2018 | 2017 | 2016 | ||||||||||
Advertising expense | $ | 83,448 | $ | 83,623 | $ | 79,409 |
15. | Commitments and Contingencies |
5. | Debt |
2018 | 2017 | 2016 | ||||||||||
401(k) Savings Plan | $ | 3,812 | $ | 2,501 | $ | 2,528 | ||||||
Non-Qualified Savings Plan | 342 | 291 | 296 |
6. | Derivative Instruments and Hedging Activities |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
June 18, 2014 | May 3, 2015 | 4 | $ | 160,000 | 2.51 | % | |||||||
June 24, 2014 | May 3, 2015 | 4 | 120,000 | 2.51 | % | ||||||||
July 1, 2014 | May 5, 2015 | 4 | 120,000 | 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 | August 3, 2018 | July 28, 2017 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | 169 | $ | 32 | ||||
Interest rate swaps | Other assets | 6,086 | -- | ||||||
Total assets | $ | 6,255 | $ | 32 | |||||
Interest rate swaps | Other current liabilities | $ | -- | $ | 47 | ||||
Interest rate swaps | Long-term interest rate swap liability | -- | 6,833 | ||||||
Total liabilities | $ | -- | $ | 6,880 |
Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion) | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | 13,103 | $ | 15,402 | $ | (16,188 | ) |
August 3, 2018 | July 28, 2017 | July 29, 2016 | ||||||||||
Beginning AOCIL balance | $ | (4,229 | ) | $ | (13,740 | ) | $ | (3,725 | ) | |||
Other comprehensive income (loss) before reclassifications | 11,274 | 12,082 | (6,683 | ) | ||||||||
Amounts reclassified from AOCIL into earnings | (2,360 | ) | (2,571 | ) | (3,332 | ) | ||||||
Other comprehensive income (loss), net of tax | 8,914 | 9,511 | (10,015 | ) | ||||||||
Ending AOCIL balance | $ | 4,685 | $ | (4,229 | ) | $ | (13,740 | ) |
Location of Loss Reclassified from AOCIL into Income (Effective Portion) | Amount of Loss Reclassified from AOCIL into Income (Effective Portion) | ||||||||||||
2018 | 2017 | 2016 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | 3,398 | $ | 4,163 | $ | 5,395 |
| Details about AOCIL | August 3, 2018 | July 28, 2017 | July 29, 2016 | Affected Line Item in the Consolidated Statement of Income | |||||||||
Loss on cash flow hedges: | |||||||||||||
Interest rate swaps | $ | (3,398 | ) | $ | (4,163 | ) | $ | (5,395 | ) | Interest expense | |||
Tax benefit | 1,038 | 1,592 | 2,063 | Provision for income taxes | |||||||||
$ | (2,360 | ) | $ | (2,571 | ) | $ | (3,332 | ) | Net of tax |
10. | Share-Based Compensation |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | |||
2018 LTPP | 2018 – 2019 | 2 or 3 | |||
2017 LTPP | 2017 – 2018 | 2 or 3 |
2018 LTPP | 8,892 | |||
2017 LTPP | 23,511 |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at July 28, 2017 | 32,017 | $ | 139.04 | |||||
Granted | 51,406 | 154.28 | ||||||
Vested | (38,889 | ) | 153.66 | |||||
Forfeited | (2,776 | ) | 145.92 | |||||
Unvested at August 3, 2018 | 41,758 | $ | 143.73 |
2018 | 2017 | 2016 | ||||||||||
Total fair value of nonvested stock | $ | 5,976 | $ | 14,700 | $ | 8,418 |
| · | 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 risk-free interest rate for the nonvested stock units granted in 2018 was 1.6%. |
| · | The expected dividend yield is assumed to be zero since the award holders are entitled to any dividends paid over the performance period. |
Shares | ||||
2018 rTSR RSUs | 3,368 | |||
2017 rTSR RSUs | 5,676 |
| · | The expected volatility was 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 expected volatility for the 2016 MSU Grants ranged from 23% to 24%. |
| · | The risk-free interest rate was based on the U.S. Treasury rate assumption commensurate with the three-year performance period. The risk-free rates for the 2016 MSU Grants ranged from 0.9% to 1.0%. |
| · | The expected dividend yield was assumed to be zero since the award holders are entitled to any dividends paid over the performance period. |
Fixed Options | Shares | Weighted- Average Price | ||||||
Outstanding at July 28, 2017 | 4,000 | $ | 32.86 | |||||
Exercised | (4,000 | ) | 32.86 | |||||
Outstanding at August 3, 2018 | -- | -- |
2018 | 2017 | 2016 | ||||||||||
Total intrinsic values of options exercised* | $ | 466 | $ | 1,070 | $ | 917 |
2018 | 2017 | 2016 | ||||||||||
Nonvested stock awards and units | $ | 6,052 | $ | 6,654 | $ | 10,277 | ||||||
MSU Grants | 925 | 1,804 | 2,925 | |||||||||
Total compensation expense | $ | 6,977 | $ | 8,458 | $ | 13,202 |
Nonvested Stock Awards | Nonvested Stock Units | |||||||
Total unrecognized compensation | $ | 3,189 | $ | 1,341 | ||||
Weighted-average period in years | 1.82 | 1.71 |
2018 | 2017 | 2016 | ||||||||||
Total income tax benefit | $ | 774 | $ | 2,740 | $ | 3,819 |
14. | Net Income Per Share and Weighted Average Shares |
2018 | 2017 | 2016 | ||||||||||
Net income per share numerator | $ | 247,620 | $ | 201,899 | $ | 189,299 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,011,161 | 24,031,810 | 23,945,041 | |||||||||
Add potential dilution: | ||||||||||||
Stock options, nonvested stock awards and units and MSU Grants | 64,453 | 86,478 | 129,232 | |||||||||
Diluted weighted average shares outstanding | 24,075,614 | 24,118,288 | 24,074,273 |
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 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 38,446 | $ | -- | $ | -- | $ | 38,446 | ||||||||
Interest rate swap asset (see Note 6) | -- | 6,255 | -- | 6,255 | ||||||||||||
Total | $ | 38,446 | $ | 6,255 | $ | -- | $ | 44,701 | ||||||||
Deferred compensation plan assets** measured at net asset value | 32,669 | |||||||||||||||
Total assets at fair value | $ | 77,370 | ||||||||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||
Total liabilities at fair value | $ | -- | $ | -- | $ | -- | $ | -- |
Level 1 | Level 2 | Level 3 | Total 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 |
| · | 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 |
2018 | 2017 | 2016 | ||||||||||
Current: | ||||||||||||
Federal | $ | 40,761 | $ | 83,743 | $ | 62,054 | ||||||
State | 6,099 | 7,567 | 6,447 | |||||||||
Deferred: | ||||||||||||
Federal | (16,779 | ) | 4,696 | 12,477 | ||||||||
State | 722 | 982 | (3,858 | ) | ||||||||
Total provision for income taxes | $ | 30,803 | $ | 96,988 | $ | 77,120 |
2018 | 2017 | 2016 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 74,859 | $ | 104,611 | $ | 93,247 | ||||||
State and local income taxes, net of federal benefit | 5,066 | 5,856 | 1,427 | |||||||||
Revaluation of deferred taxes due to a reduction in the federal tax rate at the enactment date of the Tax Act | (26,772 | ) | -- | -- | ||||||||
Revaluation of deferred taxes due to the impact of the change in rate on 2018 temporary items | (3,710 | ) | -- | -- | ||||||||
Employer tax credits for FICA taxes paid on employee tip income | (13,707 | ) | (11,543 | ) | (11,048 | ) | ||||||
Other employer tax credits | (4,476 | ) | (2,814 | ) | (7,326 | ) | ||||||
Other-net | (457 | ) | 878 | 820 | ||||||||
Total provision for income taxes | $ | 30,803 | $ | 96,988 | $ | 77,120 |
August 3, 2018 | July 28, 2017 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 6,342 | $ | 10,110 | ||||
Deferred rent | 12,667 | 18,270 | ||||||
Accrued liabilities | 8,546 | 13,233 | ||||||
Insurance reserves | 7,291 | 12,401 | ||||||
Inventory | 3,106 | 4,411 | ||||||
Other | -- | 2,767 | ||||||
Deferred tax assets | $ | 37,952 | $ | 61,192 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 75,433 | $ | 100,373 | ||||
Inventory | 7,448 | 10,906 | ||||||
Other | 7,232 | 12,273 | ||||||
Deferred tax liabilities | 90,113 | 123,552 | ||||||
Net deferred tax liability | $ | 52,161 | $ | 62,360 |
August 3, 2018 | July 28, 2017 | July 29, 2016 | ||||||||||
Balance at beginning of year | $ | 20,731 | $ | 21,899 | $ | 25,507 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 3,029 | 4,003 | 4,860 | |||||||||
Reductions | -- | -- | -- | |||||||||
Tax positions related to the prior year: | ||||||||||||
Additions | 610 | 582 | 2,186 | |||||||||
Reductions | (575 | ) | (2,966 | ) | (6,896 | ) | ||||||
Settlements | (3,878 | ) | (1,027 | ) | (2,324 | ) | ||||||
Expiration of statute of limitations | (1,283 | ) | (1,760 | ) | (1,434 | ) | ||||||
Balance at end of year | $ | 18,634 | $ | 20,731 | $ | 21,899 |
2018 | 2017 | 2016 | ||||||||||
Uncertain tax positions | $ | 14,721 | $ | 13,475 | $ | 14,234 |
4. | Inventories |
August 3, 2018 | July 28, 2017 | |||||||
Retail | $ | 117,606 | $ | 119,446 | ||||
Restaurant | 20,659 | 20,252 | ||||||
Supplies | 17,988 | 16,669 | ||||||
Total | $ | 156,253 | $ | 156,367 |
9. | Leases |
Year | Minimum | Contingent | Total | |||||||||
2018 | $ | 76,445 | $ | 255 | $ | 76,700 | ||||||
2017 | 75,000 | 252 | 75,252 | |||||||||
2016 | 74,405 | 263 | 74,668 |
Year | Total | |||
2019 | $ | 66,029 | ||
2020 | 53,510 | |||
2021 | 33,170 | |||
2022 | 31,763 | |||
2023 | 32,106 | |||
Later years | 493,557 | |||
Total | $ | 710,135 |
1. | Description of the Business |
Year | Minimum | Contingent | Total | |||||||||
2018 | $ | 76,445 | $ | 255 | $ | 76,700 | ||||||
2017 | 75,000 | 252 | 75,252 | |||||||||
2016 | 74,405 | 263 | 74,668 |
12. | Employee Savings Plans |
2018 | 2017 | 2016 | ||||||||||
401(k) Savings Plan | $ | 3,812 | $ | 2,501 | $ | 2,528 | ||||||
Non-Qualified Savings Plan | 342 | 291 | 296 |
Years | ||||
Buildings and improvements | 30-45 | |||
Buildings under capital leases | 15-25 | |||
Restaurant and other equipment | 2-10 | |||
Leasehold improvements | 1-35 |
Years | ||||
Buildings and improvements | 30-45 | |||
Buildings under capital leases | 15-25 | |||
Restaurant and other equipment | 2-10 | |||
Leasehold improvements | 1-35 |
2018 | 2017 | 2016 | ||||||||||
Total depreciation expense | $ | 93,266 | $ | 85,912 | $ | 77,816 | ||||||
Depreciation expense related to store operations* | 86,913 | 79,214 | 71,382 |
16. | Quarterly Financial Data (Unaudited) |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter (a) | |||||||||||||
2018 | ||||||||||||||||
Total revenue | $ | 710,368 | $ | 787,771 | $ | 721,413 | $ | 810,893 | ||||||||
Store operating income | 107,731 | 112,686 | 98,718 | 118,213 | ||||||||||||
Income before income taxes | 67,220 | 72,994 | 59,715 | 78,494 | ||||||||||||
Net income | 46,380 | 91,139 | 48,747 | 61,354 | ||||||||||||
Net income per share – basic | 1.93 | 3.80 | 2.03 | 2.56 | ||||||||||||
Net income per share – diluted | 1.92 | 3.79 | 2.03 | 2.55 | ||||||||||||
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 |
| (a) | The Company’s fourth quarter of fiscal 2018 consisted of 14 weeks. |
Location of Loss Reclassified from AOCIL into Income (Effective Portion) | Amount of Loss Reclassified from AOCIL into Income (Effective Portion) | ||||||||||||
2018 | 2017 | 2016 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | 3,398 | $ | 4,163 | $ | 5,395 |
| Details about AOCIL | August 3, 2018 | July 28, 2017 | July 29, 2016 | Affected Line Item in the Consolidated Statement of Income | |||||||||
Loss on cash flow hedges: | |||||||||||||
Interest rate swaps | $ | (3,398 | ) | $ | (4,163 | ) | $ | (5,395 | ) | Interest expense | |||
Tax benefit | 1,038 | 1,592 | 2,063 | Provision for income taxes | |||||||||
$ | (2,360 | ) | $ | (2,571 | ) | $ | (3,332 | ) | Net of tax |
Nonvested Stock Awards | Nonvested Stock Units | |||||||
Total unrecognized compensation | $ | 3,189 | $ | 1,341 | ||||
Weighted-average period in years | 1.82 | 1.71 |
August 3, 2018 | July 28, 2017 | |||||||
Retail | $ | 117,606 | $ | 119,446 | ||||
Restaurant | 20,659 | 20,252 | ||||||
Supplies | 17,988 | 16,669 | ||||||
Total | $ | 156,253 | $ | 156,367 |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter (a) | |||||||||||||
2018 | ||||||||||||||||
Total revenue | $ | 710,368 | $ | 787,771 | $ | 721,413 | $ | 810,893 | ||||||||
Store operating income | 107,731 | 112,686 | 98,718 | 118,213 | ||||||||||||
Income before income taxes | 67,220 | 72,994 | 59,715 | 78,494 | ||||||||||||
Net income | 46,380 | 91,139 | 48,747 | 61,354 | ||||||||||||
Net income per share – basic | 1.93 | 3.80 | 2.03 | 2.56 | ||||||||||||
Net income per share – diluted | 1.92 | 3.79 | 2.03 | 2.55 | ||||||||||||
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 |
| (a) | The Company’s fourth quarter of fiscal 2018 consisted of 14 weeks. |
2018 | 2017 | 2016 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 74,859 | $ | 104,611 | $ | 93,247 | ||||||
State and local income taxes, net of federal benefit | 5,066 | 5,856 | 1,427 | |||||||||
Revaluation of deferred taxes due to a reduction in the federal tax rate at the enactment date of the Tax Act | (26,772 | ) | -- | -- | ||||||||
Revaluation of deferred taxes due to the impact of the change in rate on 2018 temporary items | (3,710 | ) | -- | -- | ||||||||
Employer tax credits for FICA taxes paid on employee tip income | (13,707 | ) | (11,543 | ) | (11,048 | ) | ||||||
Other employer tax credits | (4,476 | ) | (2,814 | ) | (7,326 | ) | ||||||
Other-net | (457 | ) | 878 | 820 | ||||||||
Total provision for income taxes | $ | 30,803 | $ | 96,988 | $ | 77,120 |
2018 | 2017 | 2016 | ||||||||||
Net income per share numerator | $ | 247,620 | $ | 201,899 | $ | 189,299 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,011,161 | 24,031,810 | 23,945,041 | |||||||||
Add potential dilution: | ||||||||||||
Stock options, nonvested stock awards and units and MSU Grants | 64,453 | 86,478 | 129,232 | |||||||||
Diluted weighted average shares outstanding | 24,075,614 | 24,118,288 | 24,074,273 |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at July 28, 2017 | 32,017 | $ | 139.04 | |||||
Granted | 51,406 | 154.28 | ||||||
Vested | (38,889 | ) | 153.66 | |||||
Forfeited | (2,776 | ) | 145.92 | |||||
Unvested at August 3, 2018 | 41,758 | $ | 143.73 |
Fixed Options | Shares | Weighted- Average Price | ||||||
Outstanding at July 28, 2017 | 4,000 | $ | 32.86 | |||||
Exercised | (4,000 | ) | 32.86 | |||||
Outstanding at August 3, 2018 | -- | -- |
Year | Total | |||
2019 | $ | 66,029 | ||
2020 | 53,510 | |||
2021 | 33,170 | |||
2022 | 31,763 | |||
2023 | 32,106 | |||
Later years | 493,557 | |||
Total | $ | 710,135 |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 38,446 | $ | -- | $ | -- | $ | 38,446 | ||||||||
Interest rate swap asset (see Note 6) | -- | 6,255 | -- | 6,255 | ||||||||||||
Total | $ | 38,446 | $ | 6,255 | $ | -- | $ | 44,701 | ||||||||
Deferred compensation plan assets** measured at net asset value | 32,669 | |||||||||||||||
Total assets at fair value | $ | 77,370 | ||||||||||||||
Interest rate swap liability (see Note 6) | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||
Total liabilities at fair value | $ | -- | $ | -- | $ | -- | $ | -- |
Level 1 | Level 2 | Level 3 | Total 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 |
2018 | 2017 | 2016 | ||||||||||
Total intrinsic values of options exercised* | $ | 466 | $ | 1,070 | $ | 917 |
2018 | 2017 | 2016 | ||||||||||
Nonvested stock awards and units | $ | 6,052 | $ | 6,654 | $ | 10,277 | ||||||
MSU Grants | 925 | 1,804 | 2,925 | |||||||||
Total compensation expense | $ | 6,977 | $ | 8,458 | $ | 13,202 |
August 3, 2018 | July 28, 2017 | July 29, 2016 | ||||||||||
Beginning AOCIL balance | $ | (4,229 | ) | $ | (13,740 | ) | $ | (3,725 | ) | |||
Other comprehensive income (loss) before reclassifications | 11,274 | 12,082 | (6,683 | ) | ||||||||
Amounts reclassified from AOCIL into earnings | (2,360 | ) | (2,571 | ) | (3,332 | ) | ||||||
Other comprehensive income (loss), net of tax | 8,914 | 9,511 | (10,015 | ) | ||||||||
Ending AOCIL balance | $ | 4,685 | $ | (4,229 | ) | $ | (13,740 | ) |
2018 | 2017 | 2016 | ||||||||||
Current: | ||||||||||||
Federal | $ | 40,761 | $ | 83,743 | $ | 62,054 | ||||||
State | 6,099 | 7,567 | 6,447 | |||||||||
Deferred: | ||||||||||||
Federal | (16,779 | ) | 4,696 | 12,477 | ||||||||
State | 722 | 982 | (3,858 | ) | ||||||||
Total provision for income taxes | $ | 30,803 | $ | 96,988 | $ | 77,120 |
August 3, 2018 | July 28, 2017 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 6,342 | $ | 10,110 | ||||
Deferred rent | 12,667 | 18,270 | ||||||
Accrued liabilities | 8,546 | 13,233 | ||||||
Insurance reserves | 7,291 | 12,401 | ||||||
Inventory | 3,106 | 4,411 | ||||||
Other | -- | 2,767 | ||||||
Deferred tax assets | $ | 37,952 | $ | 61,192 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 75,433 | $ | 100,373 | ||||
Inventory | 7,448 | 10,906 | ||||||
Other | 7,232 | 12,273 | ||||||
Deferred tax liabilities | 90,113 | 123,552 | ||||||
Net deferred tax liability | $ | 52,161 | $ | 62,360 |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
June 18, 2014 | May 3, 2015 | 4 | $ | 160,000 | 2.51 | % | |||||||
June 24, 2014 | May 3, 2015 | 4 | 120,000 | 2.51 | % | ||||||||
July 1, 2014 | May 5, 2015 | 4 | 120,000 | 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 | % |
2018 | 2017 | 2016 | ||||||||||
Restaurant | $ | 2,439,389 | $ | 2,351,212 | $ | 2,323,199 | ||||||
Retail | 591,056 | 575,077 | 589,152 | |||||||||
Total revenue | $ | 3,030,445 | $ | 2,926,289 | $ | 2,912,351 |
(See Note 3) | Balance Sheet Location | August 3, 2018 | July 28, 2017 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | 169 | $ | 32 | ||||
Interest rate swaps | Other assets | 6,086 | -- | ||||||
Total assets | $ | 6,255 | $ | 32 | |||||
Interest rate swaps | Other current liabilities | $ | -- | $ | 47 | ||||
Interest rate swaps | Long-term interest rate swap liability | -- | 6,833 | ||||||
Total liabilities | $ | -- | $ | 6,880 |
Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion) | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | 13,103 | $ | 15,402 | $ | (16,188 | ) |
8. | Segment Information |
2018 | 2017 | 2016 | ||||||||||
Restaurant | $ | 2,439,389 | $ | 2,351,212 | $ | 2,323,199 | ||||||
Retail | 591,056 | 575,077 | 589,152 | |||||||||
Total revenue | $ | 3,030,445 | $ | 2,926,289 | $ | 2,912,351 |
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 |
2018 | 2017 | 2016 | ||||||||||
Total depreciation expense | $ | 93,266 | $ | 85,912 | $ | 77,816 | ||||||
Depreciation expense related to store operations* | 86,913 | 79,214 | 71,382 |
2018 | 2017 | 2016 | ||||||||||
Advertising expense | $ | 83,448 | $ | 83,623 | $ | 79,409 |
August 3, 2018 | July 28, 2017 | July 29, 2016 | ||||||||||
Balance at beginning of year | $ | 20,731 | $ | 21,899 | $ | 25,507 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 3,029 | 4,003 | 4,860 | |||||||||
Reductions | -- | -- | -- | |||||||||
Tax positions related to the prior year: | ||||||||||||
Additions | 610 | 582 | 2,186 | |||||||||
Reductions | (575 | ) | (2,966 | ) | (6,896 | ) | ||||||
Settlements | (3,878 | ) | (1,027 | ) | (2,324 | ) | ||||||
Expiration of statute of limitations | (1,283 | ) | (1,760 | ) | (1,434 | ) | ||||||
Balance at end of year | $ | 18,634 | $ | 20,731 | $ | 21,899 |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | |||
2018 LTPP | 2018 – 2019 | 2 or 3 | |||
2017 LTPP | 2017 – 2018 | 2 or 3 |
2018 | 2017 | 2016 | ||||||||||
Total fair value of nonvested stock | $ | 5,976 | $ | 14,700 | $ | 8,418 |
Shares | ||||
2018 rTSR RSUs | 3,368 | |||
2017 rTSR RSUs | 5,676 |
2018 | 2017 | 2016 | ||||||||||
Total income tax benefit | $ | 774 | $ | 2,740 | $ | 3,819 |
2018 LTPP | 8,892 | |||
2017 LTPP | 23,511 |
2018 | 2017 | 2016 | ||||||||||
Uncertain tax positions | $ | 14,721 | $ | 13,475 | $ | 14,234 |
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; and |
| · | 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. |
2018 | 2017 | 2016 | ||||||||||
Total depreciation expense | $ | 93,266 | $ | 85,912 | $ | 77,816 | ||||||
Depreciation expense related to store operations* | 86,913 | 79,214 | 71,382 |
2018 | 2017 | 2016 | ||||||||||
Advertising expense | $ | 83,448 | $ | 83,623 | $ | 79,409 |
7. | Share Repurchases |