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SEGMENT REPORTING
 12 Months Ended
Jun. 24, 2012
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE K– SEGMENT REPORTING:

 

The Company has two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information:  (1) Franchising and Food and Supply Distribution, and (2) Company-owned Restaurants.  These segments are a result of differences in the nature of the products and services sold.  Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments.  Other revenue consists of nonrecurring items.

 

The Franchising and Food and Supply Distribution segment establishes franchisees and franchise territorial rights and sells and distributes proprietary and non-proprietary food and other items to franchisees. Revenue for this segment is derived from the sale of distributed products and franchise royalties, franchise fees and sale of area development and foreign master license rights. Assets for this segment include equipment, furniture and fixtures.

 

The Company-owned Restaurant segment includes sales and operating results for all Company-owned restaurants.  Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

    

Corporate administration and other assets primarily include the deferred tax asset, cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets.  All assets are located within the United States.

 

Summarized in the following tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the years ended June 24, 2012 and June 26, 2011 (in thousands):

 

 

 

Year Ended

 

 

 

June 24,

 

 

June 26,

 

 

 

2012

 

 

2011

 

 Net sales and operating revenues:

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

36,926

 

 

$

38,873

 

 Company-owned restaurants (1)

 

 

6,075

 

 

 

4,163

 

 Consolidated revenues

 

$

43,001

 

 

$

43,036

 

 

 

 

 

 

 

 

 

 

 Depreciation and amortization:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

-

 

 

$

-

 

 Company-owned restaurants (1)

 

 

730

 

 

 

689

 

 Combined

 

 

730

 

 

 

689

 

 Corporate administration and other

 

 

216

 

 

 

162

 

 Depreciation and amortization

 

$

946

 

 

$

851

 

 

 

 

 

 

 

 

 

 

 Income (Loss) from continuing operations before taxes

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution (2)

 

$

3,184

 

 

$

4,484

 

 Company-owned restaurants (1) (2)

 

 

(821

)

 

 

(781

)

 Combined

 

 

2,363

 

 

 

3,703

 

 Corporate administration and other (2)

 

 

(1,561

)

 

 

(1,663

)

 Income from continuing operations before taxes

 

$

802

 

 

$

2,040

 

 

 

 

 

 

 

 

 

 

 Capital Expenditures:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

-

 

 

$

-

 

 Company-owned restaurants

 

 

1,996

 

 

 

1,606

 

 Corporate administration

 

 

486

 

 

 

259

 

 Combined Capital Expenditures

 

$

2,482

 

 

$

1,865

 

 

 

 

 

 

 

 

 

 

 Assets:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

5,025

 

 

$

6,069

 

 Company-owned restaurants

 

 

4,733

 

 

 

3,151

 

 Corporate administration

 

 

2,740

 

 

 

1,932

 

 Combined capital expenditures

 

$

12,498

 

 

$

11,152

 

 

 (1)

 Company stores that were closed are included in discontinued

 

 

 

 

 

 

 operations in the accompanying Condensed Consolidated Statement

 

 

 

 

 of Operations.

 

 

 

 

 

 

 

 

 

 

 

 (2)

 Portions of corporate administration and other have been allocated to segments.

 

 

  

The following table provides information on our foreign and domestic revenues:

 

 Geographic information (revenues):

 

 

 

 

 

 

 United States

 

$

41,955

 

 

$

41,900

 

 Foreign countries

 

 

1,046

 

 

 

1,136

 

 Consolidated total

 

$

43,001

 

 

$

43,036