Segment Reporting

12 Months Ended

Dec. 29, 2012

Segment Reporting

Segment Reporting

12.          Segment Reporting

The Company currently has two reportable business segments, franchising and leasing.  The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise.  The leasing segment includes (i) Winmark Capital Corporation, a middle-market equipment leasing business and (ii) Wirth Business Credit, Inc., a small-ticket financing business.  Segment reporting is intended to give financial statement users a better view of the how the Company manages and evaluates its businesses.   The Company’s internal management reporting is the basis for the information disclosed for its business segments and includes allocation of shared-service costs.  Segment assets are those that are directly used in or identified with segment operations, including cash, accounts receivable, prepaids, inventory, property and equipment and investment in leasing operations.  Unallocated assets include corporate cash and cash equivalents, marketable securities, current and long-term investments, deferred tax amounts and other corporate assets.  Inter-segment balances and transactions have been eliminated.  The following tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income:

	Year Ended
	December 29, 2012		December 31, 2011
Revenue:
Franchising	$	38,731,300	$	34,923,300
Leasing	13,211,800		16,411,700
Total revenue	$	51,943,100	$	51,335,000
Reconciliation to operating income:
Franchising segment contribution	$	20,705,100	$	18,389,300
Leasing segment contribution	6,594,000		6,458,300
Total operating income	$	27,299,100	$	24,847,600
Depreciation:
Franchising	$	337,200	$	371,800
Leasing	96,100		107,300
Total depreciation	$	433,300	$	479,100

	As of
	December 29, 2012		December 31, 2011
Identifiable assets:
Franchising	$	2,957,200	$	7,753,200
Leasing	37,622,800		33,374,000
Unallocated	2,958,800		6,618,500
Total	$	43,538,800	$	47,745,700

Revenues are all generated from United States operations other than franchising revenues from Canadian operations of $2.5 million in each of fiscal 2012 and 2011.  All long-lived assets are located within the United States.