The loss on debt extinguishment and refinancing transactions incurred in fiscal year 2011 resulted from the completion of the initial public offering and related repayment of senior notes, as well as term loan re-pricing and upsize transactions completed in the first half of 2011. Of course, many companies with negative retained earnings have indeed lost money in the past. In the context of the restaurant industry, a franchisee pays the franchisor for its concept, strategy, marketing, operating system, training, purchasing power and brand recognition. However, not all of the trademarks or service marks that we currently use have been registered in all of the countries in which we do business, and they may never be registered in all of those countries. Baskin-Robbins 31 flavors, offering consumers a different flavor for each day of the month, is recognized by ice cream consumers nationwide. The trade name intangible asset impairment test consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. Our development of properties for leasing or subleasing to franchisees depends to a significant extent on the selection and acquisition of suitable sites, which are subject to zoning, land use, environmental, traffic and other regulations and requirements.
Selected operating and financial highlights Fiscal year 2009 2010 2011 Systemwide sales growth 4. Termination of an arrangement with a master franchisee could adversely impact our revenues. The effective tax rate for fiscal year 2010 was also impacted by a reduced income before income taxes, driven by the loss on debt extinguishment, which magnified the impact of permanent and other tax differences. Baskin-Robbins restaurants totaled 6,711, operating in 44 states and the District of Columbia in the U. Overall enterprise and equity values were estimated using a combination of both market and income approaches in order to corroborate the values derived under the different methods. If our operating performance declines, we may in the future need to obtain waivers from the required lenders under our senior credit facility to avoid being in default. Any changes in the U.
In addition, in Japan and South Korea we have joint ventures with local companies for the Baskin-Robbins brand, and in the case of South Korea, for the Dunkin Donuts brand as well. We believe that the majority of these cost savings represent sustainable improvements to our franchisees supply costs, with the remainder dependent upon the outcome of future supply contract re-negotiations, which typically occur every two to four years. s wholly-owned domestic subsidiaries and includes a term loan facility and a revolving credit facility. The remaining balance of restaurants selling our products are situated on real property owned by franchisees or leased directly by franchisees from third-party landlords. We monitor quality and endeavor to ensure compliance with our standards for restaurant operations through restaurant visits in the U. Mine Safety Disclosures Not applicable.
In support of this, we have enhanced initial and ongoing restaurant manager and crew training programs and developed new in-store planning and tracking technology tools to assist our franchisees. They also produce their own donuts following the Dunkin Donuts brands approved processes. The increase in contingent liabilities from the prior year is primarily due to the Company entering into an amended and restated agreement with a supplier during the three months ended September 26, 2015 upon expiration of the original agreement, under which the Company guarantees franchisees will purchase a certain volume of product each year over the term of the agreement. Increases in commodity prices may negatively affect payments from our franchisees and licensees. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. The number of common shares used in the calculations of diluted earnings per pro forma common share and diluted adjusted earnings per pro forma common share for fiscal years 2011, 2010, and 2009 give effect to the conversion of all outstanding shares of Class L common stock at the conversion factor of 2. The Dunkin Donuts branded 12 oz.
The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. We generate revenue from four primary sources: i royalties and fees associated with franchised restaurants; ii rental income from restaurant properties that we lease or sublease to franchisees; iii sales of ice cream and ice cream products to franchisees in certain international markets; and iv other income including fees for the licensing of the Dunkin Donuts brand for products sold in non-franchised outlets such as retail packaged coffee and the licensing of the rights to manufacture Baskin-Robbins ice cream to a third party for ice cream and related products sold to U. Teashops, such as Teavana, continue to open and expand their stores across the country. In-restaurant K-Cup® and packaged coffee categories had a negative impact on comparable store sales. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. These forward-looking statements include all matters that are not historical facts. Similarly, no Baskin-Robbins franchisee in the U.
These combos, which we count as both a Dunkin Donuts and a Baskin-Robbins point of distribution, typically range from 1,400 to 3,500 square feet. Contingent rent is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. And although Dunkin' Donuts is known and seen at just about every street corner on the East Coast, the Company lacks this strong brand recognition elsewhere. This type of litigation could result in substantial costs and divert our managements attention and resources, and could also require us to make substantial payments to satisfy judgments or to settle litigation. As of February 17, 2012, 120,153,097 shares of common stock of the registrant were outstanding.
We believe these cross-default provisions significantly reduce the risk that we would not be able to recover the amount of required payments under these guarantees and, historically, we have not incurred significant losses under these guarantees due to defaults by our franchisees. In addition, our Peterborough Facility employed 71 full-time employees as of December 31, 2011. We believe that the international disclosure statements, franchise offering documents and franchising procedures for our Baskin-Robbins brand and Dunkin Donuts brand comply in all material respects with the laws of the applicable countries. Of our domestic employees, 431 worked in the field and 591 worked at our corporate headquarters or our satellite office in California. Regulatory matters Domestic We and our franchisees are subject to various federal, state and local laws affecting the operation of our respective businesses, including various health, sanitation, fire and safety standards. This profitability measure is referred to as segment profit.
The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. We require franchisees to maintain general liability insurance coverage to protect against the risk of product liability and other risks and demand strict franchisee compliance with health and safety regulations. Dunkin Donuts and Baskin-Robbins share the same vision of delivering high-quality beverage and food products at a good value through convenient locations. Our success depends substantially on the value of our brands. We believe this will require minimal additional capital investment by our franchisees. In addition, instances of food-borne illnesses or food tampering, even those occurring solely at the restaurants of competitors, could, by resulting in negative publicity about the foodservice or restaurant industry, adversely affect our sales on a regional or global basis.