Business Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates three business segments. The Company Bakery-Cafe Operations segment is comprised of the operating activities of the bakery-cafes owned directly and indirectly by the Company. The Company-owned bakery-cafes conduct business under the Panera Bread®, Saint Louis Bread Co.® or Paradise Bakery & Café® names. These bakery-cafes offer some or all of the following: fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, pasta dishes, custom roasted coffees, and other complementary products through on-premise sales, as well as catering.

The Franchise Operations segment is comprised of the operating activities of the franchise business unit, which licenses qualified operators to conduct business under the Panera Bread or Paradise Bakery & Café names and also monitors the operations of these bakery-cafes. Under the terms of most of the agreements, the licensed operators pay royalties and fees to the Company in return for the use of the Panera Bread or Paradise Bakery & Café names.

The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, and cream cheese, and indirectly supplies proprietary sweet goods items through a contract manufacturing arrangement, to Company-owned and franchise-operated bakery-cafes. The fresh dough is sold to a number of both Company-owned and franchise-operated bakery-cafes at a delivered cost generally not to exceed 27 percent of the retail value of the end product. The sales and related costs to the franchise-operated bakery-cafes are separately stated line items in the Consolidated Statements of Comprehensive Income. The sales, costs, and operating profit related to the sales to Company-owned bakery-cafes are eliminated in consolidation in the Consolidated Statements of Comprehensive Income.

Segment information related to the Company’s three business segments is as follows (in thousands):

	For the 13 Weeks Ended						For the 39 Weeks Ended
	September 30, 2014			September 24, 2013			September 30, 2014			September 24, 2013
Revenues:
Company bakery-cafe operations	$	545,393		$	505,428		$	1,636,587		$	1,523,985
Franchise operations	30,585			27,189			89,950			81,219
Fresh dough and other product operations	92,789			85,095			275,353			251,779
Intercompany sales eliminations	(48,877		)	(45,232		)	(145,192		)	(133,713		)
Total revenues	$	619,890		$	572,480		$	1,856,698		$	1,723,270
Segment profit:
Company bakery-cafe operations	$	90,292		$	90,734		$	290,713		$	296,292
Franchise operations	29,214			25,732			85,403			76,738
Fresh dough and other product operations	4,812			3,977			16,319			14,983
Total segment profit	$	124,318		$	120,443		$	392,435		$	388,013
Depreciation and amortization	$	31,187		$	26,329		$	90,681		$	75,961
Unallocated general and administrative expenses	33,089			27,380			97,565			82,406
Pre-opening expenses	2,083			2,165			5,283			5,337
Interest expense	462			75			1,386			555
Other (income) expense, net	(719		)	324			(5,934		)	(2,892		)
Income before income taxes	$	58,216		$	64,170		$	203,454		$	226,646
Depreciation and amortization:
Company bakery-cafe operations	$	25,593		$	22,489		$	75,791		$	65,198
Fresh dough and other product operations	2,141			2,010			6,295			5,988
Corporate administration	3,453			1,830			8,595			4,775
Total depreciation and amortization	$	31,187		$	26,329		$	90,681		$	75,961
Capital expenditures:
Company bakery-cafe operations	$	44,111		$	31,799		$	110,664		$	97,813
Fresh dough and other product operations	4,356			3,668			9,127			7,448
Corporate administration	16,138			7,365			35,557			19,073
Total capital expenditures	$	64,605		$	42,832		$	155,348		$	124,334

	September 30, 2014		December 31, 2013
Segment assets:
Company bakery-cafe operations	$	900,921	$	867,093
Franchise operations	13,064		10,156
Fresh dough and other product operations	62,908		62,854
Total segment assets	$	976,893	$	940,103
Unallocated cash and cash equivalents	$	146,110	$	125,245
Unallocated trade and other accounts receivable	2,213		2,281
Unallocated property and equipment	76,628		53,587
Unallocated deposits and other	3,698		3,865
Other unallocated assets	48,800		55,781
Total assets	$	1,254,342	$	1,180,862

“Unallocated cash and cash equivalents” relates primarily to corporate cash and cash equivalents, “unallocated trade and other accounts receivable” relates primarily to rebates and interest receivable, “unallocated property and equipment” relates primarily to corporate fixed assets, “unallocated deposits and other” relates primarily to insurance deposits, and “other unallocated assets” relates primarily to deferred income taxes.