Noncontrolling Interests

3 Months Ended

Dec. 26, 2015

11.Noncontrolling Interests

Noncontrolling interests (“NCI”) are evaluated by the Company and are shown as either a liability, mezzanine equity (shown between liabilities and equity) or as permanent equity depending on the nature of the redeemable features at amounts based on formulas specific to each entity. Generally, mandatorily redeemable NCIs are classified as liabilities and non-mandatorily redeemable NCIs are classified as either temporary or permanent equity.

On June 22, 2012, the Company executed a Share Purchase and Sale Agreement under which the Company agreed to purchase a noncontrolling interest holder’s shares in Pause Cafe Estrie Inc., an entity in which the Company had a controlling interest subsequent to the Company’s third quarter of fiscal year 2015. The redeemable NCI was classified outside of stockholders’ equity in the Unaudited Consolidated Balance Sheets as mezzanine equity under the caption, Redeemable noncontrolling interests, and was measured at the greater of the amount of cash that would be paid if settlement occurred at the balance sheet date based on the formula in the Share Purchase and Sale Agreement and its historical value with any change from the prior period recognized in equity. On September 27, 2015, the Company purchased the remaining noncontrolling interest holder’s shares in Pause Cafe Estrie Inc. for approximately $4.6 million, resulting in the subsidiary being wholly-owned by the Company.

Net income attributable to NCIs reflects the portion of the net income of consolidated entities applicable to the NCI stockholders in the accompanying Unaudited Consolidated Statements of Operations. The net income attributable to NCIs is classified in the Unaudited Consolidated Statements of Operations as part of consolidated net income and deducted from total consolidated net income to arrive at the net income attributable to the Company.

The changes in the temporary equity attributable to the redeemable NCI for the thirteen weeks ended December 26, 2015 are as follows (in thousands):

	Equity attributable to redeemable noncontrolling interest
Balance at September 26, 2015	$	4,554
Net income	—
Adjustment to redemption value	—
Cash distributions	—
Other comprehensive income	58
Purchase of noncontrolling interest	(4,612		)

Balance at December 26, 2015	$	—