Papa Johns 2015 Annual Report Download - page 95

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19. Employee Benefit Plans (continued)
At our discretion, we contributed a matching payment of 3%, up to a maximum of 6% deferred, in 2015
and contributed 1.5%, up to a maximum of 6% deferred, in 2014 and 2013 of a participating employee’s
earnings deferred into both the 401(k) Plan and the non-qualified deferred compensation plan. Such costs
were $1.5 million in 2015, $734,000 in 2014 and $691,000 in 2013.
20. Segment Information
We have five reportable segments for all years presented: domestic Company-owned restaurants,
domestic commissaries, North America franchising, international operations, and “all other” units. The
domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is
defined as contiguous United States) Company-owned restaurants and derives its revenues principally
from retail sales of pizza and side items, including breadsticks, cheesesticks, chicken poppers and wings,
dessert items and canned or bottled beverages. The domestic commissary segment consists of the
operations of our regional dough production and product distribution centers and derives its revenues
principally from the sale and distribution of food and paper products to domestic Company-owned and
franchised restaurants. The North America franchising segment consists of our franchise sales and
support activities and derives its revenues from sales of franchise and development rights and collection
of royalties from our franchisees located in the United States and Canada. The international operations
segment principally consists of our Company-owned restaurants in China and distribution sales to
franchised Papa John’s restaurants located in the United Kingdom, Mexico and China and our franchise
sales and support activities, which derive revenues from sales of franchise and development rights and the
collection of royalties from our international franchisees. International franchisees are defined as all
franchise operations outside of the United States and Canada. All other business units that do not meet the
quantitative thresholds for determining reportable segments, which are not operating segments, we refer
to as our “all other” segment, which consists of operations that derive revenues from the sale, principally
to Company-owned and franchised restaurants, of printing and promotional items, risk management
services, and information systems and related services used in restaurant operations, including our point-
of-sale system, online and other technology-based ordering platforms.
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).