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Segment Information
 9 Months Ended
Feb. 23, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze 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 and results from our franchise operations.
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”). In the first quarter of fiscal 2020, we changed our internal management reporting related to non-cash lease-related expenses, as these are expenses for which our operating segments are no longer being evaluated. This change reallocates non-cash lease-related expenses from our operating segments to the corporate level for restaurant expenses (which is a component of segment profit) and depreciation and amortization. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level. Fiscal 2019 segment profit and depreciation and amortization have been restated for comparability.
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 February 23, 2020
 
Sales
 
$
1,169.3

 
$
510.7

 
$
188.4

 
$
478.1

 
$
—

 
$
2,346.5

Restaurant and marketing expenses
 
922.6

 
406.1

 
141.7

 
408.6

 
1.1

 
1,880.1

Segment profit
 
$
246.7

 
$
104.6

 
$
46.7

 
$
69.5

 
$
(1.1
)
 
$
466.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
35.3

 
$
17.1

 
$
8.0

 
$
24.7

 
$
2.6

 
$
87.7

Impairments and disposal of assets, net
 
0.6

 
0.5

 
—

 
—

 
(1.0
)
 
0.1

 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the nine months ended February 23, 2020
 
Sales
 
$
3,283.0

 
$
1,408.2

 
$
479.4

 
$
1,366.2

 
$
—

 
$
6,536.8

Restaurant and marketing expenses
 
2,617.1

 
1,157.2

 
381.9

 
1,184.6

 
4.7

 
5,345.5

Segment profit
 
$
665.9

 
$
251.0

 
$
97.5

 
$
181.6

 
$
(4.7
)
 
$
1,191.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
107.4

 
$
50.9

 
$
23.9

 
$
73.2

 
$
6.1

 
$
261.5

Impairments and disposal of assets, net
 
2.4

 
1.7

 
—

 
—

 
(3.9
)
 
0.2

Purchases of land, buildings and equipment
 
164.1

 
61.8

 
50.5

 
93.4

 
4.7

 
374.5

(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the three months ended February 24, 2019
 
Sales
 
$
1,130.2

 
$
483.2

 
$
174.5

 
$
458.6

 
$
—

 
$
2,246.5

Restaurant and marketing expenses
 
884.6

 
385.9

 
131.1

 
389.4

 
0.3

 
1,791.3

Segment profit
 
$
245.6

 
$
97.3

 
$
43.4

 
$
69.2

 
$
(0.3
)
 
$
455.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
35.5

 
$
17.2

 
$
7.5

 
$
23.8

 
$
1.3

 
$
85.3

Impairments and disposal of assets, net
 
2.2

 
—

 
—

 
—

 
(0.6
)
 
1.6

 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
Olive Garden
 
LongHorn Steakhouse
 
Fine Dining
 
Other Business
 
Corporate
 
Consolidated
For the nine months ended February 24, 2019
 
Sales
 
$
3,180.3

 
$
1,326.2

 
$
451.2

 
$
1,323.6

 
$
—

 
$
6,281.3

Restaurant and marketing expenses
 
2,534.2

 
1,090.2

 
358.7

 
1,135.5

 
4.4

 
5,123.0

Segment profit
 
$
646.1

 
$
236.0

 
$
92.5

 
$
188.1

 
$
(4.4
)
 
$
1,158.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
103.8

 
$
50.6

 
$
21.8

 
$
68.3

 
$
4.3

 
$
248.8

Impairments and disposal of assets, net
 
4.6

 
0.3

 
—

 
—

 
(0.5
)
 
4.4

Purchases of land, buildings and equipment
 
146.1

 
50.5

 
31.2

 
116.3

 
2.8

 
346.9


Reconciliation of segment profit to earnings from continuing operations before income taxes:
 
 
Three Months Ended
 
Nine Months Ended
(in millions)
 
February 23, 2020
 
February 24, 2019
 
February 23, 2020
 
February 24, 2019
Segment profit
 
$
466.4

 
$
455.2

 
$
1,191.3

 
$
1,158.3

Less general and administrative expenses
 
(100.3
)
 
(102.8
)
 
(289.6
)
 
(302.4
)
Less depreciation and amortization
 
(87.7
)
 
(85.3
)
 
(261.5
)
 
(248.8
)
Less impairments and disposal of assets, net
 
(0.1
)
 
(1.6
)
 
(0.2
)
 
(4.4
)
Less interest, net
 
(13.2
)
 
(12.4
)
 
(37.4
)
 
(38.3
)
Less other (income) expense, net
 
—


—

 
(153.3
)
 
—

Earnings (loss) before income taxes
 
$
265.1

 
$
253.1

 
$
449.3

 
$
564.4