Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Feb. 22, 2022 | Jun. 20, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Amendment Flag | false | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Period End Date | Jan. 2, 2022 | ||
Entity Central Index Key | 0001286681 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Domino’s Pizza, Inc. | ||
Entity File Number | 001-32242 | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Tax Identification Number | 38-2511577 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Address, Address Line One | 30 Frank Lloyd Wright Drive | ||
Entity Address, City or Town | Ann Arbor | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48105 | ||
City Area Code | 734 | ||
Local Phone Number | 930-3030 | ||
Trading Symbol | DPZ | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock | ||
Entity Common Stock, Shares Outstanding | 36,036,184 | ||
Entity Public Float | $ 16,864,015,144 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive proxy statement to be furnished to shareholders of Domino’s Pizza, Inc. in connection with the annual meeting of shareholders to be held on April 26, 2022 are incorporated by reference into Part III. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Detroit, Michigan |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 148,160 | $ 168,821 |
Restricted cash and cash equivalents | 180,579 | 217,453 |
Accounts receivable, net of reserves of $1,869 in 2021 and $1,793 in 2020 | 255,327 | 244,560 |
Inventories | 68,328 | 66,683 |
Prepaid expenses and other | 27,242 | 24,169 |
Advertising fund assets, restricted | 180,904 | 147,698 |
Total current assets | 860,540 | 869,384 |
Property, plant and equipment: | ||
Land and buildings | 108,372 | 88,063 |
Leasehold and other improvements | 193,572 | 186,456 |
Equipment | 312,772 | 292,456 |
Construction in progress | 27,815 | 13,014 |
Property, plant and equipment, Gross | 642,531 | 579,989 |
Accumulated depreciation and amortization | (318,466) | (282,625) |
Property, plant and equipment, net | 324,065 | 297,364 |
Other assets: | ||
Operating lease right-of-use assets | 210,702 | 228,268 |
Investments in marketable securities, restricted | 15,433 | 13,251 |
Goodwill | 15,034 | 15,061 |
Capitalized software, net of accumulated amortization of $142,509 in 2021 and $124,043 in 2020 | 95,558 | 81,306 |
Investments | 125,840 | 40,000 |
Other assets | 22,535 | 20,630 |
Deferred income taxes | 2,109 | 1,904 |
Total other assets | 487,211 | 400,420 |
Total assets | 1,671,816 | 1,567,168 |
Current liabilities: | ||
Current portion of long-term debt | 55,588 | 2,855 |
Accounts payable | 91,547 | 94,499 |
Accrued compensation | 59,567 | 58,520 |
Accrued interest | 37,982 | 31,695 |
Operating lease liabilities | 37,155 | 35,861 |
Insurance reserves | 32,588 | 26,377 |
Advertising fund liabilities | 173,737 | 141,175 |
Other accrued liabilities | 102,577 | 79,837 |
Total current liabilities | 590,741 | 470,819 |
Long-term liabilities: | ||
Long-term debt, less current portion | 5,014,638 | 4,116,018 |
Operating lease liabilities | 184,471 | 202,268 |
Insurance reserves | 36,913 | 37,125 |
Deferred income taxes | 3,922 | 6,099 |
Other accrued liabilities | 50,667 | 35,244 |
Total long-term liabilities | 5,290,611 | 4,396,754 |
Total liabilities | 5,881,352 | 4,867,573 |
Commitments and contingencies (Note 6) | ||
Stockholders' deficit | ||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 36,138,273 in 2021 and 38,868,350 in 2020 issued and outstanding | 361 | 389 |
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | 0 | 0 |
Additional paid-in capital | 840 | 5,122 |
Retained deficit | (4,207,917) | (3,303,492) |
Accumulated other comprehensive loss | (2,820) | (2,424) |
Total stockholders' deficit | (4,209,536) | (3,300,405) |
Total liabilities and stockholders' deficit | $ 1,671,816 | $ 1,567,168 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 1,869 | $ 1,793 |
Capitalized software, net of accumulated amortization | $ 142,509 | $ 124,043 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 36,138,273 | 38,868,350 |
Common stock, shares outstanding | 36,138,273 | 38,868,350 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Revenues: | |||
Total revenues | $ 4,357,373 | $ 4,117,411 | $ 3,618,774 |
Cost of sales: | |||
Cost of sales | 2,669,131 | 2,522,918 | 2,216,275 |
Operating margin | 1,688,242 | 1,594,493 | 1,402,499 |
General and administrative | 428,333 | 406,613 | 382,293 |
U.S. franchise advertising | 479,501 | 462,238 | 390,799 |
Income from operations | 780,408 | 725,642 | 629,407 |
Other Income | 36,758 | 0 | 0 |
Interest income | 345 | 1,654 | 4,048 |
Interest expense | (191,806) | (172,166) | (150,818) |
Income before provision for income taxes | 625,705 | 555,130 | 482,637 |
Provision for income taxes | 115,238 | 63,834 | 81,928 |
NET INCOME | $ 510,467 | $ 491,296 | $ 400,709 |
Earnings per share: | |||
Common Stock - basic | $ 13.72 | $ 12.61 | $ 9.83 |
Common Stock - diluted | $ 13.54 | $ 12.39 | $ 9.56 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | |||
Revenues: | |||
Total revenues | $ 478,976 | $ 485,569 | $ 453,560 |
Cost of sales: | |||
Cost of sales | 374,104 | 379,598 | 346,168 |
U.S. franchise advertising | 42,100 | 35,700 | 37,600 |
U.S. Stores [Member] | U.S. franchise royalties and fees [Member] | |||
Revenues: | |||
Total revenues | 539,883 | 503,196 | 428,504 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | |||
Revenues: | |||
Total revenues | 479,501 | 462,238 | 390,799 |
Supply Chain [Member] | Supply Chain Center [Member] | |||
Revenues: | |||
Total revenues | 2,560,977 | 2,416,651 | 2,104,936 |
Cost of sales: | |||
Cost of sales | 2,295,027 | 2,143,320 | 1,870,107 |
International Franchise [Member] | International franchise royalties and fees [Member] | |||
Revenues: | |||
Total revenues | $ 298,036 | $ 249,757 | $ 240,975 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 510,467 | $ 491,296 | $ 400,709 |
Currency translation adjustment | (396) | 1,318 | 687 |
Comprehensive income | $ 510,071 | $ 492,614 | $ 401,396 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Retained Deficit [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 30, 2018 | $ 410 | $ 569 | $ (3,036,471) | $ (4,429) | ||
Balance (in shares) at Dec. 30, 2018 | 40,977,561 | |||||
Net income | $ 400,709 | 400,709 | ||||
Dividends declared on common stock and equivalents | (105,605) | |||||
Issuance and cancellation of stock awards, net (in shares) | 46,913 | |||||
Tax payments for restricted stock upon vesting | (5,951) | |||||
Tax payments for restricted stock upon vesting, (in shares) | (22,506) | |||||
Purchases of common stock | $ (25) | (27,700) | (671,282) | |||
Purchases of common stock, (in shares) | (2,493,560) | |||||
Exercises of stock options | $ 4 | 13,060 | ||||
Exercises of stock options, (in shares) | 425,601 | 425,601 | ||||
Non-cash equity-based compensation expense | 20,265 | |||||
Currency translation adjustment | 687 | |||||
Balance at Dec. 29, 2019 | $ 389 | 243 | (3,412,649) | (3,742) | ||
Balance (in shares) at Dec. 29, 2019 | 38,934,009 | |||||
Net income | $ 491,296 | 491,296 | ||||
Dividends declared on common stock and equivalents | (122,183) | |||||
Issuance and cancellation of stock awards, net (in shares) | 35,210 | |||||
Tax payments for restricted stock upon vesting | $ 0 | (6,803) | ||||
Tax payments for restricted stock upon vesting, (in shares) | (18,681) | |||||
Purchases of common stock | $ (8) | (43,524) | (261,058) | |||
Purchases of common stock, (in shares) | (838,871) | |||||
Exercises of stock options | $ 8 | 30,962 | ||||
Exercises of stock options, (in shares) | 756,683 | 756,683 | ||||
Non-cash equity-based compensation expense | 24,244 | |||||
Currency translation adjustment | 1,318 | |||||
Balance at Jan. 03, 2021 | $ (3,300,405) | $ 389 | 5,122 | (3,303,492) | (2,424) | |
Balance (Credit Losses Standard [Member]) at Jan. 03, 2021 | $ 1,102 | |||||
Balance (in shares) at Jan. 03, 2021 | 38,868,350 | 38,868,350 | ||||
Net income | $ 510,467 | 510,467 | ||||
Dividends declared on common stock and equivalents | (139,588) | |||||
Issuance and cancellation of stock awards, net (in shares) | (1,994) | |||||
Tax payments for restricted stock upon vesting | (6,820) | |||||
Tax payments for restricted stock upon vesting, (in shares) | (14,826) | |||||
Purchases of common stock | $ (30) | (45,568) | (1,275,304) | |||
Purchases of common stock, (in shares) | (2,912,558) | |||||
Exercises of stock options | $ 2 | 19,680 | ||||
Exercises of stock options, (in shares) | 199,301 | 199,301 | ||||
Non-cash equity-based compensation expense | 28,670 | |||||
Other | (244) | |||||
Currency translation adjustment | (396) | |||||
Balance at Jan. 02, 2022 | $ (4,209,536) | $ 361 | $ 840 | $ (4,207,917) | $ (2,820) | |
Balance (in shares) at Jan. 02, 2022 | 36,138,273 | 36,138,273 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 3.76 | $ 3.12 | $ 2.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 510,467 | $ 491,296 | $ 400,709 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 72,923 | 65,038 | 59,930 |
Loss on sale/disposal of assets | 1,189 | 2,922 | 2,023 |
Amortization of debt issuance costs | 7,509 | 5,526 | 4,748 |
Provision (Benefit) for deferred income taxes | 1,988 | 14,424 | (3,297) |
Non-cash equity-based compensation expense | 28,670 | 24,244 | 20,265 |
Excess tax benefits from equity-based compensation | (18,911) | (60,364) | (25,735) |
Provision for losses on accounts and notes receivable | 659 | 2,134 | 1,195 |
Unrealized gain on investments | (36,758) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Changes in accounts receivable | (8,107) | (33,334) | (20,900) |
Changes in inventories, prepaid expenses and other | (9,420) | (24,959) | (6,741) |
Changes in accounts payable and accrued liabilities | 51,346 | 68,954 | 66,137 |
Changes in insurance reserves | 6,216 | 5,544 | 5,322 |
Changes in operating lease assets and liabilities | 1,210 | 2,592 | 3,302 |
Changes in advertising fund assets and liabilities, restricted | 45,225 | 28,777 | (10,008) |
Net cash provided by operating activities | 654,206 | 592,794 | 496,950 |
Cash flows from investing activities: | |||
Capital expenditures | (94,172) | (88,768) | (85,565) |
Purchase of investments | (49,082) | (40,000) | 0 |
Proceeds from sale of assets | 16 | 174 | 12,258 |
Maturities of advertising fund investments, restricted | 0 | 0 | 50,152 |
Purchases of franchise operations and other assets | 0 | 0 | (3,423) |
Other | 515 | (333) | (1,276) |
Net cash used in investing activities | (142,723) | (128,927) | (27,854) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,850,000 | 158,000 | 675,000 |
Repayments of long-term debt and finance lease obligations | (910,212) | (202,058) | (92,085) |
Proceeds from exercise of stock options | 19,682 | 30,970 | 13,064 |
Purchases of common stock | (1,320,902) | (304,590) | (699,007) |
Tax payments for restricted stock upon vesting | (6,820) | (6,803) | (5,951) |
Payments of common stock dividends and equivalents | (139,399) | (121,925) | (105,715) |
Cash paid for financing costs | (14,938) | 0 | (8,098) |
Other | (244) | 0 | 0 |
Net cash used in financing activities | (522,833) | (446,406) | (222,792) |
Effect of exchange rate changes on cash | (316) | 761 | 201 |
Change in cash and cash equivalents, restricted cash and cash equivalents | (11,666) | 18,222 | 246,505 |
Cash and cash equivalents, beginning of period | 168,821 | 190,615 | 25,438 |
Restricted cash and cash equivalents, beginning of period | 217,453 | 209,269 | 166,993 |
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 115,872 | 84,040 | 44,988 |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 502,146 | 483,924 | 237,419 |
Cash and cash equivalents, end of period | 148,160 | 168,821 | 190,615 |
Restricted cash and cash equivalents, end of period | 180,579 | 217,453 | 209,269 |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 161,741 | 115,872 | 84,040 |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 490,480 | $ 502,146 | $ 483,924 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Domino’s Pizza, Inc. and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Amounts in thousands, except percentages, share and per share amounts) (1) Description of Business and Summary of Significant Accounting Policies Description of Business Domino’s Pizza, Inc. (“DPI”), a Delaware corporation, conducts its operations and derives substantially all of its operating income and cash flows through its wholly-owned subsidiary, Domino’s, Inc. (“Domino’s”) and Domino’s wholly-owned subsidiary, Domino’s Pizza LLC (“DPLLC”). DPI and its wholly-owned subsidiaries (collectively, “the Company”) are primarily engaged in the following business activities: (i) retail sales of food through Company-owned Domino’s Pizza stores; (ii) sales of food, equipment and supplies to Company-owned and franchised Domino’s Pizza stores through Company-owned supply chain centers; (iii) receipt of royalties, advertising contributions and fees from U.S. Domino’s Pizza franchisees; and (iv) receipt of royalties and fees from international Domino’s Pizza franchisees. Principles of Consolidation The accompanying consolidated financial statements include the accounts of DPI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Fiscal Year The Company ’ s fiscal year ends on the Sunday closest to December 31. The 2021 fiscal year ended on January 2, 2022, the 2020 fiscal year ended on January 3, 2021 and the 2019 fiscal year ended on December 29, 2019. The 2021 and 2019 fiscal years each consisted of fifty-two weeks and the 2020 fiscal year consisted of fifty-three weeks . Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. These investments are carried at cost, which approximates fair value. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents at January 2, 2022 included $ 133.2 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of the Company’s asset-backed securitization structure, $ 47.2 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.2 million of other restricted cash. As of January 2, 2022, the Company also held $ 161.7 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. Restricted cash and cash equivalents at January 3, 2021 included $ 177.1 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of the Company’s asset-backed securitization structure, $ 39.6 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.8 million of other restricted cash. As of January 3, 2021, the Company also held $ 115.9 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. Allowances for Credit Losses The Company closely monitors accounts and notes receivable balances and estimates the allowance for credit losses. These estimates are based on historical collection experience and other factors, including those related to current market conditions and events. The Company’s allowances for accounts and notes receivable have not historically been material. The Company also monitors its off-balance sheet exposures under its letters of credit (Note 3), lease guarantees (Note 5) and surety bonds. Total conditional commitments under surety bonds were $ 15.3 million and $ 11.0 million as of January 2, 2022 and January 3, 2021 , respectively. None of these arrangements has had or is likely to have a material effect on the Company’s results of operations, financial condition, revenues, expenses or liquidity. Inventories Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventories at January 2, 2022 and January 3, 2021 were comprised of the following: January 2, January 3, Food $ 61,994 $ 57,116 Equipment and supplies 6,334 9,567 Inventories $ 68,328 $ 66,683 Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, taxes, deposits, notes receivable, software licenses, implementation costs for cloud-based computing arrangements, covenants not-to-compete and other intangible assets primarily arising from franchise acquisitions. Other long-term assets included implementation costs for cloud-based computing arrangements (primarily related to certain enterprise systems) of $ 10.6 million and $ 8.4 million, net of accumulated amortization of $ 1.7 million and $ 0.4 million as of January 2, 2022 and January 3, 2021 , respectively. Amortization expense for implementation costs for cloud-based computing arrangements was $ 1.3 million and $ 0.4 million in 2021 and 2020, respectively. Amortization expense for implementation costs for cloud-based computing arrangements in 2019 was no t material. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows (in years): Buildings 20 Leasehold and other improvements 5 – 15 Equipment 3 – 15 Depreciation and amortization expense on property, plant and equipment was $ 48.6 million , $ 42.0 million and $ 37.1 million in 2021, 2020 and 2019 , respectively. Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including, on an annual basis, the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the Company determines that the carrying amount of an asset (or asset group) may not be recoverable, the Company compares the net carrying value of the asset group to the undiscounted net cash flows to be generated from the use and eventual disposition of that asset group. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized, and the asset is written down to its estimated fair value. There were no triggering events in 2021, 2020 and 2019 and accordingly, the Company did not record any impairment losses on long-lived assets in 2021, 2020 and 2019 . Investments in Marketable Securities Investments in marketable securities consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plan (Note 8). These investments are stated at aggregate fair value, are restricted and have been placed in a rabbi trust whereby the amounts are irrevocably set aside to fund the Company’s obligations under the deferred compensation plan. The Company classifies and accounts for these investments in marketable securities as trading securities. Goodwill The Company’s goodwill amounts primarily relate to franchise store acquisitions. The Company performs its required impairment tests in the fourth quarter of each fiscal year and did not recognize any goodwill impairment charges in 2021, 2020 and 2019 . Capitalized Software Capitalized software is recorded at cost and includes purchased, internally-developed and externally-developed software used in the Company’s operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Capitalized software amortization expense was $ 24.3 million , $ 23.0 million and $ 22.8 million in 2021, 2020 and 2019, respectively. As of January 2, 2022, scheduled amortization for capitalized software that has been placed in service as of January 2, 2022 is as follows in the table below. As of January 2, 2022 , the Company also had $ 61.0 million of capitalized software that had not yet been placed in service. 2022 $ 19,059 2023 10,075 2024 3,522 2025 1,158 2026 768 Thereafter — $ 34,582 Equity Investments Without Readily Determinable Fair Values Equity investments without readily determinable fair values are recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments (Note 4). These amounts are recorded in investments in the consolidated balance sheet. Any adjustments to the carrying amount are recognized in other income in the Company’s consolidated statements of income. The Company evaluates the potential impairment of its investments based on various analyses including financial results and operating trends, implied values from recent similar transactions and other relevant available information. If the carrying amount of the investment exceeds the estimated fair value of the investment, an impairment loss is recognized, and the investment is written down to its estimated fair value. Debt Issuance Costs Debt issuance costs are recorded as a reduction to the Company’s debt balance and primarily include the expenses incurred by the Company as part of the 2021, 2019, 2018, 2017 and 2015 Recapitalizations. Refer to Note 3 for a description of the 2021, 2019, 2018, 2017 and 2015 Recapitalizations. Amortization is recorded on a straight-line basis (which is materially consistent with the effective interest method) over the expected terms of the respective debt instrument to which the costs relate and is included in interest expense. Debt issuance cost amortization expense was $ 7.5 million , $ 5.5 million and $ 4.7 million in 2021, 2020 and 2019 , respectively. Insurance Reserves The Company has retention programs for workers’ compensation, general liability and owned and non-owned automobile liabilities for certain periods prior to December 1998 and for periods after December 2001. The Company is generally responsible for up to $ 2.0 million per occurrence under these retention programs for workers’ compensation and general liability exposures. The Company is also generally responsible for between $ 500,000 and $ 5.5 million per occurrence under these retention programs for owned and non-owned automobile liabilities depending on the year. Total insurance limits under these retention programs vary depending on the year covered and range up to $ 110.0 million per occurrence for general liability and owned and non-owned automobile liabilities and up to the applicable statutory limits for workers’ compensation. Casualty insurance reserves relating to the Company's retention programs are based on undiscounted actuarial estimates. These estimates are based on historical information and on certain assumptions about future events. Changes in assumptions for such factors as medical costs and legal actions, as well as changes in actual experience, could cause these estimates to change in the near term. The Company generally receives estimates of outstanding casualty insurance exposures from its independent actuary twice per year and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. The Company had reserves for these programs of $ 56.5 million and $ 54.6 million as of January 2, 2022 and January 3, 2021, respectively. In addition, the Company maintains reserves for its share of employee health costs as part of the health care benefits offered to its employees. Reserves are based on estimated claims incurred that have not yet been paid, based on historical claims and payment lag times. Contract Liabilities Contract liabilities consist primarily of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 5.4 million and $ 4.1 million were included in current other accrued liabilities as of January 2, 2022 and January 3, 2021 , respectively. Deferred franchise fees and deferred development fees of $ 24.3 million and $ 15.0 million were included in long-term other accrued liabilities as of January 2, 2022 and January 3, 2021, respectively. Changes in deferred franchise fees and deferred development fees in 2021 and 2020 were as follows: Fiscal Year Ended January 2, January 3, Deferred franchise fees and deferred development fees, beginning of period $ 19,090 $ 20,463 Revenue recognized during the period ( 5,845 ) ( 6,205 ) New deferrals due to cash received and other 16,449 4,832 Deferred franchise fees and deferred development fees, end of period $ 29,694 $ 19,090 The Company expects to recognize revenue associated with deferred franchise fees and deferred development fees as follows in the table below. The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations. 2022 $ 5,403 2023 5,162 2024 4,855 2025 4,406 2026 4,003 Thereafter 5,865 $ 29,694 Other Accrued Liabilities Current and long-term other accrued liabilities primarily include accruals for income, sales, property and other taxes, legal reserves, store operating expenses, dividends payable, deferred compensation and contract liabilities. Foreign Currency Translation The Company ’ s foreign entities use their local currency as the functional currency. For these entities, the Company translates net assets into U.S. dollars at year end exchange rates, while income and expense accounts are translated at average annual exchange rates. Currency translation adjustments are included in accumulated other comprehensive income (loss) and foreign currency transaction gains and losses are included in determining net income. Revenue Recognition U.S. Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the U.S. and are recognized when the items are delivered to or carried out by customers. Customer payments are generally due at the time of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate taxing authority and are not reflected in the Company’s consolidated statements of income as revenue. U.S. franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the U.S. Each franchisee is generally required to pay a 5.5 % royalty fee on sales. In certain instances, the Company will collect lower rates based on area development agreements, sales initiatives, store relocation incentives and new store incentives. Royalty revenues are based on a percentage of franchise retail sales and are recognized when the items are delivered to or carried out by franchisees’ customers. U.S. franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur. Payments for U.S. royalties and fees are generally due within seven days of the prior week end date. Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the U.S. and Canada. Revenues from the sale of food are recognized upon delivery of the food to franchisees and payments for food purchases are generally due within 30 days of the shipping date. Revenues from the sale of equipment and supplies are recognized upon delivery or shipment of the related products to franchisees, based on shipping terms, and payments for equipment and supplies are generally due within 90 days of the shipping date. The Company also offers profit sharing rebates and volume discounts to its franchisees. Obligations for profit sharing rebates are calculated based on actual results of its supply chain centers and are recognized as a reduction to revenue. Volume discounts are based on annual sales. The Company estimates the amount that will be earned and records a reduction to revenue throughout the year. International franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside of the U.S. Royalty revenues are recognized when the items are delivered to or carried out by franchisees’ customers. Store opening fees received from international franchisees are recognized as revenue on a straight-line basis over the term of each respective franchise store agreement, which is typically ten years. Development fees received from international master franchisees are also deferred when amounts are received and are recognized as revenue on a straight-line basis over the term of the respective master franchise agreement, which is typically ten years. International franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur. International franchise royalties and fees are invoiced at least quarterly and payments are generally due within 60 days. U.S. franchise advertising revenues are comprised of contributions from Domino’s Pizza franchisees with operations in the U.S. to the Domino’s National Advertising Fund Inc. (“DNAF”), the Company’s consolidated not-for-profit subsidiary that administers the Domino’s Pizza system’s national and market level advertising activities in the U.S. Each franchisee is generally required to contribute 6 % of their retail sales to fund national marketing and advertising campaigns (subject, in certain instances, to lower rates based on certain incentives and waivers). These revenues are recognized when items are delivered to or carried out by franchisees’ customers. Payments for U.S. franchise advertising revenues are generally due within seven days of the prior week end date. Although these revenues are restricted to be used only for advertising and promotional activities to benefit franchised stores, the Company has determined there are not performance obligations associated with the franchise advertising contributions received by DNAF that are separate from its U.S. royalty payment stream and as a result, these franchise contributions and the related expenses are presented gross in the Company’s consolidated statements of income. Disaggregation of Revenue Current accounting standards require that companies disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company has included its revenues disaggregated in its consolidated statements of income to satisfy this requirement. Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with U.S. and Canadian franchisees that purchase all of their food from the Company’s supply chain centers. These profit-sharing arrangements generally offer Company-owned stores and participating franchisees 50 % (or a higher percentage in the case of Company-owned stores and certain franchisees who operate a larger number of stores) of the pre-tax profit from the Company’s supply chain center operations. Profit-sharing obligations are recorded as a reduction to supply chain revenues in the same period as the related revenues and costs are recorded, and were $ 148.3 million , $ 169.0 million and $ 143.5 million in 2021, 2020 and 2019 , respectively. Cost of Sales Cost of sales consists primarily of U.S. Company-owned store and supply chain costs incurred to generate related revenues. Components of consolidated cost of sales primarily include food, labor, delivery, occupancy costs (including rent, telephone, utilities and depreciation) and insurance expense . General and Administrative General and administrative expense consists primarily of labor cost (including variable performance-based compensation expense and non-cash equity-based compensation expense), depreciation and amortization, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Advertising U.S. stores are generally required to contribute 6% of sales to DNAF. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized, as DNAF is obligated to expend such revenues on advertising and other activities to promote the Domino’s brand. U.S. franchise advertising costs expended by DNAF are included in U.S. franchise advertising expenses in the Company’s consolidated statements of income. Advertising costs funded by Company-owned stores are generally expensed as incurred and are included in general and administrative expense. Contributions from Company-owned stores that have not yet been expended are included in advertising fund assets, restricted on the Company’s consolidated balance sheet. Advertising expense included $ 479.5 million , $ 462.2 million and $ 390.8 million of U.S. franchise advertising expense in 2021, 2020 and 2019, respectively. Advertising expense also included $ 42.1 million , $ 35.7 million and $ 37.6 million in 2021, 2020 and 2019, respectively, primarily related to advertising costs funded by U.S. Company-owned stores and other general marketing expenses which are included in general and administrative expense in the consolidated statements of income. As of January 2, 2022, advertising fund assets, restricted of $ 180.9 million consisted of $ 161.7 million of cash and cash equivalents, $ 14.5 million of accounts receivable and $ 4.7 million of prepaid expenses. As of January 2, 2022, advertising fund cash and cash equivalents included $ 7.2 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 3, 2021, advertising fund assets, restricted of $ 147.7 million consisted of $ 115.9 million of cash and cash equivalents, $ 27.0 million of accounts receivable and $ 4.8 million of prepaid expenses. As of January 3, 2021, advertising fund cash and cash equivalents included $ 6.5 million of cash contributed from U.S. Company-owned stores that had not yet been expended. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use assets and operating lease liabilities in the Company’s consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Company’s consolidated balance sheet. Right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. Common Stock Dividends The Company declared dividends of $ 139.6 million (or $ 3.76 per share) in 2021, $ 122.2 million (or $ 3.12 per share) in 2020 and $ 105.6 million (or $ 2.60 per share) in 2019 . The Company paid dividends of $ 139.4 million, $ 121.9 million, and $ 105.7 million in 2021, 2020 and 2019, respectively. On February 24, 2022, the Company’s Board of Directors declared a quarterly dividend of $ 1.10 per common share payable on March 30, 2022 to shareholders of record at the close of business on March 15, 2022. Stock Options and Other Equity-Based Compensation Arrangements The cost of all of the Company’s stock options, as well as other equity-based compensation arrangements, is reflected in the financial statements based on the estimated fair value of the awards (Note 9). Earnings Per Share The Company discloses two calculations of earnings per share (“EPS”): basic EPS and diluted EPS (Note 2). The numerator in calculating common stock basic and diluted EPS is consolidated net income. The denominator in calculating common stock basic EPS is the weighted average shares outstanding. The denominator in calculating common stock diluted EPS includes the additional dilutive effect of outstanding stock options, unvested restricted stock grants and unvested performance-based restricted stock grants. Supplemental Disclosures of Cash Flow Information The Company paid interest of $ 174.6 million, $ 160.6 million and $ 142.3 million during 2021, 2020 and 2019 , respectively, on its Notes (Note 3). Cash paid for income taxes was $ 106.3 million, $ 60.4 million and $ 80.3 million in 2021, 2020 and 2019, respectively. The Company had $ 5.4 million , $ 4.3 million and $ 6.9 million of non-cash investing activities related to accruals for capital expenditures at January 2, 2022, January 3, 2021 and December 29, 2019 , respectively. The Company also had $ 0.4 million, $ 0.7 million and $ 0.0 million of non-cash investing activities related to lease incentives in 2021, 2020 and 2019 respectively. New Accounting Pronouncements Recently Adopted Accounting Standards Accounting Standards Update (“ASU”) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes (Topic 740) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) , which simplifies the accounting for income taxes. ASU 2019-12 was effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company adopted this accounting standard in the first quarter of 2021, and it did not have a material impact on its consolidated financial statements. Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 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. The Company adopted this standard as of December 30, 2019, the first day of its 2020 fiscal year, using the modified retrospective approach and it did not have a material impact on its consolidated financial statements. The Company recognized the cumulative effect of initially applying ASC 326 as an adjustment to the opening balance of retained deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. An adjustment to beginning retained deficit and a corresponding adjustment to the allowance for doubtful accounts and notes receivable of $ 1.5 million was recorded on the date of adoption, representing the remeasurement of these accounts to the Company’s estimate for current expected credit losses. The adjustment to beginning retained deficit was also net of a $ 0.4 million adjustment to deferred income taxes. Accounting Standards Not Yet Adopted The Company has considered all new accounting pronouncements issued by the FASB. The Company has not yet completed its assessment of the following standard. ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. Subsequent to the closing of the 2021 Recapitalization, the Company’s 2021 Variable Funding Notes bear interest at fluctuating interest rates based on LIBOR. However, the associated loan documents contemplate a transition from LIBOR to secured overnight financing rate (“SOFR”) in the event that LIBOR ceases to exist. If the Company further needs to renegotiate its loan documents, the Company cannot predict what alternative index would be negotiated with its lenders. ASU 2020-04 may currently be adopted and may be applied prospectively to contract modifications made on or before December 31, 2022. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (2) Earnings per Share The computation of basic and diluted earnings per common share for 2021, 2020 and 2019 is as follows: 2021 2020 2019 Net income available to common stockholders – basic and diluted $ 510,467 $ 491,296 $ 400,709 Weighted average number of common shares 37,198,292 38,974,037 40,766,362 Earnings per common share – basic $ 13.72 $ 12.61 $ 9.83 Diluted weighted average number of common shares 37,691,351 39,640,791 41,923,062 Earnings per common share – diluted $ 13.54 $ 12.39 $ 9.56 The denominators used in calculating diluted earnings per share for common stock for 2021, 2020 and 2019 do not include the following because the effect of including these shares would be anti-dilutive or because the performance targets for these awards had not yet been met: 2021 2020 2019 Anti-dilutive shares underlying stock-based awards Stock options 41,215 52,330 160,980 Restricted stock awards and units 1,010 — — Performance condition not met Restricted stock awards and units 29,704 68,159 82,647 |
Recapitalizations and Financing
Recapitalizations and Financing Arrangements | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Recapitalizations and Financing Arrangements | (3) Recapitalizations and Financing Arrangements The 2021 Notes, 2019 Notes, 2018 Notes, 2017 Notes and 2015 Notes (each, as defined below) are collectively referred to as the “Notes.” The Company made payments of $ 907.0 million, $ 42.0 million and $ 26.4 million in 2021, 2020 and 2019, respectively on the Notes. The Company borrowed and repaid $ 158.0 million under its variable funding note facility in 2020, and repaid $ 65.0 million under its variable funding note facility in 2019. 2021 Recapitalization On April 16, 2021, the Company completed a recapitalization transaction (the “2021 Recapitalization”) in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consist of $ 850.0 million Series 2021-1 2.662 % Fixed Rate Senior Secured Notes, Class A-2-I with an anticipated term of 7.5 years (the “2021 7.5-Year Notes”) and $ 1.0 billion Series 2021-1 3.151 % Fixed Rate Senior Secured Notes, Class A-2-II with an anticipated term of 10 years (the "2021 Ten-Year Notes", and, collectively with the 2021 7.5-Year Notes, the “2021 Notes”). Gross proceeds from the issuance of the 2021 Notes were $ 1.85 billion. Concurrently, certain of the Company’s subsidiaries also issued a new variable funding note facility which allows for advances of up to $ 200.0 million of Series 2021-1 Variable Funding Senior Secured Notes, Class A-1 Notes and certain other credit instruments, including letters of credit (the “2021 Variable Funding Notes”). In connection with the issuance of the 2021 Variable Funding Notes, the Company’s 2019 Variable Funding Notes (as defined below) were canceled. The proceeds from the 2021 Recapitalization were used to repay the remaining $ 291.0 million in outstanding principal under the Company’s 2017 Floating Rate Notes (as defined below) and $ 582.0 million in outstanding principal under the Company’s 2017 Five-Year Fixed Rate Notes (as defined below), prefund a portion of the interest payable on the 2021 Notes, pay transaction fees and expenses and repurchase and retire shares of the Company’s common stock (Note 10). 2019 Recapitalization On November 19, 2019, the Company completed a recapitalization transaction (the “2019 Recapitalization”) in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consist of $ 675.0 million Series 2019-1 3.668 % Fixed Rate Senior Secured Notes, Class A-2 with an anticipated term of 10 years (the “2019 Notes”). The Company also entered into a variable funding note facility, which allowed for the issuance of up to $ 200.0 million Series 2019-1 Variable Funding Senior Secured Notes, Class A-1 (the “2019 Variable Funding Notes”) and certain other credit instruments, including letters of credit. Gross proceeds from the issuance of the 2019 Notes were $ 675.0 million. The proceeds from the 2019 Recapitalization were used to prefund a portion of the principal and interest payable on the 2019 Notes, pay transaction fees and expenses and repurchase and retire shares of the Company’s common stock. 2018 Recapitalization On April 24, 2018, the Company completed a recapitalization transaction (the “2018 Recapitalization”) in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consist of $ 425.0 million Series 2018-1 4.116 % Fixed Rate Senior Secured Notes, Class A-2-I with an anticipated term of 7.5 years (the “2018 7.5-Year Notes”), and $ 400.0 million Series 2018-1 4.328 % Fixed Rate Senior Secured Notes, Class A-2-II with an anticipated term of 9.25 years (the “2018 9.25-Year Notes” and, collectively with the 2018 7.5-Year Notes, the “2018 Notes”). Gross proceeds from the issuance of the 2018 Notes were $ 825.0 million. 2017 Recapitalization On July 24, 2017, the Company completed a recapitalization transaction (the “2017 Recapitalization”) in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consisted of $ 300.0 million Series 2017-1 Floating Rate Senior Secured Notes, Class A-2-I with an anticipated term of five years (the “2017 Floating Rate Notes”), $ 600.0 million Series 2017-1 3.082 % Fixed Rate Senior Secured Notes, Class A-2-II with an anticipated term of five years (the “2017 Five-Year Fixed Rate Notes”) and $1.0 billion Series 2017-1 4.118% Fixed Rate Senior Secured Notes, Class A-2-III with an anticipated term of ten years (the “2017 Ten-Year Fixed Rate Notes” and, collectively with the 2017 Floating Rate Notes and the 2017 Five-Year Fixed Rate Notes, the “2017 Notes”). The interest rate on the 2017 Floating Rate Notes was payable at a rate equal to LIBOR plus 125 basis points. Gross proceeds from the issuance of the 2017 Notes were $ 1.9 billion. 2015 Recapitalization On October 21, 2015, the Company completed a recapitalization transaction (the “2015 Recapitalization”) in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consisted of $ 500.0 million Series 2015-1 3.484 % Fixed Rate Senior Secured Notes, Class A-2-I (the “2015 Five-Year Notes”) and $ 800.0 million Series 2015-1 4.474 % Fixed Rate Senior Secured Notes, Class A-2-II (the “2015 Ten-Year Notes” and, together with the 2015 Five-Year Notes, the “2015 Notes”). Gross proceeds from the issuance of the 2015 Notes were $ 1.3 billion. 2021 Notes The 2021 Notes have remaining scheduled principal payments of $ 18.5 million in each of 2022 through 2027, $ 804.8 million in 2028, $ 10.0 million in each of 2029 and 2030 and $ 905.0 million in 2031. The legal final maturity date of the 2021 Notes is April 2051, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2021 7.5-Year Notes will be repaid on or prior to the anticipated repayment date occurring in October 2028, and the 2021 Ten-Year Notes will be repaid on or prior to the anticipated repayment date occurring in April 2031. If the Company has not repaid or refinanced the 2021 Notes prior to the applicable anticipated repayment dates, additional interest of at least 5 % per annum will accrue, as defined in the related agreements. The 2021 Variable Funding Notes allow for advances of up to $ 200.0 million and issuance of certain other credit instruments, including letters of credit. The letters of credit are primarily related to our casualty insurance programs and certain supply chain center leases. Interest on the 2021 Variable Funding Notes is payable at a per year rate equal to LIBOR plus 150 basis points. The 2021 Variable Funding Notes were undrawn at closing of the 2021 Recapitalization. The unused portion of the 2021 Variable Funding Notes is subject to a commitment fee ranging from 50 to 100 basis points depending on utilization. It is anticipated that any amounts outstanding on the 2021 Variable Funding Notes will be repaid in full on or prior to April 2026, subject to two additional one-year extensions at the option of the Company, subject to certain conditions. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2021 Variable Funding Notes equal to 5 % per annum. As of January 2, 2022, the Company had no outstanding borrowings and $ 155.8 million of available borrowing capacity under its 2021 Variable Funding Notes, net of letters of credit issued of $ 44.2 million . 2019 Notes The 2019 Fixed Rate Notes have remaining scheduled principal payments of $ 6.8 million in each of 2022 through 2028 and $ 615.9 million in 2029. The legal final maturity date of the 2019 Notes is October 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2019 Notes will be repaid on or prior to the anticipated repayment date occurring in October 2029. If the Company has not repaid or refinanced the 2019 Notes prior to the applicable anticipated repayment dates, additional interest of at least 5 % per annum will accrue, as defined in the related agreements. The 2019 Variable Funding Notes allowed for advances of up to $ 200.0 million and issuance of certain other credit instruments, including letters of credit. The letters of credit are primarily related to our casualty insurance programs and certain supply chain center leases. Interest on the 2019 Variable Funding Notes was payable at a per year rate equal to LIBOR plus 150 basis points. The 2019 Variable Funding Notes were cancelled in connection with the 2021 Recapitalization. As of January 3, 2021, the Company had no outstanding borrowings and $ 157.5 million of available borrowing capacity under its 2019 Variable Funding Notes, net of letters of credit issued of $ 42.5 million. 2018 Notes The 2018 Notes have remaining scheduled principal payments of $ 8.3 million in each of 2022 through 2024, $ 403.5 million in 2025, $ 4.0 million in 2026 and $ 368.0 million in 2027. The legal final maturity date of the 2018 Notes is July 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2018 7.5 -Year Notes will be repaid on or prior to the anticipated repayment date occurring in October 2025, and the 2018 9.25-Year Notes will be repaid on or prior to the anticipated repayment date occurring in July 2027. If the Company has not repaid or refinanced the 2018 Notes prior to the applicable anticipated repayment dates, additional interest of at least 5 % per annum will accrue, as defined in the related agreements. 2017 Notes The 2017 Five-Year Fixed Rate Notes and the 2017 Floating Rate Notes were repaid in connection with the 2021 Recapitalization. The 2017 Ten-Year Fixed Rate Notes have remaining scheduled principal payments of $ 10.0 million in each of 2022 through 2026 and $ 912.5 million in 2027. The legal final maturity date of the 2017 Ten-Year Fixed Rate Notes is October 2047, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2017 Ten-Year Fixed Rate Notes will be repaid on or prior to the anticipated repayment date occurring in July 2027. If the Company has not repaid or refinanced the 2017 Ten-Year Fixed Rate Notes prior to the applicable anticipated repayment dates, additional interest of at least 5 % per annum will accrue, as defined in the related agreements. 2015 Notes The 2015 Five-Year Notes were repaid in connection with the 2018 Recapitalization. The 2015 Ten-Year Notes have original remaining scheduled principal payments of $ 8.0 million in 2022 through 2024 and $ 736.0 million in 2025. The legal final maturity date of the 2015 Ten-Year Notes is in October 2045, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2015 Ten-Year Notes will be repaid on or prior to the anticipated repayment date occurring in October 2025. If the Company has not repaid or refinanced the 2015 Ten-Year Notes prior to the applicable anticipated repayment date, additional interest will accrue of at least 5 % per annum, as defined in the related agreements. Debt Issuance Costs and Transaction-Related Expenses During 2021 and in connection with the 2021 Recapitalization, the Company incurred approximately $ 2.8 million of net pre-tax expenses, primarily related to $ 2.0 million in expense related to the write-off of debt issuance costs associated with the repayment of the 2017 Five-Year Fixed Rate Notes and 2017 Floating Rate Notes. The Company also incurred approximately $ 0.3 million of interest expense on the 2017 Five-Year Fixed Rate Notes and the 2017 Floating Rate Notes subsequent to the closing of the Company’s 2021 Recapitalization, but prior to the repayment of the 2017 Five-Year Fixed Rate Notes and the 2017 Floating Rate Notes, resulting in the payment of interest on both the 2017 Five-Year Fixed Rate Notes and the 2017 Floating Rate Notes as well as the 2021 Notes for a short period of time. Further, the Company incurred $ 0.5 million of 2021 Recapitalization-related general and administrative expenses, including legal and professional fees. In connection with the 2021 Recapitalization, the Company recorded $ 14.9 million of debt issuance costs, which are being amortized into interest expense over the respective terms of the 2021 Notes. During 2019 and in connection with the 2019 Recapitalization, the Company incurred $ 0.5 million of net pre-tax 2019 Recapitalization-related general and administrative expenses, including legal and professional fees. In connection with the 2019 Recapitalization, the Company recorded $ 8.1 million of debt issuance costs, which are being amortized into interest expense over the ten-year expected term of the 2019 Notes. Guarantees and Covenants of the Notes The Notes are guaranteed by certain subsidiaries of DPLLC and secured by a security interest in substantially all of the assets of the Company, including royalty and certain other income from all U.S. and international stores, U.S. supply chain income and intellectual property. The restrictions placed on the Company’s subsidiaries require that the Company’s principal and interest obligations have first priority and amounts are segregated weekly to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of weekly cash flow that exceeds the required weekly principal and interest reserve is generally remitted to the Company in the form of a dividend. However, once the required obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the subsidiaries. The Notes are subject to certain financial and non-financial covenants, including a debt service coverage ratio calculation. The covenant requires a minimum coverage ratio of 1.75x total debt service to securitized net cash flow, as defined in the related agreements. The covenants, among other things, may limit the ability of certain of the Company’s subsidiaries to declare dividends, make loans or advances or enter into transactions with affiliates. In the event that certain covenants are not met, the Notes may become partially or fully due and payable on an accelerated schedule. In addition, the Company may voluntarily prepay, in part or in full, the Notes at any time, subject to certain make-whole interest obligations. While the Notes are outstanding, scheduled payments of principal and interest are required to be made on a quarterly basis. The payment of principal of the Notes may be suspended if the leverage ratio for the Company is less than or equal to 5.0 x total debt, as defined, to adjusted EBITDA, as defined in the related agreements. Scheduled principal payments will resume upon failure to satisfy the aforementioned leverage ratio on an ongoing basis and no catch-up provisions are applicable. As of the fourth quarter of 2020, the Company had a leverage ratio of less than 5.0 x, and accordingly, did not make the previously scheduled debt amortization payment in the first quarter of 2021. Accordingly, all principal amounts of the Company’s then outstanding 2019 Notes, 2018 Notes, the 2017 Notes and the 2015 Notes were classified as long-term debt in the consolidated balance sheet as of January 3, 2021. Subsequent to the closing of the 2021 Recapitalization, the Company had a leverage ratio of greater than 5.0 x and, accordingly, the Company resumed making the scheduled amortization payments on its then outstanding notes in the second quarter of 2021. As of the third quarter of 2019, the Company had a leverage ratio of less than 5.0 x, and, in accordance with the Company’s debt agreements, ceased debt amortization payments in the fourth quarter of 2019. Subsequent to the 2019 Recapitalization, the Company’s leverage ratios exceeded the leverage ratio of 5.0 x and, accordingly, the Company resumed making the scheduled amortization payments on its then outstanding notes in the first quarter of 2020. Consolidated Long-Term Debt At January 2, 2022 and January 3, 2021, consolidated long-term debt consisted of the following: January 2, January 3, 2015 Ten-Year Notes $ 760,000 $ 766,000 2017 Five-Year Fixed Rate Notes — 582,000 2017 Ten-Year Fixed Rate Notes 962,500 970,000 2017 Floating Rate Notes — 291,000 2018 7.5-Year Notes 412,250 415,438 2018 9.25-Year Notes 388,000 391,000 2019 Ten-Year Notes 663,188 668,250 2021 7.5-Year Notes 845,750 — 2021 Ten-Year Notes 995,000 — Finance lease obligations 76,338 60,555 Debt issuance costs, net of accumulated amortization ( 32,800 ) ( 25,370 ) Total debt 5,070,226 4,118,873 Less – current portion ( 55,588 ) ( 2,855 ) Consolidated long-term debt, net of debt issuance costs $ 5,014,638 $ 4,116,018 At January 2, 2022, maturities of long-term debt and finance lease obligations were as follows: 2022 $ 55,588 2023 55,438 2024 55,816 2025 1,178,971 2026 43,979 Thereafter 3,713,234 $ 5,103,026 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Value of Cash Equivalents and Investments The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The fair value of the Company’s Level 3 investment is not readily determinable. The fair value represents its cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The following table summarizes the carrying amounts and fair values of certain assets at January 2, 2022: At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840 The following table summarizes the carrying amounts and fair values of certain assets at January 3, 2021: At January 3, 2021 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 151,502 $ 151,502 $ — $ — Restricted cash equivalents 126,595 126,595 — — Investments in marketable securities 13,251 13,251 — — Advertising fund cash equivalents, restricted 104,197 104,197 — — Investments 40,000 — — 40,000 During the second quarter of 2020, a subsidiary of the Company acquired a non-controlling interest in DPC Dash Ltd (formerly Dash Brands Ltd.), a privately-held company limited by shares incorporated with limited liability under the laws of the British Virgin Islands (“DPC Dash”), for $ 40.0 million. Through its subsidiaries, DPC Dash serves as the Company’s master franchisee in China that owns and operates Domino’s Pizza stores in that market. The Company’s investment in DPC Dash’s senior ordinary shares, which are not in-substance common stock, represents an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. During the first quarter of 2021, the Company invested an additional $ 40.0 million in DPC Dash based on DPC Dash’s achievement of certain pre-established performance conditions and recorded a positive adjustment of $ 2.5 million to the original carrying amount of $ 40.0 million resulting from the observable change in price from the valuation of the additional investment, resulting in a net carrying amount of $ 82.5 million as of the end of the first quarter of 2021. The Company did not record any adjustments to the carrying amount of $ 82.5 million in the second or third quarter of 2021. During the fourth quarter of 2021, the Company invested an additional $ 9.1 million in DPC Dash and recorded a positive adjustment of $ 34.3 million to the carrying amount of $ 82.5 million resulting from the observable change in price from the valuation of the additional investment. These amounts were recorded in other income in the Company’s consolidated statements of income. The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at January 2, 2022. Fiscal 2021 Carrying Amount Carrying Amount January 3, Unrealized January 2, 2021 Purchases Gain 2022 Investments $ 40,000 $ 49,082 $ 36,758 $ 125,840 The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at December 29, 2019 to the closing balance at January 3, 2021 . Fiscal 2020 Carrying Amount Carrying Amount December 29, Unrealized January 3, 2019 Purchases Gain 2021 Investments $ — $ 40,000 $ — $ 40,000 Fair Value of Debt The estimated fair values of the Company’s Notes (Note 3) are classified as Level 2 measurements, as the Company estimates the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed and floating rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to those of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated below. Management estimated the approximate fair values of the Notes as follows: January 2, 2022 January 3, 2021 Principal Fair Value Principal Fair Value 2015 Ten-Year Notes $ 760,000 $ 777,480 $ 766,000 $ 809,662 2017 Five-Year Fixed Rate Notes — — 582,000 582,582 2017 Ten-Year Fixed Rate Notes 962,500 1,000,038 970,000 1,035,960 2017 Floating Rate Notes — — 291,000 291,000 2018 7.5-Year Notes 412,250 420,907 415,438 437,456 2018 9.25-Year Notes 388,000 407,788 391,000 422,280 2019 Ten-Year Notes 663,188 693,031 668,250 712,355 2021 7.5-Year Notes 845,750 849,133 — — 2021 Ten-Year Notes 995,000 1,017,885 — — The Company did not have any outstanding borrowings under its variable funding notes at January 2, 2022 or January 3, 2021 . |
Leases
Leases | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Leases | (5) Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for 2021, 2020 and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 44,913 $ 44,679 $ 42,903 Finance lease cost: Amortization of right-of-use assets 4,373 2,186 1,167 Interest on lease liabilities 4,233 3,340 1,952 Total finance lease cost $ 8,606 $ 5,526 $ 3,119 Rent expense totaled $ 78.6 million , $ 73.7 million and $ 69.7 million in 2021, 2020 and 2019 , respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $ 8.0 million, $ 4.2 million and $ 4.0 million in 2021, 2020 and 2019, respectively. Variable rent expense and rent expense for other short-term leases were immaterial for 2021, 2020 and 2019. Supplemental balance sheet information related to the Company’s leases as of January 2, 2022 and January 3, 2021 was as follows: January 2, January 3, Land and buildings $ 86,965 $ 68,084 Accumulated depreciation and amortization ( 14,423 ) ( 10,049 ) Finance lease assets, net $ 72,542 $ 58,035 Current portion of long-term debt $ 4,088 $ 2,855 Long -term debt, less current portion 72,250 57,700 Total principal payable on finance leases $ 76,338 $ 60,555 As of January 2, 2022 and January 3, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: 2021 2020 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 15 years 7 years 16 years Weighted average discount rate 3.5 % 5.8 % 3.7 % 6.8 % Supplemental cash flow information related to leases for 2021, 2020 and 2019 was as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 44,176 $ 43,679 $ 43,608 Operating cash flows from finance leases 4,233 3,340 1,952 Financing cash flows from finance leases 3,212 2,058 647 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 29,549 37,375 63,685 Finance leases 18,991 42,894 3,255 Maturities of lease liabilities as of January 2, 2022 were as follows: Operating Finance Leases Leases 2022 $ 45,347 $ 8,084 2023 39,057 7,536 2024 38,027 8,115 2025 32,417 7,935 2026 29,280 8,633 Thereafter 65,645 78,071 Total future minimum rental commitments 249,773 118,374 Less – amounts representing interest ( 28,147 ) ( 42,036 ) Total lease liabilities $ 221,626 $ 76,338 As of January 2, 2022 , the Company had additional leases for one supply chain center and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of $ 66.7 million. These leases are expected to commence in 2022 with lease terms of up to 16 years. These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $ 9.1 million and $ 12.6 million as of January 2, 2022 and January 3, 2021 , respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues or expenses, capital expenditures or liquidity. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (6) Commitments and Contingencies The Company is a party to lawsuits, revenue agent reviews by taxing authorities and legal proceedings, of which the majority involve workers’ compensation, employment practices liability, general liability and automobile and franchisee claims arising in the ordinary course of business. The Company records legal fees associated with loss contingencies when they are probable and reasonably estimable. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. These matters could be decided unfavorably and could require the Company to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated with accuracy. In management’s opinion, these matters, individually and in the aggregate, should not have a significant adverse effect on the financial condition of the Company, and the established accruals adequately provide for the estimated resolution of such claims. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Income before provision for income taxes in 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 U.S. $ 611,267 $ 541,646 $ 468,467 Foreign 14,438 13,484 14,170 Income before provision for income taxes $ 625,705 $ 555,130 $ 482,637 The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21 %) and the Company’s consolidated provision for income taxes for 2021, 2020 and 2019 are summarized as follows: 2021 2020 2019 Federal income tax provision based on the statutory rate $ 131,398 $ 116,577 $ 101,354 State and local income taxes, net of related Federal income taxes 15,108 16,660 15,141 Non-resident withholding and foreign income taxes 21,833 18,741 20,351 Foreign tax and other tax credits ( 23,509 ) ( 19,506 ) ( 20,090 ) Foreign derived intangible income ( 16,800 ) ( 12,390 ) ( 12,810 ) Excess tax benefits from equity-based compensation ( 18,911 ) ( 60,364 ) ( 25,735 ) Non-deductible expenses, net 4,501 4,359 3,090 Unrecognized tax provision, net of related Federal income taxes 4,372 516 694 Other ( 2,754 ) ( 759 ) ( 67 ) Provision for income taxes $ 115,238 $ 63,834 $ 81,928 Excess tax benefits from equity-based compensation activity resulted in a decrease in the Company’s provision for income taxes of $ 18.9 million in 2021, $ 60.4 million in 2020 and $ 25.7 million in 2019, primarily due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The components of the 2021, 2020 and 2019 consolidated provision for income taxes were as follows: 2021 2020 2019 Provision for Federal income taxes Current provision $ 74,910 $ 19,894 $ 49,539 Deferred (benefit) provision ( 2,051 ) 14,301 ( 2,862 ) Total provision for Federal income taxes 72,859 34,195 46,677 Provision for state and local income taxes Current provision 16,507 10,775 15,335 Deferred (benefit) provision ( 461 ) 123 ( 435 ) Total provision for state and local income taxes 16,046 10,898 14,900 Provision for non-resident withholding and foreign income taxes Current provision 21,833 18,741 20,351 Deferred provision 4,500 — — Total provision for non-resident withholding and foreign income taxes 26,333 18,741 20,351 Provision for income taxes $ 115,238 $ 63,834 $ 81,928 As of January 2, 2022 and January 3, 2021, the significant components of net deferred income taxes were as follows: January 2, January 3, Deferred income tax assets Operating lease liabilities $ 54,478 $ 58,885 Accruals and reserves 15,207 14,148 Insurance reserves 12,867 12,447 Non-cash equity-based compensation expense 7,861 8,331 Foreign tax credit 10,206 6,603 Other 8,158 7,720 Deferred income tax assets before valuation allowance 108,777 108,134 Less: Valuation allowance ( 11,364 ) ( 7,600 ) Total deferred income tax assets 97,413 100,534 Deferred income tax liabilities Operating lease right-of-use assets 51,793 56,446 Capitalized software 19,828 29,596 Depreciation, amortization and asset basis differences 18,570 18,687 Unrealized gain on investments 9,035 — Total deferred income tax liabilities 99,226 104,729 Net deferred income taxes $ ( 1,813 ) $ ( 4,195 ) Realization of the Company ’ s deferred tax assets is dependent upon many factors, including, but not limited to, the Company ’ s ability to generate sufficient taxable income. Although realization of the Company ’ s deferred tax assets is not assured, on an ongoing basis, management assesses whether it remains more likely than not the deferred tax assets will be realized. As of January 2, 2022 and January 3, 2021 , the Company had total foreign tax credits of $ 10.2 million and $ 6.6 million, respectively, which were fully offset with a corresponding valuation allowance. As of January 2, 2022 and January 3, 2021 , the Company also had valuation allowances related to interest deductibility in separately filed states of $ 1.2 million and $ 1.0 million, respectively. Management believes the remaining deferred tax assets will be realized. For financial reporting purposes, the Company ’ s investment in foreign subsidiaries does not exceed its tax basis. Therefore, no deferred income taxes have been provided. In 2021, the Company recorded an unrealized gain on its non-controlling interest in DPC Dash (Note 4) and accordingly, has also recorded a deferred tax liability representing the book basis over tax basis related to this unrealized gain. The Company recognizes the financial statement benefit of a tax position if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authorities widely understood administrative practices and precedents. For tax positions meeting the “more likely than not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and recognizes penalties in income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 2, 2022, January 3, 2021 and December 29, 2019 is as follows: January 2, January 3, December 29, Unrecognized tax benefits at beginning of period $ 3,318 $ 2,802 $ 1,964 Additions for tax positions of current year 2,611 494 468 Additions for tax positions of prior years 2,624 506 789 Reductions for changes in prior year tax positions ( 379 ) ( 178 ) ( 284 ) Reductions for lapses of applicable statute of limitations ( 484 ) ( 306 ) ( 135 ) Unrecognized tax benefits at end of period $ 7,690 $ 3,318 $ 2,802 As of January 2, 2022 , the amount of unrecognized tax benefits was $ 7.7 million of which, if ultimately recognized, $ 6.7 million would be recognized as an income tax benefit and reduce the Company ’ s effective tax rate. As of January 2, 2022 , the Company had $ 0.3 million of accrued interest and no accrued penalties. As of January 3, 2021 , the amount of unrecognized tax benefits was $ 3.3 million of which, if ultimately recognized, $ 2.4 million would be recognized as an income tax benefit and reduce the Company ’ s effective tax rate. As of January 3, 2021 , the Company had $ 0.2 million of accrued interest and no accrued penalties. There are currently no Internal Revenue Service audits in progress for the Company. The Company continues to be under examination by certain states. The Company ’ s Federal statute of limitation has expired for years prior to 2018, but it varies for state and foreign locations. The Company believes appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | (8) Employee Benefits The Company has a retirement savings plan which qualifies under Internal Revenue Code Section 401(k). All employees of the Company who have completed 1,000 hours of service and are at least 18 years of age are eligible to participate in the plan . The plan requires the Company to match 100 % of the first 5 % of each employee’s elective deferrals. The Company’s matching contributions were made in the form of cash and vested immediately. The expenses incurred for Company contributions to the plan were $ 12.9 million , $ 12.0 million and $ 10.8 million in 2021, 2020 and 2019, respectively. The Company has established a non-qualified deferred compensation plan available for certain key employees. Under this self-funding plan, the participants may defer up to 40 % of their base salary and up to 80 % of their bonus compensation. The participants direct the investment of their deferred compensation within several investment funds. The Company is not required to contribute and did not contribute to this plan during 2021, 2020 and 2019. The Company has an employee stock payroll deduction plan (the “ESPDP”). Under the ESPDP, eligible employees may deduct up to 15 % of their eligible wages to purchase common stock at 85 % of the market price of the stock at the purchase date. The ESPDP requires employees to hold their purchased common stock for at least one year. The Company purchases common stock on the open market for the ESPDP at the current market price. There were 16,382 shares, 16,017 shares and 20,222 shares of common stock in 2021, 2020 and 2019 , respectively, purchased on the open market for participating employees at a weighted-average price of $ 424.90 in 2021 , $ 357.54 in 2020 and $ 257.12 in 2019 . The expenses incurred under the ESPDP were $ 1.0 million, $ 1.0 million and $ 0.8 million in 2021, 2020 and 2019 , respectively. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | (9) Equity Incentive Plans The Company’s current equity incentive plan, named the Domino’s Pizza, Inc. 2004 Equity Incentive Plan (the “2004 Equity Incentive Plan”), benefits certain of the Company’s employees and members of the Company’s Board of Directors. As of January 2, 2022 , the maximum number of shares that may be granted under the 2004 Equity Incentive Plan is 15,600,000 shares of voting common stock of which 2,497,029 shares were authorized for grant but have not been granted. The cost of all employee stock options, as well as other equity-based compensation arrangements, is reflected in the consolidated statements of income based on the estimated fair value of the awards and is amortized over the requisite service period of each award. All non-cash compensation expense amounts are recorded in general and administrative expense. The Company accounts for forfeitures as they occur. The Company recorded total non-cash compensation expense of $ 28.7 million , $ 24.2 million and $ 20.3 million in 2021, 2020 and 2019 , respectively. The Company recorded a deferred tax benefit related to non-cash compensation expense of $ 4.3 million, $ 3.6 million and $ 3.8 million in 2021, 2020 and 2019, respectively. Stock Options As of January 2, 2022, the number of stock options granted and outstanding under the 2004 Equity Incentive Plan was 664,117 options. Stock options granted in fiscal 2012 were granted with an exercise price equal to the market price at the date of the grant, expire ten years from the date of grant and generally vested over three years from the date of grant. Stock options granted in fiscal 2013 through fiscal 2020 were granted with an exercise price equal to the market price at the date of the grant, expire ten years from the date of grant and generally vest over four years from the date of grant, generally subject to the holder’s continued employment. Stock options granted in fiscal 2021 were granted with an exercise price equal to the market price at the date of the grant, expire ten years from the date of grant and generally vest over three years from the date of grant, generally subject to the holder’s continued employment. Additionally, all stock options granted become fully exercisable upon vesting. These awards also contain provisions for accelerated vesting upon the retirement of holders that have achieved specific service and age requirements. Stock option activity related to the 2004 Equity Incentive Plan is summarized as follows: Common Stock Options Outstanding Weighted Weighted Aggregate (Years) (In thousands) Stock options at December 30, 2018 1,909,399 $ 72.86 Stock options granted 96,280 272.64 Stock options cancelled ( 33,667 ) 196.47 Stock options exercised ( 425,601 ) 30.70 Stock options at December 29, 2019 1,546,411 $ 94.21 Stock options granted 52,730 413.80 Stock options cancelled ( 9,792 ) 268.94 Stock options exercised ( 756,683 ) 40.93 Stock options at January 3, 2021 832,666 $ 160.82 Stock options granted 42,742 367.79 Stock options cancelled ( 11,990 ) 333.61 Stock options exercised ( 199,301 ) 98.76 Stock options at January 2, 2022 664,117 $ 189.64 5.1 $ 248,836 Exercisable at January 2, 2022 545,050 155.82 4.4 $ 222,656 The total intrinsic value of stock options exercised was $ 77.4 million, $ 249.7 million and $ 103.8 million in 2021, 2020 and 2019, respectively. Cash received from the exercise of stock options was $ 19.7 million , $ 31.0 million and $ 13.1 million in 2021, 2020 and 2019 , respectively. The tax benefit realized from stock options exercised was $ 17.6 million, $ 59.1 million and $ 24.9 million in 2021, 2020 and 2019, respectively. The Company recorded total non-cash equity-based compensation expense of $ 5.7 million, $ 6.3 million and $ 4.0 million in 2021, 2020 and 2019, respectively, related to stock option awards. As of January 2, 2022 , there was $ 5.3 million of total unrecognized compensation cost related to unvested stock options granted under the 2004 Equity Incentive Plan which generally will be recognized on a straight-line basis over the related vesting period. This unrecognized compensation cost is expected to be recognized over a weighted average period of 2.0 years. Management estimated the fair value of each option grant made during 2021, 2020 and 2019 as of the date of the grant using the Black-Scholes option pricing method. The risk-free interest rate is based on the estimated expected life and is estimated based on U.S. Treasury Bond rates as of the grant date. The expected life is based on several factors, including, among other things, the vesting term and contractual term as well as historical experience. The expected volatility is based principally on the historical volatility of the Company’s share price. Option valuation models require the input of highly subjective assumptions and changes in assumptions can significantly affect the estimated fair value of the Company ’ s stock options. The weighted average assumptions used in estimating the fair value of each stock option granted in 2021, 2020 and 2019 using the Black-Scholes option pricing method are presented in the following table: 2021 2020 2019 Risk-free interest rate 1.0 % 0.3 % 1.9 % Expected life 5.25 years 5.5 years 5.5 years Expected volatility 30.0 % 30.0 % 25.0 % Expected dividend yield 1.0 % 0.8 % 0.9 % Weighted average fair value per stock option $ 93.46 $ 105.76 $ 64.66 Other Equity-Based Compensation Arrangements The Company granted 3,292 shares, 3,630 shares and 3,780 shares of restricted stock in 2021, 2020 and 2019 , respectively, to members of its Board of Directors. Restricted stock awards granted to members of the Company’s Board of Directors were granted with a fair value equal to the market price of the Company’s common stock on the grant date and generally vest one year from the date of grant, generally subject to the director’s continued service. These awards also contain provisions for accelerated vesting upon the retirement eligibility of holders that have achieved specified service and age requirements. The Company recorded total non-cash equity-based compensation expense of $ 1.4 million, $ 1.2 million and $ 1.0 million in 2021, 2020 and 2019, respectively, related to these restricted stock awards. As of January 2, 2022 , there was $ 0.2 million of total unrecognized compensation cost related to these restricted stock grants. The Company granted 49,963 restricted stock units in 2021 to certain employees of the Company. These restricted stock units were granted with a fair value equal to the market price of the Company’s common stock on the grant date. These restricted stock units are separated into two or three tranches and have time-based vesting conditions with the last tranche of the award vesting three years from the grant date, generally subject to the holder’s continued employment. These awards generally also contain provisions for accelerated vesting upon the retirement eligibility of holders that have achieved specified service and age requirements. The Company recorded total non-cash equity-based compensation expense of $ 5.4 million in 2021 related to these restricted stock units. As of January 2, 2022 , there was $ 12.3 million of total unrecognized compensation cost related to these restricted stock units. The Company granted 6,546 performance-based restricted stock units in 2021 to certain employees of the Company. These restricted stock units were granted with a fair value equal to the market price of the Company’s common stock on the grant date, adjusted for the estimated fair value of the market condition included in the award. These performance-based restricted stock units may vest three years from the date of grant, generally subject to the holder’s continued employment, and have time and performance-based vesting conditions which provide for potential payouts of the target award amount between zero percent and two hundred percent, based on the Company’s three-year cumulative achievement as compared to the specified target performance conditions. The performance-based restricted stock units also include provisions for a potential modifier (upward or downward) based on the Company’s cumulative three-year common stock total shareholder return performance relative to that of a pre-established peer group. These awards also contain provisions for accelerated vesting of the time-based vesting condition upon the retirement eligibility of holders that have achieved specified service and age requirements. Management estimated the fair value of each performance-based restricted stock unit using a Monte-Carlo simulation pricing method. The risk-free interest rate is based on the estimated expected life and is estimated based on U.S. Treasury Bond rates as of the grant date. The Monte-Carlo simulation also includes assumptions for expected volatility based principally on the historical volatility of the Company’s share price, as well as the correlation of the Company’s share price as compared to that of the pre-established peer group. The Company recorded total non-cash equity-based compensation expense of $ 1.4 million in 2021 related to these performance-based restricted stock units. As of January 2, 2022 , there was $ 1.2 million of total estimated unrecognized compensation cost based on current attainment projections related to these performance-based restricted stock units. The weighted average assumptions used in estimating the fair value of each performance-based restricted stock unit granted in 2021 using the Monte-Carlo simulation pricing method are presented in the following table: 2021 Risk-free interest rate 0.3 % Expected life 2.75 years Expected volatility 33.9 % Weighted average fair value per performance-based restricted stock unit $ 375.85 The Company granted 39,150 shares and 63,790 shares of performance-based restricted stock in 2020 and 2019, respectively, to certain employees of the Company. These performance-based restricted stock awards are separated into four tranches and have time-based and performance-based vesting conditions with the last tranche vesting four years from the issuance date, generally subject to the holder ’ s continued employment. These awards also contain provisions for accelerated vesting upon the retirement of holders that have achieved specific service and age requirements. These awards are considered granted for accounting purposes when the performance target is established, which is generally in the fourth quarter of each year. The Company recorded total non-cash equity-based compensation expense of $ 12.7 million, $ 14.6 million and $ 13.2 million in 2021, 2020 and 2019, respectively, related to these awards. As of January 2, 2022 , there was an estimated $ 16.8 million of total unrecognized compensation cost related to performance-based restricted stock. In 2018, the Company granted 28,570 shares of restricted stock to two executives of the Company. These have a fair value equal to the market price of the Company’s common stock on the grant date and generally vest four years from the date of the grant, generally subject to the holder’s continued employment. These awards also contain provisions for accelerated vesting upon certain terminations of employment. The Company recorded total non-cash equity-based compensation expense of $ 2.1 million in each of 2021, 2020 and 2019 related to these restricted stock awards. As of January 2, 2022 , there was $ 0.6 million of total unrecognized compensation cost related to these restricted stock grants. Activity related to restricted stock awards and units and performance-based restricted stock awards and units awarded under the 2004 Equity Incentive Plan is summarized as follows: Shares Weighted Nonvested at December 30, 2018 190,379 $ 213.57 Shares granted 67,570 275.06 Shares cancelled ( 17,923 ) 230.60 Shares vested ( 68,956 ) 175.84 Nonvested at December 29, 2019 171,070 $ 251.29 Shares granted 42,780 398.08 Shares cancelled ( 8,345 ) 273.70 Shares vested ( 58,743 ) 221.58 Nonvested at January 3, 2021 146,762 $ 304.69 Shares granted 59,801 382.79 Shares cancelled ( 12,924 ) 340.94 Shares vested ( 48,378 ) 287.41 Nonvested at January 2, 2022 145,261 $ 339.37 (1) The weighted average grant date fair value for performance-based restricted stock awards granted in 2020 and 2019 was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
Capital Structure
Capital Structure | 12 Months Ended |
Jan. 02, 2022 | |
Text Block [Abstract] | |
Capital Structure | (10) Capital Structure On October 4, 2019, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $ 1.0 billion of the Company’s common stock. On February 24, 2021, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $ 1.0 billion of the Company’s common stock, which was fully utilized in connection with the ASR Agreement, described below. On July 20, 2021, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $ 1.0 billion of the Company's common stock, which replaced the previously approved and fully utilized $ 1.0 billion share repurchase program. As of January 2, 2022, the Company had $ 704.1 million remaining under its $ 1.0 billion authorization for repurchases of shares of the Company’s common stock. The Company’s share repurchase programs have historically been funded by excess operating cash flows, excess proceeds from the Company’s recapitalization transactions and borrowings under the Company’s variable funding notes. The Company’s policy is to recognize the difference between the purchase price and par value of the common stock in additional paid-in capital. In instances where there is no additional paid-in capital, the difference is recognized in retained deficit. During 2021, 2020 and 2019, the Company repurchased 2,912,558 shares, 838,871 shares and 2,493,560 shares of the Company’s common stock for $ 1.32 billion , $ 304.6 million and $ 699.0 million , respectively. On April 30, 2021, the Company entered into a $ 1.0 billion accelerated share repurchase agreement (the “ASR Agreement”) with a counterparty. Pursuant to the terms of the ASR Agreement, on May 3, 2021, the Company used a portion of the proceeds from the 2021 Recapitalization to pay the counterparty $ 1.0 billion in cash and received and retired 2,012,596 shares of its common stock. Final settlement of the ASR Agreement occurred on July 21, 2021. In connection with the ASR Agreement, the Company received and retired a total of 2,250,786 shares of its common stock at an average price of $ 444.29 . Subsequent to the end of fiscal 2021 , the Company repurchased and retired an additional 100,810 shares of common stock for $ 47.7 million. As of January 2, 2022 , authorized common stock consists of 160,000,000 voting shares and 10,000,000 non-voting shares. The share components of outstanding common stock at January 2, 2022 and January 3, 2021 were as follows: January 2, January 3, Voting 36,135,081 38,865,160 Non-Voting 3,192 3,190 Total Common Stock 36,138,273 38,868,350 |
Segment Information
Segment Information | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise. The Company’s operations are organized by management on the combined basis of line of business and geography. The U.S. stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the U.S. and Canada. Over 90 % of the Company's supply chain revenues are attributable to the U.S. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income. The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2021, 2020 and 2019. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements for the Company's corporate offices. U.S. Supply International Intersegment Other Total Revenues- 2021 $ 1,498,360 $ 2,699,863 $ 298,036 $ ( 138,886 ) $ — $ 4,357,373 2020 1,451,003 2,552,795 249,757 ( 136,144 ) — 4,117,411 2019 1,272,863 2,231,838 240,975 ( 126,902 ) — 3,618,774 Segment Income- 2021 $ 454,875 $ 229,877 $ 241,873 N/A $ ( 42,926 ) $ 883,699 2020 435,089 238,420 197,602 N/A ( 53,265 ) 817,846 2019 361,673 199,844 187,318 N/A ( 36,701 ) 712,134 Capital Expenditures- 2021 $ 13,680 $ 37,063 $ — N/A $ 44,894 $ 95,637 2020 15,319 36,229 — N/A 35,371 86,919 2019 11,793 33,440 131 N/A 43,304 88,668 The following table reconciles total Segment Income to income before provision for income taxes: 2021 2020 2019 Total Segment Income $ 883,699 $ 817,846 $ 712,134 Depreciation and amortization ( 72,923 ) ( 65,038 ) ( 59,930 ) Loss on sale/disposal of assets ( 1,189 ) ( 2,922 ) ( 2,023 ) Non-cash equity-based compensation expense ( 28,670 ) ( 24,244 ) ( 20,265 ) Recapitalization-related expenses ( 509 ) — ( 509 ) Income from operations 780,408 725,642 629,407 Other income 36,758 — — Interest income 345 1,654 4,048 Interest expense ( 191,806 ) ( 172,166 ) ( 150,818 ) Income before provision for income taxes $ 625,705 $ 555,130 $ 482,637 The following table summarizes the Company’s identifiable asset information by reportable segment as of January 2, 2022 and January 3, 2021: January 2, January 3, U.S. stores $ 340,984 $ 308,088 Supply chain 558,251 520,043 International franchise 41,279 41,408 Unallocated 731,302 697,629 Total assets $ 1,671,816 $ 1,567,168 Unallocated assets primarily include cash and cash equivalents, restricted cash and cash equivalents, certain accounts receivable and prepaid expenses, investments in equity securities without readily determinable fair values and marketable securities, certain long-lived assets including certain property, plant and equipment, capitalized software and the operating lease right-of-use asset for the Company’s corporate headquarters and deferred income taxes. Over 95 % of the Company's long-lived assets including property, plant and equipment, capitalized software and operating lease right-of-use assets are located in the U.S. The following table summarizes the Company’s goodwill balance by reportable segment as of January 2, 2022 and January 3, 2021 (in thousands): January 2, January 3, U.S. stores $ 13,967 $ 13,994 Supply chain 1,067 1,067 Consolidated goodwill $ 15,034 $ 15,061 |
Company-owned Store Transaction
Company-owned Store Transactions | 12 Months Ended |
Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Company-owned Store Transactions | (12) Company-owned Store Transactions During 2019, the Company sold 62 U.S. Company-owned stores to certain of its existing U.S. franchisees for proceeds of $ 12.3 million. In connection with the sale of the stores, the Company recorded a $ 0.3 million pre-tax loss on the sale of the related assets and liabilities, which was net of a $ 1.5 million reduction in goodwill. The net loss on these store sales was recorded in general and administrative expense in the Company’s consolidated statements of income. During 2019, the Company also purchased three U.S. franchised stores from a U.S. franchisee for $ 3.4 million, which included $ 1.7 million of goodwill, $ 1.3 million of intangibles and $ 0.4 million of leasehold improvements and other assets. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended |
Jan. 02, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Domino’s Pizza, Inc. PARENT COMPANY CONDENSED BALANCE SHEETS (In thousands, except share and per share amounts) January 2, January 3, 2022 2021 ASSETS ASSETS: Cash $ 6 $ 6 Total assets $ 6 $ 6 LIABILITIES AND STOCKHOLDERS’ DEFICIT LIABILITIES: Equity in net deficit of subsidiaries $ 4,209,536 $ 3,300,405 Due to subsidiary 6 6 Total liabilities 4,209,542 3,300,411 STOCKHOLDERS’ DEFICIT: Common stock, par value $ 0.01 per share; 170,000,000 shares authorized; 36,138,273 in 2021 and 38,868,350 in 2020 issued and outstanding 361 389 Preferred stock, par value $ 0.01 per share; 5,000,000 shares authorized, no ne issued — — Additional paid-in capital 840 5,122 Retained deficit ( 4,207,917 ) ( 3,303,492 ) Accumulated other comprehensive loss ( 2,820 ) ( 2,424 ) Total stockholders’ deficit ( 4,209,536 ) ( 3,300,405 ) Total liabilities and stockholders’ deficit $ 6 $ 6 See accompanying notes to the Schedule I. Domino’s Pizza, Inc. PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In thousands, except share and per share amounts) For the Years Ended January 2, January 3, December 29, 2022 2021 2019 REVENUES $ — $ — $ — Total revenues — — — OPERATING EXPENSES — — — Total operating expenses — — — INCOME FROM OPERATIONS — — — Equity earnings in subsidiaries 510,467 491,296 400,709 INCOME BEFORE PROVISION FOR INCOME TAXES 510,467 491,296 400,709 PROVISION FOR INCOME TAXES — — — NET INCOME $ 510,467 $ 491,296 $ 400,709 COMPREHENSIVE INCOME $ 510,071 $ 492,614 $ 401,396 EARNINGS PER SHARE: Common Stock – basic $ 13.72 $ 12.61 $ 9.83 Common Stock – diluted $ 13.54 $ 12.39 $ 9.56 See accompanying notes to the Schedule I. Domino’s Pizza, Inc. PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS (In thousands) For the Years Ended January 2, January 3, December 29, 2022 2021 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 538,741 $ 402,348 $ 421,661 CASH FLOWS FROM INVESTING ACTIVITIES: Dividends from subsidiaries 908,698 — 375,948 Net cash provided by investing activities 908,698 — 375,948 CASH FLOWS FROM FINANCING ACTIVITIES: Payments of common stock dividends and equivalents ( 139,399 ) ( 121,925 ) ( 105,715 ) Purchases of common stock ( 1,320,902 ) ( 304,590 ) ( 699,007 ) Other 12,862 24,167 7,113 Net cash used in financing activities ( 1,447,439 ) ( 402,348 ) ( 797,609 ) CHANGE IN CASH — — — CASH, AT BEGINNING OF PERIOD 6 6 6 CASH, AT END OF PERIOD $ 6 $ 6 $ 6 (1) Introduction and Basis of Presentation Domino’s Pizza, Inc., on a stand-alone basis, (the “Parent Company”) has accounted for majority-owned subsidiaries using the equity method of accounting. The accompanying condensed financial statements of the Parent Company should be read in conjunction with the consolidated financial statements of Domino’s Pizza, Inc. and its subsidiaries (the “Company”) and the notes thereto included in Item 8 of this Form 10-K. These financial statements have been provided to comply with Rule 4-08(e) of Regulation S-X. Use of Estimates The use of estimates is inherent in the preparation of financial statements in accordance with generally accepted accounting principles. Actual results could differ from those estimates. New Accounting Pronouncements The Company has adopted the below new accounting pronouncements that impacted the Parent Company financial statements. Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 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. On December 30, 2019, the Company adopted ASC 326 using the modified retrospective method. The Parent Company recorded a $ 1.1 million adjustment to equity in net deficit of subsidiaries and recorded a $ 1.1 million adjustment to retained deficit related to this new accounting standard in 2020. See Note 1 to the Company’s consolidated financial statements as filed in this Form 10-K for additional information related to the adoption of this new accounting standard. (2) Supplemental Disclosures of Cash Flow Information During 2021, 2020 and 2019 , the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to pay dividends and repurchase common stock in connection with the Company’s recapitalization transactions. See Note 3 to the Company’s consolidated financial statements as filed in this Form 10-K for a description of these recapitalization transactions. In 2021 and 2019, the amount of dividends received was in excess of current year equity in earnings from its subsidiaries, and thus a portion of these dividends was considered to be a return of investment and is classified as a cash inflow from investing activities. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Domino’s Pizza, Inc. (“DPI”), a Delaware corporation, conducts its operations and derives substantially all of its operating income and cash flows through its wholly-owned subsidiary, Domino’s, Inc. (“Domino’s”) and Domino’s wholly-owned subsidiary, Domino’s Pizza LLC (“DPLLC”). DPI and its wholly-owned subsidiaries (collectively, “the Company”) are primarily engaged in the following business activities: (i) retail sales of food through Company-owned Domino’s Pizza stores; (ii) sales of food, equipment and supplies to Company-owned and franchised Domino’s Pizza stores through Company-owned supply chain centers; (iii) receipt of royalties, advertising contributions and fees from U.S. Domino’s Pizza franchisees; and (iv) receipt of royalties and fees from international Domino’s Pizza franchisees. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of DPI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company ’ s fiscal year ends on the Sunday closest to December 31. The 2021 fiscal year ended on January 2, 2022, the 2020 fiscal year ended on January 3, 2021 and the 2019 fiscal year ended on December 29, 2019. The 2021 and 2019 fiscal years each consisted of fifty-two weeks and the 2020 fiscal year consisted of fifty-three weeks |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. These investments are carried at cost, which approximates fair value. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents at January 2, 2022 included $ 133.2 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of the Company’s asset-backed securitization structure, $ 47.2 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.2 million of other restricted cash. As of January 2, 2022, the Company also held $ 161.7 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. Restricted cash and cash equivalents at January 3, 2021 included $ 177.1 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of the Company’s asset-backed securitization structure, $ 39.6 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.8 million of other restricted cash. As of January 3, 2021, the Company also held $ 115.9 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. |
Allowances for Credit Losses | Allowances for Credit Losses The Company closely monitors accounts and notes receivable balances and estimates the allowance for credit losses. These estimates are based on historical collection experience and other factors, including those related to current market conditions and events. The Company’s allowances for accounts and notes receivable have not historically been material. The Company also monitors its off-balance sheet exposures under its letters of credit (Note 3), lease guarantees (Note 5) and surety bonds. Total conditional commitments under surety bonds were $ 15.3 million and $ 11.0 million as of January 2, 2022 and January 3, 2021 , respectively. None of these arrangements has had or is likely to have a material effect on the Company’s results of operations, financial condition, revenues, expenses or liquidity. |
Inventories | Inventories Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventories at January 2, 2022 and January 3, 2021 were comprised of the following: January 2, January 3, Food $ 61,994 $ 57,116 Equipment and supplies 6,334 9,567 Inventories $ 68,328 $ 66,683 |
Other Assets | Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, taxes, deposits, notes receivable, software licenses, implementation costs for cloud-based computing arrangements, covenants not-to-compete and other intangible assets primarily arising from franchise acquisitions. Other long-term assets included implementation costs for cloud-based computing arrangements (primarily related to certain enterprise systems) of $ 10.6 million and $ 8.4 million, net of accumulated amortization of $ 1.7 million and $ 0.4 million as of January 2, 2022 and January 3, 2021 , respectively. Amortization expense for implementation costs for cloud-based computing arrangements was $ 1.3 million and $ 0.4 million in 2021 and 2020, respectively. Amortization expense for implementation costs for cloud-based computing arrangements in 2019 was no t material. |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows (in years): Buildings 20 Leasehold and other improvements 5 – 15 Equipment 3 – 15 Depreciation and amortization expense on property, plant and equipment was $ 48.6 million , $ 42.0 million and $ 37.1 million in 2021, 2020 and 2019 , respectively. |
Impairments of Long-Lived Assets | Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including, on an annual basis, the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the Company determines that the carrying amount of an asset (or asset group) may not be recoverable, the Company compares the net carrying value of the asset group to the undiscounted net cash flows to be generated from the use and eventual disposition of that asset group. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized, and the asset is written down to its estimated fair value. There were no triggering events in 2021, 2020 and 2019 and accordingly, the Company did not record any impairment losses on long-lived assets in 2021, 2020 and 2019 . |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plan (Note 8). These investments are stated at aggregate fair value, are restricted and have been placed in a rabbi trust whereby the amounts are irrevocably set aside to fund the Company’s obligations under the deferred compensation plan. The Company classifies and accounts for these investments in marketable securities as trading securities. |
Goodwill | Goodwill The Company’s goodwill amounts primarily relate to franchise store acquisitions. The Company performs its required impairment tests in the fourth quarter of each fiscal year and did not recognize any goodwill impairment charges in 2021, 2020 and 2019 . |
Capitalized Software | Capitalized Software Capitalized software is recorded at cost and includes purchased, internally-developed and externally-developed software used in the Company’s operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Capitalized software amortization expense was $ 24.3 million , $ 23.0 million and $ 22.8 million in 2021, 2020 and 2019, respectively. As of January 2, 2022, scheduled amortization for capitalized software that has been placed in service as of January 2, 2022 is as follows in the table below. As of January 2, 2022 , the Company also had $ 61.0 million of capitalized software that had not yet been placed in service. 2022 $ 19,059 2023 10,075 2024 3,522 2025 1,158 2026 768 Thereafter — $ 34,582 |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are recorded as a reduction to the Company’s debt balance and primarily include the expenses incurred by the Company as part of the 2021, 2019, 2018, 2017 and 2015 Recapitalizations. Refer to Note 3 for a description of the 2021, 2019, 2018, 2017 and 2015 Recapitalizations. Amortization is recorded on a straight-line basis (which is materially consistent with the effective interest method) over the expected terms of the respective debt instrument to which the costs relate and is included in interest expense. Debt issuance cost amortization expense was $ 7.5 million , $ 5.5 million and $ 4.7 million in 2021, 2020 and 2019 , respectively. |
Insurance Reserves | Insurance Reserves The Company has retention programs for workers’ compensation, general liability and owned and non-owned automobile liabilities for certain periods prior to December 1998 and for periods after December 2001. The Company is generally responsible for up to $ 2.0 million per occurrence under these retention programs for workers’ compensation and general liability exposures. The Company is also generally responsible for between $ 500,000 and $ 5.5 million per occurrence under these retention programs for owned and non-owned automobile liabilities depending on the year. Total insurance limits under these retention programs vary depending on the year covered and range up to $ 110.0 million per occurrence for general liability and owned and non-owned automobile liabilities and up to the applicable statutory limits for workers’ compensation. Casualty insurance reserves relating to the Company's retention programs are based on undiscounted actuarial estimates. These estimates are based on historical information and on certain assumptions about future events. Changes in assumptions for such factors as medical costs and legal actions, as well as changes in actual experience, could cause these estimates to change in the near term. The Company generally receives estimates of outstanding casualty insurance exposures from its independent actuary twice per year and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. The Company had reserves for these programs of $ 56.5 million and $ 54.6 million as of January 2, 2022 and January 3, 2021, respectively. In addition, the Company maintains reserves for its share of employee health costs as part of the health care benefits offered to its employees. Reserves are based on estimated claims incurred that have not yet been paid, based on historical claims and payment lag times. |
Contract Liabilities | Contract Liabilities Contract liabilities consist primarily of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 5.4 million and $ 4.1 million were included in current other accrued liabilities as of January 2, 2022 and January 3, 2021 , respectively. Deferred franchise fees and deferred development fees of $ 24.3 million and $ 15.0 million were included in long-term other accrued liabilities as of January 2, 2022 and January 3, 2021, respectively. Changes in deferred franchise fees and deferred development fees in 2021 and 2020 were as follows: Fiscal Year Ended January 2, January 3, Deferred franchise fees and deferred development fees, beginning of period $ 19,090 $ 20,463 Revenue recognized during the period ( 5,845 ) ( 6,205 ) New deferrals due to cash received and other 16,449 4,832 Deferred franchise fees and deferred development fees, end of period $ 29,694 $ 19,090 The Company expects to recognize revenue associated with deferred franchise fees and deferred development fees as follows in the table below. The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations. 2022 $ 5,403 2023 5,162 2024 4,855 2025 4,406 2026 4,003 Thereafter 5,865 $ 29,694 |
Other Accrued Liabilities | Other Accrued Liabilities Current and long-term other accrued liabilities primarily include accruals for income, sales, property and other taxes, legal reserves, store operating expenses, dividends payable, deferred compensation and contract liabilities. |
Foreign Currency Translation | Foreign Currency Translation The Company ’ s foreign entities use their local currency as the functional currency. For these entities, the Company translates net assets into U.S. dollars at year end exchange rates, while income and expense accounts are translated at average annual exchange rates. Currency translation adjustments are included in accumulated other comprehensive income (loss) and foreign currency transaction gains and losses are included in determining net income. |
Revenue Recognition | Revenue Recognition U.S. Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the U.S. and are recognized when the items are delivered to or carried out by customers. Customer payments are generally due at the time of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate taxing authority and are not reflected in the Company’s consolidated statements of income as revenue. U.S. franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the U.S. Each franchisee is generally required to pay a 5.5 % royalty fee on sales. In certain instances, the Company will collect lower rates based on area development agreements, sales initiatives, store relocation incentives and new store incentives. Royalty revenues are based on a percentage of franchise retail sales and are recognized when the items are delivered to or carried out by franchisees’ customers. U.S. franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur. Payments for U.S. royalties and fees are generally due within seven days of the prior week end date. Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the U.S. and Canada. Revenues from the sale of food are recognized upon delivery of the food to franchisees and payments for food purchases are generally due within 30 days of the shipping date. Revenues from the sale of equipment and supplies are recognized upon delivery or shipment of the related products to franchisees, based on shipping terms, and payments for equipment and supplies are generally due within 90 days of the shipping date. The Company also offers profit sharing rebates and volume discounts to its franchisees. Obligations for profit sharing rebates are calculated based on actual results of its supply chain centers and are recognized as a reduction to revenue. Volume discounts are based on annual sales. The Company estimates the amount that will be earned and records a reduction to revenue throughout the year. International franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside of the U.S. Royalty revenues are recognized when the items are delivered to or carried out by franchisees’ customers. Store opening fees received from international franchisees are recognized as revenue on a straight-line basis over the term of each respective franchise store agreement, which is typically ten years. Development fees received from international master franchisees are also deferred when amounts are received and are recognized as revenue on a straight-line basis over the term of the respective master franchise agreement, which is typically ten years. International franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur. International franchise royalties and fees are invoiced at least quarterly and payments are generally due within 60 days. U.S. franchise advertising revenues are comprised of contributions from Domino’s Pizza franchisees with operations in the U.S. to the Domino’s National Advertising Fund Inc. (“DNAF”), the Company’s consolidated not-for-profit subsidiary that administers the Domino’s Pizza system’s national and market level advertising activities in the U.S. Each franchisee is generally required to contribute 6 % of their retail sales to fund national marketing and advertising campaigns (subject, in certain instances, to lower rates based on certain incentives and waivers). These revenues are recognized when items are delivered to or carried out by franchisees’ customers. Payments for U.S. franchise advertising revenues are generally due within seven days of the prior week end date. Although these revenues are restricted to be used only for advertising and promotional activities to benefit franchised stores, the Company has determined there are not performance obligations associated with the franchise advertising contributions received by DNAF that are separate from its U.S. royalty payment stream and as a result, these franchise contributions and the related expenses are presented gross in the Company’s consolidated statements of income. Disaggregation of Revenue Current accounting standards require that companies disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company has included its revenues disaggregated in its consolidated statements of income to satisfy this requirement. |
Supply Chain Profit-Sharing Arrangements | Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with U.S. and Canadian franchisees that purchase all of their food from the Company’s supply chain centers. These profit-sharing arrangements generally offer Company-owned stores and participating franchisees 50 % (or a higher percentage in the case of Company-owned stores and certain franchisees who operate a larger number of stores) of the pre-tax profit from the Company’s supply chain center operations. Profit-sharing obligations are recorded as a reduction to supply chain revenues in the same period as the related revenues and costs are recorded, and were $ 148.3 million , $ 169.0 million and $ 143.5 million in 2021, 2020 and 2019 , respectively. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of U.S. Company-owned store and supply chain costs incurred to generate related revenues. Components of consolidated cost of sales primarily include food, labor, delivery, occupancy costs (including rent, telephone, utilities and depreciation) and insurance expense . |
General and Administrative | General and Administrative General and administrative expense consists primarily of labor cost (including variable performance-based compensation expense and non-cash equity-based compensation expense), depreciation and amortization, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. |
Advertising | Advertising U.S. stores are generally required to contribute 6% of sales to DNAF. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized, as DNAF is obligated to expend such revenues on advertising and other activities to promote the Domino’s brand. U.S. franchise advertising costs expended by DNAF are included in U.S. franchise advertising expenses in the Company’s consolidated statements of income. Advertising costs funded by Company-owned stores are generally expensed as incurred and are included in general and administrative expense. Contributions from Company-owned stores that have not yet been expended are included in advertising fund assets, restricted on the Company’s consolidated balance sheet. Advertising expense included $ 479.5 million , $ 462.2 million and $ 390.8 million of U.S. franchise advertising expense in 2021, 2020 and 2019, respectively. Advertising expense also included $ 42.1 million , $ 35.7 million and $ 37.6 million in 2021, 2020 and 2019, respectively, primarily related to advertising costs funded by U.S. Company-owned stores and other general marketing expenses which are included in general and administrative expense in the consolidated statements of income. As of January 2, 2022, advertising fund assets, restricted of $ 180.9 million consisted of $ 161.7 million of cash and cash equivalents, $ 14.5 million of accounts receivable and $ 4.7 million of prepaid expenses. As of January 2, 2022, advertising fund cash and cash equivalents included $ 7.2 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 3, 2021, advertising fund assets, restricted of $ 147.7 million consisted of $ 115.9 million of cash and cash equivalents, $ 27.0 million of accounts receivable and $ 4.8 million of prepaid expenses. As of January 3, 2021, advertising fund cash and cash equivalents included $ 6.5 million of cash contributed from U.S. Company-owned stores that had not yet been expended. |
Leases | Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use assets and operating lease liabilities in the Company’s consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Company’s consolidated balance sheet. Right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. |
Common Stock Dividends | Common Stock Dividends The Company declared dividends of $ 139.6 million (or $ 3.76 per share) in 2021, $ 122.2 million (or $ 3.12 per share) in 2020 and $ 105.6 million (or $ 2.60 per share) in 2019 . The Company paid dividends of $ 139.4 million, $ 121.9 million, and $ 105.7 million in 2021, 2020 and 2019, respectively. On February 24, 2022, the Company’s Board of Directors declared a quarterly dividend of $ 1.10 per common share payable on March 30, 2022 to shareholders of record at the close of business on March 15, 2022. |
Stock Options and Other Equity-Based Compensation Arrangements | Stock Options and Other Equity-Based Compensation Arrangements The cost of all of the Company’s stock options, as well as other equity-based compensation arrangements, is reflected in the financial statements based on the estimated fair value of the awards (Note 9). |
Earnings Per Share | Earnings Per Share The Company discloses two calculations of earnings per share (“EPS”): basic EPS and diluted EPS (Note 2). The numerator in calculating common stock basic and diluted EPS is consolidated net income. The denominator in calculating common stock basic EPS is the weighted average shares outstanding. The denominator in calculating common stock diluted EPS includes the additional dilutive effect of outstanding stock options, unvested restricted stock grants and unvested performance-based restricted stock grants. |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The Company paid interest of $ 174.6 million, $ 160.6 million and $ 142.3 million during 2021, 2020 and 2019 , respectively, on its Notes (Note 3). Cash paid for income taxes was $ 106.3 million, $ 60.4 million and $ 80.3 million in 2021, 2020 and 2019, respectively. The Company had $ 5.4 million , $ 4.3 million and $ 6.9 million of non-cash investing activities related to accruals for capital expenditures at January 2, 2022, January 3, 2021 and December 29, 2019 , respectively. The Company also had $ 0.4 million, $ 0.7 million and $ 0.0 million of non-cash investing activities related to lease incentives in 2021, 2020 and 2019 respectively. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards Accounting Standards Update (“ASU”) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes (Topic 740) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) , which simplifies the accounting for income taxes. ASU 2019-12 was effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company adopted this accounting standard in the first quarter of 2021, and it did not have a material impact on its consolidated financial statements. Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 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. The Company adopted this standard as of December 30, 2019, the first day of its 2020 fiscal year, using the modified retrospective approach and it did not have a material impact on its consolidated financial statements. The Company recognized the cumulative effect of initially applying ASC 326 as an adjustment to the opening balance of retained deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. An adjustment to beginning retained deficit and a corresponding adjustment to the allowance for doubtful accounts and notes receivable of $ 1.5 million was recorded on the date of adoption, representing the remeasurement of these accounts to the Company’s estimate for current expected credit losses. The adjustment to beginning retained deficit was also net of a $ 0.4 million adjustment to deferred income taxes. Accounting Standards Not Yet Adopted The Company has considered all new accounting pronouncements issued by the FASB. The Company has not yet completed its assessment of the following standard. ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. Subsequent to the closing of the 2021 Recapitalization, the Company’s 2021 Variable Funding Notes bear interest at fluctuating interest rates based on LIBOR. However, the associated loan documents contemplate a transition from LIBOR to secured overnight financing rate (“SOFR”) in the event that LIBOR ceases to exist. If the Company further needs to renegotiate its loan documents, the Company cannot predict what alternative index would be negotiated with its lenders. ASU 2020-04 may currently be adopted and may be applied prospectively to contract modifications made on or before December 31, 2022. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Inventories | Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventories at January 2, 2022 and January 3, 2021 were comprised of the following: January 2, January 3, Food $ 61,994 $ 57,116 Equipment and supplies 6,334 9,567 Inventories $ 68,328 $ 66,683 |
Estimated Useful Lives of Property, Plant And Equipment Excluding Capital Lease Asset | Estimated useful lives are generally as follows (in years): Buildings 20 Leasehold and other improvements 5 – 15 Equipment 3 – 15 |
Schedule of Amortization of Capitalized Software | As of January 2, 2022, scheduled amortization for capitalized software that has been placed in service as of January 2, 2022 is as follows in the table below. As of January 2, 2022 , the Company also had $ 61.0 million of capitalized software that had not yet been placed in service. 2022 $ 19,059 2023 10,075 2024 3,522 2025 1,158 2026 768 Thereafter — $ 34,582 |
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees | Changes in deferred franchise fees and deferred development fees in 2021 and 2020 were as follows: Fiscal Year Ended January 2, January 3, Deferred franchise fees and deferred development fees, beginning of period $ 19,090 $ 20,463 Revenue recognized during the period ( 5,845 ) ( 6,205 ) New deferrals due to cash received and other 16,449 4,832 Deferred franchise fees and deferred development fees, end of period $ 29,694 $ 19,090 |
Schedule of Revenue Recognition Associated with Deferred Franchise Fees and Deferred Development Fees | The Company expects to recognize revenue associated with deferred franchise fees and deferred development fees as follows in the table below. The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations. 2022 $ 5,403 2023 5,162 2024 4,855 2025 4,406 2026 4,003 Thereafter 5,865 $ 29,694 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Summary of the Computation of Basic and Diluted Earning Per Common Share | The computation of basic and diluted earnings per common share for 2021, 2020 and 2019 is as follows: 2021 2020 2019 Net income available to common stockholders – basic and diluted $ 510,467 $ 491,296 $ 400,709 Weighted average number of common shares 37,198,292 38,974,037 40,766,362 Earnings per common share – basic $ 13.72 $ 12.61 $ 9.83 Diluted weighted average number of common shares 37,691,351 39,640,791 41,923,062 Earnings per common share – diluted $ 13.54 $ 12.39 $ 9.56 |
Schedule of Denominators Used in Calculating Earning Per Common Share | The denominators used in calculating diluted earnings per share for common stock for 2021, 2020 and 2019 do not include the following because the effect of including these shares would be anti-dilutive or because the performance targets for these awards had not yet been met: 2021 2020 2019 Anti-dilutive shares underlying stock-based awards Stock options 41,215 52,330 160,980 Restricted stock awards and units 1,010 — — Performance condition not met Restricted stock awards and units 29,704 68,159 82,647 |
Recapitalizations and Financi_2
Recapitalizations and Financing Arrangements (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Consolidated Long-Term Debt | At January 2, 2022 and January 3, 2021, consolidated long-term debt consisted of the following: January 2, January 3, 2015 Ten-Year Notes $ 760,000 $ 766,000 2017 Five-Year Fixed Rate Notes — 582,000 2017 Ten-Year Fixed Rate Notes 962,500 970,000 2017 Floating Rate Notes — 291,000 2018 7.5-Year Notes 412,250 415,438 2018 9.25-Year Notes 388,000 391,000 2019 Ten-Year Notes 663,188 668,250 2021 7.5-Year Notes 845,750 — 2021 Ten-Year Notes 995,000 — Finance lease obligations 76,338 60,555 Debt issuance costs, net of accumulated amortization ( 32,800 ) ( 25,370 ) Total debt 5,070,226 4,118,873 Less – current portion ( 55,588 ) ( 2,855 ) Consolidated long-term debt, net of debt issuance costs $ 5,014,638 $ 4,116,018 |
Maturities of Long-Term Debt and Capital Lease Obligations | At January 2, 2022, maturities of long-term debt and finance lease obligations were as follows: 2022 $ 55,588 2023 55,438 2024 55,816 2025 1,178,971 2026 43,979 Thereafter 3,713,234 $ 5,103,026 |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the Notes as follows: January 2, 2022 January 3, 2021 Principal Fair Value Principal Fair Value 2015 Ten-Year Notes $ 760,000 $ 777,480 $ 766,000 $ 809,662 2017 Five-Year Fixed Rate Notes — — 582,000 582,582 2017 Ten-Year Fixed Rate Notes 962,500 1,000,038 970,000 1,035,960 2017 Floating Rate Notes — — 291,000 291,000 2018 7.5-Year Notes 412,250 420,907 415,438 437,456 2018 9.25-Year Notes 388,000 407,788 391,000 422,280 2019 Ten-Year Notes 663,188 693,031 668,250 712,355 2021 7.5-Year Notes 845,750 849,133 — — 2021 Ten-Year Notes 995,000 1,017,885 — — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | The following table summarizes the carrying amounts and fair values of certain assets at January 2, 2022: At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840 The following table summarizes the carrying amounts and fair values of certain assets at January 3, 2021: At January 3, 2021 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 151,502 $ 151,502 $ — $ — Restricted cash equivalents 126,595 126,595 — — Investments in marketable securities 13,251 13,251 — — Advertising fund cash equivalents, restricted 104,197 104,197 — — Investments 40,000 — — 40,000 |
Summary of Reconciliation of the Carrying Amount of the Company's Investment in Dash Brands | The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at January 2, 2022. Fiscal 2021 Carrying Amount Carrying Amount January 3, Unrealized January 2, 2021 Purchases Gain 2022 Investments $ 40,000 $ 49,082 $ 36,758 $ 125,840 The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at December 29, 2019 to the closing balance at January 3, 2021 . Fiscal 2020 Carrying Amount Carrying Amount December 29, Unrealized January 3, 2019 Purchases Gain 2021 Investments $ — $ 40,000 $ — $ 40,000 |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the Notes as follows: January 2, 2022 January 3, 2021 Principal Fair Value Principal Fair Value 2015 Ten-Year Notes $ 760,000 $ 777,480 $ 766,000 $ 809,662 2017 Five-Year Fixed Rate Notes — — 582,000 582,582 2017 Ten-Year Fixed Rate Notes 962,500 1,000,038 970,000 1,035,960 2017 Floating Rate Notes — — 291,000 291,000 2018 7.5-Year Notes 412,250 420,907 415,438 437,456 2018 9.25-Year Notes 388,000 407,788 391,000 422,280 2019 Ten-Year Notes 663,188 693,031 668,250 712,355 2021 7.5-Year Notes 845,750 849,133 — — 2021 Ten-Year Notes 995,000 1,017,885 — — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for 2021, 2020 and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 44,913 $ 44,679 $ 42,903 Finance lease cost: Amortization of right-of-use assets 4,373 2,186 1,167 Interest on lease liabilities 4,233 3,340 1,952 Total finance lease cost $ 8,606 $ 5,526 $ 3,119 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s leases as of January 2, 2022 and January 3, 2021 was as follows: January 2, January 3, Land and buildings $ 86,965 $ 68,084 Accumulated depreciation and amortization ( 14,423 ) ( 10,049 ) Finance lease assets, net $ 72,542 $ 58,035 Current portion of long-term debt $ 4,088 $ 2,855 Long -term debt, less current portion 72,250 57,700 Total principal payable on finance leases $ 76,338 $ 60,555 As of January 2, 2022 and January 3, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: 2021 2020 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 15 years 7 years 16 years Weighted average discount rate 3.5 % 5.8 % 3.7 % 6.8 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for 2021, 2020 and 2019 was as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 44,176 $ 43,679 $ 43,608 Operating cash flows from finance leases 4,233 3,340 1,952 Financing cash flows from finance leases 3,212 2,058 647 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 29,549 37,375 63,685 Finance leases 18,991 42,894 3,255 |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of January 2, 2022 were as follows: Operating Finance Leases Leases 2022 $ 45,347 $ 8,084 2023 39,057 7,536 2024 38,027 8,115 2025 32,417 7,935 2026 29,280 8,633 Thereafter 65,645 78,071 Total future minimum rental commitments 249,773 118,374 Less – amounts representing interest ( 28,147 ) ( 42,036 ) Total lease liabilities $ 221,626 $ 76,338 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Before Provision for Income Taxes | Income before provision for income taxes in 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 U.S. $ 611,267 $ 541,646 $ 468,467 Foreign 14,438 13,484 14,170 Income before provision for income taxes $ 625,705 $ 555,130 $ 482,637 |
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes | The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21 %) and the Company’s consolidated provision for income taxes for 2021, 2020 and 2019 are summarized as follows: 2021 2020 2019 Federal income tax provision based on the statutory rate $ 131,398 $ 116,577 $ 101,354 State and local income taxes, net of related Federal income taxes 15,108 16,660 15,141 Non-resident withholding and foreign income taxes 21,833 18,741 20,351 Foreign tax and other tax credits ( 23,509 ) ( 19,506 ) ( 20,090 ) Foreign derived intangible income ( 16,800 ) ( 12,390 ) ( 12,810 ) Excess tax benefits from equity-based compensation ( 18,911 ) ( 60,364 ) ( 25,735 ) Non-deductible expenses, net 4,501 4,359 3,090 Unrecognized tax provision, net of related Federal income taxes 4,372 516 694 Other ( 2,754 ) ( 759 ) ( 67 ) Provision for income taxes $ 115,238 $ 63,834 $ 81,928 |
Components of Consolidated Provision for Income Taxes | The components of the 2021, 2020 and 2019 consolidated provision for income taxes were as follows: 2021 2020 2019 Provision for Federal income taxes Current provision $ 74,910 $ 19,894 $ 49,539 Deferred (benefit) provision ( 2,051 ) 14,301 ( 2,862 ) Total provision for Federal income taxes 72,859 34,195 46,677 Provision for state and local income taxes Current provision 16,507 10,775 15,335 Deferred (benefit) provision ( 461 ) 123 ( 435 ) Total provision for state and local income taxes 16,046 10,898 14,900 Provision for non-resident withholding and foreign income taxes Current provision 21,833 18,741 20,351 Deferred provision 4,500 — — Total provision for non-resident withholding and foreign income taxes 26,333 18,741 20,351 Provision for income taxes $ 115,238 $ 63,834 $ 81,928 |
Significant Components of Net Deferred Income Taxes | As of January 2, 2022 and January 3, 2021, the significant components of net deferred income taxes were as follows: January 2, January 3, Deferred income tax assets Operating lease liabilities $ 54,478 $ 58,885 Accruals and reserves 15,207 14,148 Insurance reserves 12,867 12,447 Non-cash equity-based compensation expense 7,861 8,331 Foreign tax credit 10,206 6,603 Other 8,158 7,720 Deferred income tax assets before valuation allowance 108,777 108,134 Less: Valuation allowance ( 11,364 ) ( 7,600 ) Total deferred income tax assets 97,413 100,534 Deferred income tax liabilities Operating lease right-of-use assets 51,793 56,446 Capitalized software 19,828 29,596 Depreciation, amortization and asset basis differences 18,570 18,687 Unrealized gain on investments 9,035 — Total deferred income tax liabilities 99,226 104,729 Net deferred income taxes $ ( 1,813 ) $ ( 4,195 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 2, 2022, January 3, 2021 and December 29, 2019 is as follows: January 2, January 3, December 29, Unrecognized tax benefits at beginning of period $ 3,318 $ 2,802 $ 1,964 Additions for tax positions of current year 2,611 494 468 Additions for tax positions of prior years 2,624 506 789 Reductions for changes in prior year tax positions ( 379 ) ( 178 ) ( 284 ) Reductions for lapses of applicable statute of limitations ( 484 ) ( 306 ) ( 135 ) Unrecognized tax benefits at end of period $ 7,690 $ 3,318 $ 2,802 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Activity Related to Equity Incentive Plans | Stock option activity related to the 2004 Equity Incentive Plan is summarized as follows: Common Stock Options Outstanding Weighted Weighted Aggregate (Years) (In thousands) Stock options at December 30, 2018 1,909,399 $ 72.86 Stock options granted 96,280 272.64 Stock options cancelled ( 33,667 ) 196.47 Stock options exercised ( 425,601 ) 30.70 Stock options at December 29, 2019 1,546,411 $ 94.21 Stock options granted 52,730 413.80 Stock options cancelled ( 9,792 ) 268.94 Stock options exercised ( 756,683 ) 40.93 Stock options at January 3, 2021 832,666 $ 160.82 Stock options granted 42,742 367.79 Stock options cancelled ( 11,990 ) 333.61 Stock options exercised ( 199,301 ) 98.76 Stock options at January 2, 2022 664,117 $ 189.64 5.1 $ 248,836 Exercisable at January 2, 2022 545,050 155.82 4.4 $ 222,656 |
Stock Option Valuation Assumptions | The weighted average assumptions used in estimating the fair value of each stock option granted in 2021, 2020 and 2019 using the Black-Scholes option pricing method are presented in the following table: 2021 2020 2019 Risk-free interest rate 1.0 % 0.3 % 1.9 % Expected life 5.25 years 5.5 years 5.5 years Expected volatility 30.0 % 30.0 % 25.0 % Expected dividend yield 1.0 % 0.8 % 0.9 % Weighted average fair value per stock option $ 93.46 $ 105.76 $ 64.66 |
Resticted Stock and Performance Based Restricted Stock Activity Related to Equity Incentive Plans | Activity related to restricted stock awards and units and performance-based restricted stock awards and units awarded under the 2004 Equity Incentive Plan is summarized as follows: Shares Weighted Nonvested at December 30, 2018 190,379 $ 213.57 Shares granted 67,570 275.06 Shares cancelled ( 17,923 ) 230.60 Shares vested ( 68,956 ) 175.84 Nonvested at December 29, 2019 171,070 $ 251.29 Shares granted 42,780 398.08 Shares cancelled ( 8,345 ) 273.70 Shares vested ( 58,743 ) 221.58 Nonvested at January 3, 2021 146,762 $ 304.69 Shares granted 59,801 382.79 Shares cancelled ( 12,924 ) 340.94 Shares vested ( 48,378 ) 287.41 Nonvested at January 2, 2022 145,261 $ 339.37 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Option Valuation Assumptions | The weighted average assumptions used in estimating the fair value of each performance-based restricted stock unit granted in 2021 using the Monte-Carlo simulation pricing method are presented in the following table: 2021 Risk-free interest rate 0.3 % Expected life 2.75 years Expected volatility 33.9 % Weighted average fair value per performance-based restricted stock unit $ 375.85 |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Text Block [Abstract] | |
Share Components of Outstanding Common Stock | The share components of outstanding common stock at January 2, 2022 and January 3, 2021 were as follows: January 2, January 3, Voting 36,135,081 38,865,160 Non-Voting 3,192 3,190 Total Common Stock 36,138,273 38,868,350 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2021, 2020 and 2019. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements for the Company's corporate offices. U.S. Supply International Intersegment Other Total Revenues- 2021 $ 1,498,360 $ 2,699,863 $ 298,036 $ ( 138,886 ) $ — $ 4,357,373 2020 1,451,003 2,552,795 249,757 ( 136,144 ) — 4,117,411 2019 1,272,863 2,231,838 240,975 ( 126,902 ) — 3,618,774 Segment Income- 2021 $ 454,875 $ 229,877 $ 241,873 N/A $ ( 42,926 ) $ 883,699 2020 435,089 238,420 197,602 N/A ( 53,265 ) 817,846 2019 361,673 199,844 187,318 N/A ( 36,701 ) 712,134 Capital Expenditures- 2021 $ 13,680 $ 37,063 $ — N/A $ 44,894 $ 95,637 2020 15,319 36,229 — N/A 35,371 86,919 2019 11,793 33,440 131 N/A 43,304 88,668 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles total Segment Income to income before provision for income taxes: 2021 2020 2019 Total Segment Income $ 883,699 $ 817,846 $ 712,134 Depreciation and amortization ( 72,923 ) ( 65,038 ) ( 59,930 ) Loss on sale/disposal of assets ( 1,189 ) ( 2,922 ) ( 2,023 ) Non-cash equity-based compensation expense ( 28,670 ) ( 24,244 ) ( 20,265 ) Recapitalization-related expenses ( 509 ) — ( 509 ) Income from operations 780,408 725,642 629,407 Other income 36,758 — — Interest income 345 1,654 4,048 Interest expense ( 191,806 ) ( 172,166 ) ( 150,818 ) Income before provision for income taxes $ 625,705 $ 555,130 $ 482,637 |
Identifiable Asset Information | The following table summarizes the Company’s identifiable asset information by reportable segment as of January 2, 2022 and January 3, 2021: January 2, January 3, U.S. stores $ 340,984 $ 308,088 Supply chain 558,251 520,043 International franchise 41,279 41,408 Unallocated 731,302 697,629 Total assets $ 1,671,816 $ 1,567,168 |
Goodwill | The following table summarizes the Company’s goodwill balance by reportable segment as of January 2, 2022 and January 3, 2021 (in thousands): January 2, January 3, U.S. stores $ 13,967 $ 13,994 Supply chain 1,067 1,067 Consolidated goodwill $ 15,034 $ 15,061 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Feb. 24, 2022 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising fund assets restricted | $ 180,904,000 | $ 147,698,000 | ||
Restricted cash and cash equivalent | 115,185,000 | 126,595,000 | ||
Depreciation and amortization | 72,923,000 | 65,038,000 | $ 59,930,000 | |
Capitalized software amortization expense | 24,300,000 | 23,000,000 | 22,800,000 | |
Amortization of Debt Issuance Costs | 7,500,000 | 5,500,000 | 4,700,000 | |
Exposures for workers' compensation and general liability programs | 2,000,000 | |||
Insurance Reserves | 56,500,000 | 54,600,000 | ||
Revenue reduction due to profit-sharing obligation | 148,300,000 | 169,000,000 | 143,500,000 | |
Interest paid | 174,600,000 | 160,600,000 | 142,300,000 | |
Cash paid for income taxes | 106,300,000 | 60,400,000 | 80,300,000 | |
Capital expenditure accrual | 5,400,000 | $ 4,300,000 | $ 6,900,000 | |
Capitalized Software Not Yet Placed In Service | $ 61,000,000 | |||
Common Stock, Dividends, Per Share, Declared | $ 3.76 | $ 3.12 | $ 2.60 | |
Common stock dividend declared, paid | $ 139,399,000 | $ 121,925,000 | $ 105,715,000 | |
Total insurance limits under the retention programs | 110,000,000 | |||
Contract liability, Current | 5,400,000 | 4,100,000 | ||
Contract liability, Noncurrent | $ 24,300,000 | 15,000,000 | ||
Percentage of royalty fee | 5.50% | |||
Percentage of profit-sharing arrangements with participating stores | 50.00% | |||
Advertising Expense | $ 479,501,000 | 462,238,000 | 390,799,000 | |
Conditional commitments | 15,300,000 | 11,000,000 | ||
Non-cash investing activities related to lease incentives | 8,000,000 | 4,200,000 | 4,000,000 | |
Allowance For Doubtful Accounts Receivable Current | 1,869,000 | 1,793,000 | ||
Deferred income taxes | 3,922,000 | 6,099,000 | ||
Accounting Standards Update 2016-13 [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Non-cash investing activities related to lease incentives | 1,500,000 | |||
Deferred income taxes | $ 400,000 | |||
Minimum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Owned and non-owned automobile liabilities | 500,000 | |||
Maximum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Owned and non-owned automobile liabilities | 5,500,000 | |||
2020 Divided [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Common Stock, Dividends, Per Share, Declared | $ 3.12 | |||
Common stock dividend declared, paid | $ 139,600,000 | 105,600,000 | ||
Non-cash investing activities related to lease incentives | $ 700,000 | $ 0 | ||
2021 Divided [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Common Stock, Dividends, Per Share, Declared | $ 3.76 | |||
Non-cash investing activities related to lease incentives | $ 400,000 | |||
2022 Dividend [Member] | Subsequent Event [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Amount per share, dividend payable | $ 1.10 | |||
Date of dividend payable | Mar. 30, 2022 | |||
2019 Dividend [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Common Stock, Dividends, Per Share, Declared | $ 2.60 | |||
Common stock dividend declared, paid | 122,200,000 | |||
Property Plant and Equipment [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Depreciation and amortization | 48,600,000 | 42,000,000 | $ 37,100,000 | |
Cash Equivalents Held in Interest Reserve [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Restricted cash and cash equivalent | 47,200,000 | 39,600,000 | ||
Cash and Cash Equivalents Held for Future Interest Payment [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Restricted cash and cash equivalent | 133,200,000 | 177,100,000 | ||
Other Restricted Cash [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Restricted cash and cash equivalent | 200,000 | 800,000 | ||
Advertising Fund Restricted Cash and Cash Equivalents [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Restricted cash and cash equivalent | 161,700,000 | 115,900,000 | ||
Other Assets [Member] | Cloud Based Computing Arrangements [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Intangible assets net | 10,600,000 | 8,400,000 | ||
Amortization of intangible assets | 1,700,000 | 400,000 | ||
Accumulated amortization intangible assets | $ 1,300,000 | 400,000 | 0 | |
Domestic Stores [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Percentage of sales contribution | 6.00% | |||
U.S. franchise [Member] | Domestic Franchise Advertising [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising Expense | $ 479,500,000 | 462,200,000 | 390,800,000 | |
U S Stores [Member] | Domestic Franchise [Member] | Cash and cash equivalents [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising fund assets restricted | 161,700,000 | 115,900,000 | ||
U S Stores [Member] | Domestic Franchise [Member] | Accounts receivable [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising fund assets restricted | 14,500,000 | 27,000,000 | ||
U S Stores [Member] | Domestic Franchise [Member] | Prepaid expenses [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising fund assets restricted | 4,700,000 | 4,800,000 | ||
U S Stores [Member] | U.S. Company-owned stores [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies | ||||
Advertising fund assets restricted | 7,200,000 | 6,500,000 | ||
Advertising Expense | $ 42,100,000 | $ 35,700,000 | $ 37,600,000 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Food | $ 61,994 | $ 57,116 |
Equipment and supplies | 6,334 | 9,567 |
Inventories | $ 68,328 | $ 66,683 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property Plant and Equipment Excluding Capital Lease Asset (Detail) | 12 Months Ended |
Jan. 02, 2022 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold and Other Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold and Other Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Schedule of Amortization of Capitalized Software (Detail) $ in Thousands | Jan. 02, 2022USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 19,059 |
2023 | 10,075 |
2024 | 3,522 |
2025 | 1,158 |
2026 | 768 |
Thereafter | 0 |
Amortization expense total | $ 34,582 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred franchise fees and deferred development fees at beginning of period | $ 19,090 | $ 20,463 |
Revenue recognized during the period | (5,845) | (6,205) |
New deferrals due to cash received and other | 16,449 | 4,832 |
Deferred franchise fees and deferred development fees at end of period | $ 29,694 | $ 19,090 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Schedule of Revenue Recognition Associated with Deferred Franchise Fees and Deferred Development Fees (Detail) $ in Thousands | Jan. 02, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 29,694 |
January One 2022 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 5,403 |
January One 2023 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 5,162 |
January One 2024 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,855 |
January One 2025 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,406 |
January One 2026 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,003 |
January One Thereafter [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 5,865 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Basic and Diluted Earning per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders – basic and diluted | $ 510,467 | $ 491,296 | $ 400,709 |
Weighted average number of common shares | 37,198,292 | 38,974,037 | 40,766,362 |
Earnings per common share – basic | $ 13.72 | $ 12.61 | $ 9.83 |
Diluted weighted average number of common shares | 37,691,351 | 39,640,791 | 41,923,062 |
Earnings per common share - diluted | $ 13.54 | $ 12.39 | $ 9.56 |
Earning Per Share - Schedule of
Earning Per Share - Schedule of Denominators Used in Calculating Earning Per Common Share (Detail) - shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 41,215 | 52,330 | 160,980 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 1,010 | 0 | 0 |
Restricted Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share, amount unvested | 29,704 | 68,159 | 82,647 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Stock Option [Member] | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 41,215 | 52,330 | 160,980 |
Recapitalizations and Financi_3
Recapitalizations and Financing Arrangements - Additional Information (Detail) | Apr. 16, 2021USD ($) | Nov. 19, 2019USD ($) | Apr. 24, 2018USD ($) | Jul. 24, 2017USD ($) | Oct. 21, 2015USD ($) | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||
Scheduled principal payments in year 2022 | $ 55,588,000 | ||||||||
Scheduled principal payments in year 2023 | 55,438,000 | ||||||||
Scheduled principal payments in year 2024 | 55,816,000 | ||||||||
Scheduled principal payments in year 2025 | 1,178,971,000 | ||||||||
Scheduled principal payments in year 2026 | 43,979,000 | ||||||||
Principal payments on the Notes | $ 158,000,000 | $ 65,000,000 | |||||||
Debt instrument interest rate description | The interest rate on the 2017 Floating Rate Notes was payable at a rate equal to LIBOR plus 125 basis points. | ||||||||
Remaining borrowing capacity | 44,200,000 | 157,500,000 | |||||||
Letters of Credit | 42,500,000 | ||||||||
Interest expense | 191,806,000 | 172,166,000 | $ 150,818,000 | ||||||
Proceeds from notes payable | $ 155,800,000 | ||||||||
Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | 5 | |||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | 5 | |||||||
2018 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated percentage | 5.00% | ||||||||
2017 Floating Rate Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of principal and interest | $ 291,000,000 | ||||||||
2017 Five-Year Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of principal and interest | $ 582,000,000 | ||||||||
2019 Recapitalization [Member] | 2019 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 675,000,000 | ||||||||
Debt instrument, stated percentage | 3.668% | 5.00% | |||||||
Debt instrument, term | 10 years | ||||||||
Scheduled principal payments in year 2022 | $ 6,800,000 | ||||||||
Scheduled principal payments in year 2023 | 6,800,000 | ||||||||
Scheduled principal payments in year 2024 | 6,800,000 | ||||||||
Scheduled principal payments in year 2025 | 6,800,000 | ||||||||
Scheduled principal payments in year 2026 | 6,800,000 | ||||||||
Scheduled principal payments in year 2027 | 6,800,000 | ||||||||
Scheduled principal payments in year 2028 | 6,800,000 | ||||||||
Scheduled principal payments in year 2029 | $ 615,900,000 | ||||||||
Gross proceeds from the issuance of debt | $ 675,000,000 | ||||||||
Debt instrument interest rate description | Interest on the 2019 Variable Funding Notes was payable at a per year rate equal to LIBOR plus 150 basis points. | ||||||||
Variable funding notes | $ 200,000,000 | $ 200,000 | |||||||
2019 Recapitalization [Member] | 2019 Variable Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 8,100,000 | ||||||||
Recapitalization-related general and administrative expenses | 500,000 | ||||||||
2018 Recapitalization [Member] | 2018 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 425,000,000 | ||||||||
Debt instrument, stated percentage | 4.116% | ||||||||
Debt instrument, term | 7 years 6 months | 7 years 6 months | |||||||
Scheduled principal payments in year 2022 | $ 8,300,000 | ||||||||
Scheduled principal payments in year 2023 | 8,300,000 | ||||||||
Scheduled principal payments in year 2024 | 8,300,000 | ||||||||
Scheduled principal payments in year 2025 | 403,500,000 | ||||||||
Scheduled principal payments in year 2026 | 4,000,000 | ||||||||
Scheduled principal payments in year 2027 | 368,000,000 | ||||||||
Gross proceeds from the issuance of debt | $ 825,000,000 | ||||||||
2018 Recapitalization [Member] | 2018 A-2-II Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 400,000,000 | ||||||||
Debt instrument, stated percentage | 4.328% | ||||||||
Debt instrument, term | 9 years 3 months | ||||||||
2017 Recapitalization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of debt | $ 1,900,000,000 | ||||||||
2017 Recapitalization [Member] | 2017 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated percentage | 5.00% | ||||||||
Scheduled principal payments in year 2022 | 10,000,000 | ||||||||
Scheduled principal payments in year 2028 | $ 912,500,000 | ||||||||
2017 Recapitalization [Member] | 2017 Floating Rate Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 300,000,000 | ||||||||
Debt instrument, term | 5 years | ||||||||
2017 Recapitalization [Member] | 2017 Five-Year Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 600,000,000 | ||||||||
Debt instrument, stated percentage | 3.082% | ||||||||
2015 Recapitalization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of debt | $ 1,300,000,000 | ||||||||
2015 Recapitalization [Member] | 2015 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated percentage | 5.00% | ||||||||
Scheduled principal payments in year 2022 | $ 8,000,000 | ||||||||
Scheduled principal payments in year 2025 | 736,000,000 | ||||||||
2015 Recapitalization [Member] | 2015 Class Five-Year Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 500,000,000 | ||||||||
Debt instrument, stated percentage | 3.484% | ||||||||
2015 Recapitalization [Member] | 2015 Ten-Year Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 800,000,000 | ||||||||
Debt instrument, stated percentage | 4.474% | ||||||||
Notes Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal payments on the Notes | 907,000,000 | $ 42,000,000 | $ 26,400,000 | ||||||
2021 Recapitalization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of debt | $ 1,850,000,000 | ||||||||
Debt issuance costs | 14,900,000 | ||||||||
Company wrote-off In connection with the Recapitalization | 2,000,000 | ||||||||
Interest expense | 300,000 | ||||||||
Recapitalization-related general and administrative expenses | 500,000 | ||||||||
2021 Recapitalization [Member] | 2021 A-2-I Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated percentage | 3.151% | ||||||||
Debt instrument, term | 10 years | ||||||||
Variable funding notes | $ 1,000,000,000 | ||||||||
2021 Recapitalization [Member] | 2021 Variable Funding Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable funding notes | 200,000,000 | ||||||||
Recapitalization-related general and administrative expenses | $ 2,800,000 | ||||||||
2021 Recapitalization [Member] | 2021 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 850,000,000 | ||||||||
Debt instrument, stated percentage | 2.662% | 5.00% | |||||||
Debt instrument, term | 7 years 6 months | ||||||||
Scheduled principal payments in year 2022 | $ 18,500,000 | ||||||||
Scheduled principal payments in year 2023 | 18,500,000 | ||||||||
Scheduled principal payments in year 2024 | 18,500,000 | ||||||||
Scheduled principal payments in year 2025 | 18,500,000 | ||||||||
Scheduled principal payments in year 2026 | 18,500,000 | ||||||||
Scheduled principal payments in year 2027 | 18,500,000 | ||||||||
Scheduled principal payments in year 2028 | 804,800,000 | ||||||||
Scheduled principal payments in year 2029 | 10,000,000 | ||||||||
Scheduled principal payments in year 2030 | 10,000,000 | ||||||||
Scheduled principal payments in year 2031 | $ 905,000,000 | ||||||||
Debt instrument interest rate description | Interest on the 2021 Variable Funding Notes is payable at a per year rate equal to LIBOR plus 150 basis points. | ||||||||
Variable funding notes | $ 200,000,000 | ||||||||
2021 Recapitalization [Member] | 2021 Notes [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable fund notes, unused portion, commitment fee percentage | 50.00% | ||||||||
2021 Recapitalization [Member] | 2021 Notes [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable fund notes, unused portion, commitment fee percentage | 100.00% |
Recapitalizations and Financi_4
Recapitalizations and Financing Arrangements - Consolidated Long-Term Debt (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Finance lease obligations | $ 76,338 | $ 60,555 |
Debt issuance costs, net of accumulated amortization of $18.0 million in 2021 and $18.4 million in 2020 | (32,800) | (25,370) |
Total debt | 5,070,226 | 4,118,873 |
Less - current portion | 55,588 | 2,855 |
Consolidated long-term debt, net of debt issuance Costs | 5,014,638 | 4,116,018 |
2015 Ten- Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 760,000 | 766,000 |
2017 Five-Year Fixed Rate Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 0 | 582,000 |
2017 Ten-Year Fixed Rate Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 962,500 | 970,000 |
2017 Floating Rate Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 0 | 291,000 |
2018 7.5-Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 412,250 | 415,438 |
2018 9.25-Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 388,000 | 391,000 |
2019 Ten-Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 663,188 | 668,250 |
2021 7.5- Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 845,750 | 0 |
2021 Ten-Year Notes | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | $ 995,000 | $ 0 |
Recapitalizations and Financi_5
Recapitalizations and Financing Arrangements - Maturities of Long-Term Debt and Capital Lease Obligations (Detail) $ in Thousands | Jan. 02, 2022USD ($) |
Debt Disclosure [Abstract] | |
Scheduled principal payments in year 2022 | $ 55,588 |
2023 | 55,438 |
2024 | 55,816 |
2025 | 1,178,971 |
2026 | 43,979 |
Thereafter | 3,713,234 |
Maturities of long term debt and capital obligations, Total | $ 5,103,026 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Dash Brands Ltd [Member] - USD ($) $ in Thousands | Jan. 02, 2022 | Sep. 12, 2021 | Jun. 20, 2021 | Mar. 28, 2021 | Jan. 03, 2021 | Jun. 14, 2020 |
Acquisition of non-controlling interest | $ 9,100 | $ 40,000 | $ 40,000 | |||
Adjustments to the carrying amount of equity securities | 34,300 | 2,500 | ||||
Investments at carrying value | $ 125,840 | $ 82,500 | $ 82,500 | $ 82,500 | $ 40,000 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 87,384 | $ 151,502 |
Restricted cash equivalents, carrying amount | 115,185 | 126,595 |
Investments in marketable securities, carrying amount | 15,433 | 13,251 |
Advertising fund cash equivalents, restricted, carrying amount | 140,115 | 104,197 |
Investments | 125,840 | 40,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 87,384 | 151,502 |
Restricted cash equivalents, carrying amount | 115,185 | 126,595 |
Investments in marketable securities, carrying amount | 15,433 | 13,251 |
Advertising fund cash equivalents, restricted, carrying amount | 140,115 | 104,197 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 125,840 | $ 40,000 |
Summary of Reconciliation of th
Summary of Reconciliation of the Carrying Amount of the Company's Investment in Dash Brands (Detail) - Dash Brands Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 40,000 | |
Additional Purchase of Equity Securities Without Readily Determinable Fair Value Amount | 49,082 | $ 40,000 |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 36,758 | |
Equity Securities without Readily Determinable Fair Value, Amount | $ 125,840 | $ 40,000 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
2015 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 760,000 | $ 766,000 |
Fair Value | 777,480 | 809,662 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 582,000 | |
Fair Value | 582,582 | |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 962,500 | 970,000 |
Fair Value | 1,000,038 | 1,035,960 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 291,000 | |
Fair Value | 291,000 | |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 412,250 | 415,438 |
Fair Value | 420,907 | 437,456 |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 388,000 | 391,000 |
Fair Value | 407,788 | 422,280 |
2019 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 663,188 | 668,250 |
Fair Value | 693,031 | $ 712,355 |
2021 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 845,750 | |
Fair Value | 849,133 | |
2021 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 995,000 | |
Fair Value | $ 1,017,885 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Rent Expenses | $ 78.6 | $ 73.7 | $ 69.7 |
Finance Lease | 8 | 4.2 | $ 4 |
Lessee, operating lease, lease not yet commenced, future minimum rental commitments | 66.7 | ||
Potential future payments | $ 9.1 | $ 12.6 | |
Operating Lease [Member] | |||
Lease Term | 16 years |
Components of Operating and Fin
Components of Operating and Finance Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Operating lease cost | $ 44,913 | $ 44,679 | $ 42,903 |
Finance lease cost: | |||
Amortization of right-of-use assets | 4,373 | 2,186 | 1,167 |
Interest on lease liabilities | 4,233 | 3,340 | 1,952 |
Total finance lease cost | $ 8,606 | $ 5,526 | $ 3,119 |
Supplemental balance sheet info
Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Land and buildings | $ 86,965 | $ 68,084 |
Accumulated depreciation and amortization | (14,423) | (10,049) |
Finance lease assets, net | 72,542 | 58,035 |
Current portion of long-term debt | $ 4,088 | $ 2,855 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | Long-term Debt and Capital Lease Obligations, Current |
Long-term debt, less current portion | $ 72,250 | $ 57,700 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations | Long-term Debt and Capital Lease Obligations |
Total principal payable on finance leases | $ 76,338 | $ 60,555 |
Finance Lease, Weighted Average Remaining Lease Term | 15 years | 16 years |
Finance Lease, Weighted Average Discount Rate, Percent | 5.80% | 6.80% |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.70% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 44,176 | $ 43,679 | $ 43,608 |
Operating cash flows from finance leases | 4,233 | 3,340 | 1,952 |
Financing cash flows from finance leases | 3,212 | 2,058 | 647 |
Right-of-use assets obtained in exchange for new lease obligations: | |||
Operating leases | 29,549 | 37,375 | 63,685 |
Finance leases | $ 18,991 | $ 42,894 | $ 3,255 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Leases [Abstract] | ||
2022 | $ 45,347 | |
2023 | 39,057 | |
2024 | 38,027 | |
2025 | 32,417 | |
2026 | 29,280 | |
Thereafter | 65,645 | |
Total future minimum rental commitments | 249,773 | |
Less – amounts representing interest | (28,147) | |
Total lease liabilities | 221,626 | |
2022 | 8,084 | |
2023 | 7,536 | |
2024 | 8,115 | |
2025 | 7,935 | |
2026 | 8,633 | |
Thereafter | 78,071 | |
Total future minimum rental commitments | 118,374 | |
Less – amounts representing interest | (42,036) | |
Finance lease obligations | $ 76,338 | $ 60,555 |
Income Before Provision for Inc
Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 611,267 | $ 541,646 | $ 468,467 |
Foreign | 14,438 | 13,484 | 14,170 |
Income before provision for income taxes | $ 625,705 | $ 555,130 | $ 482,637 |
Differences Between Statutory I
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Federal income tax provision based on the statutory rate | $ 131,398 | $ 116,577 | $ 101,354 |
State and local income taxes, net of related Federal income taxes | 15,108 | 16,660 | 15,141 |
Non-resident withholding and foreign income taxes | 21,833 | 18,741 | 20,351 |
Foreign tax and other tax credits | (23,509) | (19,506) | (20,090) |
Foreign derived intangible income | (16,800) | (12,390) | (12,810) |
Excess tax benefits from equity-based compensation | (18,911) | (60,364) | (25,735) |
Non-deductible expenses, net | 4,501 | 4,359 | 3,090 |
Unrecognized tax provision, net of related Federal income taxes | 4,372 | 516 | 694 |
Other | (2,754) | (759) | (67) |
Provision for income taxes | $ 115,238 | $ 63,834 | $ 81,928 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 31, 2018 | |
Schedule Of Income Taxes [Line Items] | ||||
Excess tax benefits from equity-based compensation | $ 18,911 | $ 60,364 | $ 25,735 | |
Unrecognized tax benefits | 7,690 | 3,318 | $ 2,802 | $ 1,964 |
Unrecognized tax benefits that would impact effective tax rate | 6,700 | 2,400 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 300 | $ 200 | ||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | |
Foreign tax credit carry forward | $ 10,206 | $ 6,603 | ||
Deferred tax valuation allowance | 11,364 | 7,600 | ||
Penalities accrued | 0 | |||
Interest Deductibility [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Deferred tax valuation allowance | $ 1,200 | $ 1,000 |
Components of Consolidated Prov
Components of Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current provision | $ 74,910 | $ 19,894 | $ 49,539 |
Deferred (benefit) provision | (2,051) | 14,301 | (2,862) |
Total provision for Federal income taxes | 72,859 | 34,195 | 46,677 |
Current provision | 16,507 | 10,775 | 15,335 |
Deferred (benefit) provision | (461) | 123 | (435) |
Total provision for state and local income taxes | 16,046 | 10,898 | 14,900 |
Current provision | 21,833 | 18,741 | 20,351 |
Deferred provision | 4,500 | 0 | 0 |
Total provision for non-resident withholding and foreign income taxes | 26,333 | 18,741 | 20,351 |
Provision for income taxes | $ 115,238 | $ 63,834 | $ 81,928 |
Significant Components of Net D
Significant Components of Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Deferred income tax assets | ||
Operating lease liabilities | $ 54,478 | $ 58,885 |
Accruals and reserves | 15,207 | 14,148 |
Insurance reserves | 12,867 | 12,447 |
Non-cash equity-based compensation expense | 7,861 | 8,331 |
Foreign tax credit | 10,206 | 6,603 |
Other | 8,158 | 7,720 |
Deferred income tax assets before valuation allowance | 108,777 | 108,134 |
Less: Valuation allowance | (11,364) | (7,600) |
Total deferred income tax assets | 97,413 | 100,534 |
Deferred income tax liabilities | ||
Operating lease right-of-use assets | 51,793 | 56,446 |
Depreciation, amortization and asset basis differences | 18,570 | 18,687 |
Capitalized software | 19,828 | 29,596 |
Unrealized gain on investments | 9,035 | 0 |
Total deferred income tax liabilities | 99,226 | 104,729 |
Net deferred income taxes | $ (1,813) | $ (4,195) |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance, beginning | $ 3,318 | $ 2,802 | |
Additions for tax positions of current year | 2,611 | 494 | $ 468 |
Additions for tax positions of prior years | 2,624 | 506 | 789 |
Changes in prior year tax positions | (379) | (178) | (284) |
Lapses of applicable statute of limitations | (484) | (306) | (135) |
Balance, ending | $ 7,690 | $ 3,318 | $ 2,802 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average price of shares purchased on the open market | $ 257.12 | ||
Nonqualified Deferred Compensation Plan [Member] | Base Salary [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of defer on compensation | 40.00% | ||
Nonqualified Deferred Compensation Plan [Member] | Bonus Compensation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of defer on compensation | 80.00% | ||
Employee Stock Purchase Discount Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to the plan, value | $ 1 | $ 1 | $ 0.8 |
Percentage of wages deduction from eligible employees | 15.00% | ||
Percentage of face value on stock purchase | 85.00% | ||
Shares purchased on the open market | 16,382 | 16,017 | 20,222 |
Weighted-average price of shares purchased on the open market | $ 424.90 | $ 357.54 | |
401(K) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, Description | The Company has a retirement savings plan which qualifies under Internal Revenue Code Section 401(k). All employees of the Company who have completed 1,000 hours of service and are at least 18 years of age are eligible to participate in the plan | ||
Service period of employees to be eligible for participation under the retirement savings plan (in hours) | 1000 hours | ||
Plan requires to match elective deferrals, higher | 100.00% | ||
Employee's elective deferrals higher percentage | 5.00% | ||
Contributions to the plan, value | $ 12.9 | $ 12 | $ 10.8 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | $ 28,670 | $ 24,244 | $ 20,265 | |
Deferred tax benefit related to non-cash compensation expense | $ 4,300 | $ 3,600 | $ 3,800 | |
Stock options outstanding | 664,117 | 832,666 | 1,546,411 | 1,909,399 |
Total intrinsic value of stock options exercised | $ 77,400 | $ 249,700 | $ 103,800 | |
Cash received from exercise of stock options | 19,682 | 30,970 | 13,064 | |
Tax benefit realized from stock options exercised | $ 17,600 | $ 59,100 | $ 24,900 | |
Restricted stock granted | 59,801 | 42,780 | 67,570 | |
Board Of Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted | 3,292 | 3,630 | 3,780 | |
Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted | 49,963 | |||
Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 5,300 | |||
Weighted average period over which the unrecognized compensation will be recognized | 2 years | |||
Performance Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | $ 12,700 | $ 14,600 | $ 13,200 | |
Unrecognized compensation cost | 16,800 | |||
Performance Based Restricted Stock [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | 1,400 | |||
Unrecognized compensation cost | $ 1,200 | |||
Restricted stock granted | 6,546 | 39,150 | 63,790 | |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | $ 5,700 | $ 6,300 | $ 4,000 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | 1,400 | |||
Restricted Stock Units (RSUs) [Member] | Board Of Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | 1,200 | 1,000 | ||
Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | 5,400 | |||
Unrecognized compensation cost | 12,300 | |||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash compensation expense | 2,100 | $ 2,100 | $ 2,100 | |
Restricted stock granted | 28,570 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 600 | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | Board Of Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 200 | |||
2004 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 15,600,000 | |||
Number of shares available for grant | 2,497,029 | |||
2004 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 664,117 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Options Activity Related to Equity Incentive Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Common Stock Options Outstanding | |||
Common Stock Options, beginning balance | 832,666 | 1,546,411 | 1,909,399 |
Common Stock Options, granted | 42,742 | 52,730 | 96,280 |
Common Stock Options, cancelled | (11,990) | (9,792) | (33,667) |
Common Stock Options, exercised | (199,301) | (756,683) | (425,601) |
Common Stock Options, ending balance | 664,117 | 832,666 | 1,546,411 |
Common Stock Options, Exercisable at end of period | 545,050 | ||
Common Stock Options Weighted Average Exercise Price | |||
Weighted Average Exercise Price, beginning balance | $ 160.82 | $ 94.21 | $ 72.86 |
Weighted Average Exercise Price, Stock options granted | 367.79 | 413.80 | 272.64 |
Weighted Average Exercise Price, Stock options cancelled | 333.61 | 268.94 | 196.47 |
Weighted Average Exercise Price, Stock options exercised | 98.76 | 40.93 | 30.70 |
Weighted Average Exercise Price, ending balance | 189.64 | $ 160.82 | $ 94.21 |
Weighted Average Exercise Price, Exercisable at end of period | $ 155.82 | ||
Weighted Average Remaining Life (Years) | 5 years 1 month 6 days | ||
Weighted Average Remaining Life (Years), Exercisable at end of period | 4 years 4 months 24 days | ||
Stock options, Aggregate Intrinsic Value, ending balance | $ 248,836 | ||
Stock options, Aggregate Intrinsic Value, Exercisable at end of period | $ 222,656 |
Equity Incentive Plans- Stock O
Equity Incentive Plans- Stock Options Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.00% | 0.30% | 1.90% |
Expected life (years) | 5 years 3 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 30.00% | 30.00% | 25.00% |
Expected dividend yield | 1.00% | 0.80% | 0.90% |
Weighted average fair value per stock option | $ 93.46 | $ 105.76 | $ 64.66 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Restricted Stock Options Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.00% | 0.30% | 1.90% |
Expected life (years) | 5 years 3 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 30.00% | 30.00% | 25.00% |
Weighted average fair value per performance-based restrict stock unit | $ 93.46 | $ 105.76 | $ 64.66 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.30% | ||
Expected life (years) | 2 years 9 months | ||
Expected volatility | 33.90% | ||
Weighted average fair value per performance-based restrict stock unit | $ 375.85 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock and Performance-Based Restricted Stock Activity Related to Equity Incentive Plans (Detail) - $ / shares | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | ||
Share-based Payment Arrangement [Abstract] | ||||
Restricted Stock, Nonvested Shares at beginning of period | 146,762 | 171,070 | 190,379 | |
Restricted Stock, Nonvested Shares granted | 59,801 | 42,780 | 67,570 | |
Restricted Stock, Nonvested Shares cancelled | (12,924) | (8,345) | (17,923) | |
Restricted Stock, Nonvested Shares vested | (48,378) | (58,743) | (68,956) | |
Restricted Stock, Nonvested Shares at end of period | 145,261 | 146,762 | 171,070 | |
Weighted Average Grant Date Fair Value at beginning of period | [1] | $ 304.69 | $ 251.29 | $ 213.57 |
Weighted Average Grant Date Fair Value, granted | [1] | 382.79 | 398.08 | 275.06 |
Weighted Average Grant Date Fair Value, cancelled | [1] | 340.94 | 273.70 | 230.60 |
Weighted Average Grant Date Fair Value, vested | [1] | 287.41 | 221.58 | 175.84 |
Weighted Average Grant Date Fair Value at end of period | [1] | $ 339.37 | $ 304.69 | $ 251.29 |
[1] | The weighted average grant date fair value for performance-based restricted stock awards granted in 2020 and 2019 was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 03, 2022 | Jul. 21, 2021 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Jul. 20, 2021 | Apr. 30, 2021 | Feb. 24, 2021 | Oct. 04, 2019 |
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||
Common stock repurchased and retired (in shares) | 2,912,558 | 838,871 | 2,493,560 | ||||||
Repurchased common stock, value | $ 1,320,902 | $ 304,590 | $ 699,007 | ||||||
Common stock, shares authorized | 170,000,000 | 170,000,000 | |||||||
Stock repurchase program, Utilized amount cumulatively | $ 1,000,000 | ||||||||
Subsequent Event [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 100,810 | ||||||||
Retired Stock Repurchased Value | $ 47,700 | ||||||||
ASR Agreement on February 24 2021 [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 1,000,000 | ||||||||
Stock repurchase remaining authorized repurchase amount | $ 704,100 | ||||||||
ASR Agreement on April 30 2021 [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 1,000,000 | ||||||||
ASR Agreement on April 30 2021 [Member] | 2021 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 2,012,596 | ||||||||
ASR Agreement on April 30 2021 [Member] | 2021 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Stock repurchased during period value | $ 1,000,000 | ||||||||
ASR Agreement on July 21, 2021 [Member] | 2021 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 2,250,786 | ||||||||
ASR Agreement on July 21, 2021 [Member] | 2021 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Stock retired, Average Price per share | $ 444.29 | ||||||||
Non-Voting [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock, shares authorized | 10,000,000 | ||||||||
Voting [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock, shares authorized | 160,000,000 |
Capital Structure - Share Compo
Capital Structure - Share Components of Outstanding Common Stock (Detail) - shares | Jan. 02, 2022 | Jan. 03, 2021 |
Components Of Common Stock [Line Items] | ||
Total Common Stock | 36,138,273 | 38,868,350 |
Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 36,135,081 | 38,865,160 |
Non-Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 3,192 | 3,190 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Jan. 02, 2022Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Percentage of supply chain revenues from U.S. | 90.00% |
Percentage of long lived assets from U.S. | 95.00% |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,357,373 | $ 4,117,411 | $ 3,618,774 |
Segment Income | 883,699 | 817,846 | 712,134 |
Capital Expenditures | 95,637 | 86,919 | 88,668 |
Operating Segments [Member] | U.S. Stores [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,498,360 | 1,451,003 | 1,272,863 |
Segment Income | 454,875 | 435,089 | 361,673 |
Capital Expenditures | 13,680 | 15,319 | 11,793 |
Operating Segments [Member] | Supply Chain [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,699,863 | 2,552,795 | 2,231,838 |
Segment Income | 229,877 | 238,420 | 199,844 |
Capital Expenditures | 37,063 | 36,229 | 33,440 |
Operating Segments [Member] | International Franchise [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 298,036 | 249,757 | 240,975 |
Segment Income | 241,873 | 197,602 | 187,318 |
Capital Expenditures | 0 | 0 | 131 |
Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (138,886) | (136,144) | (126,902) |
Segment Reconciling [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Segment Income | (42,926) | (53,265) | (36,701) |
Capital Expenditures | $ 44,894 | $ 35,371 | $ 43,304 |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reconciliation [Abstract] | |||
Total Segment Income | $ 883,699 | $ 817,846 | $ 712,134 |
Depreciation and amortization | (72,923) | (65,038) | (59,930) |
Loss on sale/disposal of assets | (1,189) | (2,922) | (2,023) |
Non-cash equity-based compensation expense | (28,670) | (24,244) | (20,265) |
Recapitalization-related expenses | (509) | 0 | (509) |
Income from operations | 780,408 | 725,642 | 629,407 |
Other Income | 36,758 | 0 | 0 |
Interest income | 345 | 1,654 | 4,048 |
Interest expense | (191,806) | (172,166) | (150,818) |
Income before provision for income taxes | $ 625,705 | $ 555,130 | $ 482,637 |
Identifiable Asset Information
Identifiable Asset Information (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,671,816 | $ 1,567,168 |
U.S. Stores [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 340,984 | 308,088 |
U.S. Supply Chain [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 558,251 | 520,043 |
International Franchise [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 41,279 | 41,408 |
Unallocated [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 731,302 | $ 697,629 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 15,034 | $ 15,061 |
U.S. Stores [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 13,967 | 13,994 |
Supply Chain [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,067 | $ 1,067 |
Company-owned Store Transacti_2
Company-owned Store Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($)Store | |
Number of company-owned stores sold | Store | 62 | ||
Consideration For Sale Of Stores | $ 12,300 | ||
Proceeds from sale of assets | $ 16 | $ 174 | 12,258 |
Pre-tax gain (loss) on sale of assets, net of goodwill reduction, charged to general and administrative expenses | (300) | ||
Reduction of goodwill related to sale of stores | $ 1,500 | ||
US Franchisee [Member] | |||
Number of stores purchased | Store | 3 | ||
Payment for purchase of productive assets | $ 3,400 | ||
Value of goodwill purchased | 1,700 | ||
Value of intangibles purchased | 1,300 | ||
Value of leasehold and other assets purchased | $ 400 |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
ASSETS: | ||||
Cash | $ 148,160 | $ 168,821 | $ 190,615 | $ 25,438 |
Total assets | 1,671,816 | 1,567,168 | ||
LIABILITIES: | ||||
Total liabilities | 5,881,352 | 4,867,573 | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 36,138,273 in 2021 and 38,868,350 in 2020 issued and outstanding | 361 | 389 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | 0 | 0 | ||
Additional paid-in capital | 840 | 5,122 | ||
Retained deficit | (4,207,917) | (3,303,492) | ||
Accumulated other comprehensive loss | (2,820) | (2,424) | ||
Total stockholders' deficit | (4,209,536) | (3,300,405) | ||
Total liabilities and stockholders' deficit | 1,671,816 | 1,567,168 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash | 6 | 6 | $ 6 | $ 6 |
Total assets | 6 | 6 | ||
LIABILITIES: | ||||
Equity in net deficit of subsidiaries | 4,209,536 | 3,300,405 | ||
Due to subsidiary | 6 | 6 | ||
Total liabilities | 4,209,542 | 3,300,411 | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 36,138,273 in 2021 and 38,868,350 in 2020 issued and outstanding | 361 | 389 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | 0 | 0 | ||
Additional paid-in capital | 840 | 5,122 | ||
Retained deficit | (4,207,917) | (3,303,492) | ||
Accumulated other comprehensive loss | (2,820) | (2,424) | ||
Total stockholders' deficit | (4,209,536) | (3,300,405) | ||
Total liabilities and stockholders' deficit | $ 6 | $ 6 |
Parent Company Condensed Bala_2
Parent Company Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Jan. 02, 2022 | Jan. 03, 2021 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 36,138,273 | 38,868,350 |
Common stock, shares outstanding | 36,138,273 | 38,868,350 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent Company [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 36,138,273 | 38,868,350 |
Common stock, shares outstanding | 36,138,273 | 38,868,350 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent Company Condensed Statem
Parent Company Condensed Statements of Income and Comprehensive Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Total revenues | $ 4,357,373 | $ 4,117,411 | $ 3,618,774 |
INCOME FROM OPERATIONS | 780,408 | 725,642 | 629,407 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 625,705 | 555,130 | 482,637 |
PROVISION FOR INCOME TAXES | 115,238 | 63,834 | 81,928 |
NET INCOME | 510,467 | 491,296 | 400,709 |
COMPREHENSIVE INCOME | $ 510,071 | $ 492,614 | $ 401,396 |
EARNINGS PER SHARE: | |||
Common Stock - basic | $ 13.72 | $ 12.61 | $ 9.83 |
Common Stock - diluted | $ 13.54 | $ 12.39 | $ 9.56 |
Parent Company [Member] | |||
REVENUES | $ 0 | $ 0 | $ 0 |
Total revenues | 0 | 0 | 0 |
OPERATING EXPENSES | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 |
INCOME FROM OPERATIONS | 0 | 0 | 0 |
Equity earnings in subsidiaries | 510,467 | 491,296 | 400,709 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 510,467 | 491,296 | 400,709 |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 |
NET INCOME | 510,467 | 491,296 | 400,709 |
COMPREHENSIVE INCOME | $ 510,071 | $ 492,614 | $ 401,396 |
EARNINGS PER SHARE: | |||
Common Stock - basic | $ 13.72 | $ 12.61 | $ 9.83 |
Common Stock - diluted | $ 13.54 | $ 12.39 | $ 9.56 |
Parent Company Condensed Stat_2
Parent Company Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | $ 654,206 | $ 592,794 | $ 496,950 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in investing activities | (142,723) | (128,927) | (27,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends and equivalents | (139,399) | (121,925) | (105,715) |
Purchases of common stock | (1,320,902) | (304,590) | (699,007) |
Other | (244) | 0 | 0 |
Net cash used in financing activities | (522,833) | (446,406) | (222,792) |
Change in cash and cash equivalents, restricted cash and cash equivalents | (11,666) | 18,222 | 246,505 |
Cash and cash equivalents, beginning of period | 168,821 | 190,615 | 25,438 |
Cash and cash equivalents, end of period | 148,160 | 168,821 | 190,615 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | 538,741 | 402,348 | 421,661 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from Dividends Received | 908,698 | 0 | 375,948 |
Net cash used in investing activities | 908,698 | 0 | 375,948 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends and equivalents | (139,399) | (121,925) | (105,715) |
Purchases of common stock | (1,320,902) | (304,590) | (699,007) |
Other | 12,862 | 24,167 | 7,113 |
Net cash used in financing activities | (1,447,439) | (402,348) | (797,609) |
Change in cash and cash equivalents, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 6 | 6 | 6 |
Cash and cash equivalents, end of period | $ 6 | $ 6 | $ 6 |
Condensed Financial Information
Condensed Financial Information of The Registrant - Additional Information (Detail) - Parent Company [Member] $ in Millions | 12 Months Ended |
Jan. 03, 2021USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |
Adjustment To Equity In Net Deficit Of Subsidiaries | $ 1.1 |
Adjustment To Retained Deficit | $ 1.1 |