(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 nine months ended March 24, 2019 and March 25, 2018 (in thousands):

	Three Months Ended						Nine Months Ended
	March 24, 2019			March 25, 2018			March 24, 2019			March 25, 2018
Net sales and operating revenues:
Pizza Inn Franchising	$	1,645		$	1,601		$	5,338		$	5,093
Pie Five Franchising		1,102			774			3,348			3,169
Company-Owned Restaurants (1)		314			290			533			4,032
Interest income		9			-			37			-
Consolidated revenues	$	3,070		$	2,665		$	9,256		$	12,294

Depreciation and amortization:
Pizza Inn Franchising	$	-		$	-		$	-		$	-
Pie Five Franchising		-			-			-			-
Company-Owned Restaurants (1)		31			45			93			418
Combined		31			45			93			418
Corporate administration and other (2)		89			88			292			315
Depreciation and amortization	$	120		$	133		$	385		$	733

Income/(Loss) from continuing operations before taxes:
Pizza Inn Franchising	$	1,308		$	1,288		$	4,081		$	4,165
Pie Five Franchising		551			474			1,764			2,140
Company-Owned Restaurants (1)		(253	)		(167	)		(677	)		(1,509	)
Combined		1,606			1,595			5,168			4,796
Corporate administration and other		(1,860	)		(2,064	)		(4,903	)		(5,807	)
Income/(loss) from continuing operations before taxes	$	(254	)	$	(469	)	$	265		$	(1,011	)

Geographic information (revenues):
United States	$	3,040		$	2,593		$	9,049		$	11,929
Foreign countries		30			72			207			365
Consolidated total	$	3,070		$	2,665		$	9,256		$	12,294

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.