Segment Reporting

6 Months Ended

Apr. 12, 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 our current management structure, internal reporting method and financial information used in deciding how to allocate our 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):

	Quarter						Year-to-date
	April 12, 2015			April 13, 2014			April 12, 2015			April 13, 2014
Revenues by segment:
Jack in the Box restaurant operations	$	269,444		$	260,089		$	621,395		$	609,912
Qdoba restaurant operations	88,678			80,781			205,348			181,040
Consolidated revenues	$	358,122		$	340,870		$	826,743		$	790,952
Earnings from operations by segment:
Jack in the Box restaurant operations	$	64,313		$	53,617		$	145,168		$	129,920
Qdoba restaurant operations	8,778			7,105			23,460			16,713
Shared services and unallocated costs	(26,203		)	(29,600		)	(59,354		)	(58,768		)
(Losses) gains on the sale of company-operated restaurants	(5,020		)	1,757			(4,170		)	2,218
Consolidated earnings from operations	41,868			32,879			105,104			90,083
Interest expense, net	4,220			4,311			9,433			8,853
Consolidated earnings from continuing operations and before income taxes	$	37,648		$	28,568		$	95,671		$	81,230
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	14,699		$	15,418		$	34,314		$	36,269
Qdoba restaurant operations	1,612			3,906			3,872			9,136
Shared services and unallocated costs	4,035			1,785			9,315			3,924
Consolidated depreciation expense	$	20,346		$	21,109		$	47,501		$	49,329

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	—		(32		)	(32		)
Balance at April 12, 2015	$	100,597	$	48,445		$	149,042

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