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 December 27, 2017
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	623,593	$	119,095	$	—		$	742,688
Franchise and other revenues	16,523		7,189		—			23,712
Total revenues	640,116		126,284		—			766,400

Company restaurant expenses (a)	533,936		97,888		124			631,948
Depreciation and amortization	31,003		4,022		2,630			37,655
General and administrative	9,264		1,469		22,355			33,088
Other gains and charges	5,920		983		2,358			9,261
Total operating costs and expenses	580,123		104,362		27,467			711,952

Operating income (loss)	$	59,993	$	21,922	$	(27,467	)	$	54,448



	Thirteen Week Period Ended December 28, 2016
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	632,085	$	116,624	$	—		$	748,709
Franchise and other revenues	15,278		7,056		—			22,334
Total revenues	647,363		123,680		—			771,043

Company restaurant expenses (a)	537,170		98,098		92			635,360
Depreciation and amortization	32,643		4,055		2,607			39,305
General and administrative	9,414		1,688		22,444			33,546
Other gains and charges	2,943		12		(1,649		)	1,306
Total operating costs and expenses	582,170		103,853		23,494			709,517

Operating income (loss)	$	65,193	$	19,827	$	(23,494	)	$	61,526



	Twenty-Six Week Period Ended December 27, 2017
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	1,251,197	$	208,433	$	—		$	1,459,630
Franchise and other revenues	34,788		11,372		—			46,160
Total revenues	1,285,985		219,805		—			1,505,790

Company restaurant expenses (a)	1,075,282		183,196		271			1,258,749
Depreciation and amortization	62,807		8,072		5,296			76,175
General and administrative	18,842		2,782		43,822			65,446
Other gains and charges	18,069		771		3,575			22,415
Total operating costs and expenses	1,175,000		194,821		52,964			1,422,785

Operating income (loss)	$	110,985	$	24,984	$	(52,964	)	$	83,005

Segment assets	$	1,136,225	$	155,525	$	108,795		$	1,400,545
Payments for property and equipment	40,785		4,208		3,566			48,559



	Twenty-Six Week Period Ended December 28, 2016
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	1,280,728	$	205,391	$	—		$	1,486,119
Franchise and other revenues	32,193		11,223		—			43,416
Total revenues	1,312,921		216,614		—			1,529,535

Company restaurant expenses (a)	1,092,740		181,683		452			1,274,875
Depreciation and amortization	65,244		7,941		5,006			78,191
General and administrative	19,344		3,212		43,527			66,083
Other gains and charges	4,869		746		1,769			7,384
Total operating costs and expenses	1,182,197		193,582		50,754			1,426,533

Operating income (loss)	$	130,724	$	23,032	$	(50,754	)	$	103,002

Payments for property and equipment	$	45,618	$	8,116	$	6,321		$	60,055

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(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						Twenty-Six Week Periods Ended
	December 27, 2017			December 28, 2016			December 27, 2017			December 28, 2016
Operating income	$	54,448		$	61,526		$	83,005		$	103,002
Less interest expense	(14,321		)	(13,641		)	(28,205		)	(22,450		)
Plus other, net	1,015			383			1,491			682
Income before provision for income taxes	$	41,142		$	48,268		$	56,291		$	81,234