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Revenues Revenue (Tables)
 3 Months Ended
Mar. 28, 2018
Revenues [Abstract]  
Disaggregation of revenue
The following table disaggregates our revenue by sales channels and types of goods or services.

 
Quarter Ended
 
March 28, 2018
March 29, 2017 (1)
 
(Dollars in thousands)
Company restaurant sales
$
101,193

 
$
93,779

Franchise and license revenue:
 
 
 
Royalties
25,165

 
24,544

Advertising revenue
19,310

 
—

Initial and other fees
1,417

 
484

Occupancy revenue 
8,188

 
9,103

Franchise and license revenue 
54,080

 
34,131

Total operating revenue
$
155,273

 
$
127,910


(1)
As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.
Financial statement impact of adoption
The following tables summarize the impact of adopting Topic 606 on our financial statement line items as of March 28, 2018 and for the quarter ended March 28, 2018.

 
March 28, 2018
Consolidated Balance Sheet
As Reported
 
Adjustments
 
Balances without adoption of Topic 606
 
(In thousands)
Prepaid and other current assets
$
9,048

 
$
509

 
$
9,557

Deferred income taxes
22,294

 
(5,282
)
 
17,012

Other current liabilities
51,707

 
(1,158
)
 
50,549

Other noncurrent liabilities
51,561

 
(18,624
)
 
32,937

Deficit
(340,348
)
 
15,009

 
(325,339
)

 
Quarter ended March 28, 2018
Consolidated Statement of Income
As Reported
 
Adjustments
 
Balances without adoption of Topic 606
 
(In thousands, except per share amounts)
Franchise and license revenue
$
54,080

 
$
(20,307
)
 
$
33,773

Costs of franchise and license revenue
28,556

 
(19,764
)
 
8,792

Provision for income taxes
1,829

 
(140
)
 
1,689

Net income
9,759

 
(403
)
 
9,356

Basic net income per share
$
0.15

 
$
(0.01
)
 
$
0.14

Diluted net income per share
$
0.15

 
$
(0.01
)
 
$
0.14


 
Quarter ended March 28, 2018
Consolidated Statement of Comprehensive Income
As Reported
 
Adjustments
 
Balances without adoption of Topic 606
 
(In thousands)
Net income
$
9,759

 
$
(403
)
 
$
9,356

Total comprehensive income
6,668

 
(403
)
 
6,265


 
Quarter ended March 28, 2018
Consolidated Statement of Cash Flow
As Reported
 
Adjustments
 
Balances without adoption of Topic 606
 
(In thousands)
Net income
$
9,759

 
$
(403
)
 
$
9,356

Deferred income tax expense
1,118

 
(140
)
 
978

Changes in assets and liabilities:
 
 
 
 
 
Other current assets
2,739

 
(509
)
 
2,230

Other accrued liabilities
(5,948
)
 
923

 
(5,025
)
Other noncurrent liabilities
(413
)
 
129

 
(284
)
Net cash flows provided by operating activities
3,450

 
—

 
3,450
Components of the change in deferred franchise revenue
The components of the change in deferred franchise revenue are as follows:

 
(In thousands)
Balance, December 27, 2017
$
1,643

Cumulative effect adjustment recognized upon adoption of Topic 606
20,976

Fees received from franchisees
239

Revenue recognized (1)
(930
)
Balance, March 28, 2018
21,928

Less current portion included in other current liabilities
3,303

Deferred franchise revenue included in other noncurrent liabilities
$
18,625


(1) Of this amount $0.9 million was included in either the deferred franchise revenue balance as of December 27, 2017 or the cumulative effect adjustment.
Schedule of deferred franchise revenue recognition
As of March 28, 2018, the deferred franchise revenue expected to be recognized for each of the next five years and in the aggregate is as follows:

 
(In thousands)
Remainder of 2018
$
1,646

2019
2,105

2020
1,981

2021
1,769

2022
1,661

Thereafter
11,270

Development agreements and unopened restaurants
1,496

Deferred franchise revenue
$
21,928