Segment Reporting

6 Months Ended

Dec. 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 and six months ended December 27, 2020 and December 29, 2019 (in thousands):

	Three Months Ended						Six Months Ended
	December 27, 2020			December 29, 2019			December 27, 2020			December 29, 2019
Net sales and operating revenues:
Pizza Inn Franchising	$	1,624		$	1,648		$	3,004		$	3,512
Pie Five Franchising		456			1,021			932			1,873
Company-Owned Restaurants		—			96			—			204
Corporate administration and other		48			65			95			117
Consolidated revenues	$	2,128		$	2,830		$	4,031		$	5,706
Depreciation and amortization:
Pizza Inn Franchising	$	—		$	—		$	—		$	—
Pie Five Franchising		—			—			—			—
Company-Owned Restaurants		—			—			—			—
Combined		—			—			—			—
Corporate administration and other		43			49			87			96
Depreciation and amortization	$	43		$	49		$	87		$	96
Income before taxes:
Pizza Inn Franchising	$	1,284		$	1,323		$	2,384		$	2,735
Pie Five Franchising		190			508			399			946
Company-Owned Restaurants		(79	)		(236	)		(179	)		(439	)
Combined		1,395			1,595			2,604			3,242
Corporate administration and other		(1,291	)		(1,585	)		(2,422	)		(2,922	)
Income before taxes	$	104		$	10		$	182		$	320
Geographic information (revenues):
United States	$	2,074		$	2,778		$	3,933		$	5,595
Foreign countries		54			52			98			111
Consolidated total	$	2,128		$	2,830		$	4,031		$	5,706