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New Accounting Standards Revenue Recognition (Tables)
 9 Months Ended
Sep. 30, 2018
Adoption for Topic 606 Revenue Recognition [Abstract]  
Schedule of New Accounting Pronouncements
The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s condensed consolidated financial statements:
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Condensed Consolidated Balance Sheet
 
 
 
 
 
 
 
September 30, 2018
 
 
 
 
 
 
 
Accrued expenses and other current liabilities
$
120,203

 
$
(1,664
)
 
$
—

 
$
118,539

Advertising funds restricted liabilities
78,925

 
—

 
(6,645
)
 
72,280

Total current liabilities
339,103

 
(1,664
)
 
(6,645
)
 
330,794

Deferred income taxes
275,312

 
21,463

 
—

 
296,775

Deferred franchise fees
92,522

 
(81,686
)
 
—

 
10,836

Total liabilities
3,724,114

 
(61,887
)
 
(6,645
)
 
3,655,582

Retained earnings
146,983

 
62,011

 
6,645

 
215,639

Accumulated other comprehensive loss
(51,135
)
 
(124
)
 
—

 
(51,259
)
Total stockholders’ equity
783,318

 
61,887

 
6,645

 
851,850

 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
Franchise royalty revenue and fees (a)
$
103,212

 
$
(497
)
 
$
—

 
$
102,715

Advertising funds revenue
81,541

 
—

 
(81,541
)
 
—

Total revenues
400,550

 
(497
)
 
(81,541
)
 
318,512

Advertising funds expense
81,541

 
—

 
(81,541
)
 
—

Total costs and expenses
323,202

 
—

 
(81,541
)
 
241,661

Operating profit
77,348

 
(497
)
 
—

 
76,851

Income before income taxes
498,917

 
(497
)
 
—

 
498,420

Provision for income taxes
(107,668
)
 
124

 
—

 
(107,544
)
Net income
391,249

 
(373
)
 
—

 
390,876

 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
Franchise royalty revenue and fees (a)
$
308,679

 
$
(2,087
)
 
$
—

 
$
306,592

Advertising funds revenue
245,011

 
—

 
(245,011
)
 
—

Total revenues
1,192,116

 
(2,087
)
 
(245,011
)
 
945,018

Advertising funds expense
245,011

 
—

 
(245,011
)
 
—

Total costs and expenses
988,023

 
—

 
(245,011
)
 
743,012

Operating profit
204,093

 
(2,087
)
 
—

 
202,006

Income before income taxes
555,534

 
(2,087
)
 
—

 
553,447

Provision for income taxes
(114,250
)
 
533

 
—

 
(113,717
)
Net income
441,284

 
(1,554
)
 
—

 
439,730

_______________

(a)
The adjustments for the three and nine months ended September 30, 2018 include the reversal of franchise fees recognized over time under the new revenue recognition guidance of $2,266 and $7,393, respectively, as well as franchisee fees that would have been recognized under the previous revenue recognition guidance when the license agreements were signed and the restaurant opened of $1,769 and $5,306, respectively. See Note 3 for further information.
 
 
 
Adjustments
 
 
 
As Reported
 
Franchise Fees
 
Advertising Funds
 
Balances Without Adoption
Condensed Consolidated Statement of Cash Flows
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
441,284

 
$
(1,554
)
 
$
—

 
$
439,730

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Deferred income tax
(1,527
)
 
(533
)
 
—

 
(2,060
)
Other, net
4,596

 
(219
)
 
—

 
4,377

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Accrued expenses and other current liabilities
89,806

 
2,306

 
—

 
92,112