Shareholders' Deficit

6 Months Ended

Jun. 29, 2022

Stockholders' Equity Attributable to Parent [Abstract]

Shareholders' Deficit

Shareholders' Deficit

Share Repurchases

Our credit facility permits the repurchase of Denny’s stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019.

During the two quarters ended June 29, 2022, we repurchased a total of 4.7 million shares of our common stock for approximately $49.2 million. This brings the total amount repurchased under the current authorization to approximately $81.8 million, leaving approximately $168.2 million that can be used to repurchase our common stock under this authorization as of June 29, 2022. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit.

As of June 29, 2022, 6.7 million shares were held in treasury stock.

Accumulated Other Comprehensive Loss, Net

The components of the change in accumulated other comprehensive loss, net were as follows:

	Defined Benefit Plans		Derivatives		Accumulated Other Comprehensive Loss, Net
	(In thousands)
Balance as of December 29, 2021	$	(900)	$	(53,570)	$	(54,470)
Amortization of net loss (1)	61		—		61
Changes in the fair value of cash flow hedges	—		9,141		9,141
Reclassification of cash flow hedges to interest expense, net (2)	—		1,711		1,711
Amortization of unrealized losses related to dedesignated swaps to interest expense, net	—		6		6
Income tax expense related to items of other comprehensive income	(15)		(2,715)		(2,730)
Balance as of June 29, 2022	$	(854)	$	(45,427)	$	(46,281)

(1)    Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Operations during the two quarters ended June 29, 2022.

(2)    Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Operations represent payments either received from or made to the counterparty for the interest rate hedges. See Note 7 for additional details.