Business Segment Information

3 Months Ended

Mar. 29, 2016

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 & 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 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
	March 29, 2016			March 31, 2015
Revenues:
Company bakery-cafe operations	$	598,784		$	573,676
Franchise operations	37,852			32,393
Fresh dough and other product operations	95,899			90,124
Intercompany sales eliminations	(47,382		)	(47,689		)
Total revenues	$	685,153		$	648,504
Segment profit:
Company bakery-cafe operations (1)	$	99,115		$	85,998
Franchise operations	36,452			31,079
Fresh dough and other product operations	6,299			6,169
Total segment profit	$	141,866		$	123,246
Depreciation and amortization	$	36,257		$	33,947
Unallocated general and administrative expenses	46,782			36,453
Pre-opening expenses	2,196			1,649
Interest expense	1,739			486
Other (income) expense, net	(251		)	(184		)
Income before income taxes	$	55,143		$	50,895
Depreciation and amortization:
Company bakery-cafe operations	$	27,697		$	27,335
Fresh dough and other product operations	2,105			2,309
Corporate administration	6,455			4,303
Total depreciation and amortization	$	36,257		$	33,947
Capital expenditures:
Company bakery-cafe operations	$	34,878		$	35,518
Fresh dough and other product operations	5,925			994
Corporate administration	9,770			13,062
Total capital expenditures	$	50,573		$	49,574

(1) Includes refranchising losses of $1.1 million and $8.9 million for the thirteen weeks ended March 29, 2016 and March 31, 2015, respectively.

	March 29, 2016		December 29, 2015
Segment assets:
Company bakery-cafe operations	$	917,216	$	953,717
Franchise operations	13,689		13,049
Fresh dough and other product operations	82,128		75,634
Total segment assets	$	1,013,033	$	1,042,400
Unallocated cash and cash equivalents	$	159,985	$	241,886
Unallocated trade and other accounts receivable	3,096		2,968
Unallocated property and equipment	110,102		107,333
Unallocated deposits and other	6,124		6,660
Other unallocated assets	23,978		39,592
Total assets	$	1,316,318	$	1,440,839

“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 refundable income taxes.