Document and Entity Information - $ / shares	3 Months Ended
Document and Entity Information - $ / shares	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Entity File Number	001-35625
Entity Registrant Name	Bloomin' Brands, Inc.
Entity Incorporation, State	Delaware
Entity Tax Identification Number	208023465
Entity Address Line One	2202 North West Shore Boulevard
Entity Address Line Two	Suite 500
Entity Address City	Tampa
Entity Address State	Florida
Entity Address Postal Zip Code	33607
City Area Code	813
Local Phone Number	282-1225
Description of Class	Common
Security Trading Currency	USD
Par Value Per Share	$ 0.01
Trading Symbol	BLMN
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		91,705,720
Entity Central Index Key	0001546417
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Current assets
Cash and cash equivalents	$ 82,766	$ 71,823
Inventories	73,149	72,812
Other current assets, net	93,909	190,848
Total current assets	249,824	335,483
Property, fixtures and equipment, net	1,079,494	1,115,929
Operating lease right-of-use assets	1,276,311	0
Goodwill	297,784	295,427
Intangible assets, net	479,744	503,972
Deferred income tax assets, net	49,766	92,990
Other assets, net	119,624	120,973
Total assets	3,552,547	2,464,774
Current liabilities
Accounts payable	166,320	174,488
Accrued and other current liabilities	378,272	246,653
Unearned revenue	250,703	342,708
Current portion of long-term debt	26,680	27,190
Total current liabilities	821,975	791,039
Non-current operating lease liabilities	1,285,073	0
Deferred rent	0	167,027
Deferred income tax liabilities	14,730	14,790
Long-term debt, net	1,037,630	1,067,585
Long-term portion of deferred gain on sale-leaseback transactions, net	0	177,983
Other long-term liabilities, net	140,776	191,533
Total liabilities	3,300,184	2,409,957
Commitments and contingencies
Bloomin’ Brands stockholders’ equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019 and December 30, 2018	0	0
Common stock, $0.01 par value, 475,000,000 shares authorized; 91,646,542 and 91,271,825 shares issued and outstanding as of March 31, 2019 and December 30, 2018, respectively	916	913
Additional paid-in capital	1,099,346	1,107,582
Accumulated deficit	(714,425)	(920,010)
Accumulated other comprehensive loss	(141,653)	(142,755)
Total Bloomin’ Brands stockholders’ equity	244,184	45,730
Noncontrolling interests	8,179	9,087
Total stockholders’ equity	252,363	54,817
Total liabilities and stockholders’ equity	$ 3,552,547	$ 2,464,774

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par per share	$ 0.01	$ 0.01
Common stock, shares authorized	475,000,000	475,000,000
Common stock, shares issued	91,646,542	91,271,825
Common stock, shares outstanding	91,646,542	91,271,825

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Revenues
Restaurant sales, franchise and other revenues	$ 1,128,131	$ 1,116,465
Costs and expenses
Cost of sales	352,111	352,132
Labor and other related	319,015	311,062
Other restaurant operating	250,854	253,345
Depreciation and amortization	49,482	50,120
General and administrative	70,589	68,696
Provision for impaired assets and restaurant closings	3,586	2,739
Total costs and expenses	1,045,637	1,038,094
Income from operations	82,494	78,371
Other (expense) income, net	(168)	1
Interest expense, net	(11,181)	(10,310)
Income before provision for income taxes	71,145	68,062
Provision for income taxes	5,496	1,925
Net income	65,649	66,137
Less: net income attributable to noncontrolling interests	1,349	739
Net income attributable to Bloomin’ Brands	64,300	65,398
Other comprehensive income:
Foreign currency translation adjustment, net of tax	5,755	1,349
Unrealized (loss) gain on derivatives, net of tax	(4,381)	888
Reclassification of adjustment for (gain) loss on derivatives included in Net income, net of tax	(364)	308
Comprehensive income	66,659	68,682
Less: comprehensive income attributable to noncontrolling interests	1,257	721
Comprehensive income attributable to Bloomin’ Brands	$ 65,402	$ 67,961
Earnings per share:
Basic earnings per share	$ 0.70	$ 0.71
Diluted earnings per share	$ 0.69	$ 0.68
Weighted average common shares outstanding:
Basic (shares)	91,415	92,268
Diluted (shares)	92,661	95,782
Restaurant sales [Member]
Revenues
Restaurant sales, franchise and other revenues	$ 1,111,642	$ 1,099,003
Franchise and other revenues [Member]
Revenues
Restaurant sales, franchise and other revenues	$ 16,489	$ 17,462

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands

Total

Common stock [Member]

Additional paid-in capital [Member]

Accumulated deficit [Member]

Accumulated other comprehensive loss [Member]

Non-controlling interests [Member]

Balance at Dec. 31, 2017

$ 81,231

$ 919

$ 1,081,813

$ (913,191)

$ (99,199)

$ 10,889

Balance (in shares) at Dec. 31, 2017

91,913,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

66,216

65,398

818

Other comprehensive income (loss), net of tax

2,545

2,563

(18)

Cash dividends declared, per common share

(8,371)

Repurchase and retirement of common stock

(50,996)

$ (21)

(50,975)

Repurchase and retirement of common stock (in shares)

(2,116,000)

Stock-based compensation

5,121

Common stock issued under stock plans

^[1]

13,679

$ 16

13,663

Common stock issued under stock plans (in shares)

^[1]

1,619,000

Change in redemption value of redeemable interests

(79)

Distributions to noncontrolling interests

(1,069)

Contributions from noncontrolling interests

158

Balance at Apr. 01, 2018

108,435

$ 914

1,092,147

(898,768)

(96,636)

10,778

Balance (in shares) at Apr. 01, 2018

91,416,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect from a change in accounting principle

141,285

Balance at Dec. 30, 2018

$ 54,817

$ 913

1,107,582

(920,010)

(142,755)

9,087

Balance (in shares) at Dec. 30, 2018

91,271,825

91,272,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

$ 65,649

64,300

1,349

Other comprehensive income (loss), net of tax

1,010

1,102

(92)

Cash dividends declared, per common share

(9,140)

Stock-based compensation

3,993

Common stock issued under stock plans

^[1]

(3,086)

$ 3

(3,089)

Common stock issued under stock plans (in shares)

^[1]

375,000

Distributions to noncontrolling interests

(2,429)

Contributions from noncontrolling interests

264

Balance at Mar. 31, 2019

$ 252,363

$ 916

$ 1,099,346

$ (714,425)

$ (141,653)

$ 8,179

Balance (in shares) at Mar. 31, 2019

91,646,542

91,647,000

[1]	Net of forfeitures and shares withheld for employee taxes.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows provided by operating activities:
Net income	$ 65,649	$ 66,137
Adjustments to reconcile Net income to cash provided by operating activities:
Depreciation and amortization	49,482	50,120
Amortization of deferred discounts and issuance costs	634	643
Amortization of deferred gift card sales commissions	8,407	9,415
Provision for impaired assets and restaurant closings	3,586	2,739
Amortization of operating lease assets	17,814	0
Stock-based and other non-cash compensation expense	6,035	6,058
Deferred income tax (benefit) expense	(501)	126
Loss on sale of a business or subsidiary	167	0
Recognition of deferred gain on sale-leaseback transactions	0	(3,069)
Other, net	(660)	114
Change in assets and liabilities	(66,730)	(80,748)
Net cash provided by operating activities	83,883	51,535
Cash flows used in investing activities:
Capital expenditures	(44,710)	(48,347)
Other investments, net	2,690	2,137
Net cash used in investing activities	(42,020)	(46,210)
Cash flows used in financing activities:
Repayments of long-term debt	(7,428)	(6,436)
Proceeds from borrowings on revolving credit facilities, net	148,200	151,829
Repayments of borrowings on revolving credit facilities	(152,300)	(122,000)
Proceeds from share-based compensation, net	(3,086)	13,679
Distributions to noncontrolling interests	(2,429)	(1,069)
Contributions from noncontrolling interests	264	158
Purchase of limited partnership and noncontrolling interests	0	(1,444)
Repayments of partner deposits and accrued partner obligations	(5,460)	(4,432)
Repurchase of common stock	0	(50,996)
Cash dividends paid on common stock	(9,140)	(8,371)
Net cash used in financing activities	(31,379)	(29,082)
Effect of exchange rate changes on cash and cash equivalents	459	54
Net decrease in cash, cash equivalents and restricted cash	10,943	(23,703)
Cash, cash equivalents and restricted cash as of the beginning of the period	71,823	129,543
Cash, cash equivalents and restricted cash as of the end of the period	82,766	105,840
Supplemental disclosures of cash flow information:
Cash paid for interest	13,637	9,401
Cash paid for income taxes, net of refunds	4,255	1,696
Supplemental disclosures of non-cash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	17,618	0
Leased assets obtained in exchange for new finance lease liabilities	76	0
Decrease in liabilities from the acquisition of property, fixtures and equipment or capital leases	$ (6,066)	$ (4,985)

Description of the Business and Basis of Presentation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business and Basis of Presentation

Description of the Business - Bloomin’ Brands (“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. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment 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 30, 2018.

Recently Adopted Financial Accounting Standards - On December 31, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02: Leases (Topic 842) (“ASU No. 2016-02”), ASU No. 2018-01: Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 (“ASU No. 2018-01”), and ASU No. 2018-11: Leases (Topic 842): Targeted Improvements (“ASU No. 2018-11”). 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. 2018-01 allows an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the Company’s adoption of ASU No. 2016-02. ASU No. 2018-11 allows for an additional transition method, which permits use of the effective date of adoption as the date of initial application of ASU No. 2016-02 without restating comparative period financial statements and provides entities with a practical expedient that allows entities to elect not to separate lease and non-lease components when certain conditions are met.

The Company adopted ASU No. 2016-02 using December 31, 2018 as the date of initial application. Consequently, financial information and the disclosures required under the new standard were not provided for dates and periods before December 31, 2018. The Company also elected a transition package including practical expedients that permitted it not to reassess the classification and initial direct costs of expired or existing contracts and leases, to not separate lease and non-lease components of restaurant facility leases executed subsequent to adoption, and to not evaluate land easements that exist or expired before the adoption. In preparation for adoption, the Company implemented a new lease accounting system.

Adoption resulted in the following, as of December 31, 2018:


(i)	recording of right-of-use assets of $1.3 billion and lease liabilities of $1.5 billion;


(ii)	a credit to the beginning balance of Accumulated Deficit of $190.4 million to derecognize deferred gains on sale-leaseback transactions and a debit to the beginning balance of Accumulated Deficit of $49.2 million to derecognize the related deferred tax assets; and


(iii)	derecognition of existing debt obligations of $19.6 million and existing fixed assets of $16.1 million related to restaurant properties sold and leased back from third parties that previously did not qualify for sale accounting, with gains or losses associated with this change recognized in Accumulated Deficit.

Other restaurant operating expense increased during thirteen weeks ended March 31, 2019 from the adoption of ASU No. 2016-02 since the Company no longer recognizes the benefit of deferred gains on sale-leaseback transactions through its statements of operations over the corresponding lease term. During the thirteen weeks ended April 1, 2018, the Company recognized $3.1 million of sale-leaseback deferred gain amortization.

As a result of adoption of ASU No. 2016-02, the Company recorded reclassification adjustments to certain balances that were recorded under Accounting Standards Codification Topic 840, “Leases” (“ASC 840”) in its Consolidated Balance Sheet as of December 30, 2018. The following table summarizes accounts with material reclassification adjustments which impacted Operating lease right-of-use assets as a part of the adoption of ASU No. 2016-02:



ACCOUNT		CONSOLIDATED BALANCE SHEET CLASSIFICATION UNDER ASC 840
Favorable leases		Intangible assets, net
Deferred rent		Deferred rent
Unfavorable leases		Other long-term liabilities, net
Exit-related lease accruals		Other long-term liabilities, net

In addition, rent payments that were recorded within prepaid assets under ASC 840 are now recorded as a reduction of the current portion of operating lease liabilities.

Recently Issued Financial Accounting Standards Not Yet Adopted - In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” (“ASU No. 2018-15”), which clarifies the accounting for implementation costs in cloud computing arrangements. ASU No. 2018-15 is effective for the Company in the first quarter of 2020, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU No. 2018-15 on its consolidated financial statements.

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. These reclassifications had no effect on previously reported net income.

Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue Recognition [Abstract]

Revenue Recognition

The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019		APRIL 1, 2018
Revenues
Restaurant sales	$	1,111,642	$	1,099,003
Franchise and other revenues:
Franchise revenue	$	13,762	$	14,215
Other revenue	2,727		3,247
Total Franchise and other revenues	$	16,489	$	17,462
Total revenues	$	1,128,131	$	1,116,465

The following tables include the disaggregation of Restaurant sales and Franchise revenue, by restaurant concept and major international market, for the periods indicated:



	THIRTEEN WEEKS ENDED				THIRTEEN WEEKS ENDED
	MARCH 31, 2019				APRIL 1, 2018
(dollars in thousands)	RESTAURANT SALES		FRANCHISE REVENUE		RESTAURANT SALES		FRANCHISE REVENUE
U.S.
Outback Steakhouse	$	586,771	$	10,601	$	571,479	$	11,074
Carrabba’s Italian Grill	173,475		171		173,927		147
Bonefish Grill	156,434		210		156,849		240
Fleming’s Prime Steakhouse & Wine Bar	83,026		—		80,990		—
Other	1,107		—		1,099		—
U.S. Total	$	1,000,813	$	10,982	$	984,344	$	11,461
International
Outback Steakhouse-Brazil	$	89,565	$	—	$	95,123	$	—
Other	21,264		2,780		19,536		2,754
International Total	$	110,829	$	2,780	$	114,659	$	2,754
Total	$	1,111,642	$	13,762	$	1,099,003	$	14,215

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)	MARCH 31, 2019		DECEMBER 30, 2018
Other current assets, net
Deferred gift card sales commissions	$	11,195	$	16,431

Unearned revenue
Deferred gift card revenue	$	240,923	$	333,794
Deferred loyalty revenue	9,288		8,424
Deferred franchise fees - current	492		490
Total Unearned revenue	$	250,703	$	342,708

Other long-term liabilities, net
Deferred franchise fees - non-current	$	4,702	$	4,531

The following table is a rollforward of deferred gift card sales commissions for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019			APRIL 1, 2018
Balance, beginning of period	$	16,431		$	16,231
Deferred gift card sales commissions amortization	(8,407		)	(9,415		)
Deferred gift card sales commissions capitalization	3,833			3,858
Other	(662		)	(635		)
Balance, end of period	$	11,195		$	10,039

The following table is a rollforward of unearned gift card revenue for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019			APRIL 1, 2018
Balance, beginning of period	$	333,794		$	323,628
Gift card sales	55,472			56,285
Gift card redemptions	(141,459		)	(144,556		)
Gift card breakage	(6,884		)	(7,574		)
Balance, end of period	$	240,923		$	227,783

Stock-based Compensation Plans

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation Plans

The Company recognized stock-based compensation expense as follows for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019		APRIL 1, 2018
Stock options	$	1,159	$	1,897
Restricted stock units	1,749		2,332
Performance-based share units	1,003		596
	$	3,911	$	4,825

During the thirteen weeks ended March 31, 2019, the Company made grants to its employees of 0.4 million stock options, 0.2 million time-based restricted stock units and 0.1 million performance-based share units. On April 1, 2019, the Company made one-time transition award grants of 0.7 million stock options, 0.2 million time-based restricted stock units and 0.1 million performance-based share units to the Executive Chairman of the Board, Chief Executive Officer (“CEO”) and Chief Financial Officer in connection with the appointment of each to their respective positions.

Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows for the periods indicated:



	THIRTEEN WEEKS ENDED
	MARCH 31, 2019			APRIL 1, 2018
Assumptions:
Weighted-average risk-free interest rate (1)	2.51		%	2.66		%
Dividend yield (2)	1.89		%	1.50		%
Expected term (3)	5.5 years			5.8 years
Weighted-average volatility (4)	31.87		%	32.76		%

Weighted-average grant date fair value per option	$	5.76		$	7.23

________________


(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.

Restricted stock units granted prior to 2019 generally vest over a period of four years and restricted stock units granted in 2019 or later vest over a period of three years, in an equal number of shares each year.

The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of March 31, 2019:



	UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands)		REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years)
Stock options	$	8,972	2.4
Restricted stock units	$	15,816	2.5
Performance-based share units	$	8,077	1.7

Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchases - On February 12, 2019, the Company’s Board of Directors (the “Board”) canceled the remaining $36.0 million of authorization under the 2018 Share Repurchase Program and approved a new $150.0 million authorization (the “2019 Share Repurchase Program”). The 2019 Share Repurchase Program will expire on August 12, 2020. As of March 31, 2019, $150.0 million remained available for repurchase under the 2019 Share Repurchase Program.

Dividends - The Company declared and paid dividends per share during fiscal year 2019 as follows:



	DIVIDENDS PER SHARE		AMOUNT (in thousands)
First fiscal quarter	$	0.10	$	9,140

In April 2019, the Board declared a quarterly cash dividend of $0.10 per share, payable on May 24, 2019, to shareholders of record at the close of business on May 13, 2019.

Accumulated Other Comprehensive Loss (“AOCL”) - Following are the components of AOCL as of the periods indicated:



(dollars in thousands)	MARCH 31, 2019			DECEMBER 30, 2018
Foreign currency translation adjustment	$	(129,302	)	$	(135,149	)
Unrealized loss on derivatives, net of tax	(12,351		)	(7,606		)
Accumulated other comprehensive loss	$	(141,653	)	$	(142,755	)

Following are the components of Other comprehensive income attributable to Bloomin’ Brands for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019			APRIL 1, 2018
Foreign currency translation adjustment, net of tax (1)	$	5,847		$	1,367

Unrealized (loss) gain on derivatives, net of tax (2)	$	(4,381	)	$	888
Reclassification of adjustments for (gain) loss on derivatives included in Net income, net of tax (3)	(364		)	308
Total unrealized (loss) gain on derivatives, net of tax	$	(4,745	)	$	1,196
Other comprehensive income attributable to Bloomin’ Brands	$	1,102		$	2,563

________________


(1)	Foreign currency translation adjustment is net of tax of $0.1 million for the thirteen weeks ended April 1, 2018.


(2)	Unrealized (loss) gain on derivatives is net of tax of ($1.5) million and $0.3 million for the thirteen weeks ended March 31, 2019 and April 1, 2018, respectively.


(3)	Reclassifications of adjustments for (gain) loss on derivatives are net of tax. See Note 12 - Derivative Instruments and Hedging Activities for discussion of the tax impact of reclassifications.

Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Cash Flow Hedges of Interest Rate Risk - On September 9, 2014, the Company entered into variable-to-fixed interest rate swap agreements with eight counterparties to hedge a portion of the cash flows of the Company’s variable rate debt (the “2014 Swap Agreements”). The 2014 Swap Agreements have an aggregate notional amount of $400.0 million and mature on May 16, 2019. Under the terms of the 2014 Swap Agreements, the Company pays a weighted-average fixed rate of 2.02% on the $400.0 million notional amount and receives payments from the counterparty based on the 30-day LIBOR rate.

On October 24, 2018 and October 25, 2018, the Company entered into variable-to-fixed interest rate swap agreements with 12 counterparties to hedge a portion of the cash flows of the Company’s variable rate debt (the “2018 Swap Agreements”). The 2018 Swap Agreements have an aggregate notional amount of $550.0 million, a forward start date of May 16, 2019 (the maturity date of the 2014 Swap Agreements) and mature on November 30, 2022. Under the terms of the 2018 Swap Agreements, the Company will pay a weighted-average fixed rate of 3.04% on the notional amount and receive payments from the counterparty based on the one-month LIBOR rate.

The Company’s swap agreements have been designated and qualify as cash flow hedges, are recognized on its Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated:



(dollars in thousands)	MARCH 31, 2019		DECEMBER 30, 2018		CONSOLIDATED BALANCE SHEET CLASSIFICATION
Interest rate swaps - asset (1)	$	237	$	765	Other current assets, net

Interest rate swaps - liability	$	3,217	$	1,393	Accrued and other current liabilities
Interest rate swaps - liability	13,767		9,723		Other long-term liabilities, net
Total fair value of derivative instruments - liabilities (1)	$	16,984	$	11,116

____________________


(1)	See Note 14 - Fair Value Measurements for fair value discussion of the interest rate swaps.

The following table summarizes the effects of the 2014 Swap Agreements on Net income for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019			APRIL 1, 2018
Interest rate swap benefit (expense) recognized in Interest expense, net	$	491		$	(415	)
Income tax (expense) benefit recognized in Provision for income taxes	(127		)	107
Total effects of the interest rate swaps on Net income	$	364		$	(308	)

The Company estimates $3.2 million will be reclassified to interest expense over the next 12 months related to the 2018 Swap Agreements.

By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 31, 2019, all counterparties to the interest rate swaps had performed in accordance with their contractual obligations.

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on indebtedness.

As of March 31, 2019 and December 30, 2018, the fair value of the Company’s interest rate swaps in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, was $16.9 million and $10.5 million, respectively. As of March 31, 2019 and December 30, 2018, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of March 31, 2019 and December 30, 2018, it could have been required to settle its obligations under the agreements at their termination value of $16.9 million and $10.5 million, respectively.

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases, Finance Leases

Leases

The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement conveys the right to use and control specific property or equipment. The Company leases restaurant and office facilities and certain equipment under operating leases primarily having initial terms expiring between one and 20 years. Restaurant facility leases generally have renewal periods totaling five to 20 years, exercisable at the option of the Company. Contingent rentals represent payment of variable lease obligations based on a percentage of gross revenues, as defined by the terms of the applicable lease agreement for certain restaurant facility leases. The Company also has certain leases, which reset periodically based on a specified index. Such leases are recorded using the index that existed at lease commencement. Subsequent changes in the index are recorded as variable rental payments. Variable rental payments are expensed as incurred in the Company’s Consolidated Statements of Operations and Comprehensive Income and future variable rent obligations are not included within the lease liabilities in the Consolidated Balance Sheet. The depreciable life of lease assets and leasehold improvements are limited by the expected lease term. None of the Company’s leases contain any material residual value guarantees or material restrictive covenants.

For leases executed subsequent to the adoption of ASU No. 2016-02, the Company accounts for fixed lease and non-lease components of its restaurant facility leases as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet, they are recognized on a straight-line basis over the lease term within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income.

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheet as of the period indicated:



(dollars in thousands)	CONSOLIDATED BALANCE SHEET CLASSIFICATION	MARCH 31, 2019
Operating lease right-of-use assets	Operating lease right-of-use assets	$	1,276,311
Finance lease right-of-use assets (1)	Property, fixtures and equipment, net	3,095
Total lease assets, net		$	1,279,406

Current operating lease liabilities (2)	Accrued and other current liabilities	$	170,039
Current finance lease liabilities	Current portion of long-term debt	1,630
Non-current operating lease liabilities	Non-current operating lease liabilities	1,285,073
Non-current finance lease liabilities	Long-term debt, net	1,764
		$	1,458,506

________________


(1)	Net of accumulated amortization of $0.3 million.


(2)	Excludes accrued contingent percentage rent.

Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statement of Operations and Comprehensive Income for the periods indicated:



	CONSOLIDATED INCOME STATEMENT CLASSIFICATION	THIRTEEN WEEKS ENDED
(dollars in thousands)	CONSOLIDATED INCOME STATEMENT CLASSIFICATION	MARCH 31, 2019
Operating leases (1)	Other restaurant operating	$	45,233
Variable lease cost	Other restaurant operating	819
Finance leases
Amortization of leased assets	Depreciation and amortization	324
Interest on lease liabilities	Interest expense, net	73
Sublease revenue (2)	Franchise and other revenues	(1,314		)
Lease costs, net (3)		$	45,135

________________


(1)	Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.6 million, which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million, which is included in Cost of sales.


(2)	Excludes rental income from Company-owned properties of $0.7 million.


(3)	During the thirteen weeks ended April 1, 2018, the Company recorded rent expense of $47.2 million, including $1.3 million of variable rent expense, and $1.6 million of sublease revenue.

As of March 31, 2019, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:



(dollars in thousands)	OPERATING LEASES			FINANCE LEASES			SUBLEASE REVENUES
Year 1 (1)	$	177,405		$	1,699		$	(5,936	)
Year 2	190,733			1,301			(6,028		)
Year 3	186,753			730			(6,012		)
Year 4	182,697			39			(5,956		)
Year 5	177,735			—			(5,945		)
Thereafter	1,774,940			—			(67,921		)
Total minimum lease payments (receipts) (2)	$	2,690,263		$	3,769		$	(97,798	)
Less: Interest	(1,235,151		)	(375		)
Present value of future lease payments (receipts)	$	1,455,112		$	3,394

____________________


(1)	Net of operating lease prepaid rent of $14.6 million.


(2)	Includes $1.0 billion related to options to extend operating lease terms and excludes $96.3 million of signed operating leases that have not yet commenced.

The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company’s leases as of the period indicated:



	MARCH 31, 2019
Weighted-average remaining lease term:
Operating leases	14.7 years
Finance leases	2.4 years
Weighted-average discount rate (1):
Operating leases	8.61	%
Finance leases	9.21	%

____________________


(1)	Based on the Company’s incremental borrowing rate at lease commencement.

The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the period indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 31, 2019
Cash flows from operating activities:
Cash paid for amounts included in the measurement of operating lease liabilities	$	47,649

Properties Leased to Third Parties - The Company leases certain land and buildings to third parties, generally related to closed or refranchised restaurants. The following table is a summary of assets leased to third parties included in Property, fixtures and equipment, net as of the period indicated:



(dollars in thousands)	MARCH 31, 2019
Land	$	15,247

Buildings and building improvements	$	23,120
Less: accumulated depreciation	(10,080		)
Buildings and building improvements, net	$	13,040

Leases, Operating Leases

Leases

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheet as of the period indicated:



(dollars in thousands)	CONSOLIDATED BALANCE SHEET CLASSIFICATION	MARCH 31, 2019
Operating lease right-of-use assets	Operating lease right-of-use assets	$	1,276,311
Finance lease right-of-use assets (1)	Property, fixtures and equipment, net	3,095
Total lease assets, net		$	1,279,406

Current operating lease liabilities (2)	Accrued and other current liabilities	$	170,039	<

Disposals	3 Months Ended
Disposals	Mar. 31, 2019
Disposals [Abstract]
Disposals	Disposals Refranchising - During the thirteen weeks ended March 31, 2019, the Company completed the sale of 18 of its existing U.S. Company-owned Carrabba’s Italian Grill locations to an existing franchisee (the “Buyer”) for aggregate cash proceeds of $3.6 million, net of certain purchase price adjustments. The Company remains contingently liable on certain real estate lease agreements assigned to the Buyer. See Note 16 - Commitments and Contingencies for additional details regarding lease guarantees. Assets Held for Sale - In March 2019, the Company signed a purchase agreement with a buyer to sell five of its U.S. surplus properties to an Outback Steakhouse franchisee for $12.8 million, less certain purchase price adjustments. These properties were reclassified from Property, fixtures and equipment, net to Assets held for sale during the thirteen weeks ended March 31, 2019. The sale of these properties is expected to be completed during 2019.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 0.1	$ 0.09