Recent Accounting Pronouncements |
12 Months Ended |
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Dec. 25, 2016 | |
| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
| Recent Accounting Pronouncements |
Recent Accounting Pronouncements
In November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on presentation and disclosure of restricted cash in the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016. The Company will adopt this guidance when required, beginning with its fiscal first quarter 2017, but does not expect this adoption to have a material effect on presentation in the consolidated statements of cash flows.
In August 2016, the FASB issued guidance on cash flow classification of certain cash receipts and cash payments. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017. The Company is evaluating the impact of this guidance but does not expect adoption of the guidance to have a material effect on presentation in the consolidated statements of cash flows.
In March 2016, the FASB issued guidance on stock-based compensation, which changes the accounting for, and classification of, excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification, and the classification of those taxes paid on the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016 with early adoption permitted. The Company will adopt this guidance on a prospective basis beginning with its fiscal first quarter 2017.
In February 2016, the FASB issued new guidance on accounting for leases. This guidance requires the recognition of liabilities for lease obligations and corresponding right-of-use assets on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective adoption method. Early adoption is permitted. We are in the process of selecting a new lease management system and will transition to this system in 2017, which we expect will facilitate our adoption of the new guidance. The Company will adopt this guidance beginning with its fiscal first quarter 2019. We are evaluating the full impact this guidance will have on our consolidated financial statements, but the Company expect this adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheet.
In May 2014, the FASB issued guidance, as amended by multiple updates, outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance is effective for reporting periods beginning after December 15, 2017 with early adoption permitted. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We have determined the new revenue recognition standard will not have an impact on our recognition of food and beverage sales from Company-owned restaurants or our recognition of royalty fees from franchisees. The Company does not expect the impact of recognizing initial franchise fees over the franchise agreement period and recognizing advertising upon adoption of this standard to have a material effect on our consolidated financial statements. The Company will adopt this guidance beginning with its fiscal first quarter 2018 and will apply the guidance retrospectively to each prior period presented.
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