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Restatement of Previously Issued Financial Statements
6 Months Ended
Jun. 24, 2012
Restatement of Previously Issued Financial Statements
1.  
Restatement of Previously Issued Financial Statements

We are restating our condensed consolidated financial statements for the three- and six-month periods ended June 24, 2012 and June 26, 2011. In connection with the evaluation of the accounting for newly formed joint ventures, we reviewed our accounting for our previously existing joint venture arrangements. As a result of our review, we determined an error occurred in the accounting for one joint venture agreement, which contained a mandatorily redeemable feature added through a contract amendment in the third quarter of 2009. This provision contained in the 2009 contract amendment was not previously considered in determining the classification and measurement of the noncontrolling interest. In addition, we determined that an additional redeemable noncontrolling interest was incorrectly classified in shareholders’ equity and should be classified as temporary equity.

To correctly reflect the appropriate measurement of the mandatorily redeemable noncontrolling interests, we recorded a $3.1 million adjustment, net of income taxes, to ending 2010 retained earnings in our Consolidated Statements of Stockholders’ Equity to adjust the previously reported balance sheet to its redemption value as of December 26, 2010. Additionally, we also corrected the classification errors of the redeemable noncontrolling interests from stockholders’ equity to either other long-term liabilities or redeemable noncontrolling interests in our consolidated balance sheets. The impact of the restatements on the financial statements is outlined in the tables below (in thousands, except per share data). The corrections had no impact on total revenues, operating income or operating cash flows and had no impact on our compliance with debt covenants in any period presented.


   
Three Months Ended
 
   
June 24, 2012
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Statement of Comprehensive Income
 
Interest expense
  $ 282     $ 774     $ 1,056  
Income before income taxes
    24,240       (774 )     23,466  
Income tax expense
    8,299       (294 )     8,005  
Net income, including noncontrolling interests
    15,941       (480 )     15,461  
Net income, net of noncontrolling interests
    14,769       (480 )     14,289  
Comprehensive income
    15,490       (480 )     15,010  
Basic earnings per common share
    0.62       (0.02 )     0.60  
Earnings per common share - assuming dilution
    0.61       (0.02 )     0.59  
 
   
As of and For The
 
   
Six Months Ended
 
   
June 24, 2012
 
   
As
Previously
Reported
   
Reclassifications *
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                       
Noncurrent deferred income tax liabilities
  $ 9,648     $ -     $ (2,604 )   $ 7,044  
Long-term accrued income taxes
    3,924       (3,924 )     -       -  
Other long-term liabilities
    23,638       3,924       11,532       39,094  
Redeemable noncontrolling interests
    -       -       4,458       4,458  
Retained earnings
    330,320       -       (4,249 )     326,071  
Noncontrolling interests in subsidiaries
    9,137       -       (9,137 )     -  
Total stockholders' equity
    225,546       -       (13,386 )     212,160  
Condensed Consolidated Statement of Comprehensive Income
                         
Interest expense
  $ 570     $ -     $ 392     $ 962  
Income before income taxes
    51,378       -       (392 )     50,986  
Income tax expense
    17,367       -       (149 )     17,218  
Net income, including noncontrolling interests
    34,011       -       (243 )     33,768  
Net income, net of noncontrolling interests
    31,513       -       (243 )     31,270  
Comprehensive income
    33,771       -       (243 )     33,528  
Basic earnings per common share
    1.32       -       (0.01 )     1.31  
Earnings per common share - assuming dilution
    1.30       -       (0.01 )     1.29  
Consolidated Statement of Cash Flows
                               
   Net income, including noncontrolling interests
  $ 34,011     $ -     $ (243 )   $ 33,768  
   Deferred income taxes
    1,946       -       (149 )     1,797  
   Other
    2,480       -       392       2,872  
   Net cash provided by operating activities
    65,162       -       -       65,162  
 
*Amounts have been reclassified from the originally filed presentation in order to conform to the presentation included in the Form 10-K for the fiscal year ended December 30, 2012, and are not associated with the restatement adjustments.
 
   
Three Months Ended
 
   
June 26, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Statement of Comprehensive Income
             
Interest expense
  $ 293     $ 90     $ 383  
Income before income taxes
    19,067       (90 )     18,977  
Income tax expense
    6,014       (34 )     5,980  
Net income, including noncontrolling interests
    13,053       (56 )     12,997  
Net income, net of noncontrolling interests
    12,124       (56 )     12,068  
Comprehensive income
    12,539       (56 )     12,483  
Basic earnings per common share
    0.48       (0.01 )     0.47  
Earnings per common share - assuming dilution
    0.47       -       0.47  
 
   
As of and For The
 
   
Six Months Ended
 
   
June 26, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                 
Noncurrent deferred income tax liabilities
  $ 3,485     $ (2,202 )   $ 1,283  
Other long-term liabilities
    12,478       10,675       23,153  
Redeemable noncontrolling interests
    -       3,648       3,648  
Retained earnings
    271,703       (3,593 )     268,110  
Noncontrolling interests in subsidiaries
    8,528       (8,528 )     -  
Total stockholders' equity
    223,801       (12,121 )     211,680  
Condensed Consolidated Statement of Comprehensive Income
                 
Interest expense
  $ 901     $ 817     $ 1,718  
Income before income taxes
    45,847       (817 )     45,030  
Income tax expense
    15,245       (310 )     14,935  
Net income, including noncontrolling interests
    30,602       (507 )     30,095  
Net income, net of noncontrolling interests
    28,551       (507 )     28,044  
Comprehensive income
    31,361       (507 )     30,854  
Basic earnings per common share
    1.12       (0.02 )     1.10  
Earnings per common share - assuming dilution
    1.11       (0.02 )     1.09  
Consolidated Statement of Cash Flows
                       
Net income, including noncontrolling interests
  $ 30,602     $ (507 )   $ 30,095  
Deferred income taxes
    4,332       (310 )     4,022  
Other
    316       817       1,133  
Net cash provided by operating activities
    52,925       -       52,925  
 
   
December 25, 2011
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Condensed Consolidated Balance Sheet
                 
Noncurrent deferred income tax liabilities
  $ 9,147     $ (2,455 )   $ 6,692  
Other long-term liabilities
    25,611       11,065       36,676  
Redeemable noncontrolling interests
    -       3,965       3,965  
Retained earnings
    298,807       (4,006 )     294,801  
Noncontrolling interests in subsidiaries
    8,569       (8,569 )     -  
Total stockholders' equity
    218,222       (12,575 )     205,647  
 
   
December 26, 2010
 
   
As
Previously
Reported
   
Adjustments
   
As Restated
 
Consolidated Statement of Stockholders' Equity
                 
Retained earnings
  $ 243,152     $ (3,086 )   $ 240,066  
Noncontrolling interests in subsidiaries
    8,506       (8,506 )     -  
Total stockholders' equity
    207,200       (11,592 )     195,608