Segment Reporting

12 Months Ended

Sep. 28, 2014

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Our principal business consists of developing, operating and franchising our Jack in the Box and Qdoba restaurant concepts, each of which we consider reportable operating segments. Since the beginning of 2012, we have been engaged in restructuring activities related to our internal organization and have now instituted a shared-services model (refer also to Note 9, Impairment, Disposition of Property and Equipment, Restaurant Closing Costs and Restructuring). As a result, in fiscal 2014, our chief operating decision makers, which consist of a collective group of executive leadership, revised the method by which they determine performance and strategy for our segments. This change was made to reflect a shared-services model whereby each brand’s results of operations are assessed separately and do not include costs related to certain corporate functions which support both brands. This segment reporting structure reflects the Company’s current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. This change to our segment reporting did not change our reporting units for goodwill.

We measure and evaluate our segments based on segment revenues and earnings from operations. The reportable segments do not include an allocation of the costs related to shared service functions, such as accounting/finance, human resources, audit services, legal, tax and treasury; nor do they include unallocated costs such as pension expense and share-based compensation. These costs are reflected in the caption “Shared services and unallocated costs,” and therefore, the measure of segment profit or loss is before such items. As it was impractical to recast prior period information, 2014 segment information is reported under both the old basis and new basis of segmentation (in thousands):

	2014						2013			2012
	(New)			(Old)
Revenues by Segment:
Jack in the Box restaurant operations	$	1,127,243		$	1,127,243		$	1,179,295		$	1,252,028
Qdoba restaurant operations	356,888			356,888			310,572			257,267
Consolidated revenues	$	1,484,131		$	1,484,131		$	1,489,867		$	1,509,295
Earnings from Operations by Segment:
Jack in the Box restaurant operations	$	235,574		$	130,408		$	113,864		$	96,302
Qdoba restaurant operations	34,287			32,016			24,470			24,717
FFE operations (1)	—			(116		)	(129		)	(203		)
Shared services and unallocated costs	(104,005		)	—			—			—
Gains on the sale of company-operated restaurants	(3,548		)	—			—			—
Consolidated earnings from operations	162,308			162,308			138,205			120,816
Interest expense, net	15,678			15,678			15,251			18,874
Consolidated earnings from continuing operations and before income taxes	$	146,630		$	146,630		$	122,954		$	101,942
Total Expenditures for Long-Lived Assets by Segment (Including Discontinued Operations):
Jack in the Box restaurant operations	$	30,858		$	38,132		$	55,221		$	56,378
Qdoba restaurant operations	17,967			22,393			29,469			23,621
Shared services and unallocated costs	11,700			—			—			—
Distribution operations	—			—			—			201
Consolidated expenditures for long-lived assets	$	60,525		$	60,525		$	84,690		$	80,200
Total Depreciation Expense by Segment:
Jack in the Box restaurant operations	$	66,409		$	73,663		$	76,191		$	79,287
Qdoba restaurant operations	16,992			16,992			15,815			13,309
Shared services and unallocated costs	7,254			—			—			—
Consolidated depreciation expense	$	90,655		$	90,655		$	92,006		$	92,596

Interest income and expense, income taxes and total assets are not reported for our segments, in accordance with our method of internal reporting.