Segment Reporting

6 Months Ended

Jul. 03, 2011

Segment Reporting [Abstract]

Segment Reporting

11. Segment Reporting

The Company operates primarily in the United States food-service industry and has determined that its reportable segments are those that are based on the Company's methods of internal reporting and management structure. The Company's reportable segments are Bistro and Pei Wei. Additionally, revenues related to Bistro restaurants operated by business partners pursuant to development and licensing agreements and licensing fees related to a premium line of frozen entrées operated under a licensing agreement are both reported within Shared Services and Other. There were no material transactions among reportable segments.

The following table presents information about reportable segments (in thousands):

	Total		Shared Services and Other		Bistro		Pei Wei
For the Three Months Ended July 3, 2011:
Revenues	$	311,014	$	1,373	$	231,226	$	78,415
Segment profit	31,466		703		25,839		4,924
Capital expenditures	9,982		258		7,349		2,375
Depreciation and amortization	20,780		670		14,550		5,560
For the Three Months Ended July 4, 2010:
Revenues	$	312,838	$	1,336	$	233,365	$	78,137
Segment profit	39,044		806		30,109		8,129
Capital expenditures	11,564		1,193		8,397		1,974
Depreciation and amortization	19,335		530		14,043		4,762
For the Six Months Ended July 3, 2011:
Revenues	$	628,383	$	2,438	$	467,008	$	158,937
Segment profit	66,962		1,221		54,176		11,565
Capital expenditures	16,615		874		10,503		5,238
Depreciation and amortization	40,478		1,217		28,934		10,327
For the Six Months Ended July 4, 2010:
Revenues	$	623,209	$	1,465	$	464,132	$	157,612
Segment profit	71,129		435		54,862		15,832
Capital expenditures	18,305		1,642		13,660		3,003
Depreciation and amortization	38,336		1,030		27,897		9,409
As of July 3, 2011:
Total assets	$	594,551	$	23,327	$	478,984	$	92,240
Goodwill	6,819		—		6,566		253
As of January 2, 2011:
Total assets	$	634,689	$	21,195	$	515,927	$	97,567
Goodwill	6,819		—		6,566		253

In addition to using consolidated results in evaluating the Company's financial results, a primary measure used by executive management in assessing the performance of existing restaurant concepts is segment profitability (sometimes referred to as restaurant operating income). Segment profitability is defined as income from operations before general and administrative, preopening and partner investment expenses, but including a deduction for net income attributable to noncontrolling interests. Because preopening and partner investment expenses are associated with expansion of the Company's business and vary in timing and magnitude, they make an accurate assessment of ongoing operations more difficult and are therefore excluded. Additionally, general and administrative expenses are only included in the Company's consolidated financial results as they are generally not specifically identifiable to individual business units as these costs relate to support of both restaurant businesses and the extension of the Company's brands into international markets and retail products. As the Company's expansion is funded entirely from its ongoing restaurant operations, segment profitability is one consideration when determining whether and when to open additional restaurants.The non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the table below for a reconciliation of segment profit to the most directly comparable GAAP measure, income from continuing operations before taxes.

Reconciliation of Segment profit to Income from continuing operations before taxes (in thousands):

	For the Three Months Ended						For the Six Months Ended
	July 3, 2011			July 4, 2010			July 3, 2011			July 4, 2010
Segment profit	$	31,466		$	39,044		$	66,962		$	71,129
Less general and administrative	(19,164		)	(19,765		)	(39,444		)	(38,818		)
Less preopening expense	(213		)	(832		)	(611		)	(965		)
Less partner investment expense	50			135			176			124
Less interest and other income (expense), net	128			(665		)	332			(1,080		)
Add net income attributable to noncontrolling interests	120			241			277			447
Income from continuing operations before taxes	$	12,387		$	18,158		$	27,692		$	30,837