20. Segment Information

We have five reportable segments for all years presented: domestic Company-owned restaurants, North America 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 poppers and wings, dessert items and canned or bottled beverages. The North America 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 in the United States and Canada. 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 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)	2017		2016			2015
Revenues
Domestic Company-owned restaurants	$	816,718	$	815,931	$	756,307
North America commissaries		673,712		623,883		615,610
North America franchising		106,729		102,980		96,056
International		126,285		113,103		104,691
All others		59,915		57,723		64,711
Total revenues	$	1,783,359	$	1,713,620	$	1,637,375

Intersegment revenues:
North America commissaries	$	244,699	$	236,896	$	224,067
North America franchising		3,342		2,869		2,690
International		273		269		292
All others		16,715		16,410		14,821
Total intersegment revenues	$	265,029	$	256,444	$	241,870

Depreciation and amortization:
Domestic Company-owned restaurants	$	15,484	$	16,028	$	14,841
North America commissaries		6,897		6,027		6,205
International		2,018		2,188		2,935
All others		5,276		3,830		4,829
Unallocated corporate expenses		13,993		12,914		11,497
Total depreciation and amortization	$	43,668	$	40,987	$	40,307

Income (loss) before income taxes:
Domestic Company-owned restaurants (1)	$	47,548	$	75,136	$	56,452
North America commissaries		47,844		46,325		44,721
North America franchising		96,298		91,669		83,315
International (2)		15,888		11,408		10,891
All others		(179)		1,467		845
Unallocated corporate expenses (3)		(66,099)		(64,791)		(75,896)
Elimination of intersegment profit and losses		(958)		(2,405)		(1,181)
Total income before income taxes	$	140,342	$	158,809	$	119,147

(1)

Includes an $11.6 million refranchising gain in 2016. See Note 7 for additional information.

(2)

Includes a $1.7 million and $1.4 million impairment loss in 2017 and 2016, respectively. See Note 7 for additional information.

(3)

Includes an $898,000 legal settlement in 2016 and a ($12.3) million legal settlement in 2015. See Note 17 for additional information.


(In thousands)	2017		2016		2015

Property and equipment:
Domestic Company-owned restaurants	$	235,640	$	225,081	$	223,246
North America commissaries		136,701		128,469		110,344
International		17,257		15,673		14,826
All others		58,977		55,586		47,481
Unallocated corporate assets		191,924		192,548		179,665
Accumulated depreciation and amortization		(406,168)		(386,884)		(361,518)
Net property and equipment	$	234,331	$	230,473	$	214,044

Expenditures for property and equipment:
Domestic Company-owned restaurants	$	15,245	$	16,257	$	14,631
North America commissaries		14,767		14,164		3,924
International		1,884		4,390		4,540
All others		8,239		7,897		4,701
Unallocated corporate		12,458		12,846		11,176
Total expenditures for property and equipment	$	52,593	$	55,554	$	38,972