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Segment Reporting
 12 Months Ended
Jun. 30, 2013
Segment Reporting  
Segment Reporting

NOTE L– 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 30, 2013 and June 24, 2012 (in thousands):

 

 

Year Ended

 

 

 

June 30,

 

 

June 24,

 

 

 

2013

 

 

2012

 

 Net sales and operating revenues:

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

33,683

 

 

$

36,926

 

 Company-owned restaurants (1)

 

 

8,177

 

 

 

6,075

 

 Consolidated revenues

 

$

41,860

 

 

$

43,001

 

 

 

 

 

 

 

 

 

 

 Depreciation and amortization:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

-

 

 

$

-

 

 Company-owned restaurants (1)

 

 

1,050

 

 

 

730

 

 Combined

 

 

1,050

 

 

 

730

 

 Corporate administration and other

 

 

254

 

 

 

216

 

 Depreciation and amortization

 

$

1,304

 

 

$

946

 

 

 

 

 

 

 

 

 

 

 Income (Loss) from continuing operations before taxes

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution (2)

 

$

2,136

 

 

$

3,184

 

 Company-owned restaurants (1) (2)

 

 

(1,237

)

 

 

(821

)

 Combined

 

 

899

 

 

 

2,363

 

 Impairment of long-lived assets and other lease charges

 

 

(766

)

 

 

-

 

 Corporate administration and other (2)

 

 

(1,780

)

 

 

(1,561

)

 Income from continuing operations before taxes

 

$

(1,647

)

 

$

802

 

 

 

 

 

 

 

 

 

 

 Capital Expenditures:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

-

 

 

$

-

 

 Company-owned restaurants

 

 

2,110

 

 

 

1,996

 

 Corporate administration

 

 

134

 

 

 

486

 

 Combined capital expenditures

 

$

2,244

 

 

$

2,482

 

 

 

 

 

 

 

 

 

 

 Assets:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

4,909

 

 

$

5,025

 

 Company-owned restaurants

 

 

4,696

 

 

 

4,733

 

 Corporate administration

 

 

2,930

 

 

 

2,740

 

 Combined assets

 

$

12,535

 

 

$

12,498

 

 

 

 

 

 

 

 

 

 

 (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

 

$

40,802

 

 

$

41,955

 

 Foreign countries

 

 

1,058

 

 

 

1,046

 

 Consolidated total

 

$

41,860

 

 

$

43,001