SEGMENT INFORMATION

9 Months Ended

Mar. 24, 2021

Segment Reporting [Abstract]

Segment Information

Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also has Company-owned restaurants in Canada, and franchised locations in the United States, 27 countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as the results from our domestic franchise business. The Other segment includes costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, finance, franchise, marketing, human resources and culinary innovation. The Other segment also includes costs related to the common and shared infrastructure, including accounting, information technology, purchasing, guest relations, legal and restaurant development.

Company sales for each segment include revenues generated by the operation of Company-owned restaurants including gift card redemptions and virtual brand revenues. Franchise and other revenues include royalties, delivery service income, gift card breakage, franchise advertising fees, digital entertainment revenues, Maggiano’s banquet service charge income, franchise and development fees, gift card discount costs from third-party gift card sales and merchandise income.

We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. There were no material transactions amongst our operating segments.

Our chief operating decision maker uses Operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses during the periods presented primarily included restaurant rent, supplies, delivery fees, repairs and maintenance, utilities, property taxes, credit card processing fees and advertising.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

	Thirteen Week Period Ended March 24, 2021
	Chili’s		Maggiano’s		Other		Consolidated
Company sales	$	749.0	$	64.7	$	—	$	813.7
Royalties	7.7		—		—		7.7
Franchise fees and other revenues	6.3		0.7		—		7.0
Franchise and other revenues	14.0		0.7		—		14.7
Total revenues	763.0		65.4		—		828.4
Food and beverage costs	198.7		15.2		—		213.9
Restaurant labor	248.7		22.1		—		270.8
Restaurant expenses	194.2		21.7		0.2		216.1
Depreciation and amortization	31.0		3.4		3.0		37.4
General and administrative	7.0		1.3		25.4		33.7
Other (gains) and charges	3.1		0.3		0.9		4.3
Total operating costs and expenses	682.7		64.0		29.5		776.2
Operating income (loss)	80.3		1.4		(29.5)		52.2
Interest expenses	1.4		—		12.7		14.1
Other income, net	(0.1)		—		(0.2)		(0.3)
Income (loss) before income taxes	$	79.0	$	1.4	$	(42.0)	$	38.4

	Thirteen Week Period Ended March 25, 2020
	Chili’s		Maggiano’s		Other		Consolidated
Company sales	$	748.7	$	91.7	$	—	$	840.4
Royalties	9.0		—		—		9.0
Franchise fees and other revenues	6.7		3.9		—		10.6
Franchise and other revenues	15.7		3.9		—		19.6
Total revenues	764.4		95.6		—		860.0
Food and beverage costs	204.1		22.6		—		226.7
Restaurant labor	251.1		34.8		—		285.9
Restaurant expenses	193.2		26.9		0.1		220.2
Depreciation and amortization	36.5		3.8		3.2		43.5
General and administrative	5.9		1.1		16.3		23.3
Other (gains) and charges	14.9		2.4		2.0		19.3
Total operating costs and expenses	705.7		91.6		21.6		818.9
Operating income (loss)	58.7		4.0		(21.6)		41.1
Interest expenses	1.1		—		13.2		14.3
Other income, net	(0.1)		—		(0.3)		(0.4)
Income (loss) before income taxes	$	57.7	$	4.0	$	(34.5)	$	27.2

	Thirty-Nine Week Period Ended March 24, 2021
	Chili’s		Maggiano’s		Other		Consolidated
Company sales	$	2,107.0	$	181.1	$	—	$	2,288.1
Royalties	21.9		0.1		—		22.0
Franchise fees and other revenues	17.0		2.1		—		19.1
Franchise and other revenues	38.9		2.2		—		41.1
Total revenues	2,145.9		183.3		—		2,329.2
Food and beverage costs	563.2		43.1		—		606.3
Restaurant labor	710.3		64.3		—		774.6
Restaurant expenses	564.6		64.6		0.7		629.9
Depreciation and amortization	92.4		10.4		9.2		112.0
General and administrative	17.8		3.9		72.5		94.2
Other (gains) and charges	11.1		1.2		1.2		13.5
Total operating costs and expenses	1,959.4		187.5		83.6		2,230.5
Operating income (loss)	186.5		(4.2)		(83.6)		98.7
Interest expenses	4.2		0.1		38.8		43.1
Other income, net	(0.4)		—		(0.8)		(1.2)
Income (loss) before income taxes	$	182.7	$	(4.3)	$	(121.6)	$	56.8
Segment assets	$	1,905.2	$	219.7	$	184.1	$	2,309.0
Segment goodwill	149.7		38.4		—		188.1
Payments for property and equipment	56.3		1.4		4.7		62.4

	Thirty-Nine Week Period Ended March 25, 2020
	Chili’s(1)		Maggiano’s		Other		Consolidated
Company sales	$	2,154.6	$	297.2	$	—	$	2,451.8
Royalties	30.7		0.1		—		30.8
Franchise fees and other revenues	17.8		14.9		—		32.7
Franchise and other revenues	48.5		15.0		—		63.5
Total revenues	2,203.1		312.2		—		2,515.3
Food and beverage costs	581.6		72.0		—		653.6
Restaurant labor	735.2		111.0		—		846.2
Restaurant expenses	568.2		83.6		0.4		652.2
Depreciation and amortization	99.3		11.8		9.8		120.9
General and administrative	23.5		4.3		68.1		95.9
Other (gains) and charges	23.9		2.5		4.3		30.7
Total operating costs and expenses	2,031.7		285.2		82.6		2,399.5
Operating income (loss)	171.4		27.0		(82.6)		115.8
Interest expenses	3.1		—		41.1		44.2
Other income, net	(0.4)		—		(1.0)		(1.4)
Income (loss) before income taxes	$	168.7	$	27.0	$	(122.7)	$	73.0
Payments for property and equipment	$	68.9	$	6.2	$	6.9	$	82.0

(1)Chili’s segment information for fiscal 2020 includes the results of operations related to the 116 restaurants purchased from a former franchisee subsequent to the September 5, 2019 acquisition date. Refer to Note 15 - Fiscal 2020 Chili’s Restaurant Acquisition for details.