REVENUE RECOGNITION

6 Months Ended

Dec. 29, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Deferred Franchise and Development Fees

Our deferred franchise and development 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 our active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, due to the variability and uncertainty of these future revenues based upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied.

Deferred franchise and development fees are classified within Other accrued liabilities for the current portion expected to be recognized within the next 12 months, and Other liabilities for the long-term portion in the Consolidated Balance Sheets (Unaudited).

The following table reflects the changes in deferred franchise and development fees between June 30, 2021 and December 29, 2021:

	Deferred Franchise and Development Fees
Balance as of June 30, 2021	$	11.4
Additions	0.7
Amount recognized for Chili's restaurant acquisitions(1)	(0.7)
Amount recognized to Franchise and other revenues	(0.8)
Balance as of December 29, 2021	$	10.6

(1)    The remaining deferred franchise and development fee balances associated with the 60 acquired Chili’s restaurants were recognized as of the acquisition dates in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited). Refer to Note 2 - Chili’s Restaurant Acquisitions for further details.

The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 29, 2021:

Fiscal Year	Franchise and Development Fees Revenue Recognition
Remainder of 2022	$	0.5
2023	0.9
2024	0.9
2025	0.8
2026	0.8
Thereafter	6.7
	$	10.6

Deferred Gift Card Revenues

Deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 30, 2021 and December 29, 2021:

	Gift Card Liability
Balance as of June 30, 2021	$	106.4
Gift card sales	91.6
Gift card redemptions recognized to Company sales	(50.6)
Gift card breakage recognized to Franchise and other revenues	(12.2)
Balance as of December 29, 2021	$	135.2