Segment Reporting

9 Months Ended

Jul. 05, 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
	July 5, 2015			July 6, 2014			July 5, 2015			July 6, 2014
Revenues by segment:
Jack in the Box restaurant operations	$	263,339		$	259,737		$	884,734		$	869,650
Qdoba restaurant operations	96,167			88,755			301,515			269,794
Consolidated revenues	$	359,506		$	348,492		$	1,186,249		$	1,139,444
Earnings from operations by segment:
Jack in the Box restaurant operations	$	62,355		$	54,413		$	207,523		$	184,333
Qdoba restaurant operations	13,805			9,641			37,265			26,354
Shared services and unallocated costs	(25,582		)	(21,078		)	(84,936		)	(79,846		)
(Losses) gains on the sale of company-operated restaurants	(183		)	24			(4,353		)	2,242
Consolidated earnings from operations	50,395			43,000			155,499			133,083
Interest expense, net	4,504			3,535			13,937			12,388
Consolidated earnings from continuing operations and before income taxes	$	45,891		$	39,465		$	141,562		$	120,695
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	14,737		$	15,110		$	49,051		$	51,379
Qdoba restaurant operations	3,864			3,893			13,179			13,029
Shared services and unallocated costs	1,573			1,688			5,445			5,612
Consolidated depreciation expense	$	20,174		$	20,691		$	67,675		$	70,020

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 July 5, 2015	$	100,597	$	48,445		$	149,042

Refer to Note 4, Summary of Refranchisings, Franchisee Development and Acquisitions, for information regarding the transactions resulting in the changes in goodwill.