10-Q 1 eat-20220330.htm 10-Q eat-20220330
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 30, 2022
Commission File Number 1-10275
eat-20220330_g1.jpg
BRINKER INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DE
75-1914582
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3000 Olympus Blvd
Dallas
TX
75019
(Address of principal executive offices)(Zip Code)
(972)
980-9917
(Registrant’s telephone number, including area code)
Title of each class
Trading Symbol(s)
Name of exchange on which registered
Common Stock, $0.10 par value
EAT
NYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No ☒
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of April 29, 2022: 43,841,092 shares



BRINKER INTERNATIONAL, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page

2

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BRINKER INTERNATIONAL, INC.
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions, except per share amounts)
Thirteen Week Periods EndedThirty-Nine Week Periods Ended
March 30,
2022
March 24,
2021
March 30,
2022
March 24,
2021
Revenues
Company sales$960.6 $813.7 $2,724.7 $2,288.1 
Franchise and other revenues19.8 14.7 57.9 41.1 
Total revenues980.4 828.4 2,782.6 2,329.2 
Operating costs and expenses
Food and beverage costs270.3 213.9 757.4 606.3 
Restaurant labor329.1 270.8 949.4 774.6 
Restaurant expenses244.1 216.1 712.1 629.9 
Depreciation and amortization42.2 37.4 123.1 112.0 
General and administrative39.2 33.7 108.8 94.2 
Other (gains) and charges6.1 4.3 17.0 13.5 
Total operating costs and expenses931.0 776.2 2,667.8 2,230.5 
Operating income49.4 52.2 114.8 98.7 
Interest expenses11.1 14.1 34.8 43.1 
Other income, net(0.4)(0.3)(1.2)(1.2)
Income before income taxes38.7 38.4 81.2 56.8 
Provision for income taxes2.1 4.5 3.8 0.2 
Net income$36.6 $33.9 $77.4 $56.6 
Basic net income per share$0.82 $0.74 $1.71 $1.25 
Diluted net income per share$0.81 $0.73 $1.68 $1.22 
Basic weighted average shares outstanding44.4 45.5 45.2 45.3 
Diluted weighted average shares outstanding45.1 46.7 46.0 46.2 
Other comprehensive income (loss)
Foreign currency translation adjustment$0.4 $0.3 $(0.1)$1.1 
Other comprehensive income (loss)0.4 0.3 (0.1)1.1 
Comprehensive income$37.0 $34.2 $77.3 $57.7 
See accompanying Notes to Consolidated Financial Statements (Unaudited)
3

BRINKER INTERNATIONAL, INC.
Consolidated Balance Sheets
(In millions, except per share amounts)
Unaudited
March 30,
2022
June 30,
2021
ASSETS
Current assets
Cash and cash equivalents$12.9 $23.9 
Accounts receivable, net60.0 65.2 
Inventories33.6 28.9 
Restaurant supplies55.5 52.6 
Prepaid expenses20.4 13.6 
Income taxes receivable, net5.6 23.0 
Total current assets188.0 207.2 
Property and equipment, at cost
Land43.4 33.1 
Buildings and leasehold improvements1,621.8 1,595.2 
Furniture and equipment795.7 818.1 
Construction-in-progress23.0 14.9 
2,483.9 2,461.3 
Less accumulated depreciation and amortization(1,665.5)(1,686.5)
Net property and equipment818.4 774.8 
Other assets
Operating lease assets1,152.9 1,007.4 
Goodwill195.1 188.2 
Deferred income taxes, net54.4 50.9 
Intangibles, net28.5 21.1 
Other21.5 25.3 
Total other assets1,452.4 1,292.9 
Total assets$2,458.8 $2,274.9 
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities
Accounts payable$131.4 $127.7 
Gift card liability104.8 106.4 
Accrued payroll108.2 122.4 
Operating lease liabilities113.5 97.7 
Other accrued liabilities125.2 117.4 
Total current liabilities583.1 571.6 
Long-term debt and finance leases, less current installments987.9 917.9 
Long-term operating lease liabilities, less current portion1,143.3 1,006.7 
Other liabilities55.7 82.0 
Commitments and contingencies (Note 14)
Shareholders’ deficit
Common stock (250.0 million authorized shares; $0.10 par value; 70.3 million shares issued; and 43.8 million shares outstanding at March 30, 2022, and 45.9 million shares outstanding at June 30, 2021)
7.0 7.0 
Additional paid-in capital687.8 685.4 
Accumulated other comprehensive loss(4.8)(4.7)
Accumulated deficit(188.7)(266.1)
Treasury stock, at cost (26.5 million shares at March 30, 2022, and 24.4 million shares at June 30, 2021)
(812.5)(724.9)
Total shareholders’ deficit(311.2)(303.3)
Total liabilities and shareholders’ deficit$2,458.8 $2,274.9 
See accompanying Notes to Consolidated Financial Statements (Unaudited)
4

BRINKER INTERNATIONAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Thirty-Nine Week Periods Ended
March 30,
2022
March 24,
2021
Cash flows from operating activities
Net income$77.4 $56.6 
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization123.1 112.0 
Stock-based compensation15.2 11.3 
Restructure and impairment charges8.7 6.5 
Net loss on disposal of assets2.3 1.1 
Other2.6 2.7 
Changes in assets and liabilities, net of the impact of acquisitions:
Accounts receivable, net8.0 (1.3)
Inventories(3.4)(0.4)
Restaurant supplies(1.1)(0.4)
Prepaid expenses(6.9)2.3 
Operating lease assets, net of liabilities5.2 (9.1)
Deferred income taxes, net(3.5)(9.3)
Other assets0.2 (0.2)
Accounts payable4.9 19.0 
Gift card liability(2.6)1.0 
Accrued payroll(14.3)46.7 
Other accrued liabilities3.5 10.5 
Current income taxes19.6 6.4 
Other liabilities(27.3)13.2 
Net cash provided by operating activities211.6 268.6 
Cash flows from investing activities
Payments for property and equipment(109.0)(62.4)
Payments for franchise restaurant acquisitions(106.0) 
Proceeds from sale leaseback transactions, net of related expenses20.5  
Proceeds from note receivable1.0 1.5 
Proceeds from sale of assets0.1 1.6 
Net cash used in investing activities(193.4)(59.3)
Cash flows from financing activities
Borrowings on revolving credit facility595.5 28.4 
Payments on revolving credit facility(502.5)(210.0)
Purchases of treasury stock(100.8)(4.1)
Payments on long-term debt(17.6)(14.3)
Payments for debt issuance costs(3.1)(2.2)
Payments of dividends(1.1)(1.5)
Proceeds from issuance of treasury stock0.4 14.1 
Net cash used in financing activities(29.2)(189.6)
Net change in cash and cash equivalents(11.0)19.7 
Cash and cash equivalents at beginning of period23.9 43.9 
Cash and cash equivalents at end of period$12.9 $63.6 
See accompanying Notes to Consolidated Financial Statements (Unaudited)
5

BRINKER INTERNATIONAL, INC.
Notes to Consolidated Financial Statements (Unaudited)
Footnote Index
Note #DescriptionPage
Basis of Presentation
Chili’s Restaurant Acquisitions
Revenue Recognition
Other Gains and Charges
Income Taxes
Net Income Per Share
Segment Information
Fair Value Measurements
Leases
Debt
Accrued and Other Liabilities
Shareholders’ Deficit
Supplemental Cash Flow Information
Contingencies


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1. BASIS OF PRESENTATION
References to “Brinker,” the “Company,” “we,” “us,” and “our” in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of March 30, 2022 and June 30, 2021, and for the thirteen and thirty-nine week periods ended March 30, 2022 and March 24, 2021, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
We are principally engaged in the ownership, operation, development and franchising of the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands, as well as virtual brands including It’s Just Wings® and Maggiano’s Italian Classics™. At March 30, 2022, we owned, operated or franchised 1,650 restaurants, consisting of 1,187 Company-owned restaurants and 463 franchised restaurants, located in the United States, 28 countries and two United States territories.
Fiscal Year
We have a 52 or 53 week fiscal year ending on the last Wednesday in June. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal year 2022 contains 52 weeks and will end on June 29, 2022. Fiscal year 2021 ended on June 30, 2021 and contained 53 weeks.
Use of Estimates
The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates.
The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 30, 2021 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified.
Foreign Currency Translation
The foreign currency translation adjustment included in Comprehensive income in the Consolidated Statements of Comprehensive Income (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to United States dollars. This amount is not included in Net income and would only be realized upon disposition of our Canadian restaurants. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets (Unaudited).
Impact of COVID-19 Pandemic
In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic and a National Public Health Emergency. The spread of COVID-19 has prompted changes in consumer behavior and social distancing preferences as well as dining room closures and dining room capacity restrictions mandated or encouraged by federal, state and local governments. The number of open dining rooms and the dining room capacity restrictions have fluctuated over the course of the pandemic based on state and local mandates, and has resulted in significant adverse impacts to our guest traffic and sales primarily in fiscal 2021.

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We have been carefully assessing the effect of COVID-19 on our business as conditions continue to evolve throughout the communities we serve. At this time, the ultimate impact of COVID-19 cannot be reasonably estimated due to the uncertainty about the extent and the duration of the spread of the virus and could lead to further reduced sales, capacity restrictions, restaurant closures, delays in our supply chain or impair our ability to staff accordingly which could adversely impact our financial results.
New Accounting Standards Implemented in Fiscal 2022
We reviewed all accounting pronouncements that became effective for our fiscal 2022 and determined that either they were not applicable or they did not have a material impact on the Consolidated Financial Statements (Unaudited). We also reviewed all recently issued accounting pronouncements to be adopted in future periods and determined that they are not expected to have a material impact on the Consolidated Financial Statements (Unaudited).
2. CHILI’S RESTAURANT ACQUISITIONS
During the first three quarters of fiscal 2022, we completed three acquisitions of certain assets and liabilities related to previously franchised Chili’s locations, as follows:
Mid-Atlantic Region Acquisition - On September 2, 2021, we acquired 23 previously franchised Chili’s restaurants located in the Mid-Atlantic region of the United States for a total purchase price of $47.7 million, including post-closing adjustments. The acquisition was funded with borrowings from our existing credit facility and proceeds from a sale leaseback transaction completed simultaneously with the acquisition (refer to Note 9 - Leases for further details on the sale leaseback transaction).
Great Lakes Region Acquisition - On October 31, 2021, we acquired 37 previously franchised Chili’s restaurants located in the Great Lakes and Northeast region of the United States for a total purchase price of $56.0 million, excluding post-closing adjustments, funded with borrowings from our existing credit facility.
Northwest Region Acquisition - On February 1, 2022, we acquired six previously franchised Chili’s restaurants located in the Northwest region of the United States for a total purchase price of $1.3 million, excluding post-closing adjustments, funded with borrowings from our existing credit facility.
Pro-forma financial information for these acquisitions are not presented due to the immaterial impact of the financial results of the acquired restaurants in the Consolidated Financial Statements (Unaudited). We accounted for each of these acquisitions as a business combination.
The assets and liabilities of the Mid-Atlantic Region Acquisition restaurants were recorded at their fair values. The assets and liabilities of the Great Lakes Region Acquisition and Northwest Region Acquisition restaurants were recorded based on preliminary estimates of their fair values and are subject to revision. The final purchase price allocations are expected to be completed during the fourth quarter of fiscal 2022. The results of operations, and assets and liabilities, of these restaurants are included in the Consolidated Financial Statements (Unaudited) from the acquisition dates.
The fair values of tangible and intangible assets acquired were primarily based on significant inputs not observable in an active market, including estimates of replacement costs, future cash flows and discount rates. These inputs

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represent Level 3 fair value measurements as defined under GAAP. The amounts recorded for the fair value of acquired assets and liabilities at the acquisition dates are as follows:
Mid-Atlantic RegionGreat Lakes Region (Preliminary)
Current assets$1.4 $2.1 
Property and equipment46.2 43.9 
Operating lease assets(2)
23.6 45.1 
Reacquired franchise rights(1)
4.7 4.6 
Goodwill(3)
 6.9 
Current liabilities(1.4)(0.3)
Finance lease liabilities, less current portion(3.7) 
Operating lease liabilities, less current portion(2)
(23.1)(45.2)
Net assets acquired(4)
$47.7 $57.1 
(1)Reacquired franchise rights related to the Mid-Atlantic Region acquisition and Great Lakes Region acquisition both have weighted average amortization periods of approximately 15 years.
(2)Refer to Note 9 - Leases for further details.
(3)Goodwill is expected to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities, and the benefit of the assembled workforce of the acquired restaurants.
(4)Net assets acquired at fair value related to the Mid-Atlantic Region acquisition are equal to the total purchase price of $48.0 million, less $0.3 million of closing adjustments. Net assets acquired at fair value related to the Great Lakes Region acquisition are equal to the total purchase price of $56.0 million, plus $1.1 million of closing adjustments.
3. REVENUE RECOGNITION
Deferred Franchise and Development Fees
Our deferred franchise and development fees consist of the unrecognized fees received from franchisees. Recognition of these fees in subsequent periods is based on satisfaction of the contractual performance obligations of our active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, due to the variability and uncertainty of these future revenues based upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied.
Deferred franchise and development fees are classified within Other accrued liabilities for the current portion expected to be recognized within the next 12 months, and Other liabilities for the long-term portion in the Consolidated Balance Sheets (Unaudited).

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The following table reflects the changes in deferred franchise and development fees between June 30, 2021 and March 30, 2022:
Deferred Franchise and Development Fees
Balance as of June 30, 2021$11.4 
Additions0.8 
Amount recognized for Chili's restaurant acquisitions(1)
(0.8)
Amount recognized to Franchise and other revenues(1.3)
Balance as of March 30, 2022$10.1 
(1)    The remaining deferred franchise and development fee balances associated with the 66 acquired Chili’s restaurants were recognized as of the acquisition dates in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited). Refer to Note 2 - Chili’s Restaurant Acquisitions for further details.
The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of March 30, 2022:
Fiscal YearFranchise and Development Fees Revenue Recognition
Remainder of 2022$0.2 
20230.9 
20240.8 
20250.8 
20260.8 
Thereafter6.6 
$10.1 
Deferred Gift Card Revenues
Deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 30, 2021 and March 30, 2022:
Gift Card Liability
Balance as of June 30, 2021$106.4 
Gift card sales107.2 
Gift card redemptions recognized to Company sales(93.0)
Gift card breakage recognized to Franchise and other revenues(16.5)
Other0.7 
Balance as of March 30, 2022
$104.8 

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4. OTHER GAINS AND CHARGES
Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) consist of the following:
Thirteen Week Periods EndedThirty-Nine Week Periods Ended
March 30,
2022
March 24,
2021
March 30,
2022
March 24,
2021
Restaurant closure charges$1.2 $0.3 $1.7 $2.2 
Remodel-related costs0.9 0.9 4.0 1.8 
COVID-19 related charges0.7 0.9 0.2 3.1 
Acquisition-related costs, net0.6  1.5  
Enterprise system implementation costs0.5  1.4  
Loss from natural disasters, net of (insurance recoveries) 1.8 0.8 2.0 
Lease contingencies  2.9  
Restaurant impairment charges   2.5 
Other2.2 0.4 4.5 1.9 
$6.1 $4.3 $17.0 $13.5 
Fiscal 2022
Restaurant closure charges related to closure costs and leases associated with certain closed Chili’s restaurants.
Remodel-related costs related to existing fixed asset write-offs associated with ongoing Chili’s and Maggiano’s remodel projects.
COVID-19 related charges primarily consisted of charges for employee assistance and related payroll taxes for certain team members partially offset by an employee retention credit as allowed under the CARES Act in the second quarter and credits received as part of the 2021 New Mexico Senate Bill 1 in the first quarter.
Acquisition-related costs, net primarily related to the 66 restaurants acquired from franchisees during the first three quarters. Refer to Note 2 - Chili’s Restaurant Acquisitions for further details.
Enterprise system implementation costs primarily consisted of consulting and subscription fees related to the ongoing enterprise system implementation.
Lease contingencies were recorded for potential lease defaults on certain lease guarantees and subleases. Refer to Note 14 - Contingencies for additional information about our secondarily liable lease guarantees.
Fiscal 2021
Restaurant closure charges in the thirty-nine week period related to closure costs and leases associated with certain closed Chili’s restaurants.
Remodel-related costs related to fixed asset disposals associated with the ongoing Chili’s remodel initiative.
COVID-19 related charges in the thirty-nine week period ended March 24, 2021 consisted of the following costs related to both Chili’s and Maggiano’s:
employee assistance and related payroll taxes for certain team members,
conversion of certain parking lots into dining areas, and
initial purchases of restaurant and personal protective supplies such as face masks and hand sanitizers required to maintain open dining rooms.

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Loss from natural disasters, net of (insurance recoveries) primarily consisted of costs incurred related to Winter Storm Uri in February 2021.
Restaurant impairment charges primarily related to the long-lived and operating lease assets of 10 underperforming Chili’s restaurants and three underperforming Maggiano’s restaurants.
5. INCOME TAXES
Thirteen Week Periods EndedThirty-Nine Week Periods Ended
March 30,
2022
March 24,
2021
March 30,
2022
March 24,
2021
Effective income tax rate5.4 %11.7 %4.7 %0.4 %
The federal statutory tax rate for the periods presented was 21.0%. A reconciliation between the reported Provision for income taxes and the amount computed by applying the statutory federal income tax rate to Income before income taxes is as follows:
Thirty-Nine Week Period Ended
March 30,
2022
Income tax expense at statutory rate - 21.0%
$17.1 
FICA tip tax credit(16.4)
Stock-based compensation excess tax benefits(0.7)
State income taxes, net of federal benefit5.0 
Other(1.2)
Provision for income taxes - 4.7%
$3.8 
6. NET INCOME PER SHARE
Basic net income per share is computed by dividing Net income by the Basic weighted average shares outstanding for the reporting period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of Diluted net income per share, the Basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the Diluted net income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:
Thirteen Week Periods EndedThirty-Nine Week Periods Ended
March 30,
2022
March 24,
2021
March 30,
2022
March 24,
2021
Basic weighted average shares outstanding44.4 45.5 45.2 45.3 
Dilutive stock options0.1 0.5 0.2 0.3 
Dilutive restricted shares0.6 0.7 0.6 0.6 
Total dilutive impact0.7 1.2 0.8 0.9 
Diluted weighted average shares outstanding45.1 46.7 46.0 46.2 
Awards excluded due to anti-dilutive effect1.1 0.0 0.7 0.7 

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7. SEGMENT INFORMATION
Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also has Company-owned restaurants in Canada, and franchised locations in the United States, 28 countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as the results from our domestic franchise business. The Other segment includes costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, finance, franchise, marketing, human resources and culinary innovation. The Other segment also includes costs related to the common and shared infrastructure, including accounting, information technology, purchasing, guest relations, legal and restaurant development.
Company sales for each segment include revenues generated by the operation of Company-owned restaurants including gift card redemptions and revenues from our virtual brands. Franchise and other revenues for each operating segment include royalties, gift card breakage, delivery income, Maggiano’s banquet service charge income, digital entertainment revenue, franchise advertising fees, franchise and development fees, gift card equalization and gift card discount costs from third-party gift card sales.
We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. There were no material transactions amongst our operating segments.
Our chief operating decision maker uses Operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses during the periods presented primarily included restaurant rent, supplies, property and equipment maintenance, delivery fees, utilities, credit card processing fees, property taxes, supervision expenses, and worker’s comp and general liability insurance.

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The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:
Thirteen Week Period Ended March 30, 2022
Chili’s(1)
Maggiano’sOtherConsolidated
Company sales$863.3 $97.3 $ $960.6 
Royalties7.8 0.1  7.9 
Franchise fees and other revenues8.5 3.4  11.9 
Franchise and other revenues16.3 3.5  19.8 
Total revenues879.6 100.8  980.4 
Food and beverage costs245.6 24.7  270.3 
Restaurant labor295.0 34.1  329.1 
Restaurant expenses215.2 28.7 0.2 244.1 
Depreciation and amortization35.9 3.4 2.9 42.2 
General and administrative9.5 2.3 27.4 39.2 
Other (gains) and charges5.2 0.0 0.9 6.1 
Total operating costs and expenses806.4 93.2 31.4 931.0 
Operating income (loss)73.2 7.6 (31.4)49.4 
Interest expenses1.2 0.1 9.8 11.1 
Other income, net  (0.4)(0.4)
Income (loss) before income taxes$72.0 $7.5 $(40.8)$38.7 
Thirteen Week Period Ended March 24, 2021
Chili’sMaggiano’sOtherConsolidated
Company sales$749.0 $64.7 $ $813.7 
Royalties7.7   7.7 
Franchise fees and other revenues6.3 0.7  7.0 
Franchise and other revenues14.0 0.7  14.7 
Total revenues763.0 65.4  828.4 
Food and beverage costs198.7 15.2  213.9 
Restaurant labor248.7 22.1  270.8 
Restaurant expenses194.2 21.7 0.2 216.1 
Depreciation and amortization31.0 3.4 3.0 37.4 
General and administrative7.0 1.3 25.4 33.7 
Other (gains) and charges3.1 0.3 0.9 4.3 
Total operating costs and expenses682.7 64.0 29.5 776.2 
Operating income (loss)80.3 1.4 (29.5)52.2 
Interest expenses1.4  12.7 14.1 
Other income, net(0.1) (0.2)(0.3)
Income (loss) before income taxes$79.0 $1.4 $(42.0)$38.4 

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Thirty-Nine Week Period Ended March 30, 2022
Chili’s(1)
Maggiano’sOtherConsolidated
Company sales$2,428.5 $296.2 $ $2,724.7 
Royalties25.4 0.3  25.7 
Franchise fees and other revenues21.5 10.7  32.2 
Franchise and other revenues46.9 11.0  57.9 
Total revenues2,475.4 307.2  2,782.6 
Food and beverage costs683.8 73.6  757.4 
Restaurant labor846.1 103.3  949.4 
Restaurant expenses624.8 86.8 0.5 712.1 
Depreciation and amortization104.3 10.2 8.6 123.1 
General and administrative24.7 6.2 77.9 108.8 
Other (gains) and charges10.2 0.2 6.6 17.0 
Total operating costs and expenses2,293.9 280.3 93.6 2,667.8 
Operating income (loss)181.5 26.9 (93.6)114.8 
Interest expenses4.0 0.3 30.5 34.8 
Other income, net(0.3) (0.9)(1.2)
Income (loss) before income taxes$177.8 $26.6 $(123.2)$81.2 
Segment assets$2,120.7 $227.6 $110.5 $2,458.8 
Segment goodwill156.7 38.4  195.1 
Payments for property and equipment96.7 6.8 5.5 109.0 
Thirty-Nine Week Period Ended March 24, 2021
Chili’sMaggiano’sOtherConsolidated
Company sales$2,107.0 $181.1 $ $2,288.1 
Royalties21.9 0.1  22.0 
Franchise fees and other revenues17.0 2.1  19.1 
Franchise and other revenues38.9 2.2  41.1 
Total revenues2,145.9 183.3  2,329.2 
Food and beverage costs563.2 43.1  606.3 
Restaurant labor710.3 64.3  774.6 
Restaurant expenses564.6 64.6 0.7 629.9 
Depreciation and amortization92.4 10.4 9.2 112.0 
General and administrative17.8 3.9 72.5 94.2 
Other (gains) and charges11.1 1.2 1.2 13.5 
Total operating costs and expenses1,959.4 187.5 83.6 2,230.5 
Operating income (loss)186.5 (4.2)(83.6)98.7 
Interest expenses4.2 0.1 38.8 43.1 
Other income, net(0.4) (0.8)(1.2)
Income (loss) before income taxes$182.7 $(4.3)$(121.6)$56.8 
Payments for property and equipment$56.3 $1.4 $4.7 $62.4 

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