SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Jan. 01, 2023

Condensed Financial Information Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

Domino’s Pizza, Inc.

PARENT COMPANY CONDENSED BALANCE SHEETS

(In thousands, except share and per share amounts)

	January 1,			January 2,
	2023			2022
ASSETS
ASSETS:
Cash	$	6		$	6
Total assets	$	6		$	6
LIABILITIES AND STOCKHOLDERS’ DEFICIT
LIABILITIES:
Equity in net deficit of subsidiaries	$	4,189,065		$	4,209,536
Due to subsidiary		6			6
Total liabilities		4,189,071			4,209,542
STOCKHOLDERS’ DEFICIT:
Common stock, par value $0.01 per share; 170,000,000 shares authorized;    35,419,718 in 2022 and 36,138,273 in 2021 issued and outstanding		354			361
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued		—			—
Additional paid-in capital		9,693			840
Retained deficit		(4,194,418	)		(4,207,917	)
Accumulated other comprehensive loss		(4,694	)		(2,820	)
Total stockholders’ deficit		(4,189,065	)		(4,209,536	)
Total liabilities and stockholders’ deficit	$	6		$	6

See accompanying notes to the Schedule I.

Domino’s Pizza, Inc.

PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except share and per share amounts)

	For the Years Ended
	January 1,		January 2,		January 3,
	2023		2022		2021
REVENUES	$	—	$	—	$	—
Total revenues		—		—		—
OPERATING EXPENSES		—		—		—
Total operating expenses		—		—		—
INCOME FROM OPERATIONS		—		—		—
Equity earnings in subsidiaries		452,263		510,467		491,296
INCOME BEFORE PROVISION FOR INCOME TAXES		452,263		510,467		491,296
PROVISION FOR INCOME TAXES		—		—		—
NET INCOME	$	452,263	$	510,467	$	491,296
COMPREHENSIVE INCOME	$	450,389	$	510,071	$	492,614
EARNINGS PER SHARE:
Common Stock – basic	$	12.66	$	13.72	$	12.61
Common Stock – diluted	$	12.53	$	13.54	$	12.39

See accompanying notes to the Schedule I.

Domino’s Pizza, Inc.

PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Years Ended
	January 1,			January 2,			January 3,
	2023			2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities	$	458,679		$	538,741		$	402,348
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends from subsidiaries		—			908,698			—
Net cash provided by investing activities		—			908,698			—
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of common stock dividends and equivalents		(157,531	)		(139,399	)		(121,925	)
Purchases of common stock		(293,740	)		(1,320,902	)		(304,590	)
Other		(7,408	)		12,862			24,167
Net cash used in financing activities		(458,679	)		(1,447,439	)		(402,348	)
CHANGE IN CASH		—			—			—
CASH, AT BEGINNING OF PERIOD		6			6			6
CASH, AT END OF PERIOD	$	6		$	6		$	6

(1)Introduction and Basis of Presentation

Domino’s Pizza, Inc., on a stand-alone basis, (the “Parent Company”) has accounted for majority-owned subsidiaries using the equity method of accounting. The accompanying condensed financial statements of the Parent Company should be read in conjunction with the consolidated financial statements of Domino’s Pizza, Inc. and its subsidiaries (the “Company”) and the notes thereto included in Item 8 of this Form 10-K. These financial statements have been provided to comply with Rule 4-08(e) of Regulation S-X.

Use of Estimates

The use of estimates is inherent in the preparation of financial statements in accordance with generally accepted accounting principles. Actual results could differ from those estimates.

New Accounting Pronouncements

The Company has adopted the below new accounting pronouncements that impacted the Parent Company financial statements.

Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. On December 30, 2019, the Company adopted ASC 326 using the modified retrospective method. The Parent Company recorded a $1.1 million adjustment to equity in net deficit of subsidiaries and recorded a $1.1 million adjustment to retained deficit related to this new accounting standard in 2020. See Note 1 to the Company’s consolidated financial statements as filed in this Form 10-K for additional information related to the adoption of this new accounting standard.

(2) Supplemental Disclosures of Cash Flow Information

During 2022, 2021 and 2020, the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to pay dividends and repurchase common stock, and in 2021, such amounts were received in connection with the Company’s recapitalization transaction. See Note 3 to the Company’s consolidated financial statements as filed in this Form 10-K for a description of the Company's recapitalization transactions. In 2021 and in connection with the Company's recapitalization, the amount of dividends received was in excess of current year equity in earnings from its subsidiaries, and thus a portion of these dividends was considered to be a return of investment and is classified as a cash inflow from investing activities.