The impact of the adoption of ASC 606 on the Company's Consolidated Balance Sheet as of December 31, 2017 was as follows:




	As Previously Reported			Franchise Fees			Specialty Manufacturing			Total Adjustments			As Revised
	(in thousands)
Inventory	$	506,858		$	—		$	(21,126	)	$	(21,126	)	$	485,732
Prepaid and other current assets	42,320			—			24,328			24,328			66,648
Total current assets	739,829			—			3,202			3,202			743,031
Total assets	$	1,516,561		$	—		$	3,202		$	3,202		$	1,519,763

Deferred revenue and other current liabilities	$	108,672		$	5,409		$	—		$	5,409		$	114,081
Total current liabilities	261,690			5,409			—			5,409			267,099
Deferred income taxes	64,121			(8,868		)	807			(8,061		)	56,060
Other long-term liabilities	55,721			29,781			—			29,781			85,502
Total long-term liabilities	1,416,865			20,913			807			21,720			1,438,585
Total liabilities	1,678,555			26,322			807			27,129			1,705,684
Retained earnings	567,741			(26,322		)	2,395			(23,927		)	543,814
Total stockholders' deficit	(161,994		)	(26,322		)	2,395			(23,927		)	(185,921		)
Total liabilities and stockholders' deficit	$	1,516,561		$	—		$	3,202		$	3,202		$	1,519,763

The impact of the adoption of ASC 606 on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 was as follows:



	Three months ended June 30, 2017
	As Previously Reported			Franchise Fees		Specialty Manufacturing		Cooperative Advertising and Other Franchise Support Fees		Total Adjustments		As Revised
	(in thousands, except per share amounts)
Revenue	$	640,994		$	1,353	$	1,542	$	6,349	$	9,244	$	650,238
Cost of sales ⁽¹⁾	428,271			—		1,342		842		2,184		430,455
Gross profit	212,723			1,353		200		5,507		7,060		219,783
SG&A ⁽²⁾	154,033			—		—		5,507		5,507		159,540
Long-lived asset impairments	19,356			—		—		—		—		19,356
Other income, net	(486		)	—		—		—		—		(486		)
Operating income	39,820			1,353		200		—		1,553		41,373
Interest expense, net	16,067			—		—		—		—		16,067
Income before income taxes	23,753			1,353		200		—		1,553		25,306
Income tax expense	8,092			497		73		—		570		8,662
Net income	$	15,661		$	856	$	127	$	—	$	983	$	16,644
Earnings per share:
Basic	$	0.23		$	0.01	$	—	$	—	$	0.01	$	0.24
Diluted	$	0.23		$	0.01	$	—	$	—	$	0.01	$	0.24



	Six months ended June 30, 2017
	As Previously Reported			Franchise Fees		Specialty Manufacturing		Cooperative Advertising and Other Franchise Support Fees		Total Adjustments		As Revised
	(in thousands, except per share amounts)
Revenue	$	1,285,832		$	2,336	$	4,628	$	12,390	$	19,354	$	1,305,186
Cost of sales ⁽¹⁾	860,138			—		3,966		1,437		5,403		865,541
Gross profit	425,694			2,336		662		10,953		13,951		439,645
SG&A ⁽²⁾	314,614			—		—		10,953		10,953		325,567
Long-lived asset impairments	19,356			—		—		—		—		19,356
Other income, net	(1,649		)	30		—		—		30		(1,619		)
Operating income	93,373			2,306		662		—		2,968		96,341
Interest expense, net	31,961			—		—		—		—		31,961
Income before income taxes	61,412			2,306		662		—		2,968		64,380
Income tax expense	21,901			847		244		—		1,091		22,992
Net income	$	39,511		$	1,459	$	418	$	—	$	1,877	$	41,388
Earnings per share:
Basic	$	0.58		$	0.02	$	0.01	$	—	$	0.03	$	0.61
Diluted	$	0.58		$	0.02	$	0.01	$	—	$	0.03	$	0.61

(1) Includes warehousing, distribution and occupancy.

(2) Defined as selling, general and administrative expense.

The impact of adoption of ASC 606 on the Company's reportable segments for the three and six months ended June 30, 2017 was as follows:



	Three months ended June 30, 2017
	As Previously Reported			Franchise Fees		Specialty Manufacturing		Cooperative Advertising and Other Franchise Support Fees		Total Adjustments		As Revised
	(in thousands)
Revenue:
U.S. and Canada	$	520,804		$	661	$	—	$	6,349	$	7,010	$	527,814
International	43,631			182		—		—		182		43,813
Manufacturing / Wholesale:
Intersegment revenues	56,000			—		—		—		—		56,000
Third party	53,945			510		1,542		—		2,052		55,997
Subtotal Manufacturing / Wholesale	109,945			510		1,542		—		2,052		111,997
Total reportable segment revenues	674,380			1,353		1,542		6,349		9,244		683,624
Other	22,614			—		—		—		—		22,614
Elimination of intersegment revenues	(56,000		)	—		—		—		—		(56,000		)
Total revenue	$	640,994		$	1,353	$	1,542	$	6,349	$	9,244	$	650,238
Operating income:
U.S. and Canada	$	51,829		$	661	$	—	$	—	$	661	$	52,490
International	15,605			182		—		—		182		15,787
Manufacturing / Wholesale	17,927			510		200		—		710		18,637
Total reportable segment operating income	85,361			1,353		200		—		1,553		86,914
Corporate costs	(26,207		)	—		—		—		—		(26,207		)
Other	(19,334		)	—		—		—		—		(19,334		)
Unallocated corporate and other	(45,541		)	—		—		—		—		(45,541		)
Total operating income	$	39,820		$	1,353	$	200	$	—	$	1,553	$	41,373



	Six months ended June 30, 2017
	As Previously Reported			Franchise Fees		Specialty Manufacturing		Cooperative Advertising and Other Franchise Support Fees		Total Adjustments		As Revised
	(in thousands)
Revenue:
U.S. and Canada	$	1,050,983		$	1,062	$	—	$	12,390	$	13,452	$	1,064,435
International	83,048			516		—		—		516		83,564
Manufacturing / Wholesale:
Intersegment revenues	117,298			—		—		—		—		117,298
Third party	106,445			758		4,628		—		5,386		111,831
Subtotal Manufacturing / Wholesale	223,743			758		4,628		—		5,386		229,129
Total reportable segment revenues	1,357,774			2,336		4,628		12,390		19,354		1,377,128
Other	45,356			—		—		—		—		45,356
Elimination of intersegment revenues	(117,298		)	—		—		—		—		(117,298		)
Total revenue	$	1,285,832		$	2,336	$	4,628	$	12,390	$	19,354	$	1,305,186
Operating income:
U.S. and Canada	$	101,948		$	1,032	$	—	$	—	$	1,032	$	102,980
International	30,140			516		—		—		516		30,656
Manufacturing / Wholesale	34,484			758		662		—		1,420		35,904
Total reportable segment operating income	166,572			2,306		662		—		2,968		169,540
Corporate costs	(54,281		)	—		—		—		—		(54,281		)
Other	(18,918		)	—		—		—		—		(18,918		)
Unallocated corporate and other	(73,199		)	—		—				—		(73,199		)
Total operating income	$	93,373		$	2,306	$	662	$	—	$	2,968	$	96,341