(8)	Segment Reporting

The Company has three 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) Pizza Inn Franchising, (2) Pie Five Franchising and (3) 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 three operating segments. Other revenue consists of non-recurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments is derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for these segments 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 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 table are net sales and operating revenues, depreciation and amortization expense and income from continuing operations before taxes for the Company's reportable segments as of the three and six months ended December 23, 2018 and December 24, 2017 (in thousands):

	Three Months Ended						Six Months Ended
	December 23, 2018			December 24, 2017			December 23, 2018			December 24, 2017
Net sales and operating revenues:
Pizza Inn Franchising	$	1,789		$	1,718		$	3,693		$	3,492
Pie Five Franchising		1,283			912			2,246			2,395
Company-Owned Restaurants (1)		105			1,567			219			3,742
Interest income		18			-			28			-
Consolidated revenues	$	3,195		$	4,197		$	6,186		$	9,629

Depreciation and amortization:
Pizza Inn Franchising	$	-		$	-		$	-		$	-
Pie Five Franchising		-			-			-			-
Company-Owned Restaurants (1)		31			173			62			373
Combined		31			173			62			373
Corporate administration and other (2)		95			115			203			227
Depreciation and amortization	$	126		$	288		$	265		$	600

Income/(Loss) from continuing operations before taxes:
Pizza Inn Franchising	$	1,426		$	1,398		$	2,773		$	2,877
Pie Five Franchising		754			489			1,213			1,666
Company-Owned Restaurants (1)		(295	)		(464	)		(424	)		(1,342	)
Combined		1,885			1,423			3,562			3,201
Corporate administration and other		(1,524	)		(1,847	)		(3,043	)		(3,743	)
Income/(loss) from continuing operations before taxes	$	361		$	(424	)	$	519		$	(542	)

Geographic information (revenues):
United States	$	3,115		$	3,983		$	6,009		$	9,336
Foreign countries		80			214			177			293
Consolidated total	$	3,195		$	4,197		$	6,186		$	9,629

Notes:

(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.