Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Feb. 17, 2020 | Jun. 27, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 26, 2019 | ||
Entity Registrant Name | MARCUS CORP | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 703,219,990 | ||
Entity Interactive Data Current | Yes | ||
Entity Central Index Key | 0000062234 | ||
Current Fiscal Year End Date | --12-26 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | MCS | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 23,023,221 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,925,504 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents (Note 1) | $ 20,862 | $ 17,114 |
Restricted cash (Note 1) | 4,756 | 4,813 |
Accounts receivable, net of reserves (Note 6) | 29,465 | 25,684 |
Refundable income taxes | 5,916 | 5,983 |
Other current assets (Note 1) | 18,265 | 15,355 |
Total current assets | 79,264 | 68,949 |
PROPERTY AND EQUIPMENT, NET (Note 6) | 923,254 | 840,043 |
OPERATING LEASE RIGHT-OF-USE ASSETS (Note 8) | 243,855 | |
OTHER ASSETS: | ||
Investments in joint ventures (Note 13) | 3,595 | 4,069 |
Goodwill (Note 1) | 75,282 | 43,170 |
Other (Note 6) | 33,936 | 33,100 |
Total other assets | 112,813 | 80,339 |
Total assets | 1,359,186 | 989,331 |
CURRENT LIABILITIES: | ||
Accounts payable | 49,370 | 37,452 |
Taxes other than income taxes | 20,613 | 18,743 |
Accrued compensation | 18,055 | 17,547 |
Other accrued liabilities (Note 1) | 61,134 | 59,645 |
Current portion of finance lease obligations (Note 8) | 2,571 | 5,912 |
Current portion of operating lease obligations (Note 8) | 13,335 | |
Current maturities of long-term debt (Note 7) | 9,910 | 9,957 |
Total current liabilities | 174,988 | 149,256 |
FINANCE LEASE OBLIGATIONS (Note 8) | 20,802 | 22,208 |
OPERATING LEASE OBLIGATIONS (Note 8) | 232,111 | |
LONG-TERM DEBT (Note 7) | 206,432 | 228,863 |
DEFERRED INCOME TAXES (Note 11) | 48,262 | 41,977 |
DEFERRED COMPENSATION AND OTHER (Note 10) | 55,133 | 56,908 |
COMMITMENTS AND LICENSE RIGHTS (Note 12) | ||
EQUITY (Note 9): | ||
Preferred Stock, $1 par; authorized 1,000,000 shares; none issued | 0 | 0 |
Capital in excess of par | 145,549 | 63,830 |
Retained earnings | 461,884 | 439,178 |
Accumulated other comprehensive loss | (12,648) | (6,758) |
Stockholders' Equity before Treasury Stock | 625,975 | 527,440 |
Less cost of Common Stock in treasury (242,853 shares at December 26, 2019 and 2,839,079 shares at December 27, 2018) | (4,540) | (37,431) |
Total shareholders' equity attributable to The Marcus Corporation | 621,435 | 490,009 |
Noncontrolling interest | 23 | 110 |
Total equity | 621,458 | 490,119 |
Total liabilities and shareholders' equity | 1,359,186 | 989,331 |
Common Stock [Member] | ||
EQUITY (Note 9): | ||
Common Stock, Value | 23,254 | 22,843 |
Total equity | 23,254 | 22,843 |
Class B Common Stock [Member] | ||
EQUITY (Note 9): | ||
Common Stock, Value | 7,936 | 8,347 |
Total equity | $ 7,936 | $ 8,347 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 26, 2019 | Dec. 27, 2018 |
Preferred Stock, par (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, authorized | 1,000,000 | 1,000,000 |
Preferred Stock, issued | 0 | 0 |
Cost of Common Stock in treasury, shares | 242,853 | 2,839,079 |
Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 50,000,000 | 50,000,000 |
Common Stock, issued | 23,253,744 | 22,843,096 |
Class B Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 33,000,000 | 33,000,000 |
Common Stock, issued | 7,935,769 | 8,346,417 |
Common Stock, outstanding | 7,935,769 | 8,346,417 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |||
REVENUES: | |||||
Revenues | $ 783,705 | $ 672,835 | $ 622,714 | ||
Cost reimbursements | 37,158 | 34,285 | 30,838 | ||
Total revenues | 820,863 | 707,120 | 653,552 | ||
COSTS AND EXPENSES: | |||||
Advertising and marketing | 24,583 | 23,775 | 23,960 | ||
Administrative | 73,522 | 72,116 | 66,954 | ||
Depreciation and amortization | 72,277 | 61,342 | 51,719 | ||
Rent (Note 8) | 26,099 | 11,267 | 11,869 | ||
Property taxes | 21,871 | 19,396 | 18,815 | ||
Other operating expenses | 41,065 | 36,534 | 31,525 | ||
Impairment charge (Note 3) | 1,874 | 0 | 0 | ||
Reimbursed costs | 37,158 | 34,285 | 30,838 | ||
Total costs and expenses | 752,672 | 623,931 | 576,245 | ||
OPERATING INCOME | 68,191 | 83,189 | 77,307 | ||
OTHER INCOME (EXPENSE): | |||||
Investment income | 1,379 | 208 | 588 | ||
Interest expense | (11,791) | (13,079) | (12,100) | ||
Other expense | (1,921) | (1,985) | (1,712) | ||
Gain (loss) on disposition of property, equipment and other assets | (1,149) | (1,342) | 3,981 | ||
Equity earnings (losses) from unconsolidated joint ventures, net (Note 13) | (274) | (399) | 46 | ||
Nonoperating Income (Expense), Total | (13,756) | (16,597) | (9,197) | ||
EARNINGS BEFORE INCOME TAXES | 54,435 | 66,592 | 68,110 | ||
INCOME TAXES (Note 11) | 12,320 | 13,127 | 3,625 | ||
NET EARNINGS | 42,115 | 53,465 | 64,485 | ||
NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 98 | 74 | (511) | ||
NET EARNINGS ATTRIBUTABLE TO THE MARCUS CORPORATION | 42,017 | 53,391 | 64,996 | ||
Theatre admissions [Member] | |||||
REVENUES: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 284,141 | 246,385 | 227,091 | ||
Rooms [Member] | |||||
REVENUES: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 105,857 | 108,786 | 106,876 | ||
COSTS AND EXPENSES: | |||||
Cost of Goods and Services Sold | 40,381 | 41,181 | 40,286 | ||
Theatre concessions [Member] | |||||
REVENUES: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 231,237 | 166,564 | 148,989 | ||
COSTS AND EXPENSES: | |||||
Cost of Goods and Services Sold | 85,289 | 47,522 | 43,634 | ||
Food and beverage [Member] | |||||
REVENUES: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 74,665 | 72,771 | 70,627 | ||
COSTS AND EXPENSES: | |||||
Cost of Goods and Services Sold | 60,812 | 58,662 | 59,375 | ||
Other revenues [Member] | |||||
REVENUES: | |||||
Revenue from Contract with Customer, Including Assessed Tax | 87,805 | [1] | 78,329 | [1] | 69,131 |
Theatre operations | |||||
COSTS AND EXPENSES: | |||||
Cost of Goods and Services Sold | $ 267,741 | $ 217,851 | $ 197,270 | ||
Common Stock [Member] | |||||
NET EARNINGS PER SHARE - BASIC: | |||||
Common Stock | $ 1.44 | $ 1.96 | $ 2.42 | ||
NET EARNINGS PER SHARE - DILUTED: | |||||
Common Stock | 1.35 | 1.86 | 2.29 | ||
Class B Common Stock [Member] | |||||
NET EARNINGS PER SHARE - BASIC: | |||||
Common Stock | 1.25 | 1.75 | 2.17 | ||
NET EARNINGS PER SHARE - DILUTED: | |||||
Common Stock | $ 1.24 | $ 1.72 | $ 2.13 | ||
[1] | Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 201409. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
NET EARNINGS | $ 42,115 | $ 53,465 | $ 64,485 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Pension gain (loss) arising during period, net of tax effect (benefit) of $(1,833), $708 and $(1,685), respectively | (5,484) | 1,925 | (2,559) |
Change in unrealized gain on available for sale investments, net of tax benefit of $0, $0 and $9, respectively | 0 | 0 | (14) |
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect of $109, $167 and $142, respectively | 327 | 454 | 214 |
Fair market value adjustment of interest rate swap, net of tax benefit of $300, $115 and $0, respectively (Note 7) | (853) | (313) | 0 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect of $44, $59 and $0, respectively (Note 7) | 120 | 164 | 0 |
Other comprehensive income (loss) | (5,890) | 2,230 | (2,359) |
COMPREHENSIVE INCOME | 36,225 | 55,695 | 62,126 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 98 | 74 | (511) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE MARCUS CORPORATION | $ 36,127 | $ 55,621 | $ 62,637 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Change in unrealized gain on available for sale investments, net of tax benefit | $ 0 | $ 0 | $ 9 |
Pension gain (loss) arising during period, net of tax effect (benefit) | (1,833) | 708 | (1,685) |
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect | 109 | 167 | 142 |
Fair market value adjustment of interest rate swap, net of tax benefit | 300 | 115 | 0 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect | $ 44 | $ 59 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member]Capital in Excess of Par [Member] | Common Stock [Member]Retained Earnings [Member] | Common Stock [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock [Member]Treasury Stock [Member] | Common Stock [Member]Shareholders' Equity Attributable to The Marcus Corporation [Member] | Common Stock [Member]Non- controlling Interests [Member] | Common Stock [Member] | Class B Common Stock [Member]Capital in Excess of Par [Member] | Class B Common Stock [Member]Retained Earnings [Member] | Class B Common Stock [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Class B Common Stock [Member]Treasury Stock [Member] | Class B Common Stock [Member]Shareholders' Equity Attributable to The Marcus Corporation [Member] | Class B Common Stock [Member]Non- controlling Interests [Member] | Class B Common Stock [Member] | Capital in Excess of Par [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Shareholders' Equity Attributable to The Marcus Corporation [Member] | Non- controlling Interests [Member] | Total | |
Balance at Dec. 29, 2016 | $ 22,490 | $ 8,700 | $ 58,584 | $ 351,220 | $ (5,066) | $ (45,816) | $ 390,112 | $ 1,535 | $ 391,647 | |||||||||||||
Cash dividends: | $ 0 | $ (9,575) | $ 0 | $ 0 | $ (9,575) | $ 0 | (9,575) | $ 0 | $ (3,929) | $ 0 | $ 0 | $ (3,929) | $ 0 | (3,929) | ||||||||
Exercise of stock options | 0 | 0 | 105 | 0 | 0 | 2,166 | 2,271 | 0 | 2,271 | |||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (850) | (850) | 0 | (850) | |||||||||||||
Savings and profit-sharing contribution | 0 | 0 | 600 | 0 | 0 | 424 | 1,024 | 0 | 1,024 | |||||||||||||
Reissuance of treasury stock | 0 | 0 | 253 | 0 | 0 | 176 | 429 | 0 | 429 | |||||||||||||
Issuance of non-vested stock | 0 | 0 | (501) | 0 | 0 | 501 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 0 | 0 | 2,411 | 0 | 0 | 0 | 2,411 | 0 | 2,411 | |||||||||||||
Purchase of noncontrolling interest | 0 | 0 | 0 | 494 | 0 | 0 | 494 | (904) | (410) | |||||||||||||
Conversions of Class B Common Stock | 166 | (166) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (20) | (20) | |||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 64,996 | (2,359) | 0 | 62,637 | (511) | 62,126 | |||||||||||||
Balance at Dec. 28, 2017 | 22,656 | 8,534 | 61,452 | 403,206 | (7,425) | (43,399) | 445,024 | 100 | 445,124 | |||||||||||||
Comprehensive income (loss) | 55,695 | |||||||||||||||||||||
Balance (Accounting Standards Update 2014-09 [Member]) at Dec. 27, 2018 | [1] | 492,180 | ||||||||||||||||||||
Balance at Dec. 27, 2018 | 22,843 | 8,347 | 63,830 | 439,178 | (6,758) | (37,431) | 490,009 | 110 | 490,119 | |||||||||||||
Reclassification to Unappropriated Retained Earnings (Accounting Standards Update 2016-01 [Member]) at Dec. 29, 2017 | 0 | 0 | 0 | (11) | 11 | 0 | 0 | 0 | 0 | |||||||||||||
Reclassification to Unappropriated Retained Earnings (Accounting Standards Update 2018-02 [Member]) at Dec. 29, 2017 | 0 | 0 | 0 | 1,574 | (1,574) | 0 | 0 | 0 | 0 | |||||||||||||
Reclassification to Unappropriated Retained Earnings (Accounting Standards Update 2014-09 [Member]) at Dec. 29, 2017 | 0 | 0 | 0 | (2,568) | 0 | 0 | (2,568) | 0 | (2,568) | |||||||||||||
Balance at Dec. 29, 2017 | 22,656 | 8,534 | 61,452 | 402,201 | (8,988) | (43,399) | 442,456 | 100 | 442,556 | |||||||||||||
Cash dividends: | 0 | (11,811) | 0 | 0 | (11,811) | 0 | (11,811) | 0 | (4,603) | 0 | 0 | (4,603) | 0 | (4,603) | ||||||||
Exercise of stock options | 0 | 0 | (736) | 0 | 0 | 7,784 | 7,048 | 0 | 7,048 | |||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (2,898) | (2,898) | 0 | (2,898) | |||||||||||||
Savings and profit-sharing contribution | 0 | 0 | 651 | 0 | 0 | 479 | 1,130 | 0 | 1,130 | |||||||||||||
Reissuance of treasury stock | 0 | 0 | 231 | 0 | 0 | 144 | 375 | 0 | 375 | |||||||||||||
Issuance of non-vested stock | 0 | 0 | (459) | 0 | 0 | 459 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 0 | 0 | 2,691 | 0 | 0 | 0 | 2,691 | 0 | 2,691 | |||||||||||||
Conversions of Class B Common Stock | 187 | (187) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (64) | (64) | |||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 53,391 | 2,230 | 0 | 55,621 | 74 | 55,695 | |||||||||||||
Balance (Accounting Standards Update 2014-09 [Member]) at Dec. 27, 2018 | [1] | 492,180 | ||||||||||||||||||||
Balance at Dec. 27, 2018 | 22,843 | 8,347 | 63,830 | 439,178 | (6,758) | (37,431) | 490,009 | 110 | 490,119 | |||||||||||||
Cash dividends: | $ 0 | $ (14,663) | $ 0 | $ 0 | $ (14,663) | $ 0 | (14,663) | $ 0 | $ (4,648) | $ 0 | $ 0 | $ (4,648) | $ 0 | (4,648) | ||||||||
Exercise of stock options | 0 | 0 | (205) | 0 | 0 | 1,725 | 1,520 | 0 | 1,520 | |||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (1,119) | (1,119) | 0 | (1,119) | |||||||||||||
Savings and profit-sharing contribution | 0 | 0 | 810 | 0 | 0 | 371 | 1,181 | 0 | 1,181 | |||||||||||||
Reissuance of treasury stock | 0 | 0 | 267 | 0 | 0 | 150 | 417 | 0 | 417 | |||||||||||||
Issuance of non-vested stock | 0 | 0 | (527) | 0 | 0 | 527 | 0 | 0 | 0 | |||||||||||||
Reissuance of treasury stock - acquisition | 0 | 0 | 77,960 | 0 | 0 | 31,237 | 109,197 | 0 | 109,197 | |||||||||||||
Share-based compensation | 0 | 0 | 3,523 | 0 | 0 | 0 | 3,523 | 0 | 3,523 | |||||||||||||
Other | 0 | 0 | (109) | 0 | 0 | 0 | (109) | 0 | (109) | |||||||||||||
Conversions of Class B Common Stock | 411 | (411) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (185) | (185) | |||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 42,017 | (5,890) | 0 | 36,127 | 98 | 36,225 | |||||||||||||
Balance at Dec. 26, 2019 | $ 23,254 | $ 7,936 | $ 145,549 | $ 461,884 | $ (12,648) | $ (4,540) | $ 621,435 | $ 23 | $ 621,458 | |||||||||||||
[1] | The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 201409. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Class B Common Stock [Member] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.58 | $ 0.55 | $ 0.45 |
Common Stock [Member] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.64 | $ 0.60 | $ 0.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
OPERATING ACTIVITIES: | |||
Net earnings | $ 42,115 | $ 53,465 | $ 64,485 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Losses (earnings) on investments in joint ventures | 274 | 399 | (46) |
Distributions from joint ventures | 200 | 65 | 377 |
Loss (gain) on disposition of property, equipment and other assets | 1,149 | 1,342 | (3,981) |
Impairment change | 1,874 | 0 | 0 |
Amortization of favorable lease right | 0 | 334 | 334 |
Depreciation and amortization | 72,277 | 61,342 | 51,719 |
Amortization of debt issuance costs | 285 | 287 | 308 |
Share-based compensation | 3,523 | 2,691 | 2,411 |
Deferred income taxes | 9,111 | 3,247 | (6,438) |
Deferred compensation and other | 1,011 | 3,339 | 911 |
Contribution of the Company's stock to savings and profit-sharing plan | 1,181 | 1,130 | 1,024 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,781) | 1,546 | (8,852) |
Other assets | 1,102 | (1,946) | (2,268) |
Operating leases | (3,355) | 0 | 0 |
Accounts payable | 9,733 | (4,232) | 15,015 |
Income taxes | 67 | 10,297 | (13,663) |
Taxes other than income taxes | 1,664 | (895) | 2,377 |
Accrued compensation | 508 | 1,920 | (1,380) |
Other accrued liabilities | 2,541 | 3,058 | 6,703 |
Total adjustments | 99,364 | 83,924 | 44,551 |
Net cash provided by operating activities | 141,479 | 137,389 | 109,036 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (64,086) | (58,660) | (114,804) |
Purchase of theatres, net of cash acquired and working capital assumed | (30,081) | 0 | 0 |
Proceeds from disposals of property, equipment and other assets | 22 | 116 | 4,524 |
Other investing activities | 199 | (429) | 911 |
Capital contribution in joint venture | 0 | (294) | (111) |
Contribution received from local government | 0 | 0 | 1,545 |
Proceeds from sale of interests in joint ventures | 0 | 0 | 6,729 |
Net cash used in investing activities | (93,946) | (59,267) | (101,206) |
Debt transactions: | |||
Proceeds from borrowings on revolving credit facility | 335,000 | 203,000 | 322,000 |
Repayment of borrowings on revolving credit facility | (333,000) | (254,000) | (332,000) |
Proceeds from issuance of long-term debt | 0 | 0 | 65,000 |
Principal payments on long-term debt | (24,620) | (12,153) | (36,300) |
Principal payments on finance lease obligations | (2,544) | (1,836) | (1,986) |
Debt issuance costs | 0 | 0 | (418) |
Equity transactions: | |||
Treasury stock transactions, except for stock options | (702) | (2,523) | (421) |
Exercise of stock options | 1,520 | 7,048 | 2,271 |
Dividends paid | (19,311) | (16,414) | (13,504) |
Distributions to noncontrolling interest | (185) | (64) | (20) |
Purchase of noncontrolling interest | 0 | 0 | (410) |
Net cash provided by (used in) financing activities | (43,842) | (76,942) | 4,212 |
Net increase in cash, cash equivalents and restricted cash | 3,691 | 1,180 | 12,042 |
Cash, cash equivalents and restricted cash at beginning of year | 21,927 | 20,747 | 8,705 |
Cash, cash equivalents and restricted cash at end of year | 25,618 | 21,927 | 20,747 |
Supplemental Information: | |||
Change in accounts payable for additions to property, equipment and other assets | $ 2,185 | $ (9,857) | $ 5,320 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of Business - The Marcus Corporation and its subsidiaries (the “Company”) operate principally in two business segments: Theatres: Operates multiscreen motion picture theatres in Wisconsin, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Arkansas, Colorado, Georgia, Kentucky, Louisiana, New York, Pennsylvania, Texas and Virginia, a family entertainment center in Wisconsin and a retail center in Missouri. Hotels and Resorts: Owns and operates full service hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska and manages full service hotels, resorts and other properties in Wisconsin, Illinois, Minnesota, Texas, Nevada, California and Nebraska. Principles of Consolidation - The consolidated financial statements include the accounts of The Marcus Corporation and all of its subsidiaries, including a 50% owned joint venture entity in which the Company has a controlling financial interest. The Company has ownership interests greater than 50% in one joint venture that is considered a Variable Interest Entity (VIE) that is also included in the accounts of the Company. The Company is the primary beneficiary of the VIE and the Company’s interest is considered a majority voting interest. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interests in the consolidated balance sheets, and their share of earnings is recorded as net earnings (losses) attributable to noncontrolling interests in the consolidated statements of earnings in accordance with the partnership agreements. In fiscal 2017, the Company purchased the noncontrolling interest of a joint venture from its former partner. Investments in affiliates which are 50% or less owned by the Company for which the Company exercises significant influence but does not have control are accounted for on the equity method. The Company has investments in equity investments without readily determinable fair values, which represents investments in entities where the Company does not have the ability to significantly influence the operations of the entities. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Change in Accounting Policies – The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, Leases , (Topic 842) , on the first day of fiscal 2019. These lease policy updates were applied prospectively in the Company’s financial statements from December 28, 2018 forward. Reported financial information for the historical comparable periods was not revised and continues to be reported under the accounting standards in effect during the historical periods. See Note 8 for further discussion. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , on the first day of fiscal 2018. These revenue recognition policy updates were applied prospectively in the Company’s financial statements from December 29, 2017 forward. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical period. See Note 2 for further discussion. Cash Equivalents - The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Restricted Cash - Restricted cash consists of bank accounts related to capital expenditure reserve funds, sinking funds, operating reserves and replacement reserves and may include amounts held by a qualified intermediary agent to be used for tax-deferred, like-kind exchange transactions. Fair Value Measurements - Certain financial assets and liabilities are recorded at fair value in the financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 - Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At December 26, 2019 and December 27, 2018, respectively, the Company’s $5,825,000 and $5,302,000 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. Level 2 - Assets or liabilities for which fair value is based on valuation models for which pricing inputs were either directly or indirectly observable as of the reporting date. At December 26, 2019 and December 27, 2018, respectively, the $1,194,000 and $205,000 liability related to the Company’s interest rate hedge contracts were valued using Level 2 pricing inputs. Level 3 - Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At December 26, 2019 and December 27, 2018, none of the Company’s recorded assets or liabilities that are measured on a recurring basis at fair market value were valued using Level 3 pricing inputs. Assets and liabilities that are measured on a non-recurring basis are discussed in Note 3 and Note 4. The carrying value of the Company’s financial instruments (including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable) approximates fair value. The fair value of the Company’s $109,000,000 of senior notes, valued using Level 2 pricing inputs, is approximately $110,985,000 at December 26, 2019, determined based upon discounted cash flows using current market interest rates for financial instruments with a similar average remaining life. The carrying amounts of the Company’s remaining long-term debt approximate their fair values, determined using current rates for similar instruments, or Level 2 pricing inputs. Accounts Receivable - The Company evaluates the collectibility of its accounts receivable based on a number of factors. For larger accounts, an allowance for doubtful accounts is recorded based on the applicable parties’ ability and likelihood to pay based on management’s review of the facts. For all other accounts, the Company recognizes an allowance based on length of time the receivable is past due based on historical experience and industry practice. Inventory - Inventories, consisting of food and beverage and concession items, are stated at the lower of cost or market. Cost has been determined using the first-in, first-out method. Inventories of $5,673,000 and $4,138,000 as of December 26, 2019 and December 27, 2018, respectively, were included in other current assets. Property and Equipment - The Company records property and equipment at cost. Major renewals and improvements are capitalized, while maintenance and repairs that do not improve or extend the lives of the respective assets are expensed currently. Included in property and equipment are assets related to finance leases. These assets are depreciated over the shorter of the estimated useful lives or related lease terms. Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the following estimated useful lives or any related lease terms: Years Land improvements 10 - 20 Buildings and improvements 12 - 39 Leasehold improvements 3 - 40 Furniture, fixtures and equipment 3 - 20 Finance lease right-of-use assets 4 - 15 Depreciation expense totaled $72,244,000, $61,470,000 and $51,542,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively. Long-Lived Assets - The Company periodically considers whether indicators of impairment of long-lived assets held for use are present. This includes quantitative and qualitative factors, including evaluating the historical actual operating performance of the long-lived assets and assessing the potential impact of recent events and transactions impacting the long-lived assets. If such indicators are present, the Company determines if the long-lived assets are recoverable by assessing whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. If the long-lived assets are not recoverable, the Company recognizes any impairment losses based on the excess of the carrying amount of the assets over their fair value. For the purpose of determining fair value, defined as the amount at which an asset or group of assets could be bought or sold in a current transaction between willing parties, the Company utilizes currently available market valuations of similar assets in its respective industries, often expressed as a given multiple of operating cash flow. The Company evaluated the value of its property and equipment during fiscal 2019, fiscal 2018 and fiscal 2017 and the value of its Operating lease right-of-use assets during fiscal 2019 and determined that there was no impact on the Company’s results of operations, other than the impairment charge discussed in Note 3. Acquisition - The Company recognizes identifiable assets acquired, liabilities assumed and noncontrolling interests assumed in an acquisition at their fair values at the acquisition date based upon all information available to it, including third-party appraisals. Acquisition-related costs, such as due diligence and legal fees, are expensed as incurred. The excess of the acquisition cost over the fair value of the identifiable net assets is reported as goodwill. Goodwill - The Company reviews goodwill for impairment annually or more frequently if certain indicators arise. The Company performs its annual impairment test on the last day of its fiscal year. The Company believes performing the test at the end of the fiscal year is preferable as the test is predicated on qualitative factors which are developed and finalized near fiscal year-end. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of the reporting unit, the period of time since its last quantitative test, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to the reporting unit. If the Company concludes that it is more likely than not that the fair value of its reporting unit is less than its carrying value, the Company performs a two-step quantitative impairment test by comparing the carrying value of the reporting unit to the estimated fair value. No impairment was identified as of December 26, 2019 or December 27, 2018. The Company has never recorded a goodwill impairment loss. A summary of the Company’s goodwill activity is as follows: December 26, December 27, December 28, 2019 2018 2017 (in thousands) Balance at beginning of period $ 43,170 $ 43,492 $ 43,735 Acquisition 32,205 — — Sale — — (105) Deferred tax adjustment (93) (322) (138) Balance at end of period $ 75,282 $ 43,170 $ 43,492 Trade Name Intangible Asset – The Company acquired a trade name in conjunction with the Movie Tavern acquisition (see Note 4) that was determined to have an indefinite life. The Company will review its trade name intangible asset for impairment at least annually or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. The Company will perform its annual impairment test on the last day of its fiscal year. Under ASC Topic 350, the Company can elect to perform a qualitative or quantitative impairment assessment for its trade name intangible asset. The Company will first assess the qualitative factors to determine whether the existence of events and circumstances indicate that is it more likely than not that the fair value of the indefinite-lived asset is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test. No impairment was identified as of December 26, 2019. Capitalization of Interest - The Company capitalizes interest during construction periods by adding such interest to the cost of constructed assets. Interest of approximately $53,000, $65,000 and $400,000 was capitalized in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. Debt Issuance Costs - The Company records debt issuance costs on long-term debt as a direct deduction from the related debt liability. Debt issuance costs related to the Company’s revolving credit facility are included in other long-term assets. Debt issuance costs are deferred and amortized over the term of the related debt agreements. Amortization of debt issuance costs totaled $285,000, $287,000 and $308,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively, and were included in interest expense on the consolidated statements of earnings. Leases - The Company adopted ASU No. 2016-02, Leases , on the first day of fiscal 2019. See Note 8 for further discussion. Investments – The Company has investments in debt and equity securities. These securities are stated at fair value based on listed market prices, where available, with the change in fair value recorded as investment income or loss within the consolidated statements of earnings. The cost of securities sold is based upon the specific identification method. Revenue Recognition - The Company adopted ASU No. 2014‑09, Revenue from Contracts with Customers , on the first day of fiscal 2018. See Note 2 for further discussion. Advertising and Marketing Costs - The Company expenses all advertising and marketing costs as incurred. Insurance Reserves - The Company uses a combination of insurance and self insurance mechanisms, including participation in captive insurance entities, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, director and officers’ liability insurance, cyber liability, employment practices liability and business interruption. Liabilities associated with the risks that are retained by the company are not discounted and are estimated, in part, by considering historical claims experience, demographic factors and severity factors. Income Taxes - The Company recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets represent items to be used as a tax deduction or credit in the future tax returns for which the Company has already properly recorded the tax benefit in the income statement. The Company regularly assesses the probability that the deferred tax asset balance will be recovered against future taxable income, taking into account such factors as earnings history, carryback and carryforward periods, and tax strategies. When the indications are that recovery is not probable, a valuation allowance is established against the deferred tax asset, increasing income tax expense in the year that conclusion is made. The Company assesses income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. See Note 11 - Income Taxes. Earnings Per Share - Net earnings per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options using the treasury method. Convertible Class B Common Stock is reflected on an if-converted basis. The computation of the diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock, while the diluted net earnings per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of the Class B Common Stock. As such, the undistributed earnings for each year are allocated based on the proportionate share of entitled cash dividends. The computation of diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock and, as such, the undistributed earnings are equal to net earnings for that computation. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 42,017 $ 53,391 $ 64,996 Denominator: Denominator for basic EPS 30,656 28,105 27,789 Effect of dilutive employee stock options 496 608 614 Denominator for diluted EPS 31,152 28,713 28,403 Net earnings per share – Basic: Common Stock $ 1.44 $ 1.96 $ 2.42 Class B Common Stock $ 1.25 $ 1.75 $ 2.17 Net earnings per share- Diluted: Common Stock $ 1.35 $ 1.86 $ 2.29 Class B Common Stock $ 1.24 $ 1.72 $ 2.13 Options to purchase 324,000 shares, 16,000 shares and 250,000 shares of common stock at prices ranging from $38.51 to $41.90, $38.51 to $41.35 and $31.20 to $31.55 per share were outstanding at December 26, 2019, December 27, 2018 and December 28, 2017, respectively, but were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the common shares, and therefore, the effect would be antidilutive. Accumulated Other Comprehensive Loss – Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: December 26, 2019 December 27, 2018 (in thousands) Unrecognized loss on interest rate swap agreements $ (882) (149) Net unrecognized actuarial loss for pension obligation (11,766) (6,609) $ (12,648) $ (6,758) Concentration of Risk - As of December 26, 2019, 6% of the Company’s employees were covered by a collective bargaining agreement, of which 15% were covered by an agreement that will expire within one year. As of December 27, 2018, 7% of the Company’s employees were covered by a collective bargaining agreement, of which 96% were covered by an agreement that will expire within one year. New Accounting Pronouncements – In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for the Company in fiscal 2020 and must be applied prospectively. The Company does not believe the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General , designed to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU No. 2018-14 is effective for the Company in fiscal 2020 and early application is permitted. The Company does not believe the new standard will have a material effect on its consolidated financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The purpose of ASU No. 2018-13 is to improve the disclosures related to fair value measurements in the financial statements. The improvements include the removal, modification and addition of certain disclosure requirements primarily related to Level 3 fair value measurements. ASU No. 2018-13 is effective for the Company in fiscal 2020. The amendments in ASU No. 2018-13 should be applied prospectively. The Company does not expect ASU No. 2018-13 to have a significant impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in ASU No. 2019-12 are designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify generally accepted accounting principles for other areas of Topic 740 by clarifying and amending existing guidance. ASU No. 2019-12 is effective for the Company in fiscal 2021 and early application is permitted. The Company is currently evaluating the effect the new standard will have on its consolidated financial statements. On December 28, 2018, the Company adopted ASU No. 2016-02, Leases (Topic 842) , which is intended to improve financial reporting related to leasing transactions. ASC 842 requires a lessee to recognize on the balance sheet assets and liabilities for rights and obligations created by leased assets with lease terms of more than 12 months. The new guidance also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from the leases. See Note 8 for further discussion. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 26, 2019 | |
Revenue Recognition | |
Revenue Recognition | 2. Revenue Recognition Revenue Recognition Policy Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance of obligations by transferring the promised services to the customer. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. The amount of revenue recognized reflects the consideration entitled to in exchange for those services. The disaggregation of revenues by business segment for fiscal 2019 and fiscal 2018 is as follows (in thousands): Fiscal 2019 Reportable Segment Hotels/ Theatres Resorts Corporate Total Theatre admissions $ 284,141 $ — $ — $ 284,141 Rooms — 105,857 — 105,857 Theatre concessions 231,237 — — 231,237 Food and beverage — 74,665 — 74,665 Other revenues (1) 40,825 46,547 433 87,805 Cost reimbursements 877 36,281 — 37,158 Total revenues $ 557,080 $ 263,350 $ 433 $ 820,863 Fiscal 2018 Reportable Segment Hotels/ Theatres Resorts Corporate Total Theatre admissions $ 246,385 $ — $ — $ 246,385 Rooms — 108,786 — 108,786 Theatre concessions 166,564 — — 166,564 Food and beverage — 72,771 — 72,771 Other revenues (1) 32,563 45,342 424 78,329 Cost reimbursements 1,292 32,993 — 34,285 Total revenues $ 446,804 $ 259,892 $ 424 $ 707,120 (1) Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014‑09. The Company recognizes revenue from its rooms as earned on the close of business each day. Revenue from theatre admissions, theatre concessions and food and beverage sales are recognized at the time of sale. Revenues from advanced ticket and gift card sales are recorded as deferred revenue and are recognized when tickets or gift cards are redeemed. Gift card breakage income is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Gift card breakage income is recorded in other revenues in the consolidated statements of earnings. The adoption of ASU No. 2014‑09 did not have an effect on how revenue is recognized for these arrangements. Other revenues include management fees for theatres and hotels under management agreements. The management fees are recognized as earned based on the terms of the agreements. The management fees include variable consideration that is recognized based on the Company’s right to invoice as the amount invoiced corresponds directly to the value transferred to the customer. Other revenues also include family entertainment center revenues and revenues from Hotels/Resorts outlets such as spa, ski, golf and parking, each of which are recognized at the time of sale. In addition, other revenues include pre-show advertising income in the Company’s theatres. Pre-show advertising revenue includes variable consideration, primarily based on attendance levels, that is allocated to distinct time periods that make up the overall performance obligation. The adoption of ASU No. 2014‑09 did not have an effect on how revenue is recognized for these arrangements. Cost reimbursements primarily consist of payroll and related expenses at managed properties where the Company is the employer and may include certain operational and administrative costs as provided for in the Company’s contracts with owners. These costs are reimbursed back to the Company. As these costs have no added markup, the revenue and related expense have no impact on operating income or net earnings. The adoption of ASU No. 2014‑09 did not have an effect on how revenue is recognized for these arrangements. The timing of the Company’s revenue recognition may differ from the timing of payment by customers. However, the Company typically receives payment within a very short period of time of when the revenue is recognized. The Company records a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision for the related services, deferred revenue is recorded until the performance obligation is satisfied. Revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales tax. The Company had deferred revenue from contracts with customers of $43,200,000, $37,048,000 and $36,007,000 as of December 26, 2019, December 27, 2018 and December 28, 2017, respectively, which includes the one-time cumulative effect adjustment to the balance sheet on the first day of fiscal 2018. The Company had no contract assets as of December 26, 2019 and December 27, 2018. During fiscal 2019, the Company recognized revenue of $22,266,000 that was included in deferred revenues as of December 27, 2018. During fiscal 2018, the Company recognized revenue of $24,840,000 that was included in deferred revenues as of December 29, 2017. The majority of the Company’s deferred revenue relates to non-redeemed gift cards, advanced ticket sales and the Company’s loyalty program. As of December 26, 2019, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced ticket sales was $5,117,000 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next two years. As of December 26, 2019, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $2,929,000 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the gift cards are redeemed, which is expected to occur within the next two years. The majority of the Company’s revenue is recognized in less than one year from the original contract. Adoption of ASU No. 2014‑09 Due to adoption of ASU No. 2014‑09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows: Balance at Balance at December 28, Cumulative December 29, 2017 Adjustment 2017 (in thousands) Refundable income taxes $ 15,335 $ 945 $ 16,280 Other accrued liabilities 53,291 3,296 56,587 Deferred compensation and other 56,662 217 56,879 Retained earnings 403,206 (2,568) 400,638 The one-time cumulative effect adjustment to the balance sheet is due to a change in accounting for the Company’s loyalty programs. The Company offers a customer loyalty program to its theatre customers called Magical Movie Rewards. The program allows members to earn points for each dollar spent and access special offers available only to members. The rewards are redeemable at any Marcus Theatre box office, concession stand or food and beverage venue. The Company also offers a customer loyalty program to its Hotels and Resorts customers which allows members to earn points for each dollar spent in its restaurants. The rewards are redeemable at any of the Company’s hotel outlets including spas, restaurants, and golf. Under ASU No. 2014‑09, the portion of Theatre admission revenues, Theatre concession revenues and Food and beverage revenues attributable to loyalty points earned by customers are deferred as a reduction of these revenues until related reward redemption. Through December 28, 2017, the Company recorded the estimated incremental cost of redeeming loyalty points at the time they were earned in Advertising and marketing expense. The change had the effect of an immaterial reduction of theatre admission revenues and a corresponding immaterial increase in theatre concession revenues with an offsetting increase in other long-term liabilities based upon historical customer reward redemption patterns. In accordance with ASU No. 2014‑09, the Company has concluded that it is the principal (as opposed to agent) in the arrangement with third-party internet ticketing companies in regards to sale of internet tickets to customers, and therefore, recognizes ticket fee revenue based on a gross transaction price. As such, internet ticket fee revenue is deferred and recognized when the related film exhibition takes place on a gross transaction price basis. Through December 28, 2017, the Company recorded internet ticket fee revenues net of third-party commission or service fees. The change had the effect of increasing other revenues and other operating expense but had no impact on net earnings or cash flows from operations. The adoption of ASU No. 2014‑09 had the following effect on our fiscal 2018 consolidated statement of earnings (in thousands): ASU No. 2014‑09 As Reported Impact Adjusted (1) Revenues: Theatre admissions $ 246,385 $ (1,805) $ 248,190 Theatre concessions 166,564 2,526 164,038 Food and beverage 72,771 19 72,752 Other revenues 78,329 4,997 73,332 Total revenues 707,120 5,737 701,383 Costs and expenses: Theatre operations 217,851 669 217,182 Theatre concessions 47,522 634 46,888 Advertising and marketing 23,775 (1,076) 24,851 Other operating expenses 36,534 4,878 31,656 Total costs and expenses 623,931 5,105 618,826 Operating income 83,189 632 82,557 Income taxes 13,127 125 13,002 Net earnings attributable to The Marcus Corporation 53,391 507 52,884 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014‑09. The adoption of ASU No. 2014‑09 had the following effect on our consolidated balance sheet as of December 27, 2018 (in thousands): ASU No. 2014‑09 As Reported Impact Adjusted (1) Refundable income taxes $ 5,983 $ 820 $ 5,163 Total current assets 68,949 820 68,129 Total assets 989,331 820 988,511 Other accrued liabilities 59,645 2,782 56,863 Total current liabilities 149,256 2,782 146,474 Deferred compensation and other 56,908 99 56,809 Retained Earnings 439,178 (2,061) 441,239 Shareholders’ equity attributable to The Marcus Corporation 490,009 (2,061) 492,070 Total equity 490,119 (2,061) 492,180 Total liabilities and shareholders’ equity 989,331 820 988,511 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014‑09. As part of the Company’s adoption of ASU No. 2014‑09, the Company elected to use the following practical expedients: (i) not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company’s transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; (ii) not to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; (iii) to expense costs as incurred for costs to obtain contracts when the amortization period would have been one year or less, which mainly includes internal sales and development compensation; (iv) not to disclose remaining performance obligations when the remaining performance obligations have original expected durations of one year or less; and (v) not to disclose remaining performance obligations when variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms a single performance obligation (which exists in the Company’s management fee contracts and its pre-show advertising contracts). |
Impairment Charge
Impairment Charge | 12 Months Ended |
Dec. 26, 2019 | |
Impairment Charge | |
Impairment Charge | 3. Impairment Charge In fiscal 2019, the Company determined that indicators of impairment were evident at a specific theatre location and that the sum of the estimated undiscounted future cash flows attributable to this asset was less than its carrying amount. As such, the Company evaluated the ongoing value of this asset and determined that the fair value, measured using Level 3 pricing inputs (estimated cash flows including estimated sales proceeds), was less than its carrying value and recorded a $1,874,000 impairment loss. The fair value of the impaired asset was $808,000 as of December 26, 2019. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 26, 2019 | |
Acquisition | |
Acquisition | 4 . Acquisition On February 1, 2019, the Company acquired 22 dine-in theatres with 208 screens located in nine Southern and Eastern states from VSS-Southern Theatres LLC (Movie Tavern) for a total purchase price of $139,310,000, consisting of $30,000,000 in cash, subject to certain adjustments, and 2,450,000 shares of the company’s Common Stock with a value of $109,197,000, based on the Company’s closing share price as of January 31, 2019. The acquisition was treated as a purchase in accordance with ASC No. 805, Business Combinations , which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transaction. The Company obtained assistance from a third party valuation specialist in order to assist in the determination of fair value. The Company provided assumptions to the third party valuation firm based on information available to it at the acquisition date, including both quantitative and qualitative information about the specified assets or liabilities. The Company primarily utilized the third party to accumulate comparative data from multiple sources and assemble a report that summarized the information obtained. The Company then used the information to determine fair value. The third party valuation firm was supervised by Company personnel who are knowledgeable about valuations and fair values. The Company finalized the fair values for both tangible and intangible assets and the liabilities during the fourth quarter of fiscal 2019. The following is a summary of the allocation of the purchase price (in thousands): Other current assets $ 4,855 Property and equipment (1) 95,021 Operating lease right-of-use assets 160,567 Deferred tax asset 753 Other (long-term assets) (2) 9,710 Goodwill (3) 32,205 Taxes other than income taxes (206) Other accrued liabilities (3,322) Operating lease obligations (160,273) Total $ 139,310 (1) Amounts recorded for property and equipment include land, building, leasehold improvements and equipment. (2) Amounts recorded primarily relate to a trade name intangible asset of $9,500,000 which the Company has determined to have an indefinite life. (3) Amounts recorded for goodwill are expected to be deductible for tax purposes. The purchase price paid by the Company in the acquisition resulted in recognition of goodwill because it exceeded the estimated fair value of the assets acquired and liabilities assumed. The Company paid a price in excess of estimated fair value of the assets acquired and liabilities assumed because the acquisition of Movie Tavern created an opportunity for the Company to expand into new growth markets and leverage its proven success in the theatre industry. The Company also expects to realize synergy and cost savings related to the acquisition because of purchasing and procurement economies of scale. The above fair values of assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future estimated revenues and cash flows, and other assumptions that are judgmental. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent Level 3 measurements within the fair value measurement hierarchy. A summary of the significant valuation techniques and inputs used is as follows: Property and equipment - When estimating the fair value of property and equipment, the cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation and less any economic obsolescence adjustments. Operating lease right-of-use assets and lease liabilities – When estimating the fair value of these lease-related balances, the Company first determined such balances under the requirement of ASC 842 (see Note 8 for further detail on accounting for leases). The operating lease right-of-use assets were then assessed for favorable and unfavorable lease terms, which were determined by comparing the rent expense-to-revenue ratio and operating cash flow margin of each lease to market comparable data. To the extent it was determined that such lease was at favorable or unfavorable terms, the adjustment to record the operating lease right-of-use assets to fair market value was determined through a discounted cash flow model and the significant assumptions include a 14% discount rate. Trade name intangible asset – When estimating the fair value of the trade name intangible asset, the Company used an income approach, specifically the relief from royalty method. The significant assumptions used include the estimated annual revenue, the royalty rate (1%), and a discount rate (17%). The acquired theatres contributed approximately $125,839,000 to revenue in fiscal 2019. Excluding the impact of acquisition costs, the acquired theatres did not have a material impact on the Company’s fiscal 2019 net earnings. Acquisition costs incurred as a result of the Movie Tavern acquisition were approximately $1,283,000 and $1,507,000 during fiscal 2019 and fiscal 2018, respectively, and were expensed as incurred and included in administrative expense in the consolidated statements of earnings. Assuming the Movie Tavern acquisition occurred at the beginning of fiscal 2018, unaudited pro forma revenues for the Company during fiscal 2018 were $845,662,000. The Movie Tavern theatres would not have had a material impact on the Company’s fiscal 2018 net earnings. Unaudited pro forma revenues for the Company during fiscal 2019 would have been $832,349,000. The additional five weeks of Movie Tavern theatres operations would not have had a material impact on the Company’s fiscal 2019 net earnings. |
Asset Sale
Asset Sale | 12 Months Ended |
Dec. 26, 2019 | |
Asset Sale | |
Asset Sale | 5. Asset Sale On October 20, 2017, the Company sold its 11% minority interest in The Westin ® Atlanta Perimeter North in Atlanta, Georgia, and recorded a gain of $4,875,000 during the fiscal 2017 fourth quarter, which is included in Gain (loss) on disposition of property, equipment and other assets in the consolidated statement of earnings. |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Dec. 26, 2019 | |
Additional Balance Sheet Information | |
Additional Balance Sheet Information | 6. Additional Balance Sheet Information The composition of accounts receivable is as follows: December 26, 2019 December 27, 2018 (in thousands) Trade receivables, net of allowances of $762 and $361, respectively $ 9,327 $ 8,538 Other receivables 20,138 17,146 $ 29,465 $ 25,684 The composition of property and equipment, which is stated at cost, is as follows: December 26, 2019 December 27, 2018 (in thousands) Land and improvements $ 152,434 $ 150,122 Buildings and improvements 761,511 745,886 Leasehold improvements 164,083 98,885 Furniture, fixtures and equipment 377,404 314,875 Finance lease right-of-use assets 74,357 72,631 Construction in progress 4,043 12,513 1,533,832 1,394,912 Less accumulated depreciation and amortization 610,578 554,869 $ 923,254 $ 840,043 The composition of other assets is as follows: December 26, 2019 December 27, 2018 (in thousands) Split dollar life insurance policies $ 11,411 $ 11,411 Intangible assets 10,057 890 Favorable lease right — 8,818 Other assets 12,468 11,981 $ 33,936 $ 33,100 Included in intangible assets as of December 26, 2019 is a trade name valued at $9,500,000 that has an indefinite life. As of December 28, 2018, in conjunction with the adoption of Topic 842, the Company’s favorable lease right is included in Operating lease right-of-use assets in the consolidated balance sheet. (See Note 8 for further detail.) |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 26, 2019 | |
Long-Term Debt | |
Long-Term Debt | 7. Long-Term Debt Long-term debt is summarized as follows: December 26, 2019 December 27, 2018 (in thousands, except payment data) Mortgage notes $ 24,571 $ 39,852 Senior notes 109,000 118,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest at 5.75% 2,093 2,432 Revolving credit agreement 81,000 79,000 Debt issuance costs (322) (464) 216,342 238,820 Less current maturities, net of issuance costs 9,910 9,957 $ 206,432 $ 228,863 The mortgage notes, both fixed rate and adjustable, bear interest from 3.00% to 5.03%, have a weighted-average rate of 4.27% at December 26, 2019 and 4.66% at December 27, 2018, and mature in fiscal years 2025 through 2043. The mortgage notes are secured by the related land, buildings and equipment. The $109,000,000 of senior notes maturing in 2020 through 2027 require annual principal payments in varying installments and bear interest payable semi-annually at fixed rates ranging from 4.02% to 6.55%, with a weighted-average fixed rate of 4.37% at December 26, 2019 and 4.53% at December 27, 2018. At December 26, 2019, the Company had a revolving credit facility totaling $225,000,000 in place under an existing credit agreement that matures in June 2021. There were borrowings of $81,000,000 outstanding on the revolving credit facility at December 26, 2019, bearing interest at LIBOR plus a margin which adjusts based on the Company’s borrowing levels, effectively 2.70% at December 26, 2019 and 3.46% at December 27, 2018. The revolving credit facility requires an annual facility fee of 0.15% to 0.25% on the total commitment, based on the Company's borrowing levels. Availability under the line at December 26, 2019 totaled $139,000,000. On January 9, 2020, the Company replaced its then-existing credit agreement with a new five-year $225,000,000 credit facility that expires in January 2025. The terms of the new credit agreement did not change materially. The Company’s loan agreements include, among other covenants, maintenance of certain financial ratios, including a debt-to-capitalization ratio and a fixed charge coverage ratio. The Company is in compliance with all financial debt covenants at December 26, 2019. Scheduled annual principal payments on long-term debt, net of amortization of debt issuance costs, for the years subsequent to December 26, 2019, are: Fiscal Year (in thousands) 2020 $ 9,910 2021 10,963 2022 11,013 2023 11,066 2024 11,119 Thereafter 162,271 $ 216,342 Interest paid on long-term debt, net of amounts capitalized, for fiscal 2019, fiscal 2018 and fiscal 2017 totaled $10,281,000, $11,434,000 and $10,338,000, respectively. The Company utilizes derivatives principally to manage market risks and reduce its exposure resulting from fluctuations in interest rates. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The Company entered into two interest rate swap agreements on March 1, 2018 covering $50,000,000 of floating rate debt. The first agreement has a notional amount of $25,000,000, expires March 1, 2021, and requires the Company to pay interest at a defined rate of 2.559% while receiving interest at a defined variable rate of one-month LIBOR (1.750% at December 26, 2019). The second agreement has a notional amount of $25,000,000, expires March 1, 2023, and requires the Company to pay interest at a defined rate of 2.687% while receiving interest at a defined variable rate of one-month LIBOR (1.750% at December 26, 2019). The Company recognizes derivatives as either assets or liabilities on the consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. Derivatives that do not qualify for hedge accounting must be adjusted to fair value through earnings. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company’s interest rate swap agreements are considered effective and qualify as cash flow hedges. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. As of December 26, 2019, the interest rate swaps were considered highly effective. The fair value of the interest rate swaps on December 26, 2019 and December 27, 2018, respectively, was a liability of $1,194,000 and $205,000 and was included in deferred compensation and other in the consolidated balance sheets. The Company does not expect the interest rate swaps to have a material effect on earnings within the next 12 months. The Company had an interest rate swap that expired in January 2018. The swap agreement covered $25,000,000 of floating rate debt that required the Company to pay interest at a defined fixed rate of 0.96% while receiving interest at a defined variable rate of one-month LIBOR. The Company’s interest rate swap agreement was considered effective and qualified as a cash flow hedge from inception through June 16, 2016, at which time the derivative was undesignated and the balance in accumulated other comprehensive loss was reclassified into interest expense. As of June 16, 2016, the swap was considered ineffective for accounting purposes and the change in fair value was recorded as an increase or decrease in interest expense. As such, the $13,000 decrease in fair value of the swap during fiscal 2018 was recorded to interest expense. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2019 | |
Leases | |
Leases | 8. Leases The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to accounting guidance ASU No. 2016-02, Leases (Topic 842) . The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. The Company leases real estate and equipment with lease terms of one year to 45 years, some of which include options to extend and/or terminate the lease. The exercise of lease renewal options is done at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term and related right-of-use asset and lease liability. The depreciable life of the asset is limited to the expected term. The Company’s lease agreements do not contain any residual value guarantees or any restrictions or covenants. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and labilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in the lease in determining the present value of lease payments. When the lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, including the fixed rate the Company could borrow for a similar amount, over a similar lease term with similar collateral. The Company recognizes right-of-use assets for all assets subject to operating leases in an amount equal to the operating lease liabilities, adjusted for the balances of long-term prepaid rent, favorable lease intangible assets, deferred lease expense, unfavorable lease liabilities and deferred lease incentive liabilities. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The majority of the Company’s lease agreements include fixed rental payments. Variable lease payments that do not depend on an index or rate, including those that depend on the Company’s performance or use of the underlying asset, are expensed as incurred. The Company adopted ASC 842 on the first day of fiscal 2019 using the modified retrospective approach. Under this method, the Company was allowed to initially apply the new lease standard at the adoption date and recognize the assets and liabilities in the period of adoption. As such, upon adoption, no adjustments were made to prior period financial information or disclosures and the new lease standard did not result in a cumulative effect adjustment to retained earnings. Finance lease accounting remained substantially unchanged. The adoption of ASC 842 had the following effect on the Company’s financial statements (all relating to operating lease right-of-use assets and obligations): Balance at Balance at December 27, ASC 842 December 28, 2018 Adjustments 2018 (in thousands) Assets Other current assets $ 15,355 $ (690) $ 14,665 Operating lease right-of-use assets — 76,178 76,178 Other assets (long term) 33,100 (8,868) 24,232 Liabilities Other accrued liabilities 59,645 (4,396) 55,249 Current portion of operating lease obligations — 5,909 5,909 Operating lease obligations — 75,608 75,608 Deferred compensation and other 56,908 (10,501) 46,407 As part of the Company’s adoption of ASC 842, the Company elected the following practical expedients: i) to forego reassessment of its prior conclusion related to lease identification, lease classification and initial direct costs, ii) to not separate lease and non-lease components for all its leases, and iii) to make a policy election not to apply the lease recognition requirements for short-term leases. As a result, the Company does not recognize right-of use assets or lease liabilities for short-term leases that qualify for the policy election (those with an initial term of 12 months or less which do not include a purchase or renewal option which is reasonably certain to be exercised), but will recognize these lease payments as lease costs on a straight-line basis over the lease term. Total lease cost consists of the following: Lease Cost Classification Fiscal 2019 (in thousands) Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 3,507 Interest on lease liabilities Interest expense 1,247 $ 4,754 Operating lease costs: Operating lease costs Rent expense $ 24,302 Variable lease cost Rent expense 1,560 Short-term lease cost Rent expense 237 $ 26,099 Additional information related to leases is as follows: Other Information Fiscal 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 2,544 Operating cash flows from finance leases 1,247 Operating cash flows from operating leases 25,226 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 1,726 Operating lease liabilities, including from acquisitions 180,103 December 26, 2019 Finance leases: (in thousands) Property and equipment – gross $ 74,357 Accumulated depreciation and amortization (52,869) Property and equipment - net $ 21,488 In fiscal 2017, the Company had the following non-cash transactions related to leases: 1) obtained $6,173,000 of new capital leases, and 2) exercised $3,675,000 in capital lease extensions. Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate December 26, 2019 Weighted-average remaining lease terms: Finance leases 10 years Operating leases 15 years Weighted-average discount rates: Finance leases 4.67 % Operating leases 4.56 % Maturities of lease liabilities as of December 26, 2019 are as follows (in thousands): Fiscal Year Operating Leases Finance Leases 2020 $ 24,369 $ 3,606 2021 25,730 2,997 2022 26,313 2,950 2023 24,808 2,840 2024 24,534 2,859 Thereafter 214,060 14,093 Total lease payments 339,814 29,345 Less: amount representing interest (94,368) (5,972) Total lease liabilities $ 245,446 $ 23,373 Aggregate minimum lease commitments as of December 27, 2018 under Accounting Standard Codification Topic 840 are as follows (in thousands): Fiscal Year Operating Leases Capital Leases 2019 $ 11,317 $ 3,073 2020 10,169 2,978 2021 9,670 2,679 2022 9,910 2,718 2023 9,038 2,718 2024 and thereafter 80,523 16,940 Total minimum lease payments $ 130,627 31,106 Less: amount representing interest (6,978) Total present value of minimum capital lease payments $ 24,128 As of December 26, 2019, the Company had a build-to-suit lease arrangement in which the Company is responsible for the construction of a new leased theatre and for paying construction costs during development. Construction costs will be reimbursed by the landlord up to an agreed upon amount. During construction, the Company is deemed to not have control of the assets or the leased premises and will record the development expenditures in other assets on the consolidated balance sheet. The lease commences when the Company has access to the right-of-use asset, which is expected to be upon project completion during fiscal 2020. |
Shareholders' Equity and Stock-
Shareholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 26, 2019 | |
Shareholders' Equity and Stock-Based Compensation | |
Stock Holders Equity And Share Based Compensation | 9. Shareholders’ Equity and Stock-Based Compensation Shareholders may convert their shares of Class B Common Stock into shares of Common Stock at any time. Class B Common Stock shareholders are substantially restricted in their ability to transfer their Class B Common Stock. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of the Class B Common Stock. Holders of Class B Common Stock are entitled to ten votes per share while holders of Common Stock are entitled to one vote per share on any matters brought before the shareholders of the Company. Liquidation rights are the same for both classes of stock. Through December 26, 2019, the Company’s Board of Directors has approved the repurchase of up to 11,687,500 shares of Common Stock to be held in treasury. The Company intends to reissue these shares upon the exercise of stock options and for savings and profit-sharing plan contributions. The Company purchased 30,139, 82,722 and 28,898 shares pursuant to these authorizations during fiscal 2019, fiscal 2018 and fiscal 2017, respectively. At December 26, 2019, there were 2,756,561 shares available for repurchase under these authorizations. The Company’s Board of Directors has authorized the issuance of up to 750,000 shares of Common Stock for The Marcus Corporation Dividend Reinvestment and Associate Stock Purchase Plan. At December 26, 2019, there were 430,582 shares available under this authorization. Shareholders have approved the issuance of up to 4,937,500 shares of Common Stock under various equity incentive plans. Stock options granted under the plans to employees generally become exercisable either 40% after two years, 60% after three years, 80% after four years and 100% after five years of the date of grant, or 50% after two years, 75% after three years and 100% after four years of the date of grant, depending on the date of grant. The options generally expire ten years from the date of grant as long as the optionee is still employed with the Company. Awarded shares of non-vested stock cumulatively vest either 25% after three years of the grant date, 50% after five years of the grant date, 75% after ten years of the grant date and 100% upon retirement, or 50% after three years of the grant date and 100% after five years of the grant date, or 50% after two years of the grant date and 100% after four years of the grant date, depending on the date of grant. The non-vested stock may not be sold, transferred, pledged or assigned, except as provided by the vesting schedule included in the Company’s equity incentive plan. During the period of restriction, the holder of the non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock. Non-vested stock awards and shares issued upon option exercises are issued from previously acquired treasury shares. At December 26, 2019, there were 588,834 shares available for grants of additional stock options, non-vested stock and other types of equity awards under the current plan. Stock-based compensation, including stock options and non-vested stock awards, is expensed over the vesting period of the awards based on the grant date fair value. The Company estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions used for awards granted during fiscal 2019, fiscal 2018 and fiscal 2017: Year Ended Year Ended Year Ended December 26, 2019 December 27, 2018 December 28, 2017 Risk-free interest rate 2.50 – 2.60% 2.70 – 2.80% 2.08 – 2.20% Dividend yield 1.70% 2.10% 2.10% Volatility 27 – 32% 28 – 33% 34 – 43% Expected life 6 – 8 years 6 – 8 years 7 – 8 years Total pre-tax stock-based compensation expense was $3,523,000, $2,691,000 and $2,411,000 in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The recognized tax benefit on stock-based compensation was $1,127,000, $2,617,000 and $1,227,000 in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The increase in the recognized tax benefit during fiscal 2018 was primarily due to an increase in stock options exercised where the market price was significantly greater than the grant date fair value of the stock options. A summary of the Company’s stock option activity and related information follows: December 26, 2019 December 27, 2018 December 28, 2017 Weighted- Weighted- Weighted- Average Average Average Exercise Exercise Exercise Options Price Options Price Options Price (options in thousands) Outstanding at beginning of period 1,450 $ 21.25 1,629 $ 18.08 1,563 $ 15.94 Granted 329 41.67 336 27.59 273 31.08 Exercised (97) 15.60 (478) 14.74 (133) 17.04 Forfeited (41) 30.58 (37) 23.35 (74) 22.37 Outstanding at end of period 1,641 25.46 1,450 21.25 1,629 18.08 Exercisable at end of period 802 $ 18.22 699 $ 15.87 988 $ 14.69 Weighted-average fair value of options granted during the period $ 11.79 $ 7.87 $ 10.54 Exercise prices for options outstanding as of December 26, 2019 ranged from $10.00 to $41.90. The weighted-average remaining contractual life of those options is 6.4 years. The weighted-average remaining contractual life of options currently exercisable is 4.5 years. There were 1,587,000 options outstanding, vested and expected to vest as of December 26, 2019, with a weighted-average exercise price of $25.13 and an intrinsic value of $14,567,000. Additional information related to these options segregated by exercise price range is as follows: Exercise Price Range $10.00 to $18.35 to $27.01 to $18.34 $27.00 $41.90 (options in thousands) Options outstanding 464 610 567 Weighted-average exercise price of options outstanding $ 14.03 $ 23.22 $ 37.22 Weighted-average remaining contractual life of options outstanding 3.1 7.0 8.4 Options exercisable 464 218 120 Weighted-average exercise price of options exercisable $ 14.03 $ 19.80 $ 31.54 The intrinsic value of options outstanding at December 26, 2019 was $14,693,000 and the intrinsic value of options exercisable at December 26, 2019 was $11,579,000. The intrinsic value of options exercised was $2,135,000, $10,373,000 and $1,770,000 during fiscal 2019, fiscal 2018 and fiscal 2017, respectively. As of December 26, 2019, total remaining unearned compensation cost related to stock options was $5,314,000, which will be amortized to expense over the remaining weighted-average life of 2.7 years. A summary of the Company’s non-vested stock activity and related information follows: December 26, 2019 December 27, 2018 December 28, 2017 Weighted- Weighted- Weighted- Average Average Average Fair Fair Fair Shares Value Shares Value Shares Value (options in thousands) Outstanding at beginning of period 158 $ 18.98 137 $ 21.94 143 $ 19.30 Granted 39 38.24 52 29.02 37 29.12 Vested (23) 18.60 (31) 16.41 (36) 18.78 Forfeited — — — — (7) 22.86 Outstanding at end of period 174 $ 29.16 158 $ 18.98 137 $ 21.94 The Company expenses awards of non-vested stock based on the fair value of the Company’s common stock at the date of grant. As of December 26, 2019, total remaining unearned compensation related to non-vested stock was $3,015,000, which will be amortized over the weighted-average remaining service period of 2.8 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans The Company has a qualified profit-sharing savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. Prior to fiscal 2017, the plan provided for a contribution of a minimum of 1% of defined compensation for all plan participants and matching of 25% of employee contributions up to 6% of defined compensation. In addition, the Company made additional discretionary contributions. During fiscal 2019 and fiscal 2018, the first 2% of the matching contribution was made with the Company’s common stock. During fiscal 2017, the 1% and discretionary contributions were made with the Company’s common stock. The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans. The Company’s unfunded, nonqualified retirement plan includes two components. The first component is a defined-benefit plan that applies to certain participants. The second component applies to all other participants and provides an account-based supplemental retirement benefit. Pension and profit-sharing expense for all plans was $5,065,000, $5,117,000 and $4,415,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the consolidated balance sheets and recognizes changes in these amounts in the year in which changes occur through comprehensive income. The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 26, 2019 and December 27, 2018 measurement dates is as follows: December 26, December 27, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 35,640 $ 37,639 Service cost 833 926 Interest cost 1,485 1,364 Actuarial (gain) loss 7,317 (2,633) Benefits paid (1,451) (1,656) Benefit obligation at end of year $ 43,824 $ 35,640 Amounts recognized in the statement of financial position consist of: Current accrued benefit liability (included in Other accrued liabilities) $ (1,400) $ (1,378) Noncurrent accrued benefit liability (included in Deferred compensation and other) (42,424) (34,262) Total $ (43,824) $ (35,640) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 16,373 $ 9,556 Prior service credit (451) (515) Total $ 15,922 $ 9,041 Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Net periodic pension cost: Service cost $ 833 $ 926 $ 765 Interest cost 1,485 1,364 1,356 Net amortization of prior service cost and actuarial loss 436 621 356 $ 2,754 $ 2,911 $ 2,477 The $11,766,000 loss, net of tax, included in accumulated other comprehensive loss at December 26, 2019, consists of the $12,100,000 net actuarial loss, net of tax, and the $334,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The $6,609,000 loss, net of tax, included in accumulated other comprehensive loss at December 27, 2018, consists of the $6,985,000 net actuarial loss, net of tax, and the $376,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The accumulated benefit obligation was $37,474,000 and $30,576,000 as of December 26, 2019 and December 27, 2018, respectively. The pre-tax change in the benefit obligation recognized in other comprehensive loss was as follows: Year Ended December 26, 2019 December 27, 2018 (in thousands) Net actuarial loss (gain) $ 7,317 (2,633) Amortization of the net actuarial loss (499) (685) Amortization of the prior year service credit 63 64 Total $ 6,881 (3,254) The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2020 is $990,000, of which $1,054,000 relates to the actuarial loss and $64,000 relates to the prior service credit. The weighted-average assumptions used to determine the benefit obligations as of the measurement dates were as follows: December 26, 2019 December 27, 2018 Discount rate 3.10 % 4.15 % Rate of compensation increase 4.00 % 4.00 % The weighted-average assumptions used to determine net periodic benefit cost were as follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 Discount rate 4.15 % 3.60 % 4.15 % Rate of compensation increase 4.00 % 4.00 % 4.00 % Benefit payments expected to be paid subsequent to December 26, 2019, are: Fiscal Year (in thousands) 2020 $ 1,400 2021 1,709 2022 1,538 2023 1,532 2024 1,791 Years 2025 – 2029 12,402 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2019 | |
Income Taxes | |
Income Taxes | 11 . Income Taxes The components of the net deferred tax liability are as follows: December 26, 2019 December 27, 2018 (in thousands) Accrued employee benefits $ 15,145 $ 13,381 Depreciation and amortization (69,100) (59,296) Operating lease assets (62,339) — Operating lease liabilities 62,750 — Other 5,282 3,938 Net deferred tax liability $ (48,262) $ (41,977) Income tax expense consists of the following: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Current: Federal $ 1,187 $ 7,022 $ 8,707 State 2,041 3,181 1,558 Deferred: Federal 9,228 2,815 (7,155) State (136) 109 515 $ 12,320 $ 13,127 $ 3,625 A tax benefit of $1,947,000 is included in the fiscal 2018 current federal income tax amount and a tax benefit of $21,240,000 is included in the fiscal 2017 deferred federal income tax amount, both of which relate to the Tax Cuts and Jobs Act of 2017. The Company’s effective income tax rate, adjusted for earnings from noncontrolling interests, was 22.7%, 19.7% and 5.3% for fiscal 2019, fiscal 2018 and fiscal 2017, respectively. During fiscal 2018, the Company recorded current tax benefits of $1,947,000 related to reductions in deferred tax liabilities related to tax accounting method changes that the Company made subsequent to the Tax Cuts and Jobs Act of 2017. During fiscal 2017, the Company recorded a deferred tax benefit of $21,240,000 related to the reduction of its net deferred tax liability resulting from the reduction in the corporate tax rate enacted in December 2017 under the Tax Cuts and Jobs Act of 2017. Excluding these favorable impacts, the Company’s effective income tax rates for fiscal 2018 and fiscal 2017 were 22.7% and 36.2%, respectively. The Company also recorded significant current tax benefits in fiscal 2018 related to excess tax benefits on share-based compensation. The Company has not included the income tax expense or benefit related to the net earnings or loss attributable to noncontrolling interests in its income tax expense as the entities are considered pass-through entities and, as such, the income tax expense or benefit is attributable to its owners. A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % Tax benefit from Tax Cuts and Jobs Act of 2017 — (2.9) (30.9) State income taxes, net of federal income tax benefit 5.5 6.1 4.8 Tax credits, net of federal income tax benefit (2.7) (1.1) (0.8) Other (1.1) (3.4) (2.8) 22.7 % 19.7 % 5.3 % Net income taxes paid (refunded) in fiscal 2019, fiscal 2018 and fiscal 2017 were $3,062,000, $(218,000) and $23,691,000, respectively. During fiscal 2017, the Company was able to make a reasonable estimate of the impact of the Tax Cuts and Jobs Act of 2017, including the reduction in the corporate tax rate and the provisions related to executive compensation and 100% bonus depreciation on qualifying property. Following the guidance of the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, any adjustments to the Company’s estimates within a one-year measurement period were reported as a component of income tax expense in fiscal 2018. The Company did not make any adjustments to the estimates recorded in fiscal 2017. A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Balance at beginning of year $ — $ 102 $ 414 Increases due to: Tax positions taken in prior years — — — Tax positions taken in current year — — — Decreases due to: Tax positions taken in prior years — — — Settlements with taxing authorities — (102) — Lapse of applicable statute of limitations — — (312) Balance at end of year $ — $ — $ 102 During fiscal 2018, the Company settled a dispute with a state taxing authority and no longer carries an unrecognized tax benefit as of December 27, 2018. The Company’s total unrecognized tax benefit that, if recognized, would affect the Company’s effective tax rate was $67,000 as of December 28, 2017. The Company had no accrued interest or penalties at December 26, 2019 or December 27, 2018. The Company classifies interest and penalties relating to income taxes as income tax expense. For the year ended December 26, 2019, $1,000 of interest income was recognized in the statement of earnings, compared to $68,000 of interest income for the year ended December 27, 2018, and $50,000 of interest expense for the year ended December 28, 2017. During fiscal 2018, the Company settled, with no change, an examination by the Internal Revenue Service of its income tax return for the 31 weeks ended December 31, 2015. The Company’s federal income tax returns are no longer subject to examination prior to fiscal 2016. With certain exceptions, the Company’s state income tax returns are no longer subject to examination prior to fiscal 2016. At this time, the Company does not expect the results from any income tax audit or appeal to have a significant impact on the Company’s financial statements. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. |
Commitments and License Rights
Commitments and License Rights | 12 Months Ended |
Dec. 26, 2019 | |
Commitments and License Rights | |
Commitments and License Rights | 12. Commitments and License Rights Commitments - The Company has commitments for the completion of construction at various properties totaling approximately $2,243,000 at December 26, 2019. License Rights – As of December 26, 2019, the Company had license rights to operate three hotels using the Hilton trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales. |
Joint Venture Transactions
Joint Venture Transactions | 12 Months Ended |
Dec. 26, 2019 | |
Joint Venture Transactions | |
Joint Venture Transactions | 13. Joint Venture Transactions At December 26, 2019 and December 27, 2018, the Company held investments with aggregate carrying values of $3,593,000 and $4,069,000, respectively, in several joint ventures, one of which is accounted for under the equity method, and two of which are investments in equity investments without readily determinable fair values. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 26, 2019 | |
Business Segment Information | |
Business Segment Information | 14. Business Segment Information The Company evaluates performance and allocates resources based on the operating income (loss) of each segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Following is a summary of business segment information for fiscal 2019, fiscal 2018 and fiscal 2017: Hotels/ Corporate Theatres Resorts Items Total (in thousands) Fiscal 2019 Revenues $ 557,080 $ 263,350 $ 433 $ 820,863 Operating income (loss) 76,903 10,050 (18,762) 68,191 Depreciation and amortization 51,202 20,430 645 72,277 Assets 953,299 337,206 68,681 1,359,186 Capital expenditures and acquisitions 61,604 31,783 780 94,167 Fiscal 2018 Revenues $ 446,804 $ 259,892 $ 424 $ 707,120 Operating income (loss) 88,790 12,480 (18,081) 83,189 Depreciation and amortization 38,760 22,229 353 61,342 Assets 624,512 306,162 58,657 989,331 Capital expenditures and acquisitions 43,568 14,931 161 58,660 Fiscal 2017 Revenues $ 403,431 $ 249,564 $ 557 $ 653,552 Operating income (loss) 80,447 12,895 (16,035) 77,307 Depreciation and amortization 33,448 17,912 359 51,719 Assets 637,723 313,942 66,132 1,017,797 Capital expenditures and acquisitions 93,676 20,604 524 114,804 Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues. Corporate assets primarily include cash and cash equivalents, furniture, fixtures and equipment, investments and land held for development. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 26, 2019 | |
Unaudited Quarterly Financial Information | |
Unaudited Quarterly Financial Information | 15. Unaudited Quarterly Financial Information (in thousands, except per share data) 13 Weeks Ended March 28, June 27, September 26, December 26, Fiscal 2019 2019 2019 2019 2019 Revenues $ 170,039 $ 232,500 $ 211,462 $ 206,862 Operating income 4,950 27,475 22,387 13,379 Net earnings attributable to The Marcus Corporation 1,860 18,066 14,289 7,802 Net earnings per common share – diluted $ 0.06 $ 0.58 $ 0.46 $ 0.25 13 Weeks Ended March 29, June 28, September 27, December 27, Fiscal 2018 2018 2018 2018 2018 Revenues $ 168,191 $ 193,298 $ 170,599 $ 175,032 Operating income 17,016 29,107 22,413 14,653 Net earnings attributable to The Marcus Corporation 9,821 18,619 16,231 8,720 Net earnings per common share – diluted $ 0.35 $ 0.65 $ 0.56 $ 0.30 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Description of Business | Description of Business - The Marcus Corporation and its subsidiaries (the “Company”) operate principally in two business segments: Theatres: Operates multiscreen motion picture theatres in Wisconsin, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Arkansas, Colorado, Georgia, Kentucky, Louisiana, New York, Pennsylvania, Texas and Virginia, a family entertainment center in Wisconsin and a retail center in Missouri. Hotels and Resorts: Owns and operates full service hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska and manages full service hotels, resorts and other properties in Wisconsin, Illinois, Minnesota, Texas, Nevada, California and Nebraska. |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the accounts of The Marcus Corporation and all of its subsidiaries, including a 50% owned joint venture entity in which the Company has a controlling financial interest. The Company has ownership interests greater than 50% in one joint venture that is considered a Variable Interest Entity (VIE) that is also included in the accounts of the Company. The Company is the primary beneficiary of the VIE and the Company’s interest is considered a majority voting interest. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interests in the consolidated balance sheets, and their share of earnings is recorded as net earnings (losses) attributable to noncontrolling interests in the consolidated statements of earnings in accordance with the partnership agreements. In fiscal 2017, the Company purchased the noncontrolling interest of a joint venture from its former partner. Investments in affiliates which are 50% or less owned by the Company for which the Company exercises significant influence but does not have control are accounted for on the equity method. The Company has investments in equity investments without readily determinable fair values, which represents investments in entities where the Company does not have the ability to significantly influence the operations of the entities. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Change in Accounting Policy | Change in Accounting Policies – The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, Leases , (Topic 842) , on the first day of fiscal 2019. These lease policy updates were applied prospectively in the Company’s financial statements from December 28, 2018 forward. Reported financial information for the historical comparable periods was not revised and continues to be reported under the accounting standards in effect during the historical periods. See Note 8 for further discussion. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , on the first day of fiscal 2018. These revenue recognition policy updates were applied prospectively in the Company’s financial statements from December 29, 2017 forward. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical period. See Note 2 for further discussion. |
Cash Equivalents | Cash Equivalents - The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. |
Restricted Cash | Restricted Cash - Restricted cash consists of bank accounts related to capital expenditure reserve funds, sinking funds, operating reserves and replacement reserves and may include amounts held by a qualified intermediary agent to be used for tax-deferred, like-kind exchange transactions. |
Fair Value Measurements | Fair Value Measurements - Certain financial assets and liabilities are recorded at fair value in the financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 - Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At December 26, 2019 and December 27, 2018, respectively, the Company’s $5,825,000 and $5,302,000 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. Level 2 - Assets or liabilities for which fair value is based on valuation models for which pricing inputs were either directly or indirectly observable as of the reporting date. At December 26, 2019 and December 27, 2018, respectively, the $1,194,000 and $205,000 liability related to the Company’s interest rate hedge contracts were valued using Level 2 pricing inputs. Level 3 - Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At December 26, 2019 and December 27, 2018, none of the Company’s recorded assets or liabilities that are measured on a recurring basis at fair market value were valued using Level 3 pricing inputs. Assets and liabilities that are measured on a non-recurring basis are discussed in Note 3 and Note 4. The carrying value of the Company’s financial instruments (including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable) approximates fair value. The fair value of the Company’s $109,000,000 of senior notes, valued using Level 2 pricing inputs, is approximately $110,985,000 at December 26, 2019, determined based upon discounted cash flows using current market interest rates for financial instruments with a similar average remaining life. The carrying amounts of the Company’s remaining long-term debt approximate their fair values, determined using current rates for similar instruments, or Level 2 pricing inputs. |
Accounts and Notes Receivable | Accounts Receivable - The Company evaluates the collectibility of its accounts receivable based on a number of factors. For larger accounts, an allowance for doubtful accounts is recorded based on the applicable parties’ ability and likelihood to pay based on management’s review of the facts. For all other accounts, the Company recognizes an allowance based on length of time the receivable is past due based on historical experience and industry practice. |
Inventory | Inventory - Inventories, consisting of food and beverage and concession items, are stated at the lower of cost or market. Cost has been determined using the first-in, first-out method. Inventories of $5,673,000 and $4,138,000 as of December 26, 2019 and December 27, 2018, respectively, were included in other current assets. |
Property and Equipment | Property and Equipment - The Company records property and equipment at cost. Major renewals and improvements are capitalized, while maintenance and repairs that do not improve or extend the lives of the respective assets are expensed currently. Included in property and equipment are assets related to finance leases. These assets are depreciated over the shorter of the estimated useful lives or related lease terms. Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the following estimated useful lives or any related lease terms: Years Land improvements 10 - 20 Buildings and improvements 12 - 39 Leasehold improvements 3 - 40 Furniture, fixtures and equipment 3 - 20 Finance lease right-of-use assets 4 - 15 Depreciation expense totaled $72,244,000, $61,470,000 and $51,542,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively. |
Long-Lived Assets | Long-Lived Assets - The Company periodically considers whether indicators of impairment of long-lived assets held for use are present. This includes quantitative and qualitative factors, including evaluating the historical actual operating performance of the long-lived assets and assessing the potential impact of recent events and transactions impacting the long-lived assets. If such indicators are present, the Company determines if the long-lived assets are recoverable by assessing whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. If the long-lived assets are not recoverable, the Company recognizes any impairment losses based on the excess of the carrying amount of the assets over their fair value. For the purpose of determining fair value, defined as the amount at which an asset or group of assets could be bought or sold in a current transaction between willing parties, the Company utilizes currently available market valuations of similar assets in its respective industries, often expressed as a given multiple of operating cash flow. The Company evaluated the value of its property and equipment during fiscal 2019, fiscal 2018 and fiscal 2017 and the value of its Operating lease right-of-use assets during fiscal 2019 and determined that there was no impact on the Company’s results of operations, other than the impairment charge discussed in Note 3. |
Acquisition | Acquisition - The Company recognizes identifiable assets acquired, liabilities assumed and noncontrolling interests assumed in an acquisition at their fair values at the acquisition date based upon all information available to it, including third-party appraisals. Acquisition-related costs, such as due diligence and legal fees, are expensed as incurred. The excess of the acquisition cost over the fair value of the identifiable net assets is reported as goodwill. |
Goodwill | Goodwill - The Company reviews goodwill for impairment annually or more frequently if certain indicators arise. The Company performs its annual impairment test on the last day of its fiscal year. The Company believes performing the test at the end of the fiscal year is preferable as the test is predicated on qualitative factors which are developed and finalized near fiscal year-end. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of the reporting unit, the period of time since its last quantitative test, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to the reporting unit. If the Company concludes that it is more likely than not that the fair value of its reporting unit is less than its carrying value, the Company performs a two-step quantitative impairment test by comparing the carrying value of the reporting unit to the estimated fair value. No impairment was identified as of December 26, 2019 or December 27, 2018. The Company has never recorded a goodwill impairment loss. A summary of the Company’s goodwill activity is as follows: December 26, December 27, December 28, 2019 2018 2017 (in thousands) Balance at beginning of period $ 43,170 $ 43,492 $ 43,735 Acquisition 32,205 — — Sale — — (105) Deferred tax adjustment (93) (322) (138) Balance at end of period $ 75,282 $ 43,170 $ 43,492 |
Trade Name Intangible Asset | Trade Name Intangible Asset – The Company acquired a trade name in conjunction with the Movie Tavern acquisition (see Note 4) that was determined to have an indefinite life. The Company will review its trade name intangible asset for impairment at least annually or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. The Company will perform its annual impairment test on the last day of its fiscal year. Under ASC Topic 350, the Company can elect to perform a qualitative or quantitative impairment assessment for its trade name intangible asset. The Company will first assess the qualitative factors to determine whether the existence of events and circumstances indicate that is it more likely than not that the fair value of the indefinite-lived asset is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test. No impairment was identified as of December 26, 2019. |
Capitalization of Interest | Capitalization of Interest - The Company capitalizes interest during construction periods by adding such interest to the cost of constructed assets. Interest of approximately $53,000, $65,000 and $400,000 was capitalized in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. |
Debt Issuance Costs | Debt Issuance Costs - The Company records debt issuance costs on long-term debt as a direct deduction from the related debt liability. Debt issuance costs related to the Company’s revolving credit facility are included in other long-term assets. Debt issuance costs are deferred and amortized over the term of the related debt agreements. Amortization of debt issuance costs totaled $285,000, $287,000 and $308,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively, and were included in interest expense on the consolidated statements of earnings. |
Leases | Leases - The Company adopted ASU No. 2016-02, Leases , on the first day of fiscal 2019. See Note 8 for further discussion. |
Investments | Investments – The Company has investments in debt and equity securities. These securities are stated at fair value based on listed market prices, where available, with the change in fair value recorded as investment income or loss within the consolidated statements of earnings. The cost of securities sold is based upon the specific identification method. |
Revenue Recognition | Revenue Recognition - The Company adopted ASU No. 2014‑09, Revenue from Contracts with Customers , on the first day of fiscal 2018. See Note 2 for further discussion. |
Advertising and Marketing Costs | Advertising and Marketing Costs - The Company expenses all advertising and marketing costs as incurred. |
Insurance Reserves | Insurance Reserves - The Company uses a combination of insurance and self insurance mechanisms, including participation in captive insurance entities, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, director and officers’ liability insurance, cyber liability, employment practices liability and business interruption. Liabilities associated with the risks that are retained by the company are not discounted and are estimated, in part, by considering historical claims experience, demographic factors and severity factors. |
Income Taxes | Income Taxes - The Company recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets represent items to be used as a tax deduction or credit in the future tax returns for which the Company has already properly recorded the tax benefit in the income statement. The Company regularly assesses the probability that the deferred tax asset balance will be recovered against future taxable income, taking into account such factors as earnings history, carryback and carryforward periods, and tax strategies. When the indications are that recovery is not probable, a valuation allowance is established against the deferred tax asset, increasing income tax expense in the year that conclusion is made. The Company assesses income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. See Note 11 - Income Taxes. |
Earnings Per Share | Earnings Per Share - Net earnings per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted net earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options using the treasury method. Convertible Class B Common Stock is reflected on an if-converted basis. The computation of the diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock, while the diluted net earnings per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of the Class B Common Stock. As such, the undistributed earnings for each year are allocated based on the proportionate share of entitled cash dividends. The computation of diluted net earnings per share of Common Stock assumes the conversion of Class B Common Stock and, as such, the undistributed earnings are equal to net earnings for that computation. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 42,017 $ 53,391 $ 64,996 Denominator: Denominator for basic EPS 30,656 28,105 27,789 Effect of dilutive employee stock options 496 608 614 Denominator for diluted EPS 31,152 28,713 28,403 Net earnings per share – Basic: Common Stock $ 1.44 $ 1.96 $ 2.42 Class B Common Stock $ 1.25 $ 1.75 $ 2.17 Net earnings per share- Diluted: Common Stock $ 1.35 $ 1.86 $ 2.29 Class B Common Stock $ 1.24 $ 1.72 $ 2.13 Options to purchase 324,000 shares, 16,000 shares and 250,000 shares of common stock at prices ranging from $38.51 to $41.90, $38.51 to $41.35 and $31.20 to $31.55 per share were outstanding at December 26, 2019, December 27, 2018 and December 28, 2017, respectively, but were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the common shares, and therefore, the effect would be antidilutive. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss – Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: December 26, 2019 December 27, 2018 (in thousands) Unrecognized loss on interest rate swap agreements $ (882) (149) Net unrecognized actuarial loss for pension obligation (11,766) (6,609) $ (12,648) $ (6,758) |
Concentration of Risk | Concentration of Risk - As of December 26, 2019, 6% of the Company’s employees were covered by a collective bargaining agreement, of which 15% were covered by an agreement that will expire within one year. As of December 27, 2018, 7% of the Company’s employees were covered by a collective bargaining agreement, of which 96% were covered by an agreement that will expire within one year. |
New Accounting Pronouncements | New Accounting Pronouncements – In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment , which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for the Company in fiscal 2020 and must be applied prospectively. The Company does not believe the new standard will have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General , designed to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU No. 2018-14 is effective for the Company in fiscal 2020 and early application is permitted. The Company does not believe the new standard will have a material effect on its consolidated financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The purpose of ASU No. 2018-13 is to improve the disclosures related to fair value measurements in the financial statements. The improvements include the removal, modification and addition of certain disclosure requirements primarily related to Level 3 fair value measurements. ASU No. 2018-13 is effective for the Company in fiscal 2020. The amendments in ASU No. 2018-13 should be applied prospectively. The Company does not expect ASU No. 2018-13 to have a significant impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in ASU No. 2019-12 are designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify generally accepted accounting principles for other areas of Topic 740 by clarifying and amending existing guidance. ASU No. 2019-12 is effective for the Company in fiscal 2021 and early application is permitted. The Company is currently evaluating the effect the new standard will have on its consolidated financial statements. On December 28, 2018, the Company adopted ASU No. 2016-02, Leases (Topic 842) , which is intended to improve financial reporting related to leasing transactions. ASC 842 requires a lessee to recognize on the balance sheet assets and liabilities for rights and obligations created by leased assets with lease terms of more than 12 months. The new guidance also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from the leases. See Note 8 for further discussion. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Schedule Of Depreciation And Amortization Of Property And Equipment | Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the following estimated useful lives or any related lease terms: Years Land improvements 10 - 20 Buildings and improvements 12 - 39 Leasehold improvements 3 - 40 Furniture, fixtures and equipment 3 - 20 Finance lease right-of-use assets 4 - 15 |
Schedule of Goodwill | A summary of the Company’s goodwill activity is as follows: December 26, December 27, December 28, 2019 2018 2017 (in thousands) Balance at beginning of period $ 43,170 $ 43,492 $ 43,735 Acquisition 32,205 — — Sale — — (105) Deferred tax adjustment (93) (322) (138) Balance at end of period $ 75,282 $ 43,170 $ 43,492 |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands, except per share data) Numerator: Net earnings attributable to The Marcus Corporation $ 42,017 $ 53,391 $ 64,996 Denominator: Denominator for basic EPS 30,656 28,105 27,789 Effect of dilutive employee stock options 496 608 614 Denominator for diluted EPS 31,152 28,713 28,403 Net earnings per share – Basic: Common Stock $ 1.44 $ 1.96 $ 2.42 Class B Common Stock $ 1.25 $ 1.75 $ 2.17 Net earnings per share- Diluted: Common Stock $ 1.35 $ 1.86 $ 2.29 Class B Common Stock $ 1.24 $ 1.72 $ 2.13 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: December 26, 2019 December 27, 2018 (in thousands) Unrecognized loss on interest rate swap agreements $ (882) (149) Net unrecognized actuarial loss for pension obligation (11,766) (6,609) $ (12,648) $ (6,758) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Revenue Recognition | |
Disaggregation of Revenue | The disaggregation of revenues by business segment for fiscal 2019 and fiscal 2018 is as follows (in thousands): Fiscal 2019 Reportable Segment Hotels/ Theatres Resorts Corporate Total Theatre admissions $ 284,141 $ — $ — $ 284,141 Rooms — 105,857 — 105,857 Theatre concessions 231,237 — — 231,237 Food and beverage — 74,665 — 74,665 Other revenues (1) 40,825 46,547 433 87,805 Cost reimbursements 877 36,281 — 37,158 Total revenues $ 557,080 $ 263,350 $ 433 $ 820,863 Fiscal 2018 Reportable Segment Hotels/ Theatres Resorts Corporate Total Theatre admissions $ 246,385 $ — $ — $ 246,385 Rooms — 108,786 — 108,786 Theatre concessions 166,564 — — 166,564 Food and beverage — 72,771 — 72,771 Other revenues (1) 32,563 45,342 424 78,329 Cost reimbursements 1,292 32,993 — 34,285 Total revenues $ 446,804 $ 259,892 $ 424 $ 707,120 (1) Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014‑09. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Due to adoption of ASU No. 2014‑09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows: Balance at Balance at December 28, Cumulative December 29, 2017 Adjustment 2017 (in thousands) Refundable income taxes $ 15,335 $ 945 $ 16,280 Other accrued liabilities 53,291 3,296 56,587 Deferred compensation and other 56,662 217 56,879 Retained earnings 403,206 (2,568) 400,638 The adoption of ASU No. 2014‑09 had the following effect on our fiscal 2018 consolidated statement of earnings (in thousands): ASU No. 2014‑09 As Reported Impact Adjusted (1) Revenues: Theatre admissions $ 246,385 $ (1,805) $ 248,190 Theatre concessions 166,564 2,526 164,038 Food and beverage 72,771 19 72,752 Other revenues 78,329 4,997 73,332 Total revenues 707,120 5,737 701,383 Costs and expenses: Theatre operations 217,851 669 217,182 Theatre concessions 47,522 634 46,888 Advertising and marketing 23,775 (1,076) 24,851 Other operating expenses 36,534 4,878 31,656 Total costs and expenses 623,931 5,105 618,826 Operating income 83,189 632 82,557 Income taxes 13,127 125 13,002 Net earnings attributable to The Marcus Corporation 53,391 507 52,884 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014‑09. The adoption of ASU No. 2014‑09 had the following effect on our consolidated balance sheet as of December 27, 2018 (in thousands): ASU No. 2014‑09 As Reported Impact Adjusted (1) Refundable income taxes $ 5,983 $ 820 $ 5,163 Total current assets 68,949 820 68,129 Total assets 989,331 820 988,511 Other accrued liabilities 59,645 2,782 56,863 Total current liabilities 149,256 2,782 146,474 Deferred compensation and other 56,908 99 56,809 Retained Earnings 439,178 (2,061) 441,239 Shareholders’ equity attributable to The Marcus Corporation 490,009 (2,061) 492,070 Total equity 490,119 (2,061) 492,180 Total liabilities and shareholders’ equity 989,331 820 988,511 (1) The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014‑09. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Acquisition | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is a summary of the allocation of the purchase price (in thousands): Other current assets $ 4,855 Property and equipment (1) 95,021 Operating lease right-of-use assets 160,567 Deferred tax asset 753 Other (long-term assets) (2) 9,710 Goodwill (3) 32,205 Taxes other than income taxes (206) Other accrued liabilities (3,322) Operating lease obligations (160,273) Total $ 139,310 (1) Amounts recorded for property and equipment include land, building, leasehold improvements and equipment. (2) Amounts recorded primarily relate to a trade name intangible asset of $9,500,000 which the Company has determined to have an indefinite life. (3) Amounts recorded for goodwill are expected to be deductible for tax purposes. |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Additional Balance Sheet Information | |
Schedule of Accounts, Notes, Loans and Financing Receivable | December 26, 2019 December 27, 2018 (in thousands) Trade receivables, net of allowances of $762 and $361, respectively $ 9,327 $ 8,538 Other receivables 20,138 17,146 $ 29,465 $ 25,684 |
Schedule of Property, Plant and Equipment | The composition of property and equipment, which is stated at cost, is as follows: December 26, 2019 December 27, 2018 (in thousands) Land and improvements $ 152,434 $ 150,122 Buildings and improvements 761,511 745,886 Leasehold improvements 164,083 98,885 Furniture, fixtures and equipment 377,404 314,875 Finance lease right-of-use assets 74,357 72,631 Construction in progress 4,043 12,513 1,533,832 1,394,912 Less accumulated depreciation and amortization 610,578 554,869 $ 923,254 $ 840,043 |
Schedule of Other Assets | The composition of other assets is as follows: December 26, 2019 December 27, 2018 (in thousands) Split dollar life insurance policies $ 11,411 $ 11,411 Intangible assets 10,057 890 Favorable lease right — 8,818 Other assets 12,468 11,981 $ 33,936 $ 33,100 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Long-Term Debt | |
Schedule of Long-term Debt Instruments | Long-term debt is summarized as follows: December 26, 2019 December 27, 2018 (in thousands, except payment data) Mortgage notes $ 24,571 $ 39,852 Senior notes 109,000 118,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest at 5.75% 2,093 2,432 Revolving credit agreement 81,000 79,000 Debt issuance costs (322) (464) 216,342 238,820 Less current maturities, net of issuance costs 9,910 9,957 $ 206,432 $ 228,863 |
Schedule of Maturities of Long-term Debt | Scheduled annual principal payments on long-term debt, net of amortization of debt issuance costs, for the years subsequent to December 26, 2019, are: Fiscal Year (in thousands) 2020 $ 9,910 2021 10,963 2022 11,013 2023 11,066 2024 11,119 Thereafter 162,271 $ 216,342 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Leases | |
Schedule of Supplemental Balance Sheet Information Relates to the Effect of the Adoption of Topic 842 | Balance at Balance at December 27, ASC 842 December 28, 2018 Adjustments 2018 (in thousands) Assets Other current assets $ 15,355 $ (690) $ 14,665 Operating lease right-of-use assets — 76,178 76,178 Other assets (long term) 33,100 (8,868) 24,232 Liabilities Other accrued liabilities 59,645 (4,396) 55,249 Current portion of operating lease obligations — 5,909 5,909 Operating lease obligations — 75,608 75,608 Deferred compensation and other 56,908 (10,501) 46,407 |
Schedule of Lease, Cost | Lease Cost Classification Fiscal 2019 (in thousands) Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 3,507 Interest on lease liabilities Interest expense 1,247 $ 4,754 Operating lease costs: Operating lease costs Rent expense $ 24,302 Variable lease cost Rent expense 1,560 Short-term lease cost Rent expense 237 $ 26,099 |
Schedule of Other Information Related to Leases | Other Information Fiscal 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 2,544 Operating cash flows from finance leases 1,247 Operating cash flows from operating leases 25,226 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 1,726 Operating lease liabilities, including from acquisitions 180,103 December 26, 2019 Finance leases: (in thousands) Property and equipment – gross $ 74,357 Accumulated depreciation and amortization (52,869) Property and equipment - net $ 21,488 |
Schedule of Lease Term and Discount Rate | Lease Term and Discount Rate December 26, 2019 Weighted-average remaining lease terms: Finance leases 10 years Operating leases 15 years Weighted-average discount rates: Finance leases 4.67 % Operating leases 4.56 % |
Schedule of Maturities of Operating and Finance Leases Liabilities | Fiscal Year Operating Leases Finance Leases 2020 $ 24,369 $ 3,606 2021 25,730 2,997 2022 26,313 2,950 2023 24,808 2,840 2024 24,534 2,859 Thereafter 214,060 14,093 Total lease payments 339,814 29,345 Less: amount representing interest (94,368) (5,972) Total lease liabilities $ 245,446 $ 23,373 |
Schedule of Future Minimum Rental Payments for Operating and Finance Leases Relating to Prior Accounting Guidance | Fiscal Year Operating Leases Capital Leases 2019 $ 11,317 $ 3,073 2020 10,169 2,978 2021 9,670 2,679 2022 9,910 2,718 2023 9,038 2,718 2024 and thereafter 80,523 16,940 Total minimum lease payments $ 130,627 31,106 Less: amount representing interest (6,978) Total present value of minimum capital lease payments $ 24,128 |
Shareholders' Equity and Stoc_2
Shareholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Shareholders' Equity and Stock-Based Compensation | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions used for awards granted during fiscal 2019, fiscal 2018 and fiscal 2017: Year Ended Year Ended Year Ended December 26, 2019 December 27, 2018 December 28, 2017 Risk-free interest rate 2.50 – 2.60% 2.70 – 2.80% 2.08 – 2.20% Dividend yield 1.70% 2.10% 2.10% Volatility 27 – 32% 28 – 33% 34 – 43% Expected life 6 – 8 years 6 – 8 years 7 – 8 years |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company’s stock option activity and related information follows: December 26, 2019 December 27, 2018 December 28, 2017 Weighted- Weighted- Weighted- Average Average Average Exercise Exercise Exercise Options Price Options Price Options Price (options in thousands) Outstanding at beginning of period 1,450 $ 21.25 1,629 $ 18.08 1,563 $ 15.94 Granted 329 41.67 336 27.59 273 31.08 Exercised (97) 15.60 (478) 14.74 (133) 17.04 Forfeited (41) 30.58 (37) 23.35 (74) 22.37 Outstanding at end of period 1,641 25.46 1,450 21.25 1,629 18.08 Exercisable at end of period 802 $ 18.22 699 $ 15.87 988 $ 14.69 Weighted-average fair value of options granted during the period $ 11.79 $ 7.87 $ 10.54 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Exercise Price Range $10.00 to $18.35 to $27.01 to $18.34 $27.00 $41.90 (options in thousands) Options outstanding 464 610 567 Weighted-average exercise price of options outstanding $ 14.03 $ 23.22 $ 37.22 Weighted-average remaining contractual life of options outstanding 3.1 7.0 8.4 Options exercisable 464 218 120 Weighted-average exercise price of options exercisable $ 14.03 $ 19.80 $ 31.54 |
Schedule of Nonvested Share Activity | A summary of the Company’s non-vested stock activity and related information follows: December 26, 2019 December 27, 2018 December 28, 2017 Weighted- Weighted- Weighted- Average Average Average Fair Fair Fair Shares Value Shares Value Shares Value (options in thousands) Outstanding at beginning of period 158 $ 18.98 137 $ 21.94 143 $ 19.30 Granted 39 38.24 52 29.02 37 29.12 Vested (23) 18.60 (31) 16.41 (36) 18.78 Forfeited — — — — (7) 22.86 Outstanding at end of period 174 $ 29.16 158 $ 18.98 137 $ 21.94 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Employee Benefit Plans | |
Schedule of Changes in Projected Benefit Obligations | The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 26, 2019 and December 27, 2018 measurement dates is as follows: December 26, December 27, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 35,640 $ 37,639 Service cost 833 926 Interest cost 1,485 1,364 Actuarial (gain) loss 7,317 (2,633) Benefits paid (1,451) (1,656) Benefit obligation at end of year $ 43,824 $ 35,640 Amounts recognized in the statement of financial position consist of: Current accrued benefit liability (included in Other accrued liabilities) $ (1,400) $ (1,378) Noncurrent accrued benefit liability (included in Deferred compensation and other) (42,424) (34,262) Total $ (43,824) $ (35,640) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 16,373 $ 9,556 Prior service credit (451) (515) Total $ 15,922 $ 9,041 |
Schedule of Net Periodic Pension Cost | Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Net periodic pension cost: Service cost $ 833 $ 926 $ 765 Interest cost 1,485 1,364 1,356 Net amortization of prior service cost and actuarial loss 436 621 356 $ 2,754 $ 2,911 $ 2,477 |
Schedule of pre-tax change in the benefit obligation | The pre-tax change in the benefit obligation recognized in other comprehensive loss was as follows: Year Ended December 26, 2019 December 27, 2018 (in thousands) Net actuarial loss (gain) $ 7,317 (2,633) Amortization of the net actuarial loss (499) (685) Amortization of the prior year service credit 63 64 Total $ 6,881 (3,254) |
Schedule of Assumptions Used | The weighted-average assumptions used to determine the benefit obligations as of the measurement dates were as follows: December 26, 2019 December 27, 2018 Discount rate 3.10 % 4.15 % Rate of compensation increase 4.00 % 4.00 % The weighted-average assumptions used to determine net periodic benefit cost were as follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 Discount rate 4.15 % 3.60 % 4.15 % Rate of compensation increase 4.00 % 4.00 % 4.00 % |
Schedule of Expected Benefit Payments | Benefit payments expected to be paid subsequent to December 26, 2019, are: Fiscal Year (in thousands) 2020 $ 1,400 2021 1,709 2022 1,538 2023 1,532 2024 1,791 Years 2025 – 2029 12,402 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Income Taxes | |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax liability are as follows: December 26, 2019 December 27, 2018 (in thousands) Accrued employee benefits $ 15,145 $ 13,381 Depreciation and amortization (69,100) (59,296) Operating lease assets (62,339) — Operating lease liabilities 62,750 — Other 5,282 3,938 Net deferred tax liability $ (48,262) $ (41,977) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Current: Federal $ 1,187 $ 7,022 $ 8,707 State 2,041 3,181 1,558 Deferred: Federal 9,228 2,815 (7,155) State (136) 109 515 $ 12,320 $ 13,127 $ 3,625 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % Tax benefit from Tax Cuts and Jobs Act of 2017 — (2.9) (30.9) State income taxes, net of federal income tax benefit 5.5 6.1 4.8 Tax credits, net of federal income tax benefit (2.7) (1.1) (0.8) Other (1.1) (3.4) (2.8) 22.7 % 19.7 % 5.3 % |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows: Year Ended December 26, December 27, December 28, 2019 2018 2017 (in thousands) Balance at beginning of year $ — $ 102 $ 414 Increases due to: Tax positions taken in prior years — — — Tax positions taken in current year — — — Decreases due to: Tax positions taken in prior years — — — Settlements with taxing authorities — (102) — Lapse of applicable statute of limitations — — (312) Balance at end of year $ — $ — $ 102 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Business Segment Information | |
Schedule of Segment Reporting Information, by Segment | Following is a summary of business segment information for fiscal 2019, fiscal 2018 and fiscal 2017: Hotels/ Corporate Theatres Resorts Items Total (in thousands) Fiscal 2019 Revenues $ 557,080 $ 263,350 $ 433 $ 820,863 Operating income (loss) 76,903 10,050 (18,762) 68,191 Depreciation and amortization 51,202 20,430 645 72,277 Assets 953,299 337,206 68,681 1,359,186 Capital expenditures and acquisitions 61,604 31,783 780 94,167 Fiscal 2018 Revenues $ 446,804 $ 259,892 $ 424 $ 707,120 Operating income (loss) 88,790 12,480 (18,081) 83,189 Depreciation and amortization 38,760 22,229 353 61,342 Assets 624,512 306,162 58,657 989,331 Capital expenditures and acquisitions 43,568 14,931 161 58,660 Fiscal 2017 Revenues $ 403,431 $ 249,564 $ 557 $ 653,552 Operating income (loss) 80,447 12,895 (16,035) 77,307 Depreciation and amortization 33,448 17,912 359 51,719 Assets 637,723 313,942 66,132 1,017,797 Capital expenditures and acquisitions 93,676 20,604 524 114,804 Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues. Corporate assets primarily include cash and cash equivalents, furniture, fixtures and equipment, investments and land held for development. |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Unaudited Quarterly Financial Information | |
Schedule of Quarterly Financial Information | 13 Weeks Ended March 28, June 27, September 26, December 26, Fiscal 2019 2019 2019 2019 2019 Revenues $ 170,039 $ 232,500 $ 211,462 $ 206,862 Operating income 4,950 27,475 22,387 13,379 Net earnings attributable to The Marcus Corporation 1,860 18,066 14,289 7,802 Net earnings per common share – diluted $ 0.06 $ 0.58 $ 0.46 $ 0.25 13 Weeks Ended March 29, June 28, September 27, December 27, Fiscal 2018 2018 2018 2018 2018 Revenues $ 168,191 $ 193,298 $ 170,599 $ 175,032 Operating income 17,016 29,107 22,413 14,653 Net earnings attributable to The Marcus Corporation 9,821 18,619 16,231 8,720 Net earnings per common share – diluted $ 0.35 $ 0.65 $ 0.56 $ 0.30 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Depreciation and Amortization of Property and Equipment (Details) | 12 Months Ended |
Dec. 26, 2019 | |
Land improvements | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Land improvements | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Buildings and improvements | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Buildings and improvements | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Leasehold improvements | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold improvements | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Furniture, fixtures and equipment | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, fixtures and equipment | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Finance lease right-of-use assets | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Finance lease right-of-use assets | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Goodwill activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Description of Business and Summary of Significant Accounting Policies | |||
Goodwill, Beginning Balance | $ 43,170 | $ 43,492 | $ 43,735 |
Acquisition | 32,205 | 0 | 0 |
Sale | 0 | 0 | (105) |
Deferred tax adjustment | (93) | (322) | (138) |
Goodwill, Ending Balance | $ 75,282 | $ 43,170 | $ 43,492 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Reconciliation of weighted-average basic and diluted shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Numerator: | |||||||||||
Net earnings attributable to The Marcus Corporation | $ 7,802 | $ 14,289 | $ 18,066 | $ 1,860 | $ 8,720 | $ 16,231 | $ 18,619 | $ 9,821 | $ 42,017 | $ 53,391 | $ 64,996 |
Denominator: | |||||||||||
Denominator for basic EPS | 30,656 | 28,105 | 27,789 | ||||||||
Effect of dilutive employee stock options | 496 | 608 | 614 | ||||||||
Denominator for diluted EPS | 31,152 | 28,713 | 28,403 | ||||||||
Common Stock [Member] | |||||||||||
Net earnings per share - Basic: | |||||||||||
Common Stock | $ 1.44 | $ 1.96 | $ 2.42 | ||||||||
Net earnings per share- Diluted: | |||||||||||
Common Stock | 1.35 | 1.86 | 2.29 | ||||||||
Class B Common Stock [Member] | |||||||||||
Net earnings per share - Basic: | |||||||||||
Common Stock | 1.25 | 1.75 | 2.17 | ||||||||
Net earnings per share- Diluted: | |||||||||||
Common Stock | $ 1.24 | $ 1.72 | $ 2.13 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Description of Business and Summary of Significant Accounting Policies | ||
Unrecognized loss on interest rate swap agreements | $ (882) | $ (149) |
Net unrecognized actuarial loss for pension obligation | (11,766) | (6,609) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (12,648) | $ (6,758) |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||
Depreciation | $ 72,244,000 | $ 61,470,000 | $ 51,542,000 |
Percentage Of Cash Dividends | 110.00% | ||
Senior Notes | $ 109,000,000 | 118,000,000 | |
Inventory, Net | $ 5,673,000 | 4,138,000 | |
Concentration Risk, Labor Subject to Collective Bargaining Arrangements | As of December 26, 2019, 6% of the Company's employees were covered by a collective bargaining agreement, of which 15% were covered by an agreement that will expire within one year. As of December 27, 2018, 7% of the Company's employees were covered by a collective bargaining agreement, of which 96% were covered by an agreement that will expire within one year. | ||
Interest Costs Capitalized | $ 53,000 | 65,000 | 400,000 |
Amortization of Debt Issuance Costs | $ 285,000 | $ 287,000 | $ 308,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 324,000 | 16,000 | 250,000 |
Senior Notes [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Senior Notes | $ 109,000,000 | ||
Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | $ 38.51 | $ 38.51 | $ 31.20 |
Maximum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | $ 41.90 | $ 41.35 | $ 31.55 |
Corporate Joint Venture One [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Ownership Interest In Joint Ventures | 50.00% | ||
Corporate Joint Venture Two [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Ownership Interest In Joint Ventures | 50.00% | ||
Fair Value, Inputs, Level 1 [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Trading Securities, Fair Value Disclosure | $ 5,825,000 | $ 5,302,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Senior Notes | 110,985,000 | ||
Interest Rate Fair Value Hedge Liability at Fair Value | $ 1,194,000 | $ 205,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | ||||
Revenue Recognition | ||||||||||||||
Cost reimbursements | $ 37,158 | $ 34,285 | $ 30,838 | |||||||||||
Total revenues | $ 206,862 | $ 211,462 | $ 232,500 | $ 170,039 | $ 175,032 | $ 170,599 | $ 193,298 | $ 168,191 | 820,863 | 707,120 | 653,552 | |||
Theatre admissions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 284,141 | 246,385 | 227,091 | |||||||||||
Rooms [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 105,857 | 108,786 | 106,876 | |||||||||||
Theatre concessions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 231,237 | 166,564 | 148,989 | |||||||||||
Food and beverage [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 74,665 | 72,771 | 70,627 | |||||||||||
Other revenues [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 87,805 | [1] | 78,329 | [1] | $ 69,131 | |||||||||
Theatres Segment [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Cost reimbursements | 877 | 1,292 | ||||||||||||
Total revenues | 557,080 | 446,804 | ||||||||||||
Theatres Segment [Member] | Theatre admissions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 284,141 | 246,385 | ||||||||||||
Theatres Segment [Member] | Rooms [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Theatres Segment [Member] | Theatre concessions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 231,237 | 166,564 | ||||||||||||
Theatres Segment [Member] | Food and beverage [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Theatres Segment [Member] | Other revenues [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 40,825 | 32,563 | |||||||||||
Hotels or Resorts [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Cost reimbursements | 36,281 | 32,993 | ||||||||||||
Total revenues | 263,350 | 259,892 | ||||||||||||
Hotels or Resorts [Member] | Theatre admissions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Hotels or Resorts [Member] | Rooms [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 105,857 | 108,786 | ||||||||||||
Hotels or Resorts [Member] | Theatre concessions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Hotels or Resorts [Member] | Food and beverage [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 74,665 | 72,771 | ||||||||||||
Hotels or Resorts [Member] | Other revenues [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 46,547 | 45,342 | |||||||||||
Corporate Segment [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Cost reimbursements | 0 | |||||||||||||
Total revenues | 433 | 424 | ||||||||||||
Corporate Segment [Member] | Theatre admissions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Corporate Segment [Member] | Rooms [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Corporate Segment [Member] | Theatre concessions [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Corporate Segment [Member] | Food and beverage [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||||||
Corporate Segment [Member] | Other revenues [Member] | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | $ 433 | $ 424 | |||||||||||
[1] | Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 201409. |
Revenue Recognition - Adoption
Revenue Recognition - Adoption of ASU No. 2014-09 on balance sheet (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 29, 2017 | Dec. 28, 2017 | |
Revenue Recognition | |||||
Refundable income taxes | $ 5,916 | $ 5,983 | $ 15,335 | ||
Other accrued liabilities | 61,134 | 59,645 | 53,291 | ||
Deferred compensation and other | 55,133 | 56,908 | 56,662 | ||
Retained earnings | $ 461,884 | 439,178 | $ 403,206 | ||
Accounting Standards Update 2014-09 [Member] | |||||
Revenue Recognition | |||||
Refundable income taxes | 5,163 | [1] | $ 16,280 | ||
Other accrued liabilities | 56,863 | [1] | 56,587 | ||
Deferred compensation and other | 56,809 | [1] | 56,879 | ||
Retained earnings | 441,239 | [1] | 400,638 | ||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||
Revenue Recognition | |||||
Refundable income taxes | 820 | 945 | |||
Other accrued liabilities | 2,782 | 3,296 | |||
Deferred compensation and other | 99 | 217 | |||
Retained earnings | $ (2,061) | $ (2,568) | |||
[1] | The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 201409. |
Revenue Recognition - Adoptio_2
Revenue Recognition - Adoption of ASU No. 2014-09 effect on statement of earnings and balance sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2017 | Dec. 29, 2016 | |||||
Revenues: | |||||||||||||||||
Total revenues | $ 206,862 | $ 211,462 | $ 232,500 | $ 170,039 | $ 175,032 | $ 170,599 | $ 193,298 | $ 168,191 | $ 820,863 | $ 707,120 | $ 653,552 | ||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Advertising and marketing | 24,583 | 23,775 | 23,960 | ||||||||||||||
Other operating expenses | 41,065 | 36,534 | 31,525 | ||||||||||||||
Total costs and expenses | 752,672 | 623,931 | 576,245 | ||||||||||||||
Operating income | 13,379 | 22,387 | 27,475 | 4,950 | 14,653 | 22,413 | 29,107 | 17,016 | 68,191 | 83,189 | 77,307 | ||||||
Income taxes | 12,320 | 13,127 | 3,625 | ||||||||||||||
Net earnings attributable to The Marcus Corporation | 7,802 | $ 14,289 | $ 18,066 | $ 1,860 | 8,720 | $ 16,231 | $ 18,619 | $ 9,821 | 42,017 | 53,391 | 64,996 | ||||||
Balance Sheet [Abstract] | |||||||||||||||||
Refundable income taxes | 5,916 | 5,983 | 5,916 | 5,983 | 15,335 | ||||||||||||
Total current assets | 79,264 | 68,949 | 79,264 | 68,949 | |||||||||||||
Total assets | 1,359,186 | 989,331 | 1,359,186 | 989,331 | 1,017,797 | ||||||||||||
Other accrued liabilities | 61,134 | 59,645 | 61,134 | 59,645 | 53,291 | ||||||||||||
Total current liabilities | 174,988 | 149,256 | 174,988 | 149,256 | |||||||||||||
Deferred compensation and other | 55,133 | 56,908 | 55,133 | 56,908 | 56,662 | ||||||||||||
Retained earnings | 461,884 | 439,178 | 461,884 | 439,178 | 403,206 | ||||||||||||
Shareholders' equity attributable to The Marcus Corporation | 621,435 | 490,009 | 621,435 | 490,009 | |||||||||||||
Total equity | 621,458 | 490,119 | 621,458 | 490,119 | 445,124 | $ 442,556 | $ 391,647 | ||||||||||
Total liabilities and shareholders' equity | $ 1,359,186 | 989,331 | 1,359,186 | 989,331 | |||||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||||||||
Balance Sheet [Abstract] | |||||||||||||||||
Refundable income taxes | 5,163 | [1] | 5,163 | [1] | 16,280 | ||||||||||||
Total current assets | [1] | 68,129 | 68,129 | ||||||||||||||
Total assets | [1] | 988,511 | 988,511 | ||||||||||||||
Other accrued liabilities | 56,863 | [1] | 56,863 | [1] | 56,587 | ||||||||||||
Total current liabilities | [1] | 146,474 | 146,474 | ||||||||||||||
Deferred compensation and other | 56,809 | [1] | 56,809 | [1] | 56,879 | ||||||||||||
Retained earnings | 441,239 | [1] | 441,239 | [1] | 400,638 | ||||||||||||
Shareholders' equity attributable to The Marcus Corporation | [1] | 492,070 | 492,070 | ||||||||||||||
Total equity | [1] | 492,180 | 492,180 | ||||||||||||||
Total liabilities and shareholders' equity | [1] | 988,511 | 988,511 | ||||||||||||||
Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | [1] | 701,383 | |||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Advertising and marketing | [1] | 24,851 | |||||||||||||||
Other operating expenses | [1] | 31,656 | |||||||||||||||
Total costs and expenses | [1] | 618,826 | |||||||||||||||
Operating income | [1] | 82,557 | |||||||||||||||
Income taxes | [1] | 13,002 | |||||||||||||||
Net earnings attributable to The Marcus Corporation | [1] | 52,884 | |||||||||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||||||||
Balance Sheet [Abstract] | |||||||||||||||||
Refundable income taxes | 820 | 820 | 945 | ||||||||||||||
Total current assets | 820 | 820 | |||||||||||||||
Total assets | 820 | 820 | |||||||||||||||
Other accrued liabilities | 2,782 | 2,782 | 3,296 | ||||||||||||||
Total current liabilities | 2,782 | 2,782 | |||||||||||||||
Deferred compensation and other | 99 | 99 | 217 | ||||||||||||||
Retained earnings | (2,061) | (2,061) | $ (2,568) | ||||||||||||||
Shareholders' equity attributable to The Marcus Corporation | (2,061) | (2,061) | |||||||||||||||
Total equity | (2,061) | (2,061) | |||||||||||||||
Total liabilities and shareholders' equity | $ 820 | 820 | |||||||||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | 5,737 | ||||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Advertising and marketing | (1,076) | ||||||||||||||||
Other operating expenses | 4,878 | ||||||||||||||||
Total costs and expenses | 5,105 | ||||||||||||||||
Operating income | 632 | ||||||||||||||||
Income taxes | 125 | ||||||||||||||||
Net earnings attributable to The Marcus Corporation | 507 | ||||||||||||||||
Theatre admissions [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 284,141 | 246,385 | 227,091 | ||||||||||||||
Theatre admissions [Member] | Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 248,190 | |||||||||||||||
Theatre admissions [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | (1,805) | ||||||||||||||||
Theatre concessions [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 231,237 | 166,564 | 148,989 | ||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | 85,289 | 47,522 | 43,634 | ||||||||||||||
Theatre concessions [Member] | Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 164,038 | |||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | [1] | 46,888 | |||||||||||||||
Theatre concessions [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 2,526 | ||||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | 634 | ||||||||||||||||
Food and beverage [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 74,665 | 72,771 | 70,627 | ||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | 60,812 | 58,662 | 59,375 | ||||||||||||||
Food and beverage [Member] | Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 72,752 | |||||||||||||||
Food and beverage [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 19 | ||||||||||||||||
Other revenues [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 87,805 | [2] | 78,329 | [2] | 69,131 | ||||||||||||
Other revenues [Member] | Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 73,332 | |||||||||||||||
Other revenues [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 4,997 | ||||||||||||||||
Theatre operations | |||||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | $ 267,741 | 217,851 | $ 197,270 | ||||||||||||||
Theatre operations | Accounting Standards Update 2014-09 [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | [1] | 217,182 | |||||||||||||||
Theatre operations | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Pro Forma Adjustment [Member] | |||||||||||||||||
Costs and Expenses [Abstract] | |||||||||||||||||
Cost of Goods and Services Sold | $ 669 | ||||||||||||||||
[1] | The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 201409. | ||||||||||||||||
[2] | Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 201409. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Deferred Revenue | $ 43,200,000 | $ 37,048,000 | $ 36,007,000 |
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | 55,133,000 | 56,908,000 | $ 56,662,000 |
Deferred Revenue, Revenue Recognized | 22,266,000 | $ 24,840,000 | |
Advanced Sale Of Tickets [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 5,117,000 | ||
Redeemed Revenue From Advanced Tickets Sales Occurred | 2 years | ||
Hotels or Resorts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Remaining Performance Obligation Related to Hotels Gift Cards | $ 2,929,000 | ||
Expected Period For Revenue From Non-Redeemed Gift Cards | 2 years |
Impairment Charge - Additional
Impairment Charge - Additional Information (Detail) | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Impairment Charge [Line Items] | |
Impaired Asset Fair Value | $ 808,000 |
Fair Value, Inputs, Level 3 [Member] | |
Impairment Charge [Line Items] | |
Impairment of Fixed Assets | $ 1,874,000 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Feb. 01, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | ||
Acquisition | |||||||
Other current assets | $ 4,855 | ||||||
Property and equipment | [1] | 95,021 | |||||
Operating lease right-of-use-assets | 160,567 | ||||||
Deferred tax asset | 753 | ||||||
Other (long-term assets) | [2] | 9,710 | |||||
Goodwill | $ 75,282 | 32,205 | [3] | $ 43,170 | $ 43,492 | $ 43,735 | |
Taxes other than income taxes | (206) | ||||||
Other accrued liabilities | (3,322) | ||||||
Operating lease obligations | (160,273) | ||||||
Total | $ 139,310 | ||||||
[1] | Amounts recorded for property and equipment include land, building, leasehold improvements and equipment. | ||||||
[2] | Amounts recorded primarily relate to a trade name intangible asset of $9,500,000 which the Company has determined to have an indefinite life. | ||||||
[3] | Amounts recorded for goodwill are expected to be deductible for tax purposes. |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) | Feb. 01, 2019 | Dec. 26, 2019 | Dec. 27, 2018 |
Business Acquisition [Line Items] | |||
Business Acquisition, Trade name intangible asset | $ 9,500,000 | ||
VSSSouthern Theatres LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total Purchase Consideration | $ 139,310,000 | ||
Cash Consideration | $ 30,000,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,450,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 109,197,000 | ||
Operating lease, discount rate | 14.00% | ||
Tradename intangible asset, royalty rate | 1.00% | ||
Tradename intangible asset, discount rate | 17.00% | ||
Business Acquisition Revenue Reported By Acquired Entity | $ 125,839,000 | ||
Business Acquisition, Transaction Costs | 1,283,000 | $ 1,507,000 | |
Business Acquisition, Pro Forma Revenue | $ 832,349,000 | $ 845,662,000 |
Asset Sale - Additional Informa
Asset Sale - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 28, 2017 | Oct. 20, 2017 | |
Asset Sales [Line Items] | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 4,875,000 | |
Hotel Phillips [Member] | ||
Asset Sales [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 11.00% |
Additional Balance Sheet Info_3
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Additional Balance Sheet Information | ||
Trade receivables, net of allowances of $762 and $361, respectively | $ 9,327 | $ 8,538 |
Other receivables | 20,138 | 17,146 |
Accounts, Notes, Loans and Financing Receivable, Net, Current, Total | $ 29,465 | $ 25,684 |
Additional Balance Sheet Info_4
Additional Balance Sheet Information - Composition of property and equipment (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Property, Plant and Equipment, Gross | $ 1,533,832 | $ 1,394,912 |
Less accumulated depreciation and amortization | 610,578 | 554,869 |
Net property and equipment | 923,254 | 840,043 |
Land improvements | ||
Property, Plant and Equipment, Gross | 152,434 | 150,122 |
Buildings and improvements | ||
Property, Plant and Equipment, Gross | 761,511 | 745,886 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | 164,083 | 98,885 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment, Gross | 377,404 | 314,875 |
Finance lease right-of-use assets | ||
Property, Plant and Equipment, Gross | 74,357 | 72,631 |
Construction in progress | ||
Property, Plant and Equipment, Gross | $ 4,043 | $ 12,513 |
Additional Balance Sheet Info_5
Additional Balance Sheet Information - Composition of other assets (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Additional Balance Sheet Information | ||
Split dollar life insurance policies | $ 11,411,000 | $ 11,411,000 |
Intangible assets | 10,057,000 | 890,000 |
Favorable lease right | 8,818,000 | |
Other assets | 12,468,000 | 11,981,000 |
Other Assets, Noncurrent, Total | 33,936,000 | $ 33,100,000 |
Business Acquisition, Tradename Intangible Assets | $ 9,500,000 |
Additional Balance Sheet Info_6
Additional Balance Sheet Information - Additional Information (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Additional Balance Sheet Information | ||
Allowance for Doubtful Accounts Receivable | $ 762 | $ 361 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Long-Term Debt | ||
Mortgage notes | $ 24,571 | $ 39,852 |
Senior Notes | 109,000 | 118,000 |
Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest at 5.75% | 2,093 | 2,432 |
Revolving credit agreement | 81,000 | 79,000 |
Debt issuance costs | (322) | (464) |
Long-term Debt, Total | 216,342 | 238,820 |
Current maturities of long-term debt (Note 7) | 9,910 | 9,957 |
Long-term Debt, Excluding Current Maturities, Total | $ 206,432 | $ 228,863 |
Long-Term Debt - Annual princip
Long-Term Debt - Annual principal payments on long-term debt (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Long-Term Debt | ||
2020 | $ 9,910 | |
2021 | 10,963 | |
2022 | 11,013 | |
2023 | 11,066 | |
2024 | 11,119 | |
Thereafter | 162,271 | |
Long-term Debt | $ 216,342 | $ 238,820 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Mar. 01, 2018 | Jan. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Interest Rate of Unsecured Term Note | 5.75% | 5.75% | |||
Principal and interest payments | $ 39,110,000 | $ 39,110,000 | |||
Senior Notes | 109,000,000 | 118,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 139,000,000 | ||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 10,281,000 | 11,434,000 | $ 10,338,000 | ||
Derivative, Amount of Hedged Item | $ 50,000,000 | ||||
Interest Expense | 11,791,000 | $ 13,079,000 | $ 12,100,000 | ||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 109,000,000 | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.37% | 4.53% | |||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | ||||
Minimum [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.02% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||||
Maximum [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.55% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 81,000,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 3.46% | |||
Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 225,000,000 | ||||
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Fixed Interest Rate | 0.96% | ||||
Derivative, Notional Amount | $ 25,000,000 | ||||
Interest Expense | $ 13,000 | ||||
Interest Rate Swap [Member] | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Derivative, Fixed Interest Rate | 1.75% | ||||
Interest Rate Swap Agreements One [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Fixed Interest Rate | 2.559% | ||||
Derivative, Notional Amount | $ 25,000,000 | ||||
Interest Rate Swap Agreements Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Fixed Interest Rate | 2.687% | ||||
Derivative, Notional Amount | $ 25,000,000 | ||||
Interest Rate Fair Value Hedge Liability at Fair Value | $ 1,194,000 | $ 205,000 | |||
Mortgage Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 4.27% | 4.66% | |||
Mortgage Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate of Unsecured Term Note | 3.00% | ||||
Mortgage Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate of Unsecured Term Note | 5.03% |
Leases - Adoption of ASC 842 (D
Leases - Adoption of ASC 842 (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 28, 2018 | Dec. 27, 2018 | Dec. 28, 2017 |
Assets | ||||
Other current assets | $ 18,265 | $ 15,355 | ||
Operating lease right-of-use assets | 243,855 | |||
Other assets (long term) | 33,936 | 33,100 | ||
Liabilities | ||||
Other accrued liabilities | 61,134 | 59,645 | $ 53,291 | |
Current portion of operating lease obligations | 13,335 | |||
Operating lease obligations | 232,111 | |||
Deferred compensation and other | $ 55,133 | $ 56,908 | $ 56,662 | |
Accounting Standards Update 2016-02 [Member] | ||||
Assets | ||||
Other current assets | $ 14,665 | |||
Operating lease right-of-use assets | 76,178 | |||
Other assets (long term) | 24,232 | |||
Liabilities | ||||
Other accrued liabilities | 55,249 | |||
Current portion of operating lease obligations | 5,909 | |||
Operating lease obligations | 75,608 | |||
Deferred compensation and other | 46,407 | |||
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member] | ||||
Assets | ||||
Other current assets | (690) | |||
Operating lease right-of-use assets | 76,178 | |||
Other assets (long term) | (8,868) | |||
Liabilities | ||||
Other accrued liabilities | (4,396) | |||
Current portion of operating lease obligations | 5,909 | |||
Operating lease obligations | 75,608 | |||
Deferred compensation and other | $ (10,501) |
Leases - Total lease costs (Det
Leases - Total lease costs (Details) $ in Thousands | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Finance lease costs | |
Amortization of finance lease assets | $ 3,507 |
Interest on lease liabilities | 1,247 |
Total finance lease costs | 4,754 |
Operating lease costs | |
Operating lease costs | 24,302 |
Variable lease cost | 1,560 |
Short-term lease cost | 237 |
Total operating lease costs | $ 26,099 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Financing cash flows from finance leases | $ 2,544 |
Operating cash flows from finance leases | 1,247 |
Operating cash flows from operating leases | 25,226 |
Right of use assets obtained in exchange for new lease obligations: | |
Finance lease liabilities | 1,726 |
Operating lease liabilities, including from acquisitions | $ 180,103 |
Leases - Finance leases (Detail
Leases - Finance leases (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Finance leases: | ||
Property, Plant and Equipment, Gross | $ 1,533,832 | $ 1,394,912 |
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment | (610,578) | (554,869) |
Property, Plant and Equipment, Net | 923,254 | $ 840,043 |
Finance Leased Assets [Member] | ||
Finance leases: | ||
Property, Plant and Equipment, Gross | 74,357 | |
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment | (52,869) | |
Property, Plant and Equipment, Net | $ 21,488 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 26, 2019 |
Weighted-average remaining lease terms: | |
Finance leases | 10 years |
Operating leases | 15 years |
Weighted-average discount rates: | |
Finance leases | 4.67% |
Operating leases | 4.56% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Operating Leases | ||
2020 | $ 24,369 | |
2021 | 25,730 | |
2022 | 26,313 | |
2023 | 24,808 | |
2024 | 24,534 | |
Thereafter | 214,060 | |
Total lease payments | 339,814 | |
Less: amount representing interest | (94,368) | |
Total lease liabilities | 245,446 | |
Finance Leases | ||
2020 | 3,606 | $ 3,073 |
2021 | 2,997 | 2,978 |
2022 | 2,950 | 2,679 |
2023 | 2,840 | 2,718 |
2024 | 2,859 | 2,718 |
Thereafter | 14,093 | 16,940 |
Total minimum lease payments | 29,345 | 31,106 |
Less: amount representing interest | (5,972) | (6,978) |
Total lease liabilities | $ 23,373 | $ 24,128 |
Leases - Aggregate minimum leas
Leases - Aggregate minimum lease commitments (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Operating Leases | ||
2019 | $ 11,317 | |
2020 | 10,169 | |
2021 | 9,670 | |
2022 | 9,910 | |
2023 | 9,038 | |
2024 and thereafter | 80,523 | |
Total minimum lease payments | 130,627 | |
Capital Leases | ||
2019 | $ 3,606 | 3,073 |
2020 | 2,997 | 2,978 |
2021 | 2,950 | 2,679 |
2022 | 2,840 | 2,718 |
2023 | 2,859 | 2,718 |
2024 and thereafter | 14,093 | 16,940 |
Total minimum lease payments | 29,345 | 31,106 |
Less: amount representing interest | 5,972 | 6,978 |
Total lease liabilities | $ 23,373 | $ 24,128 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 28, 2017USD ($) | |
Leases | |
New capital leases | $ 6,173,000 |
Capital lease extension exercised | $ 3,675,000 |
Shareholders' Equity and Stoc_3
Shareholders' Equity and Stock-Based Compensation (Details) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.70% | 2.10% | 2.10% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.60% | 2.80% | 2.20% |
Volatility | 32.00% | 33.00% | 43.00% |
Expected life | 8 years | 8 years | 8 years |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.50% | 2.70% | 2.08% |
Volatility | 27.00% | 28.00% | 34.00% |
Expected life | 6 years | 6 years | 7 years |
Shareholders' Equity and Stoc_4
Shareholders' Equity and Stock-Based Compensation - Stock option activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||
Outstanding at beginning of period | 1,450 | 1,629 | 1,563 |
Granted | 329 | 336 | 273 |
Exercised | (97) | (478) | (133) |
Forfeited | (41) | (37) | (74) |
Outstanding at end of period | 1,641 | 1,450 | 1,629 |
Exercisable at end of period | 802 | 699 | 988 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 21.25 | $ 18.08 | $ 15.94 |
Granted | 41.67 | 27.59 | 31.08 |
Exercised | 15.60 | 14.74 | 17.04 |
Forfeited | 30.58 | 23.35 | 22.37 |
Outstanding at end of period | 25.46 | 21.25 | 18.08 |
Exercisable at end of period | 18.22 | 15.87 | 14.69 |
Weighted-average fair value of options granted during the period | $ 11.79 | $ 7.87 | $ 10.54 |
Shareholders' Equity and Stoc_5
Shareholders' Equity and Stock-Based Compensation - Options (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 1,641 | 1,450 | 1,629 | 1,563 |
Weighted-average exercise price of options outstanding | $ 25.46 | $ 21.25 | $ 18.08 | $ 15.94 |
Weighted-average remaining contractual life of options outstanding | 6 years 4 months 24 days | |||
Options exercisable | 802 | 699 | 988 | |
Weighted-average exercise price of options exercisable | $ 18.22 | $ 15.87 | $ 14.69 | |
Exercise Price Range 10.00 to 18.34 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 464 | |||
Weighted-average exercise price of options outstanding | $ 14.03 | |||
Weighted-average remaining contractual life of options outstanding | 3 years 1 month 6 days | |||
Options exercisable | 464 | |||
Weighted-average exercise price of options exercisable | $ 14.03 | |||
Exercise Price Range 18.35 To 27.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 610 | |||
Weighted-average exercise price of options outstanding | $ 23.22 | |||
Weighted-average remaining contractual life of options outstanding | 7 years | |||
Options exercisable | 218 | |||
Weighted-average exercise price of options exercisable | $ 19.80 | |||
Exercise Price Range 27.01 To 41.90 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 567 | |||
Weighted-average exercise price of options outstanding | $ 37.22 | |||
Weighted-average remaining contractual life of options outstanding | 8 years 4 months 24 days | |||
Options exercisable | 120 | |||
Weighted-average exercise price of options exercisable | $ 31.54 |
Shareholders' Equity and Stoc_6
Shareholders' Equity and Stock-Based Compensation - Non-vested stock activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Shareholders' Equity and Stock-Based Compensation | |||
Shares, Outstanding at beginning of year | 158 | 137 | 143 |
Shares, Granted | 39 | 52 | 37 |
Shares, Vested | (23) | (31) | (36) |
Shares, Forfeited | 0 | (7) | |
Shares, Outstanding at end of year | 174 | 158 | 137 |
Weighted- Average Fair Value, Outstanding at beginning of year | $ 18.98 | $ 21.94 | $ 19.30 |
Weighted- Average Fair Value, Granted | 38.24 | 29.02 | 29.12 |
Weighted- Average Fair Value, Vested | 18.60 | 16.41 | 18.78 |
Weighted- Average Fair Value, Forfeited | 0 | 22.86 | |
Weighted- Average Fair Value, Outstanding at end of year | $ 29.16 | $ 18.98 | $ 21.94 |
Shareholders' Equity and Stoc_7
Shareholders' Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 110.00% | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 11,687,500 | ||
Stock Repurchased During Period, Shares | 30,139 | 82,722 | 28,898 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,756,561 | ||
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | 4,937,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Available Shares Authorized | 430,582 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 588,834 | ||
Allocated Share-based Compensation Expense | $ 3,523,000 | $ 2,691,000 | $ 2,411,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1,127,000 | 2,617,000 | 1,227,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,587,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 25.13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 14,567,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 14,693,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 11,579,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 2,135,000 | $ 10,373,000 | $ 1,770,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 5,314,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Period for Recognition, Stock Options | 2 years 8 months 12 days | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 3,015,000 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price for Options Outstanding | $ 10 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price for Options Outstanding | $ 41.90 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Period for Recognition, Stock Options | 2 years 9 months 18 days | ||
Option One [Member] | After Two Years [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 Exercisable Percentage | 40.00% | ||
Option One [Member] | After Three Years [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 Exercisable Percentage | 60.00% | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 25.00% | ||
Option One [Member] | After Four Years [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 Exercisable Percentage | 80.00% | ||
Option One [Member] | After Five Years [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 Exercisable Percentage | 100.00% | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 50.00% | ||
Option One [Member] | After Ten Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 75.00% | ||
Option One [Member] | Upon Retirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 100.00% | ||
Option Two [Member] | After Two Years [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 Exercisable Percentage | 50.00% | ||
Option Two [Member] | After Three Years [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 Exercisable Percentage | 75.00% | ||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 50.00% | ||
Option Two [Member] | After Four Years [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 Exercisable Percentage | 100.00% | ||
Option Two [Member] | After Five Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 100.00% | ||
Option Three [Member] | After Two Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 50.00% | ||
Option Three [Member] | After Four Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Award Non Vesting Rights Percentage | 100.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of period | $ 35,640 | $ 37,639 |
Service cost | 833 | 926 |
Interest cost | 1,485 | 1,364 |
Actuarial (gain) loss | 7,317 | (2,633) |
Benefits paid | (1,451) | (1,656) |
Benefit obligation at end of year | 43,824 | 35,640 |
Amounts recognized in the statement of financial position consist of: | ||
Current accrued benefit liability (included in Other accrued liabilities) | (1,400) | (1,378) |
Noncurrent accrued benefit liability (included in Deferred compensation and other) | (42,424) | (34,262) |
Total | (43,824) | (35,640) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Net actuarial loss | 16,373 | 9,556 |
Prior service credit | (451) | (515) |
Total | $ 15,922 | $ 9,041 |
Employee Benefit Plans - Net pe
Employee Benefit Plans - Net periodic pension cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Net periodic pension cost: | |||
Service cost | $ 833 | $ 926 | $ 765 |
Interest cost | 1,485 | 1,364 | 1,356 |
Net amortization of prior service cost and actuarial loss | 436 | 621 | 356 |
Total | $ 2,754 | $ 2,911 | $ 2,477 |
Employee Benefit Plans - pre-ta
Employee Benefit Plans - pre-tax change in the benefit obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Employee Benefit Plans | ||
Net actuarial loss (gain) | $ 7,317 | $ (2,633) |
Amortization of the net actuarial loss | (499) | (685) |
Amortization of the prior service credit | 63 | 64 |
Total | $ 6,881 | $ (3,254) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average assumptions used to determine the benefit obligations (Details) | Dec. 26, 2019 | Dec. 27, 2018 |
Employee Benefit Plans | ||
Discount rate | 3.10% | 4.15% |
Rate of compensation increase | 4.00% | 4.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted-average assumptions used to determine net periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Employee Benefit Plans | |||
Discount rate | 4.15% | 3.60% | 4.15% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit payments expected to be paid (Details) $ in Thousands | Dec. 26, 2019USD ($) |
Employee Benefit Plans | |
2020 | $ 1,400 |
2021 | 1,709 |
2022 | 1,538 |
2023 | 1,532 |
2024 | 1,791 |
Years 2025 - 2029 | $ 12,402 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | |||
Employee Benefit Cost for All Plans | $ 5,065,000 | $ 5,117,000 | $ 4,415,000 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 11,766,000 | 6,609,000 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (12,100,000) | (6,985,000) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 451,000 | 515,000 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 37,474,000 | 30,576,000 | ||
Net actuarial loss (gain) | 7,317,000 | (2,633,000) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (499,000) | (685,000) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 63,000 | 64,000 | ||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax | $ 16,373,000 | 9,556,000 | ||
Description Of Defined Contribution Pension And Other Postretirement Plans | The 401(k) plan provides a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. | |||
Employee Benefit Plan Prior 2017 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1.00% | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | $ 334,000 | $ 376,000 | ||
Forecast [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | $ (64,000) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 990,000 | |||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax | $ (1,054,000) | |||
Common Stock [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Description Of Defined Contribution Pension And Other Postretirement Plans | During fiscal 2019 and fiscal 2018, the first 2% of the matching contribution was made with the Company's common stock. During fiscal 2017, the 1% and discretionary contributions were made with the Company's common stock. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Noncurrent deferred income tax (liabilities) assets: | ||
Accrued employee benefits | $ 15,145 | $ 13,381 |
Depreciation and amortization | (69,100) | (59,296) |
Operating lease assets | (62,339) | |
Operating lease liabilities | 62,750 | |
Other | 5,282 | 3,938 |
Net deferred tax liability | $ (48,262) | $ (41,977) |
Income Taxes - Income tax expen
Income Taxes - Income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Current: | |||
Federal | $ 1,187 | $ 7,022 | $ 8,707 |
State | 2,041 | 3,181 | 1,558 |
Deferred: | |||
Federal | 9,228 | 2,815 | (7,155) |
State | (136) | 109 | 515 |
Income Tax Expense (Benefit), Total | $ 12,320 | $ 13,127 | $ 3,625 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the federal statutory tax rate (Details) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Effective Income Tax Rate Reconciliation, Percent | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
Tax benefit from Tax Cuts and Jobs Act of 2017 | 0.00% | (2.90%) | (30.90%) |
State income taxes, net of federal income tax benefit | 5.50% | 6.10% | 4.80% |
Tax credits, net of federal income tax benefit | (2.70%) | (1.10%) | (0.80%) |
Other | (1.10%) | (3.40%) | (2.80%) |
Reconciliation, Total | 22.70% | 19.70% | 5.30% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Taxes | |||
Balance at beginning of year | $ 0 | $ 102 | $ 414 |
Increases due to: | |||
Tax positions taken in prior years | 0 | 0 | 0 |
Tax positions taken in current year | 0 | 0 | 0 |
Decreases due to: | |||
Tax positions taken in prior years | 0 | 0 | 0 |
Settlements with taxing authorities | 0 | (102) | 0 |
Lapse of applicable statute of limitations | 0 | 0 | (312) |
Balance at end of year | $ 0 | $ 0 | $ 102 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Taxes | |||
Description of Impact of the Tax Cuts and Jobs Act of 2017 | Reduction in the corporate tax rate and the provisions related to executive compensation and 100% bonus depreciation on qualifying property | ||
Effective Income Tax Rate, Adjusted For Earnings From Noncontrolling Interests | 22.70% | 19.70% | 5.30% |
Effective Income Tax Rate Excluding Tax Credit | 22.70% | 36.20% | |
Income Tax Credits and Adjustments | $ 1,947,000 | $ 21,240,000 | |
Income Tax Examination Interest Income | $ 1,000 | 68,000 | |
Income Tax Examination, Interest Expense | 50,000 | ||
Proceeds from Income Tax Paid (Refunds) | 3,062,000 | $ (218,000) | 23,691,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 67,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 |
Commitments and License Rights
Commitments and License Rights - Additional Information (Details) | Dec. 26, 2019USD ($) |
Commitments and License Rights | |
Commitments To Complete Contracts In Process Value | $ 2,243,000 |
Joint Venture Transactions (Det
Joint Venture Transactions (Details) - USD ($) | Dec. 26, 2019 | Dec. 27, 2018 |
Corporate Joint Venture [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investments | $ 3,593,000 | $ 4,069,000 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 206,862 | $ 211,462 | $ 232,500 | $ 170,039 | $ 175,032 | $ 170,599 | $ 193,298 | $ 168,191 | $ 820,863 | $ 707,120 | $ 653,552 |
Operating income (loss) | 13,379 | $ 22,387 | $ 27,475 | $ 4,950 | 14,653 | $ 22,413 | $ 29,107 | $ 17,016 | 68,191 | 83,189 | 77,307 |
Depreciation and amortization | 72,277 | 61,342 | 51,719 | ||||||||
Assets | 1,359,186 | 989,331 | 1,359,186 | 989,331 | 1,017,797 | ||||||
Capital expenditures and acquisitions | 94,167 | 58,660 | 94,167 | 58,660 | 114,804 | ||||||
Theatres [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 557,080 | 446,804 | 403,431 | ||||||||
Operating income (loss) | 76,903 | 88,790 | 80,447 | ||||||||
Depreciation and amortization | 51,202 | 38,760 | 33,448 | ||||||||
Assets | 953,299 | 624,512 | 953,299 | 624,512 | 637,723 | ||||||
Capital expenditures and acquisitions | 61,604 | 43,568 | 61,604 | 43,568 | 93,676 | ||||||
Hotels/Resorts [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 263,350 | 259,892 | 249,564 | ||||||||
Operating income (loss) | 10,050 | 12,480 | 12,895 | ||||||||
Depreciation and amortization | 20,430 | 22,229 | 17,912 | ||||||||
Assets | 337,206 | 306,162 | 337,206 | 306,162 | 313,942 | ||||||
Capital expenditures and acquisitions | 31,783 | 14,931 | 31,783 | 14,931 | 20,604 | ||||||
Corporate Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 433 | 424 | 557 | ||||||||
Operating income (loss) | (18,762) | (18,081) | (16,035) | ||||||||
Depreciation and amortization | 645 | 353 | 359 | ||||||||
Assets | 68,681 | 58,657 | 68,681 | 58,657 | 66,132 | ||||||
Capital expenditures and acquisitions | $ 780 | $ 161 | $ 780 | $ 161 | $ 524 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Unaudited Quarterly Financial Information | |||||||||||
Revenues | $ 206,862 | $ 211,462 | $ 232,500 | $ 170,039 | $ 175,032 | $ 170,599 | $ 193,298 | $ 168,191 | $ 820,863 | $ 707,120 | $ 653,552 |
Operating income | 13,379 | 22,387 | 27,475 | 4,950 | 14,653 | 22,413 | 29,107 | 17,016 | 68,191 | 83,189 | 77,307 |
Net earnings attributable to The Marcus Corporation | $ 7,802 | $ 14,289 | $ 18,066 | $ 1,860 | $ 8,720 | $ 16,231 | $ 18,619 | $ 9,821 | $ 42,017 | $ 53,391 | $ 64,996 |
Net earnings per common share - diluted | $ 0.25 | $ 0.46 | $ 0.58 | $ 0.06 | $ 0.30 | $ 0.56 | $ 0.65 | $ 0.35 |