Supplemental Guarantor Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2011

Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidating Financial Statements

The Company’s senior notes are jointly and severally guaranteed on a senior unsecured basis by each of its current and future domestic 100% owned restricted subsidiaries in its Outback Steakhouse and Carrabba's Italian Grill concepts and certain non-restaurant subsidiaries (the “Guarantors”) and by OSI HoldCo, Inc. (“OSI HoldCo”), the Company’s direct owner and an indirect, wholly-owned subsidiary of Kangaroo Holdings, Inc., the Company’s ultimate parent. All other concepts and certain non-restaurant subsidiaries of the Company do not guarantee the senior notes (“Non-Guarantors”).

The following condensed consolidating financial statements present the financial position, results of operations and cash flows for the periods indicated (in thousands) of OSI Restaurant Partners, LLC - Parent only (“OSI Parent”), OSI Co-Issuer, which is a wholly-owned subsidiary and exists solely for the purpose of serving as a co-issuer of the senior notes, the Guarantors, the Non-Guarantors and the elimination entries necessary to consolidate the Company. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidated presentation. The principal elimination entries relate to senior notes presented as an obligation of both OSI Parent and OSI Co-Issuer, investments in subsidiaries, and intercompany balances and transactions.



	CONDENSED CONSOLIDATING BALANCE SHEET
	AS OF DECEMBER 31, 2011
	OSI Parent		OSI Co-Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	237,336	$	—	$	37,886	$	93,916	$	—		$	369,138
Current portion of restricted cash	258		—		4,801		—		—			5,059
Inventories	23,432		—		27,974		17,817		—			69,223
Deferred income tax assets	27,585		—		1,652		1,585		—			30,822
Other current assets	19,858		—		67,005		19,594		—			106,457
Total current assets	308,469		—		139,318		132,912		—			580,699
Property, fixtures and equipment, net	27,514		—		507,072		271,418		—			806,004
Investments in and advances to unconsolidated affiliates, net	1,013		—		—		34,020		—			35,033
Investments in subsidiaries	—		—		9,096		—		(9,096		)	—
Due from (to) subsidiaries	1,840,863		—		1,678,432		583,480		(4,102,775		)	—
Goodwill	—		—		299,138		140,281		—			439,419
Intangible assets, net	—		—		418,934		153,214		—			572,148
Other assets, net	71,554		—		20,147		40,555		—			132,256
Total assets	$	2,249,413	$	—	$	3,072,137	$	1,355,880	$	(4,111,871	)	$	2,565,559



	CONDENSED CONSOLIDATING BALANCE SHEET
	AS OF DECEMBER 31, 2011
	OSI Parent			OSI Co-Issuer			Guarantors		Non-Guarantors			Eliminations			Consolidated
LIABILITIES AND (DEFICIT) EQUITY
Current Liabilities
Accounts payable	$	21,347		$	—		$	38,954	$	35,497		$	—		$	95,798
Accrued and other current liabilities	65,844			—			89,705		53,846			—			209,395
Current portion of partner deposits and accrued partner obligations	115			—			7,386		7,543			—			15,044
Unearned revenue	39			—			237,207		62,350			—			299,596
Current portion of long-term debt	46,768			—			3,479		1,340			—			51,587
Total current liabilities	134,113			—			376,731		160,576			—			671,420
Partner deposits and accrued partner obligations	4,281			—			73,044		21,356			—			98,681
Deferred rent	1,184			—			67,863		34,392			—			103,439
Deferred income tax liabilities	61,333			—			135,220		(1,996		)	—			194,557
Long-term debt	1,250,533			248,075			5,554		1,790			(248,075		)	1,257,877
Guaranteed debt	—			—			—		24,500			—			24,500
Accumulated losses in subsidiaries in excess of investment	262,718			—			—		—			(262,718		)	—
Due to (from) subsidiaries	397,932			—			2,270,699		1,434,144			(4,102,775		)	—
Other long-term liabilities, net	150,672			—			49,458		18,846			—			218,976
Total liabilities	2,262,766			248,075			2,978,569		1,693,608			(4,613,568		)	2,569,450
(Deficit) Equity
OSI Restaurant Partners, LLC Unitholder’s (Deficit) Equity
Additional paid-in capital	743,009			(248,075		)	—		—			248,075			743,009
(Accumulated deficit) retained earnings	(734,498		)	—			93,568		(325,341		)	231,773			(734,498		)
Accumulated other comprehensive (loss) income	(21,849		)	—			—		(21,849		)	21,849			(21,849		)
Total OSI Restaurant Partners, LLC unitholder’s (deficit) equity	(13,338		)	(248,075		)	93,568		(347,190		)	501,697			(13,338		)
Noncontrolling interests	(15		)	—			—		9,462			—			9,447
Total (deficit) equity	(13,353		)	(248,075		)	93,568		(337,728		)	501,697			(3,891		)
	$	2,249,413		$	—		$	3,072,137	$	1,355,880		$	(4,111,871	)	$	2,565,559



	CONDENSED CONSOLIDATING BALANCE SHEET
	AS OF DECEMBER 31, 2010
	OSI Parent		OSI Co-Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	156,274	$	—	$	77,714	$	66,123	$	—		$	300,111
Current portion of restricted cash	660		—		4,485		—		—			5,145
Inventories	10,699		—		30,786		17,489		—			58,974
Deferred income tax assets	24,130		—		2,426		131		—			26,687
Other current assets	23,572		—		33,631		16,754		—			73,957
Total current assets	215,335		—		149,042		100,497		—			464,874
Property, fixtures and equipment, net	24,975		—		492,298		298,725		—			815,998
Investments in and advances to unconsolidated affiliates, net	638		—		—		31,035		—			31,673
Investments in subsidiaries	—		—		5,728		—		(5,728		)	—
Due from (to) subsidiaries	2,040,813		—		918,792		694,137		(3,653,742		)	—
Goodwill	—		—		339,462		109,260		—			448,722
Intangible assets, net	—		—		427,169		150,897		—			578,066
Other assets, net	73,999		—		20,103		45,688		—			139,790
Total assets	$	2,355,760	$	—	$	2,352,594	$	1,430,239	$	(3,659,470	)	$	2,479,123



	CONDENSED CONSOLIDATING BALANCE SHEET
	AS OF DECEMBER 31, 2010
	OSI Parent			OSI Co-Issuer			Guarantors		Non-Guarantors			Eliminations			Consolidated
LIABILITIES AND (DEFICIT) EQUITY
Current Liabilities
Accounts payable	$	7,625		$	—		$	36,756	$	32,538		$	—		$	76,919
Accrued and other current liabilities	66,053			—			84,323		46,323			—			196,699
Current portion of partner deposits and accrued partner obligations	110			—			8,414		5,477			—			14,001
Unearned revenue	277			—			213,422		55,359			—			269,058
Current portion of long-term debt	91,355			—			2,755		1,174			—			95,284
Total current liabilities	165,420			—			345,670		140,871			—			651,961
Partner deposits and accrued partner obligations	210			—			84,683		25,013			—			109,906
Deferred rent	679			—			55,581		28,435			—			84,695
Deferred income tax liabilities	58,392			—			135,758		(3,371		)	—			190,779
Long-term debt	1,270,236			248,075			5,341		1,466			(248,075		)	1,277,043
Guaranteed debt	—			—			—		24,500			—			24,500
Accumulated losses in subsidiaries in excess of investment	423,881			—			—		—			(423,881		)	—
Due to (from) subsidiaries	384,704			—			1,671,652		1,597,386			(3,653,742		)	—
Other long-term liabilities, net	143,507			—			52,690		21,968			—			218,165
Total liabilities	2,447,029			248,075			2,351,375		1,836,268			(4,325,698		)	2,557,049
(Deficit) Equity
OSI Restaurant Partners, LLC Unitholder’s (Deficit) Equity
Additional paid-in capital	735,760			(248,075		)	—		—			248,075			735,760
(Accumulated deficit) retained earnings	(815,252		)	—			1,219		(407,616		)	406,397			(815,252		)
Accumulated other comprehensive (loss) income	(11,757		)	—			—		(11,756		)	11,756			(11,757		)
Total OSI Restaurant Partners, LLC unitholder’s (deficit) equity	(91,249		)	(248,075		)	1,219		(419,372		)	666,228			(91,249		)
Noncontrolling interests	(20		)	—			—		13,343			—			13,323
Total (deficit) equity	(91,269		)	(248,075		)	1,219		(406,029		)	666,228			(77,926		)
	$	2,355,760		$	—		$	2,352,594	$	1,430,239		$	(3,659,470	)	$	2,479,123



	CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
	YEAR ENDED DECEMBER 31, 2011
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues
Restaurant sales	$	74		$	—	$	2,649,095		$	1,154,083		$	—		$	3,803,252
Other revenues	2,706			—		16,835			18,650			—			38,191
Total revenues	2,780			—		2,665,930			1,172,733			—			3,841,443
Costs and expenses
Cost of sales	—			—		860,662			365,555			—			1,226,217
Labor and other related	4,374			—		766,217			324,789			—			1,095,380
Other restaurant operating	—			—		695,501			269,422			—			964,923
Depreciation and amortization	2,234			—		81,034			50,364			—			133,632
General and administrative	47,641			—		170,827			71,784			—			290,252
Recovery of note receivable from affiliated entity	(33,150		)	—		—			—			—			(33,150		)
Provision for impaired assets and restaurant closings	(2,791		)	—		2,150			992			—			351
Income from operations of unconsolidated affiliates	(1,335		)	—		—			(6,774		)	—			(8,109		)
Total costs and expenses	16,973			—		2,576,391			1,076,132			—			3,669,496
(Loss) income from operations	(14,193		)	—		89,539			96,601			—			171,947
Equity in earnings (losses) of subsidiaries	171,256			—		3,369			—			(174,625		)	—
Other income, net	—			—		—			830			—			830
Interest (expense) income, net	(62,547		)	—		(300		)	332			—			(62,515		)
Income (loss) before provision for income taxes	94,516			—		92,608			97,763			(174,625		)	110,262
Provision for income taxes	13,937			—		258			6,139			—			20,334
Net income (loss)	80,579			—		92,350			91,624			(174,625		)	89,928
Less: net (loss) income attributable to noncontrolling interests	(175		)	—		—			9,349			—			9,174
Net income (loss) attributable to OSI Restaurant Partners, LLC	$	80,754		$	—	$	92,350		$	82,275		$	(174,625	)	$	80,754



	CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
	YEAR ENDED DECEMBER 31, 2010
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues
Restaurant sales	$	120		$	—	$	2,553,517		$	1,041,044		$	—		$	3,594,681
Other revenues	3,137			—		16,623			14,025			—			33,785
Total revenues	3,257			—		2,570,140			1,055,069			—			3,628,466
Costs and expenses
Cost of sales	—			—		828,193			323,758			—			1,151,951
Labor and other related	3,690			—		734,706			295,912			—			1,034,308
Other restaurant operating	2,783			—		679,637			256,932			—			939,352
Depreciation and amortization	814			—		82,561			52,021			—			135,396
General and administrative	42,362			—		136,318			72,593			—			251,273
Provision for impaired assets and restaurant closings	1,372			—		4,590			913			—			6,875
Income from operations of unconsolidated affiliates	(23		)	—		—			(5,465		)	—			(5,488		)
Total costs and expenses	50,998			—		2,466,005			996,664			—			3,513,667
(Loss) income from operations	(47,741		)	—		104,135			58,405			—			114,799
Equity in earnings (losses) of subsidiaries	145,901			—		2,792			—			(148,693		)	—
Other income, net	—			—		—			2,993			—			2,993
Interest expense, net	(69,188		)	—		(199		)	(483		)	—			(69,870		)
Income (loss) before provision for income taxes	28,972			—		106,728			60,915			(148,693		)	47,922
Provision for income taxes	7,348			—		4,685			8,045			—			20,078
Net income (loss)	21,624			—		102,043			52,870			(148,693		)	27,844
Less: net (loss) income attributable to noncontrolling interests	(12		)	—		—			6,220			—			6,208
Net income (loss) attributable to OSI Restaurant Partners, LLC	$	21,636		$	—	$	102,043		$	46,650		$	(148,693	)	$	21,636



	CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
	YEAR ENDED DECEMBER 31, 2009
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations		Consolidated
Revenues
Restaurant sales	$	—		$	—	$	2,523,738		$	1,050,023		$	—	$	3,573,761
Other revenues	1,189			—		15,352			11,525			—		28,066
Total revenues	1,189			—		2,539,090			1,061,548			—		3,601,827
Costs and expenses
Cost of sales	—			—		852,828			331,473			—		1,184,301
Labor and other related	10,282			—		713,508			300,200			—		1,023,990
Other restaurant operating	1,028			—		658,091			267,224			—		926,343
Depreciation and amortization	953			—		103,504			58,274			—		162,731
General and administrative	60,291			—		119,919			69,887			—		250,097
Loss on contingent debt guarantee	24,500			—		—			—			—		24,500
Goodwill impairment	—			—		1,146			9,932			—		11,078
Provision for impaired assets and restaurant closings	44			—		61,059			77,109			—		138,212
Loss (income) from operations of unconsolidated affiliates	608			—		—			(2,804		)	—		(2,196		)
Total costs and expenses	97,706			—		2,510,055			1,111,295			—		3,719,056
(Loss) income from operations	(96,517		)	—		29,035			(49,747		)	—		(117,229		)
Gain on extinguishment of debt	158,061			—		—			—			—		158,061
Equity in (losses) earnings of subsidiaries	(17,946		)	—		1,531			—			16,415		—
Other expense, net	(6		)	—		—			(192		)	—		(198		)
Interest expense, net	(87,678		)	—		(4,921		)	(407		)	—		(93,006		)
(Loss) income before provision (benefit) for income taxes	(44,086		)	—		25,645			(50,346		)	16,415		(52,372		)
Provision (benefit) for income taxes	9,940			—		(10,391		)	2,485			—		2,034
Net (loss) income	(54,026		)	—		36,036			(52,831		)	16,415		(54,406		)
Less: net loss attributable to noncontrolling interests	—			—		—			(380		)	—		(380		)
Net (loss) income attributable to OSI Restaurant Partners, LLC	$	(54,026	)	$	—	$	36,036		$	(52,451	)	$	16,415	$	(54,026	)



	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
	YEAR ENDED DECEMBER 31, 2011
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	134,764		$	—	$	67,371		$	72,492		$	—	$	274,627
Cash flows used in investing activities:
Purchases of Company-owned life insurance	(2,027		)	—		—			—			—		(2,027		)
Proceeds from sale of Company-owned life insurance	2,638			—		—			—			—		2,638
Proceeds from sale of property, fixtures and equipment	—			—		1,096			60			—		1,156
Proceeds from sale of a subsidiary	—			—		—			10,119			—		10,119
Capital expenditures	(13,042		)	—		(86,113		)	(21,751		)	—		(120,906		)
Restricted cash received for capital expenditures, property taxes and certain deferred compensation plans	74,349			—		9,230			—			—		83,579
Restricted cash used to fund capital expenditures, property taxes and certain deferred compensation plans	(73,612		)	—		(9,536		)	—			—		(83,148		)
Royalty termination fee	—			—		—			(8,547		)	—		(8,547		)
Payments from unconsolidated affiliates	960			—		—			—			—		960
Net cash used in investing activities	(10,734		)	—		(85,323		)	(20,119		)	—		(116,176		)
Cash flows used in financing activities:
Repayments of long-term debt	(20,783		)	—		(3,021		)	(1,351		)	—		(25,155		)
Proceeds from borrowings on revolving credit facilities	33,000			—		—			—			—		33,000
Repayments of borrowings on revolving credit facilities	(78,072		)	—		—			—			—		(78,072		)
Collection of note receivable from affiliated entity	33,300			—		—			—			—		33,300
Contributions from noncontrolling interests	178			—		—			244			—		422
Distributions to noncontrolling interests	—			—		—			(13,510		)	—		(13,510		)
Repayments of partner deposits and accrued partner obligations	(11,357		)	—		(19,027		)	(6,902		)	—		(37,286		)
Receipts of partner deposits and other contributions	766			—		172			398			—		1,336
Net cash used in financing activities	(42,968		)	—		(21,876		)	(21,121		)	—		(85,965		)
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(3,459		)	—		(3,459		)
Net increase (decrease) in cash and cash equivalents	81,062			—		(39,828		)	27,793			—		69,027
Cash and cash equivalents at the beginning of the period	156,274			—		77,714			66,123			—		300,111
Cash and cash equivalents at the end of the period	$	237,336		$	—	$	37,886		$	93,916		$	—	$	369,138



	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
	YEAR ENDED DECEMBER 31, 2010
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	183,690		$	—	$	4,086		$	37,758		$	—	$	225,534
Cash flows used in investing activities:
Purchases of Company-owned life insurance	(2,405		)	—		—			—			—		(2,405		)
Proceeds from sale of Company-owned life insurance	6,411			—		—			—			—		6,411
Proceeds from sale of property, fixtures and equipment	—			—		462			—			—		462
De-consolidation of subsidiary	(4,398		)	—		—			—			—		(4,398		)
Capital expenditures	(6,899		)	—		(39,924		)	(13,653		)	—		(60,476		)
Restricted cash received for capital expenditures, property taxes and certain deferred compensation plans	7,411			—		9,334			—			—		16,745
Restricted cash used to fund capital expenditures, property taxes and certain deferred compensation plans	(7,323		)	—		(10,537		)	—			—		(17,860		)
Net cash used in investing activities	(7,203		)	—		(40,665		)	(13,653		)	—		(61,521		)
Cash flows used in financing activities:
Repayments of long-term debt	(136,964		)	—		(2,372		)	(1,517		)	—		(140,853		)
Proceeds from borrowings on revolving credit facilities	61,000			—		—			—			—		61,000
Repayments of borrowings on revolving credit facilities	(55,928		)	—		—			—			—		(55,928		)
Deferred financing fees	(1,286		)	—		—			—			—		(1,286		)
Contributions from OSI HoldCo, Inc.	15,000			—		—			—			—		15,000
Contributions from noncontrolling interests	39			—		—			86			—		125
Distributions to noncontrolling interests	—			—		—			(11,596		)	—		(11,596		)
Repayments of partner deposits and accrued partner obligations	(7,980		)	—		(10,080		)	(2,876		)	—		(20,936		)
Receipts of partner deposits and other contributions	—			—		2,185			729			—		2,914
Net cash used in financing activities	(126,119		)	—		(10,267		)	(15,174		)	—		(151,560		)
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(1,504		)	—		(1,504		)
Net increase (decrease) in cash and cash equivalents	50,368			—		(46,846		)	7,427			—		10,949
Cash and cash equivalents at the beginning of the period	105,906			—		124,560			58,696			—		289,162
Cash and cash equivalents at the end of the period	$	156,274		$	—	$	77,714		$	66,123		$	—	$	300,111



	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
	YEAR ENDED DECEMBER 31, 2009
	OSI Parent			OSI Co-Issuer		Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(50,766	)	$	—	$	114,138		$	79,749		$	—	$	143,121
Cash flows provided by (used in) investing activities:
Purchases of Company-owned life insurance	(6,571		)	—		—			—			—		(6,571		)
Proceeds from sale of Company-owned life insurance	16,886			—		—			—			—		16,886
Proceeds from sale of property, fixtures and equipment	—			—		961			—			—		961
Acquisition of business	—			—		—			(450		)	—		(450		)
Proceeds from the disposal of subsidiary	—			—		—			1,653			—		1,653
Capital expenditures	(2,258		)	—		(35,945		)	(19,325		)	—		(57,528		)
Restricted cash received for capital expenditures, property taxes and certain deferred compensation plans	15,994			—		9,304			—			—		25,298
Restricted cash used to fund capital expenditures, property taxes and certain deferred compensation plans	(14,513		)	—		(9,269		)	—			—		(23,782		)
Payments from unconsolidated affiliates	—			—		—			165			—		165
Net cash provided by (used in) investing activities	9,538			—		(34,949		)	(17,957		)	—		(43,368		)
Cash flows used in financing activities:
Repayments of long-term debt	(13,105		)	—		(5,371		)	(2,063		)	—		(20,539		)
Proceeds from borrowings on revolving credit facilities	23,700			—		—			—			—		23,700
Repayments of borrowings on revolving credit facilities	(12,700		)	—		—			—			—		(12,700		)
Extinguishment of senior notes	(75,967		)	—		—			—			—		(75,967		)
Deferred financing fees	—			—		—			(155		)	—		(155		)
Purchase of note related to guaranteed debt of affiliated entity	—			—		—			(33,283		)	—		(33,283		)
Contributions from OSI HoldCo, Inc.	47,000			—		—			—			—		47,000
Contributions from noncontrolling interests	—			—		—			1,747			—		1,747
Distributions to noncontrolling interests	—			—		—			(9,083		)	—		(9,083		)
Repayments of partner deposits and accrued partner obligations	(69		)	—		(2,980		)	(4,075		)	—		(7,124		)
Receipts of partner deposits and other contributions	—			—		2,085			1,306			—		3,391
Net cash used in financing activities	(31,141		)	—		(6,266		)	(45,606		)	—		(83,013		)
Effect of exchange rate changes on cash and cash equivalents	—			—		—			952			—		952
Net (decrease) increase in cash and cash equivalents	(72,369		)	—		72,923			17,138			—		17,692
Cash and cash equivalents at the beginning of the period	178,275			—		51,637			41,558			—		271,470
Cash and cash equivalents at the end of the period	$	105,906		$	—	$	124,560		$	58,696		$	—	$	289,162

OSI RESTAURANT PARTNERS, LLC 10-K