Business Segment Information

3 Months Ended

Apr. 01, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates three business segments. The Company Bakery-Cafe Operations segment is comprised of the operating activities of the bakery-cafes owned directly and indirectly by the Company. The Company-owned bakery-cafes conduct business under the Panera Bread®, Saint Louis Bread Co.® or Paradise Bakery & Café® names. These bakery-cafes offer some or all of the following: fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, pasta dishes, custom roasted coffees, and other complementary products through on-premise sales, as well as catering.

The Franchise Operations segment is comprised of the operating activities of the franchise business unit, which licenses qualified operators to conduct business under the Panera Bread or Paradise Bakery & Café names and also monitors the operations of these bakery-cafes. Under the terms of most of the agreements, the licensed operators pay royalties and fees to the Company in return for the use of the Panera Bread or Paradise Bakery & Café names.

The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, and cream cheese, and indirectly supplies proprietary sweet goods items through a contract manufacturing arrangement, to Company-owned and franchise-operated bakery-cafes. The fresh dough is sold to a number of both Company-owned and franchise-operated bakery-cafes at a delivered cost generally not to exceed 27 percent of the retail value of the end product. The sales and related costs to the franchise-operated bakery-cafes are separately stated line items in the Consolidated Statements of Comprehensive Income. The sales, costs, and operating profit related to the sales to Company-owned bakery-cafes are eliminated in consolidation in the Consolidated Statements of Comprehensive Income.

Segment information related to the Company’s three business segments is as follows (in thousands):

	For the 13 Weeks Ended
	April 1, 2014			March 26, 2013
Revenues:
Company bakery-cafe operations	$	535,549		$	497,519
Franchise operations	28,892			26,577
Fresh dough and other product operations	86,525			79,989
Intercompany sales eliminations	(45,629		)	(42,306		)
Total revenues	$	605,337		$	561,779
Segment profit:
Company bakery-cafe operations	$	99,124		$	98,406
Franchise operations	27,457			25,058
Fresh dough and other product operations	5,262			5,085
Total segment profit	$	131,843		$	128,549
Depreciation and amortization	$	29,442		$	24,365
Unallocated general and administrative expenses	33,572			26,788
Pre-opening expenses	1,824			1,091
Interest expense	623			302
Other (income) expense, net	(1,212		)	(2,420		)
Income before income taxes	$	67,594		$	78,423
Depreciation and amortization:
Company bakery-cafe operations	$	24,783		$	21,005
Fresh dough and other product operations	2,057			2,014
Corporate administration	2,602			1,346
Total depreciation and amortization	$	29,442		$	24,365
Capital expenditures:
Company bakery-cafe operations	$	31,543		$	28,759
Fresh dough and other product operations	1,798			2,190
Corporate administration	8,960			5,082
Total capital expenditures	$	42,301		$	36,031

	April 1, 2014		December 31, 2013
Segment assets:
Company bakery-cafe operations	$	844,474	$	867,093
Franchise operations	9,688		10,156
Fresh dough and other product operations	61,830		62,854
Total segment assets	$	915,992	$	940,103
Unallocated cash and cash equivalents	$	101,087	$	125,245
Unallocated trade and other accounts receivable	2,197		2,281
Unallocated property and equipment	60,952		53,587
Unallocated deposits and other	3,858		3,865
Other unallocated assets	33,440		55,781
Total assets	$	1,117,526	$	1,180,862

“Unallocated cash and cash equivalents” relates primarily to corporate cash and cash equivalents, “unallocated trade and other accounts receivable” relates primarily to rebates and interest receivable, “unallocated property and equipment” relates primarily to corporate fixed assets, “unallocated deposits and other” relates primarily to insurance deposits, and “other unallocated assets” relates primarily to deferred income taxes.