DELAWARE | 75-1914582 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6820 LBJ FREEWAY, DALLAS, TEXAS | 75240 | |
(Address of principal executive offices) | (Zip Code) | |
(972) 980-9917 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o |
Class | Outstanding at April 30, 2018 |
Common Stock, $0.10 par value | 43,853,794 shares |
Page | |
March 28, 2018 | June 28, 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 13,400 | $ | 9,064 | |||
Accounts receivable, net | 44,336 | 44,658 | |||||
Inventories | 24,407 | 24,997 | |||||
Restaurant supplies | 46,685 | 46,380 | |||||
Prepaid expenses | 15,191 | 19,226 | |||||
Total current assets | 144,019 | 144,325 | |||||
Property and Equipment, at Cost: | |||||||
Land | 149,150 | 149,098 | |||||
Buildings and leasehold improvements | 1,673,950 | 1,655,227 | |||||
Furniture and equipment | 719,924 | 713,228 | |||||
Construction-in-progress | 10,563 | 21,767 | |||||
2,553,587 | 2,539,320 | ||||||
Less accumulated depreciation and amortization | (1,609,722 | ) | (1,538,706 | ) | |||
Net property and equipment | 943,865 | 1,000,614 | |||||
Other Assets: | |||||||
Goodwill | 164,011 | 163,953 | |||||
Deferred income taxes, net | 29,239 | 37,029 | |||||
Intangibles, net | 24,744 | 27,512 | |||||
Other | 31,001 | 30,200 | |||||
Total other assets | 248,995 | 258,694 | |||||
Total assets | $ | 1,336,879 | $ | 1,403,633 | |||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | |||||||
Current Liabilities: | |||||||
Current installments of long-term debt | $ | 7,301 | $ | 9,649 | |||
Accounts payable | 97,166 | 104,231 | |||||
Gift card liability | 126,627 | 126,482 | |||||
Accrued payroll | 75,995 | 70,281 | |||||
Other accrued liabilities | 139,051 | 111,515 | |||||
Income taxes payable | 2,857 | 14,203 | |||||
Total current liabilities | 448,997 | 436,361 | |||||
Long-term debt, less current installments | 1,361,705 | 1,319,829 | |||||
Other liabilities | 134,719 | 141,124 | |||||
Commitments and Contingencies (Note 11) | |||||||
Shareholders’ Deficit: | |||||||
Common stock - 250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 43,843,747 shares outstanding at March 28, 2018 and 176,246,649 shares issued and 48,440,721 shares outstanding at June 28, 2017 | 17,625 | 17,625 | |||||
Additional paid-in capital | 509,479 | 502,074 | |||||
Accumulated other comprehensive loss | (5,445 | ) | (11,921 | ) | |||
Retained earnings | 2,655,387 | 2,627,073 | |||||
3,177,046 | 3,134,851 | ||||||
Less treasury stock, at cost (132,402,902 shares at March 28, 2018 and 127,805,928 shares at June 28, 2017) | (3,785,588 | ) | (3,628,532 | ) | |||
Total shareholders’ deficit | (608,542 | ) | (493,681 | ) | |||
Total liabilities and shareholders’ deficit | $ | 1,336,879 | $ | 1,403,633 |
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | ||||||||||||||
March 28, 2018 | March 29, 2017 | March 28, 2018 | March 29, 2017 | ||||||||||||
Revenues: | |||||||||||||||
Company sales | $ | 790,495 | $ | 790,624 | $ | 2,250,125 | $ | 2,276,743 | |||||||
Franchise and other revenues | 22,039 | 20,017 | 68,199 | 63,433 | |||||||||||
Total revenues | 812,534 | 810,641 | 2,318,324 | 2,340,176 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Company restaurants (excluding depreciation and amortization) | |||||||||||||||
Cost of sales | 207,328 | 201,903 | 587,808 | 587,742 | |||||||||||
Restaurant labor | 265,367 | 261,632 | 766,858 | 760,894 | |||||||||||
Restaurant expenses | 190,205 | 192,372 | 566,983 | 582,146 | |||||||||||
Company restaurant expenses | 662,900 | 655,907 | 1,921,649 | 1,930,782 | |||||||||||
Depreciation and amortization | 37,553 | 39,335 | 113,728 | 117,526 | |||||||||||
General and administrative | 36,619 | 35,931 | 102,065 | 102,014 | |||||||||||
Other gains and charges | 2,752 | 6,600 | 25,167 | 13,984 | |||||||||||
Total operating costs and expenses | 739,824 | 737,773 | 2,162,609 | 2,164,306 | |||||||||||
Operating income | 72,710 | 72,868 | 155,715 | 175,870 | |||||||||||
Interest expense | 14,549 | 13,658 | 42,754 | 36,108 | |||||||||||
Other, net | (755 | ) | (402 | ) | (2,246 | ) | (1,084 | ) | |||||||
Income before provision for income taxes | 58,916 | 59,612 | 115,207 | 140,846 | |||||||||||
Provision for income taxes | 12,000 | 17,243 | 33,048 | 40,607 | |||||||||||
Net income | $ | 46,916 | $ | 42,369 | $ | 82,159 | $ | 100,239 | |||||||
Basic net income per share | $ | 1.03 | $ | 0.87 | $ | 1.76 | $ | 1.96 | |||||||
Diluted net income per share | $ | 1.02 | $ | 0.86 | $ | 1.74 | $ | 1.93 | |||||||
Basic weighted average shares outstanding | 45,433 | 48,954 | 46,719 | 51,211 | |||||||||||
Diluted weighted average shares outstanding | 45,973 | 49,506 | 47,195 | 51,854 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustment | $ | (243 | ) | $ | 734 | $ | 577 | $ | (1,411 | ) | |||||
Other comprehensive income (loss) | (243 | ) | 734 | 577 | (1,411 | ) | |||||||||
Comprehensive income | $ | 46,673 | $ | 43,103 | $ | 82,736 | $ | 98,828 | |||||||
Dividends per share | $ | 0.38 | $ | 0.34 | $ | 1.14 | $ | 1.02 |
Thirty-Nine Week Period Ended | |||||||
March 28, 2018 | March 29, 2017 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 82,159 | $ | 100,239 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 113,728 | 117,526 | |||||
Stock-based compensation | 11,037 | 13,237 | |||||
Deferred income taxes, net | 7,788 | (8,684 | ) | ||||
Restructure charges and other impairments | 16,047 | 8,837 | |||||
Net loss (gain) on disposal of assets | 1,360 | (628 | ) | ||||
Undistributed loss (earnings) on equity investments | 330 | (82 | ) | ||||
Other | 2,431 | 2,082 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 2,710 | 11,078 | |||||
Inventories | (128 | ) | (1,386 | ) | |||
Restaurant supplies | (1,118 | ) | (1,338 | ) | |||
Prepaid expenses | 3,915 | 3,273 | |||||
Other assets | (148 | ) | (340 | ) | |||
Accounts payable | 290 | (7,487 | ) | ||||
Gift card liability | 145 | 9,109 | |||||
Accrued payroll | 5,708 | 4,592 | |||||
Other accrued liabilities | 6,679 | 10,576 | |||||
Current income taxes | (10,961 | ) | (14,603 | ) | |||
Other liabilities | (4,270 | ) | (338 | ) | |||
Net cash provided by operating activities | 237,702 | 245,663 | |||||
Cash Flows from Investing Activities: | |||||||
Payments for property and equipment | (69,503 | ) | (79,730 | ) | |||
Proceeds from sale of assets | 14,825 | 3,077 | |||||
Insurance recoveries | 1,747 | — | |||||
Proceeds from note receivable | 1,185 | — | |||||
Net cash used in investing activities | (51,746 | ) | (76,653 | ) | |||
Cash Flows from Financing Activities: | |||||||
Borrowings on revolving credit facility | 524,000 | 200,000 | |||||
Payments on revolving credit facility | (484,000 | ) | (328,000 | ) | |||
Purchases of treasury stock | (162,004 | ) | (350,768 | ) | |||
Payments of dividends | (53,098 | ) | (54,087 | ) | |||
Payments on long-term debt | (7,834 | ) | (2,847 | ) | |||
Proceeds from issuances of treasury stock | 1,316 | 4,505 | |||||
Proceeds from issuance of long-term debt | — | 350,000 | |||||
Payments for debt issuance costs | — | (10,216 | ) | ||||
Net cash used in financing activities | (181,620 | ) | (191,413 | ) | |||
Net change in cash and cash equivalents | 4,336 | (22,403 | ) | ||||
Cash and cash equivalents at beginning of period | 9,064 | 31,446 | |||||
Cash and cash equivalents at end of period | $ | 13,400 | $ | 9,043 |
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | ||||||||||
March 28, 2018 | March 29, 2017 | March 28, 2018 | March 29, 2017 | ||||||||
Basic weighted average shares outstanding | 45,433 | 48,954 | 46,719 | 51,211 | |||||||
Dilutive stock options | 115 | 168 | 98 | 212 | |||||||
Dilutive restricted shares | 425 | 384 | 378 | 431 | |||||||
540 | 552 | 476 | 643 | ||||||||
Diluted weighted average shares outstanding | 45,973 | 49,506 | 47,195 | 51,854 | |||||||
Awards excluded due to anti-dilutive effect on diluted net income per share | 974 | 993 | 1,260 | 970 |
Thirteen Week Period Ended March 28, 2018 | Thirty-Nine Week Period Ended March 28, 2018 | ||||||
Income tax expense at statutory rate | $ | 16,555 | $ | 32,373 | |||
FICA tax credit | (7,087 | ) | (13,857 | ) | |||
State income taxes, net of federal benefit | 2,284 | 4,467 | |||||
Stock based compensation excess tax (windfall) shortfall | (43 | ) | 1,127 | ||||
Revaluation of deferred taxes | (321 | ) | 8,417 | ||||
Other | 612 | 521 | |||||
$ | 12,000 | $ | 33,048 |
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | ||||||||||||||
March 28, 2018 | March 29, 2017 | March 28, 2018 | March 29, 2017 | ||||||||||||
Restaurant closure charges | $ | 2,777 | $ | 794 | $ | 7,321 | $ | 3,621 | |||||||
Lease guarantee charges | 510 | — | 1,943 | — | |||||||||||
Accelerated depreciation | 483 | — | 1,449 | — | |||||||||||
Hurricane-related costs | 240 | — | 5,460 | — | |||||||||||
Foreign currency transaction gain | (948 | ) | — | (66 | ) | — | |||||||||
Restaurant impairment charges | — | — | 9,133 | 1,851 | |||||||||||
Gain on the sale of assets, net | — | (55 | ) | (303 | ) | (2,624 | ) | ||||||||
Severance | — | 5,929 | — | 6,222 | |||||||||||
Information technology restructuring | — | — | — | 2,700 | |||||||||||
Other | (310 | ) | (68 | ) | 230 | 2,214 | |||||||||
$ | 2,752 | $ | 6,600 | $ | 25,167 | $ | 13,984 |
Thirteen Week Period Ended March 28, 2018 | |||||||||||||||
Chili’s | Maggiano’s | Other | Consolidated | ||||||||||||
Company sales | $ | 688,879 | $ | 101,616 | $ | — | $ | 790,495 | |||||||
Franchise and other revenues | 17,204 | 4,835 | — | 22,039 | |||||||||||
Total revenues | 706,083 | 106,451 | — | 812,534 | |||||||||||
Company restaurant expenses | 572,812 | 89,991 | 97 | 662,900 | |||||||||||
Depreciation and amortization | 31,011 | 3,957 | 2,585 | 37,553 | |||||||||||
General and administrative | 10,601 | 1,420 | 24,598 | 36,619 | |||||||||||
Other gains and charges | (75 | ) | 6 | 2,821 | 2,752 | ||||||||||
Total operating costs and expenses | 614,349 | 95,374 | 30,101 | 739,824 | |||||||||||
Operating income (loss) | 91,734 | 11,077 | (30,101 | ) | 72,710 | ||||||||||
Interest expense | — | — | 14,549 | 14,549 | |||||||||||
Other, net | — | — | (755 | ) | (755 | ) | |||||||||
Income (loss) before provision for income taxes | $ | 91,734 | $ | 11,077 | $ | (43,895 | ) | $ | 58,916 |
Thirteen Week Period Ended March 29, 2017 | |||||||||||||||
Chili’s | Maggiano’s | Other | Consolidated | ||||||||||||
Company sales | $ | 689,662 | $ | 100,962 | $ | — | $ | 790,624 | |||||||
Franchise and other revenues | 15,224 | 4,793 | — | 20,017 | |||||||||||
Total revenues | 704,886 | 105,755 | — | 810,641 | |||||||||||
Company restaurant expenses | 565,327 | 90,454 | 126 | 655,907 | |||||||||||
Depreciation and amortization | 32,386 | 4,078 | 2,871 | 39,335 | |||||||||||
General and administrative | 8,771 | 1,624 | 25,536 | 35,931 | |||||||||||
Other gains and charges | 4,233 | — | 2,367 | 6,600 | |||||||||||
Total operating costs and expenses | 610,717 | 96,156 | 30,900 | 737,773 | |||||||||||
Operating income (loss) | 94,169 | 9,599 | (30,900 | ) | 72,868 | ||||||||||
Interest expense | — | — | 13,658 | 13,658 | |||||||||||
Other, net | — | — | (402 | ) | (402 | ) | |||||||||
Income (loss) before provision for income taxes | $ | 94,169 | $ | 9,599 | $ | (44,156 | ) | $ | 59,612 |
Thirty-Nine Week Period Ended March 28, 2018 | |||||||||||||||
Chili’s | Maggiano’s | Other | Consolidated | ||||||||||||
Company sales | $ | 1,940,076 | $ | 310,049 | $ | — | $ | 2,250,125 | |||||||
Franchise and other revenues | 51,992 | 16,207 | — | 68,199 | |||||||||||
Total revenues | 1,992,068 | 326,256 | — | 2,318,324 | |||||||||||
Company restaurant expenses | 1,648,094 | 273,187 | 368 | 1,921,649 | |||||||||||
Depreciation and amortization | 93,818 | 12,029 | 7,881 | 113,728 | |||||||||||
General and administrative | 29,443 | 4,202 | 68,420 | 102,065 | |||||||||||
Other gains and charges | 17,994 | 777 | 6,396 | 25,167 | |||||||||||
Total operating costs and expenses | 1,789,349 | 290,195 | 83,065 | 2,162,609 | |||||||||||
Operating income (loss) | 202,719 | 36,061 | (83,065 | ) | 155,715 | ||||||||||
Interest expense | — | — | 42,754 | 42,754 | |||||||||||
Other, net | — | — | (2,246 | ) | (2,246 | ) | |||||||||
Income (loss) before provision for income taxes | $ | 202,719 | $ | 36,061 | $ | (123,573 | ) | $ | 115,207 | ||||||
Segment assets | $ | 1,126,650 | $ | 151,649 | $ | 58,580 | $ | 1,336,879 | |||||||
Payments for property and equipment | 58,613 | 5,590 | 5,300 | 69,503 |
Thirty-Nine Week Period Ended March 29, 2017 | |||||||||||||||
Chili’s | Maggiano’s | Other | Consolidated | ||||||||||||
Company sales | $ | 1,970,390 | $ | 306,353 | $ | — | $ | 2,276,743 | |||||||
Franchise and other revenues | 47,417 | 16,016 | — | 63,433 | |||||||||||
Total revenues | 2,017,807 | 322,369 | — | 2,340,176 | |||||||||||
Company restaurant expenses | 1,658,067 | 272,137 | 578 | 1,930,782 | |||||||||||
Depreciation and amortization | 97,630 | 12,019 | 7,877 | 117,526 | |||||||||||
General and administrative | 28,115 | 4,836 | 69,063 | 102,014 | |||||||||||
Other gains and charges | 9,102 | 746 | 4,136 | 13,984 | |||||||||||
Total operating costs and expenses | 1,792,914 | 289,738 | 81,654 | 2,164,306 | |||||||||||
Operating income (loss) | 224,893 | 32,631 | (81,654 | ) | 175,870 | ||||||||||
Interest expense | — | — | 36,108 | 36,108 | |||||||||||
Other, net | — | — | (1,084 | ) | (1,084 | ) | |||||||||
Income (loss) before provision for income taxes | $ | 224,893 | $ | 32,631 | $ | (116,678 | ) | $ | 140,846 | ||||||
Payments for property and equipment | $ | 60,770 | $ | 10,673 | $ | 8,287 | $ | 79,730 |
March 28, 2018 | June 28, 2017 | ||||||
Revolving credit facility | $ | 432,250 | $ | 392,250 | |||
5.00% notes | 350,000 | 350,000 | |||||
3.88% notes | 300,000 | 300,000 | |||||
2.60% notes | 250,000 | 250,000 | |||||
Capital lease obligations | 43,667 | 45,417 | |||||
Total long-term debt | 1,375,917 | 1,337,667 | |||||
Less unamortized debt issuance costs and discounts | (6,911 | ) | (8,189 | ) | |||
Total long-term debt less unamortized debt issuance costs and discounts | 1,369,006 | 1,329,478 | |||||
Less current installments | (7,301 | ) | (9,649 | ) | |||
$ | 1,361,705 | $ | 1,319,829 |
March 28, 2018 | June 28, 2017 | ||||||
Insurance | $ | 18,143 | $ | 17,484 | |||
Sales tax | 17,174 | 12,494 | |||||
Dividends | 16,839 | 16,649 | |||||
Interest | 16,628 | 7,696 | |||||
Property tax | 13,952 | 16,566 | |||||
Deferred sale proceeds (1) | 13,706 | — | |||||
Other (2) | 42,609 | 40,626 | |||||
$ | 139,051 | $ | 111,515 |
(1) | Deferred sale proceeds relates to the corporate headquarters sale, please see Note 4 - Other Gains and Charges for further details. |
(2) | Other primarily consists of reserves for restaurant closure activities, certain lease reserves (see Note 11 - Contingencies for details), accruals for utilities and services, banquet deposits for Maggiano’s events, and the current portion of straight-line rent and landlord contributions. |
March 28, 2018 | June 28, 2017 | ||||||
Straight-line rent | $ | 56,115 | $ | 57,464 | |||
Insurance | 42,138 | 42,532 | |||||
Landlord contributions | 23,527 | 26,402 | |||||
Unfavorable leases | 3,948 | 5,398 | |||||
Unrecognized tax benefits | 3,102 | 3,116 | |||||
Other | 5,889 | 6,212 | |||||
$ | 134,719 | $ | 141,124 |
• | Level 1 – inputs are quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. |
• | Level 3 – inputs are unobservable and reflect our own assumptions. |
March 28, 2018 | June 28, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
2.60% Notes | $ | 249,928 | $ | 249,800 | $ | 249,495 | $ | 250,480 | |||||||
3.88% Notes | 298,178 | 285,480 | 297,912 | 286,077 | |||||||||||
5.00% Notes | 344,983 | 342,300 | 344,405 | 347,956 |
Accumulated Other Comprehensive Loss | |||
Balance at June 28, 2017 | $ | (11,921 | ) |
Cumulative losses as of June 28, 2017 reclassified from AOCL due to disposition | 5,899 | ||
Current period other comprehensive income before reclassifications | 1,096 | ||
Current period reclassifications from AOCL due to disposition | (519 | ) | |
Net current period other comprehensive income | 577 | ||
Balance at March 28, 2018 | $ | (5,445 | ) |
Thirty-Nine Week Period Ended | |||||||
March 28, 2018 | March 29, 2017 | ||||||
Income taxes, net of refunds | $ | 36,227 | $ | 63,381 | |||
Interest, net of amounts capitalized | 29,463 | 18,595 |
Thirty-Nine Week Period Ended | |||||||
March 28, 2018 | March 29, 2017 | ||||||
Retirement of fully depreciated assets | $ | 27,917 | $ | 17,964 | |||
Dividends declared but not paid | 17,804 | 17,276 | |||||
Capital lease additions | 6,079 | 1,147 | |||||
Accrued capital expenditures | 5,091 | 4,599 |
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | ||||||||||
March 28, 2018 | March 29, 2017 | March 28, 2018 | March 29, 2017 | ||||||||
Revenues: | |||||||||||
Company sales | 97.3 | % | 97.5 | % | 97.1 | % | 97.3 | % | |||
Franchise and other revenues | 2.7 | % | 2.5 | % | 2.9 | % | 2.7 | % | |||
Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Operating costs and expenses: | |||||||||||
Company restaurants (excluding depreciation and amortization) | |||||||||||
Cost of sales (1) | 26.2 | % | 25.5 | % | 26.1 | % | 25.8 | % | |||
Restaurant labor (1) | 33.6 | % | 33.1 | % | 34.1 | % | 33.4 | % | |||
Restaurant expenses (1) | 24.1 | % | 24.4 | % | 25.2 | % | 25.6 | % | |||
Company restaurant expenses (1) | 83.9 | % | 83.0 | % | 85.4 | % | 84.8 | % | |||
Depreciation and amortization | 4.6 | % | 4.9 | % | 4.9 | % | 5.0 | % | |||
General and administrative | 4.5 | % | 4.4 | % | 4.4 | % | 4.4 | % | |||
Other gains and charges | 0.3 | % | 0.8 | % | 1.1 | % | 0.6 | % | |||
Total operating costs and expenses | 91.1 | % | 91.0 | % | 93.3 | % | 92.5 | % | |||
Operating income | 8.9 | % | 9.0 | % | 6.7 | % | 7.5 | % | |||
Interest expense | 1.7 | % | 1.7 | % | 1.8 | % | 1.5 | % | |||
Other, net | (0.1 | )% | (0.1 | )% | (0.1 | )% | 0.0 | % | |||
Income before provision for income taxes | 7.3 | % | 7.4 | % | 5.0 | % | 6.0 | % | |||
Provision for income taxes | 1.5 | % | 2.2 | % | 1.5 | % | 1.7 | % | |||
Net income | 5.8 | % | 5.2 | % | 3.5 | % | 4.3 | % |
(1) | As a percentage of Company sales. |
Third Quarter Openings | Year-to-Date Openings | Total Open at End Of Third Quarter | Projected Openings | |||||||||||||||||
Fiscal 2018 | Fiscal 2017 | Fiscal 2018 | Fiscal 2017 | Fiscal 2018 | Fiscal 2017 | Fiscal 2018 | ||||||||||||||
Company-owned restaurants: | ||||||||||||||||||||
Chili’s domestic | 1 | 1 | 5 | 4 | 940 | 934 | 5-6 | |||||||||||||
Chili’s international | — | — | — | 1 | 5 | 14 | — | |||||||||||||
Maggiano’s | — | — | 1 | 2 | 52 | 52 | 1 | |||||||||||||
Total company-owned | 1 | 1 | 6 | 7 | 997 | 1,000 | 6-7 | |||||||||||||
Franchise restaurants: | ||||||||||||||||||||
Chili’s domestic | 1 | 3 | 5 | 5 | 314 | 316 | 5 | |||||||||||||
Chili’s international | 8 | 4 | 27 | 16 | 375 | 344 | 36-39 | |||||||||||||
Total franchise | 9 | 7 | 32 | 21 | 689 | 660 | 41-44 | |||||||||||||
Total restaurants: | ||||||||||||||||||||
Chili’s domestic | 2 | 4 | 10 | 9 | 1,254 | 1,250 | 10-11 | |||||||||||||
Chili’s international | 8 | 4 | 27 | 17 | 380 | 358 | 36-39 | |||||||||||||
Maggiano’s | — | — | 1 | 2 | 52 | 52 | 1 | |||||||||||||
Grand total | 10 | 8 | 38 | 28 | 1,686 | 1,660 | 47-51 |
Thirteen Week Period Ended March 28, 2018 | ||||||||||||||
Comparable Sales (1) | Price Increase | Mix-Shift (2) | Traffic | Capacity | ||||||||||
Company-owned | (0.3 | )% | 1.2 | % | 0.6 | % | (2.1 | )% | (0.3 | )% | ||||
Chili’s | (0.4 | )% | 1.1 | % | 0.6 | % | (2.1 | )% | (0.3 | )% | ||||
Maggiano’s | 0.5 | % | 1.3 | % | 0.6 | % | (1.4 | )% | 0.0 | % | ||||
Chili’s Franchise (3) | (2.1 | )% | ||||||||||||
U.S. | (3.2 | )% | ||||||||||||
International | (0.2 | )% | ||||||||||||
Chili’s Domestic (4) | (1.1 | )% | ||||||||||||
System-wide (5) | (0.8 | )% |
Thirteen Week Period Ended March 29, 2017 | ||||||||||||||
Comparable Sales (1) | Price Increase | Mix-Shift (2) | Traffic | Capacity | ||||||||||
Company-owned | (2.2 | )% | 2.8 | % | 1.1 | % | (6.1 | )% | 0.3 | % | ||||
Chili’s | (2.3 | )% | 2.9 | % | 1.0 | % | (6.2 | )% | 0.2 | % | ||||
Maggiano’s | (1.6 | )% | 2.4 | % | 1.4 | % | (5.4 | )% | 2.0 | % | ||||
Chili’s Franchise (3) | (2.5 | )% | ||||||||||||
U.S. | 0.3 | % | ||||||||||||
International | (7.1 | )% | ||||||||||||
Chili’s Domestic (4) | (1.7 | )% | ||||||||||||
System-wide (5) | (2.3 | )% |
Thirty-Nine Week Period Ended March 28, 2018 | ||||||||||||||
Comparable Sales (1) | Price Increase | Mix-Shift (2) | Traffic | Capacity | ||||||||||
Company-owned | (1.5 | )% | 2.0 | % | 1.3 | % | (4.8 | )% | (0.1 | )% | ||||
Chili’s | (1.7 | )% | 2.0 | % | 1.4 | % | (5.1 | )% | (0.2 | )% | ||||
Maggiano’s | 0.1 | % | 0.9 | % | 0.8 | % | (1.6 | )% | 1.6 | % | ||||
Chili’s Franchise (3) | (2.4 | )% | ||||||||||||
U.S. | (2.3 | )% | ||||||||||||
International | (2.6 | )% | ||||||||||||
Chili’s Domestic (4) | (1.9 | )% | ||||||||||||
System-wide (5) | (1.8 | )% |
Thirty-Nine Week Period Ended March 29, 2017 | ||||||||||||||
Comparable Sales (1) | Price Increase | Mix-Shift (2) | Traffic | Capacity | ||||||||||
Company-owned | (2.2 | )% | 2.1 | % | 1.0 | % | (5.3 | )% | 0.5 | % | ||||
Chili’s | (2.3 | )% | 2.0 | % | 1.3 | % | (5.6 | )% | 0.3 | % | ||||
Maggiano’s | (1.0 | )% | 2.4 | % | (0.2 | )% | (3.2 | )% | 3.0 | % | ||||
Chili’s Franchise (3) | (2.2 | )% | ||||||||||||
U.S. | (1.4 | )% | ||||||||||||
International | (3.5 | )% | ||||||||||||
Chili’s Domestic (4) | (2.1 | )% | ||||||||||||
System-wide (5) | (2.2 | )% |
(1) | Comparable restaurant sales include all restaurants that have been in operation for more than 18 months. Restaurants temporarily closed for 14 days or more are excluded from comparable restaurant sales. |
(2) | Mix-shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests. |
(3) | Revenues generated by franchisees are not included in revenues on the consolidated statements of comprehensive income; however, we generate royalty revenues and advertising fees based on franchisee sales, where applicable. We believe including franchise comparable restaurant sales provides investors information regarding brand performance that is relevant to current operations and may impact future restaurant development. |
(4) | Chili’s domestic comparable restaurant sales percentages are derived from sales generated by company-owned and franchise-operated Chili’s restaurants in the United States. |
(5) | System-wide comparable restaurant sales are derived from sales generated by company-owned Chili’s and Maggiano’s restaurants in addition to the sales generated at franchise-operated Chili’s restaurants. |
Thirty-Nine Week Period Ended | |||||||
March 28, 2018 | March 29, 2017 | ||||||
Net cash used in investing activities (in thousands): | |||||||
Payments for property and equipment | $ | (69,503 | ) | $ | (79,730 | ) | |
Proceeds from sale of assets | 14,825 | 3,077 | |||||
Insurance recoveries | 1,747 | — | |||||
Proceeds from note receivable | 1,185 | — | |||||
$ | (51,746 | ) | $ | (76,653 | ) |
Thirty-Nine Week Period Ended | |||||||
March 28, 2018 | March 29, 2017 | ||||||
Net cash used in financing activities (in thousands): | |||||||
Borrowings on revolving credit facility | $ | 524,000 | $ | 200,000 | |||
Payments on revolving credit facility | (484,000 | ) | (328,000 | ) | |||
Purchases of treasury stock | (162,004 | ) | (350,768 | ) | |||
Payments of dividends | (53,098 | ) | (54,087 | ) | |||
Payments on long-term debt | (7,834 | ) | (2,847 | ) | |||
Proceeds from issuances of treasury stock | 1,316 | 4,505 | |||||
Proceeds from issuance of long-term debt | — | 350,000 | |||||
Payments for debt issuance costs | — | (10,216 | ) | ||||
$ | (181,620 | ) | $ | (191,413 | ) |
• | The Company has engaged external tax advisers to assist with the design and implementation of the remediation plan that will enhance internal control over financial reporting for income taxes; |
• | The Company has implemented new reporting processes and system improvements in our tax department that simplify and improve manual reconciliation controls and will allow us to more effectively train tax department personnel; and |
• | Ensuring that tax department personnel effectively collaborate with financial reporting and other key departments to gain a better understanding of the information, analysis, and documentation necessary for the accurate presentation of deferred income taxes. |
• | The effect of competition on our operations and financial results. |
• | Changes in consumer preferences may decrease demand for food at our restaurants. |
• | Food safety incidents at our restaurants or in our industry or supply chain may adversely affect customer perception of our brands or industry and result in declines in sales and profits. |
• | Global and domestic economic conditions may negatively impact consumer discretionary spending and could have a materially negative affect on our financial performance. |
• | Unfavorable publicity relating to one or more of our company-owned or franchised restaurants in a particular brand that may taint public perception of the brand. |
• | Employment and labor laws and regulations may increase the cost of labor for our restaurants. |
• | The effect of governmental regulation on our ability to maintain our existing and future operations and to open new restaurants. |
• | Increased costs and/or reduced revenues from shortages or interruptions in the availability and delivery of food and other supplies. |
• | The effect of the implementation of the Tax Cuts and Jobs Act of 2017 on our consolidated financial statements. |
• | Our ability to consummate successful strategic transactions that are important to our future growth and profitability. |
• | Our inability to meet our business strategy plan and the impact on our profitability in the future. |
• | Loss of key management personnel could hurt our business and limit our ability to operate and grow successfully. |
• | Failure to recruit, train and retain high-quality restaurant management and team members may result in lower guest satisfaction and lower sales and profitability. |
• | The impact of slow economic growth on our landlords or other tenants in retail centers in which we or our franchisees are located, which in turn could negatively affect our financial results. |
• | The success of our franchisees to our future growth. |
• | Downgrades in our credit ratings could impact our ability to access capital and materially adversely affect our business, financial condition and results of operations. |
• | Inflation and fluctuation in energy costs may increase our operating expenses. |
• | The general decrease in sales volumes during winter months. |
• | Failure to recognize, respond to and effectively manage the accelerated impact of social media could adversely impact our business. |
• | Litigation could have a material adverse impact on our business and our financial performance. |
• | Dependence on information technology and any material failure in the operation or security of that technology or our ability to execute a comprehensive business continuity plan could impair our ability to efficiently operate our business. |
• | Failure to protect the integrity and security of individually identifiable data of our guests and teammates and confidential and proprietary information of the Company could expose us to litigation and damage our reputation. |
• | Failure to protect our service marks and intellectual property could harm our business. |
• | Outsourcing of certain business processes to third-party vendors that subject us to risk, including disruptions in business and increased costs. |
• | Disruptions in the global financial markets may affect our business plan by adversely impacting the availability and cost of credit. |
• | The large number of company-owned restaurants concentrated in Texas, Florida and California makes us susceptible to changes in economic and other trends in those regions. |
• | Declines in the market price of our common stock or changes in other circumstances that may indicate an impairment of goodwill possibly adversely affecting our financial position and results of operations. |
• | Changes to estimates related to our property and equipment or operating results that are lower than our current estimates at certain restaurant locations, possibly causing us to incur impairment charges on certain long-lived assets. |
• | Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and operating results. |
• | Failure to achieve our target for growth in total return to shareholders may adversely affect our stock price. |
• | Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price. |
• | Other risk factors that could cause our actual results to differ materially from those indicated in the forward-looking statements by affecting, among many things, pricing, consumer spending, consumer confidence, and operating costs, include, without limitation, changes in financial and credit markets (including rising interest rates); increases in costs of food commodities; increases in fuel costs and availability for our team members, customers and suppliers; increases in utility and energy costs on regional or national levels; increases in health care costs; health epidemics or pandemics or the prospects of these events; changes in consumer behaviors; changes in demographic trends; labor shortages and availability of employees; union organization; strikes; terrorist acts; energy shortages and rolling blackouts; and weather (including major hurricanes and regional winter storms) and other acts of God. |
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value that May Yet be Purchased Under the Program | ||||||||||
December 28, 2017 through January 31, 2018 | — | $ | — | — | $ | 294,931 | |||||||
February 1, 2018 through February 28, 2018 | 1,481,557 | $ | 35.23 | 1,480,920 | $ | 242,730 | |||||||
March 1, 2018 through March 28, 2018 | 1,034,778 | $ | 36.69 | 1,034,778 | $ | 204,741 | |||||||
2,516,335 | $ | 35.83 | 2,515,698 |
(1) | These amounts include shares purchased as part of our publicly announced programs and shares owned and tendered by team members to satisfy tax withholding obligations on the vesting of restricted share awards, which are not deducted from shares available to be purchased under publicly announced programs. Unless otherwise indicated, shares owned and tendered by team members to satisfy tax withholding obligations were purchased at the average of the high and low prices of the Company’s shares on the date of vesting. During the third quarter of fiscal 2018, 637 shares were tendered by team members at an average price of $36.35. |
Third Amendment to Credit Agreement dated April 30, 2018, by and among the Company and its wholly-owned subsidiaries, Brinker Restaurant Corporation, Brinker Florida, Inc., Brinker Texas, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., MUFG Bank, Ltd., SunTrust Bank, U.S. Bank National Association, Barclays Bank PLC, Regions Bank, Compass Bank, and Associated Bank National Association. | |
Certification by Wyman T. Roberts, President and Chief Executive Officer of the Registrant, pursuant to 17 CFR 240.13a – 14(a) or 17 CFR 240.15d – 14(a). | |
Certification by Joseph G. Taylor, Senior Vice President and Chief Financial Officer of the Registrant, pursuant to 17 CFR 240.13a – 14(a) or 17 CFR 240.15d – 14(a). | |
Certification by Wyman T. Roberts, President and Chief Executive Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Certification by Joseph G. Taylor, Senior Vice President and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Schema Document |
101.CAL | XBRL Calculation Linkbase Document |
101.DEF | XBRL Definition Linkbase Document |
101.LAB | XBRL Label Linkbase Document |
101.PRE | XBRL Presentation Linkbase |
BRINKER INTERNATIONAL, INC. | |||
Date: May 4, 2018 | By: | /s/ Wyman T. Roberts | |
Wyman T. Roberts, | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: May 4, 2018 | By: | /s/ Joseph G. Taylor | |
Joseph G. Taylor | |||
Senior Vice President and Chief Financial Officer | |||
(Principal Financial Officer) |
(a) | Definitions. The following terms (whether or not underscored) when used in this Amendment, including its preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof): |
(b) | Other Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Credit Agreement. |
(c) | Other Interpretive Provisions. The rules of construction in Sections 1.02 through 1.05 of the Credit Agreement shall be equally applicable to this Amendment. |
(a) | Section 1.01 of the Existing Credit Agreement. Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following new definitions in proper alphabetical order: |
(a) | all accounts (as defined in the UCC); |
(b) | all inventory (as defined in the UCC) and all restaurant supplies; |
(c) | all books and records relating to any of the foregoing (including, to the extent relating to the foregoing, customer data, credit files, ledgers, computer programs, printouts, and other computer materials and records (and all media on which such data, files, programs, materials and records are or may be stored)); and |
(d) | all proceeds, products and replacements of, accessions to, and substitutions for, any of the foregoing, including without limitation proceeds of insurance policies, to the extent related to a loss related to the foregoing. |
(b) | Section 1.01 of the Credit Agreement. The Definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended by adding at the end thereof the following: |
(c) | Section 1.01 of the Credit Agreement. Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Credit Documents” in its entirety and substituting in lieu thereof the following: |
(d) | Section 1.01 of the Credit Agreement. The Definition of “Permitted Liens” in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting the word “or” at the end of clause (h), (ii) deleting the period at the end of clause (i) and substituting a semicolon in lieu thereof, and (iii) adding at the end thereof the following: |
“(j) | Liens granted pursuant to the terms of the Credit Documents; |
(k) | Liens granted in cash collateral (including any associated deposit or securities accounts) to secure obligations incurred in connection with the issuance of letters of credit, bank guaranties, bankers acceptances and similar instruments; or |
(l) | Liens granted in Principal Properties to secure obligations incurred in connection with Sale-Leaseback Transactions otherwise permitted to be consummated in accordance with the terms of this Agreement. |
(e) | Section 1.01 of the Credit Agreement. The Definition of “Fee Letters” in Section 1.01 of the Credit Agreement is hereby amended by deleting such definition in its entirety and substituting in lieu thereof the following: |
(f) | Section 1.03 of the Credit Agreement. Section 1.03 of the Credit Agreement is hereby amended by adding the following sentence at the end of such Section: |
(g) | Article IV of the Credit Agreement. Article IV of the Credit Agreement is hereby amended by adding the following new Section 4.11 at the end thereof: |
(h) | Article V of the Credit Agreement. Article V of the Credit Agreement is hereby amended by adding the following new Section 5.16 at the end thereof: |
(i) | Section 6.09 of the Credit Agreement. Section 6.09 of the Credit Agreement is hereby amended by adding the following sentence at the end of such Section: |
(j) | Article VI of the Credit Agreement. Article VI of the Credit Agreement is hereby amended by adding the following new Section 6.10 at the end thereof: |
(a) | proper financing statements in form appropriate for filing under the UCC of all jurisdictions that the Administrative Agent may deem necessary or desirable in order to perfect the Liens created under the Security Agreement and the other Collateral Documents, covering the Collateral described in the Security Agreement and the other Collateral Documents; and |
(b) | favorable opinions of counsel to the Loan Parties covering items customary for transactions contemplated by this Section 6.10. |
(k) | Section 7.02 of the Credit Agreement. Section 7.02 of the Credit Agreement is hereby amended by adding the following at the end thereof: |
(l) | Section 7.03 of the Credit Agreement. Section 7.03 of the Credit Agreement is hereby amended by deleting clause (b) in its entirety and substituting the following in lieu thereof: |
(m) | Section 7.03 of the Credit Agreement. Section 7.03 of the Credit Agreement is hereby amended by deleting clause (c) in its entirety and substituting in lieu thereof the following: |
(n) | Section 7.04 of the Credit Agreement. Section 7.04 of the Credit Agreement is hereby amended by deleting such Section in its entirety and substituting in lieu thereof the following: |
(o) | Section 7.09 of the Credit Agreement. Section 7.09 of the Credit Agreement is hereby amended by deleting the word “and” appearing at the end of clause (iv) thereof, substituting a comma in lieu thereof, deleting the period appearing at the end of clause (v) thereof, and substituting the following in lieu thereof: |
(p) | Section 7.10 of the Credit Agreement. Section 7.10 of the Credit Agreement is hereby amended by deleting clause (c) in its entirety and substituting in lieu thereof the following: |
(q) | Article VIII of the Credit Agreement. Article VIII of the Credit Agreement is hereby amended by adding the following new Section 8.02 at the end thereof: |
(r) | Section 9.01 of the Credit Agreement. Section 9.01 of the Credit Agreement is hereby amended by adding the following new clause (c) at the end thereof: |
(s) | Article IX of the Credit Agreement. Article IX of the Credit Agreement is hereby amended by adding the following new Section 9.09, Section 9.10 and Section 9.11 at the end thereof: |
(a) | to release any Lien on any property granted to or held by the Administrative Agent under any Credit Document (i) upon termination of the Total Commitments and payment in full of all Obligations (other than contingent indemnification obligations), (ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Credit Document, or (iii) subject to Section 10.01, if approved, authorized or ratified in writing by the Majority Banks; |
(b) | to subordinate any Lien on any property granted to or held by the Administrative Agent under any Credit Document to the holder of any Lien on such property that is permitted by clause (g) or (i) in the definition of Permitted Liens; and |
(c) | upon request by the Administrative Agent at any time, the Majority Banks will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property pursuant to this Section 9.09.” |
“9.10 | No Bank is an Employee Benefit Plan. |
(a) | Each Bank, (x) represents and warrants, as of the date such Person became a Bank hereunder, to, and (y) covenants, from the date such Person becomes a Bank hereunder, from the date such Person becomes a Bank hereunder to the date such Person ceases being a Bank party to this Agreement, for the benefit of, the Administrative Agent and the Joint Lead Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true: |
(i) | such Bank is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Advances or Commitments; |
(ii) | the transaction exemption set forth in one or more prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time (a “PTE”), such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Bank’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement; |
(iii) | (A) such Bank is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Bank to enter into, participate in, administer and perform the Advances, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Bank, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Bank’s entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement; or |
(iv) | such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Bank. |
(b) | In addition, unless clause (a)(i) above is true with respect to a Bank or such Bank has not provided another representation, warranty and covenant as provided in clause (a)(iv) above, such Bank further (x) represents and warrants, as of the date such Person becomes a Bank hereunder, to, and (y) covenants, from the date such Person becomes a Bank hereunder, to the date such Person ceases being a Bank party to this Agreement, for the benefit of, the Administrative Agent and the Joint Lead Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that: |
(i) | none of the Administrative Agent or Joint Lead Arrangers or any of their respective Affiliates is a fiduciary with respect to the assets of such Bank (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related to hereto or thereto); |
(ii) | the Person making the investment decision on behalf of such Bank with respect to the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person that holds, or has under management or control, total assets of at least $50,000,000, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E); |
(iii) | the Person making the investment decision on behalf of such Bank with respect to the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Obligations); |
(iv) | the Person making the investment decision on behalf of such Bank with respect to the entrance into, participation in, administration of and performance of the Advances, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Advances, the Commitments and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder; and |
(v) | no fee or other compensation is being paid directly to the Administrative Agent or the Joints Lead Arrangers or any their respective Affiliates for investment advice (as opposed to other services) in connection with the Advances, the Commitments or this Agreement. |
(a) | Section 9.12 of the Credit Agreement. Section 9.12 of the Credit Agreement is hereby amended by deleting clause (f) in its entirety and substituting in lieu thereof the following: |
(b) | Other Credit Documents. From and after the Third Amendment Effective Date, each reference to the Existing Credit Agreement in any Credit Document shall be a reference to the Existing Credit Agreement, as amended by this Amendment, as the same may hereafter be further amended, amended and restated, supplemented or otherwise modified. |
(a) | Documentation. The Administrative Agent shall have received this Amendment duly executed by the Borrower, the Guarantors, the Administrative Agent and the Consenting Banks, and in sufficient copies for each Bank. |
(b) | Certification. The Administrative Agent shall have received a certificate, dated as of the Third Amendment Effective Date and signed by a Financial Officer, certifying that: |
(i) | no event or events which have or would reasonably be expected to have a Material Adverse Effect shall have occurred since June 28, 2017; |
(ii) | no Default or event which, with the giving of notice, the lapse of time or both, would constitute a Default shall have occurred and be continuing on and as of the Third Amendment Effective Date; |
(iii) | the representations and warranties contained in Section 6 hereof shall be true and correct on and as of the Third Amendment Effective Date; and |
(iv) | no legal or regulatory action or proceeding shall have commenced and be continuing against the Borrower or any of its Subsidiaries since June 28, 2017, which has, or would reasonably be expected to have, a Material Adverse Effect. |
(c) | Consent Fee. The Administrative Agent shall have received, for the ratable account of each Consenting Bank that has executed and delivered a counterpart hereof to the Administrative Agent on or prior to 5:00 p.m. Eastern Time on April 27, 2018 (the “Deadline”), a fee equal to 0.125% of such Bank’s undrawn Commitment and amount of outstanding Advances on the Third Amendment Effective Date (such fees, the “Consent Fees”). The Consent Fees shall be payable in U.S. dollars in immediately available funds as directed by the Administrative Agent. Once paid, no Consent Fees shall be refundable under any circumstances. For the avoidance of doubt, no Consent Fee shall be payable to any Bank that does not consent to this Amendment prior to the Deadline. |
(d) | Fees and Expenses. The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Third Amendment Effective Date pursuant to the Third Amendment Fee Letter, including all fees, charges and disbursements required to be paid or reimbursed by the Borrower pursuant to Section 8 hereof (which fees, charges and disbursements of counsel and such other out of pocket fees and expenses shall be limited to those for which invoices have been submitted on or prior to the Third Amendment Effective Date (provided, however, nothing herein shall preclude any post-closing settlement of such fees, charges, disbursements, costs and expenses to the extent not so invoiced)). |
(a) | The execution, delivery and performance by the Borrower and each Guarantor of its obligations in connection with this Amendment are within its corporate powers, have been duly authorized by all necessary corporate action and do not and will not (i) violate any provision of its articles or certificate of incorporation or bylaws or similar organizing or governing documents of the Borrower or the Guarantor, (ii) contravene any applicable law which is applicable to the Borrower or such Guarantor, or (iii) conflict with, result in a breach of or constitute (with notice, lapse of time or both) a default under any material indenture or instrument or other material agreement to which the Borrower or such Guarantor is a party, by which it or any of its properties is bound or to which it is subject, except, in the case of clauses (ii) and (iii) above, to the extent such contraventions, conflicts, breaches or defaults could not reasonably be expected to have a Material Adverse Effect. |
(b) | The Borrower and each Guarantor has taken all necessary corporate action to execute, deliver and perform this Amendment and has validly executed and delivered this Amendment. This Amendment constitutes a legal, valid and binding obligation of the Borrower and each Guarantor, enforceable against the Borrower and each Guarantor in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. |
(c) | No material consent, approval, authorization or other action by, notice to, or registration or filing with, any governmental authority or other Person is or will be required as a condition to or otherwise in connection with the due execution, delivery and performance by the Borrower or each Guarantor of this Amendment, except (i) such as have been obtained or made and are in full force and effect, (ii) such filings as may be required in connection with the Borrower’s obligations under the Exchange Act, and (iii) that the Borrower shall be required to cause Brinker Payroll to guaranty the Borrower’s 5.0% senior notes due 2024. |
(d) | As of the Third Amendment Effective Date, the representations and warranties contained in each of the Credit Documents are true and correct in all material respects (except for those representations and warranties that have a material qualifier, in which case those representations and warranties shall be true and correct in all respects) as of the date hereof as though made on and as of such date (other than any such representations or warranties that, by their terms, refer to a specific date, in which case as of such specific date). |
(e) | No Default or event which, with the giving of notice, the lapse of time or both, would constitute a Default shall exist after giving effect to this Amendment. |
(a) | The Existing Credit Agreement and each of the other Credit Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect according to their respective terms and are hereby in all respects ratified and confirmed. The parties hereto acknowledge and agree that the amendments contained herein do not constitute a novation of the Existing Credit Agreement, the other Credit Documents or the indebtedness or any other obligation of the Borrower and the Guarantors described therein and shall not, in any case, affect, diminish or abrogate the Borrower’s or any Guarantor’s liability under the Credit Agreement or any other Credit Document. |
(b) | The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Bank or the Administrative Agent under any of the Credit Documents, nor constitute a waiver of, consent to a departure from, or modification of any other term, covenant, provision or condition set forth in any of the Credit Documents. |
Title: | Senior Vice President and Chief Financial Officer |
Title: | Vice President, Treasurer and Assistant Secretary |
Title: | Vice President, Treasurer and Assistant Secretary |
Title: | Vice President, Treasurer and Assistant Secretary |
JPMORGAN CHASE BANK, N.A. By:__________________________ Name: Title: |
WELLS FARGO BANK, N.A. By:__________________________ Name: Title: |
MUFG BANK, LTD. By:__________________________ Name: Title: |
SUNTRUST BANK By:__________________________ Name: Title: |
U.S. BANK NATIONAL ASSOCIATION By:__________________________ Name: Title: |
BARCLAYS BANK PLC By:__________________________ Name: Title: |
REGIONS BANK By:__________________________ Name: Title: |
COMPASS BANK By:__________________________ Name: Title: |
ASSOCIATED BANK NATIONAL ASSOCIATION By:__________________________ Name: Title: |
1. | I have reviewed this quarterly report on Form 10-Q of Brinker International, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
A. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
B. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally acceptable accounting principles; |
C. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
D. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
A. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
B. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 4, 2018 | By: | /s/ Wyman T. Roberts | |
Wyman T. Roberts, | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Brinker International, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
A. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
B. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally acceptable accounting principles; |
C. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
D. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
A. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
B. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 4, 2018 | By: | /s/ Joseph G. Taylor | |
Joseph G. Taylor | ||||
Senior Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
Date: | May 4, 2018 | By: | /s/ Wyman T. Roberts | |
Wyman T. Roberts, | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) |
Date: | May 4, 2018 | By: | /s/ Joseph G. Taylor | |
Joseph G. Taylor | ||||
Senior Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Mar. 28, 2018 |
Apr. 30, 2018 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 28, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BRINKER INTERNATIONAL INC | |
Entity Central Index Key | 0000703351 | |
Current Fiscal Year End Date | --06-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,853,794 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 28, 2018 |
Jun. 28, 2017 |
---|---|---|
Common Stock, authorized shares | 250,000,000 | 250,000,000 |
Common Stock, par value | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 176,246,649 | 176,246,649 |
Common Stock, shares outstanding | 43,843,747 | 48,440,721 |
Treasury Stock, shares | 132,402,902 | 127,805,928 |
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Mar. 28, 2018 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Company sales | $ 790,495 | $ 790,624 | $ 2,250,125 | $ 2,276,743 |
Franchise and other revenues | 22,039 | 20,017 | 68,199 | 63,433 |
Total revenues | 812,534 | 810,641 | 2,318,324 | 2,340,176 |
Operating costs and expenses: | ||||
Cost of sales | 207,328 | 201,903 | 587,808 | 587,742 |
Restaurant labor | 265,367 | 261,632 | 766,858 | 760,894 |
Restaurant expenses | 190,205 | 192,372 | 566,983 | 582,146 |
Company restaurant expenses | 662,900 | 655,907 | 1,921,649 | 1,930,782 |
Depreciation and amortization | 37,553 | 39,335 | 113,728 | 117,526 |
General and administrative | 36,619 | 35,931 | 102,065 | 102,014 |
Other gains and charges | 2,752 | 6,600 | 25,167 | 13,984 |
Total operating costs and expenses | 739,824 | 737,773 | 2,162,609 | 2,164,306 |
Operating income | 72,710 | 72,868 | 155,715 | 175,870 |
Interest expense | 14,549 | 13,658 | 42,754 | 36,108 |
Other, net | (755) | (402) | (2,246) | (1,084) |
Income before provision for income taxes | 58,916 | 59,612 | 115,207 | 140,846 |
Provision for income taxes | 12,000 | 17,243 | 33,048 | 40,607 |
Net income | $ 46,916 | $ 42,369 | $ 82,159 | $ 100,239 |
Basic net income per share | $ 1.03 | $ 0.87 | $ 1.76 | $ 1.96 |
Diluted net income per share | $ 1.02 | $ 0.86 | $ 1.74 | $ 1.93 |
Basic weighted average shares outstanding | 45,433 | 48,954 | 46,719 | 51,211 |
Diluted weighted average shares outstanding | 45,973 | 49,506 | 47,195 | 51,854 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | $ (243) | $ 734 | $ 577 | $ (1,411) |
Other comprehensive income (loss) | (243) | 734 | 577 | (1,411) |
Comprehensive income | $ 46,673 | $ 43,103 | $ 82,736 | $ 98,828 |
Dividends per share | $ 0.38 | $ 0.34 | $ 1.14 | $ 1.02 |
BASIS OF PRESENTATION |
9 Months Ended |
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Mar. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | References to “Brinker,” the “Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our unaudited consolidated financial statements as of March 28, 2018 and June 28, 2017 and for the thirteen and thirty-nine week periods ended March 28, 2018 and March 29, 2017 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We are principally engaged in the ownership, operation, development, and franchising of the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. At March 28, 2018, we owned, operated or franchised 1,686 restaurants, consisting of 997 company-owned restaurants and 689 franchised restaurants, located in the United States, two United States territories and 31 other countries. The foreign currency translation adjustment included in Comprehensive income on the Consolidated Statements of Comprehensive Income represents the unrealized impact of translating the financial statements of our Canadian restaurants and our Mexican joint venture (prior to divestiture) from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The Accumulated other comprehensive loss (“AOCL”) is presented on the Consolidated Balance Sheets. Additionally, certain prior year balances in the Consolidated Balance Sheets have been reclassified to conform to fiscal 2018 presentation. These reclassifications have no effect on our net income as previously reported and an immaterial impact on our prior year Consolidated Balance Sheets. The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting periods. Actual results could differ from those estimates. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update changed the recognition of excess tax benefits and tax deficiencies resulting from the settlement of share-based awards from an adjustment to Additional paid-in capital on the Consolidated Balance Sheets to an adjustment to the Provision for income taxes on the Consolidated Statements of Comprehensive Income and is applied on a prospective basis. This update also changed the classification of excess tax benefits from cash flows from financing activities to cash flows from operating activities on the Consolidated Statements of Cash Flows and is applied retrospectively. This update was effective for annual and interim periods for fiscal years beginning after December 15, 2016, which required us to adopt these provisions in the first quarter of fiscal 2018. We recognized a discrete tax expense of $1.1 million in the Provision for income taxes, which resulted in a decrease in Diluted net income per share of $0.02, in the Consolidated Statements of Comprehensive Income for the thirty-nine week period ended March 28, 2018. The impact for the thirteen week period ended March 28, 2018 was negligible, and did not result in any impact to our to Diluted net income per share in the Consolidated Statements of Comprehensive Income. The inclusion of excess tax benefits and tax deficiencies within our Provision for income taxes will increase its volatility as the amount of excess tax benefits or tax deficiencies from share-based compensation awards depends on our stock price at the date the awards vest. In addition, we reclassified $2.0 million of excess tax benefits received from cash flows from financing activities to cash flows from operating activities on our Consolidated Statements of Cash Flows for the thirty-nine week period ended March 29, 2017. The adoption of the other provisions in this update, including the accounting policy election for accounting for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows, had no impact on our consolidated financial statements. We will continue to estimate forfeitures of share-based awards. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations. The Notes to the Consolidated Financial Statements (unaudited) should be read in conjunction with the Notes to the Consolidated Financial Statements contained in the June 28, 2017 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. |
NET INCOME PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER SHARE | Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the dilutive net income per share calculation. Basic weighted average shares outstanding are reconciled to diluted weighted average shares outstanding as follows (in thousands):
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INCOME TAXES |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was enacted on December 22, 2017 with an effective date of January 1, 2018. The enactment date occurred prior to the end of the second quarter of fiscal 2018 and therefore the federal statutory tax rate changes stipulated by the Tax Act were reflected in the second quarter. The Tax Act lowered the federal statutory tax rate from 35.0% to 21.0% effective January 1, 2018. Our federal statutory tax rate for fiscal 2018 is now 28.1%, representing a blended tax rate for the current fiscal year based on the number of days in the fiscal year before and after the effective date. For subsequent years, our federal statutory tax rate will be 21.0%. In accordance with ASC 740, we re-measured our deferred tax accounts as of the enactment date using the new federal statutory tax rate and recognized the change as a discrete item in the Provision for income taxes. For the thirty-nine week period ended March 28, 2018, the adjustment was $8.4 million, this changed slightly from the prior quarter due to revised full year estimates for changes in our net deferred tax balance. Our accumulated foreign earnings and profits are in a loss position and therefore no taxes are applicable related to a deemed repatriation. A reconciliation between the reported provision for income taxes and the amount computed by applying our federal statutory income tax rate of 28.1% to Income before provision for income taxes is as follows (in thousands):
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OTHER GAINS AND CHARGES |
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OTHER GAINS AND CHARGES | Other gains and charges in the Consolidated Statements of Comprehensive Income consist of the following (in thousands):
Fiscal 2018 Restaurant closure charges during the third quarter of fiscal 2018 were $2.8 million which includes $1.7 million related to lease termination expenses. We are the primary lessee of leases that were sublet to a divested brand, currently in bankruptcy proceedings, that discontinued sublease rental payments and closed the restaurants. Additionally, we recorded Lease guarantee charges of $0.5 million in the third quarter of fiscal 2018, and $1.4 million in the second quarter of fiscal 2018 related to the same divested brand for certain leases under which we were secondarily liable. For additional information on lease guarantees, see Note 11 - Contingencies. Restaurant closure charges during the thirty-nine week period ended March 28, 2018 primarily includes expenses associated with nine Alberta, Canada Chili’s restaurants closed during the second quarter of fiscal 2018. Alberta has an oil dependent economy and has experienced an economic recession in recent years related to lower oil production. The slower economy has negatively affected traffic at the restaurants. The decision to close these restaurants was driven by management’s belief that the long-term profitability of these restaurants would not meet our required level of return. During the third quarter of fiscal 2018, $1.1 million of Restaurant closure charges was recorded primarily due to landlord rejections of previously identified sublease tenants related to Chili’s restaurants in Alberta, Canada closed during the second quarter. During the second quarter of fiscal 2018, we recorded Restaurant closure charges of $4.3 million primarily related to lease termination charges and other costs associated with certain locations for which no sublease tenant was identified. During the first quarter of fiscal 2018, we recorded Restaurant impairment charges also related to the Canada closures of $7.2 million primarily related to the long-lived assets and reacquired franchise rights. Additionally, during the second quarter of fiscal 2018, we recorded Restaurant impairment charges of $2.0 million primarily related to the long-lived assets of certain underperforming Maggiano’s and Chili’s restaurants that will continue to operate. See Note 8 - Fair Value Measurements for further details. Accelerated depreciation of $0.5 million and $1.4 million was recorded during the third quarter and the thirty-nine week period ended March 28, 2018, respectively, primarily related to depreciation on certain leasehold improvements at the corporate headquarters property. We plan to relocate the corporate headquarters in fiscal 2019. During the third quarter of fiscal 2018, we sold the portion of our current headquarters property that we owned for net proceeds of $13.7 million. We will continue to occupy the property rent-free until our new corporate headquarters location is available or March 31, 2019. The net sales proceeds have been recorded within Other accrued liabilities on the Consolidated Balance Sheets (see Note 7 - Accrued and Other Liabilities for further details), until we have fully relinquished possession of the sold property and our involvement has been terminated. Once our possession of the existing headquarters has terminated, we will recognize the sale, and record a gain related to the transaction. As of March 28, 2018, Land of $5.9 million, and additional Net property and equipment of $2.3 million were recorded on our Consolidated Balance Sheets related to the sold property. Hurricane-related costs include incurred expenses associated with Hurricanes Harvey and Irma primarily related to employee relief payments and inventory spoilage. Our restaurants were closed in the areas affected by these disasters and our team members were unable to work. Payments were made to assist our team members during these crises and to promote retention. We carry insurance coverage for these types of natural disasters. It was determined that Hurricane Irma damage was below insurance claim deductible limits, and we do not expect any insurance proceeds related to this storm. During the second quarter of fiscal 2018, we received insurance proceeds related to certain Hurricane Harvey property damage of $1.0 million that was mostly offset by the long-lived asset write-off, of which the net amount of $0.1 million was included within Other gains and charges in the Consolidated Statements of Comprehensive Income. The business interruption portion of the claim relating to Hurricane Harvey is still under review following the established claims adjusting process. During the third quarter of fiscal 2018, we received property damage insurance proceeds of $0.5 million related to natural flooding in Louisiana that are recorded within Other gains and charges in the Consolidated Statements of Comprehensive Income. Additionally, during the third quarter, we received business interruption funds of $0.4 million related to the Louisiana flooding from insurers that are recorded within Restaurant expenses on the Consolidated Statements of Comprehensive Income. During the second quarter of fiscal 2018, we sold our equity interest in our Mexico joint venture to the franchise partner in the joint venture, CMR, S.A.B. de C.V. for $18.0 million. We received a note as consideration to be paid in 72 equal installments, with one installment payment made at closing and the other payments to be made over 71 months pursuant to the note. The note is denominated in Mexican pesos and is re-measured to U.S. dollars at the end of each period resulting in a gain or loss from foreign currency exchange rate changes. Foreign currency transaction gain for the third quarter of fiscal 2018 included a $0.9 million gain because the value of the Mexican peso increased as compared to the U.S. dollar during this period. During the second quarter of fiscal 2018, we recorded a $0.9 million loss due to the decline in the exchange rate for the Mexican peso relative to the U.S. dollar. Additionally, related to the CMR equity interest sale, in the second quarter of fiscal 2018 we recorded a gain of $0.2 million within Gain on the sale of assets, net which included the recognition of prior period foreign currency translation losses reclassified from AOCL, please see Note 9 - Shareholders’ Deficit for further details. The current portion of the note, which represents the cash payments to be received over the next 12 months, is included within Accounts receivable, net while the long-term portion of the note is included within Other assets on the Consolidated Balance Sheets. Fiscal 2017 During the third quarter of fiscal 2017, we completed a reorganization of the Chili’s restaurant operations team and certain departments at the corporate headquarters to better align our staffing with the current management strategy and resource needs. This employee separation action resulted in severance charges and accelerated stock-based compensation expenses of $5.9 million. Substantially all of the severance amounts were paid by the end of the third quarter of fiscal 2017. Additionally, we recorded restaurant closure charges of $0.8 million primarily related to lease and other costs associated with closed restaurants. During the second quarter of fiscal 2017, we recorded a $2.6 million gain on the sale of property, partially offset by restaurant impairment charges of $1.9 million primarily related to the long-lived assets and reacquired franchise rights of six underperforming Chili’s restaurants which continue to operate. See Note 8 - Fair Value Measurements for further details. During the first quarter of fiscal 2017, we recorded restaurant closure charges of $2.5 million primarily related to lease termination charges for restaurants closed during the quarter. Additionally, we incurred $2.5 million of professional fees and severance associated with our information technology restructuring. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our company-owned Chili’s restaurants in the United States and Canada as well as the results from our domestic and international franchise business. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants. Company sales are derived principally from the sales of food and beverages. Franchise and other revenues primarily includes royalties, development fees, franchise fees, banquet service charge income, gift card breakage and discounts, digital entertainment revenue, Chili’s retail food product royalties and delivery fee income. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly in the United States. There were no material transactions amongst our operating segments. Our chief operating decision maker uses operating income as the measure for assessing performance of our operating segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Company restaurant expenses include food and beverage costs, restaurant labor costs and restaurant expenses, including advertising. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands):
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | Long-term debt consists of the following (in thousands):
During the thirty-nine week period ended March 28, 2018, net borrowings of $40.0 million were drawn on the $1.0 billion revolving credit facility primarily to fund share repurchases. Under the revolving credit facility, $890.0 million of the facility is due on September 12, 2021, and the remaining $110.0 is due on March 12, 2020. The revolving credit facility bears interest of LIBOR plus an applicable margin, which is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.00%. Based on our current credit rating, as of March 28, 2018 we are paying interest at a rate of LIBOR plus 1.38% for a total of 3.27%. One month LIBOR at March 28, 2018 was approximately 1.89%. As of March 28, 2018, $567.8 million of credit is available under the revolving credit facility. Obligations under our 2.60% notes, which will mature in May 2018, have been classified as long-term, reflecting our intention to pay off these notes through our existing revolving credit facility. Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants. |
ACCRUED AND OTHER LIABILITIES |
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Accrued Liabilities and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED AND OTHER LIABILITIES | Other accrued liabilities consist of the following (in thousands):
Other liabilities consist of the following (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows:
Non-Financial Assets Measured on a Non-Recurring Basis We review the carrying amounts of property and equipment and intangibles such as reacquired franchise rights and transferable liquor licenses semi-annually or when events or circumstances indicate that the fair value may not exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. During the thirty-nine week period ended March 28, 2018, based on our second quarter semi-annual review, we impaired long-lived assets with carrying values of $2.3 million, primarily related to one underperforming Maggiano’s restaurant and one underperforming Chili’s restaurant which will continue to operate. We determined the leasehold improvements associated with the impaired restaurants had a fair value of $0.3 million, based on Level 3 fair value measurements, resulting in an impairment charge of $2.0 million. During the first quarter of fiscal 2018, we impaired long-lived assets and reacquired franchise rights with carrying values of $6.0 million and $1.2 million, respectively, primarily related to nine underperforming Chili’s restaurants located in Alberta, Canada which were identified for closure by management. We determined the leasehold improvements and other assets associated with these restaurants had no fair value, based on Level 3 fair value measurements, resulting in an impairment charge of $7.2 million. The restaurant assets were assigned a zero fair value as the decision to close the restaurants in the second quarter of fiscal 2018 will result in substantially all of the assets reverting to the landlords. During the thirty-nine week period ended March 29, 2017, long-lived assets and reacquired franchise rights with carrying values of $1.3 million and $0.8 million, respectively, primarily related to six underperforming restaurants, were determined to have a total fair value of $0.2 million resulting in an impairment charge of $1.9 million. We determine the fair value of transferable liquor licenses based on prices in the open market for licenses in the same or similar jurisdictions. Based on our semi-annual review, during the second quarter of fiscal 2018 and fiscal 2017, we determined there was no impairment. We review the carrying amounts of goodwill annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the implied fair value of the goodwill. We determined that there was no impairment of goodwill during our annual test in the second quarter of fiscal 2018 and fiscal 2017 as the fair value of our reporting units were substantially in excess of their carrying values. No indicators of impairment were identified through the end of the third quarter of fiscal 2018. All impairment charges were included in Other gains and charges in the Consolidated Statements of Comprehensive Income for the periods presented. Please see Note 4 - Other Gains and Charges for more information. Other Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, a long-term note receivable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items. During the second quarter of fiscal 2018, we received an $18.0 million long-term note as consideration related to the sale of our equity interest in the Chili’s joint venture in Mexico. We determined the fair value of this note based on an internally developed analysis relying on Level 3 inputs. This analysis was based on a credit rating we assigned to the counterparty and comparable interest rates associated with similar debt instruments observed in the market. As a result of this analysis, we determined the fair value of this note was approximately $16.0 million and recorded this fair value as its initial carrying value. The current portion of the note represents the cash payments to be received over the next 12 months and is included within Accounts receivable, net, while the long-term portion of the note is included within Other assets in the Consolidated Balance Sheets. The carrying amount of debt outstanding related to our revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of the 2.60% notes, 3.88% notes and 5.00% notes are based on quoted market prices and are considered Level 2 fair value measurements. The carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands):
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SHAREHOLDERS' DEFICIT |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' DEFICIT | In August 2017, our Board of Directors authorized a $250.0 million increase to our existing share repurchase program resulting in total authorizations of $4.6 billion. We repurchased approximately 4.8 million shares of our common stock for $162.0 million during the thirty-nine week period ended March 28, 2018. The repurchased shares included shares purchased as part of our share repurchase program and shares repurchased to satisfy team member tax withholding obligations on the vesting of restricted shares. Repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit. As of March 28, 2018, approximately $204.7 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings, and planned investment and financing needs. During the thirty-nine week period ended March 28, 2018, we granted approximately 1.2 million stock options with a weighted average exercise price per share of $31.28 and a weighted average fair value per share of $4.46, and approximately 0.5 million restricted share awards with a weighted average fair value per share of $32.02. Also, during the thirty-nine week period ended March 28, 2018, we paid dividends of $53.1 million to common stock shareholders, compared to $54.1 million in the prior year. Our Board of Directors approved a 12% increase in the quarterly dividend from $0.34 to $0.38 per share effective with the dividend declared in August 2017. We also declared a quarterly dividend in February 2018, which was paid on March 29, 2018 in the amount of $16.8 million. The dividend was accrued in Other accrued liabilities on our Consolidated Balance Sheets as of March 28, 2018, see Note 7 - Accrued and Other Liabilities. On October 13, 2017, we sold our Dutch subsidiary that held an equity interest in our Chili’s joint venture in Mexico to the franchise partner in the joint venture, CMR, S.A.B. de C.V. for $18.0 million. During the second quarter of fiscal 2018, we recorded a gain of $0.2 million to Other gains and charges in the Consolidated Statements of Comprehensive Income which included the recognition of $5.4 million of foreign currency translation losses reclassified from AOCL consisting of $5.9 million of foreign currency translation losses from previous years, partially offset by $0.5 million of current year foreign currency translation gains. The changes in AOCL related to the CMR joint venture sale for the first thirty-nine weeks ended March 28, 2018 are as follows (in thousands):
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SUPPLEMENTAL CASH FLOW INFORMATION |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | Cash paid for income taxes and interest is as follows (in thousands):
Non-cash investing and financing activities are as follows (in thousands):
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CONTINGENCIES |
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Mar. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | In connection with the sale of restaurants to franchisees and brand divestitures we have, in certain cases, guaranteed lease payments. As of March 28, 2018 and June 28, 2017, we have outstanding lease guarantees or are secondarily liable for $62.6 million and $69.0 million, respectively. These amounts represent the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2018 through fiscal 2027. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. In the first quarter of fiscal 2018, we were notified that Mac Acquisition LLC, the owner of Romano’s Macaroni Grill restaurants, closed certain of its properties for which we have outstanding lease guarantees or are secondarily liable. Based on management’s belief that Mac Acquisition LLC would default on the leases for these closed locations, a liability was established based on an estimate of the obligation associated with these locations of approximately $1.1 million in fiscal 2017. In the second quarter of fiscal 2018, Mac Acquisition LLC filed for Chapter 11 bankruptcy protections. Based on information obtained from the bankruptcy proceedings pertaining to our obligations under the Romano’s Macaroni Grill leases and related lease guarantees, during the thirty-nine week period ended March 28, 2018, total incremental charges recorded based on additional leases rejected in the bankruptcy proceedings were $1.9 million, including $0.5 million related to the thirteen week period ended March 28, 2018. Please refer to Note 4 - Other Gains and Charges for more details. We paid $1.0 million during the thirty-nine week period ended March 28, 2018 to settle the remaining obligations of five of these leases. We believe at March 28, 2018, that our current liability of $2.0 million, recorded in Other accrued liabilities on the Consolidated Balance Sheets, is appropriate based on our analysis of the potential obligations. We do not expect additional leases to be rejected in bankruptcy proceedings. We will continue to monitor leases for which we have outstanding guarantees or are secondarily liable to assess the likelihood of any incremental losses. We have not been informed by landlords of Mac Acquisition LLC of any lease defaults other than those detailed in the bankruptcy filings. No other liabilities related to this matter have been recorded as of March 28, 2018. The Mac Acquisition LLC lease obligations are based on Level 3 fair value measurements based on an estimate of the obligation associated with the lease locations, stated rent and other factors such as ability and probability of the landlord to mitigate damages by leasing to new tenants. Please refer to Note 8 - Fair Value Measurements for further details surrounding Level definitions. We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of March 28, 2018, we had $31.0 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable between 12 to 24 months. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel, and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. We are engaged in various legal proceedings and have certain unresolved claims pending. Liabilities have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. |
SUBSEQUENT EVENTS |
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Mar. 28, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent to the end of the quarter, an amendment to the revolving credit facility was executed. This amendment was executed to provide the ability to execute certain sale-leaseback transactions and to increase the restricted payment capacity. Please see further details at Part II, Item 5. Additionally, net borrowings of $26.0 million were drawn on the revolving credit facility subsequent to the end of the quarter. On April 30, 2018, our Board of Directors declared a quarterly dividend of $0.38 per share to be paid on June 28, 2018 to shareholders of record as of June 8, 2018. |
EFFECT OF NEW ACCOUNTING STANDARDS |
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Mar. 28, 2018 | |
Effect of New Accounting Standards [Abstract] | |
EFFECT OF NEW ACCOUNTING STANDARDS | In February 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Lease Easement Practical Expedient for Transition to Topic 842. This update provides a practical expedient for existing or expired land easements that were not previously accounted for in accordance with ASC 840. The practical expedient would allow entities to elect not to assess whether those land easements are, or contain, leases in accordance with ASC 842 when transitioning to the new leasing standard. The ASU clarifies that land easements entered into (or existing land easements modified) on or after the effective date of the new leasing standard must be assessed under ASC 842. We are in the process of evaluating the full impact that adoption of the new leasing standard and this land easement practical expedient guidance will have on our consolidated financial statements, see further details as described below in the ASU 2016-02 update. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update eliminates step two of the goodwill impairment analysis. Companies will no longer be required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, they will measure impairment as the difference between the carrying amount and the fair value of the reporting unit not to exceed the carrying amount of goodwill. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2019, which will require us to adopt these provisions in the first quarter of fiscal 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed with measurement dates after January 1, 2017. The update will be applied on a prospective basis. We do not expect the adoption of this guidance to have any impact on our consolidated financial statements as the fair value of our reporting units is substantially in excess of the carrying values. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230). This update provides clarification regarding how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2019. Early adoption is permitted for financial statements that have not been previously issued. The update will be applied on a retrospective basis. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements or debt covenants. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset for virtually all leases, other than leases with a term of 12 months or less. The update also requires additional disclosures about the amount, timing, and uncertainty of cash flows arising from leases. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2018, which will require us to adopt these provisions in the first quarter of fiscal 2020. Early adoption is permitted for financial statements that have not been previously issued. This update will be applied on a modified retrospective basis. We anticipate implementing the standard by taking advantage of the practical expedient option. The discounted minimum remaining rental payments will be the starting point for determining the right-of-use asset and lease liability. We had operating leases with remaining rental payments of approximately $606.9 million at the end of fiscal 2017. We expect that adoption of the new guidance will have a material impact on our consolidated balance sheets due to recognition of the right-of-use asset and lease liability related to our current operating leases. We are continuing to evaluate the effect the new guidance will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The FASB has subsequently amended this update by issuing additional ASU’s that provide clarification and further guidance around areas identified as potential implementation issues. These updates provide a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. These updates also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14 delaying the effective date of adoption. These updates are now effective for annual and interim periods for fiscal years beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2019. Early application in fiscal 2018 is permitted. These updates permit the use of either the retrospective or cumulative effect transition method. We currently expect to apply the cumulative effect transition method. We do not believe these updates will impact our recognition of revenue from sales generated at company-owned restaurants or recognition from royalty fees from our franchisees, which are our primary sources of revenue. We have performed a preliminary analysis of the impact of the new revenue recognition guidance and developed a comprehensive plan for the implementation. The plan includes analyzing the impact on our current revenue streams, comparing our historical accounting policies to the new guidance, and identifying potential differences from applying the requirements of the new guidance to our contracts. Under current accounting guidance, we recognize initial franchise fees when we have performed all material obligations and services, which generally occurs when the franchised restaurant opens. Under the new guidance, we anticipate deferring the initial franchise fees and recognizing revenue over the term of the related franchise agreement. We anticipate the new guidance will also change our reporting of advertising fund contributions from franchisees and the related advertising expenditures, which are currently reported on a net basis in our Consolidated Statements of Comprehensive Income within Restaurant expenses. Under the current guidance, advertising fund contributions received may not equal advertising expenditures for the period due to timing of promotions. To the extent that contributions received are different from advertising expenditures, the net difference is treated on the Consolidated Balance Sheets within Accounts payable. Under the new guidance, we anticipate advertising fund contributions from franchisees will be reported on a gross basis within Franchise and other revenues on the Consolidated Statements of Comprehensive Income, and the related advertising expenses will continue to be reported within Restaurant expenses. Additionally, we anticipate that estimated breakage income on gift cards will be recognized in the same pattern as gift cards are utilized. We do not expect breakage income to differ significantly on an annual basis in future years. |
NET INCOME PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | Basic weighted average shares outstanding are reconciled to diluted weighted average shares outstanding as follows (in thousands):
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INCOME TAXES (Tables) |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Reconciliation Of Federal Statutory Tax Expense To Provision For Income Taxes | A reconciliation between the reported provision for income taxes and the amount computed by applying our federal statutory income tax rate of 28.1% to Income before provision for income taxes is as follows (in thousands):
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OTHER GAINS AND CHARGES (Tables) |
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Other Gains and Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Other Gains And Charges Table | Other gains and charges in the Consolidated Statements of Comprehensive Income consist of the following (in thousands):
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands):
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LONG-TERM DEBT (Tables) |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt consists of the following (in thousands):
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ACCRUED AND OTHER LIABILITIES (Tables) |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands):
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Schedule of Other Liabilities | Other liabilities consist of the following (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values of the 2.60% notes, 3.88% notes and 5.00% notes are as follows (in thousands):
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SHAREHOLDERS' DEFICIT (Tables) |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The changes in AOCL related to the CMR joint venture sale for the first thirty-nine weeks ended March 28, 2018 are as follows (in thousands):
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
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Mar. 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Paid for Income Taxes and Interest | Cash paid for income taxes and interest is as follows (in thousands):
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Non-Cash Investing and Financing Activities | Non-cash investing and financing activities are as follows (in thousands):
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Basis of Presentation - Additional Information (Detail) |
Mar. 28, 2018
Location
restaurant
Country
|
---|---|
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,686 |
Number of foreign countries in which entity operates | Country | 31 |
Number of U.S. territories in which entity operates | Location | 2 |
Entity Operated Units [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 997 |
Franchised Units [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 689 |
Adjustment for New Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 [Member] - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | |
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Mar. 28, 2018 |
Mar. 29, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (1.1) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ (0.02) | |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 2.0 |
Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Basic weighted average shares outstanding | 45,433 | 48,954 | 46,719 | 51,211 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 540 | 552 | 476 | 643 |
Diluted weighted average shares outstanding | 45,973 | 49,506 | 47,195 | 51,854 |
Awards excluded due to anti-dilutive effect on diluted net income per share | 974 | 993 | 1,260 | 970 |
Employee Stock Option [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 115 | 168 | 98 | 212 |
Restricted Stock Units (RSUs) [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 425 | 384 | 378 | 431 |
Income Taxes - Reconciliation of Federal Statutory Tax Expense to Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
Jun. 26, 2019 |
Jun. 27, 2018 |
|
Income Tax Disclosure [Line Items] | ||||||
Income tax expense at statutory rate | $ 16,555 | $ 32,373 | ||||
FICA tax credit | (7,087) | (13,857) | ||||
State income taxes, net of federal benefit | 2,284 | 4,467 | ||||
Stock based compensation excess tax (windfall) shortfall | (43) | 1,127 | ||||
Revaluation of deferred taxes | (321) | 8,417 | ||||
Other | 612 | 521 | ||||
Provision for income taxes | $ 12,000 | $ 17,243 | $ 33,048 | $ 40,607 | ||
Scenario, Forecast [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% |
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Mar. 28, 2018 |
Mar. 28, 2018 |
Jun. 26, 2019 |
Jun. 27, 2018 |
|
Income Tax Disclosure [Line Items] | ||||
Revaluation of deferred taxes | $ (321) | $ 8,417 | ||
Scenario, Forecast [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% |
Other Gains and Charges - Schedule of Other Gains and Charges (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 28, 2018 |
Dec. 27, 2017 |
Sep. 27, 2017 |
Mar. 29, 2017 |
Dec. 28, 2016 |
Sep. 28, 2016 |
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Other Gains and Charges [Abstract] | ||||||||
Restaurant closure charges | $ 2,777 | $ 4,300 | $ 794 | $ 2,500 | $ 7,321 | $ 3,621 | ||
Lease guarantee charges | 510 | 1,400 | 0 | 1,943 | 0 | |||
Accelerated depreciation | 483 | 0 | 1,449 | 0 | ||||
Hurricane-related costs | 240 | 0 | 5,460 | 0 | ||||
Foreign currency transaction gain | (948) | 900 | 0 | (66) | 0 | |||
Restaurant impairment charges | 0 | $ 2,000 | $ 7,200 | 0 | $ 1,900 | 9,133 | 1,851 | |
Gain on the sale of assets, net | 0 | (55) | $ (2,600) | (303) | (2,624) | |||
Severance | 0 | 5,929 | 0 | 6,222 | ||||
Information technology restructuring | 0 | 0 | $ 2,500 | 0 | 2,700 | |||
Other | (310) | (68) | 230 | 2,214 | ||||
Other gains and charges | $ 2,752 | $ 6,600 | $ 25,167 | $ 13,984 |
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
Jun. 28, 2017 |
|
Segment Reporting Information [Line Items] | |||||
Company sales | $ 790,495 | $ 790,624 | $ 2,250,125 | $ 2,276,743 | |
Franchise and other revenues | 22,039 | 20,017 | 68,199 | 63,433 | |
Total revenues | 812,534 | 810,641 | 2,318,324 | 2,340,176 | |
Company restaurant expenses | 662,900 | 655,907 | 1,921,649 | 1,930,782 | |
Depreciation and amortization | 37,553 | 39,335 | 113,728 | 117,526 | |
General and administrative | 36,619 | 35,931 | 102,065 | 102,014 | |
Other gains and charges | 2,752 | 6,600 | 25,167 | 13,984 | |
Total operating costs and expenses | 739,824 | 737,773 | 2,162,609 | 2,164,306 | |
Operating income | 72,710 | 72,868 | 155,715 | 175,870 | |
Interest Expense | 14,549 | 13,658 | 42,754 | 36,108 | |
Other, net | (755) | (402) | (2,246) | (1,084) | |
Income before provision for income taxes | 58,916 | 59,612 | 115,207 | 140,846 | |
Assets | 1,336,879 | 1,336,879 | $ 1,403,633 | ||
Payments for property and equipment | 69,503 | 79,730 | |||
Chili's Restaurants [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Company sales | 688,879 | 689,662 | 1,940,076 | 1,970,390 | |
Franchise and other revenues | 17,204 | 15,224 | 51,992 | 47,417 | |
Total revenues | 706,083 | 704,886 | 1,992,068 | 2,017,807 | |
Company restaurant expenses | 572,812 | 565,327 | 1,648,094 | 1,658,067 | |
Depreciation and amortization | 31,011 | 32,386 | 93,818 | 97,630 | |
General and administrative | 10,601 | 8,771 | 29,443 | 28,115 | |
Other gains and charges | (75) | 4,233 | 17,994 | 9,102 | |
Total operating costs and expenses | 614,349 | 610,717 | 1,789,349 | 1,792,914 | |
Operating income | 91,734 | 94,169 | 202,719 | 224,893 | |
Interest Expense | 0 | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 91,734 | 94,169 | 202,719 | 224,893 | |
Assets | 1,126,650 | 1,126,650 | |||
Payments for property and equipment | 58,613 | 60,770 | |||
Maggiano's Restaurants [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Company sales | 101,616 | 100,962 | 310,049 | 306,353 | |
Franchise and other revenues | 4,835 | 4,793 | 16,207 | 16,016 | |
Total revenues | 106,451 | 105,755 | 326,256 | 322,369 | |
Company restaurant expenses | 89,991 | 90,454 | 273,187 | 272,137 | |
Depreciation and amortization | 3,957 | 4,078 | 12,029 | 12,019 | |
General and administrative | 1,420 | 1,624 | 4,202 | 4,836 | |
Other gains and charges | 6 | 0 | 777 | 746 | |
Total operating costs and expenses | 95,374 | 96,156 | 290,195 | 289,738 | |
Operating income | 11,077 | 9,599 | 36,061 | 32,631 | |
Interest Expense | 0 | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 11,077 | 9,599 | 36,061 | 32,631 | |
Assets | 151,649 | 151,649 | |||
Payments for property and equipment | 5,590 | 10,673 | |||
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Company sales | 0 | 0 | 0 | 0 | |
Franchise and other revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Company restaurant expenses | 97 | 126 | 368 | 578 | |
Depreciation and amortization | 2,585 | 2,871 | 7,881 | 7,877 | |
General and administrative | 24,598 | 25,536 | 68,420 | 69,063 | |
Other gains and charges | 2,821 | 2,367 | 6,396 | 4,136 | |
Total operating costs and expenses | 30,101 | 30,900 | 83,065 | 81,654 | |
Operating income | (30,101) | (30,900) | (83,065) | (81,654) | |
Interest Expense | 14,549 | 13,658 | 42,754 | 36,108 | |
Other, net | (755) | (402) | (2,246) | (1,084) | |
Income before provision for income taxes | (43,895) | $ (44,156) | (123,573) | (116,678) | |
Assets | $ 58,580 | 58,580 | |||
Payments for property and equipment | $ 5,300 | $ 8,287 |
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands |
Mar. 28, 2018 |
Jun. 28, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 43,667 | $ 45,417 |
Total long-term debt | 1,375,917 | 1,337,667 |
Less unamortized debt issuance costs and discounts | (6,911) | (8,189) |
Total long-term debt less unamortized debt issuance costs and discounts | 1,369,006 | 1,329,478 |
Less current installments | (7,301) | (9,649) |
Long-term debt, less current installments | 1,361,705 | 1,319,829 |
5.00% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
3.88% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
2.60% notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 432,250 | $ 392,250 |
Accrued and Other Liabilities (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 28, 2018 |
Jun. 28, 2017 |
|||||
---|---|---|---|---|---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | |||||||
Insurance | $ 18,143 | $ 17,484 | |||||
Sales tax | 17,174 | 12,494 | |||||
Dividends | 16,839 | 16,649 | |||||
Interest | 16,628 | 7,696 | |||||
Property tax | 13,952 | 16,566 | |||||
Deferred sale proceeds (1) | 13,706 | [1] | 0 | ||||
Other (2) | [2] | 42,609 | 40,626 | ||||
Other accrued liabilities | $ 139,051 | $ 111,515 | |||||
|
Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 28, 2018 |
Jun. 28, 2017 |
---|---|---|
Accrued and Other Liabilities (Other Liabilities) [Abstract] | ||
Straight-line rent | $ 56,115 | $ 57,464 |
Insurance | 42,138 | 42,532 |
Landlord contributions | 23,527 | 26,402 |
Unfavorable leases | 3,948 | 5,398 |
Unrecognized tax benefits | 3,102 | 3,116 |
Other | 5,889 | 6,212 |
Other liabilities | $ 134,719 | $ 141,124 |
Fair Value Disclosures (Narrative) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 28, 2018
USD ($)
|
Dec. 27, 2017
USD ($)
Restaurants
|
Sep. 27, 2017
USD ($)
Restaurants
|
Mar. 29, 2017
USD ($)
|
Dec. 28, 2016
USD ($)
|
Mar. 28, 2018
USD ($)
|
Mar. 29, 2017
USD ($)
Restaurants
|
|
Schedule of Impairments [Line Items] | |||||||
Carrying Value Of Impaired Long Lived Assets | $ 2,300 | $ 6,000 | $ 1,300 | ||||
Carrying value of reacquired franchise rights | 1,200 | 800 | |||||
Fair value of impaired long lived assets | 300 | 0 | $ 200 | 200 | |||
Restaurant impairment charges | $ 0 | $ 2,000 | $ 7,200 | $ 0 | $ 1,900 | $ 9,133 | 1,851 |
Goodwill, Impairment Loss | 0 | 0 | |||||
Liquor Licenses [Member] | |||||||
Schedule of Impairments [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | |||||
Maggiano's Restaurants [Member] | |||||||
Schedule of Impairments [Line Items] | |||||||
Number Of Underperforming Restaurants | Restaurants | 1 | ||||||
Chili's Restaurants [Member] | |||||||
Schedule of Impairments [Line Items] | |||||||
Number Of Underperforming Restaurants | Restaurants | 1 | 9 | 6 |
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 28, 2018 |
Jun. 28, 2017 |
|
Fair Value Disclosure, Senior Notes [Line Items] | ||
Sales price of JV | $ 18,000 | |
Notes Receivable, Fair Value Disclosure | $ 16,000 | |
2.60% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |
Long-term Debt | $ 249,928 | $ 249,495 |
Long-term Debt, Fair Value | $ 249,800 | 250,480 |
3.88% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |
Long-term Debt | $ 298,178 | 297,912 |
Long-term Debt, Fair Value | $ 285,480 | 286,077 |
5.00% notes [Member] | ||
Fair Value Disclosure, Senior Notes [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Long-term Debt | $ 344,983 | 344,405 |
Long-term Debt, Fair Value | $ 342,300 | $ 347,956 |
Shareholder's Deficit - Additional information (Share Repurchase) (Details) - USD ($) $ in Thousands, shares in Millions |
9 Months Ended | |
---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased, shares | 4.8 | |
Purchases of treasury stock | $ 162,004 | $ 350,768 |
Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
Jun. 28, 2017 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive loss | $ (5,445) | $ (5,445) | $ (11,921) | ||
Cumulative losses as of June 27, 2017 reclassified from AOCL due to disposition | 5,899 | ||||
Current period other comprehensive income before reclassifications | 1,096 | ||||
Current period reclassifications from AOCL due to disposition | (519) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (243) | $ 734 | $ 577 | $ (1,411) |
Supplemental Cash Flow Information - Cash Paid for Income Taxes and Interest (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Supplemental Cash Flow Information [Abstract] | ||
Income taxes, net of refunds | $ 36,227 | $ 63,381 |
Interest, net of amounts capitalized | $ 29,463 | $ 18,595 |
Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Other Significant Noncash Transactions [Line Items] | ||
Retirement of fully depreciated assets | $ 27,917 | $ 17,964 |
Capital lease additions | 6,079 | 1,147 |
Accrued capital expenditures | 5,091 | 4,599 |
Dividend Declared [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Dividends declared but not paid | $ 17,804 | $ 17,276 |
Contingencies - Additional information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 28, 2018 |
Dec. 27, 2017 |
Mar. 29, 2017 |
Mar. 28, 2018 |
Mar. 29, 2017 |
Jun. 28, 2017 |
|
Guarantor Obligations [Line Items] | ||||||
Lease guarantee charges | $ 510 | $ 1,400 | $ 0 | $ 1,943 | $ 0 | |
Payments for Legal Settlements | 1,000 | |||||
Letters of Credit Outstanding, Amount | 31,000 | 31,000 | ||||
Lease Guarantees And Secondary Obligations [Member] | ||||||
Guarantor Obligations [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | 62,600 | 62,600 | $ 69,000 | |||
Loss Contingency, Accrual, Current | $ 2,000 | $ 2,000 | $ 1,100 | |||
Description of Material Contingencies of Parent Company | No other liabilities related to this matter have been recorded |
Loss Contingencies (Details) |
Mar. 28, 2018
LegalMatter
|
---|---|
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 0 |
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
May 04, 2018 |
Mar. 28, 2018 |
Sep. 27, 2017 |
Mar. 29, 2017 |
Sep. 28, 2016 |
Mar. 28, 2018 |
Mar. 29, 2017 |
|
Subsequent Event [Line Items] | |||||||
Dividends per share declared | $ 0.38 | $ 0.38 | $ 0.34 | $ 0.34 | $ 1.14 | $ 1.02 | |
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividend, date of declaration | Apr. 30, 2018 | ||||||
Dividends per share declared | $ 0.38 | ||||||
Dividend, date to be paid | Jun. 28, 2018 | ||||||
Dividend, date of record | Jun. 08, 2018 | ||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from Lines of Credit | $ 26.0 |
EFFECT OF NEW ACCOUNTING STANDARDS ADDITIONAL INFORMATION (Details) $ in Millions |
Jun. 28, 2017
USD ($)
|
---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Leases, Future Minimum Payments Due | $ 606.9 |
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