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Revenue (Tables)
 6 Months Ended
Jun. 27, 2018
Revenues [Abstract]  
Disaggregation of revenue
The following table disaggregates our revenue by sales channels and types of goods or services.

 
Quarter Ended
Two Quarters Ended
 
June 27, 2018
June 28, 2017 (1)
June 27, 2018
June 28, 2017 (1)
 
(Dollars in thousands)
Company restaurant sales
$
102,741

 
$
98,355

 
$
203,934

 
$
192,134

Franchise and license revenue:
 
 
 
 
 
 
 
Royalties
25,192

 
25,338

 
50,357

 
49,882

Advertising revenue
19,530

 
—

 
38,840

 
—

Initial and other fees
1,810

 
588

 
3,227

 
1,072

Occupancy revenue 
8,061

 
9,095

 
16,249

 
18,198

Franchise and license revenue 
54,593

 
35,021

 
108,673

 
69,152

Total operating revenue
$
157,334

 
$
133,376

 
$
312,607

 
$
261,286


(1)
As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.
Financial statement impact of adoption
The following tables summarize the impact of adopting Topic 606 on our financial statement line items as of June 27, 2018 and for the quarter and two quarters ended June 27, 2018.

 
Quarter ended June 27, 2018
Consolidated Balance Sheet
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Prepaid and other current assets
$
12,040

 
$
509

 
$
12,549

Deferred income taxes
19,333

 
(5,141
)
 
14,192

Other current liabilities
53,218

 
(1,230
)
 
51,988

Other noncurrent liabilities
47,831

 
(18,138
)
 
29,693

Deficit
(328,722
)
 
14,736

 
(313,986
)

 
Quarter ended June 27, 2018
 
Two quarters ended June 27, 2018
Consolidated Statement of Income
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands, except per share amounts)
Franchise and license revenue
$
54,593

 
$
(20,949
)
 
$
33,644

 
$
108,673

 
$
(41,256
)
 
$
67,417

Costs of franchise and license revenue
29,049

 
(20,535
)
 
8,514

 
57,605

 
(40,299
)
 
17,306

Provision for income taxes
2,578

 
(107
)
 
2,471

 
4,407

 
(247
)
 
4,160

Net income
11,626

 
(307
)
 
11,319

 
21,385

 
(710
)
 
20,675

Basic net income per share
$
0.18

 
$
0.00

 
$
0.18

 
$
0.33

 
$
(0.01
)
 
$
0.32

Diluted net income per share
$
0.18

 
$
(0.01
)
 
$
0.17

 
$
0.32

 
$
(0.01
)
 
$
0.31


 
Quarter ended June 27, 2018
 
Two quarters ended June 27, 2018
Consolidated Statement of Comprehensive Income
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Net income
$
11,626

 
$
(307
)
 
$
11,319

 
$
21,385

 
$
(710
)
 
$
20,675

Total comprehensive income
15,016

 
(307
)
 
14,709

 
21,684

 
(710
)
 
20,974


 
Two quarters ended June 27, 2018
Consolidated Statement of Cash Flow
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Net income
$
21,385

 
$
(710
)
 
$
20,675

Deferred income tax expense
2,896

 
(247
)
 
2,649

Changes in assets and liabilities:
 
 
 
 
 
Other current assets
(253
)
 
(509
)
 
(762
)
Other accrued liabilities
(6,352
)
 
851

 
(5,501
)
Other noncurrent liabilities
(1,345
)
 
615

 
(730
)
Net cash flows provided by operating activities
26,096

 
—

 
26,096
Components of the change in deferred franchise revenue
The components of the change in deferred franchise revenue are as follows:

 
(In thousands)
Balance, December 27, 2017
$
1,643

Cumulative effect adjustment recognized upon adoption of Topic 606
20,976

Fees received from franchisees
521

Revenue recognized (1)
(1,710
)
Balance, June 27, 2018
21,430

Less current portion included in other current liabilities
3,292

Deferred franchise revenue included in other noncurrent liabilities
$
18,138


(1) Of this amount $1.7 million was included in either the deferred franchise revenue balance as of December 27, 2017 or the cumulative effect adjustment.
Schedule of deferred franchise revenue recognition
As of June 27, 2018, the deferred franchise revenue expected to be recognized in the future is as follows:

 
(In thousands)
Remainder of 2018
$
1,093

2019
2,107

2020
1,983

2021
1,773

2022
1,665

Thereafter
11,360

Development agreements and unopened restaurants
1,449

Deferred franchise revenue
$
21,430