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
	December 29, 2019		December 30, 2018		December 31, 2017
REVENUES	$	—	$	—	$	—

Total revenues		—		—		—

OPERATING EXPENSES		—		—		—

Total operating expenses		—		—		—

INCOME FROM OPERATIONS		—		—		—
Equity earnings in subsidiaries		400,709		361,972		277,905

INCOME BEFORE PROVISION FOR INCOME TAXES		400,709		361,972		277,905
PROVISION FOR INCOME TAXES		—		—		—

NET INCOME	$	400,709	$	361,972	$	277,905

COMPREHENSIVE INCOME	$	401,396	$	359,924	$	278,985

EARNINGS PER SHARE:
Common Stock – basic	$	9.83	$	8.65	$	6.05
Common Stock – diluted	$	9.56	$	8.35	$	5.83

See accompanying notes to the Schedule I.

Domino’s Pizza, Inc.

PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)


	For the Years Ended
	December 29, 2019			December 30, 2018			December 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities	$	421,661		$	382,716		$	299,576

CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends from subsidiaries		375,948			297,792			852,325

Net cash provided by investing activities		375,948			297,792			852,325

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of common stock dividends		(105,715	)		(92,166	)		(84,298	)
Purchase of common stock		(699,007	)		(591,212	)		(1,064,253	)
Other		7,113			2,870			(3,350	)

Net cash used in financing activities		(797,609	)		(680,508	)		(1,151,901	)

CHANGE IN CASH		—			—			—
CASH, AT BEGINNING OF PERIOD		6			6			6

CASH, AT END OF PERIOD	$	6		$	6		$	6

See accompanying notes to the Schedule I.

Domino’s Pizza, Inc.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

(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

During 2018, the Company adopted the below new accounting pronouncements that impacted the Parent Company financial statements.

Accounting Standards Update

2014-09,

Revenue from Contracts with Customers (Topic 606)

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update

2014-09,

Revenue from Contracts with Customers (Topic 606)

and has since issued various amendments which provide additional clarification and implementation guidance. This standard has been codified as ASC 606. This guidance outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded most revenue recognition guidance issued by the FASB, including industry specific guidance. On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method.

The Parent Company recorded a $6.7 million adjustment to equity in net deficit of subsidiaries and recorded a $6.7 million adjustment to retained deficit related to this new accounting standard in 2018. 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.

ASU

2018-02,

Income Statement – Reporting Comprehensive Income (Topic 220)

In February 2018, the FASB issued ASU

2018-02,

Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

. The amendments in this updated standard allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The Parent Company adopted this standard in 2018 and, as a result, recorded a $0.4 million reclassification from accumulated other comprehensive loss to the beginning balance of retained deficit in 2018.

(2)	Supplemental Disclosures of Cash Flow Information

During 2019, 2018 and 2017, the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to repurchase common stock in connection with the Company’s 2019, 2018 and 2017 recapitalization transactions. See Note 4 to the Company’s consolidated financial statements as filed in this Form

10-K

for a description of the recapitalization transactions that occurred in 2019, 2018 and 2017.