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SEGMENT INFORMATION
 9 Months Ended
Mar. 29, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING
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, digital entertainment 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 operating segments are predominantly in the U.S. There were no material transactions amongst our operating 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. Company restaurant 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):
 
 
Thirteen Week Period Ended March 29, 2017
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
689,662

 
$
100,962

 
$
0

 
$
790,624

Franchise and other revenues
 
15,224

 
4,793

 
0

 
20,017

Total revenues
 
704,886

 
105,755

 
0

 
810,641

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
565,327

 
90,454

 
126

 
655,907

Depreciation and amortization
 
32,386

 
4,078

 
2,871

 
39,335

General and administrative
 
8,771

 
1,624

 
25,536

 
35,931

Other gains and charges
 
4,233

 
0

 
2,367

 
6,600

Total operating costs and expenses
 
610,717

 
96,156

 
30,900

 
737,773

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
94,169

 
$
9,599

 
$
(30,900
)
 
$
72,868

 
 
Thirteen Week Period Ended March 23, 2016
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
703,545

 
$
101,600

 
$
0

 
$
805,145

Franchise and other revenues
 
15,100

 
4,394

 
0

 
19,494

Total revenues
 
718,645

 
105,994

 
0

 
824,639

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
574,189

 
90,957

 
133

 
665,279

Depreciation and amortization
 
32,461

 
3,889

 
2,700

 
39,050

General and administrative
 
7,780

 
1,312

 
21,078

 
30,170

Other gains and charges
 
(462
)
 
3,064

 
1,262

 
3,864

Total operating costs and expenses
 
613,968

 
99,222

 
25,173

 
738,363

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
104,677

 
$
6,772

 
$
(25,173
)
 
$
86,276




 
 
Thirty-Nine Week Period Ended March 29, 2017
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
1,970,390

 
$
306,353

 
$
0

 
$
2,276,743

Franchise and other revenues
 
47,417

 
16,016

 
0

 
63,433

Total revenues
 
2,017,807

 
322,369

 
0

 
2,340,176

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
1,658,067

 
272,137

 
578

 
1,930,782

Depreciation and amortization
 
97,630

 
12,019

 
7,877

 
117,526

General and administrative
 
28,115

 
4,836

 
69,063

 
102,014

Other gains and charges
 
9,102

 
746

 
4,136

 
13,984

Total operating costs and expenses
 
1,792,914

 
289,738

 
81,654

 
2,164,306

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
224,893

 
$
32,631

 
$
(81,654
)
 
$
175,870

 
 
 
 
 
 
 
 
 
Segment assets
 
$
1,170,685

 
$
163,059

 
$
69,334

 
$
1,403,078

Equity method investment
 
9,641

 
0

 
0

 
$
9,641

Payments for property and equipment
 
60,770

 
10,673

 
8,287

 
$
79,730

 
 
Thirty-Nine Week Period Ended March 23, 2016
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
2,007,600

 
$
303,698

 
$
0

 
$
2,311,298

Franchise and other revenues
 
48,245

 
16,265

 
0

 
64,510

Total revenues
 
2,055,845

 
319,963

 
0

 
2,375,808

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
1,668,524

 
271,617

 
(454
)
 
1,939,687

Depreciation and amortization
 
98,507

 
11,196

 
7,632

 
117,335

General and administrative
 
26,494

 
4,638

 
64,058

 
95,190

Other gains and charges
 
(1,570
)
 
3,230

 
3,794

 
5,454

Total operating costs and expenses
 
1,791,955

 
290,681

 
75,030

 
2,157,666

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
263,890

 
$
29,282

 
$
(75,030
)
 
$
218,142

 
 
 
 
 
 
 
 
 
Segment assets
 
$
1,224,316

 
$
161,324

 
$
100,075

 
$
1,485,715

Equity method investment
 
10,360

 
0

 
0

 
10,360

Payments for property and equipment
 
52,687

 
13,584

 
9,819

 
76,090


____________________________________________________________________
(a)
Company restaurant expenses includes cost of sales, restaurant labor and restaurant expenses, including advertising

Reconciliation of operating income to income before provision for income taxes:
 
Thirteen Week Periods Ended
 
Thirty-Nine Week Periods Ended
 
March 29, 2017
 
March 23, 2016
 
March 29, 2017
 
March 23, 2016
Operating income
$
72,868

 
$
86,276

 
$
175,870

 
$
218,142

Less interest expense
(13,658
)
 
(8,403
)
 
(36,108
)
 
(24,077
)
Plus other, net
402

 
277

 
1,084

 
1,110

Income before provision for income taxes
$
59,612

 
$
78,150

 
$
140,846

 
$
195,175