XML 54 R27.htm IDEA: XBRL DOCUMENT v3.22.4
Shareholders' Equity
 12 Months Ended
Dec. 28, 2022
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Share Repurchases

Our credit facility permits the repurchase of Denny’s stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the 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. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019. During 2017, the Board approved a share repurchase programs for $200 million of our common stock.
During the quarter ended March 25, 2020, we suspended share repurchases as of February 27, 2020 and terminated our previously approved Rule 10b5-1 Repurchase Plan effective March 16, 2020 in light of uncertain market conditions arising from the COVID-19 pandemic. Prior to refinancing our old credit facility in the third quarter of 2021, share repurchase restrictions were in place. As a result of refinancing our credit facility in the third quarter of 2021, we were able to resume our share repurchase program.

During 2022, we repurchased a total of 6.3 million shares of our common stock for approximately $64.9 million. During 2021, we repurchased a total of 2.0 million shares of our common stock for approximately $30.6 million. During 2020, we repurchased a total of 1.7 million shares of our common stock for approximately $34.2 million, thus completing the 2017 repurchase program.

Repurchased shares as of December 28, 2022 and December 29, 2021, are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders’ Deficit.

Retirement of Treasury Stock

In the fourth quarter of fiscal 2020, the Board approved the retirement of 54.0 million shares of Treasury stock at a weighted average share price of $10.26. As of year end December 30, 2020, no shares remained in treasury.

Issuance and Sale of Common Stock

On July 1, 2020, the Company entered into an underwriting agreement with Wells Fargo Securities, LLC, as representative of the several underwriters named therein, for the issuance and sale by the Company of 8,000,000 shares of its common stock, par value $0.01 per share, in an underwritten public offering at a price to the public of $9.15 per share. On July 6, 2020, the Company received net proceeds of $69.6 million from the sale of shares, after deducting the underwriters' discounts and commissions and offering expenses.
Accumulated Other Comprehensive Loss

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

PensionsDerivativesAccumulated Other Comprehensive Loss
(In thousands)
Balance as of December 25, 2019$(781)$(33,179)$(33,960)
Benefit obligation actuarial loss(448)— (448)
Amortization of net loss (1)
89 — 89 
Settlement loss recognized
95 — 95 
Changes in the fair value of cash flow derivatives— (46,910)(46,910)
Reclassification of cash flow derivatives to interest expense, net (2)
— 3,160 3,160 
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income)(3)
— 7,354 7,354 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 783 783 
Income tax benefit67 9,365 9,432 
Balance as of December 30, 2020$(978)$(59,427)$(60,405)
Benefit obligation actuarial loss(46)— (46)
Amortization of net loss (1)
159 — 159 
Changes in the fair value of cash flow derivatives— 4,275 4,275 
Reclassification of cash flow derivatives to interest expense, net (2)
— 4,023 4,023 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 166 166 
Income tax expense(35)(2,607)(2,642)
Balance as of December 29, 2021$(900)$(53,570)$(54,470)
Benefit obligation actuarial gain261 — 261 
Amortization of net loss (1)
123 — 123 
Settlement loss recognized74 — 74 
Changes in the fair value of cash flow derivatives— 13,619 13,619 
Reclassification of cash flow derivatives to interest expense, net (2)
— 1,310 1,310 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 29 29 
Income tax expense(113)(3,530)(3,643)
Balance as of December 28, 2022$(555)$(42,142)$(42,697)

(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 Operations. See Note 12 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, net in our Consolidated Statements of Operations. We expect to receive payments from the counterparty and reclassify approximately $3.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.
(3)     During the quarter ended June 24, 2020, we dedesignated the cash flow relationship and discontinued hedge accounting treatment for the 2018 Swaps. As a result, we reclassified approximately $7.4 million of losses from accumulated other comprehensive loss, net to other nonoperating expense (income), net in our Consolidated Statements of Operations related to the portion of forecasted transaction no longer considered probable of occurring. The remaining losses related to the 2018 Swaps will continue to be included in accumulated other comprehensive loss, net and will be amortized as a component of interest expense, net in our Consolidated Statements of Operations over the remaining term of the 2018 Swaps. We expect to amortize less than $0.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.