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SEGMENT INFORMATION
 12 Months Ended
Jun. 29, 2016
Segment Information [Abstract]  
Segment Reporting Disclosure
SEGMENT INFORMATION

Our operating segments are Chili's and Maggiano's. The Chili’s segment includes the results of our company-owned Chili’s restaurants in the U.S. and Canada as well as the results from our domestic and international franchise business. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants.

Company sales are derived principally from the sales of food and beverages. Franchise and other revenues primarily includes royalties, development fees, franchise fees, banquet service charge income, gift card breakage and discounts, tabletop device revenue, Chili's retail food product royalties and delivery fee income. We do not rely on any major customers as a source of sales and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments.

Our chief operating decision maker uses operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Operational expenses include food and beverage costs, restaurant labor costs and restaurant expenses. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands):

 
 
Fiscal Year Ended June 29, 2016
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
2,754,904

 
$
411,755

 
$
0

 
$
3,166,659

Franchise and other revenues
 
68,484

 
22,346

 
0

 
90,830

Total revenues
 
2,823,388

 
434,101

 
0

 
3,257,489

 
 
 
 
 
 
 
 
 
Operational expenses (a)
 
2,272,771

 
364,466

 
1,635

 
2,638,872

Depreciation and amortization
 
131,306

 
15,046

 
10,016

 
156,368

General and administrative
 
35,845

 
6,225

 
85,523

 
127,593

Other gains and charges
 
6,973

 
3,472

 
6,735

 
17,180

Total operating costs and expenses
 
2,446,895

 
389,209

 
103,909

 
2,940,013

 
 
 
 
 
 
 
 
 
Operating income
 
$
376,493

 
$
44,892

 
$
(103,909
)
 
$
317,476

 
 
 
 
 
 
 
 
 
Segment assets
 
$
1,218,009

 
$
163,753

 
$
90,954

 
$
1,472,716

Equity method investment (b)
 
10,257

 
0

 
0

 
10,257

Payments for property and equipment
 
80,277

 
17,540

 
14,971

 
112,788

____________________________________________________________________
(a)
Operational expenses includes cost of sales, restaurant labor and restaurant expenses.
(b)
The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures.

 
 
Fiscal Year Ended June 24, 2015
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
2,503,133

 
$
401,613

 
$
0

 
$
2,904,746

Franchise and other revenues
 
75,860

 
21,672

 
0

 
97,532

Total revenues
 
2,578,993

 
423,285

 
0

 
3,002,278

 
 
 
 
 
 
 
 
 
Operational expenses (a)
 
2,044,521

 
360,903

 
2,179

 
2,407,603

Depreciation and amortization
 
122,093

 
14,233

 
8,916

 
145,242

General and administrative
 
37,131

 
6,722

 
89,614

 
133,467

Other gains and charges
 
600

 
(1,009
)
 
5,173

 
4,764

Total operating costs and expenses
 
2,204,345

 
380,849

 
105,882

 
2,691,076

 
 
 
 
 
 
 
 
 
Operating income
 
$
374,648

 
$
42,436

 
$
(105,882
)
 
$
311,202

 
 
 
 
 
 
 
 
 
Segment assets
 
$
1,141,025

 
$
161,283

 
$
133,565

 
$
1,435,873

Equity method investment (b)
 
11,801

 
0

 
0

 
11,801

Payments for property and equipment
 
114,416

 
14,408

 
11,438

 
140,262

____________________________________________________________________
(a)
Operational expenses includes cost of sales, restaurant labor and restaurant expenses.
(b)
The equity method investment of the Mexican joint venture is included within Chili's segment assets. See Note 3 for additional disclosures.

 
 
Fiscal Year Ended June 25, 2014
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
2,443,950

 
$
379,119

 
$
0

 
$
2,823,069

Franchise and other revenues
 
65,364

 
21,062

 
0

 
86,426

Total revenues
 
2,509,314

 
400,181

 
0

 
2,909,495

 
 
 
 
 
 
 
 
 
Operational expenses (a)
 
2,005,795

 
341,870

 
2,266

 
2,349,931

Depreciation and amortization
 
112,809

 
13,323

 
9,949

 
136,081

General and administrative
 
34,693

 
7,145

 
90,256

 
132,094

Other gains and charges
 
6,412

 
1,052

 
41,760

 
49,224

Total operating costs and expenses
 
2,159,709

 
363,390

 
144,231

 
2,667,330

 
 
 
 
 
 
 
 
 
Operating income
 
$
349,605

 
$
36,791

 
$
(144,231
)
 
$
242,165

 
 
 
 
 
 
 
 
 
Payments for property and equipment
 
$
141,709

 
$
14,284

 
$
5,073

 
$
161,066

____________________________________________________________________
(a)
Operational expenses includes cost of sales, restaurant labor and restaurant expenses.

Reconciliation of operating income to income before provision for income taxes:
 
 
Fiscal Years Ended
 
 
June 29, 2016
 
June 24, 2015
 
June 25, 2014
Operating income
 
$
317,476

 
$
311,202

 
$
242,165

Less interest expense
 
(32,574
)
 
(29,006
)
 
(28,091
)
Plus other, net
 
1,485

 
2,081

 
2,214

Income before provision for income taxes
 
$
286,387

 
$
284,277

 
$
216,288