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SEGMENT INFORMATION | 6 Months Ended
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Dec. 25, 2019
Segment Reporting [Abstract] |
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 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 in the United States 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 Maggiano’s banquet service charge income, advertising fees, gift card breakage, gift card equalization, gift card discount costs from third-party gift card sales, digital entertainment revenues, delivery fee income, franchise and development fees, retail royalty revenues, and merchandise 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 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 of sales, 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 25, 2019
| Chili’s(1) |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 728.4 |  |  | $ | 119.1 |  |  | $ | — |  |  | $ | 847.5 |
Royalties | 9.9 |  |  | — |  |  | — |  |  | 9.9 |
Franchise fees and other revenues | 4.8 |  |  | 7.1 |  |  | — |  |  | 11.9 |
Franchise and other revenues | 14.7 |  |  | 7.1 |  |  | — |  |  | 21.8 |
Total revenues | 743.1 |  |  | 126.2 |  |  | — |  |  | 869.3 |
Company restaurant expenses | 640.3 |  |  | 99.2 |  |  | 0.1 |  |  | 739.6 |
Depreciation and amortization | 32.1 |  |  | 4.0 |  |  | 3.2 |  |  | 39.3 |
General and administrative | 8.5 |  |  | 1.5 |  |  | 24.6 |  |  | 34.6 |
Other (gains) and charges | 10.6 |  |  | — |  |  | 1.7 |  |  | 12.3 |
Total operating costs and expenses | 691.5 |  |  | 104.7 |  |  | 29.6 |  |  | 825.8 |
Operating income (loss) | 51.6 |  |  | 21.5 |  |  | (29.6 | ) |  | 43.5 |
Interest expenses | 1.1 |  |  | — |  |  | 13.9 |  |  | 15.0 |
Other (income), net | (0.1 | ) |  | — |  |  | (0.4 | ) |  | (0.5 | )
Income (loss) before provision for income taxes | $ | 50.6 |  |  | $ | 21.5 |  |  | $ | (43.1 | ) |  | $ | 29.0 |
| Thirteen Week Period Ended December 26, 2018
| 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 |
Franchise and other revenues | 21.7 |  |  | 7.5 |  |  | — |  |  | 29.2 |
Total revenues | 662.3 |  |  | 128.4 |  |  | — |  |  | 790.7 |
Company restaurant expenses | 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 expenses | 0.7 |  |  | 0.1 |  |  | 14.6 |  |  | 15.4 |
Other (income), net | — |  |  | — |  |  | (0.8 | ) |  | (0.8 | )
Income (loss) before provision for income taxes | $ | 54.5 |  |  | $ | 22.8 |  |  | $ | (42.3 | ) |  | $ | 35.0 |
| Twenty-Six Week Period Ended December 25, 2019
| Chili’s(1) |  | Maggiano’s |  | Other |  | Consolidated
Company sales | $ | 1,405.9 |  |  | $ | 205.5 |  |  | $ | — |  |  | $ | 1,611.4 |
Royalties | 21.7 |  |  | 0.1 |  |  | — |  |  | 21.8 |
Franchise fees and other revenues | 11.1 |  |  | 11.0 |  |  | — |  |  | 22.1 |
Franchise and other revenues | 32.8 |  |  | 11.1 |  |  | — |  |  | 43.9 |
Total revenues | 1,438.7 |  |  | 216.6 |  |  | — |  |  | 1,655.3 |
Company restaurant expenses | 1,236.6 |  |  | 182.3 |  |  | 0.3 |  |  | 1,419.2 |
Depreciation and amortization | 62.8 |  |  | 8.0 |  |  | 6.6 |  |  | 77.4 |
General and administrative | 17.6 |  |  | 3.2 |  |  | 51.8 |  |  | 72.6 |
Other (gains) and charges | 9.0 |  |  | 0.1 |  |  | 2.3 |  |  | 11.4 |
Total operating costs and expenses | 1,326.0 |  |  | 193.6 |  |  | 61.0 |  |  | 1,580.6 |
Operating income (loss) | 112.7 |  |  | 23.0 |  |  | (61.0 | ) |  | 74.7 |
Interest expenses | 2.0 |  |  | — |  |  | 27.9 |  |  | 29.9 |
Other (income), net | (0.3 | ) |  | — |  |  | (0.7 | ) |  | (1.0 | )
Income (loss) before provision for income taxes | $ | 111.0 |  |  | $ | 23.0 |  |  | $ | (88.2 | ) |  | $ | 45.8 |
Segment assets(2) | $ | 2,114.1 |  |  | $ | 255.9 |  |  | $ | 133.7 |  |  | $ | 2,503.7 |
Segment goodwill | 151.2 |  |  | 38.4 |  |  | — |  |  | 189.6 |
Payments for property and equipment | 42.4 |  |  | 4.2 |  |  | 4.8 |  |  | 51.4 |
| Twenty-Six Week Period Ended December 26, 2018
| 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 |
Franchise and other revenues | 43.2 |  |  | 11.5 |  |  | — |  |  | 54.7 |
Total revenues | 1,324.1 |  |  | 220.4 |  |  | — |  |  | 1,544.5 |
Company restaurant expenses | 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(3) | (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 expenses | 1.7 |  |  | 0.2 |  |  | 29.1 |  |  | 31.0 |
Other (income), net | — |  |  | — |  |  | (1.6 | ) |  | (1.6 | )
Income (loss) before provision for income taxes | $ | 125.2 |  |  | $ | 25.1 |  |  | $ | (83.2 | ) |  | $ | 67.1 |
Payments for property and equipment | $ | 58.8 |  |  | $ | 6.4 |  |  | $ | 13.5 |  |  | $ | 78.7 |
(1) | Chili’s segment information for fiscal 2020 includes the results of operations and preliminary fair value of assets related to the 116 restaurants since the September 5, 2019 acquisition date. Refer to Note 2 - Chili’s Restaurant Acquisition for further details.
(2) | 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.
(3) During the twenty-six week period ended December 26, 2018, we completed sale leaseback transactions of 145 Company-owned Chili’s restaurant properties. Chili’s recognized a $17.7 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.

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- 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
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