Segment Information (Tables)

12 Months Ended

Dec. 29, 2019

Schedule of Segment Reporting Information, by Segment




(In thousands)	2019		2018		2017
Revenues:			(Note)
Domestic Company-owned restaurants	$	652,053	$	692,380	$	816,718
North America commissaries		612,652		609,866		673,712
North America franchising		71,828		79,293		106,729
International		126,077		131,268		126,285
All others		156,638		150,064		59,915
Total revenues	$	1,619,248	$	1,662,871	$	1,783,359

Intersegment revenues:
North America commissaries	$	187,073	$	201,325	$	244,699
North America franchising		2,782		2,965		3,342
International		191		283		273
All others		88,286		72,066		16,715
Total intersegment revenues	$	278,332	$	276,639	$	265,029

Depreciation and amortization:
Domestic Company-owned restaurants	$	12,883	$	15,411	$	15,484
North America commissaries		8,131		7,397		6,897
International		1,722		1,696		2,018
All others		10,738		8,513		5,276
Unallocated corporate expenses		13,807		13,386		13,993
Total depreciation and amortization	$	47,281	$	46,403	$	43,668

Income (loss) before income taxes:
Domestic Company-owned restaurants (1)	$	33,957	$	18,988	$	47,548
North America commissaries (2)		30,439		27,961		47,844
North America franchising (3)		64,362		70,732		96,298
International (4)		19,110		14,399		15,888
All others (2)		(2,500)		(6,082)		(179)
Unallocated corporate expenses (2)(5)		(139,355)		(118,296)		(66,099)
Elimination of intersegment (profits)		(967)		(1,005)		(958)
Total income before income taxes	$	5,046	$	6,697	$	140,342

Note: Fiscal year 2018 has been restated to reflect the consolidation of Papa John’s Marketing Fund, Inc. See Note 2 under the heading “Restatement of Previously Issued Consolidated Financial Statements for Immaterial Error Correction” for more details.

(1)	Includes $4.7 million and $1.6 million of refranchising gains/(losses), net in 2019 and 2018, respectively. See Note 12 for additional information.

(2)The Company refined its overhead allocation process in 2018 resulting in transfers of expenses from Unallocated corporate expenses of $13.2 million to other segments, primarily North America commissaries of $7.9 million and All others of $3.5 million for the year ended December 30, 2018.

(3)	Includes Special charges of $19.1 million and $15.4 million for the years ended December 29, 2019 and December 30, 2018, respectively. See Note 19 for additional information.

(4)	Includes a $1.9 million net loss associated with refranchising in 2018, and a $1.7 million impairment loss in 2017. See Note 12 for additional information.

(5)	Includes Special charges of $41.3 million and $35.3 million for the years ended December 29, 2019 and December 30, 2018, respectively. See Note 19 for additional information.


(In thousands)	2019		2018		2017

Property and equipment:
Domestic Company-owned restaurants	$	221,420	$	236,526	$	235,640
North America commissaries		142,946		140,309		136,701
International		16,031		17,218		17,257
All others		84,167		71,880		58,977
Unallocated corporate assets		211,842		199,239		191,924
Accumulated depreciation and amortization		(464,665)		(438,278)		(406,168)
Net property and equipment	$	211,741	$	226,894	$	234,331

Expenditures for property and equipment:
Domestic Company-owned restaurants	$	8,811	$	13,568	$	15,245
North America commissaries		3,773		3,994		14,767
International		1,143		986		1,884
All others		11,541		13,438		8,239
Unallocated corporate		12,443		10,042		12,458
Total expenditures for property and equipment	$	37,711	$	42,028	$	52,593

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
		Year Ended December 29, 2019
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	652,053	$	-	$	-	$	-	$	-	$	652,053
Commissary sales		-		799,725		-		64,179		-		863,904
Franchise royalties and fees		-		-		74,610		38,745		-		113,355
Other revenues		-		-		-		23,344		244,924		268,268
Eliminations		-		(187,073)		(2,782)		(191)		(88,286)		(278,332)
Total segment revenues	$	652,053	$	612,652	$	71,828	$	126,077	$	156,638	$	1,619,248
International other revenues (1)		-		-		-		(23,344)		23,344		-
International eliminations (1)		-		-		-		191		(191)		-
Total revenues	$	652,053	$	612,652	$	71,828	$	102,924	$	179,791	$	1,619,248

		Reportable Segments
		Year Ended December 30, 2018 (Note)
Major Products/Services Lines		Domestic Company-owned restaurants		North America commissaries		North America franchising		International		All others		Total
Company-owned restaurant sales	$	692,380	$	-	$	-	$	6,237	$	-	$	698,617
Commissary sales		-		811,191		-		68,124		-		879,315
Franchise royalties and fees		-		-		82,258		35,988		-		118,246
Other revenues		-		-		-		21,202		222,130		243,332
Eliminations		-		(201,325)		(2,965)		(283)		(72,066)		(276,639)
Total segment revenues	$	692,380	$	609,866	$	79,293	$	131,268	$	150,064	$	1,662,871
International other revenues (1)		-		-		-		(21,202)		21,202		-
International eliminations (1)		-		-		-		283		(283)		-
Total revenues	$	692,380	$	609,866	$	79,293	$	110,349	$	170,983	$	1,662,871

(1)Other revenues as reported in the Consolidated Statements of Operations include $23.2 million and $20.9 million of revenue for the years ended December 29, 2019 and December 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 Consolidated Statements of Operations.