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Segment Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting  
Segment Reporting

12.          Segment Reporting

 

The Company currently has two reportable business segments, franchising and leasing.  The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise.  The leasing segment includes (i) Winmark Capital Corporation, a middle-market equipment leasing business and (ii) Wirth Business Credit, Inc., a small-ticket financing business.  Segment reporting is intended to give financial statement users a better view of the how the Company manages and evaluates its businesses.  The Company’s internal management reporting is the basis for the information disclosed for its business segments and includes allocation of shared-service costs.  Segment assets are those that are directly used in or identified with segment operations, including cash, accounts receivable, prepaids, inventory, property and equipment and investment in leasing operations.  Unallocated assets include corporate cash and cash equivalents, marketable securities, current and long-term investments, deferred tax amounts and other corporate assets.  Inter-segment balances and transactions have been eliminated.  The following tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income:

 

 

 

Year Ended

 

 

 

December 31, 2011

 

December 25, 2010

 

Revenue:

 

 

 

 

 

Franchising

 

$

34,923,300

 

$

31,227,300

 

Leasing

 

16,411,700

 

9,976,300

 

Total revenue

 

$

51,335,000

 

$

41,203,600

 

 

 

 

 

 

 

Reconciliation to operating income:

 

 

 

 

 

Franchising segment contribution

 

$

18,389,300

 

$

15,434,600

 

Leasing segment contribution

 

6,458,300

 

3,104,400

 

Total operating income

 

$

24,847,600

 

$

18,539,000

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

Franchising

 

$

371,800

 

$

361,900

 

Leasing

 

107,300

 

104,300

 

Total depreciation and amortization

 

$

479,100

 

$

466,200

 

 

 

 

As of

 

 

 

December 31, 2011

 

December 25, 2010

 

Identifiable assets:

 

 

 

 

 

Franchising

 

$

7,753,200

 

$

2,788,000

 

Leasing

 

33,374,000

 

32,962,300

 

Unallocated

 

6,618,500

 

6,371,700

 

Total

 

$

47,745,700

 

$

42,122,000

 

 

Revenues are all generated from United States operations other than franchising revenues from Canadian operations of $2.5 million and $2.2 million in fiscal 2011 and 2010, respectively.  All long-lived assets are located within the United States.