XML 28 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stockholders' Equity
 6 Months Ended
Jul. 01, 2018
Equity [Abstract]  
Stockholders' Equity
Stockholders’ Equity

Stockholders’ Equity

The following is a summary of the changes in stockholders’ equity:
 
Six Months Ended
 
July 1,
2018
 
July 2,
2017
Balance at beginning of period
$
573,203

 
$
527,736

Comprehensive income
39,783

 
29,490

Cash dividends
(40,645
)
 
(34,447
)
Repurchases of common stock
(85,194
)
 
(52,501
)
Share-based compensation
9,591

 
11,372

Exercises of stock options
6,814

 
6,161

Vesting of restricted shares
(2,921
)
 
(2,732
)
Cumulative effect of change in accounting principle (a)
(70,210
)
 
1,880

Other
118

 
90

Balance at end of period
$
430,539

 
$
487,049


_______________

(a)
During the six months ended July 1, 2018, the Company recognized a net increase to “Accumulated deficit” of $70,210 as a result of adoption of amended guidance for revenue recognition. The net increase resulted from an increase to deferred franchise fees of $85,561 and a decrease to “Deferred income taxes” of $21,996 as a result of now deferring franchise fees over the contractual term of the franchise agreements. Additionally, an increase to “Advertising funds restricted liabilities” of $6,645 was recognized as a result of a reclassification of the total stockholders’ deficit of the Advertising Funds as of December 31, 2017. See Note 2 for further information.

During the six months ended July 2, 2017, the Company recognized a tax benefit as a reduction to the Company’s deferred tax liability with an equal offsetting increase to “Accumulated deficit.” The adjustment was recognized as a result of adoption of an amendment to the accounting for employee share-based payment transactions.

Repurchases of Common Stock

In February 2018, our Board of Directors authorized a repurchase program for up to $175,000 of our common stock through March 3, 2019, when and if market conditions warrant and to the extent legally permissible. During the six months ended July 1, 2018, the Company repurchased 3,675 shares with an aggregate purchase price of $62,490, of which $2,146 was accrued at July 1, 2018, and excluding commissions of $52. As of July 1, 2018, the Company had $112,510 of availability remaining under its February 2018 authorization. Subsequent to July 1, 2018 through August 1, 2018, the Company repurchased 1,129 shares with an aggregate purchase price of $19,395, excluding commissions of $16.

In February 2017, our Board of Directors authorized a repurchase program for up to $150,000 of our common stock through March 4, 2018, when and if market conditions warranted and to the extent legally permissible. During the six months ended July 1, 2018, the Company completed the $150,000 program with the repurchase of 1,385 shares with an aggregate purchase price of $22,633, excluding commissions of $19. During the six months ended July 2, 2017, the Company repurchased 3,611 shares with an aggregate purchase price of $52,448, of which $1,974 was accrued at July 2, 2017, and excluding commissions of $53.

Accumulated Other Comprehensive Loss

The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax as applicable:
 
Foreign Currency Translation
 
Cash Flow Hedges (a)
 
Pension
 
Total
Balance at December 31, 2017
$
(45,149
)
 
$
—

 
$
(1,049
)
 
$
(46,198
)
Current-period other comprehensive (loss) income
(10,369
)
 
—

 
117

 
(10,252
)
Balance at July 1, 2018
$
(55,518
)
 
$
—

 
$
(932
)
 
$
(56,450
)
 
 
 
 
 
 
 
 
Balance at January 1, 2017
$
(60,299
)
 
$
(1,797
)
 
$
(1,145
)
 
$
(63,241
)
Current-period other comprehensive income
8,010

 
888

 
96

 
8,994

Balance at July 2, 2017
$
(52,289
)
 
$
(909
)
 
$
(1,049
)
 
$
(54,247
)
_______________

(a)
Current-period other comprehensive income included the reclassification of unrealized losses on cash flow hedges from “Accumulated other comprehensive loss” to our condensed consolidated statements of operations of $443 and $888 for the three and six months ended July 2, 2017, respectively. The reclassification of unrealized losses on cash flow hedges consisted of $724 and $1,447 for the three and six months ended July 2, 2017, respectively, recorded to “Interest expense, net,” net of the related income tax benefit of $281 and $559 for the three and six months ended July 2, 2017, respectively, recorded to “Provision for income taxes.”