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Shareholders' Equity
 12 Months Ended
Dec. 28, 2016
Stockholders' Equity Attributable to Parent [Abstract]  
Shareholders' Equity
Shareholders' Equity

Share Repurchases

Our credit facility permits the purchase of Denny’s stock and the payment of cash dividends subject to certain limitations. Over the past several years, our Board of Directors has approved share repurchase programs authorizing us to repurchase up to a set amount of shares or dollar amount of our common stock. Under the programs, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. During 2016, 2015 and 2013, the Board approved share repurchase programs for $100 million of our common stock, $100 million of our common stock and 10.0 million shares of our common stock, respectively.

In November 2015, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the “2015 ASR”) agreement with Wells Fargo Bank, National Association (“Wells Fargo”), to repurchase an aggregate of $50 million of our common stock. During 2015, pursuant to the terms of the 2015 ASR agreement, we paid $50 million in cash, received approximately 3.5 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $36.9 million of treasury stock related to these shares. The remaining balance of $13.1 million was included as additional paid-in capital in shareholders' equity as of December 30, 2015 as an equity forward contract. During 2016, we settled the 2015 ASR agreement, recording $13.1 million of treasury stock related to the final delivery of an additional 1.5 million shares of our common stock. The total number of shares repurchased was based on a combined discounted volume-weighted average price (VWAP) of $9.90 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the ASR agreement.

In November 2016, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the “2016 ASR”) agreement with MUFG Securities EMEA plc (“MUFG”), to repurchase an aggregate of $25 million of our common stock. Pursuant to the terms of the 2016 ASR agreement, we paid $25 million in cash and received approximately 1.5 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $18.1 million of treasury stock related to these shares. The remaining balance of $6.9 million was recorded as additional paid-in capital in shareholders' equity as of December 28, 2016 as an equity forward contract and will be settled during 2017. The total aggregate number of shares of our common stock repurchased pursuant to the ASR agreement will be based generally on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the 2016 ASR agreement, subject to a minimum number of shares. Subsequent to the year ended December 28, 2016, we settled the 2016 ASR agreement. See Note 19.

During 2016, including shares repurchased under the 2016 ASR, we repurchased a total of 4.6 million shares for $51.8 million, thus completing the 2015 repurchase program. In addition, we recorded 1.5 million and $13.1 million in treasury stock as a result of settling the 2015 ASR. During 2015 and 2014, we repurchased 8.5 million and 5.3 million shares for a total of $92.7 million and $36.0 million, respectively, thus completing the 2013 repurchase program. As of December 28, 2016, there was $79.2 million remaining under the 2016 repurchase program.

Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit.

Accumulated Other Comprehensive Loss

The components of the change in accumulated other comprehensive loss were as follows:

 
Pensions
 
Derivatives
 
Accumulated Other Comprehensive Loss
 
(In thousands)
Balance as of December 25, 2013
$
(18,690
)
 
$
1,848

 
$
(16,842
)
Benefit obligation actuarial loss
(12,611
)
 
—

 
(12,611
)
Net gain
1,248

 
—

 
1,248

Amortization of net loss (1)
990

 
—

 
990

Settlement loss recognized
50

 
—

 
50

Net change in fair value of derivatives
—

 
(2,389
)
 
(2,389
)
Income tax benefit
4,019

 
933

 
4,952

Balance as of December 31, 2014
$
(24,994
)
 
$
392

 
$
(24,602
)
Benefit obligation actuarial gain
5,737

 
—

 
5,737

Net loss
(3,894
)
 
—

 
(3,894
)
Amortization of net loss (1)
1,812

 
—

 
1,812

Net change in fair value of derivatives
—

 
(1,444
)
 
(1,444
)
Reclassification of derivatives to interest expense (2)
—

 
(859
)
 
(859
)
Income tax (expense) benefit
(1,425
)
 
898

 
(527
)
Balance as of December 30, 2015
$
(22,764
)
 
$
(1,013
)
 
$
(23,777
)
Benefit obligation actuarial loss
(73
)
 
—

 
(73
)
Net loss
(342
)
 
—

 
(342
)
Amortization of net loss (1)
85

 
—

 
85

Settlement loss recognized
24,297

 
—

 
24,297

Net change in fair value of derivatives
—

 
1,693

 
1,693

Reclassification of derivatives to interest expense (2)
—

 
(789
)
 
(789
)
Income tax (expense) benefit
(2,148
)
 
(353
)
 
(2,501
)
Balance as of December 31, 2016
$
(945
)
 
$
(462
)
 
$
(1,407
)


(1)
Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income. See Note 11 for additional details.
(2)
Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Consolidated Statements of Income. We expect to reclassify approximately $0.7 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.