REVENUE RECOGNITION

9 Months Ended

Mar. 25, 2020

Deferred Development and Franchise Fees

Our deferred development and franchise fees consist of the unrecognized fees received from franchisees. Recognition of these fees in subsequent periods is based on satisfaction of the contractual performance obligations of the active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, these future revenues are not yet determinable due to unsatisfied performance obligations based upon a sales-based measure.

The unrecognized fees received from franchisees are classified within Other accrued liabilities (current portion) and Other liabilities (long-term portion) in the Consolidated Balance Sheets (Unaudited). A summary of significant changes to the related deferred balance during the thirty-nine week period ended March 25, 2020 is presented below, followed by the revenues expected to be recognized in the subsequent periods based on current information.



	Deferred Development and Franchise Fees
Balance at June 26, 2019	$	16.2
Additions	0.8
Amount recognized for Chili’s restaurant acquisition⁽¹⁾	(2.6		)
Amount recognized to Franchise and other revenues	(1.3		)
Balance at March 25, 2020	$	13.1


⁽¹⁾	Deferred development and franchise fees remaining balances associated with the 116 Chili’s restaurants acquired from a franchisee at the September 5, 2019 acquisition date were recognized in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited).



Fiscal Year	Development and Franchise Fees Revenue Recognition
Remainder of 2020	$	0.3
2021	1.1
2022	1.0
2023	1.0
2024	1.0
Thereafter	8.7
	$	13.1