3. Segment Information

The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments.


	Fiscal Quarters Ended June 17, 2018 and June 18, 2017
	Domestic Stores (1)		Supply Chain		International Franchise (2)		Intersegment Revenues			Other			Total
Revenues
2018	$	287,142	$	474,471	$	51,337	$	(33,554	)	$	—		$	779,396
2017		194,833		420,725		43,674		(30,621	)		—			628,611
Income from operations
2018	$	73,193	$	36,494	$	39,104		N/A		$	(22,646	)	$	126,145
2017		64,296		33,304		35,602		N/A			(20,335	)		112,867
Segment Income
2018	$	76,087	$	39,454	$	39,150		N/A		$	(10,241	)	$	144,450
2017		66,895		35,874		35,647		N/A			(10,698	)		127,718

	Two Fiscal Quarters Ended June 17, 2018 and June 18, 2017
	Domestic Stores (1)		Supply Chain		International Franchise (2)		Intersegment Revenues			Other			Total
Revenues
2018	$	580,029	$	948,426	$	103,758	$	(67,446	)	$	—		$	1,564,767
2017		388,279		840,731		85,892		(62,074	)		—			1,252,828
Income from operations
2018	$	148,481	$	73,866	$	80,628		N/A		$	(43,354	)	$	259,621
2017		131,623		69,263		68,776		N/A			(40,761	)		228,901
Segment Income
2018	$	154,431	$	79,610	$	80,721		N/A		$	(19,337	)	$	295,425
2017		136,769		74,388		68,864		N/A			(21,369	)		258,652

(1)

The Domestic Stores segment includes $80.9 million in the second quarter of 2018 and $163.1 million in the two fiscal quarters of 2018 of revenues related to franchise advertising contributions due to the adoption of ASC 606 (Note 13). These contributions did not have an impact on income from operations or Segment Income.

(2)

The International Franchise segment includes $0.6 million in revenues, income from operations and Segment Income in the fiscal quarter ended June 18, 2017 related to franchised stores in Alaska and Hawaii. The International Franchise segment includes $1.2 million in revenues and $1.1 million in income from operations and Segment Income in the two fiscal quarters ended June 18, 2017 related to franchised stores in Alaska and Hawaii. Beginning in the first quarter of 2018, franchised stores in Alaska and Hawaii are managed as part of the Company’s Domestic Stores business and are included in the Domestic Stores segment results.

The following table reconciles Total Segment Income to consolidated income before provision for income taxes.


	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	June 17, 2018			June 18, 2017			June 17, 2018			June 18, 2017
Total Segment Income	$	144,450		$	127,718		$	295,425		$	258,652
Depreciation and amortization		(12,240	)		(10,275	)		(23,310	)		(19,773	)
Losses on sale/disposal of assets		(154	)		(163	)		(519	)		(345	)
Non-cash compensation expense		(5,379	)		(4,413	)		(11,443	)		(9,633	)
Recapitalization-related expenses		(532	)		—			(532	)		—

Income from operations		126,145			112,867			259,621			228,901
Interest income		1,179			276			1,659			387
Interest expense		(36,127	)		(24,611	)		(66,413	)		(50,242	)

Income before provision for income taxes	$	91,197		$	88,532		$	194,867		$	179,046