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Segment Information (Tables)

9 Months Ended

Sep. 29, 2019

Schedule of Segment Reporting Information, by Segment


	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
(In thousands)	2019		2018		2019		2018
Revenues:
Domestic Company-owned restaurants	$	165,135	$	158,285	$	490,594	$	529,906
North America commissaries		154,703		146,240		450,735		461,408
North America franchising		15,924		12,806		53,215		61,524
International		29,888		30,793		92,808		100,977
All others		38,056		37,107		114,382		111,490
Total revenues	$	403,706	$	385,231	$	1,201,734	$	1,265,305

Intersegment revenues:
North America commissaries	$	47,599	$	46,023	$	140,116	$	153,389
North America franchising		612		464		2,072		2,499
International		—		70		191		213
All others		19,362		14,122		52,758		46,599
Total intersegment revenues	$	67,573	$	60,679	$	195,137	$	202,700

Income (loss) before income taxes:
Domestic Company-owned restaurants (1)	$	9,162	$	(183)	$	21,471	$	15,350
North America commissaries		6,790		6,195		22,094		23,535
North America franchising (2)		14,092		9,394		47,693		53,133
International (3)		4,195		4,519		14,915		10,334
All others		(866)		(2,776)		(2,581)		(5,304)
Unallocated corporate expenses (4)		(32,329)		(37,046)		(92,685)		(74,500)
Elimination of intersegment (profits)		(366)		(331)		(1,037)		(599)
Total income (loss) before income taxes	$	678	$	(20,228)	$	9,870	$	21,949

Property and equipment:
Domestic Company-owned restaurants	$	221,320
North America commissaries		141,105
International		15,737
All others		80,980
Unallocated corporate assets		208,274
Accumulated depreciation and amortization		(455,103)
Property and equipment, net	$	212,313

(1)	Includes refranchising gains of $1.7 million and $1.9 million for the three and nine months ended September 29, 2019, respectively.

(2)	Includes Special charges of $6.4 million and $14.0 million in North America franchising for the three and nine months ended September 29, 2019, respectively. Includes Special charges of $9.9 million in North America franchising for the three and nine months ended September 30, 2018.

(3)	Includes refranchising losses of $1.9 million for the nine months ended September 30, 2018.

(4)Includes Special charges of $7.8 million and $21.4 million in Unallocated corporate expenses for the three and nine months ended September 29, 2019, respectively. Includes Special charges of $14.9 million in Unallocated corporate expenses for the three and nine months ended September 30, 2018.

Schedule of revenue disaggregated by major product line

In the following tables, revenues are disaggregated by major product line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands):


		Reportable Segments
		Three Months Ended September 29, 2019
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	165,135	$	-	$	-	$	-	$	-	$	165,135
Commissary sales		-		202,302		-		15,195		-		217,497
Franchise royalties and fees		-		-		16,536		9,484		-		26,020
Other revenues		-		-		-		5,209		57,418		62,627
Eliminations		-		(47,599)		(612)		-		(19,362)		(67,573)
Total segment revenues	$	165,135	$	154,703	$	15,924	$	29,888	$	38,056	$	403,706
International other revenues (1)		-		-		-		(5,209)		5,209		-
International eliminations (1)		-		-		-		-		-		-
Total revenues	$	165,135	$	154,703	$	15,924	$	24,679	$	43,265	$	403,706

		Reportable Segments
		Three Months Ended September 30, 2018
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	158,285	$	-	$	-	$	-	$	-	$	158,285
Commissary sales		-		192,263		-		16,512		-		208,775
Franchise royalties and fees		-		-		13,270		9,141		-		22,411
Other revenues		-		-		-		5,210		51,229		56,439
Eliminations		-		(46,023)		(464)		(70)		(14,122)		(60,679)
Total segment revenues	$	158,285	$	146,240	$	12,806	$	30,793	$	37,107	$	385,231
International other revenues (1)		-		-		-		(5,210)		5,210		-
International eliminations (1)		-		-		-		70		(70)		-
Total revenues	$	158,285	$	146,240	$	12,806	$	25,653	$	42,247	$	385,231

		Reportable Segments
		Nine Months Ended September 29, 2019
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	490,594	$	-	$	-	$	-	$	-	$	490,594
Commissary sales		-		590,851		-		47,009		-		637,860
Franchise royalties and fees		-		-		55,287		28,834		-		84,121
Other revenues		-		-		-		17,156		167,140		184,296
Eliminations		-		(140,116)		(2,072)		(191)		(52,758)		(195,137)
Total segment revenues	$	490,594	$	450,735	$	53,215	$	92,808	$	114,382	$	1,201,734
International other revenues (1)		-		-		-		(17,156)		17,156		-
International eliminations (1)		-		-		-		191		(191)		-
Total revenues	$	490,594	$	450,735	$	53,215	$	75,843	$	131,347	$	1,201,734

		Reportable Segments
		Nine Months Ended September 30, 2018
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	529,906	$	-	$	-	$	6,237	$	-	$	536,143
Commissary sales		-		614,797		-		51,490		-		666,287
Franchise royalties and fees		-		-		64,023		27,109		-		91,132
Other revenues		-		-		-		16,354		158,089		174,443
Eliminations		-		(153,389)		(2,499)		(213)		(46,599)		(202,700)
Total segment revenues	$	529,906	$	461,408	$	61,524	$	100,977	$	111,490	$	1,265,305
International other revenues (1)		-		-		-		(16,354)		16,354		-
International eliminations (1)		-		-		-		213		(213)		-
Total revenues	$	529,906	$	461,408	$	61,524	$	84,836	$	127,631	$	1,265,305

(1)

Other revenues as reported in the Condensed Consolidated Statements of Operations include $5.2 million and $17.0 million of revenue for the three and nine months ended September 29, 2019, respectively, and $5.1 million and $16.1 million for the three and nine months ended September 30, 2018, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to income before income taxes but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.