Baskin Robbins 2015 Annual Report Download - page 41

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-31-
Fiscal Year
2015 2014 2013 2012 2011
(Unaudited, $ in thousands)
Operating income $ 319,567 338,858 304,736 239,429 205,309
Adjustments:
Amortization of other intangible assets 24,688 25,760 26,943 26,943 28,025
Long-lived asset impairment charges 623 1,484 563 1,278 2,060
Third-party product volume guarantee —(300) 7,500 — —
Sponsor termination fee ————14,671
Secondary offering costs — — — 4,783 1,899
Peterborough plant closure(a) 4,075 — 654 14,044 —
Transaction costs(b) 424154———
Japan joint venture impairment, net(c) 53,853————
South Korea joint venture impairment, net(d) ————18,776
Bertico litigation(e) (2,753) — — 20,680 —
Adjusted operating income $ 400,477 365,956 340,396 307,157 270,740
Net income attributable to Dunkin’ Brands $ 105,227 176,357 146,903 108,308 34,442
Adjustments:
Amortization of other intangible assets 24,688 25,760 26,943 26,943 28,025
Long-lived asset impairment charges 623 1,484 563 1,278 2,060
Third-party product volume guarantee —(300) 7,500 — —
Sponsor termination fee ————14,671
Secondary offering costs — — — 4,783 1,899
Peterborough plant closure(a) 4,075 — 654 14,044 —
Transaction costs(b) 424154———
Japan joint venture impairment, net(c) 53,853————
South Korea joint venture impairment, net(d) ————18,776
Bertico litigation(e) (2,753) — — 20,680 —
Loss on debt extinguishment and
refinancing transactions 20,554 13,735 5,018 3,963 34,222
Tax impact of adjustments, excluding
Bertico litigation(f) (19,044)(16,333)(16,271)(20,404)(32,351)
Tax impact of Bertico adjustment(g) ———
(3,980)—
Income tax audit settlements(h) —(6,717)(8,417)(10,514)—
Tax impact of legal entity conversion(i) 246 (8,541)———
State tax apportionment(j) — 514 2,868 4,599 —
Adjusted net income $ 187,893 186,113 165,761 149,700 101,744
(a) For fiscal year 2012, the adjustment includes $3.4 million of severance and other payroll-related costs, $4.2 million of
accelerated depreciation, $2.7 million of incremental costs of ice cream products, and $1.6 million of other transition-
related costs incurred related to the 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 fiscal year 2013, the
adjustment represents transition-related general and administrative costs incurred related to the plant closure, such as
information technology integration, project management, and transportation costs. For fiscal year 2015, the adjustment
represents costs incurred related to the final settlement of the Canadian pension plan as a result of the plant closure.
(b) Represents non-capitalizable costs incurred in connection with obtaining a new securitized financing facility, which was
completed in January 2015.
(c) Amount consists of an other-than-temporary impairment of the investment in the Japan joint venture of $54.3 million, less
a reduction in depreciation and amortization of $0.4 million resulting from the allocation of the impairment charge to the
underlying long-lived assets of the joint venture.