UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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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
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip code) |
(
Registrant’s telephone number, including area code
None
Former name, former address and former fiscal year, if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
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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.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).
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 |
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Accelerated Filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
The number of shares outstanding of the registrant’s common stock as of July 31, 2020 was
TABLE OF CONTENTS
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Item 1 |
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3 |
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Condensed Consolidated Balance Sheets as of June 28, 2020 and December 29, 2019 |
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4 |
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5 |
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6 |
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7 |
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Item 2 |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3 |
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30 |
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Item 4 |
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32 |
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Item 1 |
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32 |
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Item 1A |
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32 |
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Item 2 |
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33 |
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Item 3 |
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33 |
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Item 4 |
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34 |
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Item 5 |
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34 |
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Item 6 |
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34 |
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35 |
2
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RUTH’S HOSPITALITY GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets—Unaudited
(Amounts in thousands, except share and per share data)
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June 28, |
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December 29, |
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2020 |
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2019 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable, less allowance for doubtful accounts 2020 - $ |
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Inventory |
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Prepaid expenses and other |
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Total current assets |
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Property and equipment, net of accumulated depreciation 2020 - $ $ |
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Operating lease right of use assets |
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Goodwill |
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Franchise rights, net of accumulated amortization 2020 - $ |
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Other intangibles, net of accumulated amortization 2020 - $ |
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Deferred income taxes |
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Income tax receivable |
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— |
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Other assets |
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Total assets |
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$ |
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$ |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
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Accrued payroll |
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Accrued expenses |
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Deferred revenue |
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Current operating lease liabilities |
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Other current liabilities |
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Total current liabilities |
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Long-term debt |
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Operating lease liabilities |
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Unearned franchise fees |
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Other liabilities |
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Total liabilities |
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Commitments and contingencies (Note 12) |
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Shareholders' equity: |
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Common stock, par value $ shares issued and outstanding at June 28, 2020, outstanding at December 29, 2019 |
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Additional paid-in capital |
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Retained earnings |
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Treasury stock, at cost; |
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Total shareholders' equity |
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Total liabilities and shareholders' equity |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
3
RUTH’S HOSPITALITY GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations—Unaudited
(Amounts in thousands, except share and per share data)
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13 Weeks Ended |
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26 Weeks Ended |
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June 28, |
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June 30, |
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June 28, |
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June 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues: |
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Restaurant sales |
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$ |
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$ |
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$ |
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$ |
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Franchise income |
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Other operating income |
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Total revenues |
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Costs and expenses: |
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Food and beverage costs |
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Restaurant operating expenses |
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Marketing and advertising |
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General and administrative costs |
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Depreciation and amortization expenses |
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Pre-opening costs |
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Gain on lease modifications |
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( |
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— |
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( |
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— |
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Loss on impairment |
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— |
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— |
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Total costs and expenses |
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Operating income (loss) |
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( |
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( |
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Other income (expense): |
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Interest expense, net |
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( |
) |
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( |
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( |
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( |
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Other |
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Income (loss) before income taxes |
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( |
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( |
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Income tax expense (benefit) |
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( |
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( |
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Net income (loss) |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Basic earnings (loss) per common share |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Diluted earnings (loss) per common share |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Shares used in computing earnings (loss) per common share: |
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Basic |
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Diluted |
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Cash dividends declared per common share |
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$ |
— |
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$ |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
4
RUTH’S HOSPITALITY GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders’ Equity—Unaudited
(Amounts in thousands, except per share data)
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Additional |
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Common Stock |
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Paid-in |
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Retained |
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Treasury Stock |
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Shareholders' |
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Shares |
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Value |
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Capital |
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Earnings |
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Shares |
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Value |
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Equity |
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Balance at December 29, 2019 |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
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Net loss |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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Cash dividends, $ |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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Repurchase of common stock |
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( |
) |
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( |
) |
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( |
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— |
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— |
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— |
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( |
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Shares issued under stock compensation plan net of shares withheld for tax effects |
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( |
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— |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Balance at March 29, 2020 |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
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Net loss |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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Stock issuance |
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— |
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— |
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— |
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Shares issued under stock compensation plan net of shares withheld for tax effects |
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( |
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— |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Balance at June 28, 2020 |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
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Balance at December 30, 2018 |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Cash dividends, $ |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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Repurchase of common stock |
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( |
) |
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— |
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( |
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— |
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— |
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— |
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( |
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Shares issued under stock compensation plan net of shares withheld for tax effects |
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( |
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— |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Cumulative effect of a change in accounting principle |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
Balance at March 31, 2019 |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Cash dividends, $ |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
Repurchase of common stock |
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( |
) |
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( |
) |
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( |
) |
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— |
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— |
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— |
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( |
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Shares issued under stock compensation plan net of shares withheld for tax effects |
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( |
) |
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— |
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— |
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— |
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( |
) |
Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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