Segment Information

12 Months Ended

Jan. 02, 2022

Segment Reporting [Abstract]

Segment Information

The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise.

The Company’s operations are organized by management on the combined basis of line of business and geography. The U.S. stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the U.S. and Canada. Over 90% of the Company's supply chain revenues are attributable to the U.S. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income.

The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2021, 2020 and 2019. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements for the Company's corporate offices.

	U.S. Stores		Supply Chain		International Franchise		Intersegment Revenues			Other			Total
Revenues-
2021	$	1,498,360	$	2,699,863	$	298,036	$	(138,886	)	$	—		$	4,357,373
2020		1,451,003		2,552,795		249,757		(136,144	)		—			4,117,411
2019		1,272,863		2,231,838		240,975		(126,902	)		—			3,618,774
Segment Income-
2021	$	454,875	$	229,877	$	241,873	N/A			$	(42,926	)	$	883,699
2020		435,089		238,420		197,602	N/A				(53,265	)		817,846
2019		361,673		199,844		187,318	N/A				(36,701	)		712,134
Capital Expenditures-
2021	$	13,680	$	37,063	$	—	N/A			$	44,894		$	95,637
2020		15,319		36,229		—	N/A				35,371			86,919
2019		11,793		33,440		131	N/A				43,304			88,668

The following table reconciles total Segment Income to income before provision for income taxes:

	2021			2020			2019
Total Segment Income	$	883,699		$	817,846		$	712,134
Depreciation and amortization		(72,923	)		(65,038	)		(59,930	)
Loss on sale/disposal of assets		(1,189	)		(2,922	)		(2,023	)
Non-cash equity-based compensation expense		(28,670	)		(24,244	)		(20,265	)
Recapitalization-related expenses		(509	)		—			(509	)
Income from operations		780,408			725,642			629,407
Other income		36,758			—			—
Interest income		345			1,654			4,048
Interest expense		(191,806	)		(172,166	)		(150,818	)
Income before provision for income taxes	$	625,705		$	555,130		$	482,637

The following table summarizes the Company’s identifiable asset information by reportable segment as of January 2, 2022 and January 3, 2021:

	January 2, 2022		January 3, 2021
U.S. stores	$	340,984	$	308,088
Supply chain		558,251		520,043
International franchise		41,279		41,408
Unallocated		731,302		697,629
Total assets	$	1,671,816	$	1,567,168

Unallocated assets primarily include cash and cash equivalents, restricted cash and cash equivalents, certain accounts receivable and prepaid expenses, investments in equity securities without readily determinable fair values and marketable securities, certain long-lived assets including certain property, plant and equipment, capitalized software and the operating lease right-of-use asset for the Company’s corporate headquarters and deferred income taxes. Over 95% of the Company's long-lived assets including property, plant and equipment, capitalized software and operating lease right-of-use assets are located in the U.S.

The following table summarizes the Company’s goodwill balance by reportable segment as of January 2, 2022 and January 3, 2021 (in thousands):

	January 2, 2022		January 3, 2021
U.S. stores	$	13,967	$	13,994
Supply chain		1,067		1,067
Consolidated goodwill	$	15,034	$	15,061