Bloomin’ Brands(BLMN) - 2022 Q4 - Annual Report

Tax and Financial Reporting - As of December 25, 2022, the company had $17.9 million of unrecognized tax benefits, which could impact the effective income tax rate if recognized[19]. - The company maintains effective internal control over financial reporting, which is necessary for accurate financial information[51]. Commodity and Labor Cost Inflation - The company experienced 14.6% commodity inflation in 2022 and anticipates mid single digits commodity inflation for 2023[23]. - Labor cost inflation was 7.8% in 2022, with expectations of mid single digits inflation in 2023[25]. - Approximately 60% of the company's estimated 2023 annual food purchases are covered by fixed contracts, most of which will expire during 2023[22]. - As of December 25, 2022, approximately 60% of the estimated 2023 annual food purchases are covered by fixed contracts, most of which are scheduled to expire during 2023[22]. Market Risks - The company is exposed to market risks from changes in commodity prices, labor inflation, interest rates, and foreign currency exchange rates[21]. - The company does not currently use financial instruments to hedge commodity risk or foreign currency exchange rate changes[23][30]. - A 10% change in average foreign currency rates against the U.S. dollar would have impacted total revenues and net income for foreign entities by $54.4 million and $3.6 million, respectively[31]. - A hypothetical 150 basis point change in short-term interest rates would increase or decrease annual interest expense by $6.5 million[29]. Stock Price Volatility - The company’s stock price is subject to volatility due to various factors, including fluctuations in operating results and market conditions[27]. - The stock price is subject to volatility due to various factors, including fluctuations in operating results and competitive actions[27]. Insurance and Business Operations - The company carries insurance programs with specific retention levels, but certain losses may not be insurable, potentially affecting business operations[55].