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

12 Months Ended

Dec. 29, 2019

Inventories are valued at the lower of cost (on a

first-in,

first-out

basis) or net realizable value. Inventories at December 29, 2019 and December 30, 2018 are comprised of the following (in thousands):


	2019		2018
Food	$	49,304	$	42,921
Equipment and supplies		3,651		3,054

Inventories	$	52,955	$	45,975

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 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 2019 and 2018 were as follows (in thousands):


	Fiscal Year Ended
	December 29, 2019			December 30, 2018
Deferred franchise fees and deferred development fees at beginning of period	$	19,900		$	19,404
Revenue recognized during the period		(5,695	)		(5,235	)
New deferrals due to cash received and other		6,258			5,731

Deferred franchise fees and deferred development fees at end of period	$	20,463		$	19,900

Cumulative Effects of Changes Made to Consolidated Balance Sheet

The effects of the changes made to the Company’s consolidated balance sheet as of December 31, 2018 for the adoption of ASC 842 were as follows (in thousands):


	Balance at December 30, 2018		Adjustments Due to ASC 842			Balance at December 31, 2018
Assets
Current assets:
Prepaid expenses and other	$	25,710	$	(35	)	$	25,675
Property, plant and equipment:
Construction in progress		31,822		(1,904	)		29,918
Other assets:
Operating lease right-of-use assets		—		218,860			218,860
Liabilities and stockholders’ deficit
Current liabilities:
Operating lease liabilities		—		32,033			32,033
Other accrued liabilities		55,001		(136	)		54,865
Long-term liabilities:
Operating lease liabilities		—		194,736			194,736
Other accrued liabilities		40,807		(9,712	)		31,095