Popeye's 2015 Annual Report Download - page 70

Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2015, 2014, and 2013 — (Continued)
for our fiscal 2018 which begins on January 1, 2018. The guidance is not expected to impact our recognition of sales from
Company-operated restaurants, ongoing royalty fees which are based on a percentage of franchise sales, or rent from franchised
restaurants which is composed of rental income and other fees associated with properties leased or subleased to franchisees. We
are continuing to evaluate the impact the adoption of this standard will have on the recognition of development, franchise,
renewal and other franchise fees.
Share-based Payments. In June 2014, the FASB issued guidance that requires that a performance target for a share-based
payment award that affects vesting and that could be achieved after the requisite service period be treated as a performance
condition. The performance condition should not be reflected in the grant date fair value of the award. Compensation cost
should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent
the compensation cost attributable to the period for which the requisite service has already been rendered. The company already
applies the standards proscribed in this guidance so it will not have an impact to us. This guidance is effective for annual periods
and interim periods within those annual periods beginning after December 15, 2015 which is our fiscal 2016.
Going Concern. In August 2014, the FASB issued guidance related to management’s responsibility to evaluate whether
there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain
principles that are currently in U.S. auditing standards and to provide related footnote disclosures. This guidance is effective for
the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The requirements of
this guidance are not expected to have a significant impact on the consolidated financial statements.
Extraordinary Items. In January 2015, the FASB issued guidance that eliminates from generally accepted accounting
principles in the United States of America (“GAAP”) the concept of extraordinary items. This guidance is effective for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the
amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in
the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year
of adoption.The requirements of this guidance are not expected to have a significant impact on the consolidated financial
statements.
Debt Issuance Costs. In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the
balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a
debt discount. The standard is effective for our fiscal year 2016 and will be applied on a retrospective basis. The Company had
$0.7 million and $0.9 million of debt issuance costs at December 27, 2015 and December 28, 2014, respectively.
Income Taxes. In November 2015, the FASB issued guidance to simplify the classification of deferred tax assets and
liabilities in a classified statement of financial position. Current GAAP requires deferred tax liabilities and assets to be classified
as current or non-current based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities
and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date
of the temporary difference. Under the new guidance, all deferred income tax liabilities and assets are to be classified as non-
current in a classified statement of financial position. This guidance is effective for our fiscal year 2016. The requirements of
this guidance are not expected to have a significant impact on the consolidated financial statements.
We have reviewed other recently issued accounting pronouncements by the FASB and other standards-setting bodies and
concluded that they are either not applicable to our business or are expected to have an immaterial impact on the financial
statements upon adoption.
Note 4 — Other Current Assets
(in millions) 2015 2014
Prepaid income taxes 3.6 2.8
Prepaid expenses and other current assets 4.9 4.6
Total $ 8.5 $ 7.4
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