XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

SEGMENT INFORMATION | 6 Months Ended
--- | ---
Dec. 26, 2018
Segment Reporting [Abstract] |
Segment Reporting | 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 United States 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 include revenues generated by the operation of company-owned restaurants including gift card redemptions. Franchise and other revenues include Royalties and Franchise fees and other revenues. Franchise fees and other revenues include Maggiano’s banquet service charge income, advertising fees, gift card breakage income, service fees and discount costs from third-party gift card sales, digital entertainment revenues, delivery fee income, development and franchise fees, and retail royalty revenues. 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 United States. There were no material transactions amongst our operating segments. Effective the first quarter of fiscal 2019, we transitioned to ASC 606, from the previous Legacy GAAP guidance. Our Consolidated Financial Statements for the second quarter and year-to-date periods of fiscal 2019 reflect the application of ASC 606 guidance using the modified retrospective transition method, while our Consolidated Financial Statements for prior periods were prepared under Legacy GAAP. Please see Note 2 - Revenue Recognition for more details on the adoption of ASC 606. 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, including advertising expenses. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:
| Thirteen Week Period Ended December 26, 2018
| ASC 606
| Chili’s |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 640.6 |  |  | $ | 120.9 |  |  | $ | — |  |  | $ | 761.5 |
Royalties | 13.2 |  |  | — |  |  | — |  |  | 13.2 |
Franchise fees and other revenues | 8.5 |  |  | 7.5 |  |  | — |  |  | 16.0 |
Total revenues | 662.3 |  |  | 128.4 |  |  | — |  |  | 790.7 |
Company restaurant expenses(1) | 567.1 |  |  | 100.1 |  |  | 0.2 |  |  | 667.4 |
Depreciation and amortization | 29.5 |  |  | 3.9 |  |  | 2.7 |  |  | 36.1 |
General and administrative | 9.1 |  |  | 1.5 |  |  | 24.8 |  |  | 35.4 |
Other gains and charges | 1.4 |  |  | — |  |  | 0.8 |  |  | 2.2 |
Total operating costs and expenses | 607.1 |  |  | 105.5 |  |  | 28.5 |  |  | 741.1 |
Operating income (loss) | 55.2 |  |  | 22.9 |  |  | (28.5 | ) |  | 49.6 |
Interest expense | 0.7 |  |  | 0.1 |  |  | 14.6 |  |  | 15.4 |
Other, net | — |  |  | — |  |  | (0.8 | ) |  | (0.8 | )
Income (loss) before provision for income taxes | $ | 54.5 |  |  | $ | 22.8 |  |  | $ | (42.3 | ) |  | $ | 35.0 |
| Thirteen Week Period Ended December 27, 2017
| Legacy GAAP
| Chili’s |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 623.6 |  |  | $ | 119.1 |  |  | $ | — |  |  | $ | 742.7 |
Franchise and other revenues | 16.5 |  |  | 7.2 |  |  | — |  |  | 23.7 |
Total revenues | 640.1 |  |  | 126.3 |  |  | — |  |  | 766.4 |
Company restaurant expenses(1) | 533.9 |  |  | 97.9 |  |  | 0.1 |  |  | 631.9 |
Depreciation and amortization | 31.0 |  |  | 4.0 |  |  | 2.7 |  |  | 37.7 |
General and administrative | 9.3 |  |  | 1.5 |  |  | 22.3 |  |  | 33.1 |
Other gains and charges | 5.9 |  |  | 1.0 |  |  | 2.4 |  |  | 9.3 |
Total operating costs and expenses | 580.1 |  |  | 104.4 |  |  | 27.5 |  |  | 712.0 |
Operating income (loss) | 60.0 |  |  | 21.9 |  |  | (27.5 | ) |  | 54.4 |
Interest expense | — |  |  | — |  |  | 14.3 |  |  | 14.3 |
Other, net | — |  |  | — |  |  | (1.0 | ) |  | (1.0 | )
Income (loss) before provision for income taxes | $ | 60.0 |  |  | $ | 21.9 |  |  | $ | (40.8 | ) |  | $ | 41.1 |
| Twenty-Six Week Period Ended December 26, 2018
| ASC 606
| Chili’s |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 1,280.9 |  |  | $ | 208.9 |  |  | $ | — |  |  | $ | 1,489.8 |
Royalties | 26.1 |  |  | — |  |  | — |  |  | 26.1 |
Franchise fees and other revenues | 17.1 |  |  | 11.5 |  |  | — |  |  | 28.6 |
Total revenues | 1,324.1 |  |  | 220.4 |  |  | — |  |  | 1,544.5 |
Company restaurant expenses (1) | 1,130.2 |  |  | 184.0 |  |  | 0.4 |  |  | 1,314.6 |
Depreciation and amortization | 60.0 |  |  | 7.9 |  |  | 5.2 |  |  | 73.1 |
General and administrative | 17.9 |  |  | 3.2 |  |  | 48.1 |  |  | 69.2 |
Other gains and charges (2) | (10.9 | ) |  | — |  |  | 2.0 |  |  | (8.9 | )
Total operating costs and expenses | 1,197.2 |  |  | 195.1 |  |  | 55.7 |  |  | 1,448.0 |
Operating income (loss) | 126.9 |  |  | 25.3 |  |  | (55.7 | ) |  | 96.5 |
Interest expense | 1.7 |  |  | 0.2 |  |  | 29.1 |  |  | 31.0 |
Other, net | — |  |  | — |  |  | (1.6 | ) |  | (1.6 | )
Income (loss) before provision for income taxes | $ | 125.2 |  |  | $ | 25.1 |  |  | $ | (83.2 | ) |  | $ | 67.1 |
Segment assets (2) | $ | 1,047.8 |  |  | $ | 148.9 |  |  | $ | 98.1 |  |  | $ | 1,294.8 |
Segment goodwill | $ | 125.3 |  |  | $ | 38.4 |  |  | $ | — |  |  | $ | 163.7 |
Payments for property and equipment | $ | 58.8 |  |  | $ | 6.4 |  |  | $ | 13.5 |  |  | $ | 78.7 |
| Twenty-Six Week Period Ended December 27, 2017
| Legacy GAAP
| Chili’s |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 1,251.2 |  |  | $ | 208.4 |  |  | $ | — |  |  | $ | 1,459.6 |
Franchise and other revenues | 34.8 |  |  | 11.4 |  |  | — |  |  | 46.2 |
Total revenues | 1,286.0 |  |  | 219.8 |  |  | — |  |  | 1,505.8 |
Company restaurant expenses(1) | 1,075.3 |  |  | 183.2 |  |  | 0.2 |  |  | 1,258.7 |
Depreciation and amortization | 62.8 |  |  | 8.0 |  |  | 5.4 |  |  | 76.2 |
General and administrative | 18.9 |  |  | 2.8 |  |  | 43.7 |  |  | 65.4 |
Other gains and charges | 18.0 |  |  | 0.8 |  |  | 3.7 |  |  | 22.5 |
Total operating costs and expenses | 1,175.0 |  |  | 194.8 |  |  | 53.0 |  |  | 1,422.8 |
Operating income (loss) | 111.0 |  |  | 25.0 |  |  | (53.0 | ) |  | 83.0 |
Interest expense | — |  |  | — |  |  | 28.2 |  |  | 28.2 |
Other, net | — |  |  | — |  |  | (1.5 | ) |  | (1.5 | )
Income (loss) before provision for income taxes | $ | 111.0 |  |  | $ | 25.0 |  |  | $ | (79.7 | ) |  | $ | 56.3 |
Payments for property and equipment | $ | 40.8 |  |  | $ | 4.2 |  |  | $ | 3.6 |  |  | $ | 48.6 |
(1) | Company restaurant expenses include Cost of sales, Restaurant labor, and Restaurant expenses including advertising expenses. With the adoption of ASC 606, for the thirteen and twenty-six week periods ended December 26, 2018, advertising contributions received from Chili’s franchisees are recorded as Franchise fees and other revenues within Total revenues, which differs from the thirteen and twenty-six week periods
ended December 27, 2017 that includes Chili’s franchise advertising contributions recorded on a net basis within Company restaurant expenses. (2) During the twenty-six week period ended December 26, 2018 we completed sale leaseback transactions of 145 company-owned Chili’s restaurant properties. As part of this transaction, we sold the related restaurant fixed assets totaling $170.9 million, net of accumulated depreciation. Additionally, Chili’s recognized $17.7 million of gain on the sale, including a certain portion of the deferred gain, net of related transaction costs incurred in Other (gains) and charges in the Consolidated Statements of Comprehensive Income. Please see Note 3 - Sale Leaseback Transactions for further details.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration