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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 29, 2019
Accounting Standards Update 2016-02  
New Accounting Pronouncements or Change in Accounting Principle  
Schedule of Prior Period Adjustments
The following table illustrates the reclassifications made to the consolidated balance sheet as of December 30, 2018:
 
As Previously Reported
 
Reclassifications
 
As Currently Reported
Properties
$
1,213,236

 
$
(189,969
)
 
$
1,023,267

Finance lease assets
—

 
189,969

 
189,969

Current portion of long-term debt
31,655

 
(8,405
)
 
23,250

Current portion of finance lease liabilities
—

 
8,405

 
8,405

Long-term debt
2,752,783

 
(447,231
)
 
2,305,552

Long-term finance lease liabilities
—

 
447,231

 
447,231



In addition, the Company reclassified repayments of finance lease liabilities to “Repayments of finance lease liabilities,” which were previously recorded to “Repayments of long-term debt.” The prior period amounts in the consolidated statements of cash flows reflect the reclassifications of these cash flows to conform to the current year presentation.

The following tables illustrate the reclassifications made to the consolidated statements of cash flows for 2018 and 2017:
 
2018
 
As Previously Reported
 
Reclassifications
 
As Currently Reported
Repayments of long-term debt
$
(900,072
)
 
$
5,571

 
$
(894,501
)
Repayments of finance lease liabilities
—

 
(5,571
)
 
(5,571
)

 
2017
 
As Previously Reported
 
Reclassifications
 
As Currently Reported
Repayments of long-term debt
$
(58,113
)
 
$
5,520

 
$
(52,593
)
Repayments of finance lease liabilities
—

 
(5,520
)
 
(5,520
)
Accounting Standards Update 2014-09  
New Accounting Pronouncements or Change in Accounting Principle  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s consolidated financial statements:
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Consolidated Balance Sheet
 
 
 
 
 
 
 
December 30, 2018
 
 
 
 
 
 
 
Accrued expenses and other current liabilities
$
150,636

 
$
(3,079
)
 
$
—

 
$
147,557

Advertising funds restricted liabilities
80,153

 
—

 
(2,492
)
 
77,661

Total current liabilities
284,185

 
(3,079
)
 
(2,492
)
 
278,614

Deferred income taxes
269,160

 
21,861

 
—

 
291,021

Deferred franchise fees
92,232

 
(81,551
)
 
—

 
10,681

Total liabilities
3,643,586

 
(62,769
)
 
(2,492
)
 
3,578,325

Retained earnings
146,277

 
63,174

 
2,492

 
211,943

Accumulated other comprehensive loss
(61,673
)
 
(405
)
 
—

 
(62,078
)
Total stockholders’ equity
648,449

 
62,769

 
2,492

 
713,710

 
 
 
 
 
 
 
 
Consolidated Statement of Operations
 
 
 
 
 
 
Year Ended December 30, 2018
 
 
 
 
 
 
 
Franchise royalty revenue and fees (a)
$
409,043

 
$
(525
)
 
$
—

 
$
408,518

Advertising funds revenue
326,019

 
—

 
(326,019
)
 
—

Total revenues
1,589,936

 
(525
)
 
(326,019
)
 
1,263,392

Advertising funds expense
321,866

 
—

 
(321,866
)
 
—

Total costs and expenses
1,340,044

 
—

 
(321,866
)
 
1,018,178

Operating profit
249,892

 
(525
)
 
(4,153
)
 
245,214

Income before income taxes
574,916

 
(525
)
 
(4,153
)
 
570,238

Provision for income taxes
(114,801
)
 
134

 
—

 
(114,667
)
Net income
460,115

 
(391
)
 
(4,153
)
 
455,571

_______________

(a)
The adjustments for 2018 include the reversal of franchise fees recognized over time under the new revenue recognition guidance of $9,641, as well as franchisee fees that would have been recognized under the previous revenue recognition guidance when the franchise agreements were signed and the restaurants opened of $9,116. See Note 2 for further information.
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Consolidated Statement of Cash Flows
 
 
 
 
 
 
 
Year Ended December 30, 2018
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
460,115

 
$
(391
)
 
$
(4,153
)
 
$
455,571

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Deferred income tax
(6,568
)
 
(134
)
 
—

 
(6,702
)
Other, net
5,178

 
(502
)
 
—

 
4,676

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Advertising funds restricted assets and liabilities
13,955

 
—

 
4,153

 
18,108

Accrued expenses and other current liabilities
23,963

 
1,027

 
—

 
24,990