Revenue Recognition | (a) Disaggregation of revenue Revenues are disaggregated by timing of revenue recognition related to contracts with customers (“ASC 606”) and reconciled to reportable segment revenues as follows (in thousands): Three months ended June 27, 2020 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 103,019 8,170 2,296 1,686 — 115,171 (5,052 ) 110,119 Franchise fees 5,131 245 423 173 — 5,972 (126 ) 5,846 Advertising fees and related income — — — — 99,483 99,483 934 100,417 Other revenues 619 2,480 43 1 — 3,143 9,498 12,641 Total revenues recognized over time 108,769 10,895 2,762 1,860 99,483 223,769 5,254 229,023 Revenues recognized at a point in time: Sales of ice cream and other products — 870 — 24,529 — 25,399 (2,696 ) 22,703 Other revenues 162 19 31 (9 ) — 203 216 419 Total revenues recognized at a point in time 162 889 31 24,520 — 25,602 (2,480 ) 23,122 Total revenues recognized under ASC 606 108,931 11,784 2,793 26,380 99,483 249,371 2,774 252,145 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 9,214 9,214 Rental income 25,217 623 — 177 — 26,017 — 26,017 Total revenues not subject to ASC 606 25,217 623 — 177 — 26,017 9,214 35,231 Total revenues $ 134,148 12,407 2,793 26,557 99,483 275,388 11,988 287,376 (a) Revenues reported as “Other” include revenues earned through certain licensing arrangements, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products, certain franchisee incentives, and corporate financial relief provided to franchisees are reported as “Other.” Three months ended June 29, 2019 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 131,682 8,828 5,396 1,953 — 147,859 4,087 151,946 Franchise fees 3,418 344 2,030 520 — 6,312 — 6,312 Advertising fees and related income — — — — 123,588 123,588 1,396 124,984 Other revenues 584 3,000 — — — 3,584 8,559 12,143 Total revenues recognized over time 135,684 12,172 7,426 2,473 123,588 281,343 14,042 295,385 Revenues recognized at a point in time: Sales of ice cream and other products — 1,080 — 29,997 — 31,077 (3,819 ) 27,258 Other revenues 402 63 44 (8 ) — 501 239 740 Total revenues recognized at a point in time 402 1,143 44 29,989 — 31,578 (3,580 ) 27,998 Total revenues recognized under ASC 606 136,086 13,315 7,470 32,462 123,588 312,921 10,462 323,383 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 4,275 4,275 Rental income 30,491 973 — 215 — 31,679 — 31,679 Total revenues not subject to ASC 606 30,491 973 — 215 — 31,679 4,275 35,954 Total revenues $ 166,577 14,288 7,470 32,677 123,588 344,600 14,737 359,337 (a) Revenues reported as “Other” include revenues earned through certain licensing arrangements, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” Six months ended June 27, 2020 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other(a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 220,874 14,407 7,342 3,384 — 246,007 (2,149 ) 243,858 Franchise fees 10,018 600 760 305 — 11,683 (100 ) 11,583 Advertising fees and related income — — — — 208,114 208,114 2,086 210,200 Other revenues 1,375 4,496 88 — — 5,959 19,818 25,777 Total revenues recognized over time 232,267 19,503 8,190 3,689 208,114 471,763 19,655 491,418 Revenues recognized at a point in time: Sales of ice cream and other products — 2,279 — 49,786 — 52,065 (5,415 ) 46,650 Other revenues 531 63 86 (19 ) — 661 441 1,102 Total revenues recognized at a point in time 531 2,342 86 49,767 — 52,726 (4,974 ) 47,752 Total revenues recognized under ASC 606 232,798 21,845 8,276 53,456 208,114 524,489 14,681 539,170 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 16,401 16,401 Rental income 53,140 1,406 — 403 — 54,949 — 54,949 Total revenues not subject to ASC 606 53,140 1,406 — 403 — 54,949 16,401 71,350 Total revenues $ 285,938 23,251 8,276 53,859 208,114 579,438 31,082 610,520 (a) Revenues reported as “Other” include revenues earned through certain licensing arrangements, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products, certain franchisee incentives, and corporate financial relief provided to franchisees are reported as “Other.” Six months ended June 29, 2019 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other(a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 248,779 14,931 11,309 3,858 — 278,877 7,236 286,113 Franchise fees 7,044 656 2,895 878 — 11,473 — 11,473 Advertising fees and related income — — — — 232,230 232,230 2,572 234,802 Other revenues 1,294 5,163 4 — — 6,461 17,617 24,078 Total revenues recognized over time 257,117 20,750 14,208 4,736 232,230 529,041 27,425 556,466 Revenues recognized at a point in time: Sales of ice cream and other products — 1,751 — 53,072 — 54,823 (6,832 ) 47,991 Other revenues 866 131 113 13 — 1,123 486 1,609 Total revenues recognized at a point in time 866 1,882 113 53,085 — 55,946 (6,346 ) 49,600 Total revenues recognized under ASC 606 257,983 22,632 14,321 57,821 232,230 584,987 21,079 606,066 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 11,655 11,655 Rental income 58,339 1,933 — 435 — 60,707 — 60,707 Total revenues not subject to ASC 606 58,339 1,933 — 435 — 60,707 11,655 72,362 Total revenues $ 316,322 24,565 14,321 58,256 232,230 645,694 32,734 678,428 (a) Revenues reported as “Other” include revenues earned through certain licensing arrangements, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” (b) Contract balances Information about receivables, contract assets, and deferred revenue subject to ASC 606 is as follows (in thousands): June 27, December 28, Balance Sheet Classification Receivables $ 132,890 86,104 Accounts receivable, net, Notes and other receivables, net, and Other assets Contract assets 6,511 4,894 Other assets Deferred revenue: Current $ 27,146 27,213 Deferred revenue—current Long-term 297,509 320,457 Deferred revenue—long term Total $ 324,655 347,670 Receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sales of ice cream and other products, and licensing fees. Contract assets relate primarily to consideration paid to customers, including franchisee incentives, that exceeds the fixed consideration received for certain contracts, net of any revenue recognized. Deferred revenue primarily represents the Company’s remaining performance obligations under its franchise and license agreements for which consideration has been received or is receivable, and is generally recognized on a straight-line basis over the remaining term of the related agreement. The decrease in the deferred revenue balance as of June 27, 2020 was driven primarily by $18.4 million of revenues recognized that were included in the opening deferred revenue balance as of December 28, 2019 , as well as franchisee incentives provided during fiscal year 2020, offset by cash payments received or due in advance of satisfying our performance obligations. (c) Transaction price allocated to remaining performance obligations Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at June 27, 2020 is as follows (in thousands): Fiscal year: 2020 (a) $ 15,056 2021 19,200 2022 17,619 2023 17,737 2024 18,016 Thereafter 199,939 Total $ 287,567 (a) Represents the estimate for remainder of fiscal year 2020 which excludes the six months ended June 27, 2020. The estimated revenue in the table above does not contemplate future franchise renewals or new franchise agreements for restaurants for which a franchise agreement or store development agreement does not exist at June 27, 2020 . Additionally, the table above excludes $45.5 million of consideration allocated to restaurants that were not yet open at June 27, 2020 |