SEGMENT REPORTING | Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our company-owned Chili’s restaurants in the United States and Canada as well as the results from our domestic and international franchise business. The Maggiano’s segment includes the results of our company-owned Maggiano’s restaurants. Company sales are derived principally from the sales of food and beverages. Franchise and other revenues primarily includes royalties, development fees, franchise fees, banquet service charge income, gift card breakage and discounts, digital entertainment revenue, Chili’s retail food product royalties and delivery fee income. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly in the United States. There were no material transactions amongst our operating segments. Our chief operating decision maker uses operating income as the measure for assessing performance of our operating segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Company restaurant expenses include food and beverage costs, restaurant labor costs and restaurant expenses, including advertising. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands): Thirteen Week Period Ended March 28, 2018 Chili’s Maggiano’s Other Consolidated Company sales $ 688,879 $ 101,616 $ — $ 790,495 Franchise and other revenues 17,204 4,835 — 22,039 Total revenues 706,083 106,451 — 812,534 Company restaurant expenses 572,812 89,991 97 662,900 Depreciation and amortization 31,011 3,957 2,585 37,553 General and administrative 10,601 1,420 24,598 36,619 Other gains and charges (75 ) 6 2,821 2,752 Total operating costs and expenses 614,349 95,374 30,101 739,824 Operating income (loss) 91,734 11,077 (30,101 ) 72,710 Interest expense — — 14,549 14,549 Other, net — — (755 ) (755 ) Income (loss) before provision for income taxes $ 91,734 $ 11,077 $ (43,895 ) $ 58,916 Thirteen Week Period Ended March 29, 2017 Chili’s Maggiano’s Other Consolidated Company sales $ 689,662 $ 100,962 $ — $ 790,624 Franchise and other revenues 15,224 4,793 — 20,017 Total revenues 704,886 105,755 — 810,641 Company restaurant expenses 565,327 90,454 126 655,907 Depreciation and amortization 32,386 4,078 2,871 39,335 General and administrative 8,771 1,624 25,536 35,931 Other gains and charges 4,233 — 2,367 6,600 Total operating costs and expenses 610,717 96,156 30,900 737,773 Operating income (loss) 94,169 9,599 (30,900 ) 72,868 Interest expense — — 13,658 13,658 Other, net — — (402 ) (402 ) Income (loss) before provision for income taxes $ 94,169 $ 9,599 $ (44,156 ) $ 59,612 Thirty-Nine Week Period Ended March 28, 2018 Chili’s Maggiano’s Other Consolidated Company sales $ 1,940,076 $ 310,049 $ — $ 2,250,125 Franchise and other revenues 51,992 16,207 — 68,199 Total revenues 1,992,068 326,256 — 2,318,324 Company restaurant expenses 1,648,094 273,187 368 1,921,649 Depreciation and amortization 93,818 12,029 7,881 113,728 General and administrative 29,443 4,202 68,420 102,065 Other gains and charges 17,994 777 6,396 25,167 Total operating costs and expenses 1,789,349 290,195 83,065 2,162,609 Operating income (loss) 202,719 36,061 (83,065 ) 155,715 Interest expense — — 42,754 42,754 Other, net — — (2,246 ) (2,246 ) Income (loss) before provision for income taxes $ 202,719 $ 36,061 $ (123,573 ) $ 115,207 Segment assets $ 1,126,650 $ 151,649 $ 58,580 $ 1,336,879 Payments for property and equipment 58,613 5,590 5,300 69,503 Thirty-Nine Week Period Ended March 29, 2017 Chili’s Maggiano’s Other Consolidated Company sales $ 1,970,390 $ 306,353 $ — $ 2,276,743 Franchise and other revenues 47,417 16,016 — 63,433 Total revenues 2,017,807 322,369 — 2,340,176 Company restaurant expenses 1,658,067 272,137 578 1,930,782 Depreciation and amortization 97,630 12,019 7,877 117,526 General and administrative 28,115 4,836 69,063 102,014 Other gains and charges 9,102 746 4,136 13,984 Total operating costs and expenses 1,792,914 289,738 81,654 2,164,306 Operating income (loss) 224,893 32,631 (81,654 ) 175,870 Interest expense — — 36,108 36,108 Other, net — — (1,084 ) (1,084 ) Income (loss) before provision for income taxes $ 224,893 $ 32,631 $ (116,678 ) $ 140,846 Payments for property and equipment $ 60,770 $ 10,673 $ 8,287 $ 79,730 |