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Segment Reporting:
 12 Months Ended
Dec. 27, 2014
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, long-term investments, current and 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 27, 2014

 

December 28, 2013

 

December 29, 2012

 

Revenue:

 

 

 

 

 

 

 

Franchising

 

$
44,931,400 

 

$
41,207,100 

 

$
38,731,300 

 

Leasing

 
16,247,300 

 
14,524,100 

 
13,211,800 

 

Total revenue

 

$
61,178,700 

 

$
55,731,200 

 

$
51,943,100 

 

 

 

 

 

 

 

 

 

Reconciliation to operating income:

 

 

 

 

 

 

 

Franchising segment contribution

 

$
23,631,800 

 

$
21,867,700 

 

$
20,705,100 

 

Leasing segment contribution

 
9,427,500 

 
7,912,300 

 
6,594,000 

 

Total operating income

 

$
33,059,300 

 

$
29,780,000 

 

$
27,299,100 

 

 

 

 

 

 

 

 

 

Depreciation:

 

 

 

 

 

 

 

Franchising

 

$
325,100 

 

$
339,600 

 

$
337,200 

 

Leasing

 
86,900 

 
91,900 

 
96,100 

 

Total depreciation

 

$
412,000 

 

$
431,500 

 

$
433,300 

 

 

 

 

As of

 

 

 

December 27, 2014

 

December 28, 2013

 

Identifiable assets:

 

 

 

 

 

Franchising

 

$
3,258,300 

 

$
7,407,400 

 

Leasing

 
44,870,800 

 
42,490,800 

 

Unallocated

 
6,598,700 

 
3,137,900 

 

Total

 

$
54,727,800 

 

$
53,036,100 

 

 

Revenues are all generated from United States operations other than franchising revenues from Canadian operations of $2.9 million, $2.7 million and $2.5 million in each of fiscal 2014, 2013 and 2012, respectively.  All long-lived assets are located within the United States.