Segment Information

3 Months Ended

Aug. 28, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, The Capital Grille, Yard House, Bahama Breeze, Seasons 52 and Eddie V's in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business.

The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned The Capital Grille and Eddie V's restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Yard House, Seasons 52 and Bahama Breeze restaurants in the U.S. This segment also includes results from our franchises and consumer-packaged goods sales.

External sales are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments.

Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level earnings). These expenses include food and beverage costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively "restaurant and marketing expenses"). The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

(in millions)	Olive Garden			LongHorn Steakhouse			Fine Dining		Other Business			Corporate		Consolidated
For the three months ended August 28, 2016
Sales	$	961.2		$	386.3		$	114.2	$	252.7		$	—	$	1,714.4
Restaurant and marketing expenses	774.9			326.2			97.3		208.0			—		1,406.4
Segment profit	$	186.3		$	60.1		$	16.9	$	44.7		$	—	$	308.0
Depreciation and amortization	$	30.1		$	16.3		$	7.2	$	13.2		$	—	$	66.8
Impairments and disposal of assets, net	(1.5		)	(0.2		)	—		(6.1		)	—		(7.8		)
Purchases of land, buildings and equipment	27.1			13.6			10.8		7.5			1.1		60.1

(in millions)	Olive Garden			LongHorn Steakhouse			Fine Dining		Other Business		Corporate		Consolidated
For the three months ended August 30, 2015
Sales	$	944.6		$	383.9		$	113.3	$	245.2	$	—	$	1,687.0
Restaurant and marketing expenses	752.6			326.8			95.5		201.4		—		1,376.3
Segment profit	$	192.0		$	57.1		$	17.8	$	43.8	$	—	$	310.7
Depreciation and amortization	$	39.7		$	20.7		$	7.3	$	13.4	$	—	$	81.1
Impairments and disposal of assets, net	(1.2		)	(1.2		)	0.7		—		—		(1.7		)
Purchases of land, buildings and equipment	21.8			16.7			5.4		19.9		1.1		64.9

Reconciliation of segment profit to earnings from continuing operations before income taxes:

	Three Months Ended
(in millions)	August 28, 2016			August 30, 2015
Segment profit	$	308.0		$	310.7
Less general and administrative expenses	(87.7		)	(97.1		)
Less depreciation and amortization	(66.8		)	(81.1		)
Less impairments and disposal of assets, net	7.8			1.7
Less interest, net	(9.9		)	(22.4		)
Earnings before income taxes	$	151.4		$	111.8