Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | |
Mar. 29, 2020 | May 18, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35625 | |
Entity Registrant Name | Bloomin' Brands, Inc. | |
Entity Incorporation, State | DE | |
Entity Tax Identification Number | 20-8023465 | |
Entity Address Line One | 2202 North West Shore Boulevard | |
Entity Address Line Two | Suite 500 | |
Entity Address City | Tampa | |
Entity Address State | FL | |
Entity Address Postal Zip Code | 33607 | |
City Area Code | 813 | |
Local Phone Number | 282-1225 | |
Title of 12(b) Security | Common Stock | |
Security Trading Currency | USD | |
Par Value Per Share | $ 0.01 | |
Trading Symbol | BLMN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 87,486,017 | |
Entity Central Index Key | 0001546417 | |
Current Fiscal Year End Date | --12-27 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 |
Current assets | ||
Cash and cash equivalents | $ 403,395 | $ 67,145 |
Inventories | 68,087 | 86,861 |
Other current assets, net | 100,964 | 186,462 |
Total current assets | 572,446 | 340,468 |
Property, fixtures and equipment, net | 996,091 | 1,036,077 |
Operating lease right-of-use assets | 1,249,750 | 1,266,548 |
Goodwill | 282,628 | 288,439 |
Intangible assets, net | 468,082 | 470,615 |
Deferred income tax assets, net | 95,870 | 73,426 |
Other assets, net | 101,734 | 117,110 |
Total assets | 3,766,601 | 3,592,683 |
Current liabilities | ||
Accounts payable | 141,221 | 174,877 |
Accrued and other current liabilities | 378,357 | 391,451 |
Unearned revenue | 289,085 | 369,282 |
Current portion of long-term debt | 29,367 | 26,411 |
Total current liabilities | 838,030 | 962,021 |
Non-current operating lease liabilities | 1,281,372 | 1,279,051 |
Deferred income tax liabilities | 9,151 | 13,777 |
Long-term debt, net | 1,389,273 | 1,022,293 |
Other long-term liabilities, net | 148,632 | 138,060 |
Total liabilities | 3,666,458 | 3,415,202 |
Commitments and contingencies | ||
Bloomin’ Brands stockholders’ equity | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 29, 2020 and December 29, 2019 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 87,416,867 and 86,945,869 shares issued and outstanding as of March 29, 2020 and December 29, 2019, respectively | 874 | 869 |
Additional paid-in capital | 1,074,081 | 1,094,338 |
Accumulated deficit | (793,992) | (755,089) |
Accumulated other comprehensive loss | (189,013) | (169,776) |
Total Bloomin’ Brands stockholders’ equity | 91,950 | 170,342 |
Noncontrolling interests | 8,193 | 7,139 |
Total stockholders’ equity | 100,143 | 177,481 |
Total liabilities and stockholders’ equity | $ 3,766,601 | $ 3,592,683 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 29, 2020 | Dec. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 87,416,867 | 86,945,869 |
Common stock, shares outstanding (in shares) | 87,416,867 | 86,945,869 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Revenues | ||
Restaurant sales, franchise and other revenues | $ 1,008,337 | $ 1,128,131 |
Costs and expenses | ||
Cost of sales | 319,693 | 352,111 |
Labor and other related | 309,269 | 319,015 |
Other restaurant operating | 246,555 | 250,854 |
Depreciation and amortization | 48,268 | 49,482 |
General and administrative | 84,802 | 70,589 |
Provision for impaired assets and restaurant closings | 41,318 | 3,586 |
Total costs and expenses | 1,049,905 | 1,045,637 |
(Loss) income from operations | (41,568) | 82,494 |
Other expense, net | (793) | (168) |
Interest expense, net | (11,708) | (11,181) |
(Loss) income before (benefit) provision for income taxes | (54,069) | 71,145 |
(Benefit) provision for income taxes | (19,655) | 5,496 |
Net (loss) income | (34,414) | 65,649 |
Less: net income attributable to noncontrolling interests | 197 | 1,349 |
Net (loss) income attributable to Bloomin’ Brands | (34,611) | 64,300 |
Redemption of preferred stock in excess of carrying value | (3,496) | 0 |
Net (loss) income attributable to common stockholders | (38,107) | 64,300 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (7,961) | 5,755 |
Unrealized loss on derivatives, net of tax | (13,336) | (4,381) |
Reclassification of adjustment for loss (gain) on derivatives included in Net (loss) income, net of tax | 1,396 | (364) |
Comprehensive (loss) income | (54,315) | 66,659 |
Less: comprehensive (loss) income attributable to noncontrolling interests | (467) | 1,257 |
Comprehensive (loss) income attributable to Bloomin’ Brands | $ (53,848) | $ 65,402 |
(Loss) earnings per share attributable to common stockholders: | ||
Basic (loss) earnings per share | $ (0.44) | $ 0.70 |
Diluted (loss) earnings per share | $ (0.44) | $ 0.69 |
Weighted average common shares outstanding: | ||
Basic (shares) | 87,129 | 91,415 |
Diluted (shares) | 87,129 | 92,661 |
Restaurant sales [Member] | ||
Revenues | ||
Restaurant sales, franchise and other revenues | $ 996,237 | $ 1,111,642 |
Franchise and other revenues [Member] | ||
Revenues | ||
Restaurant sales, franchise and other revenues | $ 12,100 | $ 16,489 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive loss [Member] | Non-controlling interests [Member] | |
Balance (in shares) at Dec. 30, 2018 | 91,272,000 | ||||||
Balance at Dec. 30, 2018 | $ 54,817 | $ 913 | $ 1,107,582 | $ (920,010) | $ (142,755) | $ 9,087 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 65,649 | 64,300 | 1,349 | ||||
Other comprehensive (loss) income, net of tax | 1,010 | 1,102 | (92) | ||||
Cash dividends declared, per common share | (9,140) | (9,140) | |||||
Stock-based compensation | 3,993 | 3,993 | |||||
Common stock issued under stock plans (in shares) | [1] | 375,000 | |||||
Common stock issued under stock plans | [1] | (3,086) | $ 3 | (3,089) | |||
Distributions to noncontrolling interests | (2,429) | (2,429) | |||||
Contributions from noncontrolling interests | 264 | 264 | |||||
Balance (in shares) at Mar. 31, 2019 | 91,647,000 | ||||||
Balance at Mar. 31, 2019 | $ 252,363 | $ 916 | 1,099,346 | (714,425) | (141,653) | 8,179 | |
Balance (in shares) at Dec. 29, 2019 | 86,945,869 | 86,946,000 | |||||
Balance at Dec. 29, 2019 | $ 177,481 | $ 869 | 1,094,338 | (755,089) | (169,776) | 7,139 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (34,414) | (34,611) | 197 | ||||
Other comprehensive (loss) income, net of tax | (19,901) | (19,754) | (147) | ||||
Cash dividends declared, per common share | (17,480) | (17,480) | |||||
Stock-based compensation | 3,289 | 3,289 | |||||
Consideration for preferred stock in excess of carrying value, net of tax | (1,718) | (3,496) | 517 | 1,261 | |||
Common stock issued under stock plans (in shares) | [1] | 471,000 | |||||
Common stock issued under stock plans | [1] | (2,508) | $ 5 | (2,513) | |||
Purchase of noncontrolling interests | (57) | (57) | |||||
Distributions to noncontrolling interests | (310) | (310) | |||||
Contributions from noncontrolling interests | $ 53 | 53 | |||||
Balance (in shares) at Mar. 29, 2020 | 87,416,867 | 87,417,000 | |||||
Balance at Mar. 29, 2020 | $ 100,143 | $ 874 | $ 1,074,081 | $ (793,992) | $ (189,013) | $ 8,193 | |
[1] | Net of forfeitures and shares withheld for employee taxes. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.2 | $ 0.1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Cash flows provided by operating activities: | ||
Net (loss) income | $ (34,414) | $ 65,649 |
Adjustments to reconcile Net (loss) income to cash provided by operating activities: | ||
Depreciation and amortization | 48,268 | 49,482 |
Amortization of deferred discounts and issuance costs | 634 | 634 |
Amortization of deferred gift card sales commissions | 9,090 | 8,407 |
Provision for impaired assets and restaurant closings | 41,318 | 3,586 |
Non-cash operating lease costs | 19,253 | 17,814 |
Provision for expected credit losses and contingent lease liabilities | 7,522 | 0 |
Inventory obsolescence and spoilage | 5,291 | 0 |
Stock-based and other non-cash compensation expense | 3,289 | 6,035 |
Deferred income tax benefit | (10,940) | (501) |
Loss on sale of a business or subsidiary | 0 | 167 |
Loss on disposal of property, fixtures and equipment | 796 | 7 |
Other, net | 1,655 | (667) |
Change in assets and liabilities | (63,471) | (66,730) |
Net cash provided by operating activities | 28,291 | 83,883 |
Cash flows used in investing activities: | ||
Capital expenditures | (34,229) | (44,710) |
Other investments, net | (569) | 2,690 |
Net cash used in investing activities | (34,798) | (42,020) |
Cash flows provided by (used in) financing activities: | ||
Repayments of long-term debt | (6,657) | (7,428) |
Proceeds from borrowings on revolving credit facilities, net | 505,000 | 148,200 |
Repayments of borrowings on revolving credit facilities | (129,000) | (152,300) |
Payments of taxes from share-based compensation, net | (2,508) | (3,086) |
Distributions to noncontrolling interests | (310) | (2,429) |
Contributions from noncontrolling interests | 53 | 264 |
Purchase of limited partnership and noncontrolling interests | (57) | 0 |
Payments for partner equity plan | (5,701) | (5,460) |
Cash dividends paid on common stock | (17,480) | (9,140) |
Redemption of subsidiary preferred stock | (1,007) | 0 |
Net cash provided by (used in) financing activities | 342,333 | (31,379) |
Effect of exchange rate changes on cash and cash equivalents | 424 | 459 |
Net decrease in cash, cash equivalents and restricted cash | 336,250 | 10,943 |
Cash, cash equivalents and restricted cash as of the beginning of the period | 67,145 | 71,823 |
Cash, cash equivalents and restricted cash as of the end of the period | 403,395 | 82,766 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 10,682 | 13,637 |
Cash paid for income taxes, net of refunds | 5,408 | 4,255 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 21,514 | 17,618 |
Leased assets obtained in exchange for new finance lease liabilities | 473 | 76 |
Decrease in liabilities from the acquisition of property, fixtures and equipment | $ (1,950) | $ (6,066) |
Description of the Business and
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“ U.S. GAAP ”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 . Risks and Uncertainties - In March 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide. During the thirteen weeks ended March 29, 2020 , the negative effect of COVID-19 on the Company’s business was significant. The Company experienced an initial decline in restaurant revenue that began in early March 2020 as business travel decreased and public anxiety about the spread of COVID-19 increased. Government agencies began strongly discouraging or prohibiting people from visiting restaurants and instructed citizens to shelter in place to reduce the spread of COVID-19. In response to these conditions, the Company temporarily closed restaurant dining rooms in the U.S. on March 20, 2020 and shifted operations to provide only take-out and delivery service. See Note 2 - COVID-19 Impact for details regarding the financial impact of the COVID-19 pandemic on the Company’s financial results during the thirteen weeks ended March 29, 2020 . The duration and severity of the COVID-19 pandemic and its long-term impact on the Company’s business are uncertain at this time. Given the daily evolution of the pandemic and the global responses to curb its spread, the Company may not be able to accurately estimate the effects of the pandemic on its results of operations, financial condition, or liquidity for the foreseeable future. Recently Adopted Financial Accounting Standards - On December 30, 2019, the Company adopted Accounting Standards Update (“ ASU ”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (“ASU No. 2016-13”), which requires measurement and recognition of losses for financial instruments under the current expected credit loss model versus incurred losses under current guidance. The Company’s adoption of ASU No. 2016-13 and its related amendments (“the new credit loss standard”) resulted in cumulative-effect debit adjustment to the beginning balance of Accumulated deficit of $4.3 million , including $4.8 million of contingent lease liabilities related to lease guarantees and $1.0 million of incremental reserve for credit losses, net of the $1.5 million net increase in related deferred tax assets. Measurement processes and related controls have been implemented by the Company to ensure compliance with the new credit loss standard. See Note 16 - Allowance for Expected Credit Losses for additional details regarding the Company’s allowance for expected credit losses. On December 30, 2019, the Company also adopted ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” (“ ASU No. 2018-15 ”), which clarifies the accounting for implementation costs in cloud computing arrangements. The Company contracts with 3rd party information technology providers for various service arrangements including software, platform and information technology infrastructure. The Company’s prospective adoption of ASU No. 2018-15 did not have a material effect on its consolidated financial statements. Recently Issued Financial Accounting Standards Not Yet Adopted - In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” (“ASU No. 2020-04”). The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU No. 2020-04 is currently effective and upon adoption may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. |
COVID-19 Impact
COVID-19 Impact | 3 Months Ended |
Mar. 29, 2020 | |
COVID-19 Impact [Abstract] | |
COVID-19 Impact | COVID-19 Impact Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated below (dollars in thousands): CHARGES CONSOLIDATED INCOME STATEMENT CLASSIFICATION THIRTEEN WEEKS ENDED MARCH 29, 2020 Inventory obsolescence and spoilage (1) Cost of sales $ 6,182 Compensation for idle employees (2) Labor and other related 16,186 Lease guarantee contingent liabilities (3) General and administrative 4,188 Allowance for expected credit losses (4) General and administrative 3,334 Other charges General and administrative 573 Right-of-use asset impairment (5) Provision for impaired assets and restaurant closings 20,484 Fixed asset impairment (5) Provision for impaired assets and restaurant closings 11,728 Goodwill and other impairment (6) Provision for impaired assets and restaurant closings 2,388 $ 65,063 ________________ (1) Includes the write-off of value added tax credits related to the purchase of inventory by the Company’s Brazil subsidiary. (2) Represents relief pay for hourly employees impacted by the closure of dining rooms. (3) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (4) Includes additional reserves based on the Company’s increase in expected credit losses, primarily related to franchise receivables. (5) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for current economic conditions and the closure of certain restaurants. (6) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 8 - Goodwill and Intangible Assets, Net |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 29, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Revenues Restaurant sales $ 996,237 $ 1,111,642 Franchise and other revenues Franchise revenue $ 9,549 $ 13,762 Other revenue 2,551 2,727 Total Franchise and other revenues $ 12,100 $ 16,489 Total revenues $ 1,008,337 $ 1,128,131 The following tables include the disaggregation of Restaurant sales and Franchise revenue, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 530,685 $ 6,541 $ 586,771 $ 10,601 Carrabba’s Italian Grill 146,875 461 173,475 171 Bonefish Grill 135,072 136 156,434 210 Fleming’s Prime Steakhouse & Wine Bar 70,960 — 83,026 — Other 1,297 — 1,107 — U.S. total $ 884,889 $ 7,138 $ 1,000,813 $ 10,982 International Outback Steakhouse Brazil (1) $ 91,590 $ — $ 89,565 $ — Other (1)(2) 19,758 2,411 21,264 2,780 International total $ 111,348 $ 2,411 $ 110,829 $ 2,780 Total $ 996,237 $ 9,549 $ 1,111,642 $ 13,762 ________________ (1) Brazil Restaurant sales are reported on a one-month lag and are presented on a calendar basis. Restaurant sales for Brazil during the first fiscal quarter of 2020 (through February 29, 2020) do not include any material impact from the COVID-19 pandemic. (2) Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Other current assets, net Deferred gift card sales commissions $ 13,049 $ 18,554 Unearned revenue Deferred gift card revenue $ 277,518 $ 358,757 Deferred loyalty revenue 11,076 10,034 Deferred franchise fees - current 491 491 Total Unearned revenue $ 289,085 $ 369,282 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,453 $ 4,599 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Balance, beginning of period $ 18,554 $ 16,431 Deferred gift card sales commissions amortization (9,090 ) (8,407 ) Deferred gift card sales commissions capitalization 4,324 3,833 Other (739 ) (662 ) Balance, end of period $ 13,049 $ 11,195 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Balance, beginning of period $ 358,757 $ 333,794 Gift card sales 58,439 55,472 Gift card redemptions (133,181 ) (141,459 ) Gift card breakage (6,497 ) (6,884 ) Balance, end of period $ 277,518 $ 240,923 |
Impairments, Exit Costs and Dis
Impairments, Exit Costs and Disposals | 3 Months Ended |
Mar. 29, 2020 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Impairments, Exit Costs and Disposals | Impairments, Exit Costs and Disposals The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Impairment losses U.S. $ 30,972 $ 3,464 International (1) 3,172 18 Corporate 6,280 — Total impairment losses $ 40,424 $ 3,482 Restaurant closure expenses U.S. $ 721 $ 87 International 173 17 Total restaurant closure expenses $ 894 $ 104 Provision for impaired assets and restaurant closings $ 41,318 $ 3,586 ________________ (1) Includes goodwill impairment charges of $2.0 million during the thirteen weeks ended March 29, 2020 . See Note 8 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. During the thirteen weeks ended March 29, 2020 , the Company recognized asset impairment and closure charges related to the COVID-19 pandemic of $31.3 million in the U.S. segment and $3.3 million in the international segment. The Company also recognized asset impairment charges related to transformational initiatives of $6.3 million , which were not allocated to its operating segments. The remaining impairment and closing charges for the periods presented resulted primarily from locations identified for remodel, relocation or closure and certain other assets. Accrued Facility Closure and Other Costs Rollforward - The following table summarizes the Company’s accrual activity related to facility closure and other costs, associated with certain closure initiatives, for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 Balance, beginning of the period $ 14,542 Cash payments (925 ) Accretion 281 Adjustments 428 Balance, end of the period (1) $ 14,326 ________________ (1) As of March 29, 2020 , the Company had exit-related accruals related to certain closure initiatives of $3.2 million recorded in Accrued and other current liabilities and $11.1 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. Refranchising - During the thirteen weeks ended March 31, 2019 , the Company completed the sale of 18 of its existing U.S. Company-owned Carrabba’s Italian Grill locations to an existing franchisee for cash proceeds of $3.6 million |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 3 Months Ended |
Mar. 29, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) Earnings Per Share The following table presents the computation of basic and diluted (loss) earnings per share attributable to common stockholders for the periods indicated: THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 29, 2020 MARCH 31, 2019 Net (loss) income attributable to Bloomin’ Brands $ (34,611 ) $ 64,300 Redemption of preferred stock in excess of carrying value (1) (3,496 ) — Net (loss) income attributable to common stockholders $ (38,107 ) $ 64,300 Basic weighted average common shares outstanding 87,129 91,415 Effect of diluted securities: Stock options — 792 Nonvested restricted stock units — 358 Nonvested performance-based share units — 96 Diluted weighted average common shares outstanding 87,129 92,661 Basic (loss) earnings per share attributable to common stockholders $ (0.44 ) $ 0.70 Diluted (loss) earnings per share attributable to common stockholders $ (0.44 ) $ 0.69 ________________ (1) Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the thirteen weeks ended March 29, 2020 . See Note 12 - Stockholders’ Equity for additional details regarding the redemption of preferred stock of the Company’s Abbraccio subsidiary. Securities outstanding not included in the computation of (loss) earnings per share attributable to common stockholders because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED (shares in thousands) MARCH 29, 2020 MARCH 31, 2019 Stock options 4,665 3,384 Nonvested restricted stock units 651 222 Nonvested performance-based share units 533 260 |
Stock-based Compensation Plans
Stock-based Compensation Plans | 3 Months Ended |
Mar. 29, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Stock options $ 832 $ 1,159 Restricted stock units 1,683 1,749 Performance-based share units 699 1,003 $ 3,214 $ 3,911 During the thirteen weeks ended March 29, 2020 , the Company made grants of 0.1 million stock options, 0.3 million time-based restricted stock units and 0.5 million performance-based share units. Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 Assumptions: Weighted-average risk-free interest rate (1) 0.90 % 2.51 % Dividend yield (2) 4.34 % 1.89 % Expected term (3) 5.5 years 5.5 years Weighted-average volatility (4) 30.43 % 31.87 % Weighted-average grant date fair value per option $ 3.12 $ 5.76 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. (4) Based on the historical volatility of the Company’s stock. The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of March 29, 2020 : UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 6,127 1.8 Restricted stock units $ 16,967 2.2 Performance-based share units $ 14,016 2.3 |
Other Current Assets, Net
Other Current Assets, Net | 3 Months Ended |
Mar. 29, 2020 | |
Other Current Assets, Net [Abstract] | |
Other Current Assets, Net | Other Current Assets, Net Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Prepaid expenses $ 27,716 $ 20,218 Accounts receivable - gift cards, net 9,851 104,591 Accounts receivable - vendors, net 10,407 13,465 Accounts receivable - franchisees, net 435 1,322 Accounts receivable - other, net 19,414 21,734 Deferred gift card sales commissions 13,049 18,554 Assets held for sale 5,640 3,317 Other current assets, net (1) 14,452 3,261 $ 100,964 $ 186,462 ________________ (1) Includes $10.0 million of Company-owned life insurance policies as of March 29, 2020 transferred to current assets during the thirteen weeks ended March 29, 2020 for planned payment of deferred compensation obligations. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill - The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 29, 2019 $ 170,657 $ 117,782 $ 288,439 Translation adjustments — (3,838 ) (3,838 ) Impairment charges — (1,973 ) (1,973 ) Balance as of March 29, 2020 $ 170,657 $ 111,971 $ 282,628 T he COVID-19 outbreak was considered a triggering event, indicating that the carrying amount of goodwill may not be recoverable. As a result, the Company performed a quantitative assessment for all reporting units to determine whether a reporting unit was impaired. Based on this assessment, which utilized a discounted cash flow analysis, the Company recorded full impairment of goodwill related to its Hong Kong reporting unit of $2.0 million , within the international segment, during the thirteen weeks ended March 29, 2020 . Impairment was not recorded for any of the Company’s other reporting units as a result the quantitative assessment. |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 29, 2020 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Company-owned life insurance (1) $ 46,534 $ 60,126 Deferred financing fees (2) 4,476 4,893 Liquor licenses 24,224 24,289 Other assets 26,500 27,802 $ 101,734 $ 117,110 ________________ (1) During the thirteen weeks ended March 29, 2020 , the Company reclassified $10.0 million of Company-owned life insurance policies to current assets for planned payment of deferred compensation obligations. (2) Net of accumulated amortization of $7.2 million and $6.8 million as of March 29, 2020 and December 29, 2019 |
Long-term Debt, Net
Long-term Debt, Net | 3 Months Ended |
Mar. 29, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net Following is a summary of outstanding long-term debt, as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 443,750 3.02 % $ 450,000 3.40 % Revolving credit facility (1) 975,000 3.29 % 599,000 3.44 % Total Senior Secured Credit Facility $ 1,418,750 $ 1,049,000 Finance lease liabilities 2,328 2,308 Other — — % 50 2.18 % Less: unamortized debt discount and issuance costs (2,438 ) (2,654 ) Total debt, net $ 1,418,640 $ 1,048,704 Less: current portion of long-term debt (29,367 ) (26,411 ) Long-term debt, net $ 1,389,273 $ 1,022,293 ________________ (1) Interest rate represents the weighted-average interest rate for the respective periods. Amended Credit Agreement - On May 4, 2020 , the Company and its wholly-owned subsidiary OSI Restaurant Partners, LLC (“OSI”), as co-borrowers, entered into an amendment to its existing credit agreement, dated November 30, 2017 (the “Amended Credit Agreement”), which provides relief for the financial covenant to maintain a specified quarterly Total Net Leverage Ratio (“TNLR”). Without such amendment, violation of financial covenants under the original credit agreement could have resulted in default. TNLR is the ratio of Consolidated Total Debt (Current portion of long-term debt and Long-term debt, net of cash) to Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization and certain other adjustments as defined in the Amended Credit Agreement). The Amended Credit Agreement waives the TNLR requirement for the remainder of fiscal year 2020 and requires a TNLR based on a seasonally annualized calculation of Consolidated EBITDA not to exceed the following thresholds for the periods indicated: QUARTERLY PERIOD ENDED MAXIMUM RATIO March 28, 2021 (1) 5.50 to 1.00 June 27, 2021 (2) 5.00 to 1.00 September 26, 2021 and thereafter (3) 4.50 to 1.00 ________________ (1) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the fiscal quarter ending March 28, 2021 divided by 34.1% . (2) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5% . (3) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the three consecutive quarters ending September 26, 2021 divided by 77.0% . Under the terms of the Amended Credit Agreement, the Company is also required to meet a minimum monthly liquidity threshold of $125.0 million through March 28, 2021 , calculated as the sum of available capacity under the Company’s revolving credit facility, unrestricted domestic cash on hand and up to $25.0 million of unrestricted cash held by foreign subsidiaries. Under the Amended Credit Agreement, the Company is limited to $100.0 million of aggregate capital expenditures for the four fiscal quarters through March 28, 2021 . The Company is also prohibited from making certain restricted payments, investments or acquisitions until after September 26, 2021 , with an exception for investments in the Company’s foreign subsidiaries which are capped at $27.5 million . Interest rates under the Amended Credit Agreement are 275 and 175 basis points above the Eurocurrency Rate and Base Rate, respectively, and letter of credit fees and fees for the daily unused availability under the revolving credit facility are 2.75% and 0.40% , respectively, subject to reversion to rates under the original credit agreement when the Company is in compliance with the TNLR covenant for the test period ending September 26, 2021 . The Company is also subject to a 0% Eurocurrency floor under the Amended Credit Agreement. As of the date of this filing, the Company’s accounting for the impact of the Amended Credit Agreement was still ongoing. Any impact will be reflected in the Company’s consolidated financial statements during the thirteen weeks ended June 28, 2020. As of March 29, 2020 and December 29, 2019 , the Company was in compliance with its debt covenants. |
Other Long-term Liabilities, Ne
Other Long-term Liabilities, Net | 3 Months Ended |
Mar. 29, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities, Net | Other Long-term Liabilities, Net Other long-term liabilities, net, consisted of the following, as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Accrued insurance liability $ 33,490 $ 33,818 Chef and Restaurant Managing Partner deferred compensation obligations and deposits 41,824 47,831 Other long-term liabilities (1) 73,318 56,411 $ 148,632 $ 138,060 ________________ (1) The increase in Other long-term liabilities during the thirteen weeks ended March 29, 2020 , preliminary relates to $9.9 million of additional interest rate swap liabilities and $8.7 million of additional contingent lease liabilities. See Note 13 - Derivative Instruments and Hedging Activities and Note 18 - Commitments and Contingencies , respectively, for details regarding these increases. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 29, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases - The Company did not repurchase any shares of its outstanding common stock during the thirteen weeks ended March 29, 2020 . Under the terms of the Amended Credit Agreement, repurchasing shares of the Company’s outstanding common stock is restricted until after September 26, 2021. Dividends - The Company declared and paid dividends per share during fiscal year 2020 as follows: (in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.20 $ 17,480 Redeemable Preferred Stock - In connection with the development of its Abbraccio Cucina Italiana (“ Abbraccio ”) concept in 2015, the Company entered into an investment agreement (the “ Abbraccio Investment Agreement ”) to sell preferred shares of its Abbraccio subsidiary (“ Abbraccio Shares ”) to certain investors (“ Abbraccio Partners ”). The Abbraccio Investment Agreement included a call option for the purchase of the Abbraccio Shares (the “ Abbraccio Call Option ”). During the thirteen weeks ended March 29, 2020 , the Company exercised the Abbraccio Call Option to purchase all outstanding Abbraccio Shares for $1.0 million and recorded a reduction to Accumulated deficit and an increase in Net loss applicable to common stockholders of $3.5 million for the consideration paid in excess of the Abbraccio Shares ’ carrying value. Accumulated Other Comprehensive Loss (“ AOCL ”) - Following are the components of AOCL as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Foreign currency translation adjustment $ (159,328 ) $ (152,031 ) Unrealized loss on derivatives, net of tax (29,685 ) (17,745 ) Accumulated other comprehensive loss $ (189,013 ) $ (169,776 ) Following are the components of Other comprehensive (loss) income attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Foreign currency translation adjustment $ (7,297 ) $ 5,847 Unrealized loss on derivatives, net of tax (1) $ (13,336 ) $ (4,381 ) Reclassification of adjustments for loss (gain) on derivatives included in Net income, net of tax (2) 1,396 (364 ) Total unrealized loss on derivatives, net of tax $ (11,940 ) $ (4,745 ) Other comprehensive (loss) income attributable to Bloomin’ Brands $ (19,237 ) $ 1,102 ________________ (1) Unrealized loss on derivatives is net of tax of $(4.6) million and $(1.5) million for the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. (2) Reclassifications of adjustments for loss (gain) on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 29, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk - On October 24, 2018 and October 25, 2018 , the Company entered into variable-to-fixed interest rate swap agreements with 12 counterparties to hedge a portion of the cash flows of the Company’s variable rate debt. The swap agreements have an aggregate notional amount of $550.0 million and mature on November 30, 2022 . Under the terms of the swap agreements, the Company pays a weighted-average fixed rate of 3.04% on the notional amount and receives payments from the counterparty based on the one-month LIBOR rate. The Company’s swap agreements have been designated and qualify as cash flow hedges, are recognized on its Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. The Company estimates $14.7 million will be reclassified to interest expense over the next 12 fiscal months. The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated : (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 13,335 $ 7,174 Accrued and other current liabilities Interest rate swaps - liability 26,758 16,835 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 40,093 $ 24,009 Accrued interest $ 679 $ 632 Accrued and other current liabilities ____________________ (1) See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. On May 4, 2020 , concurrent with entering into the Amended Credit Agreement, the Company elected to de-designate its interest rate swap hedge relationships and modify its interest rate swaps to more closely align with certain terms of the Amended Credit Agreement. On May 6, 2020, the Company re-designated the cash flow hedge relationship for the original $550.0 million notional amount, resulting in no impact to the Company’s consolidated financial statements as a result of the hedge activity. The following table summarizes the effects of the swap agreements on Net (loss) income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Interest rate swap (expense) income recognized in Interest expense, net $ (1,880 ) $ 491 Income tax benefit (expense) recognized in Provision for income taxes 484 (127 ) Total effects of the interest rate swaps on Net (loss) income $ (1,396 ) $ 364 By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 29, 2020 , all counterparties to the interest rate swaps had performed in accordance with their contractual obligations. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on indebtedness. As of March 29, 2020 and December 29, 2019 , the fair value of the Company’s interest rate swaps was in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, of $41.0 million and $24.8 million , respectively. As of March 29, 2020 and December 29, 2019 , the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of March 29, 2020 and December 29, 2019 , it could have been required to settle its obligations under the agreements at their termination value of $41.0 million and $24.8 million , respectively. |
Leases
Leases | 3 Months Ended |
Mar. 29, 2020 | |
Leases [Abstract] | |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION MARCH 29, 2020 DECEMBER 29, 2019 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,249,750 $ 1,266,548 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,076 2,036 Total lease assets, net $ 1,251,826 $ 1,268,584 Current operating lease liabilities (2) Accrued and other current liabilities $ 185,278 $ 171,866 Current finance lease liabilities Current portion of long-term debt 1,242 1,361 Non-current operating lease liabilities Non-current operating lease liabilities 1,281,372 1,279,051 Non-current finance lease liabilities Long-term debt, net 1,086 947 Total lease liabilities $ 1,468,978 $ 1,453,225 ________________ (1) Net of accumulated amortization of $1.6 million and $1.3 million as of March 29, 2020 and December 29, 2019 , respectively. (2) Excludes accrued contingent percentage rent. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED INCOME STATEMENT CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Operating leases (1) Other restaurant operating $ 45,882 $ 45,233 Variable lease cost Other restaurant operating 1,120 819 Finance leases Amortization of leased assets Depreciation and amortization 342 324 Interest on lease liabilities Interest expense, net 46 73 Sublease revenue (2) Franchise and other revenues (1,677 ) (1,314 ) Lease costs, net $ 45,713 $ 45,135 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $3.6 million , which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million , which is included in Cost of sales . (2) Excludes rental income from Company-owned properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $0.2 million and $0.7 million , respectively. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 48,492 $ 47,649 |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION MARCH 29, 2020 DECEMBER 29, 2019 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,249,750 $ 1,266,548 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,076 2,036 Total lease assets, net $ 1,251,826 $ 1,268,584 Current operating lease liabilities (2) Accrued and other current liabilities $ 185,278 $ 171,866 Current finance lease liabilities Current portion of long-term debt 1,242 1,361 Non-current operating lease liabilities Non-current operating lease liabilities 1,281,372 1,279,051 Non-current finance lease liabilities Long-term debt, net 1,086 947 Total lease liabilities $ 1,468,978 $ 1,453,225 ________________ (1) Net of accumulated amortization of $1.6 million and $1.3 million as of March 29, 2020 and December 29, 2019 , respectively. (2) Excludes accrued contingent percentage rent. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED INCOME STATEMENT CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Operating leases (1) Other restaurant operating $ 45,882 $ 45,233 Variable lease cost Other restaurant operating 1,120 819 Finance leases Amortization of leased assets Depreciation and amortization 342 324 Interest on lease liabilities Interest expense, net 46 73 Sublease revenue (2) Franchise and other revenues (1,677 ) (1,314 ) Lease costs, net $ 45,713 $ 45,135 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $3.6 million , which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million , which is included in Cost of sales . (2) Excludes rental income from Company-owned properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $0.2 million and $0.7 million , respectively. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 48,492 $ 47,649 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 2,324 $ 2,324 $ — $ 1,037 $ 1,037 $ — Money market funds 7,046 7,046 — 12,752 12,752 — Total asset recurring fair value measurements $ 9,370 $ 9,370 $ — $ 13,789 $ 13,789 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 13,335 $ — $ 13,335 $ 7,174 $ — $ 7,174 Other long-term liabilities: Derivative instruments - interest rate swaps 26,758 — 26,758 16,835 — 16,835 Total liability recurring fair value measurements $ 40,093 $ — $ 40,093 $ 24,009 $ — $ 24,009 Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments The Company’s derivative instruments include interest rate swaps. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of March 29, 2020 and December 29, 2019, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. Fair Value Measurements on a Nonrecurring Basis - Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to property, fixtures and equipment, operating lease right-of-use assets, goodwill and other intangible assets, which are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 (dollars in thousands) CARRYING VALUE TOTAL IMPAIRMENT CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ 1,182 $ 75 $ 2,149 $ 215 Operating lease right-of-use assets (2) 55,644 19,563 2,242 596 Property, fixtures and equipment (3) 21,693 18,398 490 2,671 Goodwill and other assets (4) 1,044 2,388 — — $ 79,563 $ 40,424 $ 4,881 $ 3,482 ____________________ (1) Assets generally measured using third-party market appraisals or executed sales contracts (Level 2). (2) Carrying values measured using Level 3 inputs to estimate fair value totaled $55.6 million and $2.0 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (3) Carrying values measured using Level 3 inputs to estimate fair value totaled $19.2 million and $0.5 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (4) All assets measured using the quoted market value of comparable assets (Level 2). See Note 4 - Impairments, Exit Costs and Disposals for information regarding impairment charges resulting from the fair value measurement performed on a nonrecurring basis during the thirteen weeks ended March 29, 2020 . Projected future cash flows, including discount rate and growth rate assumptions, are derived from current economic conditions, expectations of management and projected trends of current operating results. As a result, the Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy. In assessment of impairment for operating locations, the Company determined the fair values of individual operating locations using an income approach, which required discounting projected future cash flows. When determining the stream of projected future cash flows associated with an individual operating location, management made assumptions, including highest and best use and inputs from restaurant operations, where necessary, and about key variables including the following unobservable inputs: revenue growth rates, controllable and uncontrollable expenses, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounted cash flow estimates at its weighted-average cost of capital applicable to the country in which the measured assets reside. The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred during the period indicated: THIRTEEN WEEKS ENDED UNOBSERVABLE INPUTS MARCH 29, 2020 Weighted-average cost of capital 10.4% Long-term growth rate 1.5% to 2.0% Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and current and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on its Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 (dollars in thousands) Senior Secured Credit Facility: Term loan A $ 443,750 $ 397,156 $ 450,000 $ 450,563 Revolving credit facility $ 975,000 $ 832,777 $ 599,000 $ 599,000 |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 3 Months Ended |
Mar. 29, 2020 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The following is a rollforward of the allowance for trade receivable expected credit losses for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 Allowance for credit losses, beginning of period $ 199 Adjustment for adoption of ASU No. 2016-13 1,018 Provision for expected credit losses 3,334 Allowance for credit losses, end of period $ 4,551 The Company is exposed to credit losses through its trade accounts receivable consisting primarily of amounts due for gift card, credit card, vendor, franchise and other receivables. Gift card, vendor and other receivables consist primarily of amounts due from gift card resellers and vendor rebates. Amounts due from franchisees consist of initial franchise fees, royalty income, and advertising fees. See Note 7 - Other Current Assets, Net for disclosure of trades receivables by category as of March 29, 2020 and December 29, 2019 . Credit card receivables in the U.S. are recorded within Cash and cash equivalents based on their short duration and reasonably assured settlement. The Company evaluates the collectability of trade receivables based on historical loss experience and risk pool and records periodic adjustments for factors such as deterioration of economic conditions, specific customer circumstances and changes in the aging of accounts receivable balances. For risk pools where there was no established loss history, S&P speculative-grade default rates are utilized to calculate an estimated loss rate. Losses are charged off in the period in which they are determined to be uncollectable. The financial condition of the Company’s franchisees is largely dependent on the underlying business trends of its brands and market conditions within the casual dining restaurant industry. In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 2 - COVID-19 Impact for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. The Company is also exposed to credit losses from off-balance sheet lease guarantees primarily related to the divestiture of certain formerly Company-owned restaurant sites. See Note 18 - Commitments and Contingencies |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 (Loss) income before (benefit) provision for income taxes $ (54,069 ) $ 71,145 (Benefit) provision for income taxes $ (19,655 ) $ 5,496 Effective income tax rate 36.4 % 7.7 % On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act (the “ CARES Act ”). Accordingly, the applicable provisions of the CARES Act have been reflected in the Company’s tax provision for the thirteen weeks ended March 29, 2020 . The CARES Act , among other items, includes U.S. corporate tax provisions related to the deferment of employer social security payments, net operating loss (“ NOL ”) carryback periods, alternative minimum tax credits, modifications to interest deduction limitations and technical corrections on tax depreciation methods for qualified improvement property (“ QIP ”). The effective income tax rate for the thirteen weeks ended March 29, 2020 increased by 28.7 percentage points as compared to the thirteen weeks ended March 31, 2019 . The increase was primarily due to the benefit of the five-year carryback of the forecasted 2020 NOL under the CARES Act and favorable discrete items recorded in the thirteen weeks ended March 29, 2020 . As of December 29, 2019 , the Company had $128.6 million in general business tax credits carryforwards, which have a 20-year carryforward period and are utilized on a first-in, first-out basis. The Company expects to increase its general business credit carryforwards in 2020 by approximately $50 million to $80 million as a result of the carryback of the forecasted 2020 NOL , additional credits generated in 2020 and the application of the QIP technical correction enacted as part of the CARES Act . The Company currently expects to utilize these tax credit carryforwards within a seven to nine year period. However, the Company’s ability to utilize these tax credits could be adversely impacted by, among other items, a future “ownership change” as defined under Section 382 of the Internal Revenue Code. The Company has a blended federal and state statutory rate of approximately 26% . The effective income tax rate for the thirteen weeks ended March 29, 2020 was higher than the statutory rate primarily due to the benefit of the five-year carryback of the forecasted 2020 NOL under the CARES Act and tax credits for FICA taxes on certain employees’ tips. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Matters - The Company had $3.3 million and $3.0 million of liabilities recorded for various legal matters as of March 29, 2020 and December 29, 2019 , respectively. The Company is subject to legal proceedings, claims and liabilities, such as liquor liability, slip and fall cases, wage-and-hour and other employment-related litigation, which arise in the ordinary course of business and are generally covered by insurance if they exceed specified retention or deductible amounts. In the opinion of management, the amount of ultimate liability with respect to those actions will not have a material adverse impact on the Company’s financial position or results of operations and cash flows. Lease Guarantees - The Company assigned its interest, and is contingently liable, under certain real estate leases. These leases have varying terms, the latest of which expires in 2032 . As of March 29, 2020 , the undiscounted payments that the Company could be required to make in the event of non-payment by the primary lessees was approximately $31.3 million . The present value of these potential payments discounted at the Company’s incremental borrowing rate as of March 29, 2020 was approximately $24.9 million . In the event of default, the indemnity clauses in the Company’s purchase and sale agreements govern its ability to pursue and recover damages incurred. In March 2020, the Company recorded $4.2 million of additional contingent lease liability in response to the economic impact of the COVID-19 pandemic. As of March 29, 2020 , the Company’s recorded contingent lease liability was $9.7 million . See Note 2 - COVID-19 Impact |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 29, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company considers its restaurant concepts and international markets as operating segments, which reflects how the Company manages its business, reviews operating performance and allocates resources. Resources are allocated and performance is assessed by the Company’s Chief Executive Officer (“ CEO ”), whom the Company has determined to be its Chief Operating Decision Maker (“ CODM ”). The Company aggregates its operating segments into two reportable segments, U.S. and international. The U.S. segment includes all restaurants operating in the U.S. while restaurants operating outside the U.S. are included in the international segment. The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 . Revenues for all segments include only transactions with customers and exclude intersegment revenues. Excluded from Income from operations for U.S. and international are certain legal and corporate costs not directly related to the performance of the segments, most stock-based compensation expenses and certain bonus expenses. During the thirteen weeks ended March 29, 2020 , the Company recorded $22.2 million of pre-tax charges as a part of transformational initiatives implemented in connection with its previously announced review of strategic alternatives. These costs were primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings and were not allocated to the Company’s segments since the Company’s CODM does not consider the impact of transformational initiatives when assessing segment performance. The following table is a summary of Total revenue by segment, for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Total revenues U.S. $ 894,497 $ 1,014,507 International 113,840 113,624 Total revenues $ 1,008,337 $ 1,128,131 The following table is a reconciliation of Segment income from operations to (Loss) income before (benefit) provision for income taxes , for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Segment income from operations U.S. $ 11,379 $ 113,035 International 6,787 13,720 Total segment income from operations 18,166 126,755 Unallocated corporate operating expense (59,734 ) (44,261 ) Total (loss) income from operations (41,568 ) 82,494 Other expense, net (793 ) (168 ) Interest expense, net (11,708 ) (11,181 ) (Loss) income before (benefit) provision for income taxes $ (54,069 ) $ 71,145 The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Depreciation and amortization U.S. $ 37,640 $ 38,786 International 6,758 6,456 Corporate 3,870 4,240 Total depreciation and amortization $ 48,268 $ 49,482 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Convertible Notes - On May 8, 2020 , the Company completed a $200.0 million principal amount private offering of 5.00% convertible senior notes due 2025 and on May 12, 2020 , issued an additional $30.0 million principal amount in connection with the overallotment option granted to the initial purchasers as part of the offering (collectively, the “ 2025 Notes ”). The 2025 Notes are governed by the terms of an indenture between the Company and Wells Fargo Bank, National Association, as the Trustee. The 2025 Notes will mature on May 1, 2025 , unless earlier converted, redeemed or purchased by the Company. The 2025 Notes bear cash interest at an annual rate of 5.00% , payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2020 . The 2025 Notes are unsecured obligations and do not contain any financial covenants or restrictions on incurring additional indebtedness, paying dividends or issuing or repurchasing any securities. Events of default under the indenture for the 2025 Notes include, among other things, a default in the payment when due of the principal of, or the redemption price for, any note and a default for 30 days in the payment when due of interest on any note. If an event of default, the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding will immediately become due and payable. The initial conversion rate applicable to the 2025 Notes is 84.122 shares of common stock per $1,000 principal amount of 2025 Notes , or a total of approximately 19.348 million shares for the total $230.0 million principal amount. This initial conversion rate is equivalent to an initial conversion price of approximately $11.89 per share. The conversion rate will be subject to adjustment upon the occurrence of certain specified events. Noteholders may convert their notes at their option only in the circumstances described in the indenture. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election, based on the applicable conversion rate. Net proceeds from this offering were approximately $221.4 million , after deducting the initial purchaser’s discounts and commissions and the Company’s offering expenses. The Company intends to use the net proceeds of this offering for general corporate purposes. Upon issuance, the principal amount is separated into a liability and an equity component, such that interest expense reflects the Company’s nonconvertible debt interest rate. Debt issuance costs related to the 2025 Notes were comprised of discounts upon original issuance of $6.9 million and estimated third party offering costs of $1.7 million . In accounting for the debt issuance costs related to the issuance of the 2025 Notes , the Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the expected life of the 2025 Notes , and debt issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. Discounts and third party offering costs attributable to the liability component are recorded as a contra-liability and are presented net against the convertible senior notes due 2025 balance on the consolidated balance sheets. Convertible Note Hedge and Warrant Transactions - In connection with the offering of the 2025 Notes , the Company entered into convertible note hedge transactions (the “ Convertible Note Hedge Transactions ”) with certain of the initial purchasers of the 2025 Notes and/or their respective affiliates and other financial institutions (in this capacity, the “ Hedge Counterparties ”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions , the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, subject to customary anti-dilution adjustments, and for which the Company received premiums that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “ Warrant Transactions ”). The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that will initially underlie the 2025 Notes , and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2025 Notes . The Warrant Transactions could have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions . The strike price will initially be $16.64 per share and is subject to certain adjustments under the terms of the Warrant Transactions . The portion of the net proceeds to the Company from the offering of the 2025 Notes that was used to pay the premium on the Convertible Note Hedge Transactions (calculated after taking into account the proceeds to the Company from the Warrant Transactions ) was approximately $19.6 million . The net costs incurred in connection with the Convertible Note Hedge Transactions and Warrant Transactions will be recorded as a reduction to additional paid-in capital on the Company’s Consolidated Balance Sheet during the thirteen weeks ended June 28, 2020. As of the date of this filing, the Company’s accounting for the 2025 Notes , Convertible Note Hedge Transactions and Warrant Transactions was still ongoing. Any impact will be reflected in the Company’s consolidated financial statements during the thirteen weeks ended June 28, 2020. |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“ U.S. GAAP ”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2019 . |
Recently Adopted Financial Accounting Standards | Recently Adopted Financial Accounting Standards - On December 30, 2019, the Company adopted Accounting Standards Update (“ ASU ”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (“ASU No. 2016-13”), which requires measurement and recognition of losses for financial instruments under the current expected credit loss model versus incurred losses under current guidance. The Company’s adoption of ASU No. 2016-13 and its related amendments (“the new credit loss standard”) resulted in cumulative-effect debit adjustment to the beginning balance of Accumulated deficit of $4.3 million , including $4.8 million of contingent lease liabilities related to lease guarantees and $1.0 million of incremental reserve for credit losses, net of the $1.5 million net increase in related deferred tax assets. Measurement processes and related controls have been implemented by the Company to ensure compliance with the new credit loss standard. See Note 16 - Allowance for Expected Credit Losses for additional details regarding the Company’s allowance for expected credit losses. On December 30, 2019, the Company also adopted ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” (“ ASU No. 2018-15 ”), which clarifies the accounting for implementation costs in cloud computing arrangements. The Company contracts with 3rd party information technology providers for various service arrangements including software, platform and information technology infrastructure. The Company’s prospective adoption of ASU No. 2018-15 did not have a material effect on its consolidated financial statements. Recently Issued Financial Accounting Standards Not Yet Adopted - In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” (“ASU No. 2020-04”). The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU No. 2020-04 is currently effective and upon adoption may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. |
Reclassifications | Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. |
COVID-19 Impact (Tables)
COVID-19 Impact (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
COVID-19 Impact [Abstract] | |
Impact from COVID-19 | Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated below (dollars in thousands): CHARGES CONSOLIDATED INCOME STATEMENT CLASSIFICATION THIRTEEN WEEKS ENDED MARCH 29, 2020 Inventory obsolescence and spoilage (1) Cost of sales $ 6,182 Compensation for idle employees (2) Labor and other related 16,186 Lease guarantee contingent liabilities (3) General and administrative 4,188 Allowance for expected credit losses (4) General and administrative 3,334 Other charges General and administrative 573 Right-of-use asset impairment (5) Provision for impaired assets and restaurant closings 20,484 Fixed asset impairment (5) Provision for impaired assets and restaurant closings 11,728 Goodwill and other impairment (6) Provision for impaired assets and restaurant closings 2,388 $ 65,063 ________________ (1) Includes the write-off of value added tax credits related to the purchase of inventory by the Company’s Brazil subsidiary. (2) Represents relief pay for hourly employees impacted by the closure of dining rooms. (3) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (4) Includes additional reserves based on the Company’s increase in expected credit losses, primarily related to franchise receivables. (5) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for current economic conditions and the closure of certain restaurants. (6) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 8 - Goodwill and Intangible Assets, Net |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Revenue Recognition [Line Items] | |
Schedule of principal transactions, revenue | The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Revenues Restaurant sales $ 996,237 $ 1,111,642 Franchise and other revenues Franchise revenue $ 9,549 $ 13,762 Other revenue 2,551 2,727 Total Franchise and other revenues $ 12,100 $ 16,489 Total revenues $ 1,008,337 $ 1,128,131 |
Disaggregation of revenue | The following tables include the disaggregation of Restaurant sales and Franchise revenue, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 530,685 $ 6,541 $ 586,771 $ 10,601 Carrabba’s Italian Grill 146,875 461 173,475 171 Bonefish Grill 135,072 136 156,434 210 Fleming’s Prime Steakhouse & Wine Bar 70,960 — 83,026 — Other 1,297 — 1,107 — U.S. total $ 884,889 $ 7,138 $ 1,000,813 $ 10,982 International Outback Steakhouse Brazil (1) $ 91,590 $ — $ 89,565 $ — Other (1)(2) 19,758 2,411 21,264 2,780 International total $ 111,348 $ 2,411 $ 110,829 $ 2,780 Total $ 996,237 $ 9,549 $ 1,111,642 $ 13,762 ________________ (1) Brazil Restaurant sales are reported on a one-month lag and are presented on a calendar basis. Restaurant sales for Brazil during the first fiscal quarter of 2020 (through February 29, 2020) do not include any material impact from the COVID-19 pandemic. (2) Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. |
Contract with customers, asset and liability | The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Other current assets, net Deferred gift card sales commissions $ 13,049 $ 18,554 Unearned revenue Deferred gift card revenue $ 277,518 $ 358,757 Deferred loyalty revenue 11,076 10,034 Deferred franchise fees - current 491 491 Total Unearned revenue $ 289,085 $ 369,282 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,453 $ 4,599 |
Other current assets, net [Member] | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Balance, beginning of period $ 18,554 $ 16,431 Deferred gift card sales commissions amortization (9,090 ) (8,407 ) Deferred gift card sales commissions capitalization 4,324 3,833 Other (739 ) (662 ) Balance, end of period $ 13,049 $ 11,195 |
Unearned revenue [Member] | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Balance, beginning of period $ 358,757 $ 333,794 Gift card sales 58,439 55,472 Gift card redemptions (133,181 ) (141,459 ) Gift card breakage (6,497 ) (6,884 ) Balance, end of period $ 277,518 $ 240,923 |
Impairments, Exit Costs and D_2
Impairments, Exit Costs and Disposals (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Impairment losses U.S. $ 30,972 $ 3,464 International (1) 3,172 18 Corporate 6,280 — Total impairment losses $ 40,424 $ 3,482 Restaurant closure expenses U.S. $ 721 $ 87 International 173 17 Total restaurant closure expenses $ 894 $ 104 Provision for impaired assets and restaurant closings $ 41,318 $ 3,586 ________________ (1) Includes goodwill impairment charges of $2.0 million during the thirteen weeks ended March 29, 2020 . See Note 8 - Goodwill and Intangible Assets, Net |
Accrued facility closure and other costs rollforward | The following table summarizes the Company’s accrual activity related to facility closure and other costs, associated with certain closure initiatives, for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 Balance, beginning of the period $ 14,542 Cash payments (925 ) Accretion 281 Adjustments 428 Balance, end of the period (1) $ 14,326 ________________ (1) As of March 29, 2020 , the Company had exit-related accruals related to certain closure initiatives of $3.2 million recorded in Accrued and other current liabilities and $11.1 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of (loss) earnings per share, basic and diluted | The following table presents the computation of basic and diluted (loss) earnings per share attributable to common stockholders for the periods indicated: THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 29, 2020 MARCH 31, 2019 Net (loss) income attributable to Bloomin’ Brands $ (34,611 ) $ 64,300 Redemption of preferred stock in excess of carrying value (1) (3,496 ) — Net (loss) income attributable to common stockholders $ (38,107 ) $ 64,300 Basic weighted average common shares outstanding 87,129 91,415 Effect of diluted securities: Stock options — 792 Nonvested restricted stock units — 358 Nonvested performance-based share units — 96 Diluted weighted average common shares outstanding 87,129 92,661 Basic (loss) earnings per share attributable to common stockholders $ (0.44 ) $ 0.70 Diluted (loss) earnings per share attributable to common stockholders $ (0.44 ) $ 0.69 ________________ (1) Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the thirteen weeks ended March 29, 2020 . See Note 12 - Stockholders’ Equity |
Schedule of antidilutive securities excluded from computation of (loss) earnings per share | Securities outstanding not included in the computation of (loss) earnings per share attributable to common stockholders because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED (shares in thousands) MARCH 29, 2020 MARCH 31, 2019 Stock options 4,665 3,384 Nonvested restricted stock units 651 222 Nonvested performance-based share units 533 260 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation cost for stock-based payment arrangements, allocation of share-based compensation costs by plan | The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Stock options $ 832 $ 1,159 Restricted stock units 1,683 1,749 Performance-based share units 699 1,003 $ 3,214 $ 3,911 |
Schedule of stock-based payment award, stock options, valuation assumptions | Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 Assumptions: Weighted-average risk-free interest rate (1) 0.90 % 2.51 % Dividend yield (2) 4.34 % 1.89 % Expected term (3) 5.5 years 5.5 years Weighted-average volatility (4) 30.43 % 31.87 % Weighted-average grant date fair value per option $ 3.12 $ 5.76 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. (4) Based on the historical volatility of the Company’s stock. |
Schedule of unrecognized compensation cost, nonvested awards | The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of March 29, 2020 : UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 6,127 1.8 Restricted stock units $ 16,967 2.2 Performance-based share units $ 14,016 2.3 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Other Current Assets, Net [Abstract] | |
Schedule of other current assets | Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Prepaid expenses $ 27,716 $ 20,218 Accounts receivable - gift cards, net 9,851 104,591 Accounts receivable - vendors, net 10,407 13,465 Accounts receivable - franchisees, net 435 1,322 Accounts receivable - other, net 19,414 21,734 Deferred gift card sales commissions 13,049 18,554 Assets held for sale 5,640 3,317 Other current assets, net (1) 14,452 3,261 $ 100,964 $ 186,462 ________________ (1) Includes $10.0 million of Company-owned life insurance policies as of March 29, 2020 transferred to current assets during the thirteen weeks ended March 29, 2020 for planned payment of deferred compensation obligations. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill rollforward | The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 29, 2019 $ 170,657 $ 117,782 $ 288,439 Translation adjustments — (3,838 ) (3,838 ) Impairment charges — (1,973 ) (1,973 ) Balance as of March 29, 2020 $ 170,657 $ 111,971 $ 282,628 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Other Assets [Abstract] | |
Schedule of other assets | Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Company-owned life insurance (1) $ 46,534 $ 60,126 Deferred financing fees (2) 4,476 4,893 Liquor licenses 24,224 24,289 Other assets 26,500 27,802 $ 101,734 $ 117,110 ________________ (1) During the thirteen weeks ended March 29, 2020 , the Company reclassified $10.0 million of Company-owned life insurance policies to current assets for planned payment of deferred compensation obligations. (2) Net of accumulated amortization of $7.2 million and $6.8 million as of March 29, 2020 and December 29, 2019 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt, as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 443,750 3.02 % $ 450,000 3.40 % Revolving credit facility (1) 975,000 3.29 % 599,000 3.44 % Total Senior Secured Credit Facility $ 1,418,750 $ 1,049,000 Finance lease liabilities 2,328 2,308 Other — — % 50 2.18 % Less: unamortized debt discount and issuance costs (2,438 ) (2,654 ) Total debt, net $ 1,418,640 $ 1,048,704 Less: current portion of long-term debt (29,367 ) (26,411 ) Long-term debt, net $ 1,389,273 $ 1,022,293 ________________ (1) Interest rate represents the weighted-average interest rate for the respective periods. |
Schedule of maximum total net leverage ratio | The Amended Credit Agreement waives the TNLR requirement for the remainder of fiscal year 2020 and requires a TNLR based on a seasonally annualized calculation of Consolidated EBITDA not to exceed the following thresholds for the periods indicated: QUARTERLY PERIOD ENDED MAXIMUM RATIO March 28, 2021 (1) 5.50 to 1.00 June 27, 2021 (2) 5.00 to 1.00 September 26, 2021 and thereafter (3) 4.50 to 1.00 ________________ (1) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the fiscal quarter ending March 28, 2021 divided by 34.1% . (2) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5% . (3) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the three consecutive quarters ending September 26, 2021 divided by 77.0% |
Other Long-term Liabilities, _2
Other Long-term Liabilities, Net (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities, net, consisted of the following, as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Accrued insurance liability $ 33,490 $ 33,818 Chef and Restaurant Managing Partner deferred compensation obligations and deposits 41,824 47,831 Other long-term liabilities (1) 73,318 56,411 $ 148,632 $ 138,060 ________________ (1) The increase in Other long-term liabilities during the thirteen weeks ended March 29, 2020 , preliminary relates to $9.9 million of additional interest rate swap liabilities and $8.7 million of additional contingent lease liabilities. See Note 13 - Derivative Instruments and Hedging Activities and Note 18 - Commitments and Contingencies , respectively, for details regarding these increases. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Dividends declared and paid | The Company declared and paid dividends per share during fiscal year 2020 as follows: (in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.20 $ 17,480 |
Schedule of accumulated other comprehensive loss | Following are the components of AOCL as of the periods indicated: (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 Foreign currency translation adjustment $ (159,328 ) $ (152,031 ) Unrealized loss on derivatives, net of tax (29,685 ) (17,745 ) Accumulated other comprehensive loss $ (189,013 ) $ (169,776 ) |
Comprehensive (loss) income | Following are the components of Other comprehensive (loss) income attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Foreign currency translation adjustment $ (7,297 ) $ 5,847 Unrealized loss on derivatives, net of tax (1) $ (13,336 ) $ (4,381 ) Reclassification of adjustments for loss (gain) on derivatives included in Net income, net of tax (2) 1,396 (364 ) Total unrealized loss on derivatives, net of tax $ (11,940 ) $ (4,745 ) Other comprehensive (loss) income attributable to Bloomin’ Brands $ (19,237 ) $ 1,102 ________________ (1) Unrealized loss on derivatives is net of tax of $(4.6) million and $(1.5) million for the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. (2) Reclassifications of adjustments for loss (gain) on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated : (dollars in thousands) MARCH 29, 2020 DECEMBER 29, 2019 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 13,335 $ 7,174 Accrued and other current liabilities Interest rate swaps - liability 26,758 16,835 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 40,093 $ 24,009 Accrued interest $ 679 $ 632 Accrued and other current liabilities ____________________ (1) See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance, location | The following table summarizes the effects of the swap agreements on Net (loss) income for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Interest rate swap (expense) income recognized in Interest expense, net $ (1,880 ) $ 491 Income tax benefit (expense) recognized in Provision for income taxes 484 (127 ) Total effects of the interest rate swaps on Net (loss) income $ (1,396 ) $ 364 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Leases [Abstract] | |
Assets and liabilities, lessee | The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION MARCH 29, 2020 DECEMBER 29, 2019 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,249,750 $ 1,266,548 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,076 2,036 Total lease assets, net $ 1,251,826 $ 1,268,584 Current operating lease liabilities (2) Accrued and other current liabilities $ 185,278 $ 171,866 Current finance lease liabilities Current portion of long-term debt 1,242 1,361 Non-current operating lease liabilities Non-current operating lease liabilities 1,281,372 1,279,051 Non-current finance lease liabilities Long-term debt, net 1,086 947 Total lease liabilities $ 1,468,978 $ 1,453,225 ________________ (1) Net of accumulated amortization of $1.6 million and $1.3 million as of March 29, 2020 and December 29, 2019 , respectively. (2) |
Lease, cost | Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED INCOME STATEMENT CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Operating leases (1) Other restaurant operating $ 45,882 $ 45,233 Variable lease cost Other restaurant operating 1,120 819 Finance leases Amortization of leased assets Depreciation and amortization 342 324 Interest on lease liabilities Interest expense, net 46 73 Sublease revenue (2) Franchise and other revenues (1,677 ) (1,314 ) Lease costs, net $ 45,713 $ 45,135 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $3.6 million , which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million , which is included in Cost of sales . (2) Excludes rental income from Company-owned properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $0.2 million and $0.7 million , respectively. |
Cash flow, operating activities | The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 48,492 $ 47,649 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value, financial instruments measured on nonrecurring basis, valuation techniques | Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 2,324 $ 2,324 $ — $ 1,037 $ 1,037 $ — Money market funds 7,046 7,046 — 12,752 12,752 — Total asset recurring fair value measurements $ 9,370 $ 9,370 $ — $ 13,789 $ 13,789 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 13,335 $ — $ 13,335 $ 7,174 $ — $ 7,174 Other long-term liabilities: Derivative instruments - interest rate swaps 26,758 — 26,758 16,835 — 16,835 Total liability recurring fair value measurements $ 40,093 $ — $ 40,093 $ 24,009 $ — $ 24,009 |
Fair value, assets measured on recurring basis, methods and assumptions | Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments The Company’s derivative instruments include interest rate swaps. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of March 29, 2020 and December 29, 2019, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. |
Fair value, assets and liabilities measured on a nonrecurring basis | The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2020 MARCH 31, 2019 (dollars in thousands) CARRYING VALUE TOTAL IMPAIRMENT CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ 1,182 $ 75 $ 2,149 $ 215 Operating lease right-of-use assets (2) 55,644 19,563 2,242 596 Property, fixtures and equipment (3) 21,693 18,398 490 2,671 Goodwill and other assets (4) 1,044 2,388 — — $ 79,563 $ 40,424 $ 4,881 $ 3,482 ____________________ (1) Assets generally measured using third-party market appraisals or executed sales contracts (Level 2). (2) Carrying values measured using Level 3 inputs to estimate fair value totaled $55.6 million and $2.0 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (3) Carrying values measured using Level 3 inputs to estimate fair value totaled $19.2 million and $0.5 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (4) All assets measured using the quoted market value of comparable assets (Level 2). |
Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques | The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred during the period indicated: THIRTEEN WEEKS ENDED UNOBSERVABLE INPUTS MARCH 29, 2020 Weighted-average cost of capital 10.4% Long-term growth rate 1.5% to 2.0% |
Schedule of carrying value and fair value of senior secured credit facilities and other unsecured debt | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: MARCH 29, 2020 DECEMBER 29, 2019 CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 (dollars in thousands) Senior Secured Credit Facility: Term loan A $ 443,750 $ 397,156 $ 450,000 $ 450,563 Revolving credit facility $ 975,000 $ 832,777 $ 599,000 $ 599,000 |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Credit Loss [Abstract] | |
Allowance for credit losses rollforward | The following is a rollforward of the allowance for trade receivable expected credit losses for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 Allowance for credit losses, beginning of period $ 199 Adjustment for adoption of ASU No. 2016-13 1,018 Provision for expected credit losses 3,334 Allowance for credit losses, end of period $ 4,551 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 (Loss) income before (benefit) provision for income taxes $ (54,069 ) $ 71,145 (Benefit) provision for income taxes $ (19,655 ) $ 5,496 Effective income tax rate 36.4 % 7.7 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 29, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenue by segment, for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Total revenues U.S. $ 894,497 $ 1,014,507 International 113,840 113,624 Total revenues $ 1,008,337 $ 1,128,131 |
Reconciliation of operating profit from segments to consolidated | The following table is a reconciliation of Segment income from operations to (Loss) income before (benefit) provision for income taxes , for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Segment income from operations U.S. $ 11,379 $ 113,035 International 6,787 13,720 Total segment income from operations 18,166 126,755 Unallocated corporate operating expense (59,734 ) (44,261 ) Total (loss) income from operations (41,568 ) 82,494 Other expense, net (793 ) (168 ) Interest expense, net (11,708 ) (11,181 ) (Loss) income before (benefit) provision for income taxes $ (54,069 ) $ 71,145 |
Reconciliation of segment depreciation and amortization | The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2020 MARCH 31, 2019 Depreciation and amortization U.S. $ 37,640 $ 38,786 International 6,758 6,456 Corporate 3,870 4,240 Total depreciation and amortization $ 48,268 $ 49,482 |
Description of the Business a_3
Description of the Business and Basis of Presentation Description of Business (Details) | Mar. 29, 2020restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of restaurant concepts in portfolio | 4 |
Description of the Business a_4
Description of the Business and Basis of Presentation Adoption of New Accounting Procurements 2016-13 (Details) - USD ($) $ in Thousands | Dec. 30, 2019 | Mar. 29, 2020 |
ASU No. 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable, change in method, credit loss expense | $ 1,000 | $ 1,018 |
Deferred tax assets, net of valuation allowance | 1,500 | |
Property lease guarantee [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease guarantee contingent liabilities | $ 9,700 | |
Property lease guarantee [Member] | ASU No. 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease guarantee contingent liabilities | 4,800 | |
Accumulated deficit [Member] | ASU No. 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New accounting pronouncement, cumulative effect of change on equity | $ 4,300 |
COVID-19 Impact COVID-19 Impact
COVID-19 Impact COVID-19 Impact - Summary of charges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Unusual or Infrequent Item, or Both [Line Items] | |||
Inventory obsolescence and spoilage | $ 5,291 | $ 0 | |
Total costs and expenses | 1,049,905 | 1,045,637 | |
Provision for impaired assets and restaurant closings [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Goodwill and other impairment | 40,424 | $ 3,482 | |
COVID-19 pandemic [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Total costs and expenses | 65,063 | ||
COVID-19 pandemic [Member] | Cost of sales [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Inventory obsolescence and spoilage | [1] | 6,182 | |
COVID-19 pandemic [Member] | Labor and other related [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Relief pay | [2] | 16,186 | |
COVID-19 pandemic [Member] | General and administrative expense [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Allowance for expected credit losses | [3] | 3,334 | |
Other charges | 573 | ||
COVID-19 pandemic [Member] | General and administrative expense [Member] | Property lease guarantee [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Lease guarantee contingent liabilities | [4] | 4,188 | |
COVID-19 pandemic [Member] | Provision for impaired assets and restaurant closings [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Right-of-use asset impairment | [5] | 20,484 | |
COVID-19 pandemic [Member] | Provision for impaired assets and restaurant closings [Member] | Property, fixtures and equipment, net [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Fixed asset impairment | [5] | 11,728 | |
COVID-19 pandemic [Member] | Provision for impaired assets and restaurant closings [Member] | Goodwill and other assets [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Goodwill and other impairment | [6] | $ 2,388 | |
[1] | Includes the write-off of value added tax credits related to the purchase of inventory by the Company’s Brazil subsidiary. | ||
[2] | Represents relief pay for hourly employees impacted by the closure of dining rooms. | ||
[3] | Includes additional reserves based on the Company’s increase in expected credit losses, primarily related to franchise receivables. | ||
[4] | Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. | ||
[5] | Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for current economic conditions and the closure of certain restaurants. | ||
[6] | Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 8 - Goodwill and Intangible Assets, Net |
Revenue Recognition - Principal
Revenue Recognition - Principal Revenue Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Restaurant sales, franchise and other revenues | $ 1,008,337 | $ 1,128,131 |
Restaurant sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Restaurant sales, franchise and other revenues | 996,237 | 1,111,642 |
Franchise and other revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Restaurant sales, franchise and other revenues | 12,100 | 16,489 |
Franchise revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Restaurant sales, franchise and other revenues | 9,549 | 13,762 |
Other revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Restaurant sales, franchise and other revenues | $ 2,551 | $ 2,727 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 1,008,337 | $ 1,128,131 | |
U.S. segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 894,497 | 1,014,507 | |
International segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 113,840 | 113,624 | |
Restaurant sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 996,237 | 1,111,642 | |
Restaurant sales [Member] | U.S. segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 884,889 | 1,000,813 | |
Restaurant sales [Member] | International segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 111,348 | 110,829 | |
Restaurant sales [Member] | Outback Steakhouse [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 530,685 | 586,771 | |
Restaurant sales [Member] | Carrabba's Italian Grill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 146,875 | 173,475 | |
Restaurant sales [Member] | Bonefish Grill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 135,072 | 156,434 | |
Restaurant sales [Member] | Fleming's Prime Steakhouse & Wine Bar [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 70,960 | 83,026 | |
Restaurant sales [Member] | Other - U.S. [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 1,297 | 1,107 | |
Restaurant sales [Member] | Outback Brazil [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | [1] | 91,590 | 89,565 |
Restaurant sales [Member] | Other - International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | [1],[2] | 19,758 | 21,264 |
Franchise revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 9,549 | 13,762 | |
Franchise revenue [Member] | U.S. segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 7,138 | 10,982 | |
Franchise revenue [Member] | International segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 2,411 | 2,780 | |
Franchise revenue [Member] | Outback Steakhouse [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 6,541 | 10,601 | |
Franchise revenue [Member] | Carrabba's Italian Grill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 461 | 171 | |
Franchise revenue [Member] | Bonefish Grill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 136 | 210 | |
Franchise revenue [Member] | Fleming's Prime Steakhouse & Wine Bar [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 0 | 0 | |
Franchise revenue [Member] | Other - U.S. [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 0 | 0 | |
Franchise revenue [Member] | Outback Brazil [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | 0 | 0 | |
Franchise revenue [Member] | Other - International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 2,411 | $ 2,780 | |
[1] | Brazil Restaurant sales are reported on a one-month lag and are presented on a calendar basis. Restaurant sales for Brazil during the first fiscal quarter of 2020 (through February 29, 2020) do not include any material impact from the COVID-19 pandemic. | ||
[2] | Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | Mar. 31, 2019 | Dec. 30, 2018 |
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions, current | $ 13,049 | $ 18,554 | $ 11,195 | $ 16,431 |
Unearned revenue | 289,085 | 369,282 | ||
Deferred gift card revenue [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 277,518 | 358,757 | $ 240,923 | $ 333,794 |
Other current assets, net [Member] | ||||
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions, current | 13,049 | 18,554 | ||
Unearned revenue [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 289,085 | 369,282 | ||
Unearned revenue [Member] | Deferred gift card revenue [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 277,518 | 358,757 | ||
Unearned revenue [Member] | Deferred loyalty revenue [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 11,076 | 10,034 | ||
Unearned revenue [Member] | Deferred franchise fees [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 491 | 491 | ||
Other long-term liabilities, net [Member] | Deferred franchise fees [Member] | ||||
Revenue Recognition [Line Items] | ||||
Deferred franchise fees, noncurrent | $ 4,453 | $ 4,599 |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Assets and Liabilities - Deferred Gift Card Commissions Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Revenue Recognition [Abstract] | ||
Balance, beginning of period | $ 18,554 | $ 16,431 |
Deferred gift card sales commissions amortization | (9,090) | (8,407) |
Deferred gift card sales commissions capitalization | 4,324 | 3,833 |
Other | (739) | (662) |
Balance, end of period | $ 13,049 | $ 11,195 |
Revenue Recognition - Contrac_3
Revenue Recognition - Contract Assets and Liabilities - Deferred Gift Card Revenue Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Revenue Recognition [Line Items] | ||
Balance, beginning of the period | $ 369,282 | |
Balance, end of the period | 289,085 | |
Deferred gift card revenue [Member] | ||
Revenue Recognition [Line Items] | ||
Balance, beginning of the period | 358,757 | $ 333,794 |
Gift card sales | 58,439 | 55,472 |
Gift card redemptions | (133,181) | (141,459) |
Gift card breakage | (6,497) | (6,884) |
Balance, end of the period | $ 277,518 | $ 240,923 |
Impairments, Exit Costs and D_3
Impairments, Exit Costs and Disposals (Provision for impaired assets and restaurant closings) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Provision for impaired assets and restaurant closings | $ 41,318 | $ 3,586 | |
Goodwill impairment charges | (1,973) | ||
Provision for impaired assets and restaurant closings [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 40,424 | 3,482 | |
Restaurant closure expenses | 894 | 104 | |
U.S. segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill impairment charges | 0 | ||
U.S. segment [Member] | Provision for impaired assets and restaurant closings [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 30,972 | 3,464 | |
Restaurant closure expenses | 721 | 87 | |
U.S. segment [Member] | Provision for impaired assets and restaurant closings [Member] | COVID-19 pandemic [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 31,300 | ||
International segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill impairment charges | (1,973) | ||
International segment [Member] | Outback Hong Kong [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill impairment charges | (2,000) | ||
International segment [Member] | Provision for impaired assets and restaurant closings [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 3,172 | [1] | 18 |
Restaurant closure expenses | 173 | 17 | |
International segment [Member] | Provision for impaired assets and restaurant closings [Member] | COVID-19 pandemic [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 3,300 | ||
Corporate, non-segment [Member] | Provision for impaired assets and restaurant closings [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 6,280 | $ 0 | |
Corporate, non-segment [Member] | Provision for impaired assets and restaurant closings [Member] | Transformational initiatives [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | $ 6,300 | ||
[1] | Includes goodwill impairment charges of $2.0 million during the thirteen weeks ended March 29, 2020 . See Note 8 - Goodwill and Intangible Assets, Net |
Impairments, Exit Costs and D_4
Impairments, Exit Costs and Disposals (Lease liability rollforward) (Details) - Facility closing [Member] $ in Thousands | 3 Months Ended | |
Mar. 29, 2020USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of the period | $ 14,542 | |
Cash payments | (925) | |
Accretion | 281 | |
Adjustments | 428 | |
Balance, end of the period | 14,326 | [1] |
Accrued and other current liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, current | 3,200 | |
Non-current operating lease liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, noncurrent | $ 11,100 | |
[1] | As of March 29, 2020 , the Company had exit-related accruals related to certain closure initiatives of $3.2 million recorded in Accrued and other current liabilities and $11.1 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Impairments, Exit Costs and D_5
Impairments, Exit Costs and Disposals Impairments, Exit Costs and Disposals (Refranchising) (Details) - Carrabba's Italian Grill [Member] - Disposal group, disposed of by sale, not discontinued operations [Member] $ in Millions | Mar. 31, 2019USD ($)Restaurants |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of restaurants | Restaurants | 18 |
Proceeds from sale of a business, net of cash divested | $ | $ 3.6 |
(Loss) Earnings Per Share (Basi
(Loss) Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Schedule of earnings per share, basic and diluted [Line Items] | ||
Net (loss) income attributable to Bloomin’ Brands | $ (34,611) | $ 64,300 |
Redemption of preferred stock in excess of carrying value | (3,496) | 0 |
Net (loss) income attributable to common stockholders | $ (38,107) | $ 64,300 |
Basic weighted average common shares outstanding | 87,129 | 91,415 |
Effect of diluted securities: | ||
Diluted weighted average common shares outstanding | 87,129 | 92,661 |
Basic (loss) earnings per share attributable to common stockholders | $ (0.44) | $ 0.70 |
Diluted (loss) earnings per share attributable to common stockholders | $ (0.44) | $ 0.69 |
Stock options [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 0 | 792 |
Nonvested restricted stock units [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 0 | 358 |
Nonvested performance-based share units [Member] | ||
Effect of diluted securities: | ||
Dilutive shares | 0 | 96 |
(Loss) Earnings Per Share (Anti
(Loss) Earnings Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Stock options [Member] | ||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities not included in the computation of (loss) earnings per share | 4,665 | 3,384 |
Nonvested restricted stock units [Member] | ||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities not included in the computation of (loss) earnings per share | 651 | 222 |
Nonvested performance-based share units [Member] | ||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities not included in the computation of (loss) earnings per share | 533 | 260 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Stock-based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 3,214 | $ 3,911 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 832 | 1,159 |
Restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 1,683 | 1,749 |
Performance-based share units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 699 | $ 1,003 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans (Grants During Period) (Details) shares in Millions | 3 Months Ended |
Mar. 29, 2020shares | |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 0.1 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.3 |
Performance-based share units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.5 |
Stock-based Compensation Plan_4
Stock-based Compensation Plans (Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted) (Details) - Stock options [Member] - $ / shares | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Weighted-average risk-free interest rate | [1] | 0.90% | 2.51% |
Dividend yield | [2] | 4.34% | 1.89% |
Expected term | [3] | 5 years 6 months | 5 years 6 months |
Weighted-average volatility | [4] | 30.43% | 31.87% |
Weighted-average grant date fair value per option (in dollars per share) | $ 3.12 | $ 5.76 | |
[1] | Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. | ||
[2] | Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. | ||
[3] | Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. | ||
[4] | Based on the historical volatility of the Company’s stock. |
Stock-based Compensation Plan_5
Stock-based Compensation Plans (Unrecognized stock compensation expense and the remaining weighted-average vesting period) (Details) $ in Thousands | 3 Months Ended |
Mar. 29, 2020USD ($) | |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock options | $ 6,127 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 1 year 9 months 18 days |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 16,967 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 2 years 2 months 12 days |
Performance-based share units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 14,016 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 2 years 3 months 18 days |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Prepaid expenses | $ 27,716 | $ 20,218 | |||
Deferred gift card sales commissions | 13,049 | 18,554 | $ 11,195 | $ 16,431 | |
Assets held for sale | 5,640 | 3,317 | |||
Other current assets, net | 14,452 | [1] | 3,261 | ||
Total other current assets, net | 100,964 | 186,462 | |||
Company-owned life insurance | 46,534 | [2] | 60,126 | ||
Other current assets, net [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Deferred gift card sales commissions | 13,049 | 18,554 | |||
Company-owned life insurance | 10,000 | ||||
Accounts receivable - gift cards, net [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 9,851 | 104,591 | |||
Accounts receivable - vendors, net [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 10,407 | 13,465 | |||
Accounts receivable - franchisees, net [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 435 | 1,322 | |||
Accounts receivable - other, net [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | $ 19,414 | $ 21,734 | |||
[1] | Includes $10.0 million of Company-owned life insurance policies as of March 29, 2020 transferred to current assets during the thirteen weeks ended March 29, 2020 for planned payment of deferred compensation obligations. | ||||
[2] | During the thirteen weeks ended March 29, 2020 , the Company reclassified $10.0 million of Company-owned life insurance policies to current assets for planned payment of deferred compensation obligations. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Details) $ in Thousands | 3 Months Ended |
Mar. 29, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 29, 2019 | $ 288,439 |
Translation adjustments | (3,838) |
Goodwill impairment charges | (1,973) |
Balance as of March 29, 2020 | 282,628 |
U.S. segment [Member] | |
Goodwill [Roll Forward] | |
Balance as of December 29, 2019 | 170,657 |
Translation adjustments | 0 |
Goodwill impairment charges | 0 |
Balance as of March 29, 2020 | 170,657 |
International segment [Member] | |
Goodwill [Roll Forward] | |
Balance as of December 29, 2019 | 117,782 |
Translation adjustments | (3,838) |
Goodwill impairment charges | (1,973) |
Balance as of March 29, 2020 | 111,971 |
International segment [Member] | Outback Hong Kong [Member] | |
Goodwill [Roll Forward] | |
Goodwill impairment charges | $ (2,000) |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | ||
Schedule of Other Assets, Net [Line Items] | ||||
Company-owned life insurance | $ 46,534 | [1] | $ 60,126 | |
Deferred financing fees | [2] | 4,476 | 4,893 | |
Liquor licenses | 24,224 | 24,289 | ||
Other assets | 26,500 | 27,802 | ||
Other assets, net | 101,734 | 117,110 | ||
Accumulated amortization, deferred financing fees | 7,200 | $ 6,800 | ||
Other current assets, net [Member] | ||||
Schedule of Other Assets, Net [Line Items] | ||||
Company-owned life insurance | $ 10,000 | |||
[1] | During the thirteen weeks ended March 29, 2020 , the Company reclassified $10.0 million of Company-owned life insurance policies to current assets for planned payment of deferred compensation obligations. | |||
[2] | Net of accumulated amortization of $7.2 million and $6.8 million as of March 29, 2020 and December 29, 2019 |
Long-term Debt, net (Schedule o
Long-term Debt, net (Schedule of Long-term Debt, Net) (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | |
Debt instrument [Line Items] | |||
Finance lease liabilities | $ 2,328 | $ 2,308 | |
Less: unamortized debt discount and issuance costs | (2,438) | (2,654) | |
Total debt, net | 1,418,640 | 1,048,704 | |
Less: current portion of long-term debt | (29,367) | (26,411) | |
Long-term debt, net | 1,389,273 | 1,022,293 | |
Secured debt [Member] | Senior Secured Credit Facility [Member] | |||
Debt instrument [Line Items] | |||
Long-term debt, gross | 1,418,750 | 1,049,000 | |
Secured debt [Member] | Term loan A facility [Member] | Senior Secured Credit Facility [Member] | |||
Debt instrument [Line Items] | |||
Long-term debt, gross | $ 443,750 | $ 450,000 | |
Secured debt [Member] | Term loan A facility [Member] | Senior Secured Credit Facility [Member] | Weighted average [Member] | |||
Debt instrument [Line Items] | |||
Debt instrument, interest rate at period end | [1] | 3.02% | 3.40% |
Secured debt [Member] | Revolving credit facility [Member] | Senior Secured Credit Facility [Member] | |||
Debt instrument [Line Items] | |||
Line of credit facility, amount outstanding | $ 975,000 | $ 599,000 | |
Secured debt [Member] | Revolving credit facility [Member] | Senior Secured Credit Facility [Member] | Weighted average [Member] | |||
Debt instrument [Line Items] | |||
Debt instrument, interest rate at period end | [1] | 3.29% | 3.44% |
Unsecured debt [Member] | Notes payable, other payables [Member] | |||
Debt instrument [Line Items] | |||
Other | $ 0 | $ 50 | |
Debt instrument, interest rate, stated percentage | 0.00% | 2.18% | |
[1] | Interest rate represents the weighted-average interest rate for the respective periods. |
Long-term Debt, Net Long-term D
Long-term Debt, Net Long-term Debt, Net (Schedule of Maximum TNLR) (Details) - Subsequent event [Member] - Amended Credit Agreement [Member] - Secured debt [Member] | 3 Months Ended | |||||
Sep. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | ||||
Debt instrument [Line Items] | ||||||
Debt covenants compliance, quarterly total net leverage ratio, maximum ratio level | 4.50 | [1] | 5 | [2] | 5.50 | [3] |
Annualization factor | 77.00% | 58.50% | 34.10% | |||
[1] | Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the three consecutive quarters ending September 26, 2021 divided by 77.0% | |||||
[2] | Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5% . | |||||
[3] | Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the fiscal quarter ending March 28, 2021 divided by 34.1% . |
Long-term Debt, Net Long-term_2
Long-term Debt, Net Long-term Debt, Net (Amended Credit Agreement Narrative) (Details) - Subsequent event [Member] - Secured debt [Member] | May 04, 2020USD ($) |
Amended Credit Agreement [Member] | |
Debt instrument [Line Items] | |
Debt instrument, covenant, monthly minimum liquidity | $ 125,000,000 |
Amended Credit Agreement [Member] | Eurocurrency Rate [Member] | |
Debt instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.75% |
Amended Credit Agreement [Member] | Base Rate [Member] | |
Debt instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.75% |
Amended Credit Agreement [Member] | Maximum [Member] | |
Debt instrument [Line Items] | |
Debt Instrument, covenant, monthly minimum liquidity, unrestricted cash in foreign subsidiaries | $ 25,000,000 |
Debt instrument, covenant, aggregate capital expenditures | 100,000,000 |
Debt instrument, covenant, investment in foreign subsidiaries | $ 27,500,000 |
Amended Credit Agreement [Member] | Minimum [Member] | Eurocurrency Rate [Member] | |
Debt instrument [Line Items] | |
Debt instrument, interest rate, floor | 0.00% |
Letter of credit [Member] | |
Debt instrument [Line Items] | |
Letters of credit fee, percentage | 2.75% |
Revolving credit facility [Member] | |
Debt instrument [Line Items] | |
Line of credit facility, unused capacity, commitment fee percentage | 0.40% |
Other Long-term Liabilities, _3
Other Long-term Liabilities, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Dec. 29, 2019 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued insurance liability | $ 33,490 | $ 33,818 | |
Chef and Restaurant Managing Partner deferred compensation obligations and deposits | 41,824 | 47,831 | |
Other long-term liabilities | 73,318 | [1] | 56,411 |
Other long-term liabilities, net | 148,632 | $ 138,060 | |
Other long-term liabilities, net [Member] | Property lease guarantee [Member] | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Lease guarantee contingent liabilities | 8,700 | ||
Other long-term liabilities, net [Member] | Designated as hedging instrument [Member] | Interest rate swap [Member] | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Other comprehensive loss, unrealized loss on derivatives arising during period, before tax | $ 9,900 | ||
[1] | The increase in Other long-term liabilities during the thirteen weeks ended March 29, 2020 , preliminary relates to $9.9 million of additional interest rate swap liabilities and $8.7 million of additional contingent lease liabilities. See Note 13 - Derivative Instruments and Hedging Activities and Note 18 - Commitments and Contingencies , respectively, for details regarding these increases. |
Stockholders' Equity (Dividend)
Stockholders' Equity (Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, dividends, per share, cash paid | $ 0.20 | |
Dividends, common stock, cash | $ 17,480 | $ 9,140 |
Stockholders' Equity (Redeemabl
Stockholders' Equity (Redeemable Preferred Stock) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Accumulated other comprehensive loss [Line Items] | ||
Payments for repurchase of redeemable preferred stock | $ 1,007 | $ 0 |
Redemption of preferred stock in excess of carrying value | 1,718 | |
Additional paid-in capital [Member] | ||
Accumulated other comprehensive loss [Line Items] | ||
Redemption of preferred stock in excess of carrying value | $ 3,496 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 |
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (189,013) | $ (169,776) |
Foreign currency translation adjustment [Member] | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | (159,328) | (152,031) |
Unrealized loss on derivatives, net of tax [Member] | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (29,685) | $ (17,745) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Accumulated other comprehensive loss [Line Items] | |||
Unrealized loss on derivatives, net of tax | $ (13,336) | $ (4,381) | |
Reclassification of adjustment for loss (gain) on derivatives included in Net (loss) income, net of tax | 1,396 | (364) | |
Other comprehensive (loss) income attributable to Bloomin’ Brands | (19,901) | 1,010 | |
Bloomin' Brands [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Foreign currency translation adjustment, net of tax | (7,297) | 5,847 | |
Unrealized loss on derivatives, net of tax | [1] | (13,336) | (4,381) |
Reclassification of adjustment for loss (gain) on derivatives included in Net (loss) income, net of tax | [2] | 1,396 | (364) |
Total unrealized loss on derivatives, net of tax | (11,940) | (4,745) | |
Other comprehensive (loss) income attributable to Bloomin’ Brands | (19,237) | 1,102 | |
Other comprehensive income, unrealized (loss) gain on derivatives arising during period, tax | $ (4,600) | $ (1,500) | |
[1] | Unrealized loss on derivatives is net of tax of $(4.6) million and $(1.5) million for the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. | ||
[2] | Reclassifications of adjustments for loss (gain) on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Cash flow hedges of interest rate risk) (Details) - Designated as hedging instrument [Member] - Interest rate swap [Member] $ in Millions | Oct. 25, 2018USD ($)counterparties | Mar. 29, 2020USD ($) |
Derivative [Line Items] | ||
Derivative agreements, number of counterparties | counterparties | 12 | |
Derivative, notional amount | $ 550 | |
Derivative, maturity date | Nov. 30, 2022 | |
Derivative, average fixed interest rate | 3.04% | |
Interest expense [Member] | ||
Derivative [Line Items] | ||
Cash flow hedge loss to be reclassified within twelve fiscal months | $ 14.7 | |
London Interbank Offered Rate (LIBOR) swap rate [Member] | ||
Derivative [Line Items] | ||
Derivative, variable interest rate | one-month LIBOR | |
Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, inception date | Oct. 24, 2018 | |
Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, inception date | Oct. 25, 2018 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair value and classification of interest rate swaps) (Details) - Interest rate swap [Member] - Designated as hedging instrument [Member] - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | |
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 40,093 | $ 24,009 |
Accrued and other current liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | 13,335 | 7,174 | |
Interest payable | 679 | 632 | |
Other long-term liabilities, net [Member] | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | $ 26,758 | $ 16,835 | |
[1] | See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Effects of the interest rate swaps) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Dec. 29, 2019 | |
Derivative [Line Items] | |||
Total effects of the interest rate swaps on Net income | $ (1,396) | $ 364 | |
Interest rate swap [Member] | Designated as hedging instrument [Member] | |||
Derivative [Line Items] | |||
Total effects of the interest rate swaps on Net income | (1,396) | 364 | |
Derivative, net liability position, aggregate fair value | 41,000 | $ 24,800 | |
Derivative, termination value | 41,000 | $ 24,800 | |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Interest expense [Member] | |||
Derivative [Line Items] | |||
Interest rate swap (expense) income recognized in Interest expense, net | (1,880) | 491 | |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Income tax expense [Member] | |||
Derivative [Line Items] | |||
Income tax benefit (expense) recognized in Provision for income taxes | $ 484 | $ (127) |
Leases Lessee, Lease Assets and
Leases Lessee, Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 | |
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Operating lease right-of-use assets | $ 1,249,750 | $ 1,266,548 | |
Total lease assets, net | 1,251,826 | 1,268,584 | |
Non-current operating lease liabilities | 1,281,372 | 1,279,051 | |
Total lease liability | 1,468,978 | 1,453,225 | |
Finance lease assets [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Accumulated amortization, finance lease right-of-use assets | 1,600 | 1,300 | |
Operating lease right-of-use assets [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Operating lease right-of-use assets | 1,249,750 | 1,266,548 | |
Property, fixtures and equipment, net [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Finance lease right-of-use assets | [1] | 2,076 | 2,036 |
Accrued and other current liabilities [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Current operating lease liabilities | [2] | 185,278 | 171,866 |
Current portion of long-term debt [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Current finance lease liabilities | 1,242 | 1,361 | |
Non-current operating lease liabilities [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Non-current operating lease liabilities | 1,281,372 | 1,279,051 | |
Long term debt, net [Member] | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Non-current finance lease liabilities | $ 1,086 | $ 947 | |
[1] | Net of accumulated amortization of $1.6 million and $1.3 million as of March 29, 2020 and December 29, 2019 | ||
[2] | Excludes accrued contingent percentage rent. |
Leases Lessee, Lease Costs (Det
Leases Lessee, Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Schedule of Lease Costs [Line Items] | |||
Lease costs, net | $ 45,713 | $ 45,135 | |
Operating lease, lease income | 200 | 700 | |
Other restaurant operating [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Operating leases | [1] | 45,882 | 45,233 |
Variable lease cost | 1,120 | 819 | |
Depreciation and amortization [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Amortization of leased assets | 342 | 324 | |
Interest expense [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Interest on lease liabilities | 46 | 73 | |
Franchise and other revenues [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Sublease revenue | [2] | (1,677) | (1,314) |
General and administrative expense [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Operating leases | 3,600 | 3,600 | |
Cost of sales [Member] | |||
Schedule of Lease Costs [Line Items] | |||
Operating leases | $ 300 | $ 300 | |
[1] | Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $3.6 million , which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million , which is included in Cost of sales | ||
[2] | Excludes rental income from Company-owned properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $0.2 million and $0.7 million , respectively. |
Leases Lessee, Other Informatio
Leases Lessee, Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 48,492 | $ 47,649 |
Fair Value Measurements (Fair v
Fair Value Measurements (Fair value measurements on a recurring basis) (Details) - Fair value, measurements, recurring [Member] - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 |
Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 9,370 | $ 13,789 |
Liabilities, fair value disclosure | 0 | 0 |
Fair value, inputs, level 1 [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 0 | 0 |
Fair value, inputs, level 1 [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 0 | 0 |
Fair value, inputs, level 1 [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 2,324 | 1,037 |
Fair value, inputs, level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 7,046 | 12,752 |
Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Liabilities, fair value disclosure | 40,093 | 24,009 |
Fair value, inputs, level 2 [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 13,335 | 7,174 |
Fair value, inputs, level 2 [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 26,758 | 16,835 |
Fair value, inputs, level 2 [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Fair value, inputs, level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Carrying value measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9,370 | 13,789 |
Liabilities, fair value disclosure | 40,093 | 24,009 |
Carrying value measurement [Member] | Accrued and other current liabilities [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 13,335 | 7,174 |
Carrying value measurement [Member] | Other long-term liabilities, net [Member] | Interest rate swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 26,758 | 16,835 |
Carrying value measurement [Member] | Fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 2,324 | 1,037 |
Carrying value measurement [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | $ 7,046 | $ 12,752 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair value measurements on a nonrecurring basis) (Details) - Fair value, measurements, nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment losses | $ 40,424 | $ 3,482 | |
Assets held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale, impairment | 75 | 215 | |
Operating lease right-of-use assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating lease assets, impairment | 19,563 | 596 | |
Operating lease right-of-use assets [Member] | Fair value, inputs, level 2 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 200 | ||
Operating lease right-of-use assets [Member] | Fair value, inputs, level 3 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 55,600 | 2,000 | |
Property, fixtures and equipment, net [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, fixtures and equipment, impairment | 18,398 | 2,671 | |
Property, fixtures and equipment, net [Member] | Fair value, inputs, level 2 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 2,500 | ||
Property, fixtures and equipment, net [Member] | Fair value, inputs, level 3 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 19,200 | 500 | |
Goodwill and other assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment losses | 2,388 | 0 | |
Carrying value measurement [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 79,563 | 4,881 | |
Carrying value measurement [Member] | Assets held for sale [Member] | Fair value, inputs, level 2 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | [1] | 1,182 | 2,149 |
Carrying value measurement [Member] | Operating lease right-of-use assets [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | [2] | 55,644 | 2,242 |
Carrying value measurement [Member] | Property, fixtures and equipment, net [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | [3] | 21,693 | 490 |
Carrying value measurement [Member] | Goodwill and other assets [Member] | Fair value, inputs, level 2 [Member] | Assets measured with impairment, year-to-date [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | [4] | $ 1,044 | $ 0 |
[1] | Assets generally measured using third-party market appraisals or executed sales contracts (Level 2). | ||
[2] | Carrying values measured using Level 3 inputs to estimate fair value totaled $55.6 million and $2.0 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. | ||
[3] | Carrying values measured using Level 3 inputs to estimate fair value totaled $19.2 million and $0.5 million during the thirteen weeks ended March 29, 2020 and March 31, 2019 , respectively. All other assets were valued using Level 2 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. | ||
[4] | All assets measured using the quoted market value of comparable assets (Level 2). |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair value inputs on a nonrecurring basis) (Details) - Operating lease right-of-use-asset and property, fixtures and equipment [Member] - Fair value, measurements, nonrecurring [Member] - Fair value, inputs, level 3 [Member] | 3 Months Ended |
Mar. 29, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, weighted-average cost of capital | 10.40% |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, long-term growth rate | 1.50% |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, long-term growth rate | 2.00% |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying value and fair value of debt by hierarchy level) (Details) - Secured debt [Member] - Senior Secured Credit Facility [Member] - USD ($) $ in Thousands | Mar. 29, 2020 | Dec. 29, 2019 |
Fair value, inputs, level 2 [Member] | Term loan A facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value disclosure | $ 397,156 | $ 450,563 |
Fair value, inputs, level 2 [Member] | Revolving credit facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value disclosure | 832,777 | 599,000 |
Carrying value measurement [Member] | Term loan A facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 443,750 | 450,000 |
Carrying value measurement [Member] | Revolving credit facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 975,000 | $ 599,000 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses Allowance for Expected Credit Losses Rollforward (Details) - USD ($) $ in Thousands | Dec. 30, 2019 | Mar. 29, 2020 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning of period | $ 199 | $ 199 |
Provision for expected credit losses | 3,334 | |
Allowance for credit losses, end of period | 4,551 | |
ASU No. 2016-13 [Member] | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adjustment for adoption of ASU No. 2016-13 | $ 1,000 | $ 1,018 |
Income Taxes - Change in Effect
Income Taxes - Change in Effective Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
(Loss) income before (benefit) provision for income taxes | $ (54,069) | $ 71,145 |
(Benefit) provision for income taxes | $ (19,655) | $ 5,496 |
Effective income tax rate | 36.40% | 7.70% |
Change in effective income tax rate, percent | 28.70% | |
Blended federal and state statutory income tax rate | 26.00% |
Income Taxes Income Taxes - Tax
Income Taxes Income Taxes - Tax Carryforwards (Details) - Internal Revenue Service (IRS) [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2020 | Dec. 27, 2020 | Dec. 29, 2019 | |
Income Tax Contingency [Line Items] | |||
General business tax credit carryforwards | $ 128.6 | ||
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
General business tax credits, estimated period of use | 7 years | ||
Minimum [Member] | Forecast [Member] | |||
Income Tax Contingency [Line Items] | |||
General business tax credits, estimated future tax credits | $ 50 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
General business tax credits, estimated period of use | 9 years | ||
Maximum [Member] | Forecast [Member] | |||
Income Tax Contingency [Line Items] | |||
General business tax credits, estimated future tax credits | $ 80 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation and Other Matters (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Dec. 29, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated litigation liability | $ 3.3 | $ 3 |
Commitments and Contingencies _
Commitments and Contingencies – Lease Guarantees (Details) - Property lease guarantee [Member] $ in Thousands | 3 Months Ended | |
Mar. 29, 2020USD ($) | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 31,300 | |
Guarantee obligations, maximum exposure at present value | 24,900 | |
Lease guarantee contingent liabilities | 9,700 | |
General and administrative expense [Member] | COVID-19 pandemic [Member] | ||
Loss Contingencies [Line Items] | ||
Lease guarantee contingent liabilities | $ 4,188 | [1] |
[1] | Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2020USD ($)reportable_segment | |
Restructuring Cost and Reserve [Line Items] | |
Number of reportable segments | reportable_segment | 2 |
Corporate, non-segment [Member] | General and administrative expense [Member] | Employee severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ | $ 22.2 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 1,008,337 | $ 1,128,131 |
U.S. segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 894,497 | 1,014,507 |
International segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 113,840 | $ 113,624 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income (loss) from operations | $ (41,568) | $ 82,494 |
Other expense, net | (793) | (168) |
Interest expense, net | (11,708) | (11,181) |
(Loss) income before (benefit) provision for income taxes | (54,069) | 71,145 |
Operating segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income (loss) from operations | 18,166 | 126,755 |
Operating segments [Member] | U.S. segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income (loss) from operations | 11,379 | 113,035 |
Operating segments [Member] | International segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income (loss) from operations | 6,787 | 13,720 |
Corporate, non-segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income (loss) from operations | $ (59,734) | $ (44,261) |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | $ 48,268 | $ 49,482 |
Operating segments [Member] | U.S. segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | 37,640 | 38,786 |
Operating segments [Member] | International segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | 6,758 | 6,456 |
Corporate, non-segment [Member] | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Depreciation and amortization | $ 3,870 | $ 4,240 |
Subsequent Events (Text) (Detai
Subsequent Events (Text) (Details) - 2025 Notes [Member] - Subsequent event [Member] $ / shares in Units, shares in Thousands | May 08, 2020USD ($)$ / sharesshares | May 12, 2020USD ($) |
Subsequent Event [Line Items] | ||
Debt conversion, converted instrument, shares issued | shares | 19,348 | |
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 16.64 | |
Convertible debt [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $ 200,000,000 | $ 30,000,000 |
Debt instrument, interest rate, stated percentage | 5.00% | |
Long-term debt, maturity date | May 1, 2025 | |
Debt instrument, convertible, number of equity instruments | 84.122 | |
Debt instrument, convertible principal amount | $ 1,000 | |
Debt instrument, face amount, total | $ 230,000,000 | |
Debt instrument, convertible, conversion price | $ / shares | $ 11.89 | |
Proceeds from issuance of private placement | $ 221,400,000 | |
Payments of debt issuance costs | 6,900,000 | |
Debt instrument, fee amount | 1,700,000 | |
Convertible debt proceeds used for payments for hedge activities, net of warrant proceeds | $ 19,600,000 |
Uncategorized Items - blmn-3292
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 141,285,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,292,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,292,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 141,285,000 |