Revenue Recognition (Tables)

6 Months Ended

Jun. 28, 2018

The disaggregation of revenues by business segment for the 13 and 26 weeks ended June 28, 2018 is as follows (in thousands):

	13 Weeks Ended June 28, 2018
	Reportable Segment
	Theatres		Hotels/ Resorts		Corporate		Total
Theatre admissions	$	69,607	$	–	$	–	$	69,607
Rooms		–		29,118		–		29,118
Theatre concessions		46,798		–		–		46,798
Food and beverage		–		18,836		–		18,836
Other revenues⁽¹⁾		8,661		11,230		132		20,023
Cost reimbursements		387		8,529		–		8,916
Total revenues	$	125,453	$	67,713	$	132	$	193,298

	26 Weeks Ended June 28, 2018
	Reportable Segment
	Theatres		Hotels/ Resorts		Corporate		Total
Theatre admissions	$	132,613	$	–	$	–	$	132,613
Rooms		–		49,789		–		49,789
Theatre concessions		88,211		–		–		88,211
Food and beverage		–		34,639		–		34,639
Other revenues⁽¹⁾		16,698		22,631		220		39,549
Cost reimbursements		866		15,822		–		16,688
Total revenues	$	238,388	$	122,881	$	220	$	361,489

(1)

Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC No. 2014-09.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Due to adoption of ASU No. 2014-09, on the first day of fiscal 2018, the Company recorded a one-time cumulative effect adjustment to the balance sheet as follows:

	Balance at December 28, 2017		Cumulative Adjustment		Balance at December 29, 2017
	(in thousands)
Refundable income taxes	$	15,335	$	945	$	16,280
Other accrued liabilities		53,291		3,296		56,587
Deferred compensation and other		56,662		217		56,879
Retained earnings		403,206		(2,568)		400,638

The adoption of ASU No. 2014-09 had the following effect on our consolidated statement of earnings for the 13 and 26 weeks ended June 28, 2018 (in thousands):

	For the 13 Weeks Ended June 28, 2018						For the 26 Weeks Ended June 28, 2018
	As Reported		ASU No. 2014-09 Impact		Adjusted ⁽¹⁾		As Reported		ASU No. 2014-09 Impact		Adjusted ⁽¹⁾
Revenues:
Theatre admissions	$	69,607	$	(750)	$	70,357	$	132,613	$	(1,356)	$	133,969
Theatre concessions		46,798		546		46,252		88,211		964		87,247
Food and beverage		18,836		41		18,795		34,639		20		34,619
Other revenues		20,023		1,418		18,605		39,549		2,705		36,844
Total revenues		193,298		1,255		192,043		361,489		2,333		359,156

Costs and expenses:
Theatre operations		61,153		160		60,993		115,808		314		115,494
Theatre concessions		12,976		171		12,805		24,937		310		24,627
Advertising and marketing		6,025		(563)		6,588		11,139		(1,053)		12,192
Other operating expenses		9,307		1,402		7,905		18,063		2,604		15,459
Total costs and expenses		164,191		1,170		163,021		315,366		2,175		313,191

Operating income		29,107		85		29,022		46,123		158		45,965
Income taxes		6,207		21		6,186		9,628		40		9,588
Net earnings attributable to The Marcus Corporation		18,619		64		18,555		28,440		118		28,322

(1)

The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09.

The adoption of ASU No. 2014-09 had the following effect on our consolidated balance sheet as of June 28, 2018 (in thousands):

	As Reported		ASU No. 2014-09 Impact		Adjusted ⁽¹⁾
Refundable income taxes	$	3,400	$	945	$	2,455
Total current assets		67,303		945		66,358
Total assets		1,002,226		945		1,001,281
Other accrued liabilities		49,272		3,572		45,700
Total current liabilities		137,472		3,572		133,900
Deferred compensation and other		59,285		99		59,186
Retained Earnings		420,910		(2,726)		423,636
Shareholders equity attributable to The Marcus Corporation		466,933		(2,726)		469,659
Total equity		467,092		(2,726)		469,818
Total liabilities and shareholders equity		1,002,226		945		1,001,281

(1)

The amounts reflect each affected financial statement line item as they would have been reported under US GAAP prior to the adoption of ASU No. 2014-09.