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. 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 2019, 2018 and 2017. 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 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.


	U.S. Stores (1)		Supply Chain		International Franchise (2)		Intersegment Revenues			Other			Total
Revenues-
2019	$	1,272,863	$	2,231,838	$	240,975	$	(126,902	)		—		$	3,618,774
2018		1,264,823		2,087,408		224,747		(144,111	)		—			3,432,867
2017		842,233		1,874,943		206,708		(135,905	)		—			2,787,979
Segment Income-
2019	$	361,673	$	199,844	$	187,318		N/A		$	(36,701	)	$	712,134
2018		335,989		176,714		174,700		N/A			(43,462	)		643,941
2017		306,406		163,077		161,263		N/A			(46,958	)		583,788
Income from Operations-
2019	$	349,740	$	181,964	$	187,097		N/A		$	(89,394	)	$	629,407
2018		329,044		162,392		174,503		N/A			(94,250	)		571,689
2017		298,852		151,622		161,066		N/A			(90,308	)		521,232
Capital Expenditures-
2019	$	11,793	$	33,440	$	131		N/A		$	43,304		$	88,668
2018		15,717		61,652		134		N/A			42,171			119,674
2017		20,579		34,123		28		N/A			35,527			90,257

(1)

The adoption of ASC 606 in 2018 resulted in the recognition of revenue related to U.S. franchise contributions to DNAF in 2019 and 2018. In prior years, under accounting standards in effect at that time, the Company had presented these contributions net with the related disbursements in its consolidated statement of income. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this accounting standard.

(2)

In 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment. Prior to 2018, royalty revenues from these franchised stores were included in the Company’s International Franchise segment in the table above. Consolidated results of the Company have not been impacted by this change and prior year amounts have not been reclassified to conform to the current year presentation due to immateriality.

The following table reconciles total Segment Income to income before provision for income taxes (in thousands):


	2019			2018			2017
Total Segment Income	$	712,134		$	643,941		$	583,788
Depreciation and amortization		(59,930	)		(53,665	)		(44,369	)
(Loss) gain on sale/disposal of assets		(2,023	)		4,737			3,148
Non-cash compensation expense		(20,265	)		(22,792	)		(20,713	)
Recapitalization-related expenses		(509	)		(532	)		(622	)

Income from operations		629,407			571,689			521,232
Interest income		4,048			3,334			1,462
Interest expense		(150,818	)		(146,345	)		(122,541	)

Income before provision for income taxes	$	482,637		$	428,678		$	400,153

The following table summarizes the Company’s identifiable asset information as of December 29, 2019 and December 30,

2018 (in thousands):


	2019 (1)		2018
U.S. Stores	$	251,844	$	211,554
U.S. supply chain		408,919		283,351

Total U.S. assets		660,763		494,905
International franchise		23,396		21,094
International supply chain		35,745		24,049

Total international assets		59,141		45,143
Unallocated		662,188		367,337

Total assets	$	1,382,092	$	907,385

(1)	The adoption of ASC 842 resulted in the recognition of operating lease right-of-use assets in 2019. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this new accounting standard.

Unallocated assets primarily include cash and cash equivalents, restricted cash and cash equivalents, investments in marketable securities, certain long-lived assets including the operating lease

right-of-use

asset for the Company’s corporate headquarters and deferred income taxes.

The following table summarizes the Company’s goodwill balance as of December 29, 2019 and December 30, 2018 (in thousands):


	2019		2018
U.S. Stores	$	14,026	$	13,852
Supply Chain		1,067		1,067

Consolidated goodwill	$	15,093	$	14,919