4. Revenue Recognition

Disaggregation of Revenue

In the following table (in thousands), revenue is disaggregated by major product line. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.


		Reportable Segments
		Three Months Ended September 30, 2018
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	158,285	$	-	$	-	$	-	$	-	$	158,285
Commissary sales		-		192,263		-		16,512		-		208,775
Franchise royalties and fees		-		-		13,270		9,140		-		22,410
Other revenues		-		-		-		5,211		22,832		28,043
Eliminations		-		(46,023)		(464)		(70)		(6,949)		(53,506)
Total	$	158,285	$	146,240	$	12,806	$	30,793	$	15,883	$	364,007

		Reportable Segments
		Nine Months Ended September 30, 2018
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	529,906	$	-	$	-	$	6,237	$	-	$	536,143
Commissary sales		-		614,797		-		51,490		-		666,287
Franchise royalties and fees		-		-		64,023		27,110		-		91,133
Other revenues		-		-		-		16,353		68,121		84,474
Eliminations		-		(153,389)		(2,499)		(213)		(22,601)		(178,702)
Total	$	529,906	$	461,408	$	61,524	$	100,977	$	45,520	$	1,199,335

The revenue summarized above is described in Note 2 under the heading “Significant Accounting Policies – Revenue Recognition.”

Contract Balances

The contract liabilities primarily relate to franchise fees which we classify as “Deferred revenue” and customer loyalty program obligations which are classified with “Accrued expenses and other current liabilities.” During the three and nine months ended September 30, 2018, the Company recognized $3.5 million and $10.5 million in revenue, respectively, related to deferred revenue and customer loyalty program.

The contract liability balances are included in the following (in thousands):


		September 30, 2018		January 1, 2018		Change
Deferred revenue	$	17,335	$	15,850	$	1,485
Customer loyalty program		16,985		14,724		2,261
Total contract liabilities	$	34,320	$	30,574	$	3,746

The contract assets consist primarily of assets related to the future value of the royalties we will receive over the next ten years from the purchaser/franchisee of the stores located in China and Minnesota that the Company divested in 2018. See Note 7 for additional information. As of September 30, 2018 and December 31, 2017, contract assets were $1.8 million and $400,000, respectively.