Segment Reporting:

3 Months Ended

Apr. 01, 2017

Segment Reporting:

Segment Reporting:

10.  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, as well as provides strategic consulting services related to franchising. 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 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, prepaid expenses, inventory, property and equipment and investment in leasing operations. Unallocated assets include corporate cash and cash equivalents, marketable securities, current and 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:

	Three Months Ended
	April 1, 2017		March 26, 2016
Revenue:
Franchising	$	11,764,200	$	11,667,600
Leasing		5,859,600		4,512,700
Total revenue	$	17,623,800	$	16,180,300
Reconciliation to operating income:
Franchising segment contribution	$	6,142,500	$	5,909,700
Leasing segment contribution		2,992,900		2,128,900
Total operating income	$	9,135,400	$	8,038,600
Depreciation and amortization:
Franchising	$	75,800	$	84,800
Leasing		22,700		24,400
Total depreciation and amortization	$	98,500	$	109,200

	As of
	April 1, 2017		December 31, 2016
Identifiable assets:
Franchising	$	3,208,400	$	3,141,300
Leasing		43,234,600		42,735,600
Unallocated		953,000		2,704,700
Total	$	47,396,000	$	48,581,600