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Segment Information
 9 Months Ended
Feb. 27, 2022
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, Eddie V’s and The Capital Burger 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, Bahama Breeze and The Capital Burger 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”). Non-cash lease-related expenses included in restaurant expenses (which is a component of segment profit) and lease-related depreciation and amortization are reported at the corporate level as these are expenses for which our operating segments are not being evaluated. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level.
In the first quarter of fiscal 2022, we changed our internal management reporting to include The Capital Burger in the Other Business segment. Previously, The Capital Burger was included in the Fine Dining segment due to its adjacency with The Capital Grille brand and overall immateriality. Fiscal 2021 figures have been restated for comparability.
The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP.
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the three months ended February 27, 2022
Sales$1,142.6 $612.7 $208.2 $485.4 $— $2,448.9 
Restaurant and marketing expenses902.6 501.2 160.5 418.2 (8.2)1,974.3 
Segment profit$240.0 $111.5 $47.7 $67.2 $8.2 $474.6 
Depreciation and amortization$34.9 $16.0 $8.5 $24.8 $10.1 $94.3 
Impairments and disposal of assets, net(0.1)0.1 — — (3.8)(3.8)
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the nine months ended February 27, 2022
Sales$3,310.2 $1,727.0 $565.7 $1,424.2 $— $7,027.1 
Restaurant and marketing expenses2,581.8 1,424.4 444.7 1,209.9 (17.3)5,643.5 
Segment profit$728.4 $302.6 $121.0 $214.3 $17.3 $1,383.6 
Depreciation and amortization$106.2 $48.3 $25.2 $73.4 $22.3 $275.4 
Impairments and disposal of assets, net1.0 0.1 — — (6.6)(5.5)
Purchases of land, buildings and equipment116.1 65.9 31.4 60.6 1.6 275.6 
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the three months ended February 28, 2021
Sales$872.0 $454.3 $103.7 $303.0 $— $1,733.0 
Restaurant and marketing expenses669.7 372.2 87.1 271.4 14.4 1,414.8 
Segment profit$202.3 $82.1 $16.6 $31.6 $(14.4)$318.2 
Depreciation and amortization$35.7 $16.3 $7.6 $24.8 $3.8 $88.2 
Impairments and disposal of assets, net— — — 3.3 (0.2)3.1 
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the nine months ended February 28, 2021
Sales$2,489.7 $1,238.4 $293.6 $895.2 $— $4,916.9 
Restaurant and marketing expenses1,938.5 1,033.0 246.5 788.9 22.7 4,029.6 
Segment profit$551.2 $205.4 $47.1 $106.3 $(22.7)$887.3 
Depreciation and amortization$106.0 $49.7 $22.9 $73.1 $10.1 $261.8 
Impairments and disposal of assets, net— — — 3.3 (1.9)1.4 
Purchases of land, buildings and equipment69.8 27.3 31.6 46.5 2.1 177.3 
A reconciliation of segment profit to earnings from continuing operations before income taxes is below.
Three Months EndedNine Months Ended
(in millions)February 27, 2022February 28, 2021February 27, 2022February 28, 2021
Segment profit$474.6 $318.2 $1,383.6 $887.3 
Less general and administrative expenses(83.1)(78.9)(289.0)(298.8)
Less depreciation and amortization(94.3)(88.2)(275.4)(261.8)
Less impairments and disposal of assets, net3.8 (3.1)5.5 (1.4)
Less interest, net(17.5)(15.2)(49.8)(46.4)
Less other (income) expense, net(0.2)(0.5)(0.7)(8.4)
Earnings before income taxes$283.3 $132.3 $774.2 $270.5