Dunkin' Donuts 2011 Annual Report Download - page 90

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to perform the two-step impairment test for that reporting unit. This guidance is effective for the Company
beginning in fiscal year 2012. The Company does not expect the adoption of this guidance to have a material
impact on its consolidated financial statements.
In June 2011, the FASB issued new guidance to increase the prominence of other comprehensive income in
financial statements. This guidance provides the option to present the components of net income and
comprehensive income in either one single statement or in two consecutive statements reporting net income and
other comprehensive income. The Company adopted this guidance in fiscal year 2011 and presents the
components of net income and comprehensive income in two consecutive statements. The adoption of this
guidance did not have a material impact on our consolidated financial statements.
In May 2011, the FASB issued new guidance to clarify existing fair value guidance and to develop common
requirements for measuring fair value and for disclosing information about fair value measurements in
accordance with GAAP and International Financial Reporting Standards. This guidance is effective for the
Company beginning in fiscal year 2012. The Company does not expect the adoption of this guidance to have a
material impact on its consolidated financial statements.
In December 2010, the FASB issued new guidance to amend the criteria for performing the second step of the
goodwill impairment test for reporting units with zero or negative carrying amounts and requires performing the
second step if qualitative factors indicate that it is more likely than not that a goodwill impairment exists. This
new guidance was effective for the Company beginning in fiscal year 2011. The adoption of this guidance did not
have any impact on our goodwill assessment or our consolidated financial statements.
(w) Subsequent events
Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.
(3) Franchise fees and royalty income
Franchise fees and royalty income consisted of the following (in thousands):
Fiscal year ended
December 31,
2011
December 25,
2010
December 26,
2009
Royalty income ................................. $363,458 332,770 317,692
Initial franchise fees, including renewal income ........ 35,016 27,157 26,328
Total franchise fees and royalty income .......... $398,474 359,927 344,020
The changes in franchised and company-owned points of distribution were as follows:
Fiscal year ended
December 31,
2011
December 25,
2010
December 26,
2009
Systemwide Points of Distribution:
Franchised points of distribution in operation—beginning of year .... 16,162 15,375 14,846
Franchises opened .......................................... 1,335 1,618 1,601
Franchises closed ........................................... (735) (815) (1,055)
Net transfers from (to) company-owned points of distribution ....... 1 (16) (17)
Franchised points of distribution in operation—end of year ......... 16,763 16,162 15,375
Company-owned points of distribution—end of year ............... 31 31 18
Total systemwide points of distribution—end of year .......... 16,794 16,193 15,393
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