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Revenue (Tables)
 9 Months Ended
Sep. 26, 2018
Revenues [Abstract]  
Disaggregation of revenue
The following table disaggregates our revenue by sales channels and types of goods or services.

 
Quarter Ended
Three Quarters Ended
 
September 26, 2018
September 27, 2017 (1)
September 26, 2018
September 27, 2017 (1)
 
(Dollars in thousands)
Company restaurant sales
$
103,609

 
$
97,915

 
$
307,543

 
$
290,049

Franchise and license revenue:
 
 
 
 
 
 
 
Royalties
25,518

 
25,174

 
75,875

 
75,056

Advertising revenue
19,546

 
—

 
58,386

 
—

Initial and other fees
1,415

 
507

 
4,642

 
1,579

Occupancy revenue 
7,935

 
8,788

 
24,184

 
26,986

Franchise and license revenue 
54,414

 
34,469

 
163,087

 
103,621

Total operating revenue
$
158,023

 
$
132,384

 
$
470,630

 
$
393,670


(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 September 26, 2018 and for the quarter and three quarters ended September 26, 2018.

 
Quarter ended September 26, 2018
Consolidated Balance Sheet
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Prepaid and other current assets
$
10,495

 
$
509

 
$
11,004

Deferred income taxes
15,595

 
(5,040
)
 
10,555

Other current liabilities
53,911

 
(360
)
 
53,551

Other noncurrent liabilities
43,888

 
(18,618
)
 
25,270

Deficit
(317,917
)
 
14,447

 
(303,470
)

 
Quarter ended September 26, 2018
 
Three quarters ended September 26, 2018
Consolidated Statement of Income
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands, except per share amounts)
Franchise and license revenue
$
54,414

 
$
(20,397
)
 
$
34,017

 
$
163,087

 
$
(61,653
)
 
$
101,434

Costs of franchise and license revenue
28,174

 
(20,007
)
 
8,167

 
85,779

 
(60,306
)
 
25,473

Provision for income taxes
2,810

 
(101
)
 
2,709

 
7,217

 
(348
)
 
6,869

Net income
10,805

 
(289
)
 
10,516

 
32,190

 
(999
)
 
31,191

Basic net income per share
$
0.17

 
$
—

 
$
0.17

 
$
0.50

 
$
(0.01
)
 
$
0.49

Diluted net income per share
$
0.16

 
$
—

 
$
0.16

 
$
0.49

 
$
(0.02
)
 
$
0.47


 
Quarter ended September 26, 2018
 
Three quarters ended September 26, 2018
Consolidated Statement of Comprehensive Income
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Net income
$
10,805

 
$
(289
)
 
$
10,516

 
$
32,190

 
$
(999
)
 
$
31,191

Total comprehensive income
15,363

 
(289
)
 
15,074

 
37,047

 
(999
)
 
36,048


 
Three quarters ended September 26, 2018
Consolidated Statement of Cash Flow
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Net income
$
32,190

 
$
(999
)
 
$
31,191

Deferred income tax expense
5,044

 
(348
)
 
4,696

Changes in assets and liabilities:
 
 
 
 
 
Other current assets
1,292

 
(509
)
 
783

Other accrued liabilities
(7,733
)
 
621

 
(7,112
)
Other noncurrent liabilities
(2,339
)
 
1,235

 
(1,104
)
Net cash flows provided by operating activities
46,259

 
—

 
46,259
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
795

Revenue recognized (1)
(2,628
)
Balance, September 26, 2018
20,786

Less current portion included in other current liabilities
2,168

Deferred franchise revenue included in other noncurrent liabilities
$
18,618


(1) Of this amount $2.6 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 September 26, 2018, the deferred franchise revenue expected to be recognized in the future is as follows:

 
(In thousands)
Remainder of 2018
$
546

2019
2,114

2020
1,967

2021
1,783

2022
1,675

Thereafter
12,701

Deferred franchise revenue
$
20,786