Segment Information

12 Months Ended

Aug. 31, 2012

Segment Information [Abstract]

Segment Information

13. Segment Information

Operating segments are generally defined as components of an enterprise for which separate discrete financial information is available as the basis for management to allocate resources and assess performance.

Based on internal reporting and management structure, the Company has two reportable segments: Company Drive-Ins and Franchise Operations. The Company Drive-Ins segment consists of the drive-in operations in which the Company owns a controlling ownership interest and derives its revenues from operating drive-in restaurants. The Franchise Operations segment consists of franchising activities and derives its revenues from royalties, initial franchise fees and lease revenues received from franchisees. The accounting policies of the segments are the same as those described in note 1 - Summary of Significant Accounting Policies. Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources between segments.

The following table presents the revenues and income from operations for each reportable segment, along with reconciliation to reported revenue, income from operations and income before income taxes:

		2012			2011			2010
Revenues:
Company Drive-Ins	$	404,443		$	410,820		$	414,369
Franchise Operations		134,588			131,894			132,016
Unallocated revenues		4,699			3,237			4,541
	$	543,730		$	545,951		$	550,926
Income from Operations:
Company Drive-Ins	$	56,973		$	54,584		$	59,710
Franchise Operations		134,588			131,894			132,016
Unallocated income		5,230			3,822			3,778
Unallocated expenses:
Selling, general and administrative		(65,173	)		(64,943	)		(66,847	)
Depreciation and amortization		(41,914	)		(41,225	)		(42,615	)
Provision for impairment of long-lived assets		(764	)		(824	)		(15,161	)
Income from operations		88,940			83,308			70,881
Net interest expense		30,978			54,929			36,073
Income before income taxes	$	57,962		$	28,379		$	34,808