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Revenues Revenues (Tables)
 12 Months Ended
Dec. 26, 2018
Revenue from Contract with Customer [Abstract]  
Disaggregation of revenue
Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channels and types of goods or services.

 
Fiscal Year Ended
 
December 26, 2018
 
December 27, 2017 (1)
 
December 28, 2016 (1)
 
 
 
 
Company restaurant sales
$
411,932

 
$
390,352

 
$
367,310

Franchise and license revenue:
 
 
 
 
 
Royalties
101,557

 
100,631

 
98,416

Advertising revenue
78,308

 
—

 
—

Initial and other fees
6,422

 
2,466

 
2,717

Occupancy revenue 
31,960

 
35,720

 
38,505

Franchise and license revenue 
218,247

 
138,817

 
139,638

Total operating revenue
$
630,179

 
$
529,169

 
$
506,948


(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 December 26, 2018 and for the quarter and year ended December 26, 2018.

 
Year ended December 26, 2018
Consolidated Balance Sheet
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Prepaid and other current assets
$
10,866

 
$
509

 
$
11,375

Deferred income taxes
17,333

 
(4,988
)
 
12,345

Other current liabilities
61,790

 
(407
)
 
61,383

Other noncurrent liabilities
48,087

 
(18,370
)
 
29,717

Deficit
(306,414
)
 
14,298

 
(292,116
)

 
Quarter ended December 26, 2018
 
Year ended December 26, 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
$
55,160

 
$
(21,162
)
 
$
33,998

 
$
218,247

 
$
(82,815
)
 
$
135,432

Costs of franchise and license revenue
28,517

 
(20,962
)
 
7,555

 
114,296

 
(81,268
)
 
33,028

Provision for income taxes
1,340

 
(52
)
 
1,288

 
8,557

 
(400
)
 
8,157

Net income
11,503

 
(148
)
 
11,355

 
43,693

 
(1,147
)
 
42,546

Basic net income per share
$
0.19

 
$
(0.01
)
 
$
0.18

 
$
0.69

 
$
(0.02
)
 
$
0.67

Diluted net income per share
$
0.18

 
$
—

 
$
0.18

 
$
0.67

 
$
(0.02
)
 
$
0.65


 
Quarter ended December 26, 2018
 
Year ended December 26, 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
$
11,503

 
$
(148
)
 
$
11,355

 
$
43,693

 
$
(1,147
)
 
$
42,546

Total comprehensive income
4,816

 
(148
)
 
4,668

 
41,863

 
(1,147
)
 
40,716


 
Year ended December 26, 2018
Consolidated Statement of Cash Flow
As Reported
 
Adjustments
 
Amounts without adoption of Topic 606
 
(In thousands)
Net income
$
43,693

 
$
(1,147
)
 
$
42,546

Deferred income tax expense
6,193

 
(400
)
 
5,793

Changes in assets and liabilities:
 
 
 
 
 
Other current assets
921

 
(509
)
 
412

Other accrued liabilities
(1,676
)
 
573

 
(1,103
)
Other noncurrent liabilities
(4,418
)
 
1,483

 
(2,935
)
Net cash flows provided by operating activities
73,690

 
—

 
73,690
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
1,256

Revenue recognized (1)
(3,337
)
Balance, December 26, 2018
20,538

Less current portion included in other current liabilities
2,124

Deferred franchise revenue included in other noncurrent liabilities
$
18,414


(1)
Of this amount $3.3 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 December 26, 2018, the deferred franchise revenue expected to be recognized in the future is as follows:

 
(In thousands)
2019
$
2,124

2020
1,977

2021
1,796

2022
1,687

2023
1,608

Thereafter
11,346

Deferred franchise revenue
$
20,538