Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
Sep. 10, 2017 | Oct. 05, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 10, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DPZ | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Entity Central Index Key | 1,286,681 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,734,145 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 10, 2017 | Jan. 01, 2017 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 61,360 | $ 42,815 | |
Restricted cash and cash equivalents | 192,001 | 126,496 | |
Accounts receivable, net | 154,475 | 150,369 | |
Inventories | 37,093 | 40,181 | |
Prepaid expenses and other | 21,317 | 17,635 | |
Advertising fund assets, restricted | 126,340 | 118,377 | |
Total current assets | 592,586 | 495,873 | |
Property, plant and equipment: | |||
Land and buildings | 29,189 | 29,129 | |
Leasehold and other improvements | 126,718 | 120,726 | |
Equipment | 214,142 | 201,827 | |
Construction in progress | 5,714 | 7,816 | |
Property, plant and equipment, Gross | 375,763 | 359,498 | |
Accumulated depreciation and amortization | (236,086) | (220,964) | |
Property, plant and equipment, net | 139,677 | 138,534 | |
Other assets: | |||
Goodwill | 16,058 | 16,058 | |
Capitalized software, net | 48,219 | 40,256 | |
Other assets | 16,465 | 16,639 | |
Deferred income taxes | 3,230 | 8,935 | |
Total other assets | 83,972 | 81,888 | |
Total assets | 816,235 | 716,295 | |
Current liabilities: | |||
Current portion of long-term debt | 32,313 | 38,887 | |
Accounts payable | 109,756 | 111,510 | |
Insurance reserves | 17,285 | 16,742 | |
Dividends payable | 20,430 | 619 | |
Advertising fund liabilities | 126,340 | 118,377 | |
Other accrued liabilities | 92,406 | 117,563 | |
Total current liabilities | 398,530 | 403,698 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 3,128,048 | 2,148,990 | |
Insurance reserves | 34,292 | 27,141 | |
Other accrued liabilities | 20,709 | 19,609 | |
Total long-term liabilities | 3,183,049 | 2,195,740 | |
Stockholders' deficit: | |||
Common stock | 437 | 481 | |
Additional paid-in capital | 1,872 | 1,006 | |
Retained deficit | (2,766,231) | (1,881,520) | |
Accumulated other comprehensive loss | (1,422) | (3,110) | |
Total stockholders' deficit | (2,765,344) | (1,883,143) | |
Total liabilities and stockholders' deficit | $ 816,235 | $ 716,295 | |
[1] | Note: The balance sheet at January 1, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Revenues: | ||||
Revenue | $ 643,642 | $ 566,677 | $ 1,896,470 | $ 1,653,193 |
Cost of sales: | ||||
Cost of sales | 445,164 | 392,774 | 1,311,331 | 1,140,236 |
Operating margin | 198,478 | 173,903 | 585,139 | 512,957 |
General and administrative | 81,398 | 72,992 | 239,158 | 209,632 |
Income from operations | 117,080 | 100,911 | 345,981 | 303,325 |
Interest income | 612 | 83 | 999 | 556 |
Interest expense | (33,141) | (25,180) | (83,383) | (76,533) |
Income before provision for income taxes | 84,551 | 75,814 | 263,597 | 227,348 |
Provision for income taxes | 28,183 | 28,582 | 79,019 | 85,403 |
Net income | $ 56,368 | $ 47,232 | $ 184,578 | $ 141,945 |
Earnings per share: | ||||
Common stock-basic | $ 1.22 | $ 0.98 | $ 3.90 | $ 2.90 |
Common stock-diluted | 1.18 | 0.96 | 3.76 | 2.82 |
Dividends declared per share | $ 0.46 | $ 0.38 | $ 1.38 | $ 1.14 |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | ||||
Revenues: | ||||
Revenue | $ 112,905 | $ 100,966 | $ 338,880 | $ 295,243 |
Cost of sales: | ||||
Cost of sales | 86,814 | 77,221 | 263,038 | 223,771 |
Domestic Stores [Member] | Domestic Franchise [Member] | ||||
Revenues: | ||||
Revenue | 80,244 | 70,637 | 242,548 | 208,463 |
Supply Chain [Member] | ||||
Revenues: | ||||
Revenue | 402,143 | 355,036 | 1,180,800 | 1,029,990 |
Cost of sales: | ||||
Cost of sales | 358,350 | 315,553 | 1,048,293 | 916,465 |
International Franchise [Member] | ||||
Revenues: | ||||
Revenue | $ 48,350 | $ 40,038 | $ 134,242 | $ 119,497 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,368 | $ 47,232 | $ 184,578 | $ 141,945 |
Other comprehensive income (loss), before tax: | ||||
Currency translation adjustment | 1,406 | (186) | 1,688 | 927 |
Tax attributes of items in other comprehensive income (loss): | ||||
Currency translation adjustment | 173 | 33 | ||
Other comprehensive income (loss), net of tax | 1,406 | (13) | 1,688 | 960 |
Comprehensive income | $ 57,774 | $ 47,219 | $ 186,266 | $ 142,905 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | ||
Cash flows from operating activities: | |||
Net income | $ 184,578 | $ 141,945 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,054 | 25,460 | |
Losses on sale/disposal of assets | 648 | 473 | |
Amortization of debt issuance costs | 9,424 | 4,562 | |
Provision for deferred income taxes | 5,680 | 2,657 | |
Non-cash compensation expense | 14,271 | 12,344 | |
Other | 234 | (406) | |
Excess tax benefits from equity-based compensation | (20,430) | (41,479) | |
Changes in operating assets and liabilities | (2,321) | 17,061 | |
Net cash provided by operating activities | 222,138 | 162,617 | |
Cash flows from investing activities: | |||
Capital expenditures | (38,897) | (38,254) | |
Changes in restricted cash | (65,505) | 57,371 | |
Other | 327 | 2,989 | |
Net cash provided by (used in) investing activities | (104,075) | 22,106 | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,900,000 | 63,000 | |
Repayments of long-term debt and capital lease obligations | (920,093) | (77,592) | |
Proceeds from exercise of stock options | 4,014 | 12,324 | |
Excess tax benefits from equity-based compensation | 41,479 | ||
Purchases of common stock | (1,012,721) | (283,858) | |
Tax payments for restricted stock upon vesting | (9,386) | (5,605) | |
Payments of common stock dividends and equivalents | (44,630) | (37,548) | |
Cash paid for financing costs | (16,846) | 0 | |
Other | (205) | 0 | |
Net cash used in financing activities | (99,867) | (287,800) | |
Effect of exchange rate changes on cash and cash equivalents | 349 | (391) | |
Change in cash and cash equivalents | 18,545 | (103,468) | |
Cash and cash equivalents, at beginning of period | 42,815 | [1] | 133,449 |
Cash and cash equivalents, at end of period | $ 61,360 | $ 29,981 | |
[1] | Note: The balance sheet at January 1, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation
Basis of Presentation | 8 Months Ended |
Sep. 10, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended January 1, 2017 included in the Company’s 2016 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 28, 2017 (the “2016 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter ended September 10, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. |
Segment Information
Segment Information | 8 Months Ended |
Sep. 10, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which we refer to as Segment Income, for each of our reportable segments. Fiscal Quarters Ended September 10, 2017 and September 11, 2016 Domestic Supply International Intersegment Other Total Revenues 2017 $ 193,149 $ 433,575 $ 48,350 $ (31,432 ) $ — $ 643,642 2016 171,603 383,719 40,038 (28,683 ) — 566,677 Income from operations 2017 $ 67,892 $ 33,522 $ 37,972 N/A $ (22,306 ) $ 117,080 2016 59,251 31,401 31,036 N/A (20,777 ) 100,911 Segment Income 2017 $ 70,651 $ 36,227 $ 38,019 N/A $ (11,973 ) $ 132,924 2016 61,683 33,756 31,100 N/A (12,971 ) 113,568 Three Fiscal Quarters Ended September 10, 2017 and September 11, 2016 Domestic Supply International Intersegment Other Total Revenues 2017 $ 581,428 $ 1,274,306 $ 134,242 $ (93,506 ) $ — $ 1,896,470 2016 503,706 1,114,096 119,497 (84,106 ) — 1,653,193 Income from operations 2017 $ 199,515 $ 102,785 $ 106,748 N/A $ (63,067 ) $ 345,981 2016 176,401 89,044 92,981 N/A (55,101 ) 303,325 Segment Income 2017 $ 207,420 $ 110,614 $ 106,883 N/A $ (33,341 ) $ 391,576 2016 183,088 96,110 93,110 N/A (30,706 ) 341,602 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 10, September 11, September 10, September 11, Total Segment Income $ 132,924 $ 113,568 $ 391,576 $ 341,602 Depreciation and amortization (10,281 ) (8,704 ) (30,054 ) (25,460 ) Losses on sale/disposal of assets (303 ) (226 ) (648 ) (473 ) Non-cash compensation expense (4,638 ) (3,727 ) (14,271 ) (12,344 ) 2017 recapitalization-related expenses (622 ) — (622 ) — Income from operations 117,080 100,911 345,981 303,325 Interest income 612 83 999 556 Interest expense (33,141 ) (25,180 ) (83,383 ) (76,533 ) Income before provision for income taxes $ 84,551 $ 75,814 $ 263,597 $ 227,348 |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 10, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 10, September 11, September 10, September 11, Net income available to common stockholders—basic and diluted $ 56,368 $ 47,232 $ 184,578 $ 141,945 Basic weighted average number of shares 46,034,807 48,043,379 47,282,393 48,984,734 Earnings per share – basic $ 1.22 $ 0.98 $ 3.90 $ 2.90 Diluted weighted average number of shares 47,715,788 49,242,182 49,066,610 50,309,217 Earnings per share – diluted $ 1.18 $ 0.96 $ 3.76 $ 2.82 The denominators used in calculating diluted earnings per share for common stock for the third quarter of 2017 and three fiscal quarters of 2017 do not include 141,870 and 146,200 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2017 do not include 193,194 restricted performance shares, as the performance targets for these awards have not yet been met. The denominators used in calculating diluted earnings per share for common stock for the third quarter of 2016 and three fiscal quarters of 2016 do not include 95,475 and 306,855 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter of 2016 and three fiscal quarters of 2016 do not include 264,757 restricted performance shares as the performance targets for these awards had not yet been met. |
Stockholders' Deficit
Stockholders' Deficit | 8 Months Ended |
Sep. 10, 2017 | |
Equity [Abstract] | |
Stockholders' Deficit | 4. Stockholders’ Deficit The following table summarizes changes in Stockholders’ Deficit for the three fiscal quarters of 2017. Additional Paid-in Capital Accumulated Other Comprehensive Loss Common Stock Retained Deficit Shares Amount Balance at January 1, 2017 48,100,143 $ 481 $ 1,006 $ (1,881,520 ) $ (3,110 ) Net income — — — 184,578 — Common stock dividends and equivalents — — — (64,441 ) — Issuance of common stock, net 68,599 1 — — — Tax payments for restricted stock upon vesting (48,753 ) (1 ) (9,385 ) — — Purchases of common stock (4,639,223 ) (46 ) (7,827 ) (1,004,848 ) — Exercise of stock options 250,253 2 4,012 — — Non-cash compensation expense — — 14,271 — — Currency translation adjustment — — — — 1,688 Other — — (205 ) — — Balance at September 10, 2017 43,731,019 $ 437 $ 1,872 $ (2,766,231 ) $ (1,422 ) |
Dividends
Dividends | 8 Months Ended |
Sep. 10, 2017 | |
Statement of Stockholders' Equity [Abstract] | |
Dividends | 5. Dividends During the third quarter of 2017, on July 19, 2017, the Company’s Board of Directors declared a $0.46 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2017 which was paid on September 29, 2017. The Company had approximately $20.4 million accrued for common stock dividends at September 10, 2017. Subsequent to the third quarter, on October 11, 2017, the Company’s Board of Directors declared a $0.46 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2017 to be paid on December 29, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
Sep. 10, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 6. Accumulated Other Comprehensive Loss The approximately $1.4 million of accumulated other comprehensive loss at September 10, 2017 and the approximately $3.1 million of accumulated other comprehensive loss at January 1, 2017 represent currency translation adjustments, net of tax. There were no reclassifications out of accumulated other comprehensive loss to net income in the three fiscal quarters of 2017 or the three fiscal quarters of 2016. |
Recapitalization
Recapitalization | 8 Months Ended |
Sep. 10, 2017 | |
Debt Disclosure [Abstract] | |
Recapitalization | 7. Recapitalization On July 24, 2017, the Company completed a recapitalization (the “2017 Recapitalization”) in which certain of the Company’s subsidiaries issued new notes pursuant to an asset-backed securitization. The new notes consist of $300.0 million Series 2017-1 Floating Rate Senior Secured Notes, Class A-2-I with an anticipated term of five years (the “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 “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 “Ten-year Fixed Rate Notes” and, collectively with the Floating Rate Notes and the Five-year Fixed Rate Notes, the “2017 Notes”) in an offering exempt from registration under the Securities Act of 1933, as amended. The interest rate on the Floating Rate Notes is payable at a rate equal to LIBOR plus 125 basis points. The 2017 Notes have scheduled principal payments of $4.8 million in 2017, $19.0 million in each of 2018 through 2021, $871.8 million in 2022, $10.0 million in each of 2023 through 2026, and $907.5 million in 2027. Concurrently, the Company also issued a new variable funding note facility which allows for advances of up to $175.0 million of Series 2017-1 Variable Funding Senior Secured Notes, Class A-1 Notes and certain other credit instruments, including letters of credit (the “Variable Funding Notes”). The Variable Funding Notes were undrawn on the closing date. The Company’s previous variable funding note facility was canceled. Gross proceeds from the issuance of the 2017 Notes were $1.9 billion. A portion of proceeds from the 2017 Recapitalization was used to repay the remaining $910.5 million in outstanding principal and interest under the Company’s 2012 fixed rate notes, pre-fund a portion of the principal and interest payable on the 2017 Notes and pay transaction fees and expenses. In connection with the repayment of the 2012 fixed rate notes, the Company expensed approximately $5.5 million for the remaining unamortized debt issuance costs associated with these notes. Additionally, in connection with the 2017 Recapitalization, the Company capitalized $16.8 million of debt issuance costs, which are being amortized into interest expense over the five- and ten-year expected terms of the 2017 Notes. Additionally, on July 27, 2017, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $1.25 billion of the Company’s common stock. This repurchase program replaces the remaining availability of approximately $136.4 million under the Company’s previously approved $250.0 million share repurchase program that was authorized by the Board on May 25, 2016. On August 2, 2017, 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 August 3, 2017, as part of its new $1.25 billion share repurchase program, the Company used a portion of the proceeds from the 2017 Recapitalization to pay the counterparty $1.0 billion in cash and received 4,558,863 shares of the Company’s common stock. Final settlement of the ASR Agreement occurred on October 11, 2017. In connection with the ASR Agreement, the Company will receive and retire a total of 5,218,670 shares of its common stock at an average price of $191.62, including 4,558,863 shares of its common stock received and retired during the third quarter. |
Open Market Share Repurchase Pr
Open Market Share Repurchase Program | 8 Months Ended |
Sep. 10, 2017 | |
Equity [Abstract] | |
Open Market Share Repurchase Program | 8. Open Market Share Repurchase Program In connection with the ASR Agreement discussed above, the Company received and retired 4,558,863 shares of its common stock under its Board of Directors-approved open market share repurchase program in the third quarter of 2017. During the three fiscal quarters of 2017, the Company repurchased and retired 4,639,223 shares of its common stock under its Board of Directors-approved open market share repurchase program for a total of approximately $1.01 billion. As discussed above, in connection with the ASR Agreement, the Company will receive and retire a total of 5,218,670 shares of its common stock at an average price of $191.62, including 4,558,863 shares of its common stock received and retired during the third quarter. As of September 10, 2017, the end of the third quarter, the Company had a total remaining authorized amount for share repurchases of approximately $250.0 million. During the three fiscal quarters of 2016, the Company repurchased and retired 2,714,322 shares of its common stock, including 2,257,386 shares repurchased in open market transactions for approximately $283.9 million and 456,936 shares received at the final settlement of the previously announced $600.0 million ASR program entered into in November 2015. |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
Sep. 10, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. 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. 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 following tables summarize the carrying amounts and fair values of certain assets at September 10, 2017 and January 1, 2017: At September 10, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 48,122 $ 48,122 $ — $ — Restricted cash equivalents 93,880 93,880 — — Investments in marketable securities 7,203 7,203 — — At January 1, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,017 $ 7,017 $ — $ — Restricted cash equivalents 69,113 69,113 — — Investments in marketable securities 7,260 7,260 — — Management estimated the approximate fair values of the 2012 fixed rate notes, the 2015 fixed rate notes, and the 2017 Notes as follows (in thousands): September 10, 2017 January 1, 2017 Principal Amount Fair Value Principal Amount Fair Value 2012 Seven-Year Fixed Rate Notes $ — $ — $ 916,650 $ 932,233 2015 Five-Year Fixed Rate Notes 493,750 493,750 495,000 485,595 2015 Ten-Year Fixed Rate Notes 790,000 805,800 792,000 765,864 2017 Five-Year Fixed Rate Notes 600,000 600,600 — — 2017 Ten-Year Fixed Rate Notes 1,000,000 1,027,000 — — 2017 Five-Year Floating Rate Notes 300,000 299,700 — — The fixed and floating rate notes 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 above. |
Legal Matters
Legal Matters | 8 Months Ended |
Sep. 10, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 10. Legal Matters On February 14, 2011, Domino’s Pizza LLC was named as a defendant in a lawsuit along with Fischler Enterprises of C.F., Inc., a franchisee, and Jeffrey S. Kidd, the franchisee’s delivery driver, filed by Yvonne Wiederhold, the plaintiff, as Personal Representative of the Estate of Richard E. Wiederhold, deceased. The case involved a traffic accident in which the franchisee’s delivery driver is alleged to have caused an accident involving a vehicle driven by Richard Wiederhold. Mr. Wiederhold sustained spinal injuries resulting in quadriplegia and passed away several months after the accident. The jury returned a $10.1 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 90% liable (after certain offsets and other deductions the final verdict was $8.9 million). In the second quarter of 2016, the trial court ruled on all post-judgment motions and entered the judgment. The Company denies liability and in the third quarter of 2016 filed an appeal of the verdict on a variety of grounds. The Company continues to deny liability in this matter. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 8 Months Ended |
Sep. 10, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 11. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $3.6 million at September 10, 2017 and $3.8 million at January 1, 2017. |
New Accounting Pronouncements
New Accounting Pronouncements | 8 Months Ended |
Sep. 10, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 12. New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), Leases (Topic 842) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) The amendments in ASU 2016-08 clarify how an entity should identify the specified good or service for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. ASU 2016-11 rescinds several SEC Staff Announcements that are codified in Topic 605, including, among other items, guidance relating to accounting for consideration given by a vendor to a customer, as well as accounting for shipping and handling fees and freight services. ASU 2016-12 provides clarification to Topic 606 on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. ASU 2016-12 clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. Additionally, ASU 2016-20 clarifies certain narrow aspects within Topic 606 including its scope, contract cost accounting, and disclosures. The new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09, which is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the overall impact that ASU 2014-09 and its related amendments will have on the Company’s consolidated financial statements, as well as the expected timing and method of adoption effective January 1, 2018. Based on a preliminary assessment, the adoption of this guidance is not expected to have a material impact on our recognition of sales from Company-owned stores, ongoing royalty fees which are based on a percentage of franchise sales, or revenues from our supply chain centers. The Company is continuing to evaluate the impact of the adoption of this guidance on the recognition of less significant revenues such as development fees, franchise fees, and technology fees. The Company is currently evaluating whether the standards will require a gross presentation on the consolidated statement of income for contributions received by and disbursements made by Domino’s National Advertising Fund Inc. (“DNAF”), our consolidated not-for-profit subsidiary. DNAF exists solely for the purpose of promoting the Domino’s Pizza brand in the U.S. The Company currently presents the restricted assets and liabilities of the DNAF in its condensed consolidated balance sheets and, under existing accounting guidance, has determined that it acts as an agent in regard to franchise store contributions and disbursements. Accordingly, these franchisee contributions and disbursements are presented net in the condensed consolidated statements of income. See Note 1 to the consolidated financial statements in the 2016 Form 10-K for additional details. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting As a result, excess tax benefits or deficiencies from equity-based compensation activity are reflected in the consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in the consolidated statement of stockholders’ deficit. The Company also elected to account for forfeitures as they occur, rather than to use an estimate of expected forfeitures for financial statement reporting purposes. The adoption of ASU 2016-09 resulted in a decrease in our provision for income taxes of $3.5 million in the third quarter of 2017 and $20.4 million in the three fiscal quarters of 2017. This represents a decrease in the Company’s effective tax rate of 4.2 percentage points for the third quarter of 2017 and 7.8 percentage points for the three fiscal quarters of 2017, primarily due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The Company’s election to account for forfeitures as they occur had an immaterial impact on its equity-based compensation expense. The Company adopted the cash flow presentation prospectively, and accordingly, excess tax benefits from equity-based compensation of $20.4 million in the three fiscal quarters of 2017 are presented as an operating activity, while $41.5 million of excess tax benefits from equity-based compensation in the three fiscal quarters of 2016 is presented as a financing activity. The presentation requirements for cash flows related to taxes paid for restricted stock upon vesting had no impact on our consolidated statements of cash flows for any of the periods presented because such cash flows have historically been presented as a financing activity. |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 10, 2017 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which we refer to as Segment Income, for each of our reportable segments. Fiscal Quarters Ended September 10, 2017 and September 11, 2016 Domestic Supply International Intersegment Other Total Revenues 2017 $ 193,149 $ 433,575 $ 48,350 $ (31,432 ) $ — $ 643,642 2016 171,603 383,719 40,038 (28,683 ) — 566,677 Income from operations 2017 $ 67,892 $ 33,522 $ 37,972 N/A $ (22,306 ) $ 117,080 2016 59,251 31,401 31,036 N/A (20,777 ) 100,911 Segment Income 2017 $ 70,651 $ 36,227 $ 38,019 N/A $ (11,973 ) $ 132,924 2016 61,683 33,756 31,100 N/A (12,971 ) 113,568 Three Fiscal Quarters Ended September 10, 2017 and September 11, 2016 Domestic Supply International Intersegment Other Total Revenues 2017 $ 581,428 $ 1,274,306 $ 134,242 $ (93,506 ) $ — $ 1,896,470 2016 503,706 1,114,096 119,497 (84,106 ) — 1,653,193 Income from operations 2017 $ 199,515 $ 102,785 $ 106,748 N/A $ (63,067 ) $ 345,981 2016 176,401 89,044 92,981 N/A (55,101 ) 303,325 Segment Income 2017 $ 207,420 $ 110,614 $ 106,883 N/A $ (33,341 ) $ 391,576 2016 183,088 96,110 93,110 N/A (30,706 ) 341,602 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 10, September 11, September 10, September 11, Total Segment Income $ 132,924 $ 113,568 $ 391,576 $ 341,602 Depreciation and amortization (10,281 ) (8,704 ) (30,054 ) (25,460 ) Losses on sale/disposal of assets (303 ) (226 ) (648 ) (473 ) Non-cash compensation expense (4,638 ) (3,727 ) (14,271 ) (12,344 ) 2017 recapitalization-related expenses (622 ) — (622 ) — Income from operations 117,080 100,911 345,981 303,325 Interest income 612 83 999 556 Interest expense (33,141 ) (25,180 ) (83,383 ) (76,533 ) Income before provision for income taxes $ 84,551 $ 75,814 $ 263,597 $ 227,348 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 10, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Three Fiscal Quarters Ended September 10, September 11, September 10, September 11, Net income available to common stockholders—basic and diluted $ 56,368 $ 47,232 $ 184,578 $ 141,945 Basic weighted average number of shares 46,034,807 48,043,379 47,282,393 48,984,734 Earnings per share – basic $ 1.22 $ 0.98 $ 3.90 $ 2.90 Diluted weighted average number of shares 47,715,788 49,242,182 49,066,610 50,309,217 Earnings per share – diluted $ 1.18 $ 0.96 $ 3.76 $ 2.82 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 8 Months Ended |
Sep. 10, 2017 | |
Equity [Abstract] | |
Changes in Stockholders' Deficit | Additional Paid-in Capital Accumulated Other Comprehensive Loss Common Stock Retained Deficit Shares Amount Balance at January 1, 2017 48,100,143 $ 481 $ 1,006 $ (1,881,520 ) $ (3,110 ) Net income — — — 184,578 — Common stock dividends and equivalents — — — (64,441 ) — Issuance of common stock, net 68,599 1 — — — Tax payments for restricted stock upon vesting (48,753 ) (1 ) (9,385 ) — — Purchases of common stock (4,639,223 ) (46 ) (7,827 ) (1,004,848 ) — Exercise of stock options 250,253 2 4,012 — — Non-cash compensation expense — — 14,271 — — Currency translation adjustment — — — — 1,688 Other — — (205 ) — — Balance at September 10, 2017 43,731,019 $ 437 $ 1,872 $ (2,766,231 ) $ (1,422 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
Sep. 10, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | 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 following tables summarize the carrying amounts and fair values of certain assets at September 10, 2017 and January 1, 2017: At September 10, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 48,122 $ 48,122 $ — $ — Restricted cash equivalents 93,880 93,880 — — Investments in marketable securities 7,203 7,203 — — At January 1, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,017 $ 7,017 $ — $ — Restricted cash equivalents 69,113 69,113 — — Investments in marketable securities 7,260 7,260 — — |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2012 fixed rate notes, the 2015 fixed rate notes, and the 2017 Notes as follows (in thousands): September 10, 2017 January 1, 2017 Principal Amount Fair Value Principal Amount Fair Value 2012 Seven-Year Fixed Rate Notes $ — $ — $ 916,650 $ 932,233 2015 Five-Year Fixed Rate Notes 493,750 493,750 495,000 485,595 2015 Ten-Year Fixed Rate Notes 790,000 805,800 792,000 765,864 2017 Five-Year Fixed Rate Notes 600,000 600,600 — — 2017 Ten-Year Fixed Rate Notes 1,000,000 1,027,000 — — 2017 Five-Year Floating Rate Notes 300,000 299,700 — — |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 643,642 | $ 566,677 | $ 1,896,470 | $ 1,653,193 |
Income from operations | 117,080 | 100,911 | 345,981 | 303,325 |
Segment Income | 132,924 | 113,568 | 391,576 | 341,602 |
Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 402,143 | 355,036 | 1,180,800 | 1,029,990 |
International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,350 | 40,038 | 134,242 | 119,497 |
Operating Segments [Member] | Domestic Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 193,149 | 171,603 | 581,428 | 503,706 |
Income from operations | 67,892 | 59,251 | 199,515 | 176,401 |
Segment Income | 70,651 | 61,683 | 207,420 | 183,088 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 433,575 | 383,719 | 1,274,306 | 1,114,096 |
Income from operations | 33,522 | 31,401 | 102,785 | 89,044 |
Segment Income | 36,227 | 33,756 | 110,614 | 96,110 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,350 | 40,038 | 134,242 | 119,497 |
Income from operations | 37,972 | 31,036 | 106,748 | 92,981 |
Segment Income | 38,019 | 31,100 | 106,883 | 93,110 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (31,432) | (28,683) | (93,506) | (84,106) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Income from operations | (22,306) | (20,777) | (63,067) | (55,101) |
Segment Income | $ (11,973) | $ (12,971) | $ (33,341) | $ (30,706) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Segment Reconciliation [Abstract] | ||||
Total Segment Income | $ 132,924 | $ 113,568 | $ 391,576 | $ 341,602 |
Depreciation and amortization | (10,281) | (8,704) | (30,054) | (25,460) |
Losses on sale/disposal of assets | (303) | (226) | (648) | (473) |
Non-cash compensation expense | (4,638) | (3,727) | (14,271) | (12,344) |
2017 recapitalization-related expenses | (622) | 0 | (622) | 0 |
Income from operations | 117,080 | 100,911 | 345,981 | 303,325 |
Interest income | 612 | 83 | 999 | 556 |
Interest expense | (33,141) | (25,180) | (83,383) | (76,533) |
Income before provision for income taxes | $ 84,551 | $ 75,814 | $ 263,597 | $ 227,348 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders-basic and diluted | $ 56,368 | $ 47,232 | $ 184,578 | $ 141,945 |
Basic weighted average number of shares | 46,034,807 | 48,043,379 | 47,282,393 | 48,984,734 |
Earnings per share - basic | $ 1.22 | $ 0.98 | $ 3.90 | $ 2.90 |
Diluted weighted average number of shares | 47,715,788 | 49,242,182 | 49,066,610 | 50,309,217 |
Earnings per share - diluted | $ 1.18 | $ 0.96 | $ 3.76 | $ 2.82 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 141,870 | 95,475 | 146,200 | 306,855 |
Restricted Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 193,194 | 264,757 | 193,194 | 264,757 |
Changes in Stockholders' Defici
Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | ||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | [1] | $ (1,883,143) | |||
Net income | $ 56,368 | $ 47,232 | 184,578 | $ 141,945 | |
Ending Balance | $ (2,765,344) | $ (2,765,344) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance, (in shares) | 48,100,143 | ||||
Beginning Balance | $ 481 | ||||
Common stock dividends and equivalents, (in shares) | 0 | ||||
Issuance of common stock, net, (in shares) | 68,599 | ||||
Issuance of common stock, net | $ 1 | ||||
Tax payments for restricted stock upon vesting, (in shares) | (48,753) | ||||
Tax payments for restricted stock upon vesting | $ (1) | ||||
Purchases of common stock, (in shares) | (4,639,223) | ||||
Purchases of common stock | $ (46) | ||||
Exercise of stock options, (in shares) | 250,253 | ||||
Exercise of stock options | $ 2 | ||||
Ending Balance, (in shares) | 43,731,019 | 43,731,019 | |||
Ending Balance | $ 437 | $ 437 | |||
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | $ 1,006 | ||||
Common stock dividends and equivalents, (in shares) | 0 | ||||
Tax payments for restricted stock upon vesting | $ (9,385) | ||||
Purchases of common stock | (7,827) | ||||
Exercise of stock options | 4,012 | ||||
Non-cash compensation expense | 14,271 | ||||
Other | (205) | ||||
Ending Balance | 1,872 | 1,872 | |||
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (1,881,520) | ||||
Net income | $ 184,578 | ||||
Common stock dividends and equivalents, (in shares) | 0 | ||||
Common stock dividends and equivalents | $ (64,441) | ||||
Purchases of common stock | (1,004,848) | ||||
Ending Balance | (2,766,231) | (2,766,231) | |||
Accumulated Other Comprehensive Loss [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | $ (3,110) | ||||
Common stock dividends and equivalents, (in shares) | 0 | ||||
Currency translation adjustment | $ 1,688 | ||||
Ending Balance | $ (1,422) | $ (1,422) | |||
[1] | Note: The balance sheet at January 1, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 11, 2017 | Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | Jan. 01, 2017 | [1] |
Dividends Payable [Line Items] | |||||||
Dividends declared per share | $ 0.46 | $ 0.38 | $ 1.38 | $ 1.14 | |||
Common stock dividends accrued | $ 20,430 | $ 20,430 | $ 619 | ||||
Dividend declared date | Jul. 19, 2017 | ||||||
Record date of dividend | Sep. 15, 2017 | ||||||
Dividend payable date | Sep. 29, 2017 | ||||||
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividends declared per share | $ 0.46 | ||||||
Record date of dividend | Dec. 15, 2017 | ||||||
Dividend payable date | Dec. 29, 2017 | ||||||
[1] | Note: The balance sheet at January 1, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) | 8 Months Ended | |||
Sep. 10, 2017 | Sep. 11, 2016 | Jan. 01, 2017 | [1] | |
Equity [Abstract] | ||||
Accumulated other comprehensive loss | $ (1,422,000) | $ (3,110,000) | ||
Reclassification losses from accumulated other comprehensive loss to net income | $ 0 | $ 0 | ||
[1] | Note: The balance sheet at January 1, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Recapitalization - Additional I
Recapitalization - Additional Information (Detail) - USD ($) | Oct. 11, 2017 | Aug. 03, 2017 | Jul. 24, 2017 | Sep. 10, 2017 | Sep. 10, 2017 | Sep. 11, 2016 | Aug. 02, 2017 | Jul. 27, 2017 | May 25, 2016 |
Debt Instrument [Line Items] | |||||||||
Share repurchase program, authorized amount | $ 250,000,000 | ||||||||
Stock repurchase program, remaining amount | $ 250,000,000 | $ 250,000,000 | $ 136,400,000 | ||||||
Accelerated share repurchase, agreement amount | $ 1,000,000,000 | ||||||||
Payments for purchases of common stock | $ 1,012,721,000 | $ 283,858,000 | |||||||
Common stock repurchased and retired (in shares) | 4,558,863 | 4,639,223 | 2,714,322 | ||||||
ASR Agreement on August 2 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 4,558,863 | ||||||||
Counterparty [Member] | ASR Agreement on August 2 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Accelerated share repurchase, share amount | 4,558,863 | ||||||||
Class A-2-I Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Deferred financing costs, amortization period | 5 years | ||||||||
Class A-2-II Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Deferred financing costs, amortization period | 10 years | ||||||||
Subsequent Event [Member] | ASR Agreement on August 2 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 5,218,670 | ||||||||
Common stock repurchased and retired during period, average price | $ 191.62 | ||||||||
2017 Recapitalization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate description | The interest rate on the Floating Rate Notes is payable at a rate equal to LIBOR plus 125 basis points. | ||||||||
Gross proceeds from the issuance of debt | $ 1,900,000,000 | ||||||||
Debt issuance costs | $ 16,800,000 | $ 16,800,000 | |||||||
Payments for purchases of common stock | $ 1,000,000,000 | ||||||||
2017 Recapitalization [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Share repurchase program, authorized amount | $ 1,250,000,000 | ||||||||
2017 Recapitalization [Member] | Class A-2-I, Series 2017-1 Floating Rate Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 300,000,000 | ||||||||
Debt instrument, term | 5 years | ||||||||
2017 Recapitalization [Member] | Class A-2-I, Series 2017-1 Floating Rate Senior Secured Notes [Member] | Libor Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread | 1.25% | ||||||||
2017 Recapitalization [Member] | Class A-2-II, Series 2017-1 3.082% Fixed Rate Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 600,000,000 | ||||||||
Debt instrument, term | 5 years | ||||||||
Debt instrument, stated percentage | 3.082% | ||||||||
2017 Recapitalization [Member] | Class A-2-III, Series 2017-1 4.118% Fixed Rate Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 1,000,000,000 | ||||||||
Debt instrument, term | 10 years | ||||||||
Debt instrument, stated percentage | 4.118% | ||||||||
2017 Recapitalization [Member] | 2017 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Scheduled principal payments in year 2017 | 4,800,000 | 4,800,000 | |||||||
Scheduled principal payments in year 2018 | 19,000,000 | 19,000,000 | |||||||
Scheduled principal payments in year 2019 | 19,000,000 | 19,000,000 | |||||||
Scheduled principal payments in year 2020 | 19,000,000 | 19,000,000 | |||||||
Scheduled principal payments in year 2021 | 19,000,000 | 19,000,000 | |||||||
Scheduled principal payments in year 2022 | 871,800,000 | 871,800,000 | |||||||
Scheduled principal payments in year 2023 | 10,000,000 | 10,000,000 | |||||||
Scheduled principal payments in year 2024 | 10,000,000 | 10,000,000 | |||||||
Scheduled principal payments in year 2025 | 10,000,000 | 10,000,000 | |||||||
Scheduled principal payments in year 2026 | 10,000,000 | 10,000,000 | |||||||
Scheduled principal payments in year 2027 | 907,500,000 | 907,500,000 | |||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable funding notes | $ 175,000,000 | ||||||||
2012 Recapitalization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of principal and interest | 910,500,000 | ||||||||
Remaining unamortized debt issuance costs expensed by company | $ 5,500,000 | $ 5,500,000 |
Open Market Share Repurchase 30
Open Market Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 11, 2017 | Sep. 10, 2017 | Sep. 10, 2017 | Sep. 11, 2016 | Jul. 27, 2017 |
Share Repurchases [Line Items] | |||||
Common stock repurchased and retired (in shares) | 4,558,863 | 4,639,223 | 2,714,322 | ||
Payments for purchases of common stock | $ 1,012,721 | $ 283,858 | |||
Stock repurchase remaining authorized repurchase amount | $ 250,000 | $ 250,000 | $ 136,400 | ||
Open Market Purchases [Member] | |||||
Share Repurchases [Line Items] | |||||
Common stock repurchased and retired (in shares) | 2,257,386 | ||||
Payments for purchases of common stock | $ 283,858 | ||||
ASR Agreement on October 27 2015 [Member] | |||||
Share Repurchases [Line Items] | |||||
Common stock repurchased and retired (in shares) | 456,936 | ||||
Accelerated share repurchase agreement | $ 600,000 | ||||
ASR Agreement on August 2 2017 [Member] | |||||
Share Repurchases [Line Items] | |||||
Common stock repurchased and retired (in shares) | 4,558,863 | ||||
ASR Agreement on August 2 2017 [Member] | Subsequent Event [Member] | |||||
Share Repurchases [Line Items] | |||||
Common stock repurchased and retired (in shares) | 5,218,670 | ||||
Common stock repurchased and retired during period, average price | $ 191.62 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Sep. 10, 2017 | Jan. 01, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 48,122 | $ 7,017 |
Restricted cash equivalents, carrying amount | 93,880 | 69,113 |
Investments in marketable securities, carrying amount | 7,203 | 7,260 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, fair value | 48,122 | 7,017 |
Restricted cash equivalents, fair value | 93,880 | 69,113 |
Investments in marketable securities, carrying amount | $ 7,203 | $ 7,260 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Sep. 10, 2017 | Jan. 01, 2017 |
2012 Seven Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 916,650 | |
Fair Value | 932,233 | |
2015 Class Five-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 493,750 | 495,000 |
Fair Value | 493,750 | 485,595 |
2015 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 790,000 | 792,000 |
Fair Value | 805,800 | $ 765,864 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 600,000 | |
Fair Value | 600,600 | |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 1,000,000 | |
Fair Value | 1,027,000 | |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 300,000 | |
Fair Value | $ 299,700 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) - Yvonne Wiederhold [Member] $ in Millions | Feb. 14, 2011USD ($) |
Legal Settlement By Party [Line Items] | |
Amount delivered for plaintiff | $ 10.1 |
Percentage liable by company for plaintiff | 90.00% |
Litigation settlement, amount | $ 8.9 |
Supplemental Disclosures of C34
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Sep. 10, 2017 | Jan. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accruals for capital expenditures related to non-cash investing activities | $ 3.6 | $ 3.8 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 10, 2017 | Sep. 11, 2016 | Sep. 10, 2017 | Sep. 11, 2016 | |
Provision for income taxes | $ 28,183 | $ 28,582 | $ 79,019 | $ 85,403 |
Tax impact from equity-based compensation | 20,430 | 41,479 | ||
Tax impact from equity-based compensation | 41,479 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Provision for income taxes | $ (3,500) | $ (20,400) | ||
Effective tax rate percentage decrease | (4.20%) | (7.80%) | ||
Tax impact from equity-based compensation | $ 20,400 | |||
Tax impact from equity-based compensation | $ 41,500 |