Business Segment Information

9 Months Ended

Sep. 29, 2015

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 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 & Cafe 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 & Cafe 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 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 Income.

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

	For the 13 Weeks Ended						For the 39 Weeks Ended
	September 29, 2015			September 30, 2014			September 29, 2015			September 30, 2014
Revenues:
Company bakery-cafe operations	$	584,664		$	545,393		$	1,756,464		$	1,636,587
Franchise operations	33,740			30,585			98,952			89,950
Fresh dough and other product operations	96,198			92,789			284,089			275,353
Intercompany sales eliminations	(49,948		)	(48,877		)	(149,690		)	(145,192		)
Total revenues	$	664,654		$	619,890		$	1,989,815		$	1,856,698
Segment profit:
Company bakery-cafe operations (1)	$	87,513		$	90,292		$	266,456		$	290,713
Franchise operations	32,461			29,214			95,219			85,403
Fresh dough and other product operations	4,607			4,812			16,238			16,319
Total segment profit	$	124,581		$	124,318		$	377,913		$	392,435
Depreciation and amortization	$	33,885		$	31,187		$	100,167		$	90,681
Unallocated general and administrative expenses	36,296			33,089			99,782			97,565
Pre-opening expenses	2,298			2,083			6,253			5,283
Interest expense	1,363			462			2,266			1,386
Other (income) expense, net	(55		)	(719		)	948			(5,934		)
Income before income taxes	$	50,794		$	58,216		$	168,497		$	203,454
Depreciation and amortization:
Company bakery-cafe operations	$	26,004		$	25,593		$	78,698		$	75,791
Fresh dough and other product operations	2,321			2,141			6,855			6,295
Corporate administration	5,560			3,453			14,614			8,595
Total depreciation and amortization	$	33,885		$	31,187		$	100,167		$	90,681
Capital expenditures:
Company bakery-cafe operations	$	39,756		$	47,896		$	117,866		$	112,127
Fresh dough and other product operations	3,217			2,534			7,710			9,101
Corporate administration	5,472			14,175			27,725			34,120
Total capital expenditures	$	48,445		$	64,605		$	153,301		$	155,348

(1) Includes refranchising losses of $2.2 million and $11.7 million for the thirteen and thirty-nine weeks ended September 29, 2015, respectively.

	September 29, 2015		December 30, 2014
Segment assets:
Company bakery-cafe operations	$	950,708	$	953,896
Franchise operations	11,565		13,145
Fresh dough and other product operations	74,556		65,219
Total segment assets	$	1,036,829	$	1,032,260
Unallocated cash and cash equivalents	$	275,177	$	196,493
Unallocated trade and other accounts receivable	5,552		3,104
Unallocated property and equipment	103,628		84,224
Unallocated deposits and other	8,339		3,575
Other unallocated assets	53,689		71,030
Total assets	$	1,483,214	$	1,390,686

“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 current and deferred income taxes.