XML 25 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Reporting
 3 Months Ended
Sep. 27, 2020
Segment Reporting [Abstract]  
Segment Reporting
Note H - 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 this segment is primarily derived from franchise royalties, franchise license fees, sale of area development and foreign master license rights, incentive payments from third party suppliers and distributors, advertising funds, and supplier convention funds. 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.

Revenue for corporate administration and other consists of rental income and interest income.  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 before taxes, for the Company’s reportable segments as of the three months ended September 27, 2020 and September 29, 2019 (in thousands):

  
Three Months Ended
 
  
September 27,
2020
  
September 29,
2019
 
Net sales and operating revenues:
      
Pizza Inn Franchising
 
$
1,380
  
$
1,864
 
Pie Five Franchising
  
476
   
852
 
Company-Owned Restaurants
  
—
   
108
 
Corporate administration and other
  
47
   
52
 
Consolidated revenues
 
$
1,903
  
$
2,876
 
         
Depreciation and amortization:
        
Pizza Inn Franchising
 
$
—
  
$
—
 
Pie Five Franchising
  
—
   
—
 
Company-Owned Restaurants
  
—
   
—
 
Combined
  
—
   
—
 
Corporate administration and other
  
44
   
47
 
Depreciation and amortization
 
$
44
  
$
47
 
         
Income before taxes:
        
Pizza Inn Franchising
 
$
1,100
  
$
1,412
 
Pie Five Franchising
  
209
   
438
 
Company-Owned Restaurants
  
(100
)
  
(203
)
Combined
  
1,209
   
1,647
 
Corporate administration and other
  
(1,131
)
  
(1,337
)
Income before taxes
 
$
78
  
$
310
 
         
Geographic information (revenues):
        
United States
 
$
1,859
  
$
2,817
 
Foreign countries
  
44
   
59
 
Consolidated total
 
$
1,903
  
$
2,876