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Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 30, 2018

Inventories are valued at the lower of cost (on a

first-in,

first-out

basis) or net realizable value. Inventories at December 30, 2018 and December 31, 2017 are comprised of the following (in thousands):

	2018		2017
Food	$	42,921	$	36,645
Equipment and supplies		3,054		3,316
Inventories	$	45,975	$	39,961

Estimated Useful Lives of Property, Plant And Equipment Excluding Capital Lease Asset

Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives, other than the estimated useful life of the capital lease assets as described below, are generally as follows (in years):


Buildings			20
Leasehold and other improvements			7 –15
Equipment			3 –15

Schedule of Contract Liabilities Consist Of Deferred Franchise Fees and Deferred Development Fees

Changes in deferred franchise fees and deferred development fees in 2018 were as follows:

	Fiscal Year Ended
(In thousands)	December 30, 2018
Deferred franchise fees and deferred development fees at beginning of period	$	19,404
Revenue recognized during the period		(5,235	)
New deferrals due to cash received and other		5,731
Deferred franchise fees and deferred development fees at end of period	$	19,900

Schedule Of Cumulative Effects Of Changes Made To Consolidated Balance Sheet

The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands):

	Balance at December 31, 2017			Adjustments Due to ASC 606			Balance at January 1, 2018
Assets
Other assets:
Deferred income taxes	$	2,750		$	1,878		$	4,628
Liabilities and stockholders’ deficit
Current liabilities:
Advertising fund liabilities		120,223			(6,425	)		113,798
Other accrued liabilities		58,578			2,365			60,943
Long-term liabilities:
Other accrued liabilities		21,751			12,639			34,390
Stockholders’ deficit:
Retained deficit		(2,739,437	)		(6,701	)		(2,746,138	)

Impact of Adoption on Company's Consolidated Statement of Income and Consolidated Balance Sheet

In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of income for 2018 and consolidated balance sheet as of December 30, 2018 was as follows (in thousands):

	Fiscal Year Ended December 30, 2018
	As Reported		Balances without the Adoption of ASC 606		Effect of Change Higher/ (Lower)
Revenues:
U.S. franchise royalties and fees	$	391,493	$	409,379	$	(17,886	)
International franchise royalties and fees		224,747		225,708		(961	)
U.S. franchise advertising		358,526		—		358,526
General and administrative		372,464		389,520		(17,056	)
U.S. franchise advertising		358,526		—		358,526
Income from operations		571,689		573,481		(1,792	)
Income before provision for income taxes		428,678		430,470		(1,792	)
Provision for income taxes		66,706		67,111		(405	)
Net income		361,972		363,359		(1,387	)

	As of December 30, 2018
	As Reported			Balances without the Adoption of ASC 606			Effect of Change Higher/ (Lower)
Assets
Other assets:
Deferred income taxes	$	5,526		$	3,243		$	2,283
Liabilities and stockholders’ deficit
Current liabilities:
Advertising fund liabilities		107,150			112,744			(5,594	)
Other accrued liabilities		55,001			52,396			2,605
Long-term liabilities:
Other accrued liabilities		40,807			27,447			13,360
Stockholders’ deficit:
Retained deficit		(3,036,471	)		(3,028,383	)		(8,088	)