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Segment Information

12 Months Ended

Dec. 31, 2019

19. Segment Information

Our operating segments are comprised of The Cheesecake Factory, North Italia, Flower Child, the other FRC brands, our bakery division and Grand Lux Cafe, the businesses for which our management reviews discrete financial information for decision-making purposes. Based on quantitative thresholds set forth in ASC 280, “Segment Reporting,” The Cheesecake Factory, North Italia and the other FRC brands are the only businesses that meet the criteria of a reportable operating segment. The remaining operating segments, including Flower Child, along with our businesses that don’t qualify as operating segments are combined in Other. Unallocated corporate expenses, capital expenditures and assets, which were previously classified in a separate Corporate line, are also combined in Other. In addition, gift card costs, which were previously classified in The Cheesecake Factory restaurants reportable segment, are combined in Other. Corresponding prior year balances were reclassified to conform to the current year presentation.

Segment information is presented below (in thousands):


	Fiscal Year
	2019 ⁽¹⁾		2018		2017
Revenues:
The Cheesecake Factory restaurants	$	2,180,882	$	2,127,347	$	2,057,816
North Italia		35,268		—		—
Other FRC		39,335		—		—
Other		227,207		204,984		202,686
Total	$	2,482,692	$	2,332,331	$	2,260,502
Income/(loss) from operations:
The Cheesecake Factory restaurants ⁽²⁾	$	258,374	$	270,829	$	281,715
North Italia		1,608		—		—
Other FRC		5,309		—		—
Other ⁽³⁾		(161,693)		(151,881)		(128,870)
Total	$	103,598	$	118,948	$	152,845
Depreciation and amortization:
The Cheesecake Factory restaurants	$	70,971	$	80,646	$	76,186
North Italia		829		—		—
Other FRC		1,037		—		—
Other		15,296		15,330		16,543
Total	$	88,133	$	95,976	$	92,729
Preopening costs:
The Cheesecake Factory restaurants	$	9,967	$	9,247	$	10,891
North Italia		1,297		—		—
Other FRC		49		—		—
Other		1,836		1,690		2,387
Total	$	13,149	$	10,937	$	13,278
Capital expenditures:
The Cheesecake Factory restaurants	$	59,045	$	71,880	$	101,142
North Italia		2,318		—		—
Other FRC		5,072		—		—
Other		7,330		31,029		19,637
Total	$	73,765	$	102,909	$	120,779
Total assets:
The Cheesecake Factory restaurants	$	1,701,418	$	928,345	$	937,512
North Italia		297,840		—		—
Other FRC		310,414		—		—
Other		530,921		385,788		395,548
Total	$	2,840,593	$	1,314,133	$	1,333,060

(1)

We completed the acquisition of North Italia and the remaining business of FRC on October 2, 2019. The results of the acquired businesses are included in our consolidated financial statements as of the acquisition date. (See Note 2 for further discussion of the Acquisition.)

(2)

Fiscal years 2019, 2018 and 2017 include impairment of assets and lease terminations expense of $8.9 million, $6.6 million and $2.5 million, respectively. (See Note 1 for further discussion of these charges.)

(3)

Fiscal years 2019, 2018 and 2017 include impairment of assets and lease terminations expense of $9.3 million, $11.3 million and $7.8 million, respectively. (See Note 1 for further discussion of these charges.) Fiscal 2019 included $6.3 million of acquisition-related costs and acquisition-related contingent consideration, compensation and amortization expense. (See Note 2 for further discussion of the Acquisition.)