be repurchased pursuant to the ASR agreement will be based generally on the average of the daily volume-weighted average prices of our common stock, less a fixed discount, over the term of the ASR agreement, subject to a minimum number of shares. The ASR agreement is expected to be completed no later than July 2016, although the completion date may be accelerated or, under certain circumstances, extended, at Wells Fargo's option. At settlement, we may be entitled to receive additional shares of our common stock. Interest Rate Hedge On October 1, 2015, we entered into an additional interest rate swap to hedge a portion of the cash flows of our floating rate debt. We designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to payments of LIBOR due on a related $50 million notional debt obligation. Based on the interest rate as determined by our consolidated leverage ratio in effect as of September 30, 2015, under the terms of the swap, we will pay a fixed rate of 3.96% on the notional amount from March 29, 2018 through March 31, 2026 and receive payments during these periods from a counterparty based on the 30-day LIBOR rate. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Newly adopted accounting standards | Newly Adopted Accounting Standards Discontinued Operations ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" Effective January 1, 2015, we adopted 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. This guidance requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Accounting standards to be adopted | Accounting Standards to be Adopted Revenue Recognition ASU 2014-09, "Revenue from Contracts with Customers" and ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" 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. In August 2015, the FASB issued ASU 2015-14, which defers the effective date for ASU 2014-09. The guidance is now effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018). The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption. Early adoption is now permitted, but not before the original effective date of December 15, 2016. We are currently evaluating the adoption methods and the impact the adoption of this guidance will have on our consolidated financial statements. Consolidation ASU 2015-02,"Consolidation (Topic 810): Amendments to the Consolidation Analysis" In February 2015, the FASB issued ASU 2015-02, which improves targeted areas of the consolidation guidance and reduces the number of consolidation models. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. Debt Issuance ASU 2015-03,"Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" and ASU 2015-15,"Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update)" In April 2015, the FASB issued ASU 2015-03, which simplifies the guidance on the presentation of debt issuance costs. The new guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. The new guidance is to be applied retrospectively to all prior periods. In August 2015, the FASB issued ASU 2015-15, which addresses the SEC's comments related to the absence of authoritative guidance within ASU 2015-03 related to line-of-credit arrangements. The SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not believe the adoption of this guidance will have any impact on our consolidated financial statements and we expect to continue to classify debt issuance costs as an asset. Defined Benefit Plans ASU 2015-04,"Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" In April 2015, the FASB issued ASU 2015-04, which provides a practical expedient for entities with a fiscal year-end that does not coincide with a month-end. The practical expedient permits an entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end. ASU 2015-04 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. ASU 2015-07,"Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force)" In May 2015, the FASB issued ASU 2015-07, which modifies the practical expedient that permits an entity to measure the fair value of certain investments using the net asset value per share of the investment. The amendments remove the requirement to categorize investments within the fair value hierarchy that are measured using this practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value with the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure fair value using the practical expedient. ASU 2015-07 is effective for annual and interim periods beginning after December 15, 2015 (our fiscal 2016) with early adoption permitted. The new guidance is to be applied retrospectively to all prior periods. We are currently assessing the impact the adoption of this guidance will have on our footnote disclosures to our consolidated financial statements. Inventory ASU 2015-11,"Inventory (Topic 330): Simplifying the Measurement of Inventory" In July 2015, the FASB issued ASU 2015-11, which requires inventory that is measured using the first-in, first-out method to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual and interim periods beginning after December 15, 2016 (our fiscal 2017) with early adoption permitted. We do not believe the adoption of this guidance will have a material impact 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 our financial statements as a result of future adoption. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Receivables, net | Receivables were comprised of the following: September 30, 2015 December 31, 2014 (In thousands) Current assets: Receivables: Trade accounts receivable from franchisees $ 9,492 $ 10,929 Notes receivable from franchisees 1,174 1,419 Vendor receivables 1,516 2,534 Credit card receivables 1,195 1,661 Other 89 1,816 Allowance for doubtful accounts (279 ) (300 ) Total current receivables, net $ 13,187 $ 18,059 Noncurrent assets (included as a component of other noncurrent assets): Notes receivable from franchisees $ 462 $ 425 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table reflects the changes in carrying amounts of goodwill. (In thousands) Balance, December 31, 2014 $ 31,451 Additions related to acquisition 448 Write-offs associated with the sale of restaurants (1 ) Balance, September 30, 2015 $ 31,898 |
Indefinite-Lived Intangible Assets | Other intangible assets were comprised of the following: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,066 $ — $ 44,065 $ — Liquor licenses 126 — 126 — Intangible assets with definite lives: Franchise and license agreements 12,530 12,148 22,366 21,426 Reacquired franchise rights 2,624 987 1,857 710 Intangible assets $ 59,346 $ 13,135 $ 68,414 $ 22,136 |
Finite-Lived Intangible Assets | Other intangible assets were comprised of the following: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,066 $ — $ 44,065 $ — Liquor licenses 126 — 126 — Intangible assets with definite lives: Franchise and license agreements 12,530 12,148 22,366 21,426 Reacquired franchise rights 2,624 987 1,857 710 Intangible assets $ 59,346 $ 13,135 $ 68,414 $ 22,136 |
Other Current Liabilities Oth28
Other Current Liabilities Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Accrued salaries and vacation $ 24,059 $ 23,928 Accrued insurance, primarily current portion of liability for insurance claims 6,702 6,340 Accrued taxes 8,518 7,129 Accrued advertising 4,444 8,027 Gift cards 2,899 4,017 Other 10,499 9,991 Other current liabilities 57,121 59,432 |
Operating (Gains), Losses and29
Operating (Gains), Losses and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Operating gains losses and other charges net | Operating (gains), losses and other charges, net are comprised of the following: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Gains on sales of assets and other, net $ (23 ) $ (33 ) $ (43 ) $ (74 ) Restructuring charges and exit costs 332 300 1,094 775 Impairment charges 577 320 671 348 Operating (gains), losses and other charges, net $ 886 $ 587 $ 1,722 $ 1,049 |
Schedule of restructuring charges and exit costs | Restructuring charges and exit costs were comprised of the following: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Exit costs $ 43 $ 291 $ 583 $ 380 Severance and other restructuring charges 289 9 511 395 Total restructuring charges and exit costs $ 332 $ 300 $ 1,094 $ 775 |
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 31, 2014 $ 2,142 Exit costs (1) 583 Payments, net of sublease receipts (845 ) Interest accretion 103 Balance, September 30, 2015 1,983 Less current portion included in other current liabilities 470 Long-term portion included in other noncurrent liabilities $ 1,513 (1) Included as a component of operating (gains), losses and other charges, net. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (In thousands ) Fair value measurements as of September 30, 2015: Deferred compensation plan investments (1) $ 9,478 $ 9,478 $ — $ — market approach Interest rate swaps (2) (2,697 ) — (2,697 ) — income approach Total $ 6,781 $ 9,478 $ (2,697 ) $ — Fair value measurements as of December 31, 2014: Deferred compensation plan investments (1) $ 9,295 $ 9,295 $ — $ — market approach Interest rate swap (2) 642 — 642 — income approach Interest rate cap (2) 0 — 0 — income approach Total $ 9,937 $ 9,295 $ 642 $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps and interest rate cap 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 8 for details on the interest rate swaps and interest rate cap. |
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: Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impairment Charges Valuation Technique Fair value measurements as of September 30, 2015: Assets held for sale (1) $ 75 $ — $ 577 market approach Fair value measurements as of December 31, 2014: Assets held and used (2) $ — $ — $ 320 income approach (1) As of September 30, 2015, assets held for sale were written down to their fair value. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements. (2) As of December 31, 2014, impaired assets related to an underperforming restaurant were written down to their fair value. 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. |
Long-Term Debt Long Term Debt (
Long-Term Debt Long Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Aggregate annual maturities of long-term debt, excluding capital lease obligations | Aggregate annual maturities of long-term debt, excluding capital lease obligations, at September 30, 2015 are as follows: In thousands Remainder of 2015 $ — 2016 — 2017 — 2018 — 2019 — Thereafter 150,000 Total long-term debt, excluding capital lease obligations $ 150,000 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost were as follows: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Pension Plan: Service cost $ 95 $ 95 $ 285 $ 285 Interest cost 745 775 2,237 2,325 Expected return on plan assets (877 ) (988 ) (2,631 ) (2,965 ) Amortization of net loss 434 231 1,300 693 Net periodic benefit cost $ 397 $ 113 $ 1,191 $ 338 Other Defined Benefit Plans: Interest cost $ 26 $ 31 $ 80 $ 93 Amortization of net loss 20 15 59 46 Settlement loss recognized — 33 — 58 Net periodic benefit cost $ 46 $ 79 $ 139 $ 197 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands) Stock options $ — $ — $ — $ 52 Performance share awards 1,727 446 4,905 2,358 Restricted stock units for board members 214 203 600 583 Total share-based compensation $ 1,941 $ 649 $ 5,505 $ 2,993 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended Three Quarters Ended September 30, 2015 September 24, 2014 September 30, 2015 September 24, 2014 (In thousands, except for per share amounts) Net income $ 8,950 $ 8,343 $ 27,217 $ 23,047 Weighted average shares outstanding - basic 82,923 85,061 83,952 86,882 Effect of dilutive share-based compensation awards 2,133 1,922 2,115 1,962 Weighted average shares outstanding - diluted 85,056 86,983 86,067 88,844 Basic net income per share $ 0.11 $ 0.10 $ 0.32 $ 0.27 Diluted net income per share $ 0.11 $ 0.10 $ 0.32 $ 0.26 Anti-dilutive share-based compensation awards — 252 — 549 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Three Quarters Ended September 30, 2015 September 24, 2014 (In thousands) Income taxes paid, net $ 4,916 $ 3,070 Interest paid $ 6,102 $ 6,145 Noncash investing and financing activities: Property acquisition payable $ 615 $ — Issuance of common stock, pursuant to share-based compensation plans $ 4,551 $ 1,030 Execution of capital leases $ 3,635 $ 2,489 Treasury stock payable $ 1,785 $ 108 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 31, 2014 $ (24,994 ) $ 392 $ (24,602 ) Amortization of net loss (1) 1,300 — 1,300 Net change in fair value of derivatives — (2,762 ) (2,762 ) Reclassification of derivatives to interest expense (2) — (578 ) (578 ) Income tax (expense) benefit related to items of other comprehensive loss (507 ) 1,303 796 Balance as of September 30, 2015 $ (24,201 ) $ (1,645 ) $ (25,846 ) (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 three quarters ended September 30, 2015 . See Note 9 for additional details. (2) Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $1.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details. |
Introduction and Basis of Pre37
Introduction and Basis of Presentation (Details) | Sep. 30, 2015restaurant |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,700 |
Franchised/licensed restaurants [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,539 |
Company restaurants [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 161 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Trade accounts receivable from franchisees, gross, current | $ 9,492 | $ 10,929 |
Notes receivable from franchisees, gross, current | 1,174 | 1,419 |
Allowance for doubtful accounts | (279) | (300) |
Total current receivables, net | 13,187 | 18,059 |
Noncurrent assets (included as a component of other noncurrent assets): | ||
Notes receivable from franchisees, noncurrent | 462 | 425 |
Vendor receivables [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | 1,516 | 2,534 |
Credit card receivables [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | 1,195 | 1,661 |
Other [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | $ 89 | $ 1,816 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance, December 31, 2014 | $ 31,451 | |
Additions related to acquisition | 448 | |
Write-offs associated with the sale of restaurants | (1) | |
Balance, September 30, 2015 | 31,898 | |
Intangible Assets [Line Items] | ||
Gross carrying amount - Trade names | 44,066 | $ 44,065 |
Gross carrying amount - Liquor licenses | 126 | 126 |
Accumulated amortization - Intangible assets with definite lives | 13,135 | 22,136 |
Intangible assets | 59,346 | 68,414 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount - Intangible assets with definite lives | 12,530 | 22,366 |
Accumulated amortization - Intangible assets with definite lives | 12,148 | 21,426 |
Decrease in franchise and license agreements | 9,800 | |
Franchise Rights [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount - Intangible assets with definite lives | 2,624 | 1,857 |
Accumulated amortization - Intangible assets with definite lives | $ 987 | $ 710 |
Other Current Liabilities Oth40
Other Current Liabilities Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities, Current [Abstract] | ||
Accrued salaries and vacation | $ 24,059 | $ 23,928 |
Accrued insurance, primarily current portion of liability for insurance claims | 6,702 | 6,340 |
Accrued taxes | 8,518 | 7,129 |
Accrued advertising | 4,444 | 8,027 |
Gift cards | 2,899 | 4,017 |
Other | 10,499 | 9,991 |
Other current liabilities | $ 57,121 | $ 59,432 |
Operating (Gains), Losses and41
Operating (Gains), Losses and Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | ||
Other Income and Expenses [Abstract] | |||||
Gains on sales of assets and other, net | $ (23) | $ (33) | $ (43) | $ (74) | |
Restructuring charges and exit costs | 332 | 300 | 1,094 | 775 | |
Impairment charges | 577 | 320 | 671 | 348 | |
Operating (gains), losses and other charges, net | 886 | 587 | 1,722 | 1,049 | |
Restructuring Reserve [Roll Forward] | |||||
Balance, December 31, 2014 | 2,142 | ||||
Exit costs (1) | 43 | 291 | 583 | [1] | 380 |
Payments, net of sublease receipts | (845) | ||||
Interest accretion | 103 | ||||
Balance, September 30, 2015 | 1,983 | 1,983 | |||
Less current portion included in other current liabilities | 470 | 470 | |||
Long-term portion included in other noncurrent liabilities | 1,513 | 1,513 | |||
Restructuring Charges [Abstract] | |||||
Exit costs | 43 | 291 | 583 | [1] | 380 |
Severance and other restructuring charges | 289 | 9 | 511 | 395 | |
Total restructuring charges and exit costs | $ 332 | $ 300 | $ 1,094 | $ 775 | |
[1] | Included as a component of operating (gains), losses and other charges, net. |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total, assets | $ 6,781 | $ 9,937 | |
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, assets | 9,478 | 9,295 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total, assets | 642 | ||
Total, liabilities | (2,697) | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total, assets | 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 | [1] | $ 9,478 | $ 9,295 |
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 | [1] | $ 9,478 | $ 9,295 |
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 | [1] | 0 | 0 |
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 | [1] | 0 | 0 |
Recurring [Member] | Interest rate swaps [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps liability | [2] | $ (2,697) | |
Interest rate swaps and interest rate caps asset | [2] | $ 642 | |
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 liability | [2] | $ 0 | |
Interest rate swaps and interest rate caps asset | [2] | $ 0 | |
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 liability | [2] | (2,697) | |
Interest rate swaps and interest rate caps asset | [2] | 642 | |
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 liability | [2] | 0 | |
Interest rate swaps and interest rate caps asset | [2] | 0 | |
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 asset | [2] | $ 0 | |
Valuation technique | 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 asset | [2] | $ 0 | |
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 asset | [2] | 0 | |
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 asset | [2] | 0 | |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of assets held for sale | $ 577 | ||
Impairment of assets held and used | $ 320 | ||
Valuation technique | market approach | income approach | |
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | [3] | $ 75 | |
Assets held and used | [4] | $ 0 | |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | [3] | $ 0 | |
Assets held and used | [4] | $ 0 | |
[1] | The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. | ||
[2] | The fair values of our interest rate swaps and interest rate cap 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 8 for details on the interest rate swaps and interest rate cap. | ||
[3] | As of September 30, 2015, assets held for sale were written down to their fair value. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements. | ||
[4] | As of December 31, 2014, impaired assets related to an underperforming restaurant were written down to their fair value. 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. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Losses on early extinguishment of debt | $ 260 | $ (54) | |
Senior secured revolver [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | 250,000 | ||
Accordion feature that allows increase in size of facility | $ 325,000 | ||
Commitment fee for unused portion of revolving credit facility (in hundredths) | 0.20% | ||
Outstanding amount under credit facility | $ 150,000 | ||
Availability under the revolving facility | $ 75,500 | ||
Weighted-average interest rate (in hundredths) | 1.70% | 2.17% | |
Basis spread on variable rate debt | 1.50% | ||
Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 30,000 | ||
Outstanding amount of letters of credit | 24,500 | ||
Secured Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Losses on early extinguishment of debt | $ 300 | ||
Interest Rate Cap [Member] | Interest Rate Cap 2013-2014 [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate cap, basis spread on variable rate (percent) | 2.00% | ||
Derivative, notional amount | $ 125,000 | ||
Interest Rate Cap [Member] | Interest Rate Cap 2014-2015 [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate cap, basis spread on variable rate (percent) | 2.00% | ||
Derivative, notional amount | $ 150,000 | ||
Interest Rate Swap [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate swaps liability | $ (2,700) | ||
Interest Rate Swap [Member] | Senior secured revolver [Member] | |||
Line of Credit Facility [Line Items] | |||
Weighted-average interest rate (in hundredths) | 2.44% | ||
Interest Rate Swap [Member] | Interest Rate Swaps 2015-2018 [Member] | |||
Line of Credit Facility [Line Items] | |||
Derivative, notional amount | $ 120,000 | ||
Average fixed interest rate on interest rate swaps | 2.63% | ||
Interest Rate Swap [Member] | Interest Rate Swaps 2018-2025 [Member] | |||
Line of Credit Facility [Line Items] | |||
Derivative, notional amount | $ 120,000 | ||
Average fixed interest rate on interest rate swaps | 3.936% |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Aggregate Annual Maturities of Long-Term Debt, Excluding Capital Lease Obligations) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2015 | $ 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 150,000 |
Total long-term debt, excluding capital leases | $ 150,000 |
Defined Benefit Plans (Details)
Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | Dec. 31, 2014 | |
Components of net periodic benefit cost [Abstract] | |||||
Additional minimum pension liability | $ 24,200 | $ 24,200 | $ 25,000 | ||
Pension Plan [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 95 | $ 95 | 285 | $ 285 | |
Interest cost | 745 | 775 | 2,237 | 2,325 | |
Expected return on plan assets | (877) | (988) | (2,631) | (2,965) | |
Amortization of net loss | 434 | 231 | 1,300 | 693 | |
Net periodic benefit cost | 397 | 113 | 1,191 | 338 | |
Employer contributions | 0 | 2,500 | |||
Other Defined Benefit Plans [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Interest cost | 26 | 31 | 80 | 93 | |
Amortization of net loss | 20 | 15 | 59 | 46 | |
Settlement loss recognized | 0 | 33 | 0 | 58 | |
Net periodic benefit cost | $ 46 | $ 79 | 139 | 197 | |
Employer contributions | 100 | $ 400 | |||
Estimated employer contributions remainder of current fiscal year | 100 | ||||
Minimum [Member] | Pension Plan [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Estimated employer contributions in next fiscal year | 6,000 | ||||
Maximum [Member] | Pension Plan [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Estimated employer contributions in next fiscal year | $ 9,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | |
Total share-based compensation [Abstract] | ||||
Total share-based compensation | $ 1,941 | $ 649 | $ 5,505 | $ 2,993 |
Stock options [Member] | ||||
Total share-based compensation [Abstract] | ||||
Total share-based compensation | 0 | 0 | 0 | 52 |
Performance shares [Member] | ||||
Total share-based compensation [Abstract] | ||||
Total share-based compensation | 1,727 | 446 | $ 4,905 | 2,358 |
Restricted Stock Units [Abstract] | ||||
Performance period | 3 years | |||
Cash payments | $ 3,400 | |||
Maximum common stock shares issued (in shares) | 0.4 | |||
Unrecognized compensation cost [Abstract] | ||||
Unrecognized compensation cost related to unvested share awards outstanding | 7,700 | $ 7,700 | ||
Unrecognized compensation cost, expected weighted average period | 1 year 10 months 2 days | |||
Performance shares [Member] | Minimum [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Percentage of target awards to be earned (in hundredths) | 0.00% | |||
Performance shares [Member] | Maximum [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Percentage of target awards to be earned (in hundredths) | 150.00% | |||
Performance shares [Member] | Performance shares that vest based on TSR [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.2 | |||
Equity awards, grant date fair value (in dollars per share) | $ 11.86 | |||
Performance shares [Member] | Performance shares that vest based on EBITDA growth [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.3 | |||
Equity awards, grant date fair value (in dollars per share) | $ 11.03 | |||
Restricted stock units for board members [Member] | ||||
Total share-based compensation [Abstract] | ||||
Total share-based compensation | 214 | $ 203 | $ 600 | $ 583 |
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.1 | |||
Equity awards, grant date fair value (in dollars per share) | $ 10.60 | |||
Maximum common stock shares issued (in shares) | 0.1 | |||
Unrecognized compensation cost [Abstract] | ||||
Unrecognized compensation cost related to unvested share awards outstanding | $ 500 | $ 500 | ||
Unrecognized compensation cost, expected weighted average period | 7 months |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 24, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 34.00% | 33.20% |
State jobs tax credits, percent | 0.60% | 1.40% |
Tax rate benefit, foreign tax credit, percent | 1.80% | |
Tax rate benefit, adjustment, percent | 1.30% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 24, 2014 | Sep. 30, 2015 | Sep. 24, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 8,950 | $ 8,343 | $ 27,217 | $ 23,047 |
Weighted average shares outstanding - basic (in shares) | 82,923 | 85,061 | 83,952 | 86,882 |
Effect of dilutive share-based compensation awards | 2,133 | 1,922 | 2,115 | 1,962 |
Weighted average shares outstanding - diluted (in shares) | 85,056 | 86,983 | 86,067 | 88,844 |
Basic net income per share | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.27 |
Diluted net income per share | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.26 |
Antidilutive share-based compensation awards (in shares) | 0 | 252 | 0 | 549 |
Supplemental Cash Flow Inform49
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 24, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 4,916 | $ 3,070 |
Interest paid | 6,102 | 6,145 |
Noncash investing and financing activities: | ||
Property acquisition payable | 615 | 0 |
Issuance of common stock, pursuant to share-based compensation plans | 4,551 | 1,030 |
Execution of capital leases | 3,635 | 2,489 |
Treasury stock payable | $ 1,785 | $ 108 |
Shareholders' Equity (Share Rep
Shareholders' Equity (Share Repurchase) (Details) - USD ($) $ in Thousands, shares in Millions | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock | $ 38,942 | |
Share Repurchase Program 2013 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase, authorized amount (in shares) | 10 | |
Purchase of treasury stock (in shares) | 3.5 | |
Purchase of treasury stock | $ 38,900 | |
Number of accumulated shares repurchased (in shares) | 9.6 | |
Value of shares repurchased | $ 79,900 | |
Remaining number of shares approved under stock repurchase program (in shares) | 0.4 | |
Share Repurchase Program 2015 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase, authorized amount (in dollars) | $ 100,000 | |
Subsequent Event [Member] | November 2015 Accelerated Share Repurchase [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase, authorized amount (in dollars) | $ 50,000 |
Shareholders' Equity (Component
Shareholders' Equity (Components of Accumulated Other Comprehensive Loss) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance as of December 31, 2014 | $ (24,602) | |
Amortization of net loss, before tax | 1,300 | [1] |
Net change in fair value of derivatives, before tax | (2,762) | |
Reclassification of derivatives to interest expense, before tax | (578) | [2] |
Income tax (expense) benefit related to items of other comprehensive loss | 796 | |
Balance as of September 30, 2015 | (25,846) | |
Estimated reclassification from accumulated other comprehensive income to interest expense related to the interest rate swaps over the next 12 months | 1,100 | |
Pensions [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance as of December 31, 2014 | (24,994) | |
Amortization of net loss, before tax | 1,300 | [1] |
Income tax (expense) benefit related to items of other comprehensive loss | (507) | |
Balance as of September 30, 2015 | (24,201) | |
Derivatives [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance as of December 31, 2014 | 392 | |
Net change in fair value of derivatives, before tax | (2,762) | |
Reclassification of derivatives to interest expense, before tax | (578) | [2] |
Income tax (expense) benefit related to items of other comprehensive loss | 1,303 | |
Balance as of September 30, 2015 | $ (1,645) | |
[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 three quarters ended September 30, 2015. See Note 9 for additional details. | |
[2] | Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $1.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details. |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Guarantor Obligations [Line Items] | ||
Guarantee liabilities included as a component of other noncurrent liabilities and deferred credits | $ 0.1 | $ 0.1 |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Loan amounts outstanding under the loan pools | 10 | $ 9.8 |
Maximum payments guaranteed | 1.7 | |
Property Lease Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum payments guaranteed | $ 2 |
Subsequent Events Subsequent 53
Subsequent Events Subsequent Event (Details) - USD ($) $ in Millions | 10 Months Ended | |||
Oct. 30, 2015 | Nov. 06, 2015 | Oct. 01, 2015 | Sep. 30, 2015 | |
Senior secured revolver [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 250 | |||
Outstanding amount under credit facility | 150 | |||
Letter of Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 30 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Maturity date | Mar. 30, 2020 | |||
Subsequent Event [Member] | Interest Rate Swap [Member] | Interest Rate Swaps 2018-2026 [Member] | ||||
Subsequent Event [Line Items] | ||||
Derivative, notional amount | $ 50 | |||
Average fixed interest rate on interest rate swaps | 3.96% | |||
Subsequent Event [Member] | November 2015 Accelerated Share Repurchase [Member] | ||||
Subsequent Event [Line Items] | ||||
Accelerated share repurchase, authorized amount | $ 50 | |||
Subsequent Event [Member] | Senior secured revolver [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 325 | |||
Outstanding amount under credit facility | 155 | |||
Subsequent Event [Member] | Letter of Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 30 |