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New Accounting Standards Revenue Recognition (Tables)
 6 Months Ended
Jul. 01, 2018
Adoption for Topic 606 Revenue Recognition [Abstract]  
Schedule of New Accounting Pronouncements
The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s condensed consolidated financial statements:
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Condensed Consolidated Balance Sheet
 
 
 
 
 
 
 
July 1, 2018
 
 
 
 
 
 
 
Accrued expenses and other current liabilities
$
103,351

 
$
(1,733
)
 
$
—

 
$
101,618

Advertising funds restricted liabilities
96,972

 
—

 
(6,645
)
 
90,327

Total current liabilities
252,762

 
(1,733
)
 
(6,645
)
 
244,384

Deferred income taxes
274,344

 
21,587

 
—

 
295,931

Deferred franchise fees
93,139

 
(81,999
)
 
—

 
11,140

Total liabilities
3,649,640

 
(62,145
)
 
(6,645
)
 
3,580,850

Accumulated deficit
(224,120
)
 
62,384

 
6,645

 
(155,091
)
Accumulated other comprehensive loss
(56,450
)
 
(239
)
 
—

 
(56,689
)
Total stockholders’ equity
430,539

 
62,145

 
6,645

 
499,329

 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations
 
 
 
 
 
 
Three Months Ended July 1, 2018
 
 
 
 
 
 
 
Franchise royalty revenue and fees (a)
$
107,559

 
$
(724
)
 
$
—

 
$
106,835

Advertising funds revenue
84,570

 
—

 
(84,570
)
 
—

Total revenues
411,002

 
(724
)
 
(84,570
)
 
325,708

Advertising funds expense
84,570

 
—

 
(84,570
)
 
—

Total costs and expenses
339,519

 
—

 
(84,570
)
 
254,949

Operating profit
71,483

 
(724
)
 
—

 
70,759

Income before income taxes
42,264

 
(724
)
 
—

 
41,540

Provision for income taxes
(12,388
)
 
187

 
—

 
(12,201
)
Net income
29,876

 
(537
)
 
—

 
29,339

 
 
 
 
 
 
 
 
Six Months Ended July 1, 2018
 
 
 
 
 
 
 
Franchise royalty revenue and fees (a)
$
205,467

 
$
(1,590
)
 
$
—

 
$
203,877

Advertising funds revenue
163,470

 
—

 
(163,470
)
 
—

Total revenues
791,566

 
(1,590
)
 
(163,470
)
 
626,506

Advertising funds expense
163,470

 
—

 
(163,470
)
 
—

Total costs and expenses
664,821

 
—

 
(163,470
)
 
501,351

Operating profit
126,745

 
(1,590
)
 
—

 
125,155

Income before income taxes
56,617

 
(1,590
)
 
—

 
55,027

Provision for income taxes
(6,582
)
 
409

 
—

 
(6,173
)
Net income
50,035

 
(1,181
)
 
—

 
48,854

_______________

(a)
The adjustments for the three and six months ended July 1, 2018 include the reversal of franchise fees recognized over time under the new revenue recognition guidance of $2,439 and $5,127, respectively, as well as franchisee fees that would have been recognized under the previous revenue recognition guidance when the license agreements were signed and the restaurant opened of $1,715 and $3,537, respectively. See Note 3 for further information.
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Condensed Consolidated Statement of Cash Flows
 
 
 
 
 
 
Six Months Ended July 1, 2018
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
50,035

 
$
(1,181
)
 
$
—

 
$
48,854

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Deferred income tax
(2,508
)
 
(409
)
 
—

 
(2,917
)
Other, net
(1,093
)
 
(309
)
 
—

 
(1,402
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Accrued expenses and other current liabilities
(6,034
)
 
1,899

 
—

 
(4,135
)