SEGMENT INFORMATION

6 Months Ended

Dec. 28, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT INFORMATION

Our operating segments are Chili's and Maggiano's. The Chili’s segment includes the results of our company-owned Chili’s restaurants in the U.S. and Canada as well as the results from our domestic and international franchise business. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants.

Company sales are derived principally from the sales of food and beverages. Franchise and other revenues primarily includes royalties, development fees, franchise fees, banquet service charge income, gift card breakage and discounts, tabletop device revenue, Chili's retail food product royalties and delivery fee income. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly in the U.S. There were no material transactions amongst our operating segments.

Our chief operating decision maker uses operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Operational expenses include food and beverage costs, restaurant labor costs and restaurant expenses. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands):

	Thirteen Week Period Ended December 28, 2016
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	632,085	$	116,624	$	0		$	748,709
Franchise and other revenues	15,278		7,056		0			22,334
Total revenues	647,363		123,680		0			771,043
Operational expenses (a)	537,170		98,098		92			635,360
Depreciation and amortization	32,643		4,055		2,607			39,305
General and administrative	9,414		1,688		22,444			33,546
Other gains and charges	2,943		12		(1,649		)	1,306
Total operating costs and expenses	582,170		103,853		23,494			709,517
Operating income	$	65,193	$	19,827	$	(23,494	)	$	61,526

	Thirteen Week Period Ended December 23, 2015
	Chili's			Maggiano's			Other			Consolidated
Company sales	$	651,004		$	114,668		$	0		$	765,672
Franchise and other revenues	15,543			7,395			0			22,938
Total revenues	666,547			122,063			0			788,610
Operational expenses (a)	545,569			97,519			(1,033		)	642,055
Depreciation and amortization	32,915			3,673			2,526			39,114
General and administrative	9,295			1,513			21,101			31,909
Other gains and charges	(166		)	(7		)	86			(87		)
Total operating costs and expenses	587,613			102,698			22,680			712,991
Operating income	$	78,934		$	19,365		$	(22,680	)	$	75,619

	Twenty-Six Week Period Ended December 28, 2016
	Chili's		Maggiano's		Other			Consolidated
Company sales	$	1,280,728	$	205,391	$	0		$	1,486,119
Franchise and other revenues	32,193		11,223		0			43,416
Total revenues	1,312,921		216,614		0			1,529,535
Operational expenses (a)	1,092,740		181,683		452			1,274,875
Depreciation and amortization	65,244		7,941		5,006			78,191
General and administrative	19,344		3,212		43,527			66,083
Other gains and charges	4,869		746		1,769			7,384
Total operating costs and expenses	1,182,197		193,582		50,754			1,426,533
Operating income	$	130,724	$	23,032	$	(50,754	)	$	103,002
Segment assets	$	1,189,921	$	168,440	$	139,744		$	1,498,105
Equity method investment	9,267		0		0			9,267
Payments for property and equipment	45,618		8,116		6,321			60,055

	Twenty-Six Week Period Ended December 23, 2015
	Chili's			Maggiano's		Other			Consolidated
Company sales	$	1,304,055		$	202,098	$	0		$	1,506,153
Franchise and other revenues	33,145			11,871		0			45,016
Total revenues	1,337,200			213,969		0			1,551,169
Operational expenses (a)	1,094,335			180,660		(587		)	1,274,408
Depreciation and amortization	66,046			7,307		4,932			78,285
General and administrative	18,714			3,326		42,980			65,020
Other gains and charges	(1,108		)	166		2,532			1,590
Total operating costs and expenses	1,177,987			191,459		49,857			1,419,303
Operating income	$	159,213		$	22,510	$	(49,857	)	$	131,866
Segment assets	$	1,243,430		$	168,733	$	164,031		$	1,576,194
Equity method investment	11,131			0		0			11,131
Payments for property and equipment	35,688			10,272		6,239			52,199

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(a) Operational expenses includes cost of sales, restaurant labor and restaurant expenses.

Reconciliation of operating income to income before provision for income taxes:

	Thirteen Week Periods Ended						Twenty-Six Week Periods Ended
	December 28, 2016			December 23, 2015			December 28, 2016			December 23, 2015
Operating income	$	61,526		$	75,619		$	103,002		$	131,866
Less interest expense	(13,641		)	(7,907		)	(22,450		)	(15,674		)
Plus other, net	383			560			682			833
Income before provision for income taxes	$	48,268		$	68,272		$	81,234		$	117,025