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SEGMENT INFORMATION
 3 Months Ended
Sep. 25, 2019
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 businesses. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants as well as the results from our domestic franchise business.
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 advertising fees, Maggiano’s banquet service charge income, gift card breakage, digital entertainment revenues, gift card equalization, delivery fee income, franchise and development fees, retail royalty revenues, merchandise income, and gift card discount costs from third-party gift card sales. 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.
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 September 25, 2019
 
Chili’s(1)
 
Maggiano’s
 
Other
 
Consolidated
Company sales
$
677.5

 
$
86.4

 
$
—

 
$
763.9

Royalties
11.8

 
0.1

 
—

 
11.9

Franchise fees and other revenues
6.3

 
3.9

 
—

 
10.2

Franchise and other revenues
18.1

 
4.0

 
—

 
22.1

Total revenues
695.6

 
90.4

 
—

 
786.0

 
 
 
 
 
 
 
 
Company restaurant expenses(2)
596.3

 
83.1

 
0.2

 
679.6

Depreciation and amortization
30.7

 
4.0

 
3.4

 
38.1

General and administrative
9.1

 
1.7

 
27.2

 
38.0

Other (gains) and charges
(1.6
)
 
0.1

 
0.6

 
(0.9
)
Total operating costs and expenses
634.5

 
88.9

 
31.4

 
754.8

Operating income (loss)
61.1

 
1.5

 
(31.4
)
 
31.2

Interest expenses
0.9

 
—

 
14.0

 
14.9

Other, net
(0.2
)
 
—

 
(0.3
)
 
(0.5
)
Income (loss) before provision for income taxes
$
60.4

 
$
1.5

 
$
(45.1
)
 
$
16.8

 
 
 
 
 
 
 
 
Segment assets(3)
$
2,142.3

 
$
251.8

 
$
96.9

 
$
2,491.0

Segment goodwill
151.3

 
38.4

 
—

 
189.7

Payments for property and equipment
16.1

 
2.3

 
2.1

 
20.5

 
Thirteen Week Period Ended September 26, 2018
 
Chili’s
 
Maggiano’s
 
Other
 
Consolidated
Company sales
$
640.3

 
$
88.0

 
$
—

 
$
728.3

Royalties
12.9

 
—

 
—

 
12.9

Franchise fees and other revenues
8.6

 
4.0

 
—

 
12.6

Franchise and other revenues
21.5

 
4.0

 
—

 
25.5

Total revenues
661.8

 
92.0

 
—

 
753.8

 
 
 
 
 
 
 
 
Company restaurant expenses(2)
563.1

 
83.9

 
0.2

 
647.2

Depreciation and amortization
30.5

 
4.0

 
2.5

 
37.0

General and administrative
8.8

 
1.7

 
23.3

 
33.8

Other (gains) and charges(4)
(12.3
)
 
—

 
1.2

 
(11.1
)
Total operating costs and expenses
590.1

 
89.6

 
27.2

 
706.9

Operating income (loss)
71.7

 
2.4

 
(27.2
)
 
46.9

Interest expenses
1.0

 
0.1

 
14.5

 
15.6

Other, net
—

 
—

 
(0.8
)
 
(0.8
)
Income (loss) before provision for income taxes
$
70.7

 
$
2.3

 
$
(40.9
)
 
$
32.1

 
 
 
 
 
 
 
 
Payments for property and equipment
$
22.7

 
$
3.2

 
$
5.3

 
$
31.2


(1) 
Chili’s segment information for fiscal 2020 includes the results of operations and preliminary fair value of assets related to the 116 restaurants acquired effective September 5, 2019. Refer to Note 2 - Chili’s Restaurant Acquisition for further details.
(2) 
Company restaurant expenses include Cost of sales, Restaurant labor, and Restaurant expenses including advertising expenses.
(3) 
Segment assets for fiscal 2020 are presented in accordance with the newly adopted ASC 842 that now include Operating lease assets, refer to Note 3 - Leases for further details.
(4) 
During the thirteen week period ended September 26, 2018, we completed sale leaseback transactions of 141 company-owned Chili’s restaurant properties. Chili’s recognized a $13.3 million 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 (Unaudited). Refer to Note 3 - Leases for further details.