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Segment Information | 12 Months Ended
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Dec. 29, 2019
Segment Information |
Segment Information | ​ 25. 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 and 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 marketing funds 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 income (loss) 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: ​
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(In thousands) | ​ | 2019 | ​ | 2018 | ​ | 2017
Revenues: | ​ | ​ | ​ | ​ | (Note) | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | $ | 652,053 | ​ | $ | 692,380 | ​ | $ | 816,718
North America commissaries | ​ |  | 612,652 | ​ |  | 609,866 | ​ |  | 673,712
North America franchising | ​ |  | 71,828 | ​ |  | 79,293 | ​ |  | 106,729
International | ​ |  | 126,077 | ​ |  | 131,268 | ​ |  | 126,285
All others | ​ |  | 156,638 | ​ |  | 150,064 | ​ |  | 59,915
Total revenues | ​ | $ | 1,619,248 | ​ | $ | 1,662,871 | ​ | $ | 1,783,359
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Intersegment revenues: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America commissaries | ​ | $ | 187,073 | ​ | $ | 201,325 | ​ | $ | 244,699
North America franchising | ​ |  | 2,782 | ​ |  | 2,965 | ​ |  | 3,342
International | ​ |  | 191 | ​ |  | 283 | ​ |  | 273
All others | ​ |  | 88,286 | ​ |  | 72,066 | ​ |  | 16,715
Total intersegment revenues | ​ | $ | 278,332 | ​ | $ | 276,639 | ​ | $ | 265,029
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Depreciation and amortization: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | $ | 12,883 | ​ | $ | 15,411 | ​ | $ | 15,484
North America commissaries | ​ |  | 8,131 | ​ |  | 7,397 | ​ |  | 6,897
International | ​ |  | 1,722 | ​ |  | 1,696 | ​ |  | 2,018
All others | ​ |  | 10,738 | ​ |  | 8,513 | ​ |  | 5,276
Unallocated corporate expenses | ​ |  | 13,807 | ​ |  | 13,386 | ​ |  | 13,993
Total depreciation and amortization | ​ | $ | 47,281 | ​ | $ | 46,403 | ​ | $ | 43,668
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income (loss) before income taxes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants (1) | ​ | $ | 33,957 | ​ | $ | 18,988 | ​ | $ | 47,548
North America commissaries (2) | ​ |  | 30,439 | ​ |  | 27,961 | ​ |  | 47,844
North America franchising (3) | ​ |  | 64,362 | ​ |  | 70,732 | ​ |  | 96,298
International (4) | ​ |  | 19,110 | ​ |  | 14,399 | ​ |  | 15,888
All others (2) | ​ |  | (2,500) | ​ |  | (6,082) | ​ |  | (179)
Unallocated corporate expenses (2)(5) | ​ |  | (139,355) | ​ |  | (118,296) | ​ |  | (66,099)
Elimination of intersegment (profits) | ​ |  | (967) | ​ |  | (1,005) | ​ |  | (958)
Total income before income taxes | ​ | $ | 5,046 | ​ | $ | 6,697 | ​ | $ | 140,342
Note: Fiscal year 2018 has been restated to reflect the consolidation of Papa John’s Marketing Fund, Inc. See Note 2 under the heading “Restatement of Previously Issued Consolidated Financial Statements for Immaterial Error Correction” for more details. ​
(1) | Includes $4.7 million and $1.6 million of refranchising gains/(losses), net in 2019 and 2018, respectively. See Note 12 for additional information.
(2)The Company refined its overhead allocation process in 2018 resulting in transfers of expenses from Unallocated corporate expenses of $13.2 million to other segments, primarily North America commissaries of $7.9 million and All others of $3.5 million for the year ended December 30, 2018.
(3) | Includes Special charges of $19.1 million and $15.4 million for the years ended December 29, 2019 and December 30, 2018, respectively. See Note 19 for additional information.
(4) | Includes a $1.9 million net loss associated with refranchising in 2018, and a $1.7 million impairment loss in 2017. See Note 12 for additional information.
(5) | Includes Special charges of $41.3 million and $35.3 million for the years ended December 29, 2019 and December 30, 2018, respectively. See Note 19 for additional information.
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(In thousands) |  | 2019 |  | 2018 |  | 2017 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | $ | 221,420 | ​ | $ | 236,526 | ​ | $ | 235,640 | ​
North America commissaries | ​ |  | 142,946 | ​ |  | 140,309 | ​ |  | 136,701 | ​
International | ​ |  | 16,031 | ​ |  | 17,218 | ​ |  | 17,257 | ​
All others | ​ |  | 84,167 | ​ |  | 71,880 | ​ |  | 58,977 | ​
Unallocated corporate assets | ​ |  | 211,842 | ​ |  | 199,239 | ​ |  | 191,924 | ​
Accumulated depreciation and amortization | ​ |  | (464,665) | ​ |  | (438,278) | ​ |  | (406,168) | ​
Net property and equipment | ​ | $ | 211,741 | ​ | $ | 226,894 | ​ | $ | 234,331 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Expenditures for property and equipment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | $ | 8,811 | ​ | $ | 13,568 | ​ | $ | 15,245 | ​
North America commissaries | ​ |  | 3,773 | ​ |  | 3,994 | ​ |  | 14,767 | ​
International | ​ |  | 1,143 | ​ |  | 986 | ​ |  | 1,884 | ​
All others | ​ |  | 11,541 | ​ |  | 13,438 | ​ |  | 8,239 | ​
Unallocated corporate | ​ |  | 12,443 | ​ |  | 10,042 | ​ |  | 12,458 | ​
Total expenditures for property and equipment | ​ | $ | 37,711 | ​ | $ | 42,028 | ​ | $ | 52,593 | ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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): ​
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​ | ​ | Reportable Segments
​ | ​ | Year Ended December 29, 2019
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 652,053 | $ | - | $ | - | $ | - | $ | - | $ | 652,053
Commissary sales | ​ | - | ​ | 799,725 | ​ | - | ​ | 64,179 | ​ | - | ​ | 863,904
Franchise royalties and fees | ​ | - | ​ | - | ​ | 74,610 | ​ | 38,745 | ​ | - | ​ | 113,355
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 23,344 | ​ | 244,924 | ​ | 268,268
Eliminations | ​ | - | ​ | (187,073) | ​ | (2,782) | ​ | (191) | ​ | (88,286) | ​ | (278,332)
Total segment revenues | $ | 652,053 | $ | 612,652 | $ | 71,828 | $ | 126,077 | $ | 156,638 | $ | 1,619,248
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (23,344) | ​ | 23,344 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | 191 | ​ | (191) | ​ | -
Total revenues | $ | 652,053 | $ | 612,652 | $ | 71,828 | $ | 102,924 | $ | 179,791 | $ | 1,619,248
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Year Ended December 30, 2018 (Note)
Major Products/Services Lines | ​ | Domestic Company-owned restaurants | ​ | North America commissaries | ​ | North America franchising | ​ | International | ​ | All others | ​ | Total
Company-owned restaurant sales | $ | 692,380 | $ | - | $ | - | $ | 6,237 | $ | - | $ | 698,617
Commissary sales | ​ | - | ​ | 811,191 | ​ | - | ​ | 68,124 | ​ | - | ​ | 879,315
Franchise royalties and fees | ​ | - | ​ | - | ​ | 82,258 | ​ | 35,988 | ​ | - | ​ | 118,246
Other revenues | ​ | - | ​ | - | ​ | - | ​ | 21,202 | ​ | 222,130 | ​ | 243,332
Eliminations | ​ | - | ​ | (201,325) | ​ | (2,965) | ​ | (283) | ​ | (72,066) | ​ | (276,639)
Total segment revenues | $ | 692,380 | $ | 609,866 | $ | 79,293 | $ | 131,268 | $ | 150,064 | $ | 1,662,871
International other revenues (1) | ​ | - | ​ | - | ​ | - | ​ | (21,202) | ​ | 21,202 | ​ | -
International eliminations (1) | ​ | - | ​ | - | ​ | - | ​ | 283 | ​ | (283) | ​ | -
Total revenues | $ | 692,380 | $ | 609,866 | $ | 79,293 | $ | 110,349 | $ | 170,983 | $ | 1,662,871
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Note: Fiscal year 2018 has been restated to reflect the consolidation of Papa John’s Marketing Fund, Inc. See Note 2 under the heading “Restatement of Previously Issued Consolidated Financial Statements for Immaterial Error Correction” for more details. ​ (1)Other revenues as reported in the Consolidated Statements of Operations include $23.2 million and $20.9 million of revenue for the years ended December 29, 2019 and December 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 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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