SEGMENT INFORMATION

12 Months Ended

Jan. 03, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

(11) SEGMENT INFORMATION

The Company has three reportable segments: (i) Domestic Stores; (ii) Supply Chain; and (iii) International Franchise.

In the fourth quarter of 2014 several organizational changes were made within the Company’s management structure, with one of the changes impacting the management of our supply chain operations. As a result, management determined that our previous domestic supply chain segment and the international supply chain operations division of our previous international segment should be combined into a new global supply chain segment. As a result, the Company now reports the following three business segments: Domestic Stores, Supply Chain and International Franchise. While the consolidated results of the Company have not been impacted by this change in our reportable segments, we have restated our historical segment information in order to provide readers of our financial statements a consistent presentation.

The Company’s operations are organized by management on the combined basis of line of business and geography. The Domestic Stores segment includes operations with respect to all franchised and Company-owned stores throughout the contiguous United States. 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 United States and Canada. The International Franchise segment primarily includes operations related to the Company’s franchising business in foreign and non-contiguous United States 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 2015, 2014 and 2013. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Supply Chain segment to the Company-owned stores in the Domestic Stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income and income from operations information below primarily includes corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements. Tabular amounts presented below are in thousands.

	Domestic Stores		Supply Chain		International Franchise		Intersegment Revenues			Other			Total
Revenues-
2015	$	669,724	$	1,495,308	$	163,643	$	(112,147	)		—		$	2,216,528
2014		578,689		1,367,269		152,621		(104,746	)		—			1,993,833
2013		549,783		1,215,573		133,567		(96,700	)		—			1,802,223
Segment Income-
2015	$	240,942	$	127,155	$	130,650		N/A		$	(42,075	)	$	456,672
2014		202,794		111,593		122,497		N/A			(39,255	)		397,629
2013		188,180		103,258		108,615		N/A			(38,105	)		361,948
Income from Operations-
2015	$	233,248	$	117,185	$	130,601		N/A		$	(75,595	)	$	405,439
2014		196,860		102,409		122,626		N/A			(76,534	)		345,361
2013		181,995		94,665		108,704		N/A			(71,553	)		313,811
Capital Expenditures-
2015	$	25,120	$	9,928	$	—		N/A		$	27,317		$	62,365
2014		15,614		15,451		63		N/A			40,662			71,790
2013		9,884		10,900		65		N/A			19,538			40,387

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

	2015			2014			2013
Total Segment Income	$	456,672		$	397,629		$	361,948
Depreciation and amortization		(32,434	)		(35,788	)		(25,783	)
Gains (losses) on sale/disposal of assets		(316	)		1,107			(367	)
Non-cash compensation expense		(17,623	)		(17,587	)		(21,987	)
2015 recapitalization-related expenses		(860	)		—			—
Income from operations		405,439			345,361			313,811
Interest income		313			143			160
Interest expense		(99,537	)		(86,881	)		(88,872	)
Income before provision for income taxes	$	306,215		$	258,623		$	225,099

The following table summarizes the Company’s identifiable asset information as of January 3, 2016 and December 28, 2014:

	2015		2014
Domestic Stores	$	80,619	$	61,759
Domestic supply chain		155,451		146,394
Total domestic assets		236,070		208,153
International Franchise		17,048		17,897
International supply chain		17,300		18,409
Total international assets		34,348		36,306
Unallocated		529,427		351,874
Total consolidated assets	$	799,845	$	596,333

Unallocated assets primarily include cash and cash equivalents, restricted cash, advertising fund assets, investments in marketable securities, certain long-lived assets and deferred income taxes.

The following table summarizes the Company’s goodwill balance as of January 3, 2016 and December 28, 2014:

	2015		2014
Domestic Stores	$	15,030	$	15,230
Supply Chain		1,067		1,067
Consolidated goodwill	$	16,097	$	16,297

Goodwill was reduced by approximately $0.2 million in 2015 in connection with the sale of four Company-owned stores to franchisees. Goodwill was reduced by approximately $0.5 million in 2014 in connection with the sale of 14 Company-owned stores to a domestic franchisee in 2014. Additionally, one Company-owned store was purchased from a franchisee during 2014, resulting in a $0.2 million increase in goodwill.