Item 16. Form 10-K Summary.

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Item 16. Form 10-K Summary.

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Not applicable**.**

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SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

DOMINO’S PIZZA, INC.

PARENT COMPANY CONDENSED BALANCE SHEETS

(In thousands, except share and per share amounts)

December 31,January 1,
20172017
ASSETS
ASSETS:
Cash$6$6
Total assets$6$6
LIABILITIES AND STOCKHOLDERS’ DEFICIT
LIABILITIES:
Equity in net deficit of subsidiaries$2,735,384$1,883,143
Due to subsidiary66
Total liabilities2,735,3901,883,149
STOCKHOLDERS’ DEFICIT:
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 42,898,329 in 2017 and 48,100,143 in 2016 issued and outstanding429481
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued——
Additional paid-in capital5,6541,006
Retained deficit(2,739,437)(1,881,520)
Accumulated other comprehensive loss(2,030)(3,110)
Total stockholders’ deficit(2,735,384)(1,883,143)
Total liabilities and stockholders’ deficit$6$6

See accompanying notes to the Schedule I.

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DOMINO’S PIZZA, INC.

PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

For the Years Ended
December 31, 2017January 1, 2017January 3, 2016
REVENUES$—$—$—
Total revenues———
OPERATING EXPENSES———
Total operating expenses———
INCOME FROM OPERATIONS———
Equity earnings in subsidiaries277,905214,678192,789
INCOME BEFORE PROVISION FOR INCOME TAXES277,905214,678192,789
PROVISION FOR INCOME TAXES———
NET INCOME$277,905$214,678$192,789
COMPREHENSIVE INCOME$278,985$215,116$191,902
EARNINGS PER SHARE:
Common Stock – basic$6.05$4.41$3.58
Common Stock – diluted$5.83$4.30$3.47

See accompanying notes to the Schedule I.

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DOMINO’S PIZZA, INC.

PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

For the Years Ended
December 31,January 1,January 3,
201720172016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities$299,576$281,731$226,912
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends from subsidiaries852,32582,856594,591
Net cash provided by investing activities852,32582,856594,591
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of common stock dividends(84,298)(73,925)(80,329)
Purchase of common stock(1,064,253)(300,250)(738,557)
Other(3,350)9,588(2,617)
Net cash used in financing activities(1,151,901)(364,587)(821,503)
CHANGE IN CASH AND CASH EQUIVALENTS———
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD666
CASH AND CASH EQUIVALENTS, AT END OF PERIOD$6$6$6

See accompanying notes to the Schedule I.

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DOMINO’S PIZZA, INC.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

(1)INTRODUCTION AND BASIS OF PRESENTATION

Domino’s Pizza, Inc., on a stand-alone basis, (the “Parent Company”) has accounted for majority-owned subsidiaries using the equity method of accounting. The accompanying condensed financial statements of the Parent Company should be read in conjunction with the consolidated financial statements of Domino’s Pizza, Inc. and its subsidiaries (the “Company”) and the notes thereto included in Item 8 of this Form 10-K. These financial statements have been provided to comply with Rule 4-08(e) of Regulation S-X.

Use of Estimates

The use of estimates is inherent in the preparation of financial statements in accordance with generally accepted accounting principles. Actual results could differ from those estimates.

Recently Adopted Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The new standard was effective for the Parent Company beginning January 2, 2017.

As a result, excess tax benefits or deficiencies from equity-based compensation activity are reflected in the parent company condensed statements of income and comprehensive income as a component of equity earnings in subsidiaries. The Company also elected to account for forfeitures as they occur, rather than to use an estimate of expected forfeitures for financial statement reporting purposes. The adoption of ASU 2016-09 resulted in an increase to net income of $27.2 million in fiscal 2017, primarily due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The Company’s election to account for forfeitures as they occur had an immaterial impact on its equity-based compensation expense.

(2)SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

During 2017, 2016 and 2015, the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to repurchase common stock in connection with the Company’s 2017 and 2015 recapitalization transactions. See Note 4 to the Company’s consolidated financial statements as filed in this Form 10-K for a description of the recapitalization transactions that occurred in 2017 and 2015.

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SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Domino’s Pizza, Inc. and Subsidiaries

(in thousands)Balance Beginning of YearProvision (Benefit)Additions/ Deductions **from Reserves ***Translation AdjustmentsBalance End of Year
Allowance for doubtful accounts receivable:
2017$2,342$(88)$(830)$—$1,424
20162,662(51)(269)—2,342
20153,361(582)(109)(8)2,662
*Consists primarily of write-offs, recoveries of bad debt and certain reclassifications.
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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this annual report to be signed on their behalf by the undersigned, thereunto duly authorized.

DOMINO’S PIZZA, INC.
/s/ Jeffrey D. Lawrence
Jeffrey D. Lawrence
Chief Financial Officer
February 20, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrants and in the capacities and on the dates indicated.

/s/ J. Patrick DoylePresident, Chief Executive Officer and Director (Principal Executive Officer)
J. Patrick Doyle
February 20, 2018
/s/ Jeffrey D. LawrenceChief Financial Officer
Jeffrey D. Lawrence(Principal Financial and Accounting Officer)
February 20, 2018
/s/ David A. BrandonChairman of the Board of Directors
David A. Brandon
February 20, 2018
/s/ C. Andrew BallardDirector
C. Andrew Ballard
February 20, 2018
/s/ Andrew B. BalsonDirector
Andrew B. Balson
February 20, 2018
/s/ Diana F. CantorDirector
Diana F. Cantor
February 20, 2018
/s/ Richard L. FedericoDirector
Richard L. Federico
February 20, 2018
/s/ James A. GoldmanDirector
James A. Goldman

February 20, 2018

Previous: Item 15. Exhibits, Financial Statement Schedules.