Segment Information

12 Months Ended

Dec. 28, 2014

Segment Information

Segment Information

20.  Segment Information

We have five reportable segments for all years presented: domestic Company-owned restaurants, domestic commissaries, North America franchising, international operations, and “all other” units. The domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is defined as contiguous United States) Company-owned restaurants and derives its revenues principally from retail sales of pizza and side items, including breadsticks, cheesesticks, chicken poppersand wings, dessert items and canned or bottled beverages. The domestic commissary segment consists of the operations of our regional dough production and product distribution centers and derives its revenues principally from the sale and distribution of food and paper products to domestic Company-owned and franchised restaurants. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and collection of royalties from our franchisees located in the United States and Canada. The international operations segment principally consists of our Company-owned restaurants in China and distribution sales to franchised Papa John’s restaurants located in the United Kingdom, Mexico and China and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees. International franchisees are defined as all franchise operations outside of the United States and Canada. All other business units that do not meet the quantitative thresholds for determining reportable segments, which are not operating segments, we refer to as our “all other” segment, which consists of operations that derive revenues from the sale, principally to Company-owned and franchised restaurants, of printing and promotional items, risk management services, and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms.

Generally, we evaluate performance and allocate resources based on profit or loss from operations before income taxes and intercompany eliminations. Certain administrative and capital costs are allocated to segments based upon predetermined rates or actual estimated resource usage. We account for intercompany sales or transfers as if the sales or transfers were to third parties and eliminate the activity in consolidation.

Our reportable segments are business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. No single external customer accounted for 10% or more of our consolidated revenues. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2).

Our segment information is as follows:

(In thousands)	2014			2013			2012
Revenues from external customers:
Domestic Company-owned restaurants	$	701,854		$	635,317		$	592,203
Domestic commissaries	629,492			578,870			545,924
North America franchising	90,169			82,873			80,373
International	102,455			88,640			72,930
All others	74,179			53,322			51,223
Total revenues from external customers	$	1,598,149		$	1,439,022		$	1,342,653
Intersegment revenues:
Domestic commissaries	$	220,406		$	191,756		$	171,212
North America franchising	2,400			2,222			2,267
International	320			280			229
All others	22,851			14,197			11,606
Total intersegment revenues	$	245,977		$	208,455		$	185,314
Depreciation and amortization:
Domestic Company-owned restaurants	$	13,829		$	13,284		$	13,242
Domestic commissaries	6,776			5,690			4,738
International	3,903			3,966			2,824
All others	6,156			5,320			4,801
Unallocated corporate expenses	9,301			6,845			7,193
Total depreciation and amortization	$	39,965		$	35,105		$	32,798
Income (loss) before income taxes:
Domestic Company-owned restaurants	$	40,969		$	34,590		$	38,114
Domestic commissaries	39,317			37,804			34,317
North America franchising	77,009			70,201			69,332
International	7,250			2,803			3,063
All others	(9		)	3,490			2,889
Unallocated corporate expenses	(49,440		)	(41,025		)	(48,958		)
Elimination of intersegment profits	(841		)	(1,754		)	(362		)
Total income before income taxes	$	114,255		$	106,109		$	98,395

(In thousands)	2014			2013			2012
Property and equipment:
Domestic Company-owned restaurants	$	208,488		$	195,526		$	184,322
Domestic commissaries	107,992			104,509			101,082
International	25,443			27,225			22,389
All others	46,013			41,064			37,221
Unallocated corporate assets	169,105			158,462			142,950
Accumulated depreciation and amortization	(337,584		)	(314,689		)	(291,303		)
Net property and equipment	$	219,457		$	212,097		$	196,661
Expenditures for property and equipment:
Domestic Company-owned restaurants	$	23,475		$	13,149		$	9,319
Domestic commissaries	5,756			9,791			14,314
International	1,708			3,754			4,865
All others	5,906			4,689			3,342
Unallocated corporate	11,810			19,367			10,788
Total expenditures for property and equipment	$	48,655		$	50,750		$	42,628