XML 21 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
SEGMENT INFORMATION
 3 Months Ended
Sep. 27, 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 operating 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 September 27, 2017
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
627,604

 
$
89,338

 
$
—

 
$
716,942

Franchise and other revenues
 
18,265

 
4,183

 
—

 
22,448

Total revenues
 
645,869

 
93,521

 
—

 
739,390

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
541,346

 
85,308

 
147

 
626,801

Depreciation and amortization
 
31,804

 
4,050

 
2,666

 
38,520

General and administrative
 
9,578

 
1,313

 
21,467

 
32,358

Other gains and charges
 
12,149

 
(212
)
 
1,217

 
13,154

Total operating costs and expenses
 
594,877

 
90,459

 
25,497

 
710,833

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
50,992

 
$
3,062

 
$
(25,497
)
 
$
28,557

 
 
 
 
 
 
 
 
 
Segment assets
 
$
1,141,870

 
$
157,505

 
$
69,250

 
$
1,368,625

Equity method investment
 
10,528

 
—

 
—

 
10,528

Payments for property and equipment
 
18,619

 
2,456

 
1,385

 
22,460


 
 
Thirteen Week Period Ended September 28, 2016
 
 
Chili's
 
Maggiano's
 
Other
 
Consolidated
Company sales
 
$
648,643

 
$
88,767

 
$
—

 
$
737,410

Franchise and other revenues
 
16,915

 
4,167

 
—

 
21,082

Total revenues
 
665,558

 
92,934

 
—

 
758,492

 
 
 
 
 
 
 
 
 
Company restaurant expenses (a)
 
555,570

 
83,585

 
360

 
639,515

Depreciation and amortization
 
32,601

 
3,886

 
2,399

 
38,886

General and administrative
 
9,930

 
1,524

 
21,083

 
32,537

Other gains and charges
 
1,926

 
734

 
3,418

 
6,078

Total operating costs and expenses
 
600,027

 
89,729

 
27,260

 
717,016

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
65,531

 
$
3,205

 
$
(27,260
)
 
$
41,476

 
 
 
 
 
 
 
 
 
Payments for property and equipment
 
18,829

 
4,896

 
3,386

 
27,111


____________________________________________________________________
(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
 
September 27, 2017
 
September 28, 2016
Operating income
$
28,557

 
$
41,476

Less interest expense
(13,884
)
 
(8,809
)
Plus other, net
476

 
299

Income before provision for income taxes
$
15,149

 
$
32,966