Segment Reporting | 13. Segment Reporting The Company owns and operates full-service, Brazilian steakhouses in the United States and Brazil under the brand name Fogo de Chão. Each restaurant operates with similar types of products and menus, providing a continuous service style, irrespective of location. Sales from external customers are derived principally from food and beverage sales, and the Company does not rely on any major customers as a source of sales. The Company’s joint venture in Mexico is included in the United States for segment reporting purposes as the operations of the joint venture are monitored by the United States segment management. The following table presents the financial information of the Company’s operating segments for the thirteen and thirty-nine week periods ended September 27, 2015 and September 28, 2014. Thirteen Week Periods Ended Thirty-Nine Week Periods Ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Revenue United States (a) $ 50,971 $ 47,354 $ 161,794 $ 146,935 Brazil 9,998 16,340 32,344 46,618 Total revenue $ 60,969 $ 63,694 $ 194,138 $ 193,553 Restaurant contribution United States $ 14,781 $ 14,689 $ 48,962 $ 45,389 Brazil 3,302 6,083 9,792 16,259 Total segment restaurant contribution $ 18,083 $ 20,772 $ 58,754 $ 61,648 (a) For the thirteen and thirty-nine week periods ended September 27, 2015, amounts include $1,317 and $2,448, respectively, attributable to the joint venture in Mexico. The Company’s chief operating decision maker evaluates segment performance using restaurant contribution, which is not a measure defined by GAAP. Restaurant contribution is a key metric used to evaluate the profitability of incremental sales at the restaurants, to evaluate restaurant performance across periods and to evaluate restaurant financial performance compared with competitors. Restaurant contribution is defined as revenue less restaurant operating costs (which includes food and beverage costs, compensation and benefits costs and occupancy and certain other operating costs but excludes depreciation and amortization expense). Depreciation and amortization expense is excluded because it is not an ongoing controllable cash expense. The following table sets forth the reconciliation of total segment restaurant contribution to income from operations for the thirteen and thirty-nine week periods ended September 27, 2015 and September 28, 2014. Thirteen Week Periods Ended Thirty-Nine Week Periods Ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Total segment restaurant contribution $ 18,083 $ 20,772 $ 58,754 $ 61,648 Marketing and advertising costs 1,338 1,431 4,609 4,280 General and administrative costs 4,082 5,730 26,968 15,534 Pre-opening costs 853 170 2,334 1,408 Loss on extinguishment/modification of debt — — 5,991 3,090 Depreciation and amortization 3,100 2,995 9,237 8,720 Other operating (income) expense, net 45 61 (123 ) (52 ) Total other operating costs and expenses 9,418 10,387 49,016 32,980 Income from operations $ 8,665 $ 10,385 $ 9,738 $ 28,668 The table below sets forth the property and equipment attributable to each segment as of September 27, 2015 and December 28, 2014. September 27, December 28, 2015 2014 Property and equipment, net United States (a) $ 110,328 $ 101,626 Brazil 8,636 10,832 Total segment property and equipment, net 118,964 112,458 Corporate office (b) 900 748 Total property and equipment, net $ 119,864 $ 113,206 (a) Property and equipment, net as of September 27, 2015 and December 28, 2014, includes $1,439 and $986, respectively, attributable to the joint venture in Mexico. (b) Property and equipment, net attributable to the Company’s corporate office in the United States. The table below sets forth the capital expenditures attributable to each segment during the thirty-nine week periods ended September 27, 2015 and September 28, 2014. Thirty-Nine Week Periods Ended September 27, September 28, 2015 2014 Capital expenditures United States (a) $ 16,420 $ 11,353 Brazil 3,391 1,141 Total capital expenditures (b) $ 19,811 $ 12,494 (a) For the thirty-nine week period ended September 27, 2015 the amount includes $787 attributable to the joint venture in Mexico. For all periods presented, amount excludes capital expenditures attributable to the Company's corporate office in the United States. (b) Total capital expenditures include non-cash capital expenditures included within accounts payable and accrued expenses as of the end of the period. The table below sets forth total assets as of September 27, 2015 and December 28, 2014. September 27, December 28, 2015 2014 Total assets United States (a) $ 391,580 $ 380,566 Brazil 68,873 96,603 Total assets $ 460,453 $ 477,169 (a) Total assets as of September 27, 2015 and December 28, 2014, include total assets of $2,215 and $1,455, respectively, attributable to the joint venture in Mexico that may only be used to settle the obligations of the joint venture. For all periods presented, total assets include assets attributable to the Company’s corporate office in the United States and assets that are not directly attributable to restaurant operations. |