NASDAQ_TXRH_2018

(coco) #1
Texas Roadhouse, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Tabular amounts in thousands, except share and per share data)

F-14


The impact of adopting ASC 606 as compared to the previous revenue recognition guidance on our consolidated
balance sheet and consolidated statements of income and comprehensive income was as follows:


December 25, 2018
Balances Without Adoption
Adoption of Impact of
As Reported ASC 606 ASC 606
Balance Sheet
Liabilities
Deferred tax liabilities, net ....................................... $ 17,268 $ 17,568 $ (300)
Other liabilities, non-current ...................................... 48,295 47,114 1,181


Equity
Retained earnings .............................................. $ 688,337 $ 689,218 $ (881)


Fiscal Year Ended December 25, 2018
Balances Without Adoption
Adoption of Impact of
As Reported ASC 606 ASC 606
Income Statement
Revenue
Restaurant and other sales ....................................... $ 2,437,115 $ 2,442,268 $ (5,153)
Franchise royalties and fees ...................................... 20,334 17,990 2,344


Costs and expenses
Other operating ................................................ 375, 477 380,630 (5,153)
General and administrative ....................................... 136, 163 133,815 2,348
Provision for income taxes ....................................... 24,257 24,258 (1)


Net Income .................................................... $ 158,225 $ 158,228 $ (3)


Statement of Cash Flows
(Accounting Standards Update 2016-15, "ASU 2016-15")

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain
Cash Receipts and Cash Payments, which adds and/or clarifies guidance on the classification of certain cash receipts and
payments in the statement of cash flows. We adopted this guidance as of the beginning of our 2018 fiscal year. The
adoption of this guidance did not have a material impact on our consolidated financial position, results of operations or
cash flows.


Income Taxes
(Accounting Standards Update 2016-16, "ASU 2016-16")

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), which addresses the income tax
consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current
and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This
standard will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset
other than inventory when the transfer occurs. We adopted this guidance as of the beginning of our 2018 fiscal
year. The adoption of this guidance did not have a material impact on our consolidated financial position, results of
operations or cash flows.

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