Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Property and Equipment Depreciable Lives

The general ranges of depreciable and amortizable lives are as follows:

Category	Depreciable Life
Buildings and improvements	25 - 40 years
Leaseholds and improvements	Shorter of primary lease term or between three to 40 years
Equipment and fixtures	Three to five years
Internal-use software	Three to 10 years
Properties under capital leases	Primary lease term or remaining primary lease term

Fair Value of Financial Instruments

The fair values of non-current financial instruments, determined based on Level 2 inputs, are shown in the following table:

	December 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Long-term debt, net of debt issuance costs	$	1,299.1	$	1,280.9	$	1,282.8	$	1,265.5

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of ASC 606 impacted our previously reported Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2016, as follows:

	Year ended December 31, 2016, as reported			Adjustments due to ASC 606 adoption			Year ended December 31, 2016, as adjusted
	(In thousands)
Franchise revenues (as shown separately above)	$	484,378		$	153,593		$	637,971
Franchise expenses (as shown separately above)	144,636			148,864			293,500
Income before income tax provision	153,122			4,729			157,851
Income tax provision	(55,130		)	(1,719		)	(56,849		)
Net income	97,992			3,010			101,002
Net income per share:
Basic	$	5.36					$	5.52
Diluted	$	5.33					$	5.49

Adoption of ASC 606 impacted our previously reported Consolidated Balance Sheet as follows:

	Balance at December 31, 2017, as reported			Adjustments/Reclassifications Due to ASC 606 adoption			Balance at December 31, 2017, as adjusted
	(In thousands)
Assets:
Receivables, net	$	150,174		$	(9,986	)	$	140,188
Long-term receivables, net	131,212			(4,642		)	126,570
Liabilities:
Deferred franchise revenue (short-term)	—			11,001			11,001
Other accrued expenses	17,780			(1,779		)	16,001
Deferred franchise revenue (long-term)	—			70,432			70,432
Other non-current liabilities	23,003			(4,932		)	18,071
Deferred income taxes, net	138,177			(20,508		)	117,669
Equity:
Accumulated deficit	$	(1,098	)	$	(68,842	)	$	(69,940	)

In conjunction with its adoption of ASC 606, the Company has separated “franchise and restaurant revenues” and “franchise and restaurant expenses,” previously combined when reported in the Statement of Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016, into separate line items for franchise revenues/expense and company restaurant sales/expense as follows:

	Year ended December 31,
	2017		2016
	(in thousands)
Franchise and restaurant revenues, as combined	$	475,030	$	501,745
Franchise revenues	$	467,512	$	484,378
Company restaurant sales	7,518		17,367
	$	475,030	$	501,745
Franchise and restaurant expenses, as combined	$	171,983	$	162,860
Franchise expenses	164,145		144,636
Company restaurant expenses	7,838		$	18,224
	$	171,983	$	162,860

Adoption of ASC 606 impacted our previously reported Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2017, as follows:

	Year ended December 31, 2017, as reported			Adjustments due to ASC 606 adoption			Year ended December 31, 2017, as adjusted
	(In thousands)
Franchise revenues (as shown separately above)	$	467,512		$	126,906		$	594,418
Franchise expenses (as shown separately above)	164,145			129,841			293,986
Loss before income tax benefit	(425,374		)	(2,935		)	(428,309		)
Income tax benefit	94,835			(9,276		)	85,559
Net loss	(330,539		)	(12,211		)	(342,750		)
Net loss per share:
Basic	$	(18.28	)				$	(18.96	)
Diluted	$	(18.28	)				$	(18.96	)