Segment Reporting

4 Months Ended

Jan. 18, 2015

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. 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.

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. The following table provides information related to our segments in each period (in thousands):

	Sixteen Weeks Ended
	January 18, 2015			January 19, 2014
Revenues by segment:
Jack in the Box restaurant operations	$	351,951		$	349,824
Qdoba restaurant operations	116,670			100,257
Consolidated revenues	$	468,621		$	450,081
Earnings from operations by segment:
Jack in the Box restaurant operations	$	80,857		$	76,366
Qdoba restaurant operations	14,676			9,606
Shared services and unallocated costs	(33,147		)	(29,229		)
Gains on the sale of company-operated restaurants	850			461
Consolidated earnings from operations	63,236			57,204
Interest expense, net	5,213			4,542
Consolidated earnings from continuing operations and before income taxes	$	58,023		$	52,662
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	19,615		$	20,851
Qdoba restaurant operations	5,280			5,230
Shared services and unallocated costs	2,260			2,139
Consolidated depreciation expense	$	27,155		$	28,220

Income taxes and total assets are not reported for our segments in accordance with our method of internal reporting.

The following table provides detail of the change in the balance of goodwill for each of our reportable segments (in thousands):

	Qdoba		Jack in the Box			Total
Balance at September 28, 2014	$	100,597	$	48,477		$	149,074
Disposals	—		(16		)	(16		)
Balance at January 18, 2015	$	100,597	$	48,461		$	149,058

Refer to Note 3, Summary of Refranchisings, Franchisee Development and Acquisitions, for information regarding the transactions resulting in the changes in goodwill.