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Restatement of Previously Issued Financial Statements
9 Months Ended
Sep. 23, 2012
Restatement of Previously Issued Financial Statements
1.
Restatement of Previously Issued Financial Statements
 
We are restating our condensed consolidated financial statements for the three- and nine-month periods ended September 23, 2012 and September 25, 2011. In connection with the evaluation of the accounting for newly formed joint ventures, we reviewed our accounting for our previously existing joint venture arrangements. As a result of our review, we determined an error occurred in the accounting for one joint venture agreement, which contained a mandatorily redeemable feature added through a contract amendment in the third quarter of 2009. This provision contained in the 2009 contract amendment was not previously considered in determining the classification and measurement of the noncontrolling interest. In addition, we determined that an additional redeemable noncontrolling interest was incorrectly classified in shareholders’ equity and should be classified as temporary equity.
 
To correctly reflect the appropriate measurement of the mandatorily redeemable noncontrolling interests, we recorded a $3.1 million adjustment, net of income taxes, to ending 2010 retained earnings in our Consolidated Statements of Stockholders’ Equity to adjust the previously reported balance sheet to its redemption value as of December 26, 2010. Additionally, we also corrected the classification errors of the redeemable noncontrolling interests from stockholders’ equity to either other long-term liabilities or redeemable noncontrolling interests in our consolidated balance sheets. The impact of the restatements on the financial statements is outlined in the tables below (in thousands, except per share data). The corrections had no impact on total revenues, operating income or operating cash flows and had no impact on our compliance with debt covenants in any period presented.
 
 
   
Three Months Ended
 
   
September 23, 2012
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Statement of Comprehensive Income
                 
Interest expense
  $ 284       194     $ 478  
Income before income taxes
    21,057       (194 )     20,863  
Income tax expense
    7,112       (74 )     7,038  
Net income, including noncontrolling interests
    13,945       (120 )     13,825  
Net income, net of noncontrolling interests
    13,151       (120 )     13,031  
Comprehensive income
    15,192       (120 )     15,072  
Basic earnings per common share
    0.57       (0.01 )     0.56  
Earnings per common share - assuming dilution
    0.55       -       0.55  
 
 
   
As of and For The
 
   
Nine Months Ended
 
   
September 23, 2012
 
   
As
Previously
Reported
   
Reclassifications *
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                       
Noncurrent deferred income tax liabilities
  $ 10,508     $ -     $ (2,678 )   $ 7,830  
Long-term accrued income taxes
    4,220       (4,220 )     -       -  
Other long-term liabilities
    24,611       4,220       11,657       40,488  
Redeemable noncontrolling interests
    -       -       4,820       4,820  
Retained earnings
    343,471       -       (4,369 )     339,102  
Noncontrolling interests in subsidiaries
    9,430       -       (9,430 )     -  
Total stockholders' equity
    217,806       -       (13,799 )     204,007  
Condensed Consolidated Statement of Comprehensive Income
                         
Interest expense
  $ 854     $ -     $ 586     $ 1,440  
Income before income taxes
    72,435       -       (586 )     71,849  
Income tax expense
    24,479       -       (223 )     24,256  
Net income, including noncontrolling interests
    47,956       -       (363 )     47,593  
Net income, net of noncontrolling interests
    44,664       -       (363 )     44,301  
Comprehensive income
    48,963       -       (363 )     48,600  
Basic earnings per common share
    1.89       -       (0.02 )     1.87  
Earnings per common share - assuming dilution
    1.85       -       (0.01 )     1.84  
Consolidated Statement of Cash Flows
                               
Net income, including noncontrolling interests
  $ 47,956     $ -     $ (363 )   $ 47,593  
Deferred income taxes
    647       -       (223 )     424  
Other
    3,789       -       586       4,375  
Net cash provided by operating activities
    94,773       -       -       94,773  
                                 
* Amounts have been reclassified from the originally filed presentation in order to conform to the presentation included in the Form 10-K for the fiscal year ended December 30, 2012, and are not associated with the restatement adjustments.
 
   
Three Months Ended
 
   
September 25, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Statement of Comprehensive Income
             
Interest expense
  $ 282     $ 522     $ 804  
Income before income taxes
    16,846       (522 )     16,324  
Income tax expense
    4,906       (199 )     4,707  
Net income, including noncontrolling interests
    11,940       (323 )     11,617  
Net income, net of noncontrolling interests
    11,123       (323 )     10,800  
Comprehensive income
    11,687       (323 )     11,364  
Basic earnings per common share
    0.45       (0.02 )     0.43  
Earnings per common share - assuming dilution
    0.44       (0.01 )     0.43  
 
 
   
As of and For The
 
   
Nine Months Ended
 
   
September 25, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                 
Noncurrent deferred income tax liabilities
  $ 7,110     $ (2,400 )   $ 4,710  
Other long-term liabilities
    11,542       11,003       22,545  
Redeemable noncontrolling interests
    -       3,558       3,558  
Retained earnings
    282,826       (3,916 )     278,910  
Noncontrolling interests in subsidiaries
    8,245       (8,245 )     -  
Total stockholders' equity
    212,554       (12,161 )     200,393  
Condensed Consolidated Statement of Comprehensive Income
                       
Interest expense
  $ 1,183     $ 1,339     $ 2,522  
Income before income taxes
    62,693       (1,339 )     61,354  
Income tax expense
    20,151       (509 )     19,642  
Net income, including noncontrolling interests
    42,542       (830 )     41,712  
Net income, net of noncontrolling interests
    39,674       (830 )     38,844  
Comprehensive income
    43,048       (830 )     42,218  
Basic earnings per common share
    1.57       (0.03 )     1.54  
Earnings per common share - assuming dilution
    1.55       (0.03 )     1.52  
Consolidated Statement of Cash Flows
                       
Net income, including noncontrolling interests
  $ 42,542     $ (830 )   $ 41,712  
Deferred income taxes
    5,219       (509 )     4,710  
Other
    1,272       1,339       2,611  
Net cash provided by operating activities
    87,216       -       87,216  
 
 
   
December 25, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                 
Noncurrent deferred income tax liabilities
  $ 9,147     $ (2,455 )   $ 6,692  
Other long-term liabilities
    25,611       11,065       36,676  
Redeemable noncontrolling interests
    -       3,965       3,965  
Retained earnings
    298,807       (4,006 )     294,801  
Noncontrolling interests in subsidiaries
    8,569       (8,569 )     -  
Total stockholders' equity
    218,222       (12,575 )     205,647  
 
 
 
   
December 26, 2010
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Consolidated Statement of Stockholders' Equity
                 
Retained earnings
  $ 243,152     $ (3,086 )   $ 240,066  
Noncontrolling interests in subsidiaries
    8,506       (8,506 )     -  
Total stockholders' equity
    207,200       (11,592 )     195,608