Basis of Presentation Disclosure - New Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2018

Jul. 01, 2017

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheets as of December 30, 2017 (in thousands):



	As reported			Adjustments for adoption of ASU 2014-09			As Adjusted
Assets
Current assets
Cash and cash equivalents	$	4,063		$	—		$	4,063
Accounts receivable, net	4,567			—			4,567
Prepaid expenses and other current assets	4,334			—			4,334
Advertising fund assets, restricted	2,944			—			2,944
Total current assets	15,908			—			15,908
Property and equipment, net	5,826			—			5,826
Goodwill	46,557			—			46,557
Trademarks	32,700			—			32,700
Customer relationships, net	15,567			—			15,567
Other non-current assets	3,278			—			3,278
Total assets	$	119,836		$	—		$	119,836
Liabilities and stockholders' deficit
Current liabilities
Accounts payable	$	1,752		$	—		$	1,752
Other current liabilities	10,683			246			10,929
Current portion of debt	3,500			—			3,500
Advertising fund liabilities	2,944			—			2,944
Total current liabilities	18,879			246			19,125
Long-term debt, net	129,841			—			129,841
Deferred revenues, net of current	8,427			12,799			21,226
Deferred income tax liabilities, net	8,799			(2,879		)	5,920
Other non-current liabilities	2,142			—			2,142
Total liabilities	168,088			10,166			178,254
Stockholders' deficit
Common stock	291			—			291
Additional paid-in-capital	262			—			262
Accumulated deficit	(48,805		)	(10,166		)	(58,971		)
Total stockholders' deficit	(48,252		)	(10,166		)	(58,418		)
Total liabilities and stockholders' deficit	$	119,836		$	—		$	119,836

The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the thirteen weeks ended July 1, 2017 (in thousands, except per share amounts):



			Adjustments for adoption of ASU 2014-09
	As reported		Franchise Fees			Advertising			As Adjusted
Revenue:
Royalty revenue, franchise fees and other	$	15,827	$	(560	)	$	—		$	15,267
Advertising fees and related income	—		—			7,466			7,466
Company-owned restaurant sales	8,845		—			—			8,845
Total revenue	24,672		(560		)	7,466			31,578
Costs and expenses:
Cost of sales ⁽¹⁾	6,867		—			—			6,867
Advertising expenses	—		—			7,574			7,574
Selling, general and administrative	8,288		—			(108		)	8,180
Depreciation and amortization	771		—			—			771
Total costs and expenses	15,926		—			7,466			23,392
Operating income	8,746		(560		)	—			8,186
Interest expense, net	1,307		—			—			1,307
Income before income tax expense	7,439		(560		)	—			6,879
Income tax expense	2,174		(202		)	—			1,972
Net income	$	5,265	$	(358	)	$	—		$	4,907

Earnings per share
Basic	$	0.18	$	(0.01	)	$	—		$	0.17
Diluted	$	0.18	$	(0.01	)	$	—		$	0.17

⁽¹⁾ Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants.

The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the twenty-six weeks ended July 1, 2017 (in thousands, except per share amounts):



			Adjustments for adoption of ASU 2014-09
	As reported		Franchise Fees			Advertising			As Adjusted
Revenue:
Royalty revenue, franchise fees and other	$	33,850	$	(987	)	$	—		$	32,863
Advertising fees and related income	—		—			14,734			14,734
Company-owned restaurant sales	17,391		—			—			17,391
Total revenue	51,241		(987		)	14,734			64,988
Costs and expenses:
Cost of sales ⁽¹⁾	13,467		—			—			13,467
Advertising expenses	—		—			16,857			16,857
Selling, general and administrative	18,550		—			(2,123		)	16,427
Depreciation and amortization	1,526		—			—			1,526
Total costs and expenses	33,543		—			14,734			48,277
Operating income	17,698		(987		)	—			16,711
Interest expense, net	2,606		—			—			2,606
Income before income tax expense	15,092		(987		)	—			14,105
Income tax expense	3,297		(356		)	—			2,941
Net income	$	11,795	$	(631	)	$	—		$	11,164

Earnings per share
Basic	$	0.41	$	(0.02	)	$	—		$	0.39
Diluted	$	0.40	$	(0.02	)	$	—		$	0.38

⁽¹⁾ Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants.

The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the twenty-six weeks ended July 1, 2017 (in thousands):



	As reported			Adjustments for adoption of ASU 2014-09			Adjustments for adoption of ASU 2016-18			As adjusted
Operating activities
Net income	$	11,795		$	(631	)	$	—		$	11,164
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,526			—			—			1,526
Deferred income taxes	(149		)	(357		)	—			(506		)
Stock-based compensation expense	541			—			—			541
Amortization of debt issuance costs	146			—			—			146
Changes in operating assets and liabilities:
Accounts receivable	(619		)	—			—			(619		)
Prepaid expenses and other assets	(568		)	—			—			(568		)
Advertising fund assets and liabilities, net	—			—			(121		)	(121		)
Accounts payable and other current liabilities	(2,281		)	—			—			(2,281		)
Deferred revenue	378			988			—			1,366
Other non-current liabilities	(83		)	—			—			(83		)
Cash provided by operating activities	10,686			—			(121		)	10,565

Investing activities
Purchases of property and equipment	(1,301		)	—			—			(1,301		)
Cash used in investing activities	(1,301		)	—			—			(1,301		)

Financing activities
Proceeds from exercise of stock options	1,062			—			—			1,062
Repayments of long-term debt	(9,750		)	—			—			(9,750		)
Cash used in financing activities	(8,688		)	—			—			(8,688		)

Net change in cash, cash equivalents, and restricted cash	697			—			(121		)	576
Cash, cash equivalents, and restricted cash at beginning of period	3,750						1,943			5,693
Cash, cash equivalents, and restricted cash at end of period	$	4,447					$	1,822		$	6,269