Discontinued Operations

12 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

During the fourth quarter of 2012, we entered into an agreement with a third party distribution service provider pursuant to a Board-approved plan to sell our Jack in the Box distribution business. Our distribution business assets to be sold are classified as assets of discontinued operations in the consolidated balance sheet for each year presented. The operations and cash flows of the business will be eliminated and in accordance with the provisions of ASC 360, Property, Plant, and Equipment, the results are reported as discontinued operations for all periods presented.

The following is a summary of our distribution business assets held for sale as of September 30, 2012 and October 2, 2011 (in thousands):

	2012		2011
Inventories	$	26,844	$	31,402
Property and equipment, net	3,747		4,041
Total assets of discontinued operations	$	30,591	$	35,443

The following is a summary of our distribution business's operating results, which are included in discontinued operations for fiscal 2012, 2011 and 2010 (in thousands):

	2012			2011			2010
Revenue	$	616,982		$	530,959		$	397,977
Operating loss before income tax benefit	$	(8,777	)	$	(2,429	)	$	(1,653	)

The operating loss in fiscal 2012 includes charges of $6.0 million for accelerated depreciation of a long-lived asset which will be disposed of upon completion of the transaction and $0.7 million for future lease commitments. We expect to complete the sale in the first quarter of fiscal 2013. The loss on the sale of the distribution business is not expected to be material.