Dunkin' Donuts 2012 Annual Report Download - page 83

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-73-
in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating
leases consisted of the following (in thousands):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Base rentals $ 52,821 52,214 53,704
Contingent rentals 5,227 4,510 4,093
Total rental expense $ 58,048 56,724 57,797
Total rental income for all leases and subleases consisted of the following (in thousands):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Base rentals $ 67,988 66,061 66,630
Contingent rentals 28,828 26,084 24,472
Total rental income $ 96,816 92,145 91,102
The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a
decrease in rental expense as follows (in thousands):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Increase in rental income $ 1,065 1,392 1,806
Decrease in rental expense 1,287 1,838 2,514
Total increase in operating income $ 2,352 3,230 4,320
Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next
five years (in thousands):
Decrease in
rental expense
Increase in
rental income
Total increase
in operating
income
Fiscal year:
2013 $ 1,119 936 2,055
2014 1,063 851 1,914
2015 958 794 1,752
2016 902 723 1,625
2017 902 686 1,588
(12) Segment information
The Company is strategically aligned into two global brands, Dunkin’ Donuts and Baskin-Robbins, which are further
segregated between U.S. operations and international operations. As such, the Company has determined that it has four
operating segments, which are its reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins
U.S., and Baskin-Robbins International. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International
primarily derive their revenues through royalty income, franchise fees, and rental income. Baskin-Robbins U.S. also derives
revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues
from sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each
segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not
limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates
resources to them based on earnings before interest, taxes, depreciation, amortization, impairment charges, loss on debt
extinguishment and refinancing transactions, other gains and losses, and unallocated corporate charges, referred to as segment
profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to
each segment are consistent with those used in the consolidated financial statements.