Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 05, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-32731 | ||
Entity Registrant Name | CHIPOTLE MEXICAN GRILL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-1219301 | ||
Entity Address, Address Line One | 610 Newport Center Drive | ||
Entity Address, Address Line Two | Suite 1300 | ||
Entity Address, City or Town | Newport Beach | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92660 | ||
City Area Code | 949 | ||
Local Phone Number | 524-4000 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | CMG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 20,941 | ||
Entity Common Stock, Shares Outstanding | 28,144,065 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III incorporates certain information by reference from the registrant’s definitive proxy statement for the 2021 annual meeting of shareholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001058090 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 607,987 | $ 480,626 |
Accounts receivable, net | 104,500 | 80,545 |
Inventory | 26,445 | 26,096 |
Prepaid expenses and other current assets | 54,906 | 57,076 |
Income tax receivable | 282,783 | 27,705 |
Investments | 343,616 | 400,156 |
Total current assets | 1,420,237 | 1,072,204 |
Leasehold improvements, property and equipment, net | 1,584,311 | 1,458,690 |
Long term investments | 102,328 | 0 |
Restricted cash | 27,849 | 27,855 |
Operating lease assets | 2,767,185 | 2,505,466 |
Other assets | 59,047 | 18,450 |
Goodwill | 21,939 | 21,939 |
Total assets | 5,982,896 | 5,104,604 |
Current liabilities: | ||
Accounts payable | 121,990 | 115,816 |
Accrued payroll and benefits | 203,054 | 126,600 |
Accrued liabilities | 164,649 | 155,843 |
Unearned revenue | 127,750 | 95,195 |
Current operating lease liabilities | 204,756 | 173,139 |
Total current liabilities | 822,199 | 666,593 |
Commitments and contingencies (Note 12) | ||
Long-term operating lease liabilities | 2,952,296 | 2,678,374 |
Deferred income tax liabilities | 149,422 | 37,814 |
Other liabilities | 38,844 | 38,797 |
Total liabilities | 3,962,761 | 3,421,578 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of December 31, 2020 and 2019, respectively | 0 | 0 |
Common stock, $0.01 par value, 230,000 shares authorized, 36,704 and 36,323 shares issued as of December 31, 2020 and 2019, respectively | 367 | 363 |
Additional paid-in capital | 1,549,909 | 1,465,697 |
Treasury stock, at cost, 8,703 and 8,568 common shares as of December 31, 2020 and 2019, respectively | (2,802,075) | (2,699,119) |
Accumulated other comprehensive loss | (4,229) | (5,363) |
Retained earnings | 3,276,163 | 2,921,448 |
Total shareholders' equity | 2,020,135 | 1,683,026 |
Total liabilities and shareholders' equity | $ 5,982,896 | $ 5,104,604 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 600,000,000 | 600,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 230,000,000 | 230,000,000 |
Common stock, shares issued | 36,704,000 | 36,323,000 |
Treasury stock, shares at cost | 8,703,000 | 8,568,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 5,984,634 | $ 5,586,369 | $ 4,864,985 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | |||
Food, beverage and packaging | 1,932,766 | 1,847,916 | 1,600,760 |
Labor | 1,593,013 | 1,472,060 | 1,326,079 |
Occupancy | 387,762 | 363,072 | 347,123 |
Other operating costs | 1,030,012 | 760,831 | 680,031 |
General and administrative expenses | 466,291 | 451,552 | 375,460 |
Depreciation and amortization | 238,534 | 212,778 | 201,979 |
Pre-opening costs | 15,515 | 11,108 | 8,546 |
Impairment, closure costs, and asset disposals | 30,577 | 23,094 | 66,639 |
Total operating expenses | 5,694,470 | 5,142,411 | 4,606,617 |
Income from operations | 290,164 | 443,958 | 258,368 |
Interest and other income, net | 3,617 | 14,327 | 10,068 |
Income before income taxes | 293,781 | 458,285 | 268,436 |
Benefit (provision) for income taxes | 61,985 | (108,127) | (91,883) |
Net income | $ 355,766 | $ 350,158 | $ 176,553 |
Earnings per share: | |||
Basic | $ 12.74 | $ 12.62 | $ 6.35 |
Diluted | $ 12.52 | $ 12.38 | $ 6.31 |
Weighted-average common shares outstanding: | |||
Basic | 27,917 | 27,740 | 27,823 |
Diluted | 28,416 | 28,295 | 27,962 |
Food and Beverage [Member] | |||
Revenue | $ 5,920,545 | $ 5,561,036 | $ 4,860,626 |
Delivery Service [Member] | |||
Revenue | $ 64,089 | $ 25,333 | $ 4,359 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 355,766 | $ 350,158 | $ 176,553 |
Other comprehensive income (loss), net of income taxes: | |||
Foreign currency translation adjustments | 1,134 | 726 | (2,736) |
Unrealized gain on available-for-sale securities, net of income taxes | 0 | 147 | 159 |
Other comprehensive income (loss), net of income taxes | 1,134 | 873 | (2,577) |
Comprehensive income | $ 356,900 | $ 351,031 | $ 173,976 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Common Stock [Member] | Additional Paid-In Capital [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Treasury Stock [Member] | Retained Earnings [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Retained Earnings [Member] | Available-For-Sale Securities [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Available-For-Sale Securities [Member] | Foreign Currency Translation [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Foreign Currency Translation [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Total |
Balance at Dec. 31, 2017 | $ 359 | $ 1,305,090 | $ (2,334,409) | $ 2,397,064 | $ (306) | $ (3,353) | $ 1,364,445 | |||||||
Balance, Shares at Dec. 31, 2017 | 35,852 | 7,826 | ||||||||||||
Stock-based compensation | $ 0 | 69,947 | $ 0 | 0 | 0 | 0 | 69,947 | |||||||
Stock-based compensation, Shares | 0 | 0 | ||||||||||||
Stock plan transactions and other | $ 1 | (883) | $ 0 | 0 | 0 | 0 | (882) | |||||||
Stock plan transactions and other, Shares | 121 | 0 | ||||||||||||
Acquisition of treasury stock (value) | $ 0 | 0 | $ (166,147) | 0 | 0 | 0 | (166,147) | |||||||
Acquisition of treasury stock (shares) | 0 | 450 | ||||||||||||
Net income | $ 0 | 0 | $ 0 | 176,553 | 0 | 0 | 176,553 | |||||||
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 159 | (2,736) | (2,577) | |||||||
Balance (Accounting Standards Update 2016-02 [Member]) at Dec. 31, 2018 | $ 0 | $ 0 | $ (2,327) | $ 0 | $ 0 | $ (2,327) | ||||||||
Balance at Dec. 31, 2018 | $ 360 | 1,374,154 | $ (2,500,556) | 2,573,617 | (147) | (6,089) | 1,441,339 | |||||||
Balance, Shares (Accounting Standards Update 2016-02 [Member]) at Dec. 31, 2018 | 0 | 0 | ||||||||||||
Balance, Shares at Dec. 31, 2018 | 35,973 | 8,276 | ||||||||||||
Stock-based compensation | $ 0 | 92,062 | $ 0 | 0 | 0 | 0 | 92,062 | |||||||
Stock-based compensation, Shares | 0 | 0 | ||||||||||||
Stock plan transactions and other | $ 3 | (519) | $ 0 | 0 | 0 | 0 | (516) | |||||||
Stock plan transactions and other, Shares | 350 | 0 | ||||||||||||
Acquisition of treasury stock (value) | $ 0 | 0 | $ (198,563) | 0 | 0 | 0 | (198,563) | |||||||
Acquisition of treasury stock (shares) | 0 | 292 | ||||||||||||
Net income | $ 0 | 0 | $ 0 | 350,158 | 0 | 0 | 350,158 | |||||||
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 147 | 726 | 873 | |||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ (1,051) | $ 0 | $ 0 | $ (1,051) | ||||||||
Balance at Dec. 31, 2019 | $ 363 | 1,465,697 | $ (2,699,119) | 2,921,448 | 0 | (5,363) | 1,683,026 | |||||||
Balance, Shares (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | 0 | 0 | ||||||||||||
Balance, Shares at Dec. 31, 2019 | 36,323 | 8,568 | ||||||||||||
Stock-based compensation | $ 0 | 84,463 | $ 0 | 0 | 0 | 0 | 84,463 | |||||||
Stock-based compensation, Shares | 0 | 0 | ||||||||||||
Stock plan transactions and other | $ 4 | (251) | $ 0 | 0 | 0 | 0 | (247) | |||||||
Stock plan transactions and other, Shares | 381 | 0 | ||||||||||||
Acquisition of treasury stock (value) | $ 0 | 0 | $ (102,956) | 0 | 0 | 0 | (102,956) | |||||||
Acquisition of treasury stock (shares) | 0 | 135 | ||||||||||||
Net income | $ 0 | 0 | $ 0 | 355,766 | 0 | 0 | 355,766 | |||||||
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 0 | 1,134 | 1,134 | |||||||
Balance at Dec. 31, 2020 | $ 367 | $ 1,549,909 | $ (2,802,075) | $ 3,276,163 | $ 0 | $ (4,229) | $ 2,020,135 | |||||||
Balance, Shares at Dec. 31, 2020 | 36,704 | 8,703 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income | $ 355,766 | $ 350,158 | $ 176,553 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 238,534 | 212,778 | 201,979 |
Amortization of operating lease assets | 184,538 | 163,952 | 0 |
Deferred income tax provision | 108,350 | 29,962 | 10,585 |
Impairment, closure costs, and asset disposals | 28,874 | 15,402 | 61,987 |
Provision for credit losses | 164 | 33 | 125 |
Stock-based compensation expense | 82,626 | 91,396 | 69,164 |
Other | 3,643 | (10,592) | (2,918) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,010 | (2,630) | (8,298) |
Inventory | (394) | (4,530) | (1,722) |
Prepaid expenses and other current assets | (11,442) | (23,066) | (3,811) |
Other assets | (26,577) | 2,818 | (2,005) |
Accounts payable | (3,859) | (973) | 32,080 |
Accrued payroll and benefits | 76,683 | 11,759 | 29,568 |
Accrued liabilities | 5,596 | 36,543 | 14,831 |
Unearned revenue | 36,958 | 30,400 | 6,829 |
Income tax payable/receivable | (255,251) | (32,083) | 14,439 |
Deferred rent | 21,297 | ||
Operating lease liabilities | (165,154) | (151,557) | 0 |
Other long-term liabilities | 1,782 | 1,862 | 869 |
Net cash provided by operating activities | 663,847 | 721,632 | 621,552 |
Investing activities | |||
Purchases of leasehold improvements, property and equipment | (373,352) | (333,912) | (287,390) |
Purchases of investments | (468,418) | (448,754) | (485,188) |
Maturities of investments | 419,078 | 476,723 | 385,000 |
Proceeds from sale of equipment | 13,969 | ||
Acquisitions of equity method investments | (10,025) | ||
Net cash used in investing activities | (432,717) | (291,974) | (387,578) |
Financing activities | |||
Acquisition of treasury stock | (54,401) | (190,617) | (160,937) |
Tax withholding on stock-based compensation awards | (48,555) | (10,420) | (5,411) |
Other financing activities | (1,895) | (698) | (187) |
Net cash used in financing activities | (104,851) | (201,735) | (166,535) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,076 | 406 | (1,457) |
Net change in cash, cash equivalents, and restricted cash | 127,355 | 228,329 | 65,982 |
Cash, cash equivalents, and restricted cash at beginning of year | 508,481 | 280,152 | 214,170 |
Cash, cash equivalents, and restricted cash at end of year | 635,836 | 508,481 | 280,152 |
Supplemental disclosures of cash flow information | |||
Income taxes paid | 85,010 | 109,571 | 67,053 |
Purchases of leasehold improvements, property, and equipment accrued in accounts payable and accrued liabilities | 46,975 | 36,886 | 30,870 |
Acquisition of treasury stock accrued in accounts payable and accrued liabilities | $ 0 | $ 0 | $ 2,474 |
Description Of Business And Sum
Description Of Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description Of Business And Summary Of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies In this annual report on Form 10-K, Chipotle Mexican Grill, Inc., a Delaware corporation, together with its subsidiaries, is collectively referred to as “Chipotle,” “we,” “us,” or “our.” We develop and operate restaurants that serve a relevant menu of burritos, burrito bowls, tacos, and salads, made using fresh, high- quality ingredients. As of December 31, 2020, we operated 2,724 Chipotle restaurants throughout the United States as well as 40 international Chipotle restaurants. We are also an investor in a consolidated entity that owns and operates four Pizzeria Locale restaurants, a fast-casual pizza concept. We manage our operations based on eight regions and have aggregated our operations to one reportable segment. Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and our wholly and majority owned subsidiaries after elimination of all intercompany accounts and transactions. Certain prior-year amounts have been reclassified to conform to the current year presentation. Management Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Cash and Cash Equivalents We consider highly liquid investment instruments purchased with an initial maturity of three months or less to be cash equivalents. We maintain cash and cash equivalent balances that exceed federally-insured limits with a number of financial institutions. Restricted Cash We maintain certain cash balances restricted as to withdrawal or use. Restricted cash assets are primarily insurance-related restricted trust assets. Accounts Receivable Accounts receivable primarily consists of receivables from third party gift card distributors, tenant improvement receivables from landlords, vendor rebates, delivery receivables and interest receivables. Allowance for Credit Losses We closely monitor accounts receivable and held to maturity investment balances and estimate the allowance for credit losses. Our estimate is based on historical collection experience, external market data and other factors, including those related to current market conditions and events. Our credit losses associated with accounts receivable and held-to-maturity investments have not historically been material. We adopted Accounting Standards Update (“ASU”) 2016-13 using the modified retrospective approach on January 1, 2020. The allowance for credit losses was $ 1,588 as of December 31, 2020. The allowance for doubtful accounts was $ 7 as of December 31, 2019. Inventory Inventory , consisting principally of food, beverages, and supplies, is valued at the lower of first-in, first-out cost or net realizable value. Investments Investments classified as trading securities are carried at fair value with any unrealized gain or loss being recorded in the consolidated statements of income. Investments classified as available-for-sale are carried at fair value with unrealized gains and losses, net of tax, included as a component of other comprehensive income (loss), net of income taxes on the consolidated statements of comprehensive income. Held-to-maturity securities are carried at amortized cost. Impairment charges on investments are recognized in interest and other income, net on the consolidated statements of income when management believes the decline in the fair value of the investment is other-than-temporary. Fair Value Measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value, we determine fair value based on the following: Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3: Unobservable inputs for the asset or liability. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Foreign Currency Translation Our international operations use the local currency as the functional currency. Assets and liabilities are translated at exchange rates in effect as of the balance sheet date. Income and expense accounts are translated monthly using average monthly exchange rates. Resulting translation adjustments are recorded as a separate component of other comprehensive income (loss), net of income taxes on the consolidated statement of comprehensive income. Leasehold Improvements, Property and Equipment Leasehold improvements, property and equipment are recorded at cost. Internal costs directly associated with the acquisition, development and construction of a restaurant are capitalized. During the years ended December 31, 2020, 2019 and 2018, we capitalized $ 9,268 , $ 6,735 , and $ 6,285 of internal cost, respectively. Expenditures for refurbishments and improvements that significantly add to the productivity capacity or extend the useful life are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term, which generally includes option periods that are reasonably certain, or the estimated useful lives of the assets. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and any related gain or loss is reflected in impairment, closure costs, and asset disposals in the consolidated statements of income. Assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. At least annually, or when impairment indicators are present, we evaluate, and adjust when necessary, the estimated useful lives of leasehold improvements, property and equipment. The changes in estimated useful lives did not have a material impact on depreciation in any period. The estimated useful lives are: Leasehold improvements and buildings 3 - 20 years Furniture and fixtures 4 - 7 years Equipment 3 - 10 years Leases We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. Our leases generally have remaining terms of 1 - 20 years and most include options to extend the leases for additional 5 -year periods. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods up to a term of 20 years. Operating lease assets and liabilities are recognized at the lease commencement date, which is the date we take possession of the property. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the lease term including reasonably certain renewal periods. As we have no outstanding debt nor committed credit facilities, secured or otherwise, we estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the operating lease asset as reductions of expense over the lease term. Some of our leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales, generally in excess of a stipulated amount. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Goodwill Goodwill is not subject to amortization, but instead is tested for impairment at least annually, or when impairment indicators are present, and we are required to record any necessary impairment adjustments. Impairment is measured as the excess of the carrying value over the fair value of the goodwill. No impairment charges were recognized on goodwill for the years ended December 31, 2020, 2019, and 2018. Other Assets Other assets consist primarily of a rabbi trust as described further in Note 9. “Employee Benefit Plans,” software as a service implementation costs where the service period is greater than one year, transferable liquor licenses which are carried at the lower of fair value or cost, rental deposits related to leased properties and an equity method investment described further in Note 4. “Fair Value of Financial Instruments.” Insurance Liability We are self-insured for a significant portion of our employee health benefits programs, and carry significant retentions for risks and associated liabilities with respect to workers’ compensation, general liability, property and auto damage, employment practices liability, cyber liability and directors and officer’s liability. Predetermined loss limits have been arranged with third party insurance companies to limit exposure to these claims. We record a liability that represents our estimated cost of claims incurred and unpaid as of the balance sheet date. Our estimated liability is not discounted and is based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions, and is closely monitored and adjusted when warranted by changing circumstances. Reserves/Contingencies for Litigation and Other Matters We are involved in various claims and legal actions that arise in the ordinary course of business. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. Income Taxes We compute income taxes using the asset and liability method, under which deferred income tax assets and liabilities are recognized based on the differences between the financial reporting bases and the respective tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period that includes the enactment date. We routinely assess the realizability of our deferred tax assets by jurisdiction and may record a valuation allowance if, based on all available positive and negative evidence, we determine that some portion of the deferred tax assets may not be realized prior to expiration. If we determine that we may be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes during the period in which the determination was made that the deferred tax asset can be realized. We evaluate our tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that based on its technical merits the tax position will be sustained upon examination by the relevant taxing authorities, including resolutions of any related appeals or litigation processes. The tax benefits recognized in the financial statements from such a position are measured based on the largest tax benefit that has a greater than 50 % likelihood of being realized upon settlement with a taxing authority. For uncertain tax positions that do not meet this threshold, we record a related tax reserve in the period in which it arises. We adjust our unrecognized tax benefit liability and provision for income taxes in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new information becomes available that requires a change in recognition and/or measurement of the liability. We recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes in our consolidated statements of income. Accrued interest and penalties are included within the related tax reserve on our consolidated balance sheets. Revenue Recognition We generally recognize revenue, net of discounts and incentives, when payment is tendered at the point of sale. We report revenue net of sales-related taxes collected from customers and remitted to governmental taxing authorities. Beginning with the quarter ended September 30, 2020, we modified the presentation in our consolidated statements of income to disaggregate total revenue between food and beverage revenue and delivery service revenue. Delivery service revenue is comprised of delivery and related service fees charged to customers on sales made through Chipotle’s app and website. Food and beverage revenue primarily relates to the sale of food and beverages. Prior year balances have been reclassified to conform with current year presentation. Delivery We offer our customers delivery in almost all of our geographic regions. Delivery services are fulfilled by third-party service providers. In some cases, we make delivery sales through our website Chipotle.com or the Chipotle App (“White Label Sales”). In other cases, we make delivery sales through a non-Chipotle owned channel, such as the delivery partner’s website or mobile app (“Marketplace Sales”). With respect to White Label Sales, we control the delivery services and generally recognize revenue, including delivery fees, when the delivery partner transfers food to the customer. For these sales, we receive payment directly from the customer at the time of sale. With respect to Marketplace Sales, we generally recognize revenue, excluding delivery fees collected by the delivery partner, when control of the food is transferred to the delivery partner. We receive payment from the delivery partner subsequent to the transfer of food and the payment terms are short-term in nature. Gift Cards We sell gift cards, which do not have expiration dates and we do not deduct non-usage fees from outstanding gift card balances. Gift card balances are initially recorded as unearned revenue. We recognize revenue from gift cards when the gift card is redeemed by the customer. Historically, the majority of gift cards are redeemed within one year. In addition, based on historical redemption rates, a portion of gift cards are not expected to be redeemed and will be recognized as breakage over time in proportion to gift card redemptions . The breakage rates are based on company and program specific information, including historical redemption patterns, and expected remittance to government agencies under unclaimed property laws, if applicable. We evaluate our breakage rate estimate annually, or more frequently as circumstances warrant, and apply that rate to gift card redemptions. Gift card liability balances are typically highest at the end of each calendar year following increased gift card sales during the holiday season; accordingly, revenue recognized from gift card liability balances is highest in the first quarter of each calendar year. Chipotle Rewards Eligible customers who enroll in the Chipotle Rewards loyalty program generally earn points for every dollar spent. After accumulating a certain number of points, the customer earns a reward that can be redeemed for a free entrée. We may also periodically offer promotions, which provide the customer with the opportunity to earn bonus points or free food vouchers (“Bonus Vouchers”). Earned rewards generally expire one to two months after they are issued, and points generally expire if an account is inactive for a period of six months . We defer revenue associated with the estimated selling price of points or Bonus Vouchers earned by customers as each point or Bonus Voucher is earned, net of points we do not expect to be redeemed. The estimated selling price of each point or Bonus Voucher earned is based on the estimated value of product for which the reward is expected to be redeemed. Our estimate of points and Bonus Vouchers we expect to be redeemed is based on historical company specific data. The cost associated with rewards and Bonus Vouchers redeemed are included in food, beverage, and packaging expense on our consolidated statements of income. We recognize loyalty revenue within food and beverage revenue on the consolidated statements of income when a customer redeems an earned reward. Deferred revenue associated with Chipotle Rewards is included in unearned revenue on our consolidated balance sheets. Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred and totaled $ 158,570 , $ 141,567 and $ 111,695 for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising and marketing costs include costs related to free food which a customer does not need to make a purchase to earn. Advertising and marketing costs are included in other operating costs on the consolidated statements of income . Stock-Based Compensation We issue shares as part of employee compensation pursuant to the Amended and Restated Chipotle Mexican Grill, Inc. 2011 Stock Incentive Plan (the “2011 Incentive Plan”). Stock-only stock appreciation rights, or “SOSARs”, and stock awards generally vest equally over two and three years and expire after seven years . Stock-based compensation expense is generally recognized on a straight-line basis for each separate vesting portion. Compensation expense related to employees eligible to retire and retain full rights to the awards is recognized over 12 months which coincides with the service period required to earn the full award. We estimate forfeitures based on historical data when determining the amount of stock-based compensation costs to be recognized in each period. We have also granted stock awards with performance vesting conditions and/or market vesting conditions. Stock awards with performance or market vesting conditions generally vest based on our achievement versus stated targets or criteria over a three-year performance and service period. Compensation expense for stock awards subject to performance conditions is recognized over the longer of the estimated performance goal attainment period or time vesting period. Compensation expense on stock awards subject to performance conditions, which is based on the quantity of awards we have determined are probable of vesting, is recognized over the longer of the estimated performance goal attainment period or time vesting period. Compensation expense is recognized ratably for awards subject to market conditions regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Some stock-based compensation awards are made to employees involved in our new restaurant development activities, and expense for these awards is recognized as capitalized development and included in leasehold improvements, property and equipment, net, on the consolidated balance sheets. Restaurant Pre-Opening Costs Pre-opening costs, including rent, wages, benefits and travel for training and opening teams, food and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business, and are included in operating expenses on the consolidated statements of income. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of reviewing restaurant assets to be held and used for potential impairment, assets are grouped together at the market level, or in the case of a potential relocation or closure, at the restaurant level. We manage our restaurants as a group with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. The fair value measurement for asset impairment is based on Level 3 inputs. See “Fair Value Measurements” above for a description of level inputs. We first compare the carrying value of the asset (or asset group, referred interchangeably throughout as asset) to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value. The estimated fair value of the asset is generally determined using the income approach to measure the fair value, which is based on the present value of estimated future cash flows. Key inputs to the income approach for restaurant assets include the discount rate, projected restaurant revenues and expenses, and sublease income if we are closing the restaurant. In certain cases, management uses other market information, when available, to estimate the fair value of an asset. The impairment charges represent the excess of each asset’s carrying amount over its estimated fair value and are allocated among the long-lived asset or assets of the group. Earnings per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share (“diluted EPS”) is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying SOSARs and non-vested stock awards (collectively “stock awards”). Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Stock awards are excluded from the calculation of diluted EPS in the event they are subject to performance conditions or are antidilutive. Recently Issued Accounting Standards Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740)”, which modifies certain technical guidelines for accounting for income taxes. ASU 2019-12 is effective for reporting periods beginning after December 15, 2020, and early adoption is permitted. We will adopt ASU 2019-12 in the fiscal year beginning January 1, 2021 and do not expect the adoption of ASU 2019-12 will result in a material change to our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements. Recently Adopted Accounting Standards On January 1, 2020 we adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)”, along with related clarifications and improvements. This pronouncement requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We adopted the standard using the modified-retrospective approach as of the effective date and therefore, we have not applied the standard to the comparative periods presented in our consolidated financial statements. The modified-retrospective approach requires an entity to recognize a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which this guidance is effective. As of January 1, 2020, the adoption of this standard resulted in a net increase to the allowance for credit losses of $ 1,414 , a decrease to our deferred income tax liability of $ 363 , and a decrease to retained earnings of $ 1,051 . On January 1, 2020 we adopted ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)”: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which clarifies the accounting for implementation costs in cloud computing arrangements. We adopted the standard prospectively on January 1, 2020. Prior to the adoption of ASU 2018-15, we capitalized implementation costs incurred during the application development phase of cloud computing arrangements to leasehold improvements, property and equipment, net on our consolidated balance sheets and have recognized expense over the useful life of the related asset within depreciation and amortization on our consolidated statements of income. Subsequent to the adoption of ASU 2018-15, we capitalize such costs within prepaid expenses and other current assets or other assets on our consolidated balance sheets and recognize expenses over the expected contract term within general and administrative expenses or other operating costs on our consolidated statements of income, consistent with where the expenses associated with the hosting element of the arrangement are presented. The adoption of ASU 2018-15 did not result in a material change to our consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | 2. Supplemental Balance Sheet Information Leasehold improvements, property and equipment, net were as follows: December 31, 2020 2019 Land $ 12,943 $ 12,943 Leasehold improvements and buildings 1,921,371 1,765,464 Furniture and fixtures 198,387 182,391 Equipment 755,003 653,909 Construction in Progress 76,317 45,422 Leasehold improvements, property and equipment 2,964,021 2,660,129 Accumulated depreciation ( 1,379,710 ) ( 1,201,439 ) Leasehold improvements, property and equipment, net $ 1,584,311 $ 1,458,690 Accrued payroll and benefits were as follows: December 31, 2020 2019 Workers' compensation liability $ 27,630 $ 29,837 Accrued payroll 41,784 31,188 Accrued employer payroll taxes, deferred pursuant to the CARES Act 70,812 - Other accrued payroll and benefits 62,828 65,575 Accrued payroll and benefits $ 203,054 $ 126,600 Accrued liabilities were as follows: December 31, 2020 2019 Sales and use tax payable $ 26,419 $ 26,484 Legal reserve liability 51,214 45,721 Other accrued liabilities 87,016 83,638 Accrued liabilities $ 164,649 $ 155,843 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Gift Cards The gift card liability included in unearned revenue on the consolidated balance sheets was as follows: December 31, December 31, 2020 2019 Gift card liability $ 105,413 $ 84,611 Revenue recognized from the redemption of gift cards that was included in unearned revenue at the beginning of the year was as follows: Year ended December 31, 2020 2019 2018 Revenue recognized from gift card liability balance at the beginning of the year $ 39,612 $ 37,386 $ 36,094 Chipotle Rewards Changes in our Chipotle Rewards liability included in unearned revenue on the consolidated balance sheets were as follows: Year ended December 31, 2020 2019 2018 Chipotle Rewards liability, beginning balance $ 10,584 $ - $ - Revenue deferred 87,259 44,666 - Revenue recognized ( 75,506 ) ( 34,082 ) - Chipotle Rewards liability, ending balance $ 22,337 $ 10,584 $ - |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | 4 . Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying value of our cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of their short-term nature. Our investments consist of U.S. Treasury notes with maturities of up to 16 months, with $ 343,616 maturing within one year from December 31, 2020. Fair value of investments is measured using Level 1 inputs (quoted prices for identical assets in active markets). We designate the appropriate classification of our investments at the time of purchase based upon the intended holding period. Investments, all of which are classified as held-to-maturity, are carried at amortized cost. The fair value of these investments was less than the amortized cost by $ 117 as of December 31, 2020. We recognize a reserve for expected credit losses when lifetime credit losses are expected by management. As of December 31, 2020, management has concluded that there is no risk of non-payment. No impairment charges were recognized on our investments for the year ended December 31, 2020 and 2019. We have elected to fund certain deferred compensation obligations through a rabbi trust, the assets of which are designated as trading securities , as described further in Note 9. “Employee Benefit Plans.” Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as leasehold improvements, property and equipment, operating lease assets, other assets and goodwill. Fair value of these assets are measured using Level 3 inputs (unobservable inputs for the asset or liability). Unobservable inputs include the discount rate, projected restaurant revenues and expenses, and sublease income if we are closing the restaurant. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Carrying value after impairment approximates fair value. The following table summarizes our assets measured at fair value by hierarchy level on a nonrecurring basis: Carrying Value December 31, Level 2020 2019 Leasehold improvements, property and equipment, net 3 $ 4,682 $ 1,411 Operating lease assets 3 10,372 4,270 Total $ 15,054 $ 5,681 For the years ended December 31, 2020, 2019 and 2018 we recorded asset impairments related to restaurants and offices of $ 16,683 , $ 2,897 and $ 56,093 respectively. Equity Method Investment On April 16, 2020, we acquired approximately 10 % of the common stock of a supplier in exchange for cash consideration of $ 7,500 . On August 6, 2020, we acquired an additional 3.2 % of the common stock of a supplier in exchange for cash consideration of $ 2,500 . As of December 31, 2020, we own approximately 12.9 % of the supplier’s common stock and have invested total cash consideration of $ 10,000 . As we are a significant customer of the supplier and maintain board representation, we are accounting for our investment under the equity method. The investment is included within other assets on the consolidated balance sheet as of December 31, 2020, with a carrying value of $ 9,529 . |
Corporate Restructuring Costs
Corporate Restructuring Costs | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Restructuring Costs [Abstract] | |
Corporate Restructuring Costs | 5. Corporate Restructuring Costs In May 2018 , we announced that we would open a headquarters office in Newport Beach, California, consolidate certain corporate administrative functions into our existing office in Columbus, Ohio, and close our existing headquarters offices in Denver, Colorado, as well as additional corporate offices in New York, New York. All affected employees were either offered an opportunity to continue in the new organization or were offered a severance package. We record severance as a one-time termination benefit and recognize the expense ratably over the employees’ required future service period. All other costs, including other employee transition costs, recruitment and relocation costs, office asset impairment and other office closure costs, and third-party and other costs, are recognized in the period incurred. Corporate restructuring costs consist of the following: Year ended December 31, 2020 2019 2018 Employee severance and other employee transition costs (1) $ 303 $ 1,768 $ 6,919 Recruitment and relocation costs (1) 874 6,231 9,952 Office asset impairment and other office closure costs (2) - 1,719 15,571 Third-party and other costs (1) 5,222 4,324 8,836 Stock-based compensation (1) - 134 1,345 Total corporate restructuring costs $ 6,399 $ 14,176 $ 42,623 __________________ (1) Recorded in general and administrative expenses on the consolidated statements of income. (2) Recorded in impairment, closure costs, and asset disposals on the consolidated statements of income. Upon the adoption of Accounting Standards Codification Topic 842 on January 1, 2019, lease termination and other closure liabilities of $ 14,716 were reclassified into operating lease assets and are no longer within the scope of ASC 420, Exit or Disposal Cost Obligations. Changes in our corporate restructuring liabilities which are included in accrued liabilities on the consolidated balance sheets were as follows: December 31, 2019 Charges Payments December 31, 2020 Employee severance and other employee transition costs $ - $ 303 $ ( 303 ) $ - Recruitment and relocation costs 30 874 ( 904 ) - Third-party and other costs - 5,222 ( 5,222 ) - Total restructuring liability $ 30 $ 6,399 $ ( 6,429 ) $ - |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes Income before income taxes, classified by source of income, was as follows: Year ended December 31, 2020 2019 2018 Domestic $ 311,021 $ 465,253 $ 279,955 Foreign ( 17,240 ) ( 6,968 ) ( 11,519 ) Income before income taxes $ 293,781 $ 458,285 $ 268,436 The components of the benefit/(provision) for income taxes were as follows: Year ended December 31, 2020 2019 2018 Current tax: U.S. Federal $ 204,063 $ ( 57,020 ) $ ( 58,878 ) U.S. State ( 32,684 ) ( 20,499 ) ( 21,780 ) Foreign ( 1,044 ) ( 646 ) ( 637 ) 170,335 ( 78,165 ) ( 81,295 ) Deferred tax: U.S. Federal ( 120,066 ) ( 27,231 ) ( 10,541 ) U.S. State 11,507 ( 2,740 ) ( 479 ) Foreign 7,158 2,685 2,261 ( 101,401 ) ( 27,286 ) ( 8,759 ) Valuation allowance ( 6,949 ) ( 2,676 ) ( 1,829 ) Benefit/(provision) for income taxes $ 61,985 $ ( 108,127 ) $ ( 91,883 ) The effective tax rate differs from the statutory tax rates as follows: Year ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of related federal income tax benefit 4.2 4.1 6.6 Federal credits ( 3.5 ) ( 1.7 ) ( 2.1 ) Executive compensation disallowed 2.9 2.0 1.4 Meals and entertainment 0.1 0.1 0.1 Enhanced deduction for food donation ( 0.1 ) - ( 0.1 ) Valuation allowance 1.6 0.5 0.7 Other 1.8 0.8 3.5 Return to provision and other discrete items 2.1 0.1 1.1 Equity compensation related adjustments ( 13.5 ) ( 3.3 ) 2.0 Federal net operating loss ( 37.7 ) - - Effective income tax rate ( 21.1 ) % 23.6 % 34.2 % The effective tax rate for the year ended December 31, 2020, was lower than the effective tax rate for the year ended December 31, 2019, primarily due to stock-based compensation, partially offset by current year increases in non-deductible executive compensation and net excess benefits from the federal net operating loss (“NOL”) generated in the current year that will be carried back to tax years 2015-2017. We have estimated a federal NOL for the year ended December 31, 2020. We expect to carryback the federal NOL generated in the current year to tax years 2015-2017 when the corporate federal income tax rate was 35 %. As a result, for the year ended December 31, 2020, we recorded an income tax benefit of $ 110,765 due to the federal income tax rate differential in 2020 of 21 % versus 2015-2017 of 35 %. The components of the deferred income tax assets and liabilities were as follows: December 31, 2020 2019 Deferred income tax liability: Leasehold improvements, property and equipment $ 298,225 $ 162,291 Goodwill and other assets 1,628 1,537 Prepaid assets and other ( 350 ) 1,290 Operating lease asset 752,864 686,333 Total deferred income tax liability 1,052,367 851,451 Deferred income tax asset: Gift card liability 3,849 6,185 Capitalized transaction costs 324 323 Stock-based compensation and other employee benefits 34,709 41,270 Foreign net operating loss carry-forwards 21,598 13,796 State credits 4,452 4,170 Operating lease liabilities 812,699 741,120 Allowances, reserves and other 25,981 22,973 State net operating loss carry-forwards 22,482 - Valuation allowance ( 23,149 ) ( 16,200 ) Total deferred income tax asset 902,945 813,637 Deferred income tax liabilities $ 149,422 $ 37,814 Gross foreign NOLs were $ 98,710 and $ 68,169 for the year ended December 31, 2020 and 2019, respectively. Our foreign NOLs can be carried forward indefinitely. Gross state NOLs generated across all jurisdictions in which we operate were $ 340,259 and $ 0 for the years ended December 31, 2020 and 2019, respectively. Our state NOLs expire over varying intervals in the future. We had gross valuation allowances against certain foreign deferred tax assets of $ 104,820 and $ 77,191 as of December 31, 2020 and 2019, respectively. The increase in the valuation allowance was primarily due to the recording of a valuation allowance on various foreign tax attributes. Unrecognized Tax Benefits A reconciliation of the unrecognized tax benefits was as follows: Year ended December 31, 2020 2019 2018 Beginning of year $ 15,028 $ 9,360 $ 8,937 (Decrease)/Increase resulting from prior year tax position ( 2,853 ) 5,855 - Increase resulting from current year tax position 1,870 758 751 Settlements with taxing authorities - ( 736 ) - Lapsing of statutes of limitations ( 3,186 ) ( 209 ) ( 328 ) End of year $ 10,859 $ 15,028 $ 9,360 Interest expense related to uncertain tax positions is recognized in interest and other income, net on the consolidated statements of income. Penalties related to uncertain tax positions are recognized in benefit/(provision) for income taxes on the consolidated statements of income. For the years ended December 31, 2020, 2019 and 2018, we recognized $ 554 , $ 1,853 and $ 536 , respectively, in interest expense related to uncertain tax positions. These are gross amounts before any tax benefits and are included in other liabilities on the consolidated balance sheets. As of December 31, 2020 and 2019, we have accrued interest of $ 2,185 and $ 3,054 , respectively. We are no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2016. For the majority of states where we have a significant presence, we are no longer subject to tax examinations by tax authorities for tax years before 2016. Currently, we expect expirations of statutes of limitations, excluding indemnified amounts, on reserves of approximately $ 6,316 within the next twelve months. It is reasonably possible the amount of the unrecognized benefit with respect to certain unrecognized positions could significantly increase or decrease within the next twelve months and would have an impact on net income. Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) On March 27, 2020, President Trump signed into law the CARES Act. Intended to provide economic relief to those impacted by the COVID-19 pandemic, the CARES Act includes provisions, among others, addressing the carryback of NOLs for specific periods, refunds of alternative minimum tax credits, temporary modifications to the limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property (“QIP”). Additionally, the CARES Act, in efforts to enhance business’ liquidity, provides for refundable employee retention tax credits and the deferral of the employer-paid portion of social security taxes. The CARES Act provides for the deferral of the employer-paid portion of social security payroll taxes. We have elected to defer the employer-paid portion of social security payroll taxes through December 31, 2020, of $ 70,812 and will remit such amounts during calendar year 2021. We accelerated tax depreciation expenses due to the technical amendments made by the CARES Act to QIP. As of December 31, 2020, accelerated tax depreciation expenses of $ 60,376 represents a temporary book-to-tax timing difference (i.e., no effective tax rate impact) for income tax purposes and is in deferred income tax liabilities and income tax receivable on the consolidated balance sheet. The CARES Act provides refundable employee retention credits, which can be used to offset payroll tax liabilities. For the year ended December 31, 2020, we recorded a benefit of $ 3,403 , which primarily offsets payroll tax expense. Additionally, as a result of the Canada Emergency Wage Subsidy, for our Canadian employees, we recognized a benefit of $ 2,028 for the year ended December 31, 2020, which primarily offset labor expense. Tax Cuts and Jobs Act Effective for tax years beginning after December 31, 2017, the U.S. corporate income tax rate is 21 % pursuant to the Tax Cuts and Jobs Act (“TCJA”), that was signed into law December 2017. As of December 31, 2018, we completed our accounting for the tax effects of the TCJA and recorded cumulative tax adjustments of $ 6,446 in accordance with SAB 118 guidance . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders’ Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity We have had a stock repurchase program in place since 2008. Through December 31, 2020, we had announced authorizations by our Board of Directors to repurchases shares of common stock which, in the aggregate, authorized expenditures of up to $ 2,800,000 . As of December 31, 2020, $ 115,018 was available to be repurchased under announced repurchase authorizations. Shares repurchased are being held in treasury stock until they are reissued or retired at the discretion of the Board of Directors. On March 20, 2020, we temporarily suspended our share buyback program in the midst of the COVID-19 pandemic. During the years ended December 31, 2020, 2019, and 2018, shares of common stock at a total cost of $ 48,555 , $ 10,420 , and $ 5,411 , respectively, were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock awards. Shares surrendered by the participants in accordance with the applicable award agreements and plan are deemed repurchased by us but are not part of publicly announced share repurchase programs. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Pursuant to the 2011 Incentive Plan, we grant stock options, SOSARs, restricted stock units (“RSUs”), or performance and/or market based restricted stock units (“PSUs”) to employees and non-employee directors. We issue shares of common stock upon the exercise of SOSARs and the vesting of RSUs and PSUs. Under the 2011 Incentive Plan, 6,830 shares of common stock have been authorized and reserved for issuance to eligible participants, of which 2,114 shares were authorized for issuance but not issued or subject to outstanding awards as of December 31, 2020. For purposes of calculating the available shares remaining, each share issuable pursuant to outstanding full value awards, such as RSUs and PSUs, counts as two shares, and each share underlying a stock option or SOSAR count as one share. The following table sets forth total stock-based compensation expense: Year ended December 31, 2020 2019 2018 Stock-based compensation $ 84,463 $ 92,062 $ 69,947 Stock-based compensation, net of income taxes $ 69,904 $ 73,866 $ 51,544 Total capitalized stock-based compensation included in net leasehold improvements, property and equipment on the consolidated balance sheets $ 1,837 $ 666 $ 783 Excess tax benefit (deficit) on stock-based compensation recognized in provision for income taxes $ 49,690 $ 16,203 $ ( 6,162 ) SOSARs A summary of SOSAR activity was as follows (in thousands, except years and per share data): Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, January 1, 2020 1,132 $ 457.14 $ 430,595 Granted 116 874.14 Exercised ( 470 ) 433.10 Forfeited or cancelled ( 30 ) 513.19 Outstanding, December 31, 2020 748 533.71 3.9 637,905 Exercisable, December 31, 2020 235 476.68 1.6 213,697 Vested and expected to vest, December 31, 2020 728 528.03 3.9 625,050 The total intrinsic value of SOSARs exercised during the years ended December 31, 2020, 2019 and 2018, was $ 236,573 , $ 219,984 , and $ 35,907 , respectively. Unrecognized stock-based compensation expense for SOSARs as of December 31, 2020 was $ 22,612 and is expected to be recognized over a weighted average period of 1.4 years. SOSARs expire 7 years after the day they were granted. The weighted average assumptions utilized in the Black-Scholes option-pricing model to estimate the fair value of SOSARs granted each year were as follows: 2020 2019 2018 Risk-free interest rate 1.3 % 2.4 % 2.4 % Expected life (years) 3.8 3.9 3.9 Expected dividend yield 0.0 % 0.0 % 0.0 % Volatility 32.4 % 34.7 % 32.2 % Weighted-average Black-Scholes fair value per share at date of grant $ 231.52 $ 176.79 $ 77.61 The risk-free interest rate is based on U.S. Treasury rates for instruments with similar terms, and the expected life assumption is based on our historical data. We have not paid dividends to date and do not plan to pay dividends in the near future. The volatility assumption is based on our historical data and implied volatility. Non-Vested Stock Awards (RSUs) A summary of RSU award activity was as follows (in thousands, except per share data): Shares Weighted-Average Grant Date Fair Value per Share Outstanding, January 1, 2020 121 $ 408.56 Granted 42 905.96 Vested ( 60 ) 381.71 Forfeited or cancelled ( 11 ) 619.11 Outstanding, December 31, 2020 92 631.66 Vested and expected to vest, December 31, 2020 84 618.08 The weighted average grant date fair value per RSU granted during the years ended December 31, 2019 and 2018, was $ 627.94 and $ 299.25 , respectively. Unrecognized stock-based compensation expense for non-vested RSU stock awards we have determined are probable of vesting was $ 21,221 as of December 31, 2020, and is expected to be recognized over a weighted average period of 1.3 years. The fair value of shares earned as of the vesting date during the years ended December 31, 2020, 2019, and 2018, was $ 47,649 , $ 27,197 , and $ 4,192 , respectively. Non-Vested Performance Stock Awards (PSUs) A summary of PSU award activity was as follows (in thousands, except per share data): Shares Weighted-Average Grant Date Fair Value per Share Outstanding, January 1, 2020 103 $ 479.83 Granted 27 853.03 Vested ( 29 ) 466.22 Expired ( 1 ) 605.39 Outstanding, December 31, 2020 100 583.46 Vested and expected to vest, December 31, 2020 229 765.23 The weighted average fair value per PSU granted during the years ended December 31, 2019 and 2018, was $ 583.13 and $ 327.58 , respectively. The Unrecognized stock-based compensation expense for non-vested PSU stock awards we have determined are probable of vesting was $ 112,767 as of December 31, 2020, and is expected to be recognized over a weighted average period of 1.3 years. The fair value of shares earned as of the vesting date during the years ended December 31, 2020, 2019, and 2018, was $ 60,081 , $ 0 , and $ 9,317 , respectively. During the year ended December 31, 2020 we awarded performance share awards that are subject to service, market, and performance vesting conditions. The quantity of shares that will vest will range from 0 % to 300 % of the target number of shares based on performance factors related to our growth in comparable restaurant sales and average restaurant margin over a three year period beginning on January 1, 2020. If the defined minimum targets are not met, then no shares will vest. Further, in no event may more than 100 % of the target number of PSUs vest if our 3 year total shareholder return is below the 25 th percentile of the constituent companies comprising the S&P 500 on the day of the grant. During the year ended December 31, 2019, we awarded two types of performance share awards that are subject to service and performance vesting conditions. The quantity of shares that will vest range from 0 % to 300 % of the targeted number of shares for both awards. The first award, consisting of 33 shares, will vest based on our growth in comparable restaurant sales and average restaurant margin over a three-year period beginning on January 1, 2019. The second award, consisting of 13 shares, will vest based on performance conditions based on achievement of certain targets related to digital sales, general and administrative expenses as a percentage of revenue, and successful completion of a defined number of strategic initiatives in 2019 and 2020. These awards will vest 40 % on the third anniversary of the grant date and 60 % on the fourth anniversary of the grant date provided required service is completed through these dates. During the year ended December 31, 2018, we awarded performance share awards that are subject to service and performance vesting conditions. The quantity of shares that will vest range from 0 % to 300 % of the targeted number of shares based on performance factors related to our growth in comparable restaurant sales and average restaurant margin over a three year period beginning on January 1, 2018. If the defined minimum targets are not met, then no shares will vest. On December 30, 2020, due to the impact that the COVID-19 pandemic had on the growth in comparable restaurant sales and restaurant margin relative to the trajectory of both of these performance factors prior to the pandemic, and also due to the significant shareholder value created over the performance period of the original award, the Compensation Committee of the Board of Directors modified the 2018 PSU award. This modification pertained to all seven recipients of this award, and resulted in incremental compensation expense of $ 71,441 , of which $ 466 has been recognized during the year ended December 31, 2020. To receive all incremental shares generated through the modification the employees must remain employed through December 31, 2022, and the incremental shares will vest in four installments over this period. The remaining expense will be recognized over this requisite service period. The incremental compensation cost is calculated by multiplying the number of incremental shares generated though the modification by the stock price on the modification date. The stock price on the modification date of December 30, 2020 was $ 1,374.17 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans Defined Contribution Plan— We maintain the Chipotle Mexican Grill 401(k) Plan (“401(k) Plan”). We match 100 % of the first 3 % of pay contributed by each eligible employee and 50 % on the next 2 % of pay contributed. Employees become eligible to receive matching contributions after one year of service with Chipotle. For the years ended December 31, 2020, 2019, and 2018, matching contributions totaled approximately $ 8,490 , $ 6,968 and $ 6,090 , respectively and are included in general and administrative expenses on the consolidated statements of income. Deferred Compensation Plan— We also maintain the Chipotle Mexican Grill, Inc. Supplemental Deferred Investment Plan (the “Deferred Plan”) which covers our eligible employees. The Deferred Plan is a non-qualified plan that allows participants to make tax-deferred contributions that cannot be made under the 401(k) Plan because of Internal Revenue Service limitations. Participants’ earnings on contributions made to the Deferred Plan fluctuate with the actual earnings and losses of a variety of available investment choices selected by the participant. Total liabilities under the Deferred Plan as of December 31, 2020 and 2019, were $ 15,296 and $ 12,811 , respectively, and are included in other liabilities on the consolidated balance sheets. We match 100 % of the first 3 % of pay contributed by each eligible employee and 50 % on the next 2 % of pay contributed once the 401(k) contribution limits are reached. We have elected to fund our deferred compensation obligation through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are invested in mutual funds, consistent with the investment choices selected by participants in their Deferred Plan accounts, which are designated as trading securities, carried at fair value, and are included in other assets on the consolidated balance sheets. Fair value of rabbi trust investments in mutual funds is measured using Level 1 inputs. The fair value of the investments in the rabbi trust was $ 15,296 and $ 12,811 as of December 31, 2020 and 2019, respectively. We record trading gains and losses in general and administrative expenses on the consolidated statements of income, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred plan. Employee Stock Purchase Plan— We also offer an employee stock purchase plan (“ESPP”). Employees become eligible to participate after one year of service with Chipotle and may contribute up to 15 % of their base earnings, subject to an annual maximum dollar amount, toward the monthly purchase of our common stock. The purchase price is 95 % of the fair market value of the stock on the last trading date of the monthly exercise period. Under the ESPP, 250 shares of common stock have been authorized and reserved for issuances to eligible employees, of which 245 represent shares that were authorized for issuance but not issued at December 31, 2020. For the years ended December 31, 2020, 2019, and 2018, the number of shares issued each year under the ESPP was less than one . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 10. Leases Related to the adoption of Topic 842, and for leases executed subsequent to the adoption of Topic 842 our policy elections are as follows: Separation of lease and non-lease components We elected this expedient to account for lease and non-lease components as a single component for our entire population of operating lease assets. Short-term policy We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the consolidated balance sheets. The weighted average remaining lease term and discount rate were as follows: December 31, December 31, 2020 2019 Weighted average remaining lease term (years) 13.4 13.4 Weighted average discount rate 4.92 % 5.19 % The components of lease cost were as follows: Year ended December 31, Classification 2020 2019 Operating lease cost Occupancy, Other operating costs, General and administrative expenses and Pre-opening costs $ 333,878 $ 308,586 Short-term lease cost Other operating costs 36 3,238 Variable lease cost Occupancy 37,860 36,828 Sublease income General and administrative expenses ( 3,588 ) ( 3,385 ) Total lease cost $ 368,186 $ 345,267 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting, rental expense for the year ended December 31, 2018 was $ 297,568 . Supplemental disclosures of cash flow information related to leases were as follows: Year ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 316,249 $ 295,113 Operating lease assets obtained in exchange for operating lease liabilities (1) $ 484,888 $ 2,702,778 Derecognition of operating lease assets due to terminations or impairment $ 20,242 $ 17,740 (1) Amounts for the year ended December 31, 2019, include the transition adjustment for the adoption of Topic 842 discussed in Note 1. “Description of Business and Summary of Significant Accounting Policies” on Annual Report on Form 10-K for the year ended December 31, 2019. Maturities of lease liabilities were as follows as of December 31, 2020: Operating Leases 2021 $ 318,990 2022 344,902 2023 340,328 2024 329,819 2025 321,444 Thereafter 2,660,361 Total lease payments 4,315,844 Less: imputed interest 1,158,792 Present value of lease liabilities $ 3,157,052 As of December 31, 2020, the total lease payments include $ 2,117,481 related to options to extend lease terms that are reasonably certain of being exercised, and exclude approximately $ 184,358 of legally binding minimum lease payments for leases signed but not yet commenced and $ 14,735 of future sublease income. In April 2020, the FASB issued guidance allowing entities to make a policy election whether to account for lease concessions related to the COVID-19 pandemic as lease modifications. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. During the year ended December 31, 2020, we have received non-substantial concessions from certain landlords in the form of rent deferrals and abatements. We have elected to not account for these rent concessions as lease modifications. The recognition of rent concessions did not have a material impact on our consolidated financial statements as of December 31, 2020. We have six sale and leaseback transactions, which do not qualify for sale leaseback accounting due to fixed price renewal options prohibiting sale accounting. These transactions are accounted for under the financing method. Under the financing method, the assets remain on the consolidated balance sheets and the proceeds from the transactions are recorded as a financing liability. A portion of lease payments are applied as payments of deemed principal and imputed interest. The deemed landlord financing liability was $ 1,845 and $ 2,131 as of December 31, 2020, and 2019, respectively, with the current portion of the liability included in accrued liabilities, and the remaining portion included in other liabilities on the consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share The following table sets forth the computations of basic and diluted earnings per share: Year ended December 31, 2020 2019 2018 Net income $ 355,766 $ 350,158 $ 176,553 Shares: Weighted-average number of common shares outstanding (for basic calculation) 27,917 27,740 27,823 Dilutive stock awards 499 555 139 Weighted-average number of common shares outstanding (for diluted calculation) 28,416 28,295 27,962 Basic earnings per share $ 12.74 $ 12.62 $ 6.35 Diluted earnings per share $ 12.52 $ 12.38 $ 6.31 The following stock awards were excluded from the calculation of diluted earnings per share: Year ended December 31, 2020 2019 2018 Stock awards subject to performance conditions 87 81 95 Stock awards that were antidilutive 57 139 1,741 Total stock awards excluded from diluted earnings per share 144 220 1,836 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12. Commitments and Contingencies Purchase Obligations We enter into various purchase obligations in the ordinary course of business, generally of a short-term nature. Those that are binding primarily relate to commitments for food purchases and supplies, amounts owed under contractor and subcontractor agreements, orders submitted for equipment for restaurants under construction, and marketing initiatives and corporate sponsorships. Litigation Settlement of DOJ Investigation On January 28, 2016, we were served with a Federal Grand Jury Subpoena from the U.S. District of California relating to an official criminal investigation being conducted by the U.S. Attorney’s Office for the Central District of California, in conjunction with the U.S. Food and Drug Administration’s Office of Criminal Investigations (collectively, the “DOJ”). The subpoena required the production of documents and information related to company-wide food safety matters dating back to January 1, 2013. On April 21, 2020, we announced that we have signed a Deferred Prosecution Agreement to resolve this investigation. Pursuant to the Agreement, the DOJ has agreed to take no legal action relating to these past incidents for three years provided that Chipotle complies with its obligations under the Agreement, which include payment of a $ 25,000 fine (of which $ 10,000 was paid on June 1, 2020, and $ 15,000 was paid in the third quarter of 2020) and enhancing and maintaining our existing comprehensive compliance program which is designed to ensure that we comply with all applicable federal and state food safety laws. Shareholder Class Action On January 8, 2016, Susie Ong filed a complaint in the U.S. District Court for the Southern District of New York on behalf of a purported class of purchasers of shares of our common stock between February 4, 2015 and January 5, 2016. The complaint purports to state claims against us, each of the co-Chief Executive Officers serving during the claimed class period and the Chief Financial Officer under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and related rules, based on our alleged failure during the claimed class period to disclose material information about our quality controls and safeguards in relation to consumer and employee health. The complaint asserts that those failures and related public statements were false and misleading and that, as a result, the market price of our stock was artificially inflated during the claimed class period. The complaint seeks damages on behalf of the purported class in an unspecified amount, interest, and an award of reasonable attorneys’ fees, expert fees, and other costs. On March 22, 2018, the court granted our motion to dismiss, with prejudice. On April 20, 2018, the plaintiffs filed a motion for relief from the judgment and seeking leave to file a third amended complaint, and on November 20, 2018, the court denied the motion. On December 20, 2018, the plaintiff initiated an appeal to the U.S. Court of Appeals for the Second Circuit, and on October 1, 2020, the court denied the plaintiffs' motion for an en banc rehearing. Miscellaneous We are involved in various other claims and legal actions, such as wage and hour, wrongful termination and other employment-related claims, slip and fall and other personal injury claims, and lease and other commercial disputes, that arise in the ordinary course of business, some of which may be covered by insurance. The outcomes of these actions are not predictable, but we do not believe that the ultimate resolution of these actions will have a material adverse effect on our financial position, results of operations, liquidity, or capital resources. However, a significant increase in the number of these claims, or one or more successful claims under which we incur greater liabilities than we currently anticipate, could materially and adversely affect our business, financial condition, results of operations and cash flows. Accrual for Estimated Liability As of December 31, 2020, we had a balance of $ 53,242 included within accrued liabilities on the consolidated balance sheets. The settlements are part of our plan to resolve longstanding legal proceedings whenever appropriate to better allow us to focus on our strategic priorities. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt [Abstract] | |
Debt | 13. Debt On May 8, 2020, we entered into a $ 600,000 revolving credit facility with JPMorgan Chase Bank as administrative agent, which expires on May 7, 2021 . We pay a commitment fee of 0.625 % per year for unused amounts under the credit facility. Interest on borrowings currently bear interest at a rate equal to the London Interbank Offered Rate (LIBOR) plus 1.50 %, which may increase due to changes in our total leverage ratio as defined in the credit agreement. Further, we are subject to certain covenants, which include (i) maintaining a total leverage ratio of less than 3.0 x, (ii) maintaining a consolidated fixed charge coverage ratio of greater than 1.5 x and (iii) limiting us from making investments and capital expenditures in certain circumstances. We had no outstanding borrowings under the credit facility as of December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions In April 2020, we acquired common stock of a supplier. As of December 31, 2020, we own approximately 12.9 % of the common stock of a supplier. As we are a significant customer of the supplier and maintain board representation, we are accounting for our investment under the equity method. Accordingly, we have identified the supplier as a related party. We purchase product from the supplier, which we sell to customers in our restaurants. During the year ended December 31, 2020, purchases from the supplier were $ 11,931 . |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 15. Quarterly Financial Data (Unaudited) The following table presents summarized unaudited quarterly financial data from the consolidated statements of income for each of the eight quarters in the periods ended December 31, 2020 and December 31, 2019. The operating results for any quarter are not necessarily indicative of the results for any subsequent quarter. Basic and diluted net income per share calculations for each quarter is based on the weighted average diluted shares outstanding for that quarter and may not sum to the full year total amount as presented on our consolidated statements of income: 2020 March 31 June 30 September 30 December 31 Total Revenue $ 1,410,772 $ 1,364,738 $ 1,601,414 $ 1,607,710 Income (loss) from operations $ 71,121 $ ( 4,939 ) $ 107,096 $ 116,886 Net income $ 76,388 $ 8,175 $ 80,244 $ 190,959 Basic earnings per share $ 2.75 $ 0.29 $ 2.87 $ 6.82 Diluted earnings per share $ 2.70 $ 0.29 $ 2.82 $ 6.69 2019 March 31 June 30 September 30 December 31 Total Revenue $ 1,308,217 $ 1,434,231 $ 1,403,697 $ 1,440,224 Income from operations $ 110,161 $ 120,020 $ 115,621 $ 98,156 Net income $ 88,132 $ 91,028 $ 98,582 $ 72,416 Basic earnings per share $ 3.18 $ 3.28 $ 3.55 $ 2.61 Diluted earnings per share $ 3.13 $ 3.22 $ 3.47 $ 2.55 |
Description Of Business And S_2
Description Of Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation And Basis Of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and our wholly and majority owned subsidiaries after elimination of all intercompany accounts and transactions. Certain prior-year amounts have been reclassified to conform to the current year presentation. |
Management Estimates | Management Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. |
Cash And Cash Equivalents | Cash and Cash Equivalents We consider highly liquid investment instruments purchased with an initial maturity of three months or less to be cash equivalents. We maintain cash and cash equivalent balances that exceed federally-insured limits with a number of financial institutions. |
Restricted Cash | Restricted Cash We maintain certain cash balances restricted as to withdrawal or use. Restricted cash assets are primarily insurance-related restricted trust assets. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consists of receivables from third party gift card distributors, tenant improvement receivables from landlords, vendor rebates, delivery receivables and interest receivables. |
Allowance For Credit Losses | Allowance for Credit Losses We closely monitor accounts receivable and held to maturity investment balances and estimate the allowance for credit losses. Our estimate is based on historical collection experience, external market data and other factors, including those related to current market conditions and events. Our credit losses associated with accounts receivable and held-to-maturity investments have not historically been material. We adopted Accounting Standards Update (“ASU”) 2016-13 using the modified retrospective approach on January 1, 2020. The allowance for credit losses was $ 1,588 as of December 31, 2020. The allowance for doubtful accounts was $ 7 as of December 31, 2019. |
Inventory | Inventory Inventory , consisting principally of food, beverages, and supplies, is valued at the lower of first-in, first-out cost or net realizable value. |
Investments | Investments Investments classified as trading securities are carried at fair value with any unrealized gain or loss being recorded in the consolidated statements of income. Investments classified as available-for-sale are carried at fair value with unrealized gains and losses, net of tax, included as a component of other comprehensive income (loss), net of income taxes on the consolidated statements of comprehensive income. Held-to-maturity securities are carried at amortized cost. Impairment charges on investments are recognized in interest and other income, net on the consolidated statements of income when management believes the decline in the fair value of the investment is other-than-temporary. |
Fair Value Measurements | Fair Value Measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value, we determine fair value based on the following: Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3: Unobservable inputs for the asset or liability. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Foreign Currency Translation | Foreign Currency Translation Our international operations use the local currency as the functional currency. Assets and liabilities are translated at exchange rates in effect as of the balance sheet date. Income and expense accounts are translated monthly using average monthly exchange rates. Resulting translation adjustments are recorded as a separate component of other comprehensive income (loss), net of income taxes on the consolidated statement of comprehensive income. |
Leasehold Improvements, Property And Equipment | Leasehold Improvements, Property and Equipment Leasehold improvements, property and equipment are recorded at cost. Internal costs directly associated with the acquisition, development and construction of a restaurant are capitalized. During the years ended December 31, 2020, 2019 and 2018, we capitalized $ 9,268 , $ 6,735 , and $ 6,285 of internal cost, respectively. Expenditures for refurbishments and improvements that significantly add to the productivity capacity or extend the useful life are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term, which generally includes option periods that are reasonably certain, or the estimated useful lives of the assets. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and any related gain or loss is reflected in impairment, closure costs, and asset disposals in the consolidated statements of income. Assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. At least annually, or when impairment indicators are present, we evaluate, and adjust when necessary, the estimated useful lives of leasehold improvements, property and equipment. The changes in estimated useful lives did not have a material impact on depreciation in any period. The estimated useful lives are: Leasehold improvements and buildings 3 - 20 years Furniture and fixtures 4 - 7 years Equipment 3 - 10 years |
Leases | Leases We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. Our leases generally have remaining terms of 1 - 20 years and most include options to extend the leases for additional 5 -year periods. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods up to a term of 20 years. Operating lease assets and liabilities are recognized at the lease commencement date, which is the date we take possession of the property. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the lease term including reasonably certain renewal periods. As we have no outstanding debt nor committed credit facilities, secured or otherwise, we estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the operating lease asset as reductions of expense over the lease term. Some of our leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales, generally in excess of a stipulated amount. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Goodwill | Goodwill Goodwill is not subject to amortization, but instead is tested for impairment at least annually, or when impairment indicators are present, and we are required to record any necessary impairment adjustments. Impairment is measured as the excess of the carrying value over the fair value of the goodwill. No impairment charges were recognized on goodwill for the years ended December 31, 2020, 2019, and 2018. |
Other Assets | Other Assets Other assets consist primarily of a rabbi trust as described further in Note 9. “Employee Benefit Plans,” software as a service implementation costs where the service period is greater than one year, transferable liquor licenses which are carried at the lower of fair value or cost, rental deposits related to leased properties and an equity method investment described further in Note 4. “Fair Value of Financial Instruments.” |
Insurance Liability | Insurance Liability We are self-insured for a significant portion of our employee health benefits programs, and carry significant retentions for risks and associated liabilities with respect to workers’ compensation, general liability, property and auto damage, employment practices liability, cyber liability and directors and officer’s liability. Predetermined loss limits have been arranged with third party insurance companies to limit exposure to these claims. We record a liability that represents our estimated cost of claims incurred and unpaid as of the balance sheet date. Our estimated liability is not discounted and is based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions, and is closely monitored and adjusted when warranted by changing circumstances. |
Reserves/Contingencies For Litigation And Other Matters | Reserves/Contingencies for Litigation and Other Matters We are involved in various claims and legal actions that arise in the ordinary course of business. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. |
Income Taxes | Income Taxes We compute income taxes using the asset and liability method, under which deferred income tax assets and liabilities are recognized based on the differences between the financial reporting bases and the respective tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period that includes the enactment date. We routinely assess the realizability of our deferred tax assets by jurisdiction and may record a valuation allowance if, based on all available positive and negative evidence, we determine that some portion of the deferred tax assets may not be realized prior to expiration. If we determine that we may be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes during the period in which the determination was made that the deferred tax asset can be realized. We evaluate our tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that based on its technical merits the tax position will be sustained upon examination by the relevant taxing authorities, including resolutions of any related appeals or litigation processes. The tax benefits recognized in the financial statements from such a position are measured based on the largest tax benefit that has a greater than 50 % likelihood of being realized upon settlement with a taxing authority. For uncertain tax positions that do not meet this threshold, we record a related tax reserve in the period in which it arises. We adjust our unrecognized tax benefit liability and provision for income taxes in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new information becomes available that requires a change in recognition and/or measurement of the liability. We recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes in our consolidated statements of income. Accrued interest and penalties are included within the related tax reserve on our consolidated balance sheets. |
Revenue Recognition | Revenue Recognition We generally recognize revenue, net of discounts and incentives, when payment is tendered at the point of sale. We report revenue net of sales-related taxes collected from customers and remitted to governmental taxing authorities. Beginning with the quarter ended September 30, 2020, we modified the presentation in our consolidated statements of income to disaggregate total revenue between food and beverage revenue and delivery service revenue. Delivery service revenue is comprised of delivery and related service fees charged to customers on sales made through Chipotle’s app and website. Food and beverage revenue primarily relates to the sale of food and beverages. Prior year balances have been reclassified to conform with current year presentation. Delivery We offer our customers delivery in almost all of our geographic regions. Delivery services are fulfilled by third-party service providers. In some cases, we make delivery sales through our website Chipotle.com or the Chipotle App (“White Label Sales”). In other cases, we make delivery sales through a non-Chipotle owned channel, such as the delivery partner’s website or mobile app (“Marketplace Sales”). With respect to White Label Sales, we control the delivery services and generally recognize revenue, including delivery fees, when the delivery partner transfers food to the customer. For these sales, we receive payment directly from the customer at the time of sale. With respect to Marketplace Sales, we generally recognize revenue, excluding delivery fees collected by the delivery partner, when control of the food is transferred to the delivery partner. We receive payment from the delivery partner subsequent to the transfer of food and the payment terms are short-term in nature. Gift Cards We sell gift cards, which do not have expiration dates and we do not deduct non-usage fees from outstanding gift card balances. Gift card balances are initially recorded as unearned revenue. We recognize revenue from gift cards when the gift card is redeemed by the customer. Historically, the majority of gift cards are redeemed within one year. In addition, based on historical redemption rates, a portion of gift cards are not expected to be redeemed and will be recognized as breakage over time in proportion to gift card redemptions . The breakage rates are based on company and program specific information, including historical redemption patterns, and expected remittance to government agencies under unclaimed property laws, if applicable. We evaluate our breakage rate estimate annually, or more frequently as circumstances warrant, and apply that rate to gift card redemptions. Gift card liability balances are typically highest at the end of each calendar year following increased gift card sales during the holiday season; accordingly, revenue recognized from gift card liability balances is highest in the first quarter of each calendar year. Chipotle Rewards Eligible customers who enroll in the Chipotle Rewards loyalty program generally earn points for every dollar spent. After accumulating a certain number of points, the customer earns a reward that can be redeemed for a free entrée. We may also periodically offer promotions, which provide the customer with the opportunity to earn bonus points or free food vouchers (“Bonus Vouchers”). Earned rewards generally expire one to two months after they are issued, and points generally expire if an account is inactive for a period of six months . We defer revenue associated with the estimated selling price of points or Bonus Vouchers earned by customers as each point or Bonus Voucher is earned, net of points we do not expect to be redeemed. The estimated selling price of each point or Bonus Voucher earned is based on the estimated value of product for which the reward is expected to be redeemed. Our estimate of points and Bonus Vouchers we expect to be redeemed is based on historical company specific data. The cost associated with rewards and Bonus Vouchers redeemed are included in food, beverage, and packaging expense on our consolidated statements of income. We recognize loyalty revenue within food and beverage revenue on the consolidated statements of income when a customer redeems an earned reward. Deferred revenue associated with Chipotle Rewards is included in unearned revenue on our consolidated balance sheets. |
Advertising And Marketing Costs | Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred and totaled $ 158,570 , $ 141,567 and $ 111,695 for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising and marketing costs include costs related to free food which a customer does not need to make a purchase to earn. Advertising and marketing costs are included in other operating costs on the consolidated statements of income . |
Stock-Based Compensation | Stock-Based Compensation We issue shares as part of employee compensation pursuant to the Amended and Restated Chipotle Mexican Grill, Inc. 2011 Stock Incentive Plan (the “2011 Incentive Plan”). Stock-only stock appreciation rights, or “SOSARs”, and stock awards generally vest equally over two and three years and expire after seven years . Stock-based compensation expense is generally recognized on a straight-line basis for each separate vesting portion. Compensation expense related to employees eligible to retire and retain full rights to the awards is recognized over 12 months which coincides with the service period required to earn the full award. We estimate forfeitures based on historical data when determining the amount of stock-based compensation costs to be recognized in each period. We have also granted stock awards with performance vesting conditions and/or market vesting conditions. Stock awards with performance or market vesting conditions generally vest based on our achievement versus stated targets or criteria over a three-year performance and service period. Compensation expense for stock awards subject to performance conditions is recognized over the longer of the estimated performance goal attainment period or time vesting period. Compensation expense on stock awards subject to performance conditions, which is based on the quantity of awards we have determined are probable of vesting, is recognized over the longer of the estimated performance goal attainment period or time vesting period. Compensation expense is recognized ratably for awards subject to market conditions regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Some stock-based compensation awards are made to employees involved in our new restaurant development activities, and expense for these awards is recognized as capitalized development and included in leasehold improvements, property and equipment, net, on the consolidated balance sheets. |
Restaurant Pre-Opening Costs | Restaurant Pre-Opening Costs Pre-opening costs, including rent, wages, benefits and travel for training and opening teams, food and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business, and are included in operating expenses on the consolidated statements of income. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of reviewing restaurant assets to be held and used for potential impairment, assets are grouped together at the market level, or in the case of a potential relocation or closure, at the restaurant level. We manage our restaurants as a group with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. The fair value measurement for asset impairment is based on Level 3 inputs. See “Fair Value Measurements” above for a description of level inputs. We first compare the carrying value of the asset (or asset group, referred interchangeably throughout as asset) to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value. The estimated fair value of the asset is generally determined using the income approach to measure the fair value, which is based on the present value of estimated future cash flows. Key inputs to the income approach for restaurant assets include the discount rate, projected restaurant revenues and expenses, and sublease income if we are closing the restaurant. In certain cases, management uses other market information, when available, to estimate the fair value of an asset. The impairment charges represent the excess of each asset’s carrying amount over its estimated fair value and are allocated among the long-lived asset or assets of the group. |
Earnings Per Share | Earnings per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share (“diluted EPS”) is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying SOSARs and non-vested stock awards (collectively “stock awards”). Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Stock awards are excluded from the calculation of diluted EPS in the event they are subject to performance conditions or are antidilutive. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740)”, which modifies certain technical guidelines for accounting for income taxes. ASU 2019-12 is effective for reporting periods beginning after December 15, 2020, and early adoption is permitted. We will adopt ASU 2019-12 in the fiscal year beginning January 1, 2021 and do not expect the adoption of ASU 2019-12 will result in a material change to our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements. Recently Adopted Accounting Standards On January 1, 2020 we adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)”, along with related clarifications and improvements. This pronouncement requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We adopted the standard using the modified-retrospective approach as of the effective date and therefore, we have not applied the standard to the comparative periods presented in our consolidated financial statements. The modified-retrospective approach requires an entity to recognize a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which this guidance is effective. As of January 1, 2020, the adoption of this standard resulted in a net increase to the allowance for credit losses of $ 1,414 , a decrease to our deferred income tax liability of $ 363 , and a decrease to retained earnings of $ 1,051 . On January 1, 2020 we adopted ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)”: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which clarifies the accounting for implementation costs in cloud computing arrangements. We adopted the standard prospectively on January 1, 2020. Prior to the adoption of ASU 2018-15, we capitalized implementation costs incurred during the application development phase of cloud computing arrangements to leasehold improvements, property and equipment, net on our consolidated balance sheets and have recognized expense over the useful life of the related asset within depreciation and amortization on our consolidated statements of income. Subsequent to the adoption of ASU 2018-15, we capitalize such costs within prepaid expenses and other current assets or other assets on our consolidated balance sheets and recognize expenses over the expected contract term within general and administrative expenses or other operating costs on our consolidated statements of income, consistent with where the expenses associated with the hosting element of the arrangement are presented. The adoption of ASU 2018-15 did not result in a material change to our consolidated financial statements. |
Description Of Business And S_3
Description Of Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives Of Leasehold Improvements, Property and Equipment | Leasehold improvements and buildings 3 - 20 years Furniture and fixtures 4 - 7 years Equipment 3 - 10 years |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule Of Leasehold Improvements, Property, And Equipment | December 31, 2020 2019 Land $ 12,943 $ 12,943 Leasehold improvements and buildings 1,921,371 1,765,464 Furniture and fixtures 198,387 182,391 Equipment 755,003 653,909 Construction in Progress 76,317 45,422 Leasehold improvements, property and equipment 2,964,021 2,660,129 Accumulated depreciation ( 1,379,710 ) ( 1,201,439 ) Leasehold improvements, property and equipment, net $ 1,584,311 $ 1,458,690 |
Schedule Of Accrued Payroll And Benefits | December 31, 2020 2019 Workers' compensation liability $ 27,630 $ 29,837 Accrued payroll 41,784 31,188 Accrued employer payroll taxes, deferred pursuant to the CARES Act 70,812 - Other accrued payroll and benefits 62,828 65,575 Accrued payroll and benefits $ 203,054 $ 126,600 |
Schedule Of Accrued Liabilities | December 31, 2020 2019 Sales and use tax payable $ 26,419 $ 26,484 Legal reserve liability 51,214 45,721 Other accrued liabilities 87,016 83,638 Accrued liabilities $ 164,649 $ 155,843 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Liability Included In Unearned Revenue | December 31, December 31, 2020 2019 Gift card liability $ 105,413 $ 84,611 |
Revenue Recognized From Liability Balances | Year ended December 31, 2020 2019 2018 Revenue recognized from gift card liability balance at the beginning of the year $ 39,612 $ 37,386 $ 36,094 |
Changes In Liability Balance | Year ended December 31, 2020 2019 2018 Chipotle Rewards liability, beginning balance $ 10,584 $ - $ - Revenue deferred 87,259 44,666 - Revenue recognized ( 75,506 ) ( 34,082 ) - Chipotle Rewards liability, ending balance $ 22,337 $ 10,584 $ - |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Summary Of Assets Measured At Fair Value On Nonrecurring Basis | Carrying Value December 31, Level 2020 2019 Leasehold improvements, property and equipment, net 3 $ 4,682 $ 1,411 Operating lease assets 3 10,372 4,270 Total $ 15,054 $ 5,681 |
Corporate Restructuring Costs (
Corporate Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Restructuring Costs [Abstract] | |
Schedule Of Restructuring Costs | Year ended December 31, 2020 2019 2018 Employee severance and other employee transition costs (1) $ 303 $ 1,768 $ 6,919 Recruitment and relocation costs (1) 874 6,231 9,952 Office asset impairment and other office closure costs (2) - 1,719 15,571 Third-party and other costs (1) 5,222 4,324 8,836 Stock-based compensation (1) - 134 1,345 Total corporate restructuring costs $ 6,399 $ 14,176 $ 42,623 __________________ (1) Recorded in general and administrative expenses on the consolidated statements of income. (2) Recorded in impairment, closure costs, and asset disposals on the consolidated statements of income. |
Reconciliation Of Restructuring Liability | December 31, 2019 Charges Payments December 31, 2020 Employee severance and other employee transition costs $ - $ 303 $ ( 303 ) $ - Recruitment and relocation costs 30 874 ( 904 ) - Third-party and other costs - 5,222 ( 5,222 ) - Total restructuring liability $ 30 $ 6,399 $ ( 6,429 ) $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Summary Of Income | Year ended December 31, 2020 2019 2018 Domestic $ 311,021 $ 465,253 $ 279,955 Foreign ( 17,240 ) ( 6,968 ) ( 11,519 ) Income before income taxes $ 293,781 $ 458,285 $ 268,436 |
Schedule Of Components Of Benefit/(Provision) For Income Taxes | Year ended December 31, 2020 2019 2018 Current tax: U.S. Federal $ 204,063 $ ( 57,020 ) $ ( 58,878 ) U.S. State ( 32,684 ) ( 20,499 ) ( 21,780 ) Foreign ( 1,044 ) ( 646 ) ( 637 ) 170,335 ( 78,165 ) ( 81,295 ) Deferred tax: U.S. Federal ( 120,066 ) ( 27,231 ) ( 10,541 ) U.S. State 11,507 ( 2,740 ) ( 479 ) Foreign 7,158 2,685 2,261 ( 101,401 ) ( 27,286 ) ( 8,759 ) Valuation allowance ( 6,949 ) ( 2,676 ) ( 1,829 ) Benefit/(provision) for income taxes $ 61,985 $ ( 108,127 ) $ ( 91,883 ) |
Schedule Of Effective Tax Rate | Year ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of related federal income tax benefit 4.2 4.1 6.6 Federal credits ( 3.5 ) ( 1.7 ) ( 2.1 ) Executive compensation disallowed 2.9 2.0 1.4 Meals and entertainment 0.1 0.1 0.1 Enhanced deduction for food donation ( 0.1 ) - ( 0.1 ) Valuation allowance 1.6 0.5 0.7 Other 1.8 0.8 3.5 Return to provision and other discrete items 2.1 0.1 1.1 Equity compensation related adjustments ( 13.5 ) ( 3.3 ) 2.0 Federal net operating loss ( 37.7 ) - - Effective income tax rate ( 21.1 ) % 23.6 % 34.2 % |
Schedule Of Deferred Income Tax Liabilities And Assets | December 31, 2020 2019 Deferred income tax liability: Leasehold improvements, property and equipment $ 298,225 $ 162,291 Goodwill and other assets 1,628 1,537 Prepaid assets and other ( 350 ) 1,290 Operating lease asset 752,864 686,333 Total deferred income tax liability 1,052,367 851,451 Deferred income tax asset: Gift card liability 3,849 6,185 Capitalized transaction costs 324 323 Stock-based compensation and other employee benefits 34,709 41,270 Foreign net operating loss carry-forwards 21,598 13,796 State credits 4,452 4,170 Operating lease liabilities 812,699 741,120 Allowances, reserves and other 25,981 22,973 State net operating loss carry-forwards 22,482 - Valuation allowance ( 23,149 ) ( 16,200 ) Total deferred income tax asset 902,945 813,637 Deferred income tax liabilities $ 149,422 $ 37,814 |
Schedule Of Unrecognized Tax Benefits | Year ended December 31, 2020 2019 2018 Beginning of year $ 15,028 $ 9,360 $ 8,937 (Decrease)/Increase resulting from prior year tax position ( 2,853 ) 5,855 - Increase resulting from current year tax position 1,870 758 751 Settlements with taxing authorities - ( 736 ) - Lapsing of statutes of limitations ( 3,186 ) ( 209 ) ( 328 ) End of year $ 10,859 $ 15,028 $ 9,360 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Stock-Based Compensation Expense | Year ended December 31, 2020 2019 2018 Stock-based compensation $ 84,463 $ 92,062 $ 69,947 Stock-based compensation, net of income taxes $ 69,904 $ 73,866 $ 51,544 Total capitalized stock-based compensation included in net leasehold improvements, property and equipment on the consolidated balance sheets $ 1,837 $ 666 $ 783 Excess tax benefit (deficit) on stock-based compensation recognized in provision for income taxes $ 49,690 $ 16,203 $ ( 6,162 ) |
SOSARS [Member] | |
Summary Of Option And SOSAR Activity Under Incentive Plan | Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, January 1, 2020 1,132 $ 457.14 $ 430,595 Granted 116 874.14 Exercised ( 470 ) 433.10 Forfeited or cancelled ( 30 ) 513.19 Outstanding, December 31, 2020 748 533.71 3.9 637,905 Exercisable, December 31, 2020 235 476.68 1.6 213,697 Vested and expected to vest, December 31, 2020 728 528.03 3.9 625,050 |
Schedule Of Assumptions For SOSAR And PSUs | 2020 2019 2018 Risk-free interest rate 1.3 % 2.4 % 2.4 % Expected life (years) 3.8 3.9 3.9 Expected dividend yield 0.0 % 0.0 % 0.0 % Volatility 32.4 % 34.7 % 32.2 % Weighted-average Black-Scholes fair value per share at date of grant $ 231.52 $ 176.79 $ 77.61 |
Restricted Stock Units (RSUs) [Member] | |
Summary Of Stock Award Activity Under Incentive Plan | Shares Weighted-Average Grant Date Fair Value per Share Outstanding, January 1, 2020 121 $ 408.56 Granted 42 905.96 Vested ( 60 ) 381.71 Forfeited or cancelled ( 11 ) 619.11 Outstanding, December 31, 2020 92 631.66 Vested and expected to vest, December 31, 2020 84 618.08 |
Performance Stock Awards (PSUs) [Member] | |
Summary Of Stock Award Activity Under Incentive Plan | Shares Weighted-Average Grant Date Fair Value per Share Outstanding, January 1, 2020 103 $ 479.83 Granted 27 853.03 Vested ( 29 ) 466.22 Expired ( 1 ) 605.39 Outstanding, December 31, 2020 100 583.46 Vested and expected to vest, December 31, 2020 229 765.23 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Separation of lease and non-lease components We elected this expedient to account for lease and non-lease components as a single component for our entire population of operating lease assets. Short-term policy We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the consolidated balance sheets. The weighted average remaining lease term and discount rate were as follows: December 31, December 31, 2020 2019 Weighted average remaining lease term (years) 13.4 13.4 Weighted average discount rate 4.92 % 5.19 % |
Schedule Of Lease Expense Components | Year ended December 31, Classification 2020 2019 Operating lease cost Occupancy, Other operating costs, General and administrative expenses and Pre-opening costs $ 333,878 $ 308,586 Short-term lease cost Other operating costs 36 3,238 Variable lease cost Occupancy 37,860 36,828 Sublease income General and administrative expenses ( 3,588 ) ( 3,385 ) Total lease cost $ 368,186 $ 345,267 |
Schedule Of Supplemental Cash Flow Related To Leases | Year ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 316,249 $ 295,113 Operating lease assets obtained in exchange for operating lease liabilities (1) $ 484,888 $ 2,702,778 Derecognition of operating lease assets due to terminations or impairment $ 20,242 $ 17,740 (1) Amounts for the year ended December 31, 2019, include the transition adjustment for the adoption of Topic 842 discussed in Note 1. “Description of Business and Summary of Significant Accounting Policies” on Annual Report on Form 10-K for the year ended December 31, 2019. |
Schedule Of Maturity Of Lease Liabilities | Maturities of lease liabilities were as follows as of December 31, 2020: Operating Leases 2021 $ 318,990 2022 344,902 2023 340,328 2024 329,819 2025 321,444 Thereafter 2,660,361 Total lease payments 4,315,844 Less: imputed interest 1,158,792 Present value of lease liabilities $ 3,157,052 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Earnings Per Share | Year ended December 31, 2020 2019 2018 Net income $ 355,766 $ 350,158 $ 176,553 Shares: Weighted-average number of common shares outstanding (for basic calculation) 27,917 27,740 27,823 Dilutive stock awards 499 555 139 Weighted-average number of common shares outstanding (for diluted calculation) 28,416 28,295 27,962 Basic earnings per share $ 12.74 $ 12.62 $ 6.35 Diluted earnings per share $ 12.52 $ 12.38 $ 6.31 |
Stock Awards Excluded From The Calculation Of Diluted EPS | Year ended December 31, 2020 2019 2018 Stock awards subject to performance conditions 87 81 95 Stock awards that were antidilutive 57 139 1,741 Total stock awards excluded from diluted earnings per share 144 220 1,836 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Summary Of Quarterly Financial Data | 2020 March 31 June 30 September 30 December 31 Total Revenue $ 1,410,772 $ 1,364,738 $ 1,601,414 $ 1,607,710 Income (loss) from operations $ 71,121 $ ( 4,939 ) $ 107,096 $ 116,886 Net income $ 76,388 $ 8,175 $ 80,244 $ 190,959 Basic earnings per share $ 2.75 $ 0.29 $ 2.87 $ 6.82 Diluted earnings per share $ 2.70 $ 0.29 $ 2.82 $ 6.69 2019 March 31 June 30 September 30 December 31 Total Revenue $ 1,308,217 $ 1,434,231 $ 1,403,697 $ 1,440,224 Income from operations $ 110,161 $ 120,020 $ 115,621 $ 98,156 Net income $ 88,132 $ 91,028 $ 98,582 $ 72,416 Basic earnings per share $ 3.18 $ 3.28 $ 3.55 $ 2.61 Diluted earnings per share $ 3.13 $ 3.22 $ 3.47 $ 2.55 |
Description Of Business And S_4
Description Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)itemregionsegment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of regions | region | 8 | |||
Number of reportable segments | segment | 1 | |||
Allowance for doubtful accounts | $ 1,588,000 | $ 7,000 | ||
Acquisition, development and construction of restaurant capitalized costs | $ 9,268,000 | 6,735,000 | $ 6,285,000 | |
Option to extend, additional periods | 5 years | |||
Renewal period | 20 years | |||
Long-term debt | $ 0 | |||
Goodwill impairment charges | $ 0 | |||
Earned points expiration period for inactivity | 6 months | |||
Advertising and marketing costs | $ 158,570,000 | 141,567,000 | $ 111,695,000 | |
Compensation expense related to employees eligible to retire and retain full rights to the awards, recognition period | 12 months | |||
Decrease to deferred income tax liability | $ 149,422,000 | 37,814,000 | ||
Decrease to retained earnings | $ 3,276,163,000 | $ 2,921,448,000 | ||
Minimum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Remaining lease term | 1 year | |||
Tax benefit percentage for realization with a taxing authority | 50.00% | |||
Earned rewards expiration period | 1 month | |||
Maximum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Remaining lease term | 20 years | |||
Earned rewards expiration period | 2 months | |||
Chipotle [Member] | United States [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of restaurants | item | 2,724 | |||
Chipotle [Member] | International [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of restaurants | item | 40 | |||
Pizzeria Locale [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of restaurants | item | 4 | |||
SOSARS [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Expiration period of SOSARs | 7 years | |||
Performance Shares [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Vesting Period 1 [Member] | SOSARS [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Vesting period | 2 years | |||
Vesting Period 2 [Member] | SOSARS [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Increase to allowance for credit losses | $ 1,414,000 | |||
Decrease to deferred income tax liability | 363,000 | |||
Decrease to retained earnings | $ 1,051,000 |
Description Of Business And S_5
Description Of Business And Summary Of Significant Accounting Policies (Estimated Useful Lives Of Leasehold Improvements, Property And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements and Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements and Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Leasehold Improvements, Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | $ 2,964,021 | $ 2,660,129 |
Accumulated depreciation | (1,379,710) | (1,201,439) |
Leasehold improvements, property and equipment, net | 1,584,311 | 1,458,690 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | 12,943 | 12,943 |
Leasehold Improvements and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | 1,921,371 | 1,765,464 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | 198,387 | 182,391 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | 755,003 | 653,909 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements, property and equipment | $ 76,317 | $ 45,422 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Schedule Of Accrued Payroll And Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet Information [Abstract] | ||
Workers' compensation liability | $ 27,630 | $ 29,837 |
Accrued payroll | 41,784 | 31,188 |
Accrued employer payroll taxes, deferred pursuant to the CARES Act | 70,812 | 0 |
Other accrued payroll and benefits | 62,828 | 65,575 |
Accrued payroll and benefits | $ 203,054 | $ 126,600 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet Information [Abstract] | ||
Sales and Use tax payable | $ 26,419 | $ 26,484 |
Legal reserve liability | 51,214 | 45,721 |
Other accrued liabilities | 87,016 | 83,638 |
Accrued liabilities | $ 164,649 | $ 155,843 |
Revenue Recognition (Liability
Revenue Recognition (Liability Included In Unearned Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Gift Card [Member] | ||
Gift card liability | $ 105,413 | $ 84,611 |
Revenue Recognition (Revenue Re
Revenue Recognition (Revenue Recognized From Liability Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gift Card [Member] | |||
Revenue recognized from gift card liability balance at the beginning of the year | $ 39,612 | $ 37,386 | $ 36,094 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Liability Balance) (Details) - Chipotle Rewards [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Chipotle Rewards liability, beginning balance | $ 10,584 | $ 0 | $ 0 |
Revenue deferred | 87,259 | 44,666 | 0 |
Revenue recognized | (75,506) | (34,082) | 0 |
Chipotle Rewards liability, ending balance | $ 22,337 | $ 10,584 | $ 0 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 06, 2020 | Apr. 16, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments fair value, amount less than amortized cost | $ 117,000 | ||||
Investments, impairment charge | 0 | $ 0 | |||
Asset impairments | $ 16,683,000 | $ 2,897,000 | $ 56,093,000 | ||
US Treasury Securities [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment maturity term | 16 months | ||||
Investments maturing within one year | $ 343,616,000 | ||||
Supplier [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Additional investment acquired, percentage | 3.20% | ||||
Ownership percentage | 12.90% | 10.00% | |||
Cash consideration | $ 10,000,000 | $ 2,500,000 | $ 7,500,000 | ||
Carrying value | $ 9,529,000 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Summary Of Assets Measured At Fair Value On Nonrecurring Basis) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Impairment, Assets held for sale | $ 0 | $ 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurement, Total | 15,054,000 | 5,681,000 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurement, Leasehold improvements, property and equipment, net | 4,682,000 | 1,411,000 |
Fair Value Measurements, Operating leases assets | $ 10,372,000 | $ 4,270,000 |
Corporate Restructuring Costs_2
Corporate Restructuring Costs (Narrative) (Details) $ in Thousands | Jan. 01, 2019USD ($) |
Accounting Standards Update 2016-02 [Member] | Office Lease/Corporate Restructuring Costs Into Operating Lease Assets [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Reclassification | $ 14,716 |
Corporate Restructuring Costs_3
Corporate Restructuring Costs (Schedule Of Restructuring Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | $ 6,399 | $ 14,176 | $ 42,623 | |
Employee Severance And Other Employee Transition Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | [1] | 303 | 1,768 | 6,919 |
Recruitment And Relocation Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | [1] | 874 | 6,231 | 9,952 |
Office Asset Impairment And Other Office Closure Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | [2] | 0 | 1,719 | 15,571 |
Third-party And Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | [1] | 5,222 | 4,324 | 8,836 |
Stock-based Compensation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total corporate restructuring costs | [1] | $ 0 | $ 134 | $ 1,345 |
[1] | Recorded in general and administrative expenses on the consolidated statements of income. | |||
[2] | Recorded in impairment, closure costs, and asset disposals on the consolidated statements of income. |
Corporate Restructuring Costs_4
Corporate Restructuring Costs (Reconciliation Of Restructuring Liability) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, beginning balance | $ 30 |
Charges | 6,399 |
Payments | (6,429) |
Restructuring Reserve, ending balance | 0 |
Employee Severance And Other Employee Transition Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, beginning balance | 0 |
Charges | 303 |
Payments | (303) |
Restructuring Reserve, ending balance | 0 |
Recruitment And Relocation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, beginning balance | 30 |
Charges | 874 |
Payments | (904) |
Restructuring Reserve, ending balance | 0 |
Third-party And Other Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, beginning balance | 0 |
Charges | 5,222 |
Payments | (5,222) |
Restructuring Reserve, ending balance | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense related to uncertain tax positions | $ 554 | $ 1,853 | $ 536 | |
Interest on income taxes accrued | 2,185 | 3,054 | ||
Lapsing of statutes of limitations | $ 3,186 | $ 209 | $ 328 | |
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Income tax expense/(benefit) from tax rate change | $ 110,765 | |||
Deferment of employer-paid social security taxes | 70,812 | |||
CARES Act to QIP, acceleration of depreciation expenses | $ 60,376 | |||
Impact to tax rate | 0.00% | |||
CARES Act, employee retention credits | $ 3,403 | |||
TCJA cumulative tax adjustments | $ 6,446 | |||
Canada [Member] | ||||
CARES Act, employee retention credits | 2,028 | |||
Foreign Tax Authority [Member] | ||||
Gross NOLS | 98,710 | $ 68,169 | ||
Valuation allowances of deferred tax assets | 104,820 | 77,191 | ||
State and Local Jurisdiction [Member] | ||||
Gross NOLS | 340,259 | $ 0 | ||
Domestic Tax Authority [Member] | ||||
Lapsing of statutes of limitations | $ 6,316 |
Income Taxes (Summary Of Income
Income Taxes (Summary Of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Domestic | $ 311,021 | $ 465,253 | $ 279,955 |
Foreign | (17,240) | (6,968) | (11,519) |
Income before income taxes | $ 293,781 | $ 458,285 | $ 268,436 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Benefit/(Provision) For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Current tax, U.S. Federal | $ 204,063 | $ (57,020) | $ (58,878) |
Current tax, U.S. State | (32,684) | (20,499) | (21,780) |
Current tax, Foreign | (1,044) | (646) | (637) |
Current tax, Total | 170,335 | (78,165) | (81,295) |
Deferred tax, U.S. Federal | (120,066) | (27,231) | (10,541) |
Deferred tax, U.S. State | 11,507 | (2,740) | (479) |
Deferred tax, Foreign | 7,158 | 2,685 | 2,261 |
Deferred tax, Total | (101,401) | (27,286) | (8,759) |
Valuation allowance | (6,949) | (2,676) | (1,829) |
Benefit/(provision) for income taxes | $ 61,985 | $ (108,127) | $ (91,883) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Tax Rate) (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
State income tax, net of related federal income tax benefit | 4.20% | 4.10% | 6.60% | |
Federal credits | (3.50%) | (1.70%) | (2.10%) | |
Executive compensation disallowed | 2.90% | 2.00% | 1.40% | |
Meals and entertainment | 0.10% | 0.10% | 0.10% | |
Enhanced deduction for food donation | (0.10%) | 0.00% | (0.10%) | |
Valuation allowance | 1.60% | 0.50% | 0.70% | |
Other | 1.80% | 0.80% | 3.50% | |
Return to provision and other discrete items | 2.10% | 0.10% | 1.10% | |
Equity compensation related adjustments | (13.50%) | (3.30%) | 2.00% | |
Federal net operating loss | (37.70%) | |||
Effective income tax rate | (21.10%) | 23.60% | 34.20% |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Income Tax Liabilities And Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Leasehold improvements, property and equipment | $ 298,225 | $ 162,291 |
Goodwill and other assets | 1,628 | 1,537 |
Prepaid assets and other | (350) | 1,290 |
Operating lease asset | 752,864 | 686,333 |
Total deferred income tax liability | 1,052,367 | 851,451 |
Gift card liability | 3,849 | 6,185 |
Capitalized transaction costs | 324 | 323 |
Stock-based compensation and other employee benefits | 34,709 | 41,270 |
Foreign net operating loss carry-forwards | 21,598 | 13,796 |
State credits | 4,452 | 4,170 |
Operating lease liabilities | 812,699 | 741,120 |
Allowances, reserves and other | 25,981 | 22,973 |
State net operating loss carry-forwards | 22,482 | |
Valuation allowance | (23,149) | (16,200) |
Total deferred income tax asset | 902,945 | 813,637 |
Deferred income tax liabilities | $ 149,422 | $ 37,814 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Beginning of year | $ 15,028 | $ 9,360 | $ 8,937 |
(Decrease) resulting from prior year tax position | (2,853) | ||
Increase resulting from prior year tax position | 5,855 | 0 | |
Increase resulting from current year tax position | 1,870 | 758 | 751 |
Settlements with taxing authorities | 0 | (736) | 0 |
Lapsing of statutes of limitations | (3,186) | (209) | (328) |
End of year | $ 10,859 | $ 15,028 | $ 9,360 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 156 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 115,018 | $ 115,018 | ||
Common stock surrendered as payment | 102,956 | $ 198,563 | $ 166,147 | $ 2,800,000 |
Repurchases in Accordance with Stock Award Agreements [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock surrendered as payment | $ 48,555 | $ 10,420 | $ 5,411 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)employeeshares | Dec. 31, 2019USD ($)$ / sharesitemshares | Dec. 31, 2018USD ($)$ / shares | Dec. 30, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock authorized and reserved for issuances | shares | 6,830 | |||
Shares authorized but not issued | shares | 2,114 | |||
SOSARs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unearned compensation | $ 22,612 | |||
Weighted average period | 1 year 4 months 24 days | |||
Total intrinsic value of options and SOSARs exercised | $ 236,573 | $ 219,984 | $ 35,907 | |
Expiration period of SOSARs | 7 years | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ / shares | $ 627.94 | $ 299.25 | ||
Unearned compensation | $ 21,221 | |||
Weighted average period | 1 year 3 months 18 days | |||
Shares vested, fair value | $ 47,649 | $ 27,197 | $ 4,192 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ / shares | $ 583.13 | $ 327.58 | ||
Unearned compensation | $ 112,767 | |||
Weighted average period | 1 year 3 months 18 days | |||
Shares vested, fair value | $ 60,081 | $ 0 | $ 9,317 | |
Vesting period | 3 years | |||
Number of types of PSU awards | item | 2 | |||
Performance Shares [Member] | 2018 Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance and market measurement period | 3 years | |||
Number of employees affected by modified service requirements | employee | 7 | |||
Modified service requirements expense | $ 71,441 | |||
Stock-based compensation expense | $ 466 | |||
Stock price | $ / shares | $ 1,374.17 | |||
Performance Shares Grant 1 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares granted | shares | 33 | |||
Vesting period | 3 years | |||
Performance Shares Grant 2 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares granted | shares | 13 | |||
Performance Shares Grant 2 [Member] | First Half Vested [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Vesting percentage | 40.00% | |||
Performance Shares Grant 2 [Member] | Second Half Vested [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Vesting percentage | 60.00% | |||
Minimum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | 0.00% | ||
Minimum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | 2018 Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | |||
Maximum [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target number of shares to be earned if certain criteria is met | 100.00% | |||
Maximum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 300.00% | 300.00% | ||
Maximum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | 2018 Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 300.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | |||
Stock-based compensation | $ 84,463 | $ 92,062 | $ 69,947 |
Stock-based compensation, net of income taxes | 69,904 | 73,866 | 51,544 |
Total capitalized stock-based compensation included in net leasehold improvements, property and equipment on the consolidated balance sheets | 1,837 | 666 | 783 |
Excess tax benefit (deficit) on stock-based compensation recognized in provision for income taxes | $ 49,690 | $ 16,203 | $ (6,162) |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Option And SOSAR Activity Under Incentive Plan) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | ||
Outstanding, beginning of year, Shares | 1,132 | |
Outstanding, beginning of year, Weighted-Average Exercise Price | $ 457.14 | |
Granted, Shares | 116 | |
Granted, weighted-average exercise price | $ 874.14 | |
Exercised, Shares | (470) | |
Exercised, Weighted-Average Exercise Price | $ 433.10 | |
Forfeited or cancelled, Shares | (30) | |
Forfeited or cancelled, Weighted-Average Exercise Price | $ 513.19 | |
Outstanding, end of year, Shares | 748 | |
Outstanding, end of year, Weighted-Average Exercise Price | $ 533.71 | |
Outstanding, Weighted-Average Remaining Years of Contractual Life | 3 years 10 months 24 days | |
Outstanding, Aggregate Intrinsic Value | $ 637,905 | $ 430,595 |
Exercisable, Shares | 235 | |
Exercisable, Weighted-Average Exercise Price | $ 476.68 | |
Exercisable, Weighted-Average Remaining Years of Contractual Life | 1 year 7 months 6 days | |
Exercisable, Aggregate Intrinsic Value | $ 213,697 | |
Vested and expected to vest, shares | 728 | |
Vested and expected to vest, Weighted-Average Exercise Price | $ 528.03 | |
Vested and expected to vest, Weighted-Average Remaining Years of Contractual Life | 3 years 10 months 24 days | |
Vested and expected to vest, Aggregate Intrinsic Value | $ 625,050 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Assumptions For SOSAR And PSUs) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Risk-free interest rate | 1.30% | 2.40% | 2.40% |
Expected life | 3 years 9 months 18 days | 3 years 10 months 24 days | 3 years 10 months 24 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 32.40% | 34.70% | 32.20% |
SOSARS [Member] | |||
Weighted-average grant date fair value | $ 231.52 | $ 176.79 | $ 77.61 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Stock Award Activity Under Incentive Plan) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted Stock Units - 2011 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year, Shares | shares | 121 |
Outstanding, beginning of year, Grant Date Fair Value | $ / shares | $ 408.56 |
Granted, Shares | shares | 42 |
Granted, Grant Date Fair Value | $ / shares | $ 905.96 |
Vested, Shares | shares | (60) |
Vested, Grant Date Fair Value | $ / shares | $ 381.71 |
Forfeited, Shares | shares | (11) |
Forfeited, Grant Date Fair Value | $ / shares | $ 619.11 |
Outstanding, end of year, Shares | shares | 92 |
Outstanding, end of year, Grant Date Fair Value | $ / shares | $ 631.66 |
Vested and expected to vest, end of year, Shares | shares | 84 |
Vested and expected to vest, end of year, Grant Date Fair Value | $ / shares | $ 618.08 |
Performance Shares - 2011 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year, Shares | shares | 103 |
Outstanding, beginning of year, Grant Date Fair Value | $ / shares | $ 479.83 |
Granted, Shares | shares | 27 |
Granted, Grant Date Fair Value | $ / shares | $ 853.03 |
Vested, Shares | shares | (29) |
Vested, Grant Date Fair Value | $ / shares | $ 466.22 |
Expired, Shares | shares | (1) |
Expired, Grant Date Fair Value | $ / shares | $ 605.39 |
Outstanding, end of year, Shares | shares | 100 |
Outstanding, end of year, Grant Date Fair Value | $ / shares | $ 583.46 |
Vested and expected to vest, end of year, Shares | shares | 229 |
Vested and expected to vest, end of year, Grant Date Fair Value | $ / shares | $ 765.23 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Employer matching contribution, percentage on first 3% | 100.00% | ||
Employer matching contribution, percentage on next 2% | 50.00% | ||
Percentage of employees' gross pay for which the employer contributes a matching contribution of 100% under the Deferred Plan | 3.00% | ||
Percentage of employees' gross pay for which the employer contributes a matching contribution of 50% under the Deferred Plan | 2.00% | ||
Total liabilities under Deferred Plan | $ 15,296 | $ 12,811 | |
Fair value of investments in rabbi trust | $ 15,296 | $ 12,811 | |
Employee Stock Purchase Plan (ESPP) [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Period of service before an employee is eligible for contribution | 1 year | ||
ESPP employee contribution, percentage | 15.00% | ||
Purchase price percentage of fair market value of stock on last trading date of monthly exercise period | 95.00% | ||
Common stock authorized and reserved for ESPP | 250 | ||
Common stock authorized for issuance but not yet issued for ESPP | 245 | ||
Shares issued under ESPP | 1 | 1 | 1 |
401(k) Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Employer matching contribution, percentage on first 3% | 100.00% | ||
Employer matching contribution, percentage on next 2% | 50.00% | ||
Percentage of employees' gross pay for which the employer contributes a matching contribution of 100% | 3.00% | ||
Percentage of employees' gross pay for which the employer contributes a matching contribution of 50% | 2.00% | ||
Period of service before an employee is eligible for contribution | 1 year | ||
Company matching contributions | $ 8,490 | $ 6,968 | $ 6,090 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
Leases [Abstract] | |||
Rental expense | $ 297,568 | ||
Operating lease payments related to options to extend lease terms | $ 2,117,481 | ||
Operating minimum lease payments | 184,358 | ||
Future sublease income | $ 14,735 | ||
Number of sale leaseback transactions | item | 6 | ||
Total deemed landlord financing | $ 1,845 | $ 2,131 |
Leases (Schedule Of Supplementa
Leases (Schedule Of Supplemental Balance Sheet Information Related To Leases) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 13 years 4 months 24 days | 13 years 4 months 24 days |
Weighted average discount rate | 4.92% | 5.19% |
Leases (Schedule Of Lease Expen
Leases (Schedule Of Lease Expense Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total lease cost | $ 368,186 | $ 345,267 |
Occupancy, Other Operating Costs, General and Administrative Expenses And Pre-Opening Costs [Member] | ||
Operating lease cost | 333,878 | 308,586 |
Other Operating Costs [Member] | ||
Short-term lease cost | 36 | 3,238 |
Occupancy [Member] | ||
Variable lease cost | 37,860 | 36,828 |
General and Administrative Expenses [Member] | ||
Sublease income | $ (3,588) | $ (3,385) |
Leases (Schedule Of Supplemen_2
Leases (Schedule Of Supplemental Cash Flow Related To Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 316,249 | $ 295,113 | |
Operating lease assets obtained in exchange for operating lease liabilities | [1] | 484,888 | 2,702,778 |
Derecognition of operating lease assets due to terminations or impairment | $ 20,242 | $ 17,740 | |
[1] | Amounts for the year ended December 31, 2019, include the transition adjustment for the adoption of Topic 842 discussed in Note 1. “Description of Business and Summary of Significant Accounting Policies” on Annual Report on Form 10-K for the year ended December 31, 2019. |
Leases (Schedule Of Maturity Of
Leases (Schedule Of Maturity Of Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 318,990 |
2022 | 344,902 |
2023 | 340,328 |
2024 | 329,819 |
2024 | 321,444 |
Thereafter | 2,660,361 |
Total lease payments | 4,315,844 |
Less: imputed interest | 1,158,792 |
Present value of lease liabilities | $ 3,157,052 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 190,959 | $ 80,244 | $ 8,175 | $ 76,388 | $ 72,416 | $ 98,582 | $ 91,028 | $ 88,132 | $ 355,766 | $ 350,158 | $ 176,553 |
Weighted-average number of common shares outstanding (for basic calculation) | 27,917 | 27,740 | 27,823 | ||||||||
Dilutive stock awards | 499 | 555 | 139 | ||||||||
Weighted-average number of common shares outstanding (for diluted calculation) | 28,416 | 28,295 | 27,962 | ||||||||
Basic earnings per share | $ 6.82 | $ 2.87 | $ 0.29 | $ 2.75 | $ 2.61 | $ 3.55 | $ 3.28 | $ 3.18 | $ 12.74 | $ 12.62 | $ 6.35 |
Diluted earnings per share | $ 6.69 | $ 2.82 | $ 0.29 | $ 2.70 | $ 2.55 | $ 3.47 | $ 3.22 | $ 3.13 | $ 12.52 | $ 12.38 | $ 6.31 |
Earnings Per Share (Stock Award
Earnings Per Share (Stock Awards Excluded From The Calculation Of Diluted EPS) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Stock awards subject to performance conditions | 87 | 81 | 95 |
Stock awards that were antidilutive | 57 | 139 | 1,741 |
Total stock awards excluded from diluted earnings per share | 144 | 220 | 1,836 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2020 |
Commitments And Contingencies [Abstract] | |||
Litigation settlement amount | $ 25,000 | ||
Settlement amount paid | $ 10,000 | $ 15,000 | |
Loss contingency accrual | $ 53,242 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Revolving Credit Facility [Member] - JPMorgan Chase Bank [Member] | 12 Months Ended | |
Dec. 31, 2020USD ($) | May 08, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 600,000,000 | |
Credit facility, expiration date | May 7, 2021 | |
Credit facility, commitment fee percentage | 0.625% | |
Total leverage ratio | 3 | |
Fixed charge coverage ratio | 1.5 | |
Credit facility, amount outstanding | $ 0 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.50% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Supplier [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Apr. 16, 2020 | |
Related Party Transaction [Line Items] | ||
Ownership percentage | 12.90% | 10.00% |
Purchases from related party | $ 11,931 |
Quarterly Financial Data (Summa
Quarterly Financial Data (Summary Of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total Revenue | $ 1,607,710 | $ 1,601,414 | $ 1,364,738 | $ 1,410,772 | $ 1,440,224 | $ 1,403,697 | $ 1,434,231 | $ 1,308,217 | $ 5,984,634 | $ 5,586,369 | $ 4,864,985 |
Income (loss) from operations | 116,886 | 107,096 | (4,939) | 71,121 | 98,156 | 115,621 | 120,020 | 110,161 | 290,164 | 443,958 | 258,368 |
Net income | $ 190,959 | $ 80,244 | $ 8,175 | $ 76,388 | $ 72,416 | $ 98,582 | $ 91,028 | $ 88,132 | $ 355,766 | $ 350,158 | $ 176,553 |
Basic earnings per share | $ 6.82 | $ 2.87 | $ 0.29 | $ 2.75 | $ 2.61 | $ 3.55 | $ 3.28 | $ 3.18 | $ 12.74 | $ 12.62 | $ 6.35 |
Diluted earnings per share | $ 6.69 | $ 2.82 | $ 0.29 | $ 2.70 | $ 2.55 | $ 3.47 | $ 3.22 | $ 3.13 | $ 12.52 | $ 12.38 | $ 6.31 |