2019 | 2018 | 2017 | ||||||||||
Advertising expense | $ | 81,855 | $ | 83,448 | $ | 83,623 |
| 16. | Commitments and Contingencies |
| 6. | Debt |
2019 | 2018 | 2017 | ||||||||||
401(k) Savings Plan | $ | 4,553 | $ | 3,812 | $ | 2,501 | ||||||
Non-Qualified Savings Plan | 320 | 342 | 291 |
| 7. | Derivative Instruments and Hedging Activities |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
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 | % | ||||||||
January 16, 2019 | May 3, 2019 | 3 | 115,000 | 2.63 | % | ||||||||
January 16, 2019 | May 3, 2019 | 2 | 115,000 | 2.68 | % |
(See Note 4) | Balance Sheet Location | August 2, 2019 | August 3, 2018 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | — | $ | 169 | ||||
Interest rate swaps | Other assets | — | 6,086 | ||||||
Total assets | $ | — | $ | 6,255 | |||||
Interest rate swaps | Long-term interest rate swap liability | $ | 10,483 | — | |||||
Total liabilities | $ | 10,483 | $ | — |
Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion) | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | (15,466 | ) | $ | 13,103 | $ | 15,402 |
August 2, 2019 | August 3, 2018 | July 28, 2017 | ||||||||||
Beginning AOCIL balance | $ | 4,685 | $ | (4,229 | ) | $ | (13,740 | ) | ||||
Other comprehensive income (loss) before reclassifications | (11,752 | ) | 11,274 | 12,082 | ||||||||
Amounts reclassified from AOCIL into earnings | 154 | (2,360 | ) | (2,571 | ) | |||||||
Other comprehensive income (loss), net of tax | (11,598 | ) | 8,914 | 9,511 | ||||||||
Ending AOCIL balance | $ | (6,913 | ) | $ | 4,685 | $ | (4,229 | ) |
Location of (Income) Loss Reclassified from AOCIL into Income (Effective Portion) | Amount of (Income) Loss Reclassified from AOCIL into Income (Effective Portion) | ||||||||||||
2019 | 2018 | 2017 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | (206 | ) | $ | 3,398 | $ | 4,163 |
Details about AOCIL | August 2, 2019 | August 3, 2018 | July 28, 2017 | Affected Line Item in the Consolidated Statement of Income | |||||||||
Loss on cash flow hedges: | |||||||||||||
Interest rate swaps | $ | 206 | $ | (3,398 | ) | $ | (4,163 | ) | Interest expense | ||||
Tax benefit | (52 | ) | 1,038 | 1,592 | Provision for income taxes | ||||||||
$ | 154 | $ | (2,360 | ) | $ | (2,571 | ) | Net of tax |
| 11. | Share-Based Compensation |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | |||
2019 LTPP | 2019 – 2020 | 2 or 3 | |||
2018 LTPP | 2018 – 2019 | 2 or 3 |
2019 LTPP | 13,104 | |||
2018 LTPP | 17,190 |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at August 3, 2018 | 41,758 | $ | 143.73 | |||||
Granted | 49,724 | 150.13 | ||||||
Vested | (34,692 | ) | 147.55 | |||||
Forfeited | (4,207 | ) | 144.93 | |||||
Unvested at August 2, 2019 | 52,583 | $ | 147.17 |
2019 | 2018 | 2017 | ||||||||||
Total fair value of nonvested stock | $ | 5,119 | $ | 5,976 | $ | 14,700 |
| • | 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 rates for the nonvested stock units granted in 2018 and 2019 were 1.6% and 2.9%, respectively. |
| • | The expected dividend yield is assumed to be zero since the award holders are entitled to any dividends paid over the performance period. |
Shares | ||||
2019 rTSR RSUs | 3,675 | |||
2018 rTSR RSUs | 5,722 | |||
2017 rTSR RSUs | 7,548 |
| • | 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. |
2019 | 2018 | 2017 | ||||||||||
Total intrinsic values of options exercised* | $ | — | $ | 466 | $ | 1,070 |
2019 | 2018 | 2017 | ||||||||||
Nonvested stock awards and units | $ | 8,181 | $ | 6,052 | $ | 6,654 | ||||||
MSU Grants | — | 925 | 1,804 | |||||||||
Total compensation expense | $ | 8,181 | $ | 6,977 | $ | 8,458 |
Nonvested Stock Awards | Nonvested Stock Units | |||||||
Total unrecognized compensation | $ | 3,496 | $ | 1,363 | ||||
Weighted-average period in years | 1.73 | 1.67 |
2019 | 2018 | 2017 | ||||||||||
Total income tax benefit | $ | 1,317 | $ | 774 | $ | 2,740 |
| 15. | Net Income Per Share and Weighted Average Shares |
2019 | 2018 | 2017 | ||||||||||
Net income per share numerator | $ | 223,401 | $ | 247,620 | $ | 201,899 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,037,272 | 24,011,161 | 24,031,810 | |||||||||
Add potential dilution: | ||||||||||||
Nonvested stock awards and units, MSU Grants and stock options | 59,124 | 64,453 | 86,478 | |||||||||
Diluted weighted average shares outstanding | 24,096,396 | 24,075,614 | 24,118,288 |
3. | Equity Method Investment |
4. | 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* | $ | 46 | $ | — | $ | — | $ | 46 | ||||||||
Interest rate swap asset (see Note 7) | — | — | — | — | ||||||||||||
Total | $ | 46 | $ | — | $ | — | $ | 46 | ||||||||
Deferred compensation plan assets** measured at net asset value | 30,593 | |||||||||||||||
Total assets at fair value | $ | 30,639 | ||||||||||||||
Interest rate swap liability (see Note 7) | $ | — | $ | 10,483 | $ | — | $ | 10,483 | ||||||||
Total liabilities at fair value | $ | — | $ | 10,483 | $ | — | $ | 10,483 |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 38,446 | $ | — | $ | — | $ | 38,446 | ||||||||
Interest rate swap asset (see Note 7) | — | 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 7) | $ | — | $ | — | $ | — | $ | — | ||||||||
Total liabilities at fair value | $ | — | $ | — | $ | — | $ | — |
| • | 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. |
| 14. | Income Taxes |
2019 | 2018 | 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | 38,831 | $ | 40,761 | $ | 83,743 | ||||||
State | 8,310 | 6,099 | 7,567 | |||||||||
Deferred: | ||||||||||||
Federal | (1,427 | ) | (16,779 | ) | 4,696 | |||||||
State | (2,759 | ) | 722 | 982 | ||||||||
Total provision for income taxes | $ | 42,955 | $ | 30,803 | $ | 96,988 |
2019 | 2018 | 2017 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 55,935 | $ | 74,859 | $ | 104,611 | ||||||
State and local income taxes, net of federal benefit | 4,248 | 5,066 | 5,856 | |||||||||
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 | (15,107 | ) | (13,707 | ) | (11,543 | ) | ||||||
Other employer tax credits | (3,537 | ) | (4,476 | ) | (2,814 | ) | ||||||
Other-net | 1,416 | (457 | ) | 878 | ||||||||
Total provision for income taxes | $ | 42,955 | $ | 30,803 | $ | 96,988 |
August 2, 2019 | August 3, 2018 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 6,496 | $ | 6,342 | ||||
Deferred rent | 13,424 | 12,667 | ||||||
Accrued liabilities | 21,379 | 8,546 | ||||||
Insurance reserves | 7,571 | 7,291 | ||||||
Inventory | 2,873 | 3,106 | ||||||
Other | 536 | — | ||||||
Deferred tax assets | $ | 52,279 | $ | 37,952 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 85,379 | $ | 75,433 | ||||
Inventory | 7,363 | 7,448 | ||||||
Other | 3,656 | 7,232 | ||||||
Deferred tax liabilities | 96,398 | 90,113 | ||||||
Net deferred tax liability | $ | 44,119 | $ | 52,161 |
August 2, 2019 | August 3, 2018 | July 28, 2017 | ||||||||||
Balance at beginning of year | $ | 18,634 | $ | 20,731 | $ | 21,899 | ||||||
Tax positions related to the current year: Additions | 2,742 | 3,029 | 4,003 | |||||||||
Reductions | — | — | — | |||||||||
Tax positions related to the prior year: Additions | 203 | 610 | 582 | |||||||||
Reductions | (348 | ) | (575 | ) | (2,966 | ) | ||||||
Settlements | (1,784 | ) | (3,878 | ) | (1,027 | ) | ||||||
Expiration of statute of limitations | (1,441 | ) | (1,283 | ) | (1,760 | ) | ||||||
Balance at end of year | $ | 18,006 | $ | 18,634 | $ | 20,731 |
2019 | 2018 | 2017 | ||||||||||
Uncertain tax positions | $ | 14,225 | $ | 14,721 | $ | 13,475 |
| 5. | Inventories |
August 2, 2019 | August 3, 2018 | |||||||
Retail | $ | 116,990 | $ | 117,606 | ||||
Restaurant | 20,648 | 20,659 | ||||||
Supplies | 17,320 | 17,988 | ||||||
Total | $ | 154,958 | $ | 156,253 |
| 10. | Leases |
Year | Minimum | Contingent | Total | |||||||||
2019 | $ | 78,044 | $ | 280 | $ | 78,324 | ||||||
2018 | 76,445 | 255 | 76,700 | |||||||||
2017 | 75,000 | 252 | 75,252 |
Year | Total | |||
2020 | $ | 69,249 | ||
2021 | 40,962 | |||
2022 | 36,280 | |||
2023 | 33,639 | |||
2024 | 34,020 | |||
Later years | 515,169 | |||
Total | $ | 729,319 |
| 1. | Description of the Business |
Year | Minimum | Contingent | Total | |||||||||
2019 | $ | 78,044 | $ | 280 | $ | 78,324 | ||||||
2018 | 76,445 | 255 | 76,700 | |||||||||
2017 | 75,000 | 252 | 75,252 |
| 13. | Employee Savings Plans |
2019 | 2018 | 2017 | ||||||||||
401(k) Savings Plan | $ | 4,553 | $ | 3,812 | $ | 2,501 | ||||||
Non-Qualified Savings Plan | 320 | 342 | 291 |
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 |
2019 | 2018 | 2017 | ||||||||||
Total depreciation expense | $ | 107,294 | $ | 93,266 | $ | 85,912 | ||||||
Depreciation expense related to store operations* | 100,366 | 86,913 | 79,214 |
| 17. | Quarterly Financial Data (Unaudited) |
1st Quarter | 2nd Quarter(a) | 3rd Quarter | 4th Quarter(b) | |||||||||||||
2019 | ||||||||||||||||
Total revenue | $ | 733,543 | $ | 811,707 | $ | 739,603 | $ | 787,098 | ||||||||
Store operating income | 100,613 | 112,935 | 102,210 | 119,912 | ||||||||||||
Income before income taxes | 57,329 | 72,534 | 60,974 | 75,519 | ||||||||||||
Net income | 47,207 | 60,755 | 50,414 | 65,025 | ||||||||||||
Net income per share – basic | 1.97 | 2.53 | 2.10 | 2.70 | ||||||||||||
Net income per share – diluted | 1.96 | 2.52 | 2.09 | 2.70 | ||||||||||||
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 |
| (a) | The Company recorded a provisional tax benefit for the re-measurement of deferred tax liabilities of $27,032 and $2,500 for long-term and short-term liabilities in the second quarter of fiscal 2018 as a result of the Tax Act. |
| (b) | The Company’s fourth quarter of fiscal 2018 consisted of 14 weeks. |
Details about AOCIL | August 2, 2019 | August 3, 2018 | July 28, 2017 | Affected Line Item in the Consolidated Statement of Income | |||||||||
Loss on cash flow hedges: | |||||||||||||
Interest rate swaps | $ | 206 | $ | (3,398 | ) | $ | (4,163 | ) | Interest expense | ||||
Tax benefit | (52 | ) | 1,038 | 1,592 | Provision for income taxes | ||||||||
$ | 154 | $ | (2,360 | ) | $ | (2,571 | ) | Net of tax |
Nonvested Stock | Shares | Weighted-Average Grant Date Fair Value | ||||||
Unvested at August 3, 2018 | 41,758 | $ | 143.73 | |||||
Granted | 49,724 | 150.13 | ||||||
Vested | (34,692 | ) | 147.55 | |||||
Forfeited | (4,207 | ) | 144.93 | |||||
Unvested at August 2, 2019 | 52,583 | $ | 147.17 |
August 2, 2019 | August 3, 2018 | |||||||
Retail | $ | 116,990 | $ | 117,606 | ||||
Restaurant | 20,648 | 20,659 | ||||||
Supplies | 17,320 | 17,988 | ||||||
Total | $ | 154,958 | $ | 156,253 |
Year | Total | |||
2020 | $ | 69,249 | ||
2021 | 40,962 | |||
2022 | 36,280 | |||
2023 | 33,639 | |||
2024 | 34,020 | |||
Later years | 515,169 | |||
Total | $ | 729,319 |
Nonvested Stock Awards | Nonvested Stock Units | |||||||
Total unrecognized compensation | $ | 3,496 | $ | 1,363 | ||||
Weighted-average period in years | 1.73 | 1.67 |
1st Quarter | 2nd Quarter(a) | 3rd Quarter | 4th Quarter(b) | |||||||||||||
2019 | ||||||||||||||||
Total revenue | $ | 733,543 | $ | 811,707 | $ | 739,603 | $ | 787,098 | ||||||||
Store operating income | 100,613 | 112,935 | 102,210 | 119,912 | ||||||||||||
Income before income taxes | 57,329 | 72,534 | 60,974 | 75,519 | ||||||||||||
Net income | 47,207 | 60,755 | 50,414 | 65,025 | ||||||||||||
Net income per share – basic | 1.97 | 2.53 | 2.10 | 2.70 | ||||||||||||
Net income per share – diluted | 1.96 | 2.52 | 2.09 | 2.70 | ||||||||||||
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 |
| (a) | The Company recorded a provisional tax benefit for the re-measurement of deferred tax liabilities of $27,032 and $2,500 for long-term and short-term liabilities in the second quarter of fiscal 2018 as a result of the Tax Act. |
| (b) | The Company’s fourth quarter of fiscal 2018 consisted of 14 weeks. |
2019 | 2018 | 2017 | ||||||||||
Total intrinsic values of options exercised* | $ | — | $ | 466 | $ | 1,070 |
2019 | 2018 | 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | 38,831 | $ | 40,761 | $ | 83,743 | ||||||
State | 8,310 | 6,099 | 7,567 | |||||||||
Deferred: | ||||||||||||
Federal | (1,427 | ) | (16,779 | ) | 4,696 | |||||||
State | (2,759 | ) | 722 | 982 | ||||||||
Total provision for income taxes | $ | 42,955 | $ | 30,803 | $ | 96,988 |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 46 | $ | — | $ | — | $ | 46 | ||||||||
Interest rate swap asset (see Note 7) | — | — | — | — | ||||||||||||
Total | $ | 46 | $ | — | $ | — | $ | 46 | ||||||||
Deferred compensation plan assets** measured at net asset value | 30,593 | |||||||||||||||
Total assets at fair value | $ | 30,639 | ||||||||||||||
Interest rate swap liability (see Note 7) | $ | — | $ | 10,483 | $ | — | $ | 10,483 | ||||||||
Total liabilities at fair value | $ | — | $ | 10,483 | $ | — | $ | 10,483 |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 38,446 | $ | — | $ | — | $ | 38,446 | ||||||||
Interest rate swap asset (see Note 7) | — | 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 7) | $ | — | $ | — | $ | — | $ | — | ||||||||
Total liabilities at fair value | $ | — | $ | — | $ | — | $ | — |
August 2, 2019 | August 3, 2018 | |||||||
Deferred tax assets: | ||||||||
Compensation and employee benefits | $ | 6,496 | $ | 6,342 | ||||
Deferred rent | 13,424 | 12,667 | ||||||
Accrued liabilities | 21,379 | 8,546 | ||||||
Insurance reserves | 7,571 | 7,291 | ||||||
Inventory | 2,873 | 3,106 | ||||||
Other | 536 | — | ||||||
Deferred tax assets | $ | 52,279 | $ | 37,952 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 85,379 | $ | 75,433 | ||||
Inventory | 7,363 | 7,448 | ||||||
Other | 3,656 | 7,232 | ||||||
Deferred tax liabilities | 96,398 | 90,113 | ||||||
Net deferred tax liability | $ | 44,119 | $ | 52,161 |
2019 | 2018 | 2017 | ||||||||||
Net income per share numerator | $ | 223,401 | $ | 247,620 | $ | 201,899 | ||||||
Net income per share denominator: | ||||||||||||
Basic weighted average shares outstanding | 24,037,272 | 24,011,161 | 24,031,810 | |||||||||
Add potential dilution: | ||||||||||||
Nonvested stock awards and units, MSU Grants and stock options | 59,124 | 64,453 | 86,478 | |||||||||
Diluted weighted average shares outstanding | 24,096,396 | 24,075,614 | 24,118,288 |
2019 | 2018 | 2017 | ||||||||||
Nonvested stock awards and units | $ | 8,181 | $ | 6,052 | $ | 6,654 | ||||||
MSU Grants | — | 925 | 1,804 | |||||||||
Total compensation expense | $ | 8,181 | $ | 6,977 | $ | 8,458 |
2019 | 2018 | 2017 | ||||||||||
Provision computed at federal statutory income tax rate | $ | 55,935 | $ | 74,859 | $ | 104,611 | ||||||
State and local income taxes, net of federal benefit | 4,248 | 5,066 | 5,856 | |||||||||
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 | (15,107 | ) | (13,707 | ) | (11,543 | ) | ||||||
Other employer tax credits | (3,537 | ) | (4,476 | ) | (2,814 | ) | ||||||
Other-net | 1,416 | (457 | ) | 878 | ||||||||
Total provision for income taxes | $ | 42,955 | $ | 30,803 | $ | 96,988 |
August 2, 2019 | August 3, 2018 | July 28, 2017 | ||||||||||
Beginning AOCIL balance | $ | 4,685 | $ | (4,229 | ) | $ | (13,740 | ) | ||||
Other comprehensive income (loss) before reclassifications | (11,752 | ) | 11,274 | 12,082 | ||||||||
Amounts reclassified from AOCIL into earnings | 154 | (2,360 | ) | (2,571 | ) | |||||||
Other comprehensive income (loss), net of tax | (11,598 | ) | 8,914 | 9,511 | ||||||||
Ending AOCIL balance | $ | (6,913 | ) | $ | 4,685 | $ | (4,229 | ) |
2019 | 2018 | 2017 | ||||||||||
Restaurant | $ | 2,482,377 | $ | 2,439,389 | $ | 2,351,212 | ||||||
Retail | 589,574 | 591,056 | 575,077 | |||||||||
Total revenue | $ | 3,071,951 | $ | 3,030,445 | $ | 2,926,289 |
Trade Date | Effective Date | Term (in Years) | Notional Amount | Fixed Rate | |||||||||
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 | % | ||||||||
January 16, 2019 | May 3, 2019 | 3 | 115,000 | 2.63 | % | ||||||||
January 16, 2019 | May 3, 2019 | 2 | 115,000 | 2.68 | % |
Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion) | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flow hedges: | ||||||||||||
Interest rate swaps | $ | (15,466 | ) | $ | 13,103 | $ | 15,402 |
Location of (Income) Loss Reclassified from AOCIL into Income (Effective Portion) | Amount of (Income) Loss Reclassified from AOCIL into Income (Effective Portion) | ||||||||||||
2019 | 2018 | 2017 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | (206 | ) | $ | 3,398 | $ | 4,163 |
(See Note 4) | Balance Sheet Location | August 2, 2019 | August 3, 2018 | ||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | — | $ | 169 | ||||
Interest rate swaps | Other assets | — | 6,086 | ||||||
Total assets | $ | — | $ | 6,255 | |||||
Interest rate swaps | Long-term interest rate swap liability | $ | 10,483 | — | |||||
Total liabilities | $ | 10,483 | $ | — |
| 9. | Segment Information |
2019 | 2018 | 2017 | ||||||||||
Restaurant | $ | 2,482,377 | $ | 2,439,389 | $ | 2,351,212 | ||||||
Retail | 589,574 | 591,056 | 575,077 | |||||||||
Total revenue | $ | 3,071,951 | $ | 3,030,445 | $ | 2,926,289 |
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 |
2019 | 2018 | 2017 | ||||||||||
Total depreciation expense | $ | 107,294 | $ | 93,266 | $ | 85,912 | ||||||
Depreciation expense related to store operations* | 100,366 | 86,913 | 79,214 |
2019 | 2018 | 2017 | ||||||||||
Advertising expense | $ | 81,855 | $ | 83,448 | $ | 83,623 |
August 2, 2019 | August 3, 2018 | July 28, 2017 | ||||||||||
Balance at beginning of year | $ | 18,634 | $ | 20,731 | $ | 21,899 | ||||||
Tax positions related to the current year: Additions | 2,742 | 3,029 | 4,003 | |||||||||
Reductions | — | — | — | |||||||||
Tax positions related to the prior year: Additions | 203 | 610 | 582 | |||||||||
Reductions | (348 | ) | (575 | ) | (2,966 | ) | ||||||
Settlements | (1,784 | ) | (3,878 | ) | (1,027 | ) | ||||||
Expiration of statute of limitations | (1,441 | ) | (1,283 | ) | (1,760 | ) | ||||||
Balance at end of year | $ | 18,006 | $ | 18,634 | $ | 20,731 |
2019 | 2018 | 2017 | ||||||||||
Uncertain tax positions | $ | 14,225 | $ | 14,721 | $ | 13,475 |
2019 | 2018 | 2017 | ||||||||||
Total income tax benefit | $ | 1,317 | $ | 774 | $ | 2,740 |
Long-Term Performance Plan (“LTPP”) | Performance Period | Vesting Period (in Years) | |||
2019 LTPP | 2019 – 2020 | 2 or 3 | |||
2018 LTPP | 2018 – 2019 | 2 or 3 |
2019 | 2018 | 2017 | ||||||||||
Total fair value of nonvested stock | $ | 5,119 | $ | 5,976 | $ | 14,700 |
Shares | ||||
2019 rTSR RSUs | 3,675 | |||
2018 rTSR RSUs | 5,722 | |||
2017 rTSR RSUs | 7,548 |
2019 LTPP | 13,104 | |||
2018 LTPP | 17,190 |
| 12. | 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. |
| 8. | Share Repurchases |
2019 | 2018 | 2017 | ||||||||||
Total depreciation expense | $ | 107,294 | $ | 93,266 | $ | 85,912 | ||||||
Depreciation expense related to store operations* | 100,366 | 86,913 | 79,214 |
2019 | 2018 | 2017 | ||||||||||
Advertising expense | $ | 81,855 | $ | 83,448 | $ | 83,623 |