Revenue Recognition (Tables)

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

	Three months ended June 30, 2018
	Dunkin' U.S.		Baskin-Robbins U.S.	Dunkin' International		Baskin-Robbins International	U.S. Advertising Funds	Total reportable segment revenues	Other(a)		Total revenues
Revenues recognized under ASC 606
Revenues recognized over time:
Royalty income	$	125,221	9,005	4,732		2,154	—	141,112	4,276		145,388
Franchise fees	4,765		303	535		251	—	5,854	—		5,854
Advertising fees and related income	—		—	—		—	119,174	119,174	8,491		127,665
Other revenues	588		3,129	—		1	—	3,718	7,969		11,687
Total revenues recognized over time	130,574		12,437	5,267		2,406	119,174	269,858	20,736		290,594
Revenues recognized at a point in time:
Sales of ice cream and other products	—		842	—		31,409	—	32,251	(4,111	)	28,140
Other revenues	310		57	(9	)	72	—	430	202		632
Total revenues recognized at a point in time	310		899	(9	)	31,481	—	32,681	(3,909	)	28,772
Total revenues recognized under ASC 606	130,884		13,336	5,258		33,887	119,174	302,539	16,827		319,366
Revenues not subject to ASC 606
Advertising fees and related income	—		—	—		—	—	—	3,874		3,874
Rental income	26,506		763	—		131	—	27,400	—		27,400
Total revenues not subject to ASC 606	26,506		763	—		131	—	27,400	3,874		31,274
Total revenues	$	157,390	14,099	5,258		34,018	119,174	329,939	20,701		350,640

(a)

Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.”

Revenues are disaggregated by timing of revenue recognition related to contracts with customers (“ASC 606”) and reconciled to reportable segment revenues as follows (in thousands):

	Three months ended June 29, 2019
	Dunkin' U.S.		Baskin-Robbins U.S.	Dunkin' International	Baskin-Robbins International		U.S. Advertising Funds	Total reportable segment revenues	Other(a)		Total revenues
Revenues recognized under ASC 606
Revenues recognized over time:
Royalty income	$	131,682	8,828	5,396	1,953		—	147,859	4,087		151,946
Franchise fees	3,418		344	2,030	520		—	6,312	—		6,312
Advertising fees and related income	—		—	—	—		123,588	123,588	1,396		124,984
Other revenues	584		3,000	—	—		—	3,584	8,559		12,143
Total revenues recognized over time	135,684		12,172	7,426	2,473		123,588	281,343	14,042		295,385
Revenues recognized at a point in time:
Sales of ice cream and other products	—		1,080	—	29,997		—	31,077	(3,819	)	27,258
Other revenues	402		63	44	(8	)	—	501	239		740
Total revenues recognized at a point in time	402		1,143	44	29,989		—	31,578	(3,580	)	27,998
Total revenues recognized under ASC 606	136,086		13,315	7,470	32,462		123,588	312,921	10,462		323,383
Revenues not subject to ASC 606
Advertising fees and related income	—		—	—	—		—	—	4,275		4,275
Rental income	30,491		973	—	215		—	31,679	—		31,679
Total revenues not subject to ASC 606	30,491		973	—	215		—	31,679	4,275		35,954
Total revenues	$	166,577	14,288	7,470	32,677		123,588	344,600	14,737		359,337

(a)

Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.”

	Six months ended June 29, 2019
	Dunkin' U.S.		Baskin-Robbins U.S.	Dunkin' International	Baskin-Robbins International	U.S. Advertising Funds	Total reportable segment revenues	Other(a)		Total revenues
Revenues recognized under ASC 606
Revenues recognized over time:
Royalty income	$	248,779	14,931	11,309	3,858	—	278,877	7,236		286,113
Franchise fees	7,044		656	2,895	878	—	11,473	—		11,473
Advertising fees and related income	—		—	—	—	232,230	232,230	2,572		234,802
Other revenues	1,294		5,163	4	—	—	6,461	17,617		24,078
Total revenues recognized over time	257,117		20,750	14,208	4,736	232,230	529,041	27,425		556,466
Revenues recognized at a point in time:
Sales of ice cream and other products	—		1,751	—	53,072	—	54,823	(6,832	)	47,991
Other revenues	866		131	113	13	—	1,123	486		1,609
Total revenues recognized at a point in time	866		1,882	113	53,085	—	55,946	(6,346	)	49,600
Total revenues recognized under ASC 606	257,983		22,632	14,321	57,821	232,230	584,987	21,079		606,066
Revenues not subject to ASC 606
Advertising fees and related income	—		—	—	—	—	—	11,655		11,655
Rental income	58,339		1,933	—	435	—	60,707	—		60,707
Total revenues not subject to ASC 606	58,339		1,933	—	435	—	60,707	11,655		72,362
Total revenues	$	316,322	24,565	14,321	58,256	232,230	645,694	32,734		678,428

(a)

Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.”

	Six months ended June 30, 2018
	Dunkin' U.S.		Baskin-Robbins U.S.	Dunkin' International		Baskin-Robbins International	U.S. Advertising Funds	Total reportable segment revenues	Other(a)		Total revenues
Revenues recognized under ASC 606
Revenues recognized over time:
Royalty income	$	236,054	15,414	9,670		3,697	—	264,835	7,410		272,245
Franchise fees	9,472		592	983		457	—	11,504	—		11,504
Advertising fees and related income	—		—	—		—	223,341	223,341	8,750		232,091
Other revenues	1,123		5,406	2		1	—	6,532	16,123		22,655
Total revenues recognized over time	246,649		21,412	10,655		4,155	223,341	506,212	32,283		538,495
Revenues recognized at a point in time:
Sales of ice cream and other products	—		1,520	—		55,381	—	56,901	(6,984	)	49,917
Other revenues	555		150	(32	)	119	—	792	445		1,237
Total revenues recognized at a point in time	555		1,670	(32	)	55,500	—	57,693	(6,539	)	51,154
Total revenues recognized under ASC 606	247,204		23,082	10,623		59,655	223,341	563,905	25,744		589,649
Revenues not subject to ASC 606
Advertising fees and related income	—		—	—		—	—	—	10,455		10,455
Rental income	50,097		1,530	—		251	—	51,878	—		51,878
Total revenues not subject to ASC 606	50,097		1,530	—		251	—	51,878	10,455		62,333
Total revenues	$	297,301	24,612	10,623		59,906	223,341	615,783	36,199		651,982

(a)

Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.”

Contract balances

Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands):

	June 29, 2019		December 29, 2018	Balance Sheet Classification
Receivables	$	101,074	81,609	Accounts receivable, net and Notes and other receivables, net
Deferred revenue:
Current	$	25,956	24,002	Deferred revenue—current
Long-term	317,351		327,333	Deferred revenue—long term
Total	$	343,307	351,335

Estimated revenue expected to be recognized in the future related to performance obligations

Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at June 29, 2019 is as follows (in thousands):

Fiscal year:
2019(a)	$	13,396
2020	19,804
2021	18,844
2022	18,810
2023	18,774
Thereafter	218,856
Total	$	308,484
(a) Represents the estimate for remainder of fiscal year 2019 which excludes the six months ended June 29, 2019.

Impacts to prior period information, revenue recognition

The effects of the changes made to the Company's condensed consolidated balance sheet as of December 30, 2018 for the adoption of the new lease guidance were as follows (in thousands):

	Balance at December 29, 2018		Adjustments due to adoption of the new lease guidance		Balance at December 30, 2018
Assets
Current assets:
Prepaid expenses and other current assets	$	49,491	(4,720	)	44,771
Operating lease assets	—		388,811		388,811
Other intangible assets, net	1,334,767		(13,598	)	1,321,169
Other assets	64,479		(961	)	63,518
Liabilities and Stockholders' Deficit
Current liabilities:
Operating lease liabilities	—		33,822		33,822
Operating lease liabilities	—		401,249		401,249
Other long-term liabilities(a)	83,164		(65,539	)	17,625