Shareholders' Equity

12 Months Ended

Dec. 30, 2015

Stockholders' Equity Attributable to Parent [Abstract]

Shareholders' Equity

Shareholders' Equity

Share Repurchases

Our credit facility permits the payment of cash dividends and the purchase of Denny’s stock subject to certain limitations. Over the past several years, our Board of Directors has approved share repurchase programs authorizing us to repurchase up to a set amount of shares or dollar amount of our common stock. Under the programs, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. During 2015, 2013 and 2012, the Board approved share repurchase programs for $100 million of our common stock, 10.0 million shares of our common stock and 6.0 million shares of our common stock, respectively.

In November 2015, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the "ASR") agreement with Wells Fargo Bank, National Association ("Wells Fargo"), to repurchase an aggregate of $50 million of our common stock. Pursuant to the terms of the ASR agreement, we paid $50 million in cash and received approximately 3.5 million shares of our common stock, which represents the minimum shares to be delivered based on the cap price. We recorded $36.9 million of treasury stock related to these shares. The remaining balance of $13.1 million is included as additional paid-in capital in shareholders' equity as of December 30, 2015 as an equity forward contract and will be settled during 2016. The total aggregate number of shares of our common stock repurchased pursuant to the ASR agreement will be based generally on the average of the daily volume-weighted average prices of our common stock, less a fixed discount, over the term of the ASR agreement, subject to a minimum number of shares. The ASR agreement is expected to be completed no later than July 2016, although the completion date may be accelerated or, under certain circumstances, extended, at Wells Fargo's option.

Taking into consideration the above-mentioned ASR agreement, during 2015, 2014 and 2013, we repurchased 8.5 million, 5.3 million and 4.2 million shares for a total of $92.7 million, $36.0 million and $24.7 million, respectively, thus completing the 2012 and 2013 repurchase programs. As of December 30, 2015, there is $37.8 million of our common stock remaining to be repurchased under the 2015 repurchase program.

Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Equity.

Accumulated Other Comprehensive Loss

The components of the change in accumulated other comprehensive loss were as follows:

	Pensions			Derivatives			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 28, 2012	$	(24,999	)	$	—		$	(24,999	)
Benefit obligation actuarial gain	7,873			—			7,873
Net gain	876			—			876
Amortization of net loss (1)	1,724			—			1,724
Net change in fair value of derivatives	—			3,032			3,032
Income tax expense	(4,164		)	(1,184		)	(5,348		)
Balance as of December 25, 2013	$	(18,690	)	$	1,848		$	(16,842	)
Benefit obligation actuarial loss	(12,611		)	—			(12,611		)
Net gain	1,248			—			1,248
Amortization of net loss (1)	990			—			990
Settlement loss recognized	50			—			50
Net change in fair value of derivatives	—			(2,389		)	(2,389		)
Income tax benefit	4,019			933			4,952
Balance as of December 31, 2014	$	(24,994	)	$	392		$	(24,602	)
Benefit obligation actuarial gain	5,737			—			5,737
Net loss	(3,894		)	—			(3,894		)
Amortization of net loss (1)	1,812			—			1,812
Net change in fair value of derivatives	—			(1,444		)	(1,444		)
Reclassification of derivatives to interest expense (2)	—			(859		)	(859		)
Income tax (expense) benefit	(1,425		)	898			(527		)
Balance as of December 30, 2015	$	(22,764	)	$	(1,013	)	$	(23,777	)

(1) Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income. See Note 11 for additional details.

(2) Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Consolidated Statements of Income. We expect to reclassify approximately $1.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.