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Segment Information
 12 Months Ended
May 31, 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). During 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 and fiscal 2018 segment profit and depreciation and amortization have been restated for comparability. For fiscal 2020, restaurant and marketing expenses includes approximately $43.7 million of costs, net of retention credits associated with the CARES Act, related to emergency and furlough pay for restaurant employees due to COVID-19, reflected at the corporate level as they are costs for which our operating segments are not being evaluated.

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 31, 2020 and for the year ended
 
Sales
 
$
4,013.8

$
1,701.1

$
541.1

$
1,550.9

$
—

$
7,806.9

Restaurant and marketing expenses
 
3,281.0

1,439.2

452.8

1,413.6

49.9

6,636.5

Segment profit
 
$
732.8

$
261.9

$
88.3

$
137.3

$
(49.9
)
$
1,170.4

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
144.2

$
68.4

$
33.4

$
101.0

$
8.9

$
355.9

Impairments and disposal of assets, net
 
3.4

1.8

11.5

171.3

33.0

221.0

Goodwill impairment
 
—

—

—

169.2

—

169.2

Segment assets
 
2,757.5

1,830.0

1,251.3

2,902.0

1,205.3

9,946.1

Purchases of land, buildings and equipment
 
199.3

74.1

62.1

117.0

7.4

459.9

(in millions)
 
Olive Garden
LongHorn Steakhouse
Fine Dining
Other Business
Corporate
Consolidated
At May 26, 2019 and for the year ended
 
Sales
 
$
4,287.3

$
1,810.6

$
605.9

$
1,806.6

$
—

$
8,510.4

Restaurant and marketing expenses
 
3,408.3

1,481.8

481.3

1,540.7

4.6

6,916.7

Segment profit
 
$
879.0

$
328.8

$
124.6

$
265.9

$
(4.6
)
$
1,593.7

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
140.8

$
68.2

$
29.6

$
92.7

$
5.4

$
336.7

Impairments and disposal of assets, net
 
8.9

0.3

—

10.3

(0.5
)
19.0

Segment assets
 
1,063.7

972.5

902.8

2,090.6

863.2

5,892.8

Purchases of land, buildings and equipment
 
187.3

65.6

49.1

147.2

2.8

452.0

(in millions)
 
Olive Garden
LongHorn Steakhouse
Fine Dining
Other Business
Corporate
Consolidated
At May 27, 2018 and for the year ended
 
Sales
 
$
4,082.5

$
1,703.2

$
574.4

$
1,720.0

$
—

$
8,080.1

Restaurant and marketing expenses
 
3,266.9

1,396.0

460.2

1,455.7

8.2

6,587.0

Segment profit
 
$
815.6

$
307.2

$
114.2

$
264.3

$
(8.2
)
$
1,493.1

 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
132.9

$
65.7

$
27.4

$
81.7

$
5.4

$
313.1

Impairments and disposal of assets, net
 
2.0

1.5

0.1

—

(0.2
)
3.4

Purchases of land, buildings and equipment
 
163.4

76.1

32.1

119.5

4.9

396.0


Reconciliation of segment profit to earnings from continuing operations before income taxes:
 
Fiscal Year Ended
(in millions)
May 31, 2020
 
May 26, 2019
 
May 27, 2018
Segment profit
$
1,170.4

 
$
1,593.7

 
$
1,493.1

Less general and administrative expenses
(376.4
)
 
(405.5
)
 
(409.8
)
Less depreciation and amortization
(355.9
)
 
(336.7
)
 
(313.1
)
Less impairments and disposal of assets, net
(221.0
)
 
(19.0
)
 
(3.4
)
Less goodwill impairment
(169.2
)
 
—

 
—

Less interest, net
(57.3
)
 
(50.2
)
 
(161.1
)
Less other (income) expense, net
(151.6
)
 
—

 
—

Earnings (loss) before income taxes
$
(161.0
)
 
$
782.3

 
$
605.7