Revenue Recognition (Tables)

9 Months Ended

Sep. 27, 2018

The disaggregation of revenues by business segment for the 13 and 39 weeks ended September 27, 2018 is as follows (in thousands):

	13 Weeks Ended September 27, 2018
	Reportable Segment
	Theatres		Hotels/ Resorts		Corporate		Total
Theatre admissions	$	52,422	$	–	$	–	$	52,422
Rooms		–		34,467		–		34,467
Theatre concessions		35,476		–		–		35,476
Food and beverage		–		19,333		–		19,333
Other revenues (1)		6,893		12,822		98		19,813
Cost reimbursements		218		8,870		–		9,088
Total revenues	$	95,009	$	75,492	$	98	$	170,599

	39 Weeks Ended September 27, 2018
	Reportable Segment
	Theatres		Hotels/ Resorts		Corporate		Total
Theatre admissions	$	185,035	$	–	$	–	$	185,035
Rooms		–		84,256		–		84,256
Theatre concessions		123,687		–		–		123,687
Food and beverage		–		53,972		–		53,972
Other revenues (1)		23,591		35,453		318		59,362
Cost reimbursements		1,084		24,692		–		25,776
Total revenues	$	333,397	$	198,373	$	318	$	532,088

(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 39 weeks ended September 27, 2018 (in thousands):

	For the 13 Weeks Ended September 27, 2018							For the 39 Weeks Ended September 27, 2018
	As Reported		ASU No. 2014-09 Impact			Adjusted (1)		As Reported		ASU No. 2014-09 Impact			Adjusted (1)
Revenues:
Theatre admissions	$	52,422	$	(605	)	$	53,027	$	185,035	$	(1,961	)	$	186,996
Theatre concessions		35,476		503			34,973		123,687		1,467			122,220
Food and beverage		19,333		3			19,330		53,972		23			53,949
Other revenues		19,813		904			18,909		59,362		3,609			55,753
Total revenues		170,599		805			169,794		532,088		3,138			528,950

Costs and expenses:
Theatre operations		48,644		165			48,479		164,452		479			163,973
Theatre concessions		10,168		159			10,009		35,105		469			34,636
Advertising and marketing		6,178		(496	)		6,674		17,317		(1,549	)		18,866
Other operating expenses		8,969		910			8,059		27,032		3,514			23,518
Total costs and expenses		148,186		738			147,448		463,552		2,913			460,639

Operating income		22,413		67			22,346		68,536		225			68,311
Income taxes		2,626		9			2,617		12,254		48			12,206
Net earnings attributable to The Marcus Corporation		16,231		58			16,173		44,671		177			44,494

(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 September 27, 2018 (in thousands):

	As Reported		ASU No. 2014-09 Impact			Adjusted (1)
Refundable income taxes	$	3,531	$	945		$	2,586
Total current assets		57,368		945			56,423
Total assets		986,686		945			985,741
Other accrued liabilities		46,269		3,639			42,630
Total current liabilities		120,981		3,639			117,342
Deferred compensation and other		59,157		99			59,058
Retained Earnings		433,022		(2,793	)		435,815
Shareholders’ equity attributable to The Marcus Corporation		482,931		(2,793	)		485,724
Total equity		483,036		(2,793	)		485,829
Total liabilities and shareholders’ equity		986,686		945			985,741

(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.