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Segment Information | 9 Months Ended
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Sep. 29, 2019
Segment Information |
Segment Information |
15. | Segment Information
​ We have four reportable segments: domestic Company-owned restaurants, North America commissaries, North America franchising and international operations. The domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is defined as contiguous United States) Company-owned restaurants and derives its revenues principally from retail sales of pizza and side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. The North America commissary segment consists of the operations of our regional dough production and product distribution centers and derives its revenues principally from the sale and distribution of food and paper products to domestic Company-owned and franchised restaurants in the United States and Canada. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and collection of royalties from our franchisees located in the United States and Canada. The international segment principally consists of distribution sales to franchised Papa John’s restaurants located in the United Kingdom and our franchise sales, marketing and other support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees. International franchisees are defined as all franchise operations outside of the United States and Canada. All other business units that do not meet the quantitative thresholds for determining reportable segments, which are not operating segments, we refer to as “all other,” which consists of operations that derive revenues from the sale, principally to Company-owned and franchised restaurants, of printing and promotional items, franchise contributions to North America marketing funds including PJMF and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. ​ Generally, we evaluate performance and allocate resources based on profit or loss from operations before income taxes and intercompany eliminations. Certain administrative and capital costs are allocated to segments based upon predetermined rates or actual estimated resource usage. We account for intercompany sales and transfers as if the sales or transfers were to third parties and eliminate the activity in consolidation. ​ Our reportable segments are business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. No single external customer accounted for 10% or more of our consolidated revenues. ​ ​ Our segment information is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | ​ | September 29, | ​ | September 30, | ​ | September 29, | ​ | September 30,
(In thousands) | ​ |  | 2019 |  | 2018 |  | 2019 |  | 2018
Revenues: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | ​ | $ | 165,135 | ​ | $ | 158,285 | ​ | $ | 490,594 | ​ | $ | 529,906
North America commissaries | ​ | ​ |  | 154,703 | ​ |  | 146,240 | ​ |  | 450,735 | ​ |  | 461,408
North America franchising | ​ | ​ |  | 15,924 | ​ |  | 12,806 | ​ |  | 53,215 | ​ |  | 61,524
International | ​ | ​ |  | 29,888 | ​ |  | 30,793 | ​ |  | 92,808 | ​ |  | 100,977
All others | ​ | ​ |  | 38,056 | ​ |  | 37,107 | ​ |  | 114,382 | ​ |  | 111,490
Total revenues | ​ | ​ | $ | 403,706 | ​ | $ | 385,231 | ​ | $ | 1,201,734 | ​ | $ | 1,265,305
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Intersegment revenues: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America commissaries | ​ | ​ | $ | 47,599 | ​ | $ | 46,023 | ​ | $ | 140,116 | ​ | $ | 153,389
North America franchising | ​ | ​ |  | 612 | ​ |  | 464 | ​ |  | 2,072 | ​ |  | 2,499
International | ​ | ​ |  | — | ​ |  | 70 | ​ |  | 191 | ​ |  | 213
All others | ​ | ​ |  | 19,362 | ​ |  | 14,122 | ​ |  | 52,758 | ​ |  | 46,599
Total intersegment revenues | ​ | ​ | $ | 67,573 | ​ | $ | 60,679 | ​ | $ | 195,137 | ​ | $ | 202,700
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income (loss) before income taxes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants (1) | ​ | ​ | $ | 9,162 | ​ | $ | (183) | ​ | $ | 21,471 | ​ | $ | 15,350
North America commissaries | ​ | ​ |  | 6,790 | ​ |  | 6,195 | ​ |  | 22,094 | ​ |  | 23,535
North America franchising (2) | ​ | ​ |  | 14,092 | ​ |  | 9,394 | ​ |  | 47,693 | ​ |  | 53,133
International (3) | ​ | ​ |  | 4,195 | ​ |  | 4,519 | ​ |  | 14,915 | ​ |  | 10,334
All others | ​ | ​ |  | (866) | ​ |  | (2,776) | ​ |  | (2,581) | ​ |  | (5,304)
Unallocated corporate expenses (4) | ​ | ​ |  | (32,329) | ​ |  | (37,046) | ​ |  | (92,685) | ​ |  | (74,500)
Elimination of intersegment (profits) | ​ | ​ |  | (366) | ​ |  | (331) | ​ |  | (1,037) | ​ |  | (599)
Total income (loss) before income taxes | ​ | ​ | $ | 678 | ​ | $ | (20,228) | ​ | $ | 9,870 | ​ | $ | 21,949
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | ​ | $ | 221,320 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America commissaries | ​ | ​ | ​ | 141,105 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
International | ​ | ​ | ​ | 15,737 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
All others | ​ | ​ | ​ | 80,980 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Unallocated corporate assets | ​ | ​ | ​ | 208,274 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accumulated depreciation and amortization | ​ | ​ | ​ | (455,103) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment, net | ​ | ​ | $ | 212,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ ​
(1) | Includes refranchising gains of $1.7 million and $1.9 million for the three and nine months ended September 29, 2019, respectively.
(2) | Includes Special charges of $6.4 million and $14.0 million in North America franchising for the three and nine months ended September 29, 2019, respectively. Includes Special charges of $9.9 million in North America franchising for the three and nine months ended September 30, 2018.
(3) | Includes refranchising losses of $1.9 million for the nine months ended September 30, 2018.
(4)Includes Special charges of $7.8 million and $21.4 million in Unallocated corporate expenses for the three and nine months ended September 29, 2019, respectively. Includes Special charges of $14.9 million in Unallocated corporate expenses for the three and nine months ended September 30, 2018. ​ ​ ​ ​ ​ Disaggregation of Revenue ​ In the following tables, revenues are disaggregated by major product line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Three Months Ended September 29, 2019
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 165,135 | $ | - | $ | - | $ | - | $ | - | $ | 165,135
Commissary sales | ​ | - | ​ | 202,302 | ​ | - | ​ | 15,195 | ​ | - | ​ | 217,497
Franchise royalties and fees | ​ | - | ​ | - | ​ | 16,536 | ​ | 9,484 | ​ | - | ​ | 26,020
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 5,209 | ​ | 57,418 | ​ | 62,627
Eliminations | ​ | - | ​ | (47,599) | ​ | (612) | ​ | - | ​ | (19,362) | ​ | (67,573)
Total segment revenues | $ | 165,135 | $ | 154,703 | $ | 15,924 | $ | 29,888 | $ | 38,056 | $ | 403,706
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (5,209) | ​ | 5,209 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | - | ​ | - | ​ | -
Total revenues | $ | 165,135 | $ | 154,703 | $ | 15,924 | $ | 24,679 | $ | 43,265 | $ | 403,706
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Three Months Ended September 30, 2018
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 158,285 | $ | - | $ | - | $ | - | $ | - | $ | 158,285
Commissary sales | ​ | - | ​ | 192,263 | ​ | - | ​ | 16,512 | ​ | - | ​ | 208,775
Franchise royalties and fees | ​ | - | ​ | - | ​ | 13,270 | ​ | 9,141 | ​ | - | ​ | 22,411
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 5,210 | ​ | 51,229 | ​ | 56,439
Eliminations | ​ | - | ​ | (46,023) | ​ | (464) | ​ | (70) | ​ | (14,122) | ​ | (60,679)
Total segment revenues | $ | 158,285 | $ | 146,240 | $ | 12,806 | $ | 30,793 | $ | 37,107 | $ | 385,231
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (5,210) | ​ | 5,210 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | 70 | ​ | (70) | ​ | -
Total revenues | $ | 158,285 | $ | 146,240 | $ | 12,806 | $ | 25,653 | $ | 42,247 | $ | 385,231
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Nine Months Ended September 29, 2019
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 490,594 | $ | - | $ | - | $ | - | $ | - | $ | 490,594
Commissary sales | ​ | - | ​ | 590,851 | ​ | - | ​ | 47,009 | ​ | - | ​ | 637,860
Franchise royalties and fees | ​ | - | ​ | - | ​ | 55,287 | ​ | 28,834 | ​ | - | ​ | 84,121
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 17,156 | ​ | 167,140 | ​ | 184,296
Eliminations | ​ | - | ​ | (140,116) | ​ | (2,072) | ​ | (191) | ​ | (52,758) | ​ | (195,137)
Total segment revenues | $ | 490,594 | $ | 450,735 | $ | 53,215 | $ | 92,808 | $ | 114,382 | $ | 1,201,734
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (17,156) | ​ | 17,156 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | 191 | ​ | (191) | ​ | -
Total revenues | $ | 490,594 | $ | 450,735 | $ | 53,215 | $ | 75,843 | $ | 131,347 | $ | 1,201,734
​ | ​ | ​ | ​ | ​ | ​ | ​ ​ ​ ​ ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Nine Months Ended September 30, 2018
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 529,906 | $ | - | $ | - | $ | 6,237 | $ | - | $ | 536,143
Commissary sales | ​ | - | ​ | 614,797 | ​ | - | ​ | 51,490 | ​ | - | ​ | 666,287
Franchise royalties and fees | ​ | - | ​ | - | ​ | 64,023 | ​ | 27,109 | ​ | - | ​ | 91,132
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 16,354 | ​ | 158,089 | ​ | 174,443
Eliminations | ​ | - | ​ | (153,389) | ​ | (2,499) | ​ | (213) | ​ | (46,599) | ​ | (202,700)
Total segment revenues | $ | 529,906 | $ | 461,408 | $ | 61,524 | $ | 100,977 | $ | 111,490 | $ | 1,265,305
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (16,354) | ​ | 16,354 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | 213 | ​ | (213) | ​ | -
Total revenues | $ | 529,906 | $ | 461,408 | $ | 61,524 | $ | 84,836 | $ | 127,631 | $ | 1,265,305
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) | Other revenues as reported in the Condensed Consolidated Statements of Operations include $5.2 million and $17.0 million of revenue for the three and nine months ended September 29, 2019, respectively, and $5.1 million and $16.1 million for the three and nine months ended September 30, 2018, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to income before income taxes but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.

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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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