Baskin Robbins 2015 Annual Report Download - page 80

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(5) Property and equipment, net
Property and equipment at December 26, 2015 and December 27, 2014 consisted of the following (in thousands):
December 26,
2015
December 27,
2014
Land $ 33,346 33,927
Buildings 49,304 49,499
Leasehold improvements 154,479 147,996
Software, store, production, and other equipment 53,273 49,318
Construction in progress 3,837 5,736
Property and equipment, gross 294,239 286,476
Accumulated depreciation (111,625)(104,415)
Property and equipment, net $ 182,614 182,061
The Company recognized impairment charges on leasehold improvements, typically due to termination of the underlying lease
agreement, and other corporate-held assets of $132 thousand, $1.2 million, and $119 thousand during fiscal years 2015, 2014,
and 2013, respectively, which are included in long-lived asset impairment charges in the consolidated statements of operations.
(6) Equity method investments
The Company’s ownership interests in its equity method investments as of December 26, 2015 and December 27, 2014 were as
follows:
Entity Ownership
Japan JV 43.3%
South Korea JV 33.3%
Spain JV 33.3%
Australia JV 20.0%
In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.3 million,
net of transaction costs, which is included in other operating income in the consolidated statements of operations for the fiscal
year 2013. The gain consisted of net proceeds of $6.5 million, offset by the carrying value of the business included in the sale,
which totaled $216 thousand. The Company retained the remaining 20% ownership of the Australia JV, and accounts for the
Australia JV in accordance with the equity method.
Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands):
December 26,
2015
December 27,
2014
Current assets $ 288,106 $ 265,227
Current liabilities 123,576 102,920
Working capital 164,530 162,307
Property, plant, and equipment, net 142,844 138,325
Other assets 125,000 142,955
Long-term liabilities 40,728 45,684
Equity of equity method investments $ 391,646 397,903
Fiscal year ended
December 26,
2015
December 27,
2014
December 28,
2013
Revenues $ 622,982 669,416 673,537
Net income 33,650 39,835 51,407