Baskin Robbins 2013 Annual Report Download - page 86

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-76-
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 28,
2013
December 29,
2012
December 31,
2011
Increase in rental income $ 973 1,065 1,392
Decrease in rental expense 1,204 1,287 1,838
Total increase in operating income $ 2,177 2,352 3,230
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:
2014 $ 1,051 847 1,898
2015 949 789 1,738
2016 893 719 1,612
2017 893 681 1,574
2018 859 632 1,491
(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.
Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment
revenues. Revenues reported as “Other” include revenue earned through arrangements with third parties in which our brand
names are used and revenue generated from online training programs for franchisees that are not allocated to a specific
segment. Revenues by segment were as follows (in thousands):
Revenues
Fiscal year ended
December 28,
2013
December 29,
2012
December 31,
2011
Dunkin’ Donuts U.S. $ 521,179 485,399 449,492
Dunkin’ Donuts International 18,316 15,485 15,253
Baskin-Robbins U.S. 42,152 42,074 43,455
Baskin-Robbins International 120,333 101,975 106,887
Total reportable segments 701,980 644,933 615,087
Other 11,860 13,248 13,111
Total revenues $ 713,840 658,181 628,198