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Segment Information
 9 Months Ended
Feb. 25, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52 and Eddie V’s in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business.
The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned The Capital Grille and Eddie V’s restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Cheddar’s Scratch Kitchen, Yard House, Seasons 52 and Bahama Breeze restaurants in the U.S and results from our franchise operations. For periods prior to fiscal 2018, this segment also included results from our consumer-packaged goods sales. Beginning with the first quarter of fiscal 2018, the results from consumer-packaged goods are included in net sales of the associated brand, primarily Olive Garden.
External sales are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments.
Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level earnings). These expenses include food and beverage costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively “restaurant and marketing expenses”). The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:
(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the three months ended February 25, 2018
 
Sales
 
$
1,073.2

 
$
452.8

 
$
164.4

 
$
438.0

 
$
—

 
$
2,128.4

Restaurant and marketing expenses
 
846.5

 
362.9

 
124.1

 
372.5

 
—

 
1,706.0

Segment profit
 
$
226.7

 
$
89.9

 
$
40.3

 
$
65.5

 
$
—

 
$
422.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
33.7

 
$
16.5

 
$
7.9

 
$
21.1

 
$
—

 
$
79.2

Impairments and disposal of assets, net
 
0.1

 
(0.3
)
 
—

 
—

 
(0.1
)
 
(0.3
)
(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the three months ended February 26, 2017
 
Sales
 
$
1,035.1

 
$
434.3

 
$
153.7

 
$
255.6

 
$
—

 
$
1,878.7

Restaurant and marketing expenses
 
817.4

 
349.3

 
117.3

 
210.8

 
—

 
1,494.8

Segment profit
 
$
217.7

 
$
85.0

 
$
36.4

 
$
44.8

 
$
—

 
$
383.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
31.1

 
$
16.4

 
$
7.2

 
$
13.2

 
$
—

 
$
67.9

Impairments and disposal of assets, net
 
0.1

 
—

 
—

 
—

 
(0.8
)
 
(0.7
)


(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the nine months ended February 25, 2018
 
Sales
 
$
3,014.6

 
$
1,245.0

 
$
427.1

 
$
1,259.3

 
$
—

 
$
5,946.0

Restaurant and marketing expenses
 
2,421.2

 
1,031.0

 
340.5

 
1,076.5

 
—

 
4,869.2

Segment profit
 
$
593.4

 
$
214.0

 
$
86.6

 
$
182.8

 
$
—

 
$
1,076.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
99.2

 
$
49.3

 
$
23.5

 
$
62.1

 
$
—

 
$
234.1

Impairments and disposal of assets, net
 
0.1

 
(0.3
)
 
—

 
—

 
(0.9
)
 
(1.1
)
Purchases of land, buildings and equipment
 
125.8

 
55.6

 
21.6

 
87.7

 
4.2

 
294.9

(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the nine months ended February 26, 2017
 
Sales
 
$
2,911.3

 
$
1,185.6

 
$
396.6

 
$
742.1

 
$
—

 
$
5,235.6

Restaurant and marketing expenses
 
2,353.8

 
988.1

 
319.9

 
618.0

 
—

 
4,279.8

Segment profit
 
$
557.5

 
$
197.5

 
$
76.7

 
$
124.1

 
$
—

 
$
955.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
92.3

 
$
49.0

 
$
21.6

 
$
39.6

 
$
—

 
$
202.5

Impairments and disposal of assets, net
 
(1.5
)
 
(0.2
)
 
—

 
(6.1
)
 
(0.6
)
 
(8.4
)
Purchases of land, buildings and equipment
 
97.0

 
43.1

 
31.1

 
40.5

 
2.3

 
214.0



Reconciliation of segment profit to earnings from continuing operations before income taxes:
 
 
Three Months Ended
 
Nine Months Ended
(in millions)
 
February 25, 2018
 
February 26, 2017
 
February 25, 2018
 
February 26, 2017
Segment profit
 
$
422.4

 
$
383.9

 
$
1,076.8

 
$
955.8

Less general and administrative expenses
 
(110.1
)
 
(87.2
)
 
(307.0
)
 
(254.4
)
Less depreciation and amortization
 
(79.2
)
 
(67.9
)
 
(234.1
)
 
(202.5
)
Less impairments and disposal of assets, net
 
0.3

 
0.7

 
1.1

 
8.4

Less interest, net
 
(117.4
)
 
(9.3
)
 
(147.9
)
 
(28.7
)
Earnings before income taxes
 
$
116.0

 
$
220.2

 
$
388.9

 
$
478.6