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Segment Information
 12 Months Ended
May 28, 2017
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, 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 Cheddar’s Scratch Kitchen, 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
At May 28, 2017 and for the year ended
 
Sales
 
$
3,938.6

$
1,622.2

$
535.6

$
1,073.8

$
—

$
7,170.2

Restaurant and marketing expenses
 
3,176.8

1,341.3

430.6

891.8

—

5,840.5

Segment profit
 
$
761.8

$
280.9

$
105.0

$
182.0

$
—

$
1,329.7

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
123.3

$
65.1

$
29.1

$
55.4

$
—

$
272.9

Impairments and disposal of assets, net
 
(1.5
)
(0.1
)
—

(6.2
)
(0.6
)
(8.4
)
Segment assets
 
949.2

948.9

869.9

1,964.7

771.5

5,504.2

Purchases of land, buildings and equipment
 
131.4

54.1

41.1

62.7

3.7

293.0

(in millions)
 
Olive Garden
LongHorn Steakhouse
Fine Dining
Other Business
Corporate
Consolidated
At May 29, 2016 and for the year ended
 
Sales
 
$
3,838.6

$
1,587.7

$
514.1

$
993.1

$
—

$
6,933.5

Restaurant and marketing expenses
 
3,079.4

1,312.4

413.6

825.0

—

5,630.4

Segment profit
 
$
759.2

$
275.3

$
100.5

$
168.1

$
—

$
1,303.1

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
135.5

$
72.6

$
28.6

$
53.5

$
—

$
290.2

Impairments and disposal of assets, net
 
(1.4
)
(1.5
)
0.7

6.0

2.0

5.8

Segment assets
 
939.2

969.2

857.0

987.6

829.6

4,582.6

Purchases of land, buildings and equipment
 
95.6

46.9

21.4

60.5

3.9

228.3

(in millions)
 
Olive Garden
LongHorn Steakhouse
Fine Dining
Other Business
Corporate
Consolidated
At May 31, 2015 and for the year ended
 
Sales
 
$
3,789.6

$
1,544.7

$
500.1

$
929.6

$
—

$
6,764.0

Restaurant and marketing expenses
 
3,089.1

1,304.8

405.2

785.7

—

5,584.8

Segment profit
 
$
700.5

$
239.9

$
94.9

$
143.9

$
—

$
1,179.2

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
163.0

$
77.1

$
28.2

$
51.0

$
—

$
319.3

Impairments and disposal of assets, net
 
28.2

0.4

—

21.0

12.5

62.1

Purchases of land, buildings and equipment
 
118.9

67.4

22.9

83.4

3.9

296.5


Reconciliation of segment profit to earnings from continuing operations before income taxes:
 
Fiscal Year Ended
(in millions)
May 28, 2017
 
May 29, 2016
 
May 31, 2015
Segment profit
$
1,329.7

 
$
1,303.1

 
$
1,179.2

Less general and administrative expenses
(387.7
)
 
(384.9
)
 
(430.2
)
Less depreciation and amortization
(272.9
)
 
(290.2
)
 
(319.3
)
Less impairments and disposal of assets, net
8.4

 
(5.8
)
 
(62.1
)
Less interest, net
(40.2
)
 
(172.5
)
 
(192.3
)
Earnings before income taxes
$
637.3

 
$
449.7

 
$
175.3