As noted, the Company will adopt this new guidance in fiscal year 2018 using the full retrospective transition method, which will result in restating fiscal years 2016 and 2017 in the year of adoption. Upon adoption, the new guidance for revenue recognition is expected to impact the Company's reported results as follows:



Consolidated Statements of Operations
Fiscal Year 2017
(In thousands, except per share data)
				Adjustments for new revenue recognition guidance
	As reported			Franchise fees		Advertising		Ice cream royalty allocation		Other revenue transactions		Restated

Revenues:
Franchise fees and royalty income	$	592,689		(51,754	)	—		14,271		—		555,206
Advertising fees and related income	—			—		470,984		—		—		470,984
Rental income	104,643			—		—		—		—		104,643
Sales of ice cream and other products	110,659			—		—		(14,271	)	—		96,388
Other revenues	52,510			(5,838	)	—		—		1,658		48,330
Total revenues	860,501			(57,592	)	470,984		—		1,658		1,275,551
Operating costs and expenses:
Occupancy expenses—franchised restaurants	60,301			—		—		—		—		60,301
Cost of ice cream and other products	77,012			—		—		—		—		77,012
Advertising expenses	—			—		476,157		—		—		476,157
General and administrative expenses, net	248,975			—		(5,147	)	—		—		243,828
Depreciation	20,084			—		—		—		—		20,084
Amortization of other intangible assets	21,335			—		—		—		—		21,335
Long-lived asset impairment charges	1,617			—		—		—		—		1,617
Total operating costs and expenses	429,324			—		471,010		—		—		900,334
Net income of equity method investments	15,198			—		—		—		—		15,198
Other operating income, net	627			—		—		—		—		627
Operating income	447,002			(57,592	)	(26	)	—		1,658		391,042
Other income (expense), net:
Interest income	3,313			—		—		—		—		3,313
Interest expense	(104,423		)	—		—		—		—		(104,423	)
Loss on debt extinguishment and refinancing transactions	(6,996		)	—		—		—		—		(6,996	)
Other gains, net	391			—		—		—		—		391
Total other expense, net	(107,715		)	—		—		—		—		(107,715	)
Income before income taxes^(a)	339,287			(57,592	)	(26	)	—		1,658		283,327
Provision (benefit) for income taxes	(11,622		)	18,656		—		—		5,084		12,118
Net income	$	350,909		(76,248	)	(26	)	—		(3,426	)	271,209

Earnings per share—basic	$	3.86										2.99
Earnings per share—diluted	3.80											2.94

(a) Adjustments for "Franchise fees" and "Other revenue transactions" include tax expense of $42.2 million and $4.3 million, respectively, related to the enactment of the Tax Cuts and Jobs Act, consisting of the re-measurement of the related deferred tax balances using the lower enacted corporate tax rate.



Consolidated Statements of Operations
Fiscal Year 2016
(In thousands, except per share data)
				Adjustments for new revenue recognition guidance
	As reported			Franchise fees		Advertising		Ice cream royalty allocation		Other revenue transactions		Restated

Revenues:
Franchise fees and royalty income	$	549,571		(27,490	)	—		14,315		—		536,396
Advertising fees and related income	—			—		453,553		—		—		453,553
Rental income	101,020			—		—		—		—		101,020
Sales of ice cream and other products	114,857			—		—		(14,315	)	—		100,542
Sales at company-operated restaurants	11,975			—		—		—		—		11,975
Other revenues	51,466			(5,072	)	—		—		(1,525	)	44,869
Total revenues	828,889			(32,562	)	453,553		—		(1,525	)	1,248,355
Operating costs and expenses:
Occupancy expenses—franchised restaurants	57,409			—		—		—		—		57,409
Cost of ice cream and other products	77,608			—		—		—		—		77,608
Company-operated restaurant expenses	13,591			—		—		—		—		13,591
Advertising expenses	—			—		458,568		—		—		458,568
General and administrative expenses, net	246,814			—		(4,990	)	—		—		241,824
Depreciation	20,458			—		—		—		—		20,458
Amortization of other intangible assets	22,079			—		—		—		—		22,079
Long-lived asset impairment charges	149			—		—		—		—		149
Total operating costs and expenses	438,108			—		453,578		—		—		891,686
Net income of equity method investments	14,552			—		—		—		—		14,552
Other operating income, net	9,381			—		—		—		—		9,381
Operating income	414,714			(32,562	)	(25	)	—		(1,525	)	380,602
Other income (expense), net:
Interest income	582			—		—		—		—		582
Interest expense	(100,852		)	—		—		—		—		(100,852	)
Other losses, net	(1,195		)	—		—		—		—		(1,195	)
Total other expense, net	(101,465		)	—		—		—		—		(101,465	)
Income before income taxes	313,249			(32,562	)	(25	)	—		(1,525	)	279,137
Provision (benefit) for income taxes	117,673			(13,205	)	—		—		(620	)	103,848
Net income	$	195,576		(19,357	)	(25	)	—		(905	)	175,289

Earnings per share—basic	$	2.14										1.91
Earnings per share—diluted	2.11											1.89



Consolidated Balance Sheets
December 30, 2017
(In thousands)
				Adjustments for new revenue recognition guidance
	As reported			Franchise fees		Advertising		Other revenue transactions		Restated

Assets
Current assets:
Cash and cash equivalents	$	1,018,317		—		—		—		1,018,317
Restricted cash	94,047			—		—		—		94,047
Accounts receivables, net	51,442			—		18,075		—		69,517
Notes and other receivables, net	51,082			—		1,250		—		52,332
Restricted assets of advertising funds	47,373			—		(47,373	)	—		—
Prepaid income taxes	21,879			—		48		—		21,927
Prepaid expenses and other current assets	32,695			—		15,498		—		48,193
Total current assets	1,316,835			—		(12,502	)	—		1,304,333
Property and equipment, net	169,005			—		12,537		—		181,542
Equity method investments	140,615			—		—		—		140,615
Goodwill	888,308			—		—		—		888,308
Other intangibles assets, net	1,357,157			—		—		—		1,357,157
Other assets	65,464			—		14		—		65,478
Total assets	$	3,937,384		—		49		—		3,937,433
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Current portion of long-term debt	$	31,500		—		—		—		31,500
Capital lease obligations	596			—		—		—		596
Accounts payable	16,307			—		37,110		—		53,417
Liabilities of advertising funds	58,014			—		(58,014	)	—		—
Deferred income	39,395			1,502		(550	)	4,529		44,876
Other current liabilities	326,078			—		29,032		—		355,110
Total current liabilities	471,890			1,502		7,578		4,529		485,499
Long-term debt, net	3,035,857			—		—		—		3,035,857
Capital lease obligations	7,180			—		—		—		7,180
Unfavorable operating leases acquired	9,780			—		—		—		9,780
Deferred income	11,158			328,183		(7,518	)	29,635		361,458
Deferred income taxes, net	315,249			(91,488	)	—		(9,416	)	214,345
Other long-term liabilities	77,823			—		30		—		77,853
Total long-term liabilities	3,457,047			236,695		(7,488	)	20,219		3,706,473
Stockholders’ equity (deficit)
Preferred stock	—			—		—		—		—
Common stock	90			—		—		—		90
Additional paid-in-capital	724,114			—		—		—		724,114
Treasury stock, at cost	(1,060		)	—		—		—		(1,060	)
Accumulated deficit	(705,007		)	(238,197	)	(196	)	(24,748	)	(968,148	)
Accumulated other comprehensive loss	(9,690		)	—		155		—		(9,535	)
Stockholders’ equity (deficit)	8,447			(238,197	)	(41	)	(24,748	)	(254,539	)
Total liabilities and stockholders’ equity (deficit)	$	3,937,384		—		49		—		3,937,433



Consolidated Balance Sheets
December 31, 2016
(In thousands)
				Adjustments for new revenue recognition guidance
	As reported			Franchise fees		Advertising		Other revenue transactions		Restated

Assets
Current assets:
Cash and cash equivalents	$	361,425		—		—		—		361,425
Restricted cash	69,746			—		—		—		69,746
Accounts receivables, net	44,512			—		17,741		—		62,253
Notes and other receivables, net	40,672			—		592		—		41,264
Restricted assets of advertising funds	40,338			—		(40,338	)	—		—
Prepaid income taxes	20,926			—		36		—		20,962
Prepaid expenses and other current assets	28,739			—		12,823		—		41,562
Total current assets	606,358			—		(9,146	)	—		597,212
Property and equipment, net	176,662			—		9,153		—		185,815
Equity method investments	114,738			—		—		—		114,738
Goodwill	888,272			—		—		—		888,272
Other intangibles assets, net	1,378,720			—		—		—		1,378,720
Other assets	62,632			—		30		—		62,662
Total assets	$	3,227,382		—		37		—		3,227,419
Liabilities and Stockholders’ Deficit
Current liabilities:
Current portion of long-term debt	$	25,000		—		—		—		25,000
Capital lease obligations	589			—		—		—		589
Accounts payable	12,682			—		34,806		—		47,488
Liabilities of advertising funds	52,271			—		(52,271	)	—		—
Deferred income	35,393			2,699		(591	)	4,812		42,313
Other current liabilities	298,266			—		26,293		—		324,559
Total current liabilities	424,201			2,699		8,237		4,812		439,949
Long-term debt, net	2,401,998			—		—		—		2,401,998
Capital lease obligations	7,550			—		—		—		7,550
Unfavorable operating leases acquired	11,378			—		—		—		11,378
Deferred income	12,154			269,394		(8,186	)	31,010		304,372
Deferred income taxes, net	461,810			(110,144	)	—		(14,500	)	337,166
Other long-term liabilities	71,549			—		45		—		71,594
Total long-term liabilities	2,966,439			159,250		(8,141	)	16,510		3,134,058
Stockholders’ deficit:
Preferred stock	—			—		—		—		—
Common stock	91			—		—		—		91
Additional paid-in-capital	807,492			—		—		—		807,492
Treasury stock, at cost	(1,060		)	—		—		—		(1,060	)
Accumulated deficit	(945,797		)	(161,949	)	(170	)	(21,322	)	(1,129,238	)
Accumulated other comprehensive loss	(23,984		)	—		111		—		(23,873	)
Stockholders’ deficit	(163,258		)	(161,949	)	(59	)	(21,322	)	(346,588	)
Total liabilities and stockholders’ deficit	$	3,227,382		—		37		—		3,227,419



Select Cash Flow Information
(In thousands)

	Fiscal year ended December 30, 2017
	As reported			Adjustments for new revenue recognition guidance^(a)		Restated

Net cash provided by operating activities	$	276,908		6,449		283,357
Net cash used in investing activities	(13,854		)	(6,449	)	(20,303	)
Net cash provided by financing activities	418,641			—		418,641
Increase in cash, cash equivalents, and restricted cash	682,267			—		682,267

	Fiscal year ended December 31, 2016
	As reported			Adjustments for new revenue recognition guidance^(a)		Restated

Net cash provided by operating activities	$	276,827		5,652		282,479
Net cash provided by (used in) investing activities	1,343			(5,652	)	(4,309	)
Net cash used in financing activities	(179,178		)	—		(179,178	)
Increase in cash, cash equivalents, and restricted cash	98,717			—		98,717

(a) Adjustment results from full consolidation of the advertising funds, and reflects the investing activities, consisting solely of additions to property and equipment, of such funds.