Revenue (Tables)

6 Months Ended

Jul. 01, 2018

The following table disaggregates revenue by primary geographical market and source:



	Three Months Ended		Six Months Ended
	July 1, 2018		July 1, 2018
Primary geographical markets
United States	$	385,945	$	745,580
Canada	20,081		36,418
International	4,976		9,568
Total revenue	$	411,002	$	791,566

Sources of revenue
Sales at Company-operated restaurants	$	167,344	$	320,993
Franchise royalty revenue	98,158		188,101
Franchise fees	9,401		17,366
Franchise rental income	51,529		101,636
Advertising funds revenue	84,570		163,470
Total revenue	$	411,002	$	791,566

Contract balances, assets and liabilities

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:



	July 1, 2018 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	45,040
Receivables, which are included in “Advertising funds restricted assets”	45,863
Deferred franchise fees (c)	103,723

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(a)	Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s statement of operations.


(b)	Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”


(c)	Deferred franchise fees of $10,584 and $93,139 are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees,” respectively.

Deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:



	Six Months Ended
	July 1, 2018
Deferred franchise fees at beginning of period	$	102,492
Revenue recognized during the period	(5,127		)
New deferrals due to cash received and other	6,358
Deferred franchise fees at end of period	$	103,723

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:



Estimate for fiscal year:
2018 (a)	$	4,527
2019	7,423
2020	6,169
2021	5,704
2022	5,506
Thereafter	74,394
	$	103,723

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(a)	Represents franchise fees expected to be recognized for the remainder of the 2018 fiscal year, which includes development-related franchise fees expected to be recognized over a duration of one year or less.