Papa Johns 2014 Annual Report Download - page 97

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84
20. Segment Information (continued)
Generally, we evaluate performance and allocate resources based on profit or loss from operations before
income taxes and intercompany eliminations. Certain administrative and capital costs are allocated to
segments based upon predetermined rates or actual estimated resource usage. We account for
intercompany sales or transfers as if the sales or transfers were to third parties and eliminate the activity in
consolidation.
Our reportable segments are business units that provide different products or services. Separate
management of each segment is required because each business unit is subject to different operational
issues and strategies. No single external customer accounted for 10% or more of our consolidated
revenues. The accounting policies of the segments are the same as those described in the summary of
significant accounting policies (see Note 2).
Our segment information is as follows:
(In thousands) 2014 2013 2012
Revenues from external customers:
Domestic Company-owned restaurants 701,854$ 635,317$ 592,203$
Domestic commissaries 629,492 578,870 545,924
North America franchising 90,169 82,873 80,373
International 102,455 88,640 72,930
All others 74,179 53,322 51,223
Total revenues from external customers 1,598,149$ 1,439,022$ 1,342,653$
Intersegment revenues:
Domestic commissaries 220,406$ 191,756$ 171,212$
North America franchising 2,400 2,222 2,267
International 320 280 229
All others 22,851 14,197 11,606
Total intersegment revenues 245,977$ 208,455$ 185,314$
Depreciation and amortization:
Domestic Company-owned restaurants 13,829$ 13,284$ 13,242$
Domestic commissaries 6,776 5,690 4,738
International 3,903 3,966 2,824
All others 6,156 5,320 4,801
Unallocated corporate expenses 9,301 6,845 7,193
Total depreciation and amortization 39,965$ 35,105$ 32,798$
Income (loss) before income taxes:
Domestic Company-owned restaurants 40,969$ 34,590$ 38,114$
Domestic commissaries 39,317 37,804 34,317
North America franchising 77,009 70,201 69,332
International 7,250 2,803 3,063
All others (9) 3,490 2,889
Unallocated corporate expenses (49,440) (41,025) (48,958)
Elimination of intersegment profits (841) (1,754) (362)
Total income before income taxes 114,255$ 106,109$ 98,395$