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SEGMENT INFORMATION
 12 Months Ended
Dec. 29, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
11) SEGMENT INFORMATION

The Company has three reportable segments: (i) Domestic Stores; (ii) Domestic Supply Chain; and (iii) International. The Company’s operations are organized by management on the combined basis of line of business and geography. The Domestic Stores segment includes operations with respect to all franchised and Company-owned stores throughout the contiguous United States. The Domestic Supply Chain segment primarily includes the distribution of food, equipment and supplies to the Domestic Stores segment from the Company’s regional supply chain centers. The International segment primarily includes operations related to the Company’s franchising business in foreign and non-contiguous United States markets and its supply chain center operations in Canada, Alaska and Hawaii.

The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income.

The tables below summarize the financial information concerning the Company’s reportable segments for 2011, 2012 and 2013. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Domestic Supply Chain segment to the Company-owned stores in the Domestic Stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income and income from operations information below primarily includes corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements. Tabular amounts presented below are in thousands.

 

     Domestic
Stores		      Domestic
Supply Chain		      International     

Intersegment

Revenues

     Other     Total  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Revenues-

                

2011

    $ 523,356       $ 1,024,495       $ 200,933       $ (96,591 )      —        $ 1,652,193   

2012

      518,652         1,033,545         217,568         (91,326 )      —          1,678,439   

2013

      549,783         1,106,551         242,589         (96,700 )      —          1,802,223   

Segment Income-

                

2011

    $ 160,624       $ 78,970       $ 92,771         N/A      $ (37,345 )    $ 295,020   

2012

      176,042         81,987         104,902         N/A        (39,016 )      323,915   

2013

      188,180         92,842         119,031         N/A        (38,105 )      361,948   

Income from Operations-

                

2011

    $ 154,814       $ 71,801       $ 93,119         N/A      $ (60,589 )    $ 259,145   

2012

      169,922         73,829         105,298         N/A        (66,718 )      282,331   

2013

      181,995         84,503         118,866         N/A        (71,553 )      313,811   

Capital Expenditures-

                

2011

    $ 5,575       $ 7,281       $ 254         N/A      $ 11,239      $ 24,349   

2012

      7,357         8,804         454         N/A        12,652        29,267   

2013

      9,884         8,585         2,380         N/A        19,538        40,387   

The following table reconciles total Segment Income to income before provision for income taxes:

 

     2011     2012     2013  

Total Segment Income

    $ 295,020      $ 323,915      $ 361,948   

Depreciation and amortization

      (24,042 )      (23,171 )      (25,783 ) 

Gains (losses) on sale/disposal of assets

      2,436        (540 )      (367 ) 

Non-cash compensation expense

      (13,954 )      (17,621 )      (21,987 ) 

Expenses related to the sale of Company-owned stores

      (315 )      —          —     

2012 recapitalization-related expenses

      —          (252 )      —     
  

 

 

    

 

 

    

 

 

  

Income from operations

      259,145        282,331        313,811   

Interest income

      296        304        160   

Interest expense

      (91,635 )      (101,448 )      (88,872 ) 
  

 

 

    

 

 

    

 

 

  

Income before provision for income taxes

    $ 167,806      $ 181,187      $ 225,099   
  

 

 

    

 

 

    

 

 

  

The following table summarizes the Company’s identifiable asset information as of December 30, 2012 and December 29, 2013:

 

     2012      2013  

Domestic Stores

    $ 54,750       $ 57,879   

Domestic Supply Chain

      130,241         140,020   
  

 

 

     

 

 

  

Total domestic assets

      184,991         197,899   

International

      38,884         40,823   

Unallocated

      254,322         286,533   
  

 

 

     

 

 

  

Total consolidated assets

    $ 478,197       $ 525,255   
  

 

 

     

 

 

  

Unallocated assets primarily include cash and cash equivalents, restricted cash, advertising fund assets, investments in marketable securities, deferred financing costs, certain long-lived assets and deferred income taxes.

The following table summarizes the Company’s goodwill balance as of December 30, 2012 and December 29, 2013:

 

     2012      2013  

Domestic Stores

    $ 15,531       $ 15,531   

Domestic Supply Chain

      1,067         1,067   
  

 

 

     

 

 

  

Consolidated goodwill

    $ 16,598       $ 16,598   
  

 

 

     

 

 

  

The Company sold 58 stores in 2011 and six stores in 2012 to domestic franchisees. In connection with these sales of Company-owned stores, goodwill was reduced by approximately $0.7 million in 2011 and $0.1 million in 2012. Additionally, the closure of three Company-owned stores in 2011 resulted in a decrease in goodwill of approximately $76,000. No Company-owned stores were sold or closed during 2013.