Revenue Recognition (Tables)

12 Months Ended

Dec. 27, 2018

The disaggregation of revenues by business segment for fiscal 2018 is as follows (in thousands):

	Reportable Segment
	Theatres		Hotels/ Resorts		Corporate		Total
Theatre admissions	$	246,385	$	–	$	–	$	246,385
Rooms		–		108,786		–		108,786
Theatre concessions		166,564		–		–		166,564
Food and beverage		–		72,771		–		72,771
Other revenues (1)		32,563		45,342		424		78,329
Cost reimbursements		1,292		32,993		–		34,285
Total revenues	$	446,804	$	259,892	$	424	$	707,120

(1)

Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014-09.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Due to adoption of ASU No. 2014-09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows:

	Balance at December 28, 2017		Cumulative Adjustment			Balance at December 29, 2017
	(in thousands)
Refundable income taxes	$	15,335	$	945		$	16,280
Other accrued liabilities		53,291		3,296			56,587
Deferred compensation and other		56,662		217			56,879
Retained earnings		403,206		(2,568	)		400,638

The adoption of ASU No. 2014-09 had the following effect on our fiscal 2018 consolidated statement of earnings (in thousands):

	As Reported		ASU No. 2014-09 Impact			Adjusted (1)
Revenues:
Theatre admissions	$	246,385	$	(1,805	)	$	248,190
Theatre concessions		166,564		2,526			164,038
Food and beverage		72,771		19			72,752
Other revenues		78,329		4,997			73,332
Total revenues		707,120		5,737			701,383

Costs and expenses:
Theatre operations		217,851		669			217,182
Theatre concessions		47,522		634			46,888
Advertising and marketing		23,775		(1,076	)		24,851
Other operating expenses		36,534		4,878			31,656
Total costs and expenses		623,931		5,105			618,826

Operating income		83,189		632			82,557
Income taxes		13,127		125			13,002
Net earnings attributable to The Marcus Corporation		53,391		507			52,884

(1)

The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09.

The adoption of ASU No. 2014-09 had the following effect on our consolidated balance sheet as of December 27, 2018 (in thousands):

	As Reported		ASU No. 2014-09 Impact			Adjusted (1)
Refundable income taxes	$	5,983	$	820		$	5,163
Total current assets		68,949		820			68,129
Total assets		989,331		820			988,511
Other accrued liabilities		59,645		2,782			56,863
Total current liabilities		149,256		2,782			146,474
Deferred compensation and other		56,908		99			56,809
Retained Earnings		439,178		(2,061	)		441,239
Shareholders’ equity attributable to The Marcus Corporation		490,009		(2,061	)		492,070
Total equity		490,119		(2,061	)		492,180
Total liabilities and shareholders’ equity		989,331		820			988,511

(1)

The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09.