Document
 
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
 
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended July 1, 2018
 
or
[  ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ______ to ______
Commission File Number: 001-35625

https://cdn.kscope.io/bffb31441b26d2c44284b2e5c5f8ed76-blmnlogov3.jpg

BLOOMIN’ BRANDS, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
20-8023465
(State or other jurisdiction of incorporation or organization)
 
(IRS Employer Identification No.)
2202 North West Shore Boulevard, Suite 500, Tampa, Florida 33607
(Address of principal executive offices) (Zip Code)

(813) 282-1225
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x  NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES x  NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer  o Non-accelerated filer o (Do not check if a smaller reporting company)
Smaller reporting company o Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES  o  NO  x

As of July 31, 2018, 92,538,341 shares of common stock of the registrant were outstanding.
 
 
 
 
 


Table of Contents
BLOOMIN’ BRANDS, INC.



INDEX TO QUARTERLY REPORT ON FORM 10-Q
For the Quarterly Period Ended July 1, 2018
(Unaudited)

TABLE OF CONTENTS

 
Page No.
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 6.
 
 
 
 

2

Table of Contents
BLOOMIN’ BRANDS, INC.


PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA, UNAUDITED)
 
JULY 1, 2018
 
DECEMBER 31, 2017
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
81,694

 
$
128,263

Current portion of restricted cash and cash equivalents
4,521

 
1,280

Inventories
48,641

 
51,264

Other current assets, net
113,208

 
179,402

Total current assets
248,064

 
360,209

Property, fixtures and equipment, net
1,141,355

 
1,173,414

Goodwill
298,615

 
310,234

Intangible assets, net
511,442

 
522,290

Deferred income tax assets, net
67,945

 
60,486

Other assets, net
122,445

 
135,261

Total assets
$
2,389,866

 
$
2,561,894

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current Liabilities
 

 
 

Accounts payable
$
164,798

 
$
185,461

Accrued and other current liabilities
218,482

 
270,840

Unearned revenue
221,926


330,756

Current portion of long-term debt
25,964

 
26,335

Total current liabilities
631,170

 
813,392

Deferred rent
164,021

 
160,047

Deferred income tax liabilities
14,539

 
16,926

Long-term debt, net
1,113,765

 
1,091,769

Deferred gain on sale-leaseback transactions, net
182,501

 
188,086

Other long-term liabilities, net
192,400

 
210,443

Total liabilities
2,298,396

 
2,480,663

Commitments and contingencies (Note 13)


 


Stockholders’ Equity
 
 
 
Bloomin’ Brands Stockholders’ Equity
 
 
 
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of July 1, 2018 and December 31, 2017

 

Common stock, $0.01 par value, 475,000,000 shares authorized; 92,437,047 and 91,912,546 shares issued and outstanding as of July 1, 2018 and December 31, 2017, respectively
924

 
919

Additional paid-in capital
1,109,015

 
1,081,813

Accumulated deficit
(902,038
)
 
(913,191
)
Accumulated other comprehensive loss
(126,672
)
 
(99,199
)
Total Bloomin’ Brands stockholders’ equity
81,229

 
70,342

Noncontrolling interests
10,241

 
10,889

Total stockholders’ equity
91,470

 
81,231

Total liabilities and stockholders’ equity
$
2,389,866

 
$
2,561,894

 
The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents
BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)


 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018

JUNE 25, 2017

JULY 1, 2018

JUNE 25, 2017
Revenues
 
 
 
 
 
 
 
Restaurant sales
$
1,015,484

 
$
1,021,184

 
$
2,114,487

 
$
2,165,015

Franchise and other revenues
16,330

 
15,274

 
33,792

 
26,154

Total revenues
1,031,814

 
1,036,458

 
2,148,279

 
2,191,169

Costs and expenses
 

 
 

 
 

 
 

Cost of sales
322,790

 
323,130

 
674,922

 
687,878

Labor and other related
301,921

 
297,857

 
612,983

 
622,255

Other restaurant operating
238,379

 
248,412

 
491,724

 
499,536

Depreciation and amortization
50,782

 
48,063

 
100,902

 
94,653

General and administrative
76,129

 
77,056

 
144,825

 
148,997

Provision for impaired assets and restaurant closings
8,889

 
598

 
11,628

 
19,674

Total costs and expenses
998,890

 
995,116

 
2,036,984

 
2,072,993

Income from operations
32,924

 
41,342

 
111,295

 
118,176

Loss on extinguishment and modification of debt

 
(260
)
 

 
(260
)
Other (expense) income, net
(6
)
 
7,281

 
(5
)
 
7,230

Interest expense, net
(11,319
)
 
(9,543
)
 
(21,629
)
 
(18,684
)
Income before (benefit) provision for income taxes
21,599

 
38,820

 
89,661

 
106,462

(Benefit) provision for income taxes
(5,124
)
 
2,988

 
(3,199
)
 
20,992

Net income
26,723

 
35,832

 
92,860

 
85,470

Less: net income attributable to noncontrolling interests
2

 
699

 
741

 
1,712

Net income attributable to Bloomin’ Brands
$
26,721

 
$
35,133

 
$
92,119

 
$
83,758

 
 
 
 
 
 
 
 
Net income
$
26,723

 
$
35,832

 
$
92,860

 
$
85,470

Other comprehensive (loss) income:
 
 
 
 
 
 
 
Foreign currency translation adjustment
(30,044
)
 
(9,118
)
 
(28,695
)
 
11,371

Unrealized gain (loss) on derivatives, net of tax
296

 
(610
)
 
1,184

 
(509
)
Reclassification of adjustment for loss on derivatives included in Net income, net of tax
71

 
643

 
379

 
1,427

Comprehensive (loss) income
(2,954
)
 
26,747

 
65,728

 
97,759

Less: comprehensive income attributable to noncontrolling interests
360

 
757

 
1,081

 
1,682

Comprehensive (loss) income attributable to Bloomin’ Brands
$
(3,314
)
 
$
25,990

 
$
64,647

 
$
96,077

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.29

 
$
0.36

 
$
1.00

 
$
0.83

Diluted
$
0.28

 
$
0.34

 
$
0.97

 
$
0.80

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
92,120

 
98,852

 
92,194

 
100,963

Diluted
94,361

 
102,421

 
95,072

 
104,417

 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.09

 
$
0.08

 
$
0.18

 
$
0.16

 
The accompanying notes are an integral part of these consolidated financial statements.

4

Table of Contents
BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)

 
BLOOMIN’ BRANDS, INC.
 
 
 
 

COMMON STOCK

ADDITIONAL PAID-IN CAPITAL
 
ACCUM-ULATED DEFICIT

ACCUMULATED OTHER
COMPREHENSIVE LOSS

NON-CONTROLLING INTERESTS

TOTAL
 
SHARES
 
AMOUNT
 
 
 
 
 
Balance, December 31, 2017
91,913

 
$
919

 
$
1,081,813

 
$
(913,191
)
 
$
(99,199
)
 
$
10,889

 
$
81,231

Net income

 

 

 
92,119

 

 
1,063

 
93,182

Other comprehensive (loss) income, net of tax

 

 

 

 
(27,473
)
 
341

 
(27,132
)
Cash dividends declared, $0.18 per common share

 

 
(16,734
)
 

 

 

 
(16,734
)
Repurchase and retirement of common stock
(3,404
)
 
(34
)
 

 
(80,966
)
 

 

 
(81,000
)
Stock-based compensation

 

 
11,178

 

 

 

 
11,178

Common stock issued under stock plans (1)
3,928

 
39

 
33,080

 

 

 

 
33,119

Change in the redemption value of redeemable interests

 

 
(322
)
 

 

 

 
(322
)
Distributions to noncontrolling interests

 

 

 

 

 
(3,372
)
 
(3,372
)
Contributions from noncontrolling interests

 

 

 

 

 
1,320

 
1,320

Balance, July 1, 2018
92,437

 
$
924

 
$
1,109,015

 
$
(902,038
)
 
$
(126,672
)
 
$
10,241

 
$
91,470

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(CONTINUED...)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


5

Table of Contents
BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)

 
BLOOMIN’ BRANDS, INC.
 
 
 
 
 
COMMON STOCK
 
ADDITIONAL PAID-IN CAPITAL
 
ACCUM-ULATED DEFICIT
 
ACCUMULATED OTHER
COMPREHENSIVE LOSS
 
NON-
CONTROLLING
INTERESTS
 
TOTAL
 
SHARES
 
AMOUNT
 
 
 
 
 
Balance, December 25, 2016
103,922

 
$
1,039

 
$
1,079,583

 
$
(756,070
)
 
$
(111,143
)
 
$
12,654

 
$
226,063

Net income

 

 

 
83,758

 

 
1,837

 
85,595

Other comprehensive income (loss), net of tax

 

 

 

 
12,319

 
(38
)
 
12,281

Cash dividends declared, $0.16 per common share

 

 
(16,308
)
 

 

 

 
(16,308
)
Repurchase and retirement of common stock
(9,917
)
 
(99
)
 

 
(198,629
)
 

 

 
(198,728
)
Stock-based compensation

 


 
12,716

 

 

 

 
12,716

Common stock issued under stock plans (1)
1,003

 
10

 
4,597

 
(143
)
 

 

 
4,464

Change in the redemption value of redeemable interests

 

 
(126
)
 

 

 

 
(126
)
Purchase of noncontrolling interests, net of tax of $45

 

 
(713
)
 

 

 
(179
)
 
(892
)
Distributions to noncontrolling interests

 

 

 

 

 
(3,754
)
 
(3,754
)
Contributions from noncontrolling interests

 

 

 

 

 
481

 
481

Cumulative-effect from a change in accounting principle

 

 

 
14,364

 

 

 
14,364

Balance, June 25, 2017
95,008

 
$
950

 
$
1,079,749

 
$
(856,720
)
 
$
(98,824
)
 
$
11,001

 
$
136,156

________________
(1)
Net of forfeitures and shares withheld for employee taxes.

The accompanying notes are an integral part of these consolidated financial statements.

6

Table of Contents
BLOOMIN’ BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS, UNAUDITED)


 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018
 
JUNE 25, 2017
Cash flows provided by operating activities:
 
 
 
Net income
$
92,860

 
$
85,470

Adjustments to reconcile Net income to cash provided by operating activities:
 

 
 

Depreciation and amortization
100,902

 
94,653

Amortization of deferred discounts and issuance costs
1,288

 
1,637

Amortization of deferred gift card sales commissions
15,219

 
13,756

Provision for impaired assets and restaurant closings
11,628

 
19,674

Stock-based and other non-cash compensation expense
13,263

 
13,901

Deferred income tax (benefit) expense
(264
)
 
1,686

Gain on sale of a business or subsidiary

 
(7,284
)
Loss on extinguishment and modification of debt

 
260

Recognition of deferred gain on sale-leaseback transactions
(6,142
)
 
(5,816
)
Other non-cash items, net
1,257

 
1,802

Change in assets and liabilities
(129,928
)
 
(36,602
)
Net cash provided by operating activities
100,083

 
183,137

Cash flows used in investing activities:
 

 
 

Proceeds from disposal of property, fixtures and equipment
6,164

 
4

Proceeds from sale-leaseback transactions, net
4,695

 
49,780

Proceeds from sale of a business, net of cash divested

 
33,994

Capital expenditures
(92,528
)
 
(116,256
)
Other investments, net
(275
)
 
(1,123
)
Net cash used in investing activities
$
(81,944
)
 
$
(33,601
)
 
 
 
 
 
(CONTINUED...)
 

7

Table of Contents
BLOOMIN’ BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS, UNAUDITED)


 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018
 
JUNE 25, 2017
Cash flows used in financing activities:
 
 
 
Proceeds from issuance of long-term debt, net
$

 
$
124,438

Repayments of long-term debt
(12,876
)
 
(64,399
)
Proceeds from borrowings on revolving credit facilities, net
266,829

 
341,000

Repayments of borrowings on revolving credit facilities
(234,500
)
 
(364,500
)
Proceeds from failed sale-leaseback transactions, net

 
5,942

Proceeds from the exercise of share-based compensation
33,119

 
4,607

Distributions to noncontrolling interests
(3,372
)
 
(3,754
)
Contributions from noncontrolling interests
1,320

 
481

Purchase of limited partnership and noncontrolling interests
(1,443
)
 
(4,024
)
Repayments of partner deposits and accrued partner obligations
(9,646
)
 
(7,862
)
Repurchase of common stock
(81,000
)
 
(198,871
)
Cash dividends paid on common stock
(16,734
)
 
(16,308
)
Net cash used in financing activities
(58,303
)
 
(183,250
)
Effect of exchange rate changes on cash and cash equivalents
(3,164
)
 
1,002

Net decrease in cash, cash equivalents and restricted cash
(43,328
)
 
(32,712
)
Cash, cash equivalents and restricted cash as of the beginning of the period
129,543

 
136,186

Cash, cash equivalents and restricted cash as of the end of the period
$
86,215

 
$
103,474

Supplemental disclosures of cash flow information:
 

 
 

Cash paid for interest
$
20,488

 
$
17,393

Cash paid for income taxes, net of refunds
6,675

 
22,695

Supplemental disclosures of non-cash investing and financing activities:
 

 
 

Increase (decrease) in liabilities from the acquisition of property, fixtures and equipment or capital leases
$
1,430

 
$
(2,564
)
Purchase of noncontrolling interest included in accrued and other current liabilities

 
898


 The accompanying notes are an integral part of these consolidated financial statements.

8

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


1.    Description of the Business and Basis of Presentation

Description of the Business - Bloomin’ Brands, Inc., through its subsidiaries (“Bloomin’ Brands” or the “Company”), owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Each of the Company’s concepts has additional restaurants in which it has no direct investment and are operated under franchise agreements.

Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Recently Adopted Financial Accounting Standards - On January 1, 2018, the Company elected to early adopt Accounting Standards Update (“ASU”) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” (“ASU No. 2017-04”) on a prospective basis. ASU No. 2017-04 eliminates the second step of goodwill impairment, which requires a hypothetical purchase price allocation. Under ASU No. 2017-04, goodwill impairment is calculated as the amount a reporting unit’s carrying value exceeds its calculated fair value. The adoption of ASU No. 2017-04 did not impact the Company’s Consolidated Financial Statements. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

The Company performed its annual assessment for impairment of goodwill and other indefinite-lived intangible assets during the second quarters of 2018 and 2017. In connection with these assessments, the Company did not record any goodwill or indefinite-lived intangible impairment charges.

On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue Recognition (Topic 606), Revenue from Contracts with Customers” (“ASU No. 2014-09”) using the full retrospective transition method. Under ASU No. 2014-09, revenue is recognized in an amount that reflects the consideration an entity expects to receive for the transfer of goods and services. The standard also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. Under the new standard, the Company recognizes gift card breakage proportional to redemptions, which are highest in the Company’s first fiscal quarter. Previously, under the remote method, the majority of breakage revenue was recorded in the Company’s fourth fiscal quarter corresponding with the timing of the original gift card sale. Advertising fees charged to franchisees, which were previously recorded as a reduction to Other restaurant operating expenses, are recognized as Franchise revenue. In addition, initial franchise and renewal fees are recognized over the term of the franchise agreements. In connection with adoption of ASU No. 2014-09, a cumulative effect adjustment of $33.1 million, net of tax, was recorded as a credit to the ending balance of Accumulated deficit as of December 27, 2015.


9

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

The following table includes a restatement of the Company’s Consolidated Statement of Operations for the retrospective adoption of ASU No. 2014-09 during the periods indicated:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JUNE 25, 2017
 
JUNE 25, 2017
(dollars in thousands, except per share data)
AS REPORTED
 
2014-09 IMPACT
 
AS RESTATED
 
AS REPORTED
 
2014-09 IMPACT
 
AS RESTATED
Revenues
 
 
 
 
 
 
 
 
 
 
 
Restaurant sales
$
1,019,957

 
$
1,227

 
$
1,021,184

 
$
2,155,445

 
$
9,570

 
$
2,165,015

Franchise and other revenues
13,025

 
2,249

 
15,274

 
21,360

 
4,794

 
26,154

Total revenues
$
1,032,982

 
$
3,476

 
$
1,036,458

 
$
2,176,805

 
$
14,364

 
$
2,191,169

Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
Other restaurant operating
$
244,124

 
$
4,288

 
$
248,412

 
$
492,064

 
$
7,472

 
$
499,536

Income from operations
$
42,154

 
$
(812
)
 
$
41,342

 
$
111,284

 
$
6,892

 
$
118,176

Income before provision for income taxes
$
39,632

 
$
(812
)
 
$
38,820

 
$
99,570

 
$
6,892

 
$
106,462

Provision for income taxes
$
3,303

 
$
(315
)
 
$
2,988

 
$
18,318

 
$
2,674

 
$
20,992

Net income
$
36,329

 
$
(497
)
 
$
35,832

 
$
81,252

 
$
4,218

 
$
85,470

Net income attributable to Bloomin’ Brands
$
35,630

 
$
(497
)
 
$
35,133

 
$
79,540

 
$
4,218

 
$
83,758

 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
0.36

 
$
(0.01
)
 
$
0.36

 
$
0.79

 
$
0.04

 
$
0.83

Diluted earnings per share
$
0.35

 
$

 
$
0.34

 
$
0.76

 
$
0.04

 
$
0.80


The following table includes a restatement of the Company’s Consolidated Balance Sheet as of December 31, 2017 for the retrospective adoption of ASU No. 2014-09:
 
DECEMBER 31, 2017
(dollars in thousands)
AS REPORTED
 
2014-09 IMPACT
 
AS RESTATED
ASSETS
 
 
 
 
 
Deferred income tax assets, net
$
71,499

 
$
(11,013
)
 
$
60,486

Total assets
$
2,572,907

 
$
(11,013
)
 
$
2,561,894

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Unearned revenue
 
 
 
 
 
Deferred gift card revenue
$
371,455

 
$
(47,827
)
 
$
323,628

Deferred loyalty revenue
6,667

 

 
6,667

Deferred franchise fees - current
105

 
356

 
461

Total Unearned revenue
$
378,227

 
$
(47,471
)
 
$
330,756

Total current liabilities
$
860,863

 
$
(47,471
)
 
$
813,392

Other long-term liabilities, net (1)
$
205,745

 
$
4,698

 
$
210,443

Total liabilities
$
2,523,436

 
$
(42,773
)
 
$
2,480,663

Bloomin’ Brands Stockholders’ Equity
 
 
 
 
 
Accumulated deficit
$
(944,951
)
 
$
31,760

 
$
(913,191
)
Total Bloomin’ Brands stockholders’ equity
$
38,582

 
$
31,760

 
$
70,342

Total stockholders’ equity
$
49,471

 
$
31,760

 
$
81,231

Total liabilities and stockholders’ equity
$
2,572,907

 
$
(11,013
)
 
$
2,561,894

____________________
(1)
Includes the non-current portion of deferred franchise fees.

See Note 2 - Revenue Recognition for required disclosures under ASU No. 2014-09.


10

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

Effective June 26, 2017, the Company adopted ASU No. 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash” (“ASU No. 2016-18”). ASU No. 2016-18 provides guidance on the presentation of restricted cash and restricted cash equivalents, which are now included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the statements of cash flows. Using the retrospective transition method required under the standard, the Company has adjusted the presentation of its Condensed Consolidated Statements of Cash Flows for the period presented. The adoption of ASU No. 2016-18 did not have any other impact on the Company’s Consolidated Financial Statements.

The following table provides additional details by financial statement line item of the restated presentation in the Company’s Condensed Consolidated Statement of Cash Flows for the twenty-six weeks ended June 25, 2017:
 
TWENTY-SIX WEEKS ENDED
 
JUNE 25, 2017
(dollars in thousands)
AS REPORTED
 
2016-18 IMPACT
 
AS RESTATED
Cash flows used in investing activities:
 
 
 
 
 
Decrease in restricted cash
$
14,969

 
$
(14,969
)
 
$

Increase in restricted cash
$
(5,957
)
 
$
5,957

 
$

Net cash used in investing activities
$
(24,589
)
 
$
(9,012
)
 
$
(33,601
)
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
$
(23,702
)
 
$
(9,010
)
 
$
(32,712
)
Cash, cash equivalents and restricted cash as of the beginning of the period
127,176

 
9,010

 
136,186

Cash, cash equivalents and restricted cash as of the end of the period
$
103,474

 
$

 
$
103,474


Recently Issued Financial Accounting Standards Not Yet Adopted - In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02: “Leases (Topic 842)” (“ASU No. 2016-02”). ASU No. 2016-02 requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2016-02 is effective for the Company in 2019 and must be adopted using a modified retrospective approach. In preparation for adoption of ASU No. 2016-02, the Company has implemented a new lease accounting system. The Company is currently evaluating practical expedients and accounting policy elections, and assessing the overall financial statement impact. The Company expects the adoption of ASU No. 2016-02 to have a significant impact on its Consolidated Balance Sheets due to recognition of right-of-use assets and lease liabilities related to real estate and equipment under operating lease agreements, but will likely have an insignificant impact on its Consolidated Statement of Operations and Comprehensive Income. The Company’s evaluation of ASU No. 2016-02 is ongoing and may identify additional impacts on its Consolidated Financial Statements and related disclosures.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU No. 2017-12”) which provides guidance for reporting the economic results of hedging activities and to simplify the disclosures of risk exposures and hedging strategies. ASU No. 2017-12 will be effective for the Company in 2019, with early adoption permitted and is not expected to have a material impact on the Company’s Consolidated Financial Statements and related disclosures.

Reclassifications - The Company reclassified certain items in the accompanying Consolidated Financial Statements for prior periods to be comparable with the classification for the current period.


11

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

2.    Revenue Recognition

The Company records food and beverage revenues, net of discounts and taxes, upon delivery to the customer. Franchise-related revenues are included in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. Royalties, which are a percentage of net sales of the franchisee, are recognized as revenue in the period which the sales are reported to have occurred. The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
(dollars in thousands)
 
 
(Restated) (1)
 
 
 
(Restated) (1)
Revenues
 
 
 
 
 
 
 
Restaurant sales
$
1,015,484

 
$
1,021,184

 
$
2,114,487

 
$
2,165,015

Franchise and other revenues:
 
 
 
 
 
 
 
Franchise revenue
$
13,134

 
$
11,565

 
$
27,349

 
$
20,662

Other revenue
3,196

 
3,709

 
6,443

 
5,492

Total Franchise and other revenues
$
16,330

 
$
15,274

 
$
33,792

 
$
26,154

Total revenues
$
1,031,814

 
$
1,036,458

 
$
2,148,279

 
$
2,191,169

____________________
(1)
See Note 1 - Description of the Business and Basis of Presentation for details of the impact of implementing ASU No. 2014-09.

The following table includes the disaggregation of Restaurant sales and Franchise revenue, by restaurant concept and major international market, for the periods indicated:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018
 
JULY 1, 2018
(dollars in thousands)
RESTAURANT SALES
 
FRANCHISE REVENUE
 
RESTAURANT SALES
 
FRANCHISE REVENUE
U.S.
 
 
 
 
 
 
 
Outback Steakhouse (1)
$
521,719

 
$
10,157

 
$
1,093,198

 
$
21,231

Carrabba’s Italian Grill (1)
163,454

 
157

 
337,381

 
304

Bonefish Grill
149,054

 
233

 
305,903

 
473

Fleming’s Prime Steakhouse & Wine Bar
73,312

 

 
154,302

 

Other
1,398

 

 
2,497

 

U.S. Total
$
908,937

 
$
10,547

 
$
1,893,281

 
$
22,008

International
 
 
 
 
 
 
 
Outback Steakhouse-Brazil
$
87,809

 
$

 
$
182,932

 
$

Other
18,738

 
2,587

 
38,274

 
5,341

International Total
$
106,547

 
$
2,587

 
$
221,206

 
$
5,341

Total
$
1,015,484

 
$
13,134

 
$
2,114,487

 
$
27,349


12

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JUNE 25, 2017
 
JUNE 25, 2017
(dollars in thousands)
RESTAURANT SALES
 
FRANCHISE REVENUE
 
RESTAURANT SALES
 
FRANCHISE REVENUE
U.S.
(Restated) (2)
 
(Restated) (2)
 
(Restated) (2)
 
(Restated) (2)
Outback Steakhouse (1)
$
519,060

 
$
8,731

 
$
1,130,535

 
$
14,965

Carrabba’s Italian Grill (1)
168,372

 
156

 
351,022

 
245

Bonefish Grill
150,743

 
258

 
314,387

 
517

Fleming’s Prime Steakhouse & Wine Bar
70,089

 

 
147,875

 

U.S. Total
$
908,264

 
$
9,145

 
$
1,943,819

 
$
15,727

International
 
 
 
 
 
 
 
Outback Steakhouse-Brazil
$
95,801

 
$

 
$
186,691

 
$

Other
17,119

 
2,420

 
34,505

 
4,935

International Total
$
112,920

 
$
2,420

 
$
221,196

 
$
4,935

Total
$
1,021,184

 
$
11,565

 
$
2,165,015

 
$
20,662

____________________
(1)
In 2017, the Company sold 53 Outback Steakhouse restaurants and one Carrabba’s Italian Grill restaurant, which are now operated as franchises.
(2)
See Note 1 - Description of the Business and Basis of Presentation for details of the impact of implementing ASU No. 2014-09.

Gift Card Revenue - Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon redemption by the customer. Gift cards sold at a discount are recorded as revenue upon redemption of the associated gift cards at an amount net of the related discount. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized using estimates based on historical redemption patterns. If actual redemptions vary from the estimated breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for breakage. Gift card sales that are accompanied by a bonus card to be used by the customer at a future visit result in a separate deferral of a portion of the original gift card sale. Revenue is recorded when the bonus card is redeemed at the estimated fair market value of the bonus card. Approximately 87% of the current deferred gift card revenue is expected to be recognized over the next 12 months.

Gift card sales commissions paid to third-party providers are initially capitalized and subsequently amortized to Other restaurant operating expenses based on historical gift card redemption patterns.

Advertising Fees - Advertising fees charged to franchisees are recognized as Franchise revenue in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income.

Franchise Fees - Initial franchise and renewal fees are recognized over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and renewal periods was approximately 15 years as of July 1, 2018.

Loyalty Program - The Company maintains a customer loyalty program, Dine Rewards, in the U.S., where customers have the ability to earn a reward after a number of qualified visits. The Company has developed an estimated value of the partial reward earned from each qualified visit, which is recorded as deferred revenue. Each reward has a maximum value and must be redeemed within three months of earning such reward. The revenue associated with the fair value of the qualified visit is recognized upon the earlier of redemption or expiration of the reward. The Company applies the practical expedient to exclude disclosures regarding loyalty program remaining performance obligations which have original expected durations of one year or less.

13

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated:
(dollars in thousands)
JULY 1, 2018
 
DECEMBER 31, 2017
Other current assets, net
 
 
 
Deferred gift card sales commissions
$
9,175

 
$
16,231

 
 
 
 
Unearned revenue
 
 
 
Deferred gift card revenue (1)
$
213,286

 
$
323,628

Deferred loyalty revenue
8,145

 
6,667

Deferred franchise fees - current (1)
495

 
461

Total Unearned revenue
$
221,926

 
$
330,756

 
 
 
 
Other long-term liabilities, net
 
 
 
Deferred franchise fees - non-current (1)
$
4,661

 
$
4,698

____________________
(1)
See Note 1 - Description of the Business and Basis of Presentation for details of the impact of implementing ASU No. 2014-09 on the Company’s Consolidated Balance Sheet as of December 31, 2017.

The following table is a rollforward of deferred gift card sales commissions for the periods indicated:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Balance, beginning of period
$
10,039

 
$
10,226

 
$
16,231

 
$
15,584

Deferred gift card sales commissions amortization
(5,804
)
 
(5,854
)
 
(15,219
)
 
(13,756
)
Deferred gift card sales commissions capitalization
5,400

 
5,060

 
9,258

 
8,790

Other
(460
)
 
(14
)
 
(1,095
)
 
(1,200
)
Balance, end of period
$
9,175

 
$
9,418

 
$
9,175

 
$
9,418


The Company applies the portfolio approach practical expedient to account for gift card contracts and performance obligations. The following table is a rollforward of unearned gift card revenue for the periods indicated:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Balance, beginning of period
$
227,783

 
$
217,872

 
$
323,628

 
$
331,803

Gift card sales
78,837

 
80,376

 
135,122

 
139,246

Gift card redemptions
(88,496
)
 
(91,482
)
 
(233,052
)
 
(255,635
)
Gift card breakage (1)
(4,838
)
 
(4,961
)
 
(12,412
)
 
(13,609
)
Balance, end of period
$
213,286

 
$
201,805

 
$
213,286

 
$
201,805

____________________
(1)
See Note 1 - Description of the Business and Basis of Presentation for details of the impact of implementing ASU No. 2014-09 for the thirteen and twenty-six weeks ended June 25, 2017.


14

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

3.    Impairments and Exit Costs

The components of Provision for impaired assets and restaurant closings are as follows:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Impairment losses
 
 
 
 
 
 
 
U.S.
$
284

 
$
12

 
$
395

 
$
932

International
4,437

 

 
6,597

 

Total impairment losses
$
4,721

 
$
12

 
$
6,992

 
$
932

Restaurant closure expenses
 
 
 
 
 
 
 
U.S.
$
674

 
$
586

 
$
1,022

 
$
18,742

International
3,494

 

 
3,614

 

Total restaurant closure expenses
$
4,168

 
$
586

 
$
4,636

 
$
18,742

Provision for impaired assets and restaurant closings
$
8,889

 
$
598

 
$
11,628

 
$
19,674


Closure Initiatives - Since February 2017, the Company decided to close certain underperforming restaurants in the U.S. and certain Abbraccio restaurants outside of the core markets of São Paulo and Rio de Janeiro in Brazil and in 2016 the Company decided to close certain Bonefish Grill restaurants (collectively, the “Closure Initiatives”). Following is a summary of expenses related to the Closure Initiatives recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated:
 
INCOME STATEMENT LOCATION
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
 
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Impairment, facility closure and other expenses (1)
Provision for impaired assets and restaurant closings
 
$
1,607

 
$
(244
)
 
$
1,632

 
$
18,012

Severance and other expenses
General and administrative
 
110

 
766

 
232

 
2,948

Reversal of deferred rent liability
Other restaurant operating
 
(147
)
 
180

 
(147
)
 
(4,761
)
Total
 
 
$
1,570

 
$
702

 
$
1,717

 
$
16,199

________________
(1)
The Company recognized asset impairment and closure charges of $1.0 million within the International segment related to the Closure Initiatives during the thirteen and twenty-six weeks ended July 1, 2018. All other asset impairment and closure charges for the periods presented were recognized within the U.S. segment.

International Restructuring - During the thirteen and twenty-six weeks ended July 1, 2018, the Company recognized asset impairment and closure charges of $6.9 million and $9.2 million, respectively, related to the restructuring of certain international markets, including China.

The remaining restaurant impairment and closing charges resulted primarily from the carrying value of a restaurant’s assets exceeding its estimated fair market value, primarily due to locations identified for remodel, relocation or closure.


15

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

Projected Future Expenses and Cash Expenditures - The Company expects to incur additional charges for the Closure Initiatives through Q3 2019, including costs associated with lease obligations, employee terminations and other closure-related obligations. Following is a summary of remaining estimated pre-tax expense and future cash expenditures, by type, as of July 1, 2018:
Estimated future expense (dollars in millions)
CLOSURE INITIATIVES
Lease related liabilities, net of subleases
$
2.9

to
$
3.4

Employee severance and other obligations
0.3

to
0.6

Total estimated future expense
$
3.2

to
$
4.0

 
 
 
 
Total estimated future cash expenditures (dollars in millions)
$
22.3

to
$
27.4


Total future undiscounted cash expenditures for the Closure Initiatives, primarily related to lease liabilities, are expected to occur over the remaining lease terms with the final term ending in January 2029.

Accrued Facility Closure and Other Costs Rollforward - The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the Closure Initiatives, during the twenty-six weeks ended July 1, 2018:
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
Balance, beginning of the period
$
22,709

Charges
8,071

Cash payments
(8,186
)
Adjustments
(3,435
)
Balance, end of the period (1)
$
19,159

________________
(1)
As of July 1, 2018, the Company had exit-related accruals of $6.0 million recorded in Accrued and other current liabilities and $13.2 million recorded in Other long-term liabilities, net in the Consolidated Balance Sheet.


16

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

4.    Earnings Per Share

The following table presents the computation of basic and diluted earnings per share:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
(in thousands, except per share data)
 
 
(Restated) (1)
 
 
 
(Restated) (1)
Net income attributable to Bloomin’ Brands
$
26,721

 
$
35,133

 
$
92,119

 
$
83,758

 
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
92,120

 
98,852

 
92,194

 
100,963

 
 
 
 
 
 
 
 
Effect of diluted securities:
 
 
 
 
 
 
 
Stock options
1,861

 
3,128

 
2,406

 
3,030

Nonvested restricted stock and restricted stock units
380

 
433

 
452

 
394

Nonvested performance-based share units

 
8

 
20

 
30

Diluted weighted average common shares outstanding
94,361

 
102,421

 
95,072

 
104,417

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.29

 
$
0.36

 
$
1.00

 
$
0.83

Diluted earnings per share
$
0.28

 
$
0.34

 
$
0.97

 
$
0.80

____________________
(1)
See Note 1 - Description of the Business and Basis of Presentation for details of the Net income and Earnings per share impact of implementing ASU No. 2014-09.

Dilutive securities outstanding not included in the computation of earnings per share because their effect was antidilutive were as follows:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(shares in thousands)
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Stock options
2,133

 
5,359

 
2,041

 
5,462

Nonvested restricted stock and restricted stock units
16

 
153

 
63

 
172

Nonvested performance-based share units
197

 
262

 
180

 
317


5.    Stock-based Compensation Plans

The Company recognized stock-based compensation expense as follows:
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
 
JUNE 25, 2017
 
JULY 1, 2018
 
JUNE 25, 2017
Stock options
$
1,628

 
$
2,944

 
$
3,526

 
$
5,699

Restricted stock and restricted stock units
2,455

 
2,689

 
4,787

 
5,242

Performance-based share units
1,874

 
820

 
2,470

 
1,236

 
$
5,957

 
$
6,453

 
$
10,783

 
$
12,177



17

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

The following table presents a summary of the Company’s stock option activity:
(in thousands, except exercise price and contractual life)
OPTIONS
 
WEIGHTED-
AVERAGE
EXERCISE
PRICE
 
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL
LIFE (YEARS)
 
AGGREGATE
INTRINSIC
VALUE
Outstanding as of December 31, 2017
10,051

 
$
14.89

 
5.2
 
$
71,373

Granted
488

 
24.01

 
 
 
 
Exercised
(3,566
)
 
10.23

 
 
 
 
Forfeited or expired
(178
)
 
20.47

 
 
 
 
Outstanding as of July 1, 2018
6,795

 
$
17.85

 
5.9
 
$
25,734

Exercisable as of July 1, 2018
4,461

 
$
17.02

 
4.6
 
$
21,278


Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows:
 
TWENTY-SIX WEEKS ENDED
 
JULY 1, 2018

JUNE 25, 2017
Assumptions:
 
 
 
Weighted-average risk-free interest rate (1)
2.66
%
 
1.93
%
Dividend yield (2)
1.50
%
 
1.84
%
Expected term (3)
5.8 years

 
6.3 years

Weighted-average volatility (4)
32.76
%
 
33.73
%
 
 
 
 
Weighted-average grant date fair value per option
$
7.23

 
$
5.09

________________
(1)
Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option.
(2)
Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option.
(3)
Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options.
(4)
Based on the historical volatility of the Company’s stock.

The following represents stock option compensation information for the periods indicated:
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JULY 1, 2018
 
JUNE 25, 2017
Intrinsic value of options exercised
$
48,044

 
$
7,588

Excess tax benefits for tax deductions related to the exercise of stock options
$
7,837

 
$
1,299

Cash received from option exercises, net of tax withholding
$
36,460

 
$
6,835


During the twenty-six weeks ended July 1, 2018, the Company made grants to its employees of 0.4 million time-based restricted stock units and 0.2 million performance-based share units.

18

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of July 1, 2018:
 
UNRECOGNIZED COMPENSATION EXPENSE
(dollars in thousands)
 
REMAINING WEIGHTED-AVERAGE VESTING PERIOD
(in years)
Stock options
$
11,518

 
2.5
Restricted stock units
$
19,683

 
2.7
Performance-based share units
$
9,435

 
1.3

As of July 1, 2018, the maximum number of shares of common stock available for issuance pursuant to the Bloomin’ Brands, Inc. 2016 Omnibus Incentive Compensation Plan was 4,271,424.

6.    Other Current Assets, Net

Other current assets, net, consisted of the following:
(dollars in thousands)
JULY 1, 2018
 
DECEMBER 31, 2017
Prepaid expenses
$
43,105

 
$
40,688

Accounts receivable - gift cards, net
17,339

 
66,361

Accounts receivable - vendors, net
7,895

 
19,483

Accounts receivable - franchisees, net
2,055

 
2,017

Accounts receivable - other, net
18,886

 
22,808

Deferred gift card sales commissions
9,175

 
16,231

Assets held for sale
5,606

 
6,217

Other current assets, net
9,147

 
5,597

 
$
113,208

 
$
179,402


7.           Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following:
(dollars in thousands)
JULY 1, 2018
 
DECEMBER 31, 2017
Accrued payroll and other compensation
$
86,447

 
$
113,636

Accrued insurance
23,765

 
23,482

Other current liabilities
108,270

 
133,722

 
$
218,482

 
$
270,840



19

Table of Contents
BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) - Continued

8.    Long-term Debt, Net

Following is a summary of outstanding long-term debt:
 
JULY 1, 2018
 
DECEMBER 31, 2017
(dollars in thousands)
OUTSTANDING BALANCE
 
INTEREST RATE
 
OUTSTANDING BALANCE
 
INTEREST RATE
Senior Secured Credit Facility:
 
 
 
 
 
 
 
Term loan A (1)
$
487,500

 
3.78
%
 
$
500,000

 
3.27
%
Revolving credit facility (1)
633,500

 
3.77
%
 
600,000

 
3.26
%
Total Senior Secured Credit Facility
$
1,121,000

 
 
 
$
1,100,000

 
 
Financing obligations
19,571

 
7.66% to 7.82%

 
19,579

 
7.52% to 7.82%

Capital lease obligations
2,958

 
 
 
2,015

 
 
Other notes payable
141

 
1.03% to 2.18%

 
904

 
0.00% to 2.18%

Less: unamortized debt discount and issuance costs
(3,941
)
 
 
 
(4,394
)
 
 
Total debt, net
$
1,139,729

 
 
 
$
1,118,104

 
 
Less: current portion of long-term debt
(25,964
)
 
 
 
(26,335
)
 
 
Long-term debt, net
$
1,113,765

 
 
 
$
1,091,769

 
 
________________
(1)
Represents the weighted-average interest rate for the respective period.

Debt Covenants - As of July 1, 2018 and December 31, 2017, the Company was in compliance with its debt covenants.

9.
Stockholders’ Equity

Share Repurchases - On February 16, 2018, the Company’s Board of Directors (the “Board”) canceled the remaining $55.0 million of authorization under the 2017 Share Repurchase Program and approved a new $150.0 million authorization (the “2018 Share Repurchase Program”). The 2018 Share Repurchase Program will expire on August 16, 2019. As of July 1, 2018, $69.0 million remained available for repurchase under the 2018 Share Repurchase Program. Following is a summary of the shares repurchased under the Company’s share repurchase program during fiscal year 2018:

NUMBER OF SHARES
(in thousands)
 
AVERAGE REPURCHASE PRICE PER SHARE
 
AMOUNT
(dollars in thousands)
First fiscal quarter
2,116

 
$
24.10

 
$
50,996

Second fiscal quarter
1,287

 
$
23.31

 
30,004

Total common stock repurchases
3,403

 
$
23.80

 
$
81,000


Dividends - The Company declared and paid dividends per share during fiscal year 2018 as follows:
 
DIVIDENDS PER SHARE
 
AMOUNT
(dollars in thousands)
First fiscal quarter
$
0.09

 
$
8,371

Second fiscal quarter
0.09

 
8,363

Total cash dividends declared and paid
$