Business Segment Information

12 Months Ended

Dec. 27, 2016

Business Segment Information [Abstract]

Business Segment Information [Text Block]

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, 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 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 Income.

The accounting policies applicable to each segment are consistent with those described in Note 2, Summary of Significant Accounting Policies. Segment information related to the Company’s three business segments is as follows (in thousands):

	For the fiscal year ended
	December 27, 2016			December 29, 2015			December 30, 2014
Revenues:
Company bakery-cafe operations	$	2,433,945		$	2,358,794		$	2,230,370
Franchise operations	155,271			138,563			123,686
Fresh dough and other product operations	407,644			382,110			370,004
Intercompany sales eliminations	(201,495		)	(197,887		)	(194,865		)
Total revenues	$	2,795,365		$	2,681,580		$	2,529,195
Segment profit:
Company bakery-cafe operations (1)	$	398,058		$	366,905		$	400,261
Franchise operations	150,123			133,449			117,770
Fresh dough and other product operations	27,564			23,517			22,872
Total segment profit	$	575,745		$	523,871		$	540,903
Depreciation and amortization	$	154,355		$	135,398		$	124,109
Unallocated general and administrative expenses	174,728			137,790			132,144
Pre-opening expenses	6,899			9,089			8,707
Interest expense	8,884			3,830			1,824
Other (income) expense, net	1,380			1,192			(3,175		)
Income before income taxes	$	229,499		$	236,572		$	277,294
Depreciation and amortization:
Company bakery-cafe operations	$	115,579		$	105,535		$	103,239
Fresh dough and other product operations	9,768			9,367			8,613
Corporate administration	29,008			20,496			12,257
Total depreciation and amortization	$	154,355		$	135,398		$	124,109
Capital expenditures:
Company bakery-cafe operations	$	147,191		$	174,633		$	167,856
Fresh dough and other product operations	13,793			12,175			12,178
Corporate administration	39,079			37,124			44,183
Total capital expenditures	$	200,063		$	223,932		$	224,217

(1) Includes refranchising losses of $9.1 million and $17.1 million for the fiscal years ended December 27, 2016 and December 29, 2015, respectively.

	December 27, 2016		December 29, 2015
Segment assets:
Company bakery-cafe operations	$	942,653	$	953,717
Franchise operations	18,301		13,049
Fresh dough and other product operations	87,199		75,634
Total segment assets	$	1,048,153	$	1,042,400
Unallocated cash and cash equivalents	$	105,529	$	241,886
Unallocated trade and other accounts receivable	6,691		2,968
Unallocated property and equipment	117,178		107,333
Unallocated deposits and other	5,285		6,660
Other unallocated assets	18,775		39,592
Total assets	$	1,301,611	$	1,440,839

“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 refundable income taxes.