Baskin Robbins 2015 Annual Report Download

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2015
ANNUAL
REPORT

Table of contents

  • Page 1
    2015 ANNUAL R E P ORT

  • Page 2
    ... and online outlets nationwide; • Growing the Dunkin' Donuts Perks Rewards program to greater than 4.3 million members in its second year and launching mobile ordering and delivery tests; • Continuing the remarkable turnaround of the Baskin-Robbins brand in the U.S.; • Completing a successful...

  • Page 3
    ... top-rated consumer brand underscoring the fact that our business model of offering great beverages and baked goods at a good value in a fast, friendly environment still has strong appeal. In fact, for the tenth consecutive year, Dunkin' Donuts was recognized in early 2016 by the Brand Keys Customer...

  • Page 4
    ... the Dunkin' Donuts U.S. comparable store sales performance particularly in the second half of 2015. In response to this, we spent countless hours doing deep dives into our customer analytics, and based on those findings, developed a 5-part strategic plan, which we believe will return our brand to...

  • Page 5
    ... in our strategic growth plan; and we're confident in the power of the Dunkin' Donuts brand. 430 net new Dunkin' Donuts units* 3rd consecutive year of 5% plus store growth rate Long-term goal of 17,000+ Dunkin' Donuts in U.S. *Excluding the closing of 81 Speedway self-serve coffee stations.

  • Page 6
    ... 6.1% Baskin-Robbins U.S comparable store sales growth 19 net new Baskin-Robbins in the U.S. DUNKIN' DONUTS & BASKIN-ROBBINS INTERNATIONAL We continue to make real progress with our work to set our international business up for significant long-term growth. In 2015, we streamlined the reporting...

  • Page 7
    ...the year ended December 26, 2015 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 001-35258 _____ DUNKIN' BRANDS GROUP, INC. (Exact name of registrant as specified in its charter) Delaware (State or...

  • Page 8

  • Page 9
    ... Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services Part IV. Exhibits, Financial Statement Schedules 95 1 10 22 22 24 24 24...

  • Page 10
    ...are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition...

  • Page 11
    ... to drive the overall success of our brand. Financially, our franchised model allows us to grow our points of distribution and brand recognition with limited capital investment by us. We operate our business in four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins...

  • Page 12
    ... renewed excitement for the brand. Baskin-Robbins' "31 flavors," offering consumers a different flavor for each day of the month, is recognized by ice cream consumers nationwide. For fiscal year 2015, the Baskin-Robbins franchise system generated U.S. franchisee-reported sales of approximately $582...

  • Page 13
    ... required to purchase ice cream from Baskin-Robbins or an approved supplier. In most countries, the master franchisee is also required to spend a certain percentage of gross sales on advertising in such foreign country in order to promote the brand. Generally, the master franchise agreement serves...

  • Page 14
    ....1 million, of our total revenue from license fees from Dean Foods. We distribute ice cream products to Baskin-Robbins franchisees who operate Baskin-Robbins restaurants located in certain foreign countries and receive revenue associated with those sales. For fiscal year 2015, we generated 14.2%, or...

  • Page 15
    ... also manufactures and supplies restaurants located in South Korea with ice cream, donuts, and coffee products. Japan Restaurants in Japan accounted for approximately 18% of total franchisee-reported sales from international operations for fiscal year 2015, 100% of which came from Baskin-Robbins. We...

  • Page 16
    ...Donuts, are positioned to capture additional coffee market share through an increased focus on coffee offerings. Our Baskin-Robbins brand competes primarily in QSR segment categories and subcategories that include hard-serve ice cream as well as those that include soft serve ice cream, frozen yogurt...

  • Page 17
    ... the Dunkin' Donuts brand is facilitated by National DCP, LLC (the "NDCP"), which is a Delaware limited liability company operated as a cooperative owned by its franchisee members. The NDCP is managed by a staff of supply chain professionals who report directly to the NDCP's board of directors. The...

  • Page 18
    ... of our success. We believe the development of successful new products for each brand attracts new customers, increases comparable store sales, and allows franchisees to expand into other dayparts. New product research and development is located in a state-of-the-art facility at our headquarters in...

  • Page 19
    ... employee count. Intellectual property We own many registered trademarks and service marks ("Marks") in the U.S. and in other countries throughout the world. We believe that our Dunkin' Donuts and Baskin-Robbins names and logos, in particular, have significant value and are important to our business...

  • Page 20
    .... Brand value can be severely damaged even by isolated incidents, particularly if the incidents receive considerable negative publicity or result in litigation. Some of these incidents may relate to the way we manage our relationship with our franchisees, our growth strategies, our development...

  • Page 21
    ... our brands, our business and our stock price. The quick service restaurant segment is highly competitive, and competition could lower our revenues. The QSR segment of the restaurant industry is intensely competitive. The beverage and food products sold by our franchisees compete directly against...

  • Page 22
    ... effectively adjust our product mix, service offerings, and marketing and merchandising initiatives for products and services that address, and anticipate advances in, technology and market trends. If we are not able to successfully respond to these challenges, our business, financial condition, and...

  • Page 23
    ... to the expiration of the applicable term, our cash flow would be directed to the repayment of the securitized debt and, other than management fees sufficient to cover minimal selling, general and administrative expenses, would not be available for operating our business. No assurance can be given...

  • Page 24
    ... property could harm our business. We regard our Dunkin' Donuts® and Baskin-Robbins® trademarks as having significant value and as being important factors in the marketing of our brands. We have also obtained trademark protection for the trademarks associated with several of our product offerings...

  • Page 25
    ... invest in the development of new restaurants, and our future growth could be adversely affected. To the extent our franchisees are unable to open new restaurants as we anticipate, our revenue growth would come primarily from growth in comparable store sales. Our failure to add a significant number...

  • Page 26
    ... a group of suppliers for ingredients, foodstuffs, beverages, and disposable serving instruments including, but not limited to, Rich Products Corp., Dean Foods Co., The Coca-Cola Company, and Silver Pail Dairy, Ltd. as well as four primary coffee roasters and two primary donut mix suppliers. In 2015...

  • Page 27
    ...including those of certain international joint ventures) meeting franchisee product demand, interruptions in the supply chain, obstacles or delays in the process of renegotiating or renewing agreements with preferred suppliers, financial difficulties experienced by suppliers, or the deficiency, lack...

  • Page 28
    ... the demand for our beverages and food products. A decrease in customer traffic as a result of these health concerns or negative publicity could materially and adversely affect our brands and our business. We may not be able to enforce payment of fees under certain of our franchise arrangements...

  • Page 29
    ... other laws in the United States and in foreign countries governing such matters as minimum-wage requirements, overtime and other working conditions, and citizenship requirements. A significant number of our franchisees' food-service employees are paid at rates related to the U.S. federal minimum...

  • Page 30
    ... may receive through the supply chain (from central manufacturing locations ("CMLs"), NDCP, or otherwise), or produce defective food or beverage products, which may adversely impact our brands' goodwill. Americans with Disabilities Act. Restaurants located in the United States must comply with Title...

  • Page 31
    ... exist in the United States or internationally at this time. Failure to retain our existing senior management team or the inability to attract and retain new qualified personnel could hurt our business and inhibit our ability to operate and grow successfully. Our success will continue to...

  • Page 32
    ..., financial and research and development. As of December 26, 2015, we owned 94 properties and leased 911 locations across the U.S. and Canada, a majority of which we leased or subleased to franchisees. For fiscal year 2015, we generated 12.4%, or $100.4 million, of our total revenue from rental fees...

  • Page 33
    ... as of December 26, 2015. Franchised points of distribution Company-operated points of distribution Dunkin' Donuts-US* Dunkin' Donuts-International Total Dunkin' Donuts* Baskin-Robbins-US* Baskin-Robbins-International Total Baskin-Robbins* Total US Total International * 8,392 3,319 11,711...

  • Page 34
    ... applicable. PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock has been listed on the NASDAQ Global Select Market under the symbol "DNKN" since July 27, 2011. Prior to that time, there was no public market...

  • Page 35
    ... stock made during the quarter ended December 26, 2015 by or on behalf of Dunkin' Brands Group, Inc. or any "affiliated purchaser," as defined by Rule 10b-18(a) (3) of the Securities Exchange Act of 1934: Issuer Purchases of Equity Securities Total Number of Shares Purchased as Part of Publicly...

  • Page 36
    ... from cash on hand and received an initial delivery of 553,506 shares of the Company's common stock on February 9, 2016, representing an estimate of 80% of the total shares expected to be delivered under the February 2016 ASR Agreement. At settlement, the financial institution may be required to...

  • Page 37
    ...reinvestment of dividends paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price performance. 7/27/2011 12/31/2011 12/29/2012 12/28/2013 12/27/2014 12/26/2015 Dunkin' Brands Group, Inc. (DNKN) S&P 500 S&P Consumer Discretionary $ 100.00...

  • Page 38
    .... Fiscal Year 2015 2014 2013 2012 2011 ($ in thousands, except per share data) Consolidated Statements of Operations Data: Franchise fees and royalty income Rental income Sales of ice cream and other products(1) Sales at company-operated restaurants Other revenues(1) Total revenues Amortization of...

  • Page 39
    Fiscal Year 2015 2014 2013 2012 2011 ($ in thousands, except per share data or as otherwise noted) Consolidated Balance Sheet Data: Total cash, cash equivalents, and restricted cash Total assets(5) Total debt(5)(6) Total liabilities(5) Total stockholders' equity (deficit) Other Financial Data: ...

  • Page 40
    ....9 million, plus costs and interest. Fiscal years 2015 and 2011 include impairments of our equity method investments in Japan and South Korea joint ventures of $54.3 million and $19.8 million, respectively. As a result of the adoption of new accounting standards, deferred income tax assets that have...

  • Page 41
    ... closure of the Baskin-Robbins ice cream manufacturing plant in Peterborough, Canada. The amount for fiscal year 2012 also reflects the one-time delay in revenue recognition, net of related cost of ice cream and other products, related to the shift in manufacturing to Dean Foods of $2.1 million. For...

  • Page 42
    ... end points of distribution. Represents the growth in average weekly sales for franchisee- and company-operated restaurants that have been open at least 78 weeks (approximately 18 months) that have reported sales in the current and comparable prior year week. Previously, U.S. comparable store sales...

  • Page 43
    ... in certain international markets. The balance of our revenue for fiscal year 2015 consisted of revenue from our company-operated restaurants, license fees on products sold in non-franchised outlets, license fees on sales of ice cream and other products to Baskin-Robbins franchisees in the...

  • Page 44
    ...increased sales of cups and cones, beverages, desserts, and sundaes, as well as increased sales of cakes stimulated by strong year-over-year growth of online cake ordering. Comparable store sales growth was driven by increases in both traffic and ticket. Baskin-Robbins International systemwide sales...

  • Page 45
    ...-Robbins U.S. Baskin-Robbins International Consolidated global net openings 349 91 19 36 495 405 47 17 235 704 (1) Net openings for Dunkin' Donuts U.S. for fiscal year 2015 reflect the previously-announced closing of 81 self-serve coffee stations within Speedway locations. The increase in total...

  • Page 46
    ... store sales growth of 4.9%. Baskin-Robbins U.S. comparable store sales growth was driven by increased sales of cups and cones, desserts, beverages, and take-home ice cream quarts. Additionally, online cake ordering continued to drive cake category growth. Baskin-Robbins International systemwide...

  • Page 47
    ...165,761 108,217,011 1.53 Fiscal year 2015 2014 Increase (Decrease) $ % (In thousands, except percentages) Franchise fees and royalty income Rental income Sales of ice cream and other products(1) Sales at company-operated restaurants Other revenues(1) Total revenues $ $ 513,222 100,422 115,252...

  • Page 48
    ...included in sales of ice cream and other products. Sales from these transactions for the prior year have been reclassified to conform to the current year presentation. Total revenues increased $62.2 million, or 8.3%, in fiscal year 2015, driven by an increase in franchise fees and royalty income of...

  • Page 49
    ... referred to as segment profit. Segment profit for the Dunkin' Donuts International and Baskin-Robbins International segments includes net income of equity method investments, except for other-than-temporary impairment charges and the related reduction in depreciation, net of tax, on the underlying...

  • Page 50
    parties in which our brand names are used, revenue generated from online training programs for franchisees, and revenues from the sale of Dunkin' Donuts products in certain international markets, all of which are not allocated to a specific segment. Dunkin' Donuts U.S. Fiscal year 2015 2014 Increase...

  • Page 51
    ... and increased personnel costs. Baskin-Robbins International Fiscal year 2015 2014 Increase (Decrease) $ % (In thousands, except percentages) Royalty income Franchise fees Rental income Sales of ice cream and other products Other revenues Total revenues Segment profit $ $ $ 6,261 872 475...

  • Page 52
    ... of Dunkin' Donuts products in certain international markets that have historically been included in other revenues are now included in sales of ice cream and other products. Sales from these transactions for the prior year have been reclassified to conform to the current year presentation. Total...

  • Page 53
    ... million charge recorded in the prior year related to a third-party product volume guarantee, offset by additional breakage income, net of gift card program costs, recorded in fiscal year 2013 of $5.4 million on unredeemed Dunkin' Donuts gift card balances. The balance of the fluctuation in general...

  • Page 54
    ... the termination of development agreements in Asia in fiscal year 2013. The increases in royalty income and franchise fees were offset by a decline in other revenues due to a decline in transfer fee income. The increase in Dunkin' Donuts International segment profit for fiscal year 2014 was driven...

  • Page 55
    ... year 2013 related to unredeemed gift certificate balances. Baskin-Robbins International Fiscal year 2014 2013 Increase (Decrease) $ % (In thousands, except percentages) Royalty income Franchise fees Rental income Sales of ice cream and other products Other revenues Total revenues Segment profit...

  • Page 56
    ... year, the timing of receipts and payments related to the sale of Dunkin' K-Cup® pods and the related franchisee profit-sharing program, and increases in cash paid for income taxes and capital expenditures. Free cash flow is a non-GAAP measure reflecting net cash provided by operating and investing...

  • Page 57
    ... of 483,913 shares of its common stock based on a weighted average cost per share of $41.51 over the term of the October ASR agreement. Additionally, during the fiscal year 2015 we used $100.0 million to repurchase shares in the open market. In February 2016, our board of directors increased the...

  • Page 58
    ...Represents loss on settlement of our Canadian pension plan in June 2015 as a result of the closure of our Canadian ice cream manufacturing plant in fiscal year 2012, as well as costs and fees associated with various franchisee-related investments, bank fees, and the net impact of other insignificant...

  • Page 59
    ... to former employees under severance agreements. Excluded from these amounts are any payments that may be required related to pending litigation, such as the Bertico matter more fully described in note 17 (d) to our consolidated financial statements included herein, as the amount and timing of cash...

  • Page 60
    ..., and cash flow in future years. The following is a description of what we consider to be our most significant critical accounting policies. Revenue recognition Initial franchise fee revenue is recognized upon substantial completion of the services required of us as stated in the franchise agreement...

  • Page 61
    ... group of companies. The income approach utilized the discounted cash flow method, which determined enterprise value based on the present value of estimated future net cash flows the Japan JV is expected to generate over a forecasted three-year period plus the present value of estimated cash flows...

  • Page 62
    ... fair value, which is based on discounted cash flows. As a result of the impairment of our investment in the Japan JV, we assessed if there was any impairment of intangible assets within the Baskin-Robbins International reporting unit, and concluded such assets were not impaired. Income taxes Our...

  • Page 63
    ...In November 2015, the Financial Accounting Standards Board (the "FASB") issued new guidance to simplify the presentation of deferred income taxes, which requires that deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent in the balance sheet. As...

  • Page 64
    ... balance sheets of Dunkin' Brands Group, Inc. and subsidiaries as of December 26, 2015 and December 27, 2014, and the related consolidated statements of operations, comprehensive income, stockholders' equity period ended December 26, 2015. These consolidated financial (deficit), and cash flows...

  • Page 65
    DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share data) December 26, 2015 December 27, 2014 Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net Notes and other receivables, net Restricted assets of advertising ...

  • Page 66
    ... Statements of Operations (In thousands, except per share data) Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Revenues: Franchise fees and royalty income Rental income Sales of ice cream and other products Sales at company-operated restaurants Other revenues Total revenues...

  • Page 67
    DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In thousands) Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Net income including noncontrolling interests $ Other comprehensive income (loss), net: Effect of foreign currency ...

  • Page 68
    DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (Deficit) (In thousands) Common stock Balance at December 29, 2012 Shares 106,142 - - 1,140 3,085) Amount $ 106 - - 1 Additional paid-in capital 1,251,498 - - 7,962 (3,085) Stockholders' equity (...

  • Page 69
    DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) December 26, 2015 Fiscal year ended December 27, 2014 December 28, 2013 Cash flows from operating activities: Net income including noncontrolling interests Adjustments to reconcile net income to net ...

  • Page 70
    ..., we develop and franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international markets. Throughout these consolidated financial statements, "Dunkin...

  • Page 71
    ... funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 26, 2015 and December 27, 2014...

  • Page 72
    ... primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is...

  • Page 73
    ...rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements...

  • Page 74
    ... asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives. The Company evaluates its equity method investments for impairment whenever an event or...

  • Page 75
    ... income in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin' Donuts products to franchisees and licensees in certain international locations. Revenue from the sale of ice cream...

  • Page 76
    ...the consolidated statements of comprehensive income, net of taxes, for all periods presented. (t) Debt issuance costs Debt issuance costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company's long-term debt (see note 8). As of December 26, 2015 and...

  • Page 77
    ... redemption rates, breakage is estimated and recognized over time in proportion to actual gift card redemptions. The Company recognizes breakage on Baskin-Robbins gift cards as income only up to the amount of gift card program costs. Any incremental breakage is committed to fund future sales-driving...

  • Page 78
    ... financial statements, and related disclosures, and has not yet selected a transition method. (y) Reclassifications The Company has revised the presentation of revenues and related costs from the sale of Dunkin' Donuts products in certain international markets within the consolidated statements...

  • Page 79
    ..., product development, legal, administrative support services, and other operating expenses, as well as share-based compensation expense for employees that provide services directly to the advertising funds. Management fees totaled $9.7 million, $7.6 million, and $5.5 million for fiscal years 2015...

  • Page 80
    ....3% 20.0% In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.3 million, net of transaction costs, which is included in other operating income in the consolidated statements of operations for the fiscal year 2013. The gain consisted of...

  • Page 81
    ... quarter of fiscal year 2015, the Company assessed if there was an other-than-temporary loss in value of its investment in the Japan JV based on various factors, including continued declines in the operating performance and reduced future expectations of the Baskin-Robbins business in Japan, as...

  • Page 82
    ... sale Effects of foreign currency adjustments Balances at December 26, 2015 Accumulated impairment charges Net Balance Dunkin' Donuts International Goodwill Accumulated impairment charges Net Balance Baskin-Robbins International Goodwill Accumulated impairment charges Net Balance Goodwill Total...

  • Page 83
    ..., and $444 thousand, for fiscal years 2015, 2014, and 2013, respectively, and is included within long-lived asset impairment charges in the consolidated statements of operations. Total estimated amortization expense for other intangible assets for fiscal years 2016 through 2020 is as follows (in...

  • Page 84
    ... fiscal years 2014 and 2013, respectively, which is included in interest expense in the consolidated statements of operations. The Company recorded an immaterial amount of amortization of original issue discount and debt issuance costs related to the senior credit facility for fiscal year 2015. As...

  • Page 85
    ... and comprehensive income for fiscal year 2015: Amount of gain (loss) recognized in other comprehensive income (loss) Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on...

  • Page 86
    ... Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on other comprehensive income (loss) Interest rate swaps Income tax effect Net of income taxes $ $ 9,648 (3,909) 5,739...

  • Page 87
    ... of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of...

  • Page 88
    ... rental income. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company's senior management, which...

  • Page 89
    ... related to the thirdparty product volume guarantee (see note 17(b)). Segment profit by segment was as follows (in thousands): Segment profit Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Dunkin' Donuts U.S. Dunkin' Donuts International Baskin-Robbins U.S. Baskin-Robbins...

  • Page 90
    ... method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Dunkin' Donuts International Baskin-Robbins International Total reportable segments Other Total net income...

  • Page 91
    ...Pursuant to the terms of the February 2015 ASR Agreement, the Company paid the financial institution $400.0 million in cash and received a delivery of 8,226,297 shares of the Company's common stock in fiscal year 2015 based on a weighted average cost per share of $48.62 over the term of the February...

  • Page 92
    ... board of directors approved an increase to the next quarterly dividend to $0.30 per share of common stock, payable March 16, 2016 to shareholders of record as of the close of business on March 7, 2016. (14) Equity incentive plans The Dunkin' Brands Group, Inc. 2015 Omnibus Long-Term Incentive Plan...

  • Page 93
    ... related to nonexecutive and 2011 Plan options. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 2.5 years. Restricted stock units The Company typically grants restricted stock units to certain employees and non-employee members of our board...

  • Page 94
    ...in thousands, except share and per share amounts): Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Net income attributable to Dunkin' Brands-basic and diluted Weighted average number of common shares: Common-basic Common-diluted Earnings per common share: Common-basic Common...

  • Page 95
    ..., the weighted average number of common shares in the common diluted earnings per share calculation excludes 2,985,215, 1,373,379, and 1,100,275 equity awards for fiscal years 2015, 2014, and 2013, respectively, as they would be antidilutive. (16) Income taxes Income (loss) before income taxes was...

  • Page 96
    ... and liabilities at the applicable U.S. deferred tax rate, partially offset by income recognized for the tax basis of DBCL's assets. During fiscal year 2013, the Company recorded a net tax benefit of $8.4 million related to the reversal of reserves for uncertain tax positions, including interest and...

  • Page 97
    ... Company's unrecognized tax benefits is as follows (in thousands): Fiscal year ended December 26, 2015 December 27, 2014 December 28, 2013 Balance at beginning of year Increases related to prior year tax positions Increases related to current year tax positions Decreases related to prior year tax...

  • Page 98
    ... internal forecasts, prior history, and ability to extend contract terms, we accrued $507 thousand related to supply chain commitments as of December 27, 2014, which is included in other current liabilities in the consolidated balance sheets. There was no accrual required as of December 26, 2015...

  • Page 99
    ...Canada, The Baskin-Robbins Employees' Pension Plan ("Canadian Pension Plan"), which provided retirement benefits for the majority of its Canadian employees. During fiscal year 2012, the Company's board of directors approved a plan to close the Peterborough, Ontario, Canada manufacturing plant, where...

  • Page 100
    ...other assets in the consolidated balance sheets. During fiscal years 2015 and 2014, the Company recognized sales of ice cream and other products of $4.0 million and $5.8 million, respectively, in the consolidated statements of operations from the sale of ice cream products to the Australia JV. As of...

  • Page 101
    ...board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal...

  • Page 102
    ... Board (United States), the consolidated balance sheets of Dunkin' Brands Group, Inc. and subsidiaries as of December 26, 2015 and December 27, 2014, and the related consolidated statements of operations, comprehensive income, stockholders' equity (deficit), and cash flows for each of the years...

  • Page 103
    ..., Inc. and formerly served on the boards of Lorillard, Inc. and Bombay Company, Inc. Paul Carbone, age 49, was named Senior Vice President and Chief Financial Officer on June 4, 2012. Prior to that, Mr. Carbone had served as Vice President, Financial Management of Dunkin' Brands since 2008. Prior to...

  • Page 104
    ... and Managing Director of Baskin-Robbins Worldwide. The remaining information required by this item will be contained in our definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, which will be filed not later than 120 days after the close of our fiscal year ended December 26, 2015...

  • Page 105
    ...Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013) Dunkin' Brands Group, Inc. 2015 Omnibus Long-Term Incentive Plan (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8, File No. 333-204454) Dunkin' Brands Group...

  • Page 106
    ... fiscal year ended December 31, 2011, File No. 001-35258, filed with the SEC on March 16, 2012) Offer Letter to Paul Carbone dated June 4, 2012 (incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013) Form...

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    ...on February 22, 2013) Form of Dunkin' Donuts Store Development Agreement (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed with the SEC on February 24, 2012) Form of Baskin-Robbins Store Development Agreement (incorporated by reference...

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    ... duly authorized. Date: February 18, 2016 DUNKIN' BRANDS GROUP, INC. By: Name: Title: /s/ Nigel Travis Nigel Travis Chairman and Chief Executive Officer 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...

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    DUNKIN' BRANDS GROUP, INC. 130 ROYALL STREET CANTON, MA 02021