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Segment Information | 9 Months Ended
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Sep. 26, 2021
Segment Information |
Segment Information | ​
11. | Segment Information
​ We have four reportable segments: domestic Company-owned restaurants, North America franchising, North America commissaries, 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, Papadias, which are flatbread-style sandwiches, 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 operating income and intercompany eliminations. Certain administrative and capital costs are allocated to segments based upon predetermined rates or 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 26, | ​ | September 27, | ​ | September 26, | ​ | September 27,
(In thousands) | ​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Revenues: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | ​ | $ | 191,584 | ​ | $ | 178,371 | ​ | $ | 584,942 | ​ | $ | 526,317
North America franchising | ​ | ​ |  | 31,933 | ​ |  | 25,281 | ​ |  | 97,123 | ​ |  | 68,895
North America commissaries | ​ | ​ |  | 189,224 | ​ |  | 181,338 | ​ |  | 560,743 | ​ |  | 504,379
International | ​ | ​ |  | 46,880 | ​ |  | 40,328 | ​ |  | 135,761 | ​ |  | 106,846
All others | ​ | ​ |  | 53,161 | ​ |  | 47,623 | ​ |  | 160,967 | ​ |  | 136,986
Total revenues | ​ | ​ | $ | 512,782 | ​ | $ | 472,941 | ​ | $ | 1,539,536 | ​ | $ | 1,343,423
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Intersegment revenues: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America franchising | ​ | ​ | $ | 1,037 | ​ | $ | 824 | ​ | $ | 3,138 | ​ | $ | 2,291
North America commissaries | ​ | ​ | ​ | 53,454 | ​ | ​ | 50,306 | ​ | ​ | 158,952 | ​ | ​ | 142,169
All others | ​ | ​ |  | 18,522 | ​ |  | 27,168 | ​ |  | 56,613 | ​ |  | 66,509
Total intersegment revenues | ​ | ​ | $ | 73,013 | ​ | $ | 78,298 | ​ | $ | 218,703 | ​ | $ | 210,969
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | ​ | $ | 9,480 | ​ | $ | 8,439 | ​ | $ | 40,165 | ​ | $ | 33,852
North America franchising | ​ | ​ |  | 29,830 | ​ |  | 23,353 | ​ |  | 90,791 | ​ |  | 62,855
North America commissaries | ​ | ​ |  | 9,598 | ​ |  | 8,208 | ​ |  | 29,089 | ​ |  | 24,579
International | ​ | ​ |  | 9,618 | ​ |  | 7,986 | ​ |  | 26,665 | ​ |  | 16,836
All others | ​ | ​ |  | 3,848 | ​ |  | 3,193 | ​ |  | 14,860 | ​ |  | 5,030
Unallocated corporate expenses | ​ | ​ |  | (23,158) | ​ |  | (26,921) | ​ |  | (70,937) | ​ |  | (71,978)
Elimination of intersegment losses (profits) | ​ | ​ |  | (639) | ​ |  | 291 | ​ |  | (557) | ​ |  | (619)
Total operating income | ​ | ​ | $ | 38,577 | ​ | $ | 24,549 | ​ | $ | 130,076 | ​ | $ | 70,555
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment, net: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic Company-owned restaurants | ​ | ​ | $ | 237,155 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America commissaries | ​ | ​ | ​ | 147,186 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
International | ​ | ​ | ​ | 15,026 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
All others | ​ | ​ | ​ | 103,054 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Unallocated corporate assets | ​ | ​ | ​ | 229,359 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accumulated depreciation and amortization | ​ | ​ | ​ | (522,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total property and equipment, net | ​ | ​ | $ | 209,072 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ ​ ​ ​ ​ ​ ​ Disaggregation of Revenue ​ In the following tables, revenues are disaggregated by major product/service line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Three Months Ended September 26, 2021
Major Products/Services Lines | ​ | ​ | Domestic Company-owned restaurants | ​ | ​ | North America franchising | ​ | ​ | North America commissaries | ​ | ​ | International | ​ | ​ | All others | ​ | ​ | Total
Company-owned restaurant sales | ​ | $ | 191,584 | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | 191,584
Franchise royalties and fees | ​ | ​ | - | ​ | ​ | 32,970 | ​ | ​ | - | ​ | ​ | 14,031 | ​ | ​ | - | ​ | ​ | 47,001
Commissary sales | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 242,678 | ​ | ​ | 24,377 | ​ | ​ | - | ​ | ​ | 267,055
Other revenues | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 8,472 | ​ | ​ | 71,683 | ​ | ​ | 80,155
Eliminations | ​ | ​ | - | ​ | ​ | (1,037) | ​ | ​ | (53,454) | ​ | ​ | - | ​ | ​ | (18,522) | ​ | ​ | (73,013)
Total segment revenues | ​ | $ | 191,584 | ​ | $ | 31,933 | ​ | $ | 189,224 | ​ | $ | 46,880 | ​ | $ | 53,161 | ​ | $ | 512,782
International other revenues (1) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (8,472) | ​ | ​ | 8,472 | ​ | ​ | -
Total revenues | ​ | $ | 191,584 | ​ | $ | 31,933 | ​ | $ | 189,224 | ​ | $ | 38,408 | ​ | $ | 61,633 | ​ | $ | 512,782
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Three Months Ended September 27, 2020
Major Products/Services Lines | ​ | ​ | Domestic Company-owned restaurants | ​ | ​ | North America franchising | ​ | ​ | North America commissaries | ​ | ​ | International | ​ | ​ | All others | ​ | ​ | Total
Company-owned restaurant sales | ​ | $ | 178,371 | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | 178,371
Franchise royalties and fees | ​ | ​ | - | ​ | ​ | 26,105 | ​ | ​ | - | ​ | ​ | 10,703 | ​ | ​ | - | ​ | ​ | 36,808
Commissary sales | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 231,644 | ​ | ​ | 22,737 | ​ | ​ | - | ​ | ​ | 254,381
Other revenues | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 6,888 | ​ | ​ | 74,791 | ​ | ​ | 81,679
Eliminations | ​ | ​ | - | ​ | ​ | (824) | ​ | ​ | (50,306) | ​ | ​ | - | ​ | ​ | (27,168) | ​ | ​ | (78,298)
Total segment revenues | ​ | $ | 178,371 | ​ | $ | 25,281 | ​ | $ | 181,338 | ​ | $ | 40,328 | ​ | $ | 47,623 | ​ | $ | 472,941
International other revenues (1) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (6,888) | ​ | ​ | 6,888 | ​ | ​ | -
Total revenues | ​ | $ | 178,371 | ​ | $ | 25,281 | ​ | $ | 181,338 | ​ | $ | 33,440 | ​ | $ | 54,511 | ​ | $ | 472,941
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Reportable Segments
​ | ​ | ​ | Nine Months Ended September 26, 2021
Major Products/Services Lines | ​ | ​ | Domestic Company-owned restaurants | ​ | ​ | North America franchising | ​ | ​ | North America commissaries | ​ | ​ | International | ​ | ​ | All others | ​ | ​ | Total
Company-owned restaurant sales | ​ | $ | 584,942 | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | 584,942
Franchise royalties and fees | ​ | ​ | - | ​ | ​ | 100,261 | ​ | ​ | - | ​ | ​ | 39,396 | ​ | ​ | - | ​ | ​ | 139,657
Commissary sales | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 719,695 | ​ | ​ | 71,233 | ​ | ​ | - | ​ | ​ | 790,928
Other revenues | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 25,132 | ​ | ​ | 217,580 | ​ | ​ | 242,712
Eliminations | ​ | ​ | - | ​ | ​ | (3,138) | ​ | ​ | (158,952) | ​ | ​ | - | ​ | ​ | (56,613) | ​ | ​ | (218,703)
Total segment revenues | ​ | $ | 584,942 | ​ | $ | 97,123 | ​ | $ | 560,743 | ​ | $ | 135,761 | ​ | $ | 160,967 | ​ | $ | 1,539,536
International other revenues (1) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (25,132) | ​ | ​ | 25,132 | ​ | ​ | -
Total revenues | ​ | $ | 584,942 | ​ | $ | 97,123 | ​ | $ | 560,743 | ​ | $ | 110,629 | ​ | $ | 186,099 | ​ | $ | 1,539,536
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reportable Segments
​ | ​ | Nine Months Ended September 27, 2020
Major Products/Services Lines | ​ | ​ | Domestic Company-owned restaurants | ​ | ​ | North America franchising | ​ | ​ | North America commissaries | ​ | ​ | International | ​ | ​ | All others | ​ | ​ | Total
Company-owned restaurant sales | ​ | $ | 526,317 | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | 526,317
Franchise royalties and fees | ​ | ​ | - | ​ | ​ | 71,186 | ​ | ​ | - | ​ | ​ | 27,962 | ​ | ​ | - | ​ | ​ | 99,148
Commissary sales | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 646,548 | ​ | ​ | 59,630 | ​ | ​ | - | ​ | ​ | 706,178
Other revenues | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 19,254 | ​ | ​ | 203,495 | ​ | ​ | 222,749
Eliminations | ​ | ​ | - | ​ | ​ | (2,291) | ​ | ​ | (142,169) | ​ | ​ | - | ​ | ​ | (66,509) | ​ | ​ | (210,969)
Total segment revenues | ​ | $ | 526,317 | ​ | $ | 68,895 | ​ | $ | 504,379 | ​ | $ | 106,846 | ​ | $ | 136,986 | ​ | $ | 1,343,423
International other revenues (1) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (19,254) | ​ | ​ | 19,254 | ​ | ​ | -
Total revenues | ​ | $ | 526,317 | ​ | $ | 68,895 | ​ | $ | 504,379 | ​ | $ | 87,592 | ​ | $ | 156,240 | ​ | $ | 1,343,423
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) | Other revenues as reported in the Condensed Consolidated Statements of Operations include $8.5 million and $25.1 million of revenue for the three and nine months ended September 26, 2021, respectively, and $6.9 million and $19.3 million of revenue for the three and nine months ended September 27, 2020, 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 operating income 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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