General (Tables)

3 Months Ended

Mar. 29, 2018

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:

	Interest Rate Swaps			Available for Sale Investments			Pension Obligation		Accumulated Other Comprehensive Loss

	(in thousands)
Balance at December 28, 2017	$	-		$	(11)		$	(7,414)	$	(7,425)
Amortization of the net actuarial loss and prior service credit		-			-			114		114
Other comprehensive loss before reclassifications		(170)			-			-		(170)
Amounts reclassified from accumulated other comprehensive loss		26	⁽¹⁾		11	⁽²⁾		-		37
Net other comprehensive income (loss)		(144)			11			114		(19)
Balance at March 29, 2018	$	(144)		$	-		$	(7,300)	$	(7,444)

⁽¹⁾ Amount is included in interest expense in the consolidated statement of earnings.

⁽²⁾ Amount was reclassified to retained earnings on December 29, 2017 in connection with the Company’s adoption of ASU No. 2016-01.

	Available for Sale Investments		Pension Obligation		Accumulated Other Comprehensive Loss
	(in thousands)
Balance at December 29, 2016	$	3	$	(5,069)	$	(5,066)
Change in unrealized gain on available for sale investments		(14)		-		(14)
Amortization of the net actuarial loss and prior service credit		-		54		54
Net other comprehensive income (loss)		(14)		54		40
Balance at March 30, 2017	$	(11)	$	(5,015)	$	(5,026)

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 for net earnings and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding:

	13 Weeks Ended		13 Weeks Ended
	March 29, 2018		March 30, 2017
	(in thousands, except per share data)
Numerator:
Net earnings attributable to The Marcus Corporation	$	9,821	$	9,453
Denominator:
Denominator for basic EPS		27,895		27,708
Effect of dilutive employee stock options		539		675
Denominator for diluted EPS		28,434		28,383
Net earnings per share – basic:
Common Stock	$	0.36	$	0.35
Class B Common Stock	$	0.33	$	0.32
Net earnings per share – diluted:
Common Stock	$	0.35	$	0.33
Class B Common Stock	$	0.32	$	0.31

Components of Shareholders' Equity Activity Attributable to The Marcus Corporation and Noncontrolling Interests

Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interests for the 13 weeks ended March 29, 2018 and March 30, 2017 was as follows:

	Total Shareholders’ Equity Attributable to The Marcus Corporation		Noncontrolling Interests

	(in thousands)
Balance at December 28, 2017	$	445,024	$	100
Net earnings attributable to The Marcus Corporation		9,821		-
Net loss attributable to noncontrolling interests		-		(15)
Distributions to noncontrolling interests		-		(19)
Cash dividends		(4,070)		-
Exercise of stock options		929		-
Savings and profit sharing contribution		1,130		-
Treasury stock transactions, except for stock options		(404)		-
Share-based compensation		596		-
Cumulative effect of adopting ASU No. 2014-09		(3,513)		-
Other comprehensive loss, net of tax		(30)		-
Balance at March 29, 2018	$	449,483	$	66

	Total Shareholders’ Equity Attributable to The Marcus Corporation		Noncontrolling Interests
	(in thousands)
Balance at December 29, 2016	$	390,112	$	1,535
Net earnings attributable to The Marcus Corporation		9,453		-
Net loss attributable to noncontrolling interests		-		(336)
Cash dividends		(3,366)		-
Exercise of stock options		455		-
Savings and profit sharing contribution		890		-
Treasury stock transactions, except for stock options		52		-
Share-based compensation		505		-
Other comprehensive income, net of tax		40		-
Balance at March 30, 2017	$	398,141	$	1,199

Schedule of Net Benefit Costs

The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows:

	13 Weeks Ended		13 Weeks Ended
	March 29, 2018		March 30, 2017
	(in thousands)
Service cost	$	232	$	191
Interest cost		341		339
Net amortization of prior service cost and actuarial loss		155		89
Net periodic pension cost	$	728	$	619

Disaggregation of Revenue [Table Text Block]

The disaggregation of revenues by business segment for the 13 weeks ended March 29, 2018 is as follows (in thousands):

	Reportable Segment
	Theatres		Hotels/Resorts		Corporate		Total
Theatre admissions	$	63,006	$	-	$	-	$	63,006
Rooms		-		20,671		-		20,671
Theatre concessions		41,413		-		-		41,413
Food and beverage		-		15,803		-		15,803
Other revenues ⁽¹⁾		8,037		11,401		88		19,526
Cost reimbursements		479		7,293		-		7,772
Total revenues	$	112,935	$	55,168	$	88	$	168,191

⁽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 [Table Text Block]

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 December 28, 2017		Cumulative Adjustment		Balance at December 29, 2017
	(in thousands)
Other accrued liabilities	$	53,291	$	3,296	$	56,587
Deferred compensation and other		56,662		217		56,879
Retained earnings		403,206		(3,513)		399,693

The adoption of ASU No. 2014-09 during the 13 weeks ended March 29, 2018 had the following effect on our consolidated financial statements (in thousands):

	For the 13 weeks ended March 29, 2018
Statement of Earnings	As Reported		ASU No. 2014-09 Impact		Adjusted (1)
Revenues
Theatre admissions	$	63,006	$	(606)	$	63,612
Theatre concessions		41,413		418		40,995
Food and beverage		15,803		(21)		15,824
Other revenues		19,526		1,287		18,239
Total revenues		168,191		1,078		167,113

Costs and expenses
Theatre operations		54,655		154		54,501
Theatre concessions		11,961		139		11,822
Advertising and marketing		5,114		(490)		5,604
Other operating expenses		8,756		1,202		7,554
Total costs and expenses		151,175		1,005		150,170

Operating income		17,016		73		16,943
Income taxes		3,421		19		3,402
Net earnings attributable to The Marcus Corporation		9,821		54		9,767

Balance Sheet
Other accrued liabilities		49,239		3,369		45,870
Total current liabilities		130,574		3,369		127,205
Deferred compensation and other		56,640		217		56,423
Retained Earnings		405,434		(3,586)		409,020
Shareholders equity attributable to The Marcus Corporation		449,483		(3,586)		453,069
Total equity		449,549		(3,586)		453,135

⁽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.