Segment Reporting

9 Months Ended

Oct. 02, 2011

Segment Reporting [Abstract]

Segment Reporting

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 October 2, 2011:
Revenues	$	300,617	$	1,641	$	223,118	$	75,858
Segment profit	22,920		960		17,633		4,327
Capital expenditures	10,940		250		9,560		1,130
Depreciation and amortization	24,845		681		17,958		6,206
For the Three Months Ended October 3, 2010:
Revenues	$	308,410	$	911	$	231,309	$	76,190
Segment profit	38,358		383		30,765		7,210
Capital expenditures	8,352		364		6,119		1,869
Depreciation and amortization	19,318		528		14,018		4,772
For the Nine Months Ended October 2, 2011:
Revenues	$	929,000	$	4,079	$	690,126	$	234,795
Segment profit	89,882		2,181		71,809		15,892
Capital expenditures	27,555		1,124		20,063		6,368
Depreciation and amortization	65,323		1,898		46,892		16,533
For the Nine Months Ended October 3, 2010:
Revenues	$	931,619	$	2,376	$	695,441	$	233,802
Segment profit	109,487		818		85,627		23,042
Capital expenditures	26,657		2,006		19,779		4,872
Depreciation and amortization	57,654		1,558		41,915		14,181
As of October 2, 2011:
Total assets	$	579,576	$	24,558	$	467,975	$	87,043
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.See the table below for a reconciliation of segment profit to 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 Nine Months Ended
	October 2, 2011			October 3, 2010			October 2, 2011			October 3, 2010
Segment profit	$	22,920		$	38,358		$	89,882		$	109,487
Less general and administrative	(12,664		)	(23,226		)	(52,108		)	(62,044		)
Less preopening expense	(629		)	(572		)	(1,240		)	(1,537		)
Less partner investment expense	60			147			236			271
Less interest and other income (expense), net	(947		)	175			(615		)	(905		)
Add net income attributable to noncontrolling interests	39			172			316			619
Income from continuing operations before taxes	$	8,779		$	15,054		$	36,471		$	45,891