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Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

15. Segment Information

Our operating segments, the businesses for which our management reviews discrete financial information for decision-making purposes, are comprised of The Cheesecake Factory, North Italia, Flower Child, the Other FRC brands, our bakery division and Grand Lux Cafe. Based on quantitative thresholds set forth in FASB Accounting Standards Codification (“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 (Flower Child, our bakery division and Grand Lux Cafe) along with our businesses that don’t qualify as operating segments, including RockSugar Southeast Asian Kitchen, Social Monk Asian Kitchen and our international business, 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):


	Thirteen		Thirteen		Twenty-Six		Twenty-Six
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	June 30, 2020		July 2, 2019		June 30, 2020		July 2, 2019
Revenues:
The Cheesecake Factory restaurants	$	241,068	$	551,519	$	729,539	$	1,100,152
North Italia		13,759		—		44,271		—
Other FRC		12,208		—		47,791		—
Other		28,816		51,126		89,356		101,974
Total	$	295,851	$	602,645	$	910,957	$	1,202,126

Income/(loss) from operations: ⁽¹⁾
The Cheesecake Factory restaurants	$	(26,951)	$	73,610	$	12,373	$	139,549
North Italia		(4,405)		—		(76,491)		—
Other FRC		(5,212)		—		(75,176)		—
Other		(47,142)		(33,511)		(134,474)		(69,302)
Total	$	(83,710)	$	40,099	$	(273,768)	$	70,247

Depreciation and amortization:
The Cheesecake Factory restaurants	$	16,867	$	18,004	$	34,144	$	35,612
North Italia		901		—		1,866		—
Other FRC		814		—		2,015		—
Other		4,008		3,655		8,127		7,409
Total	$	22,590	$	21,659	$	46,152	$	43,021

Capital expenditures:
The Cheesecake Factory restaurants	$	12,116	$	14,839	$	20,714	$	26,731
North Italia		30		—		2,994		—
Other FRC		687		—		1,791		—
Other		816		1,181		3,925		2,640
Total	$	13,649	$	16,020	$	29,424	$	29,371

Preopening costs:
The Cheesecake Factory restaurants	$	767	$	1,956	$	2,181	$	3,437
North Italia		311		—		1,264		—
Other FRC		380		—		221		—
Other		639		219		1,550		868
Total	$	2,097	$	2,175	$	5,216	$	4,305


	June 30, 2020		December 31, 2019
Total assets: ⁽¹⁾
The Cheesecake Factory restaurants	$	1,656,694	$	1,701,418
North Italia		257,657		297,840
Other FRC		293,242		310,414
Other		659,688		530,921
Total	$	2,867,281	$	2,840,593

(1)

During the first quarter of fiscal 2020, we recorded impairment of assets and lease terminations expense of $0.6 million for The Cheesecake Factory restaurants, $71.5 million for North Italia, $72.9 million for Other FRC and $46.8 million for Other (See Note 3 and 4 for further discussion of these charges.) During the second quarter of fiscal 2020, we recorded impairment of assets and lease terminations expense of $2.4 million related to lease termination costs for one The Cheesecake Factory restaurant.