Segment Information

9 Months Ended

Oct. 01, 2013

Segment Information

Segment Information

8.  Segment Information

For decision-making purposes, our management reviews discrete financial information for The Cheesecake Factory, Grand Lux Cafe and RockSugar Pan Asian Kitchen restaurants, our bakery division and our international licensing operations.  Based on quantitative thresholds set forth in ASC 280, “Segment Reporting,” The Cheesecake Factory is our only business that meets the criteria of a reportable operating segment.  We formerly disclosed segment information for our bakery operations.  However, as we expanded our domestic restaurants and international licensing arrangements, our bakery segment became a smaller proportion of our operations and now falls below the thresholds of a reportable segment.  Therefore, we are no longer reporting this component separately. Grand Lux Cafe, RockSugar Pan Asian Kitchen and international licensing were previously combined with The Cheesecake Factory in a segment named Restaurants. These components are now combined with our bakery operations in Other. Unallocated corporate expenses, assets and capital expenditures are presented below as reconciling items to the amounts presented in the consolidated financial statements.

Segment information is presented below (in thousands):

	Thirteen Weeks Ended October 1, 2013			Thirteen Weeks Ended October 2, 2012			Thirty-nine Weeks Ended October 1, 2013			Thirty-nine Weeks Ended October 2, 2012
Revenues:
The Cheesecake Factory restaurants	$	425,084		$	402,493		$	1,262,480		$	1,202,173
Other	44,615			51,326			140,355			142,149
Total	$	469,699		$	453,819		$	1,402,835		$	1,344,322
Income from operations:
The Cheesecake Factory restaurants (1)	$	61,686		$	55,771		$	183,641		$	174,402
Other (2)	4,727			2,761			14,333			9,490
Corporate	(27,782		)	(19,208		)	(81,386		)	(73,379		)
Total	$	38,631		$	39,324		$	116,588		$	110,513
Depreciation and amortization:
The Cheesecake Factory restaurants	$	15,826		$	15,163		$	46,892		$	45,208
Other	2,634			2,518			7,859			7,174
Corporate	1,201			1,052			3,355			3,158
Total	$	19,661		$	18,733		$	58,106		$	55,540
Capital expenditures:
The Cheesecake Factory restaurants	$	26,842		$	20,900		$	60,837		$	41,700
Other	1,604			2,899			3,087			13,016
Corporate	1,135			6,393			3,174			9,895
Total	$	29,581		$	30,192		$	67,098		$	64,611

	October 1, 2013		January 1, 2013
Total assets:
The Cheesecake Factory restaurants	$	753,740	$	764,208
Other	161,399		165,274
Corporate	185,999		162,685
Total	$	1,101,138	$	1,092,167

(1) In the second and third quarters of fiscal 2013, we incurred $1.5 million and $1.1 million, respectively, of impairment and accelerated depreciation expense related to the planned relocation of four The Cheesecake Factory restaurants.  These items were recorded in impairment of assets and lease terminations.

(2) Includes $0.6 million in future rent and other closing costs in the first quarter of fiscal 2013 for three Grand Lux Cafe locations where we discontinued operations in March 2013.  This item was recorded in impairment of assets and lease terminations.