Shareholders' Equity

Share Repurchases

Our credit facility permits the purchase of Denny’s stock and the payment of cash dividends 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 2017, 2016 and 2015, the Board approved share repurchase programs for $200 million, $100 million and, $100 million 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 “2015 ASR”) agreement with Wells Fargo Bank, National Association (“Wells Fargo”), to repurchase an aggregate of $50 million of our common stock. During 2015, pursuant to the terms of the 2015 ASR agreement, we paid $50 million in cash, received approximately 3.5 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $36.9 million of treasury stock related to these shares. The remaining balance of $13.1 million was included as additional paid-in capital in shareholders' equity as of December 30, 2015 as an equity forward contract. During 2016, we settled the 2015 ASR agreement, recording $13.1 million of treasury stock related to the final delivery of an additional 1.5 million shares of our common stock. The total number of shares repurchased was based on a combined discounted volume-weighted average price (“VWAP”) of $9.90 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the 2015 ASR agreement.

In November 2016, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the “2016 ASR”) agreement with MUFG Securities EMEA plc (“MUFG”), to repurchase an aggregate of $25 million of our common stock. Pursuant to the terms of the 2016 ASR agreement, we paid $25 million in cash and received approximately 1.5 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $18.1 million of treasury stock related to these shares. The remaining balance of $6.9 million was recorded as additional paid-in capital in shareholders' equity as of December 28, 2016 as an equity forward contract. During 2017, we settled the 2016 ASR agreement, recording $6.9 million of treasury stock related to the final delivery of an additional 0.5 million shares of our common stock. The total number of shares repurchased was based on a combined discounted VWAP of $12.36 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the 2016 ASR agreement.

In addition to the settlement of the 2016 ASR agreement, during 2017, we repurchased a total of 6.8 million shares of our common stock for $82.9 million, thus completing the 2016 repurchase program. In addition to the settlement of the 2015 ASR agreement, during 2016, we repurchased a total of 4.6 million shares for $51.8 million, thus completing the 2015 repurchase program. During 2015, we repurchased 8.5 million shares for $92.7 million, thus completing the 2013 repurchase program. As of December 27, 2017, there was $196.3 million remaining under the 2017 repurchase program.

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

Accumulated Other Comprehensive Loss

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



	Pensions			Derivatives			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31, 2014	$	(24,994	)	$	392		$	(24,602	)
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	)
Benefit obligation actuarial loss	(1,018		)	—			(1,018		)
Net gain	603			—			603
Amortization of net loss ⁽¹⁾	85			—			85
Settlement loss recognized	24,297			—			24,297
Net change in fair value of derivatives	—			1,693			1,693
Reclassification of derivatives to interest expense ⁽²⁾	—			(789		)	(789		)
Income tax expense	(2,148		)	(353		)	(2,501		)
Balance as of December 28, 2016	$	(945	)	$	(462	)	$	(1,407	)
Benefit obligation actuarial loss	(172		)	—			(172		)
Amortization of net loss ⁽¹⁾	92			—			92
Settlement loss recognized	21			—			21
Net change in fair value of derivatives	—			(1,359		)	(1,359		)
Reclassification of derivatives to interest expense ⁽²⁾	—			(72		)	(72		)
Income tax benefit	22			559			581
Balance as of December 27, 2017	$	(982	)	$	(1,334	)	$	(2,316	)


(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 $1.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.