2017 | 2016 | 2015 | ||||||||||
Advertising expense | $ | 83,623 | $ | 79,409 | $ | 68,665 |
15. | Commitments and Contingencies |
5. | Debt |
6. | Derivative Instruments and Hedging Activities |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
March 18, 2013 | May 3, 2015 | 3 | $ | 50,000 | 1.51 | % | |||||||
April 22, 2013 | May 3, 2015 | 3 | 25,000 | 1.30 | % | ||||||||
April 25, 2013 | May 3, 2015 | 3 | 25,000 | 1.29 | % | ||||||||
June 18, 2014 | May 3, 2015 | 4 | 120,000 | 2.51 | % | ||||||||
June 24, 2014 | May 3, 2015 | 4 | 90,000 | 2.51 | % | ||||||||
July 1, 2014 | May 5, 2015 | 4 | 90,000 | 2.43 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 80,000 | 2.15 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 60,000 | 2.16 | % | ||||||||
January 30, 2015 | May 4, 2021 | 3 | 120,000 | 2.41 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 60,000 | 2.15 | % | ||||||||
January 30, 2015 | May 4, 2021 | 3 | 80,000 | 2.40 | % |
(See Note 3) | Balance Sheet Location | July 28, 2017 | July 29, 2016 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | 32 | $ | -- | ||||
Interest rate swaps | Other current liabilities | $ | 47 | $ | 180 | ||||
Interest rate swaps | Long-term interest rate swap liability | 6,833 | 22,070 | ||||||
Total liabilities | $ | 6,880 | $ | 22,250 |
Amount of Income (Loss) Recognized in AOCL on Derivatives (Effective Portion) | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | 15,402 | $ | (16,188 | ) | $ | 1,641 |
July 28, 2017 | July 29, 2016 | July 31, 2015 | ||||||||||
Beginning AOCL balance | $ | (13,740 | ) | $ | (3,725 | ) | $ | (4,733 | ) | |||
Other comprehensive income (loss) before reclassifications | 12,082 | (6,683 | ) | 5,955 | ||||||||
Amounts reclassified from AOCL into earnings | (2,571 | ) | (3,332 | ) | (4,947 | ) | ||||||
Other comprehensive income (loss), net of tax | 9,511 | (10,015 | ) | 1,008 | ||||||||
Ending AOCL balance | $ | (4,229 | ) | $ | (13,740 | ) | $ | (3,725 | ) |
Location of Loss Reclassified from AOCL into Income (Effective Portion) | Amount of Loss Reclassified from AOCL into Income (Effective Portion) | ||||||||||||
2017 | 2016 | 2015 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | 4,163 | $ | 5,395 | $ | 8,052 |
| Details about AOCL | July 28, 2017 | July 29, 2016 | July 31, 2015 | Affected Line Item in the Consolidated Statement of Income | ||||||||||
Loss on cash flow hedges: | ||||||||||||||
Interest rate swaps | $ | (4,163 | ) | $ | (5,395 | ) | $ | (8,052 | ) | Interest expense | ||||
Tax benefit | 1,592 | 2,063 | 3,105 | Provision for income taxes | ||||||||||
$ | (2,571 | ) | $ | (3,332 | ) | $ | (4,947 | ) | Net of tax |
10. | Share-Based Compensation |
2010 Omnibus Plan | 131,575 | |||
2002 Omnibus Incentive Compensation Plan | 4,000 | |||
Total | 135,575 |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | ||||
2017 LTPP | 2017 – 2018 | 2 or 3 | ||||
2016 LTPP | 2016 – 2017 | 2 or 3 |
2017 LTPP | 13,704 | |||
2016 LTPP | 28,797 |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at July 29, 2016 | 40,437 | $ | 112.52 | |||||
Granted | 94,432 | 154.63 | ||||||
Vested | (102,852 | ) | 142.93 | |||||
Forfeited | -- | -- | ||||||
Unvested at July 28, 2017 | 32,017 | $ | 139.04 |
2017 | 2016 | 2015 | ||||||||||
Total fair value of nonvested stock | $ | 14,700 | $ | 8,418 | $ | 8,152 |
| · | The expected volatilities are the historical volatilities of the Company’s stock and the members of the peer group over the period commensurate with the three-year performance period. |
| · | The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period. The risk-free rates for the nonvested stock units granted in 2017 ranged from 1.0% to 1.4%. |
| · | The expected dividend yield is assumed to be zero since the award holders are entitled to any dividends paid over the performance period. |
| · | The expected volatility is a blend of implied volatility based on market-traded options on the Company’s stock and historical volatility of our stock over the period commensurate with the three-year performance period. |
| · | The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period. |
| · | The expected dividend yield is assumed to be zero since the award holders are entitled to any dividends paid over the performance period. |
Year Ended | ||||||||
July 29, 2016 | July 31, 2015 | |||||||
Dividend yield*** | -- | -- | ||||||
Expected volatility | 23% - 24 | % | 21 | % | ||||
Risk-free interest rate range | 0.9% - 1.0 | % | 1.0 | % |
Shares | ||||
2015 MSU Grants | 39,467 | |||
2016 MSU Grants | 14,565 |
Fixed Options | Shares | Weighted- Average Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||
Outstanding at July 29, 2016 | 12,683 | $ | 32.71 | |||||||||||||
Granted | -- | -- | ||||||||||||||
Exercised | (8,683 | ) | 32.64 | |||||||||||||
Forfeited | -- | -- | ||||||||||||||
Canceled | -- | -- | ||||||||||||||
Outstanding at July 28, 2017 | 4,000 | $ | 32.86 | 0.33 | $ | 490 | ||||||||||
Exercisable | 4,000 | $ | 32.86 | 0.33 | $ | 490 |
2017 | 2016 | 2015 | ||||||||||
Total intrinsic values of options exercised* | $ | 1,070 | $ | 917 | $ | 4,652 |
2017 | 2016 | 2015 | ||||||||||
Nonvested stock awards and units | $ | 6,654 | $ | 10,277 | $ | 13,243 | ||||||
MSU Grants | 1,804 | 2,925 | 2,967 | |||||||||
Total compensation expense | $ | 8,458 | $ | 13,202 | $ | 16,210 |
Nonvested Stock Awards | Nonvested Stock Units | MSU Grants | ||||||||||
Total unrecognized compensation | $ | 2,692 | $ | 770 | $ | 862 | ||||||
Weighted-average period in years | 2.12 | 2.01 | 1.02 |
2017 | 2016 | 2015 | ||||||||||
Total income tax benefit | $ | 2,740 | $ | 3,819 | $ | 5,056 |
14. | Net Income Per Share and Weighted Average Shares |
2017 | 2016 | 2015 | ||||||||||
Net income per share numerator | $ | 201,899 | $ | 189,299 | $ | 163,903 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,031,810 | 23,945,041 | 23,918,368 | |||||||||
Add potential dilution: | ||||||||||||
Stock options, nonvested stock awards and MSU Grants | 86,478 | 129,232 | 130,556 | |||||||||
Diluted weighted average shares outstanding | 24,118,288 | 24,074,273 | 24,048,924 |
3. | Fair Value Measurements |
| · | Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market. |
| · | Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. |
| · | Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability. |
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Cash equivalents* | $ | 82,524 | $ | -- | $ | -- | $ | 82,524 | ||||||||
Interest rate swap asset (see Note 6) | -- | 32 | -- | 32 | ||||||||||||
Deferred compensation plan assets** | 31,196 | -- | -- | 31,196 | ||||||||||||
Total assets at fair value | $ | 113,720 | $ | 32 | $ | -- | $ | 113,752 | ||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | 6,880 | $ | -- | $ | 6,880 | ||||||||
Total liabilities at fair value | $ | -- | $ | 6,880 | $ | -- | $ | 6,880 |
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Cash equivalents* | $ | 76,084 | $ | -- | $ | -- | $ | 76,084 | ||||||||
Interest rate swap asset (see Note 6) | -- | -- | -- | -- | ||||||||||||
Deferred compensation plan assets** | 27,764 | -- | -- | 27,764 | ||||||||||||
Total assets at fair value | $ | 103,848 | $ | -- | $ | -- | $ | 103,848 | ||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | 22,250 | $ | -- | $ | 22,250 | ||||||||
Total liabilities at fair value | $ | -- | $ | 22,250 | $ | -- | $ | 22,250 |
| · | Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market. |
| · | Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. |
| · | Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability. |
13. | Income Taxes |
2017 | 2016 | 2015 | ||||||||||
Current: | ||||||||||||
Federal | $ | 83,743 | $ | 62,054 | $ | 71,386 | ||||||
State | 7,567 | 6,447 | 6,050 | |||||||||
Deferred: | ||||||||||||
Federal | 4,696 | 12,477 | (6,178 | ) | ||||||||
State | 982 | (3,858 | ) | 3,040 | ||||||||
Total provision for income taxes | $ | 96,988 | $ | 77,120 | $ | 74,298 |
2017 | 2016 | 2015 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 104,611 | $ | 93,247 | $ | 83,370 | ||||||
State and local income taxes, net of federal benefit | 5,856 | 1,427 | 6,378 | |||||||||
Employer tax credits for FICA taxes paid on employee tip income | (11,543 | ) | (11,048 | ) | (10,681 | ) | ||||||
Other employer tax credits | (2,814 | ) | (7,326 | ) | (5,058 | ) | ||||||
Other-net | 878 | 820 | 289 | |||||||||
Total provision for income taxes | $ | 96,988 | $ | 77,120 | $ | 74,298 |
July 28, 2017 | July 29, 2016 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 10,110 | $ | 13,937 | ||||
Deferred rent | 18,270 | 17,183 | ||||||
Accrued liabilities | 13,233 | 12,466 | ||||||
Insurance reserves | 12,401 | 11,444 | ||||||
Inventory | 4,411 | 4,368 | ||||||
Other | 2,767 | 8,718 | ||||||
Deferred tax assets | $ | 61,192 | $ | 68,116 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 100,373 | $ | 97,695 | ||||
Inventory | 10,906 | 9,803 | ||||||
Other | 12,273 | 12,024 | ||||||
Deferred tax liabilities | 123,552 | 119,522 | ||||||
Net deferred tax liability | $ | 62,360 | $ | 51,406 |
July 28, 2017 | July 29, 2016 | July 31, 2015 | ||||||||||
Balance at beginning of year | $ | 21,899 | $ | 25,507 | $ | 22,832 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 4,003 | 4,860 | 3,994 | |||||||||
Reductions | -- | -- | -- | |||||||||
Tax positions related to the prior year: | ||||||||||||
Additions | 582 | 2,186 | 118 | |||||||||
Reductions | (2,966 | ) | (6,896 | ) | (227 | ) | ||||||
Settlements | (1,027 | ) | (2,324 | ) | (204 | ) | ||||||
Expiration of statute of limitations | (1,760 | ) | (1,434 | ) | (1,006 | ) | ||||||
Balance at end of year | $ | 20,731 | $ | 21,899 | $ | 25,507 |
2017 | 2016 | 2015 | ||||||||||
Uncertain tax positions | $ | 13,475 | $ | 14,234 | $ | 16,579 |
4. | Inventories |
July 28, 2017 | July 29, 2016 | |||||||
Retail | $ | 119,446 | $ | 114,610 | ||||
Restaurant | 20,252 | 21,522 | ||||||
Supplies | 16,669 | 16,176 | ||||||
Total | $ | 156,367 | $ | 152,308 |
9. | Leases |
Year | Minimum | Contingent | Total | |||||||||
2017 | $ | 75,000 | $ | 252 | $ | 75,252 | ||||||
2016 | 74,405 | 263 | 74,668 | |||||||||
2015 | 72,877 | 252 | 73,129 |
Year | Total | |||
2018 | $ | 65,253 | ||
2019 | 53,102 | |||
2020 | 48,298 | |||
2021 | 29,993 | |||
2022 | 30,372 | |||
Later years | 480,140 | |||
Total | $ | 707,158 |
1. | Description of the Business |
Year | Minimum | Contingent | Total | |||||||||
2017 | $ | 75,000 | $ | 252 | $ | 75,252 | ||||||
2016 | 74,405 | 263 | 74,668 | |||||||||
2015 | 72,877 | 252 | 73,129 |
12. | Employee Savings Plans |
2017 | 2016 | 2015 | ||||||||||
401(k) Savings Plan | $ | 2,501 | $ | 2,528 | $ | 2,364 | ||||||
Non-Qualified Savings Plan | 291 | 296 | 234 |
Years | ||||
Buildings and improvements | 30-45 | |||
Buildings under capital leases | 15-25 | |||
Restaurant and other equipment | 2-10 | |||
Leasehold improvements | 1-35 |
2017 | 2016 | 2015 | ||||||||||
Total depreciation expense | $ | 85,912 | $ | 77,816 | $ | 72,390 | ||||||
Depreciation expense related to store operations* | 79,214 | 71,382 | 66,754 |
Years | ||||
Buildings and improvements | 30-45 | |||
Buildings under capital leases | 15-25 | |||
Restaurant and other equipment | 2-10 | |||
Leasehold improvements | 1-35 |
16. | Quarterly Financial Data (Unaudited) |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2017 | ||||||||||||||||
Total revenue | $ | 709,971 | $ | 772,682 | $ | 700,410 | $ | 743,226 | ||||||||
Store operating income | 109,832 | 117,513 | 107,478 | 119,749 | ||||||||||||
Income before income taxes | 72,068 | 79,058 | 68,089 | 79,672 | ||||||||||||
Net income | 48,355 | 52,727 | 46,924 | 53,893 | ||||||||||||
Net income per share – basic | 2.01 | 2.19 | 1.95 | 2.24 | ||||||||||||
Net income per share – diluted | 2.01 | 2.19 | 1.95 | 2.23 | ||||||||||||
2016 | ||||||||||||||||
Total revenue | $ | 702,629 | $ | 764,002 | $ | 700,136 | $ | 745,584 | ||||||||
Store operating income | 99,627 | 106,032 | 103,419 | 114,375 | ||||||||||||
Income before income taxes | 61,764 | 66,956 | 63,592 | 74,107 | ||||||||||||
Net income | 40,865 | 48,242 | 49,169 | 51,023 | ||||||||||||
Net income per share – basic | 1.71 | 2.02 | 2.05 | 2.13 | ||||||||||||
Net income per share – diluted | 1.70 | 2.01 | 2.04 | 2.12 |
Location of Loss Reclassified from AOCL into Income (Effective Portion) | Amount of Loss Reclassified from AOCL into Income (Effective Portion) | ||||||||||||
2017 | 2016 | 2015 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | 4,163 | $ | 5,395 | $ | 8,052 |
| Details about AOCL | July 28, 2017 | July 29, 2016 | July 31, 2015 | Affected Line Item in the Consolidated Statement of Income | ||||||||||
Loss on cash flow hedges: | ||||||||||||||
Interest rate swaps | $ | (4,163 | ) | $ | (5,395 | ) | $ | (8,052 | ) | Interest expense | ||||
Tax benefit | 1,592 | 2,063 | 3,105 | Provision for income taxes | ||||||||||
$ | (2,571 | ) | $ | (3,332 | ) | $ | (4,947 | ) | Net of tax |
2017 | 2016 | 2015 | ||||||||||
Total intrinsic values of options exercised* | $ | 1,070 | $ | 917 | $ | 4,652 |
July 28, 2017 | July 29, 2016 | |||||||
Retail | $ | 119,446 | $ | 114,610 | ||||
Restaurant | 20,252 | 21,522 | ||||||
Supplies | 16,669 | 16,176 | ||||||
Total | $ | 156,367 | $ | 152,308 |
2017 | 2016 | 2015 | ||||||||||
Nonvested stock awards and units | $ | 6,654 | $ | 10,277 | $ | 13,243 | ||||||
MSU Grants | 1,804 | 2,925 | 2,967 | |||||||||
Total compensation expense | $ | 8,458 | $ | 13,202 | $ | 16,210 |
2017 | 2016 | 2015 | ||||||||||
Current: | ||||||||||||
Federal | $ | 83,743 | $ | 62,054 | $ | 71,386 | ||||||
State | 7,567 | 6,447 | 6,050 | |||||||||
Deferred: | ||||||||||||
Federal | 4,696 | 12,477 | (6,178 | ) | ||||||||
State | 982 | (3,858 | ) | 3,040 | ||||||||
Total provision for income taxes | $ | 96,988 | $ | 77,120 | $ | 74,298 |
July 28, 2017 | July 29, 2016 | July 31, 2015 | ||||||||||
Beginning AOCL balance | $ | (13,740 | ) | $ | (3,725 | ) | $ | (4,733 | ) | |||
Other comprehensive income (loss) before reclassifications | 12,082 | (6,683 | ) | 5,955 | ||||||||
Amounts reclassified from AOCL into earnings | (2,571 | ) | (3,332 | ) | (4,947 | ) | ||||||
Other comprehensive income (loss), net of tax | 9,511 | (10,015 | ) | 1,008 | ||||||||
Ending AOCL balance | $ | (4,229 | ) | $ | (13,740 | ) | $ | (3,725 | ) |
July 28, 2017 | July 29, 2016 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 10,110 | $ | 13,937 | ||||
Deferred rent | 18,270 | 17,183 | ||||||
Accrued liabilities | 13,233 | 12,466 | ||||||
Insurance reserves | 12,401 | 11,444 | ||||||
Inventory | 4,411 | 4,368 | ||||||
Other | 2,767 | 8,718 | ||||||
Deferred tax assets | $ | 61,192 | $ | 68,116 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 100,373 | $ | 97,695 | ||||
Inventory | 10,906 | 9,803 | ||||||
Other | 12,273 | 12,024 | ||||||
Deferred tax liabilities | 123,552 | 119,522 | ||||||
Net deferred tax liability | $ | 62,360 | $ | 51,406 |
Fixed Options | Shares | Weighted- Average Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||
Outstanding at July 29, 2016 | 12,683 | $ | 32.71 | |||||||||||||
Granted | -- | -- | ||||||||||||||
Exercised | (8,683 | ) | 32.64 | |||||||||||||
Forfeited | -- | -- | ||||||||||||||
Canceled | -- | -- | ||||||||||||||
Outstanding at July 28, 2017 | 4,000 | $ | 32.86 | 0.33 | $ | 490 | ||||||||||
Exercisable | 4,000 | $ | 32.86 | 0.33 | $ | 490 |
2017 | 2016 | 2015 | ||||||||||
Net income per share numerator | $ | 201,899 | $ | 189,299 | $ | 163,903 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,031,810 | 23,945,041 | 23,918,368 | |||||||||
Add potential dilution: | ||||||||||||
Stock options, nonvested stock awards and MSU Grants | 86,478 | 129,232 | 130,556 | |||||||||
Diluted weighted average shares outstanding | 24,118,288 | 24,074,273 | 24,048,924 |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at July 29, 2016 | 40,437 | $ | 112.52 | |||||
Granted | 94,432 | 154.63 | ||||||
Vested | (102,852 | ) | 142.93 | |||||
Forfeited | -- | -- | ||||||
Unvested at July 28, 2017 | 32,017 | $ | 139.04 |
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Cash equivalents* | $ | 82,524 | $ | -- | $ | -- | $ | 82,524 | ||||||||
Interest rate swap asset (see Note 6) | -- | 32 | -- | 32 | ||||||||||||
Deferred compensation plan assets** | 31,196 | -- | -- | 31,196 | ||||||||||||
Total assets at fair value | $ | 113,720 | $ | 32 | $ | -- | $ | 113,752 | ||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | 6,880 | $ | -- | $ | 6,880 | ||||||||
Total liabilities at fair value | $ | -- | $ | 6,880 | $ | -- | $ | 6,880 |
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Cash equivalents* | $ | 76,084 | $ | -- | $ | -- | $ | 76,084 | ||||||||
Interest rate swap asset (see Note 6) | -- | -- | -- | -- | ||||||||||||
Deferred compensation plan assets** | 27,764 | -- | -- | 27,764 | ||||||||||||
Total assets at fair value | $ | 103,848 | $ | -- | $ | -- | $ | 103,848 | ||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | 22,250 | $ | -- | $ | 22,250 | ||||||||
Total liabilities at fair value | $ | -- | $ | 22,250 | $ | -- | $ | 22,250 |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2017 | ||||||||||||||||
Total revenue | $ | 709,971 | $ | 772,682 | $ | 700,410 | $ | 743,226 | ||||||||
Store operating income | 109,832 | 117,513 | 107,478 | 119,749 | ||||||||||||
Income before income taxes | 72,068 | 79,058 | 68,089 | 79,672 | ||||||||||||
Net income | 48,355 | 52,727 | 46,924 | 53,893 | ||||||||||||
Net income per share – basic | 2.01 | 2.19 | 1.95 | 2.24 | ||||||||||||
Net income per share – diluted | 2.01 | 2.19 | 1.95 | 2.23 | ||||||||||||
2016 | ||||||||||||||||
Total revenue | $ | 702,629 | $ | 764,002 | $ | 700,136 | $ | 745,584 | ||||||||
Store operating income | 99,627 | 106,032 | 103,419 | 114,375 | ||||||||||||
Income before income taxes | 61,764 | 66,956 | 63,592 | 74,107 | ||||||||||||
Net income | 40,865 | 48,242 | 49,169 | 51,023 | ||||||||||||
Net income per share – basic | 1.71 | 2.02 | 2.05 | 2.13 | ||||||||||||
Net income per share – diluted | 1.70 | 2.01 | 2.04 | 2.12 |
Year | Total | |||
2018 | $ | 65,253 | ||
2019 | 53,102 | |||
2020 | 48,298 | |||
2021 | 29,993 | |||
2022 | 30,372 | |||
Later years | 480,140 | |||
Total | $ | 707,158 |
2017 | 2016 | 2015 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 104,611 | $ | 93,247 | $ | 83,370 | ||||||
State and local income taxes, net of federal benefit | 5,856 | 1,427 | 6,378 | |||||||||
Employer tax credits for FICA taxes paid on employee tip income | (11,543 | ) | (11,048 | ) | (10,681 | ) | ||||||
Other employer tax credits | (2,814 | ) | (7,326 | ) | (5,058 | ) | ||||||
Other-net | 878 | 820 | 289 | |||||||||
Total provision for income taxes | $ | 96,988 | $ | 77,120 | $ | 74,298 |
Nonvested Stock Awards | Nonvested Stock Units | MSU Grants | ||||||||||
Total unrecognized compensation | $ | 2,692 | $ | 770 | $ | 862 | ||||||
Weighted-average period in years | 2.12 | 2.01 | 1.02 |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
March 18, 2013 | May 3, 2015 | 3 | $ | 50,000 | 1.51 | % | |||||||
April 22, 2013 | May 3, 2015 | 3 | 25,000 | 1.30 | % | ||||||||
April 25, 2013 | May 3, 2015 | 3 | 25,000 | 1.29 | % | ||||||||
June 18, 2014 | May 3, 2015 | 4 | 120,000 | 2.51 | % | ||||||||
June 24, 2014 | May 3, 2015 | 4 | 90,000 | 2.51 | % | ||||||||
July 1, 2014 | May 5, 2015 | 4 | 90,000 | 2.43 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 80,000 | 2.15 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 60,000 | 2.16 | % | ||||||||
January 30, 2015 | May 4, 2021 | 3 | 120,000 | 2.41 | % | ||||||||
January 30, 2015 | May 3, 2019 | 2 | 60,000 | 2.15 | % | ||||||||
January 30, 2015 | May 4, 2021 | 3 | 80,000 | 2.40 | % |
2017 | 2016 | 2015 | ||||||||||
Restaurant | $ | 2,351,212 | $ | 2,323,199 | $ | 2,269,610 | ||||||
Retail | 575,077 | 589,152 | 572,674 | |||||||||
Total revenue | $ | 2,926,289 | $ | 2,912,351 | $ | 2,842,284 |
(See Note 3) | Balance Sheet Location | July 28, 2017 | July 29, 2016 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | 32 | $ | -- | ||||
Interest rate swaps | Other current liabilities | $ | 47 | $ | 180 | ||||
Interest rate swaps | Long-term interest rate swap liability | 6,833 | 22,070 | ||||||
Total liabilities | $ | 6,880 | $ | 22,250 |
Amount of Income (Loss) Recognized in AOCL on Derivatives (Effective Portion) | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | 15,402 | $ | (16,188 | ) | $ | 1,641 |
8. | Segment Information |
2017 | 2016 | 2015 | ||||||||||
Restaurant | $ | 2,351,212 | $ | 2,323,199 | $ | 2,269,610 | ||||||
Retail | 575,077 | 589,152 | 572,674 | |||||||||
Total revenue | $ | 2,926,289 | $ | 2,912,351 | $ | 2,842,284 |
2. | Summary of Significant Accounting Policies |
Years | ||||
Buildings and improvements | 30-45 | |||
Buildings under capital leases | 15-25 | |||
Restaurant and other equipment | 2-10 | |||
Leasehold improvements | 1-35 |
2017 | 2016 | 2015 | ||||||||||
Total depreciation expense | $ | 85,912 | $ | 77,816 | $ | 72,390 | ||||||
Depreciation expense related to store operations* | 79,214 | 71,382 | 66,754 |
2017 | 2016 | 2015 | ||||||||||
Advertising expense | $ | 83,623 | $ | 79,409 | $ | 68,665 |
July 28, 2017 | July 29, 2016 | July 31, 2015 | ||||||||||
Balance at beginning of year | $ | 21,899 | $ | 25,507 | $ | 22,832 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 4,003 | 4,860 | 3,994 | |||||||||
Reductions | -- | -- | -- | |||||||||
Tax positions related to the prior year: | ||||||||||||
Additions | 582 | 2,186 | 118 | |||||||||
Reductions | (2,966 | ) | (6,896 | ) | (227 | ) | ||||||
Settlements | (1,027 | ) | (2,324 | ) | (204 | ) | ||||||
Expiration of statute of limitations | (1,760 | ) | (1,434 | ) | (1,006 | ) | ||||||
Balance at end of year | $ | 20,731 | $ | 21,899 | $ | 25,507 |
11. | Shareholder Rights Plan |
| · | will not be redeemable. |
| · | will entitle holders to quarterly dividend payments of $0.01 per share, or an amount equal to the dividend paid on one share of common stock, whichever is greater. |
| · | will entitle holders upon liquidation either to receive $1.00 per share or an amount equal to the payment made on one share of common stock, whichever is greater. |
| · | will have the same voting power as one share of common stock. |
| · | if shares of the Company’s common stock are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of common stock. |
2017 | 2016 | 2015 | ||||||||||
Advertising expense | $ | 83,623 | $ | 79,409 | $ | 68,665 |
2017 | 2016 | 2015 | ||||||||||
Total depreciation expense | $ | 85,912 | $ | 77,816 | $ | 72,390 | ||||||
Depreciation expense related to store operations* | 79,214 | 71,382 | 66,754 |
7. | Share Repurchases |
2017 | 2016 | 2015 | ||||||||||
401(k) Savings Plan | $ | 2,501 | $ | 2,528 | $ | 2,364 | ||||||
Non-Qualified Savings Plan | 291 | 296 | 234 |
2017 | 2016 | 2015 | ||||||||||
Total fair value of nonvested stock | $ | 14,700 | $ | 8,418 | $ | 8,152 |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | ||||
2017 LTPP | 2017 – 2018 | 2 or 3 | ||||
2016 LTPP | 2016 – 2017 | 2 or 3 |
2017 | 2016 | 2015 | ||||||||||
Total income tax benefit | $ | 2,740 | $ | 3,819 | $ | 5,056 |
2017 LTPP | 13,704 | |||
2016 LTPP | 28,797 |
Year Ended | ||||||||
July 29, 2016 | July 31, 2015 | |||||||
Dividend yield*** | -- | -- | ||||||
Expected volatility | 23% - 24 | % | 21 | % | ||||
Risk-free interest rate range | 0.9% - 1.0 | % | 1.0 | % |
Shares | ||||
2015 MSU Grants | 39,467 | |||
2016 MSU Grants | 14,565 |
2010 Omnibus Plan | 131,575 | |||
2002 Omnibus Incentive Compensation Plan | 4,000 | |||
Total | 135,575 |
2017 | 2016 | 2015 | ||||||||||
Uncertain tax positions | $ | 13,475 | $ | 14,234 | $ | 16,579 |