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Segment Information | 12 Months Ended
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Dec. 25, 2022
Segment Reporting [Abstract] |
Segment Information | 23. 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 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 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 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 International segment principally consists of distribution sales to franchised Papa Johns restaurants located in the UK 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. 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 total revenues. The following tables present our segment information.
(In thousands) |  | 2022 |  | 2021 |  | 2020
Revenues: |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 708,389 |  | $ | 778,323 |  | $ | 700,757
North America franchising |  | 137,399 |  | 129,310 |  | 96,732
North America commissaries |  | 869,634 |  | 761,305 |  | 680,793
International |  | 158,682 |  | 184,099 |  | 150,939
All others |  | 227,999 |  | 215,384 |  | 184,013
Total revenues |  | $ | 2,102,103 |  | $ | 2,068,421 |  | $ | 1,813,234
Intersegment revenues: |  |  |  |  |  |
North America franchising |  | $ | 4,122 |  | $ | 4,179 |  | $ | 3,229
North America commissaries |  | 217,570 |  | 215,393 |  | 192,332
All others |  | 70,283 |  | 75,366 |  | 83,635
Total intersegment revenues |  | $ | 291,975 |  | $ | 294,938 |  | $ | 279,196
Depreciation and amortization: |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 11,495 |  | $ | 11,728 |  | $ | 11,905
North America commissaries |  | 13,299 |  | 11,974 |  | 9,660
International |  | 1,774 |  | 2,326 |  | 1,975
All others |  | 12,681 |  | 9,928 |  | 10,254
Unallocated corporate expenses |  | 12,783 |  | 12,860 |  | 15,911
Total depreciation and amortization |  | $ | 52,032 |  | $ | 48,816 |  | $ | 49,705
Operating income: |  |  |  |  |  |
Domestic Company-owned restaurants (a) |  | $ | 15,966 |  | $ | 49,628 |  | $ | 37,049
North America franchising |  | 127,882 |  | 120,949 |  | 89,801
North America commissaries |  | 42,531 |  | 39,873 |  | 33,185
International (b) |  | 17,891 |  | 34,896 |  | 24,034
All others |  | 10,084 |  | 17,704 |  | 7,043 |
Unallocated corporate expenses (c) |  | (104,419) |  | (94,114) |  |  | (100,069) |
Elimination of intersegment (profits) |  | (905) |  | (695) |  |  | (790) |
Total operating income |  | $ | 109,030 |  | $ | 168,241 |  | $ | 90,253
______________________________ (a) Includes a one-time, non-cash charge of $8.4 million associated with the refranchising of the Company’s ownership interest in a 90-restaurant joint venture, recorded as Refranchising and impairment loss for the year ended December 25, 2022. See “Note 22. Divestitures” for additional information. (b) Includes charges of $3.5 million related to one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights due to the financial and operational impact of the conflict in Ukraine and $6.1 million of costs associated with the termination of significant franchisees in the UK, including the reserve of certain accounts and notes receivable and operating lease right-of-use assets impairment. See “Note 22. Divestitures” and “Note 10. Allowance for Credit Losses” for additional information. (c) For the year ended December 25, 2022, Unallocated corporate expenses includes $15.0 million for certain legal settlements, $13.9 million of one-time, non-cash reserves of certain notes receivable, and $1.5 million of advisory fees and severance costs associated with the transition of certain executives. For the year ended December 26, 2021, Unallocated corporate expense includes $13.1 million of reorganization costs. See “Note 16. Strategic Corporate Reorganization for Long-term Growth” for additional information.
(In thousands) |  | 2022 |  | 2021 |  | 2020
Property and equipment, net: |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 238,658 |  | $ | 241,050 |  | $ | 228,077
North America commissaries |  | 149,920 |  | 149,218 |  | 145,282
International |  | 16,080 |  | 14,642 |  | 13,604
All others |  | 131,210 |  | 109,052 |  | 91,724
Unallocated corporate assets |  | 254,425 |  | 236,132 |  | 213,828
Accumulated depreciation and amortization |  | (540,500) |  |  | (526,238) |  |  | (491,620) |
Property and equipment, net |  | $ | 249,793 |  | $ | 223,856 |  | $ | 200,895
Expenditures for property and equipment: |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 23,057 |  | $ | 16,108 |  | $ | 12,848
North America commissaries |  | 5,729 |  | 4,007 |  | 4,447
International |  | 5,175 |  | 1,979 |  | 1,065
All others |  | 18,296 |  | 18,645 |  | 11,700
Unallocated corporate |  | 26,134 |  | 27,820 |  | 5,592
Total expenditures for property and equipment (a) |  | $ | 78,391 |  | $ | 68,559 |  | $ | 35,652
______________________________ (a) Increases of $9.8 million and $32.9 million in expenditures for property and equipment in 2022 and 2021, respectively, were primarily driven by investment in growth, including technology and development initiatives. 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:
|  | Reportable Segments
(In thousands) |  | Year Ended December 25, 2022
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 708,389 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 708,389 |
Franchise royalties and fees |  | — |  |  | 141,521 |  |  | — |  |  | 49,422 |  |  | — |  |  | 190,943 |
Commissary sales |  | — |  |  | — |  |  | 1,087,204 |  |  | 80,481 |  |  | — |  |  | 1,167,685 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 28,779 |  |  | 298,282 |  |  | 327,061 |
Eliminations |  | — |  |  | (4,122) |  |  | (217,570) |  |  | — |  |  | (70,283) |  |  | (291,975) |
Total segment revenues |  | 708,389 |  |  | 137,399 |  |  | 869,634 |  |  | 158,682 |  |  | 227,999 |  |  | 2,102,103 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (28,779) |  |  | 28,779 |  |  | — |
Total revenues |  | $ | 708,389 |  |  | $ | 137,399 |  |  | $ | 869,634 |  |  | $ | 129,903 |  |  | $ | 256,778 |  |  | $ | 2,102,103 |
|  | Reportable Segments
(In thousands) |  | Year Ended December 26, 2021
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 778,323 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 778,323 |
Franchise royalties and fees |  | — |  |  | 133,489 |  |  | — |  |  | 53,148 |  |  | — |  |  | 186,637 |
Commissary sales |  | — |  |  | — |  |  | 976,698 |  |  | 97,623 |  |  | — |  |  | 1,074,321 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 33,328 |  |  | 290,750 |  |  | 324,078 |
Eliminations |  | — |  |  | (4,179) |  |  | (215,393) |  |  | — |  |  | (75,366) |  |  | (294,938) |
Total segment revenues |  | 778,323 |  |  | 129,310 |  |  | 761,305 |  |  | 184,099 |  |  | 215,384 |  |  | 2,068,421 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (33,328) |  |  | 33,328 |  |  | — |
Total revenues |  | $ | 778,323 |  |  | $ | 129,310 |  |  | $ | 761,305 |  |  | $ | 150,771 |  |  | $ | 248,712 |  |  | $ | 2,068,421 |
|  | Reportable Segments
(In thousands) |  | Year Ended December 27, 2020
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 700,757 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 700,757 |
Franchise royalties and fees |  | — |  |  | 99,961 |  |  | — |  |  | 39,920 |  |  | — |  |  | 139,881 |
Commissary sales |  | — |  |  | — |  |  | 873,125 |  |  | 84,043 |  |  | — |  |  | 957,168 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 26,976 |  |  | 267,648 |  |  | 294,624 |
Eliminations |  | — |  |  | (3,229) |  |  | (192,332) |  |  | — |  |  | (83,635) |  |  | (279,196) |
Total segment revenues |  | 700,757 |  |  | 96,732 |  |  | 680,793 |  |  | 150,939 |  |  | 184,013 |  |  | 1,813,234 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (26,976) |  |  | 26,976 |  |  | — |
Total revenues |  | $ | 700,757 |  |  | $ | 96,732 |  |  | $ | 680,793 |  |  | $ | 123,963 |  |  | $ | 210,989 |  |  | $ | 1,813,234 |
______________________________ (a) Other revenues as reported in the Consolidated Statements of Operations include $28.8 million, $33.3 million and $27.0 million of revenue for the years ended December 25, 2022, December 26, 2021, and December 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 UK 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://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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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