Segment Information

3 Months Ended

Nov. 30, 2013

Segment Information [Abstract]

Segment Information

7.Segment Information

Operating segments are generally defined as components of an enterprise for which separate discrete financial information is available as the basis for management to allocate resources and assess performance. 

Based on internal reporting and management structure, the Company has two reportable segments: Company Drive-Ins and Franchise Operations.  The Company Drive-Ins segment consists of the drive-in operations in which the Company owns a controlling ownership interest and derives its revenues from operating drive-in restaurants.  The Franchise Operations segment consists of franchising activities and derives its revenues from royalties, initial franchise fees and lease revenues received from franchisees.  The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Company’s most recent Annual Report on Form 10-K.  Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources between segments.

The following table presents the revenues and income from operations for each reportable segment, along with reconciliation to reported revenue, income from operations and income before income taxes:

	Three months ended
	November 30,
	2013		2012
Revenues:
Company Drive-Ins	$	93,499	$	93,456
Franchise Operations		32,107		31,406
Unallocated revenues		1,046		1,146
Total revenues	$	126,652	$	126,008
Income from operations:
Company Drive-Ins	$	12,116	$	11,383
Franchise Operations		32,107		31,406
Unallocated income		1,175		1,139
Unallocated expenses:
Selling, general and administrative		(17,005)		(16,130)
Depreciation and amortization		(10,034)		(10,595)
Income from operations		18,359		17,203
Net interest expense		(6,266)		(7,534)
Income before income taxes	$	12,093	$	9,669