The China Division leases their corporate headquarters and research facilities in Shanghai, China. Nearly 100 percent of the China units, none of the India units and 6 percent of the units outside China and India are Company-owned. Results for all periods exclude the India Division. In January 2011, the District Court stayed the entire action pending a decision from the California Supreme Court in Brinker Restaurant Corp. Restaurant management structure varies by Concept and unit size.
The use of this information is regulated by evolving and increasingly demanding laws, as well as by certain third-party contracts. On July 9, 2009, a putative class action styled Mark Smith v. Many social media platforms immediately publish the content their subscribers and participants post, often without filters or checks on accuracy of the content posted. Prior to these positions, Mr. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2011, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Currently, our company ownership is 13 percent in the U. Historically, the cash we generate outside the U.
To date, all counterparties have performed in accordance with their contractual obligations. Our subsidiaries operate on similar fiscal calendars except that certain international subsidiaries operate on a monthly calendar, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter. Changes in such legislation, regulation or interpretation could increase our taxes and have an adverse effect on our operating results and financial condition. Our international subsidiaries that operate on a monthly calendar, including China and India, are not impacted by the addition of a 53rd week. This would likely result in lower revenues and profits. Brands Inc stocks is 1. This could cause our worldwide effective tax rate to increase materially.
Public concern over avian flu generally may cause fear about the consumption of chicken, eggs and other products derived from poultry, which could cause customers to consume less poultry and related products. The net deferred tax assets primarily relate to temporary differences in profitable U. The use of these updated mortality assumptions increased the benefit obligation for these U. Company same-store sales were flat in 2013. In the year to date ended June 16, 2012 , the increase in China Company sales and Restaurant profit associated with store portfolio actions was primarily driven by new unit development and the acquisition of Little Sheep, partially offset by restaurant closures.
The fair value of the Little Sheep reporting unit was based on the estimated price a willing buyer would pay, and was determined using an income approach with future cash flow estimates generated by the business as a significant input. See the Summary at the beginning of this section for discussion of China sales. We evaluate goodwill for impairment on an annual basis as of the beginning of our fourth quarter or more often if an event occurs or circumstances change that indicates impairment might exist. Dollar relative to other currencies, such as the Australian Dollar, the British Pound, the Canadian Dollar and the Euro, as well as currencies in certain emerging markets, could have an adverse effect on our reported earnings. See the Little Sheep Acquisition and Subsequent Impairment section of Note 4 for details.
In addition, our results of operations and the value of our foreign assets are affected by fluctuations in currency exchange rates, which may adversely affect reported earnings. Company-owned restaurants in China are generally leased for initial terms of 10 to 15 years and generally do not have renewal options. During 2017, system sales grew a healthy 5% excluding the impact of lapping the 53rd week in 2016, with same-store sales growth of 2% and net new unit growth of 3%. In connection with the refranchising of stores in the U. Historically, these anticipated bids have been reasonably accurate estimations of the proceeds ultimately received. The Company and its Concepts own numerous registered trademarks and service marks. Brands met or exceeded each component of our full-year guidance.
We continue to evaluate our returns and ownership positions with an earn-the-right-to-own philosophy on company-owned restaurants. Our ongoing earnings growth model in China includes low double-digit percentage unit growth, mid-single digit same-store sales growth and moderate margin improvement, which we expect to drive Operating Profit growth of 15%. At June 16, 2012 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments. The increase was driven by refranchising, franchise new unit development and franchise same-store sales growth. We attempt to minimize the exposure related to our net investments in foreign operations by financing those investments with local currency debt when practical.
Our China and India Divisions report on a monthly basis and thus did not have a 53 rd week in 2011. This estimated reduction assumes no changes in sales volumes or local currency sales or input prices. Except as disclosed herein, there has been no material change in the information disclosed in our Consolidated Financial Statements included in the 2011 Form 10-K. In March of 2012, his title and job responsibilities were expanded to include Global Nutrition Officer. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Franchise and license fees and income increased 4% in 2012, excluding the 53 rd week in 2011. The seasoning business is forecasted to generate sales growth rates and margins consistent with historical results.
As a result of settlement payments from the programs discussed above exceeding the sum of service and interest costs within these U. Food-borne illnesses, such as E. Conversely, a 50 basis-point decrease in this discount rate would have increased our U. The Company is not aware of any federal, state or local environmental laws or regulations that will materially affect its earnings or competitive position, or result in material capital expenditures. Prior to these positions, Mr.
Drive Aggressive International Expansion and Build Strong Brands Everywhere — The Company and its franchisees opened over 900 new restaurants in 2011 outside the U. Increased Franchise and license expenses represent primarily rent and depreciation where we continue to own or lease the underlying property for the refranchised restaurants that were recorded by the Company in the current year during periods in which the restaurants were Company stores in the prior year. The Company is subject to various lawsuits covering a variety of allegations. An 8-K was filed on April 13, 2017 with restated quarterly and full-year 2016 results. Outbreaks of avian flu occur from time to time around the world, including in China where a significant portion of our profits and revenues originate. Most of the employees work on a part-time basis. Area Coaches typically work with approximately six to twelve restaurants.