Segment Reporting

9 Months Ended

Jul. 03, 2016

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 a reportable operating segment. 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 services functions, such as accounting/finance, human resources, audit services, legal, tax and treasury; nor do they include unallocated costs such as pension expense, share-based compensation and restructuring expense. These costs are reflected in the caption “Shared services and unallocated costs.” The following table provides information related to our operating segments in each period (in thousands):

	Quarter						Year-to-date
	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
Revenues by segment:
Jack in the Box restaurant operations	$	264,493		$	263,339		$	876,138		$	884,734
Qdoba restaurant operations	104,445			96,167			324,774			301,515
Consolidated revenues	$	368,938		$	359,506		$	1,200,912		$	1,186,249
Earnings from operations by segment:
Jack in the Box restaurant operations	$	69,528		$	62,355		$	218,364		$	207,523
Qdoba restaurant operations	14,172			13,805			33,532			37,265
Shared services and unallocated costs	(28,404		)	(25,582		)	(82,115		)	(84,936		)
Gains (losses) on the sale of company-operated restaurants	409			(183		)	1,224			(4,353		)
Consolidated earnings from operations	55,705			50,395			171,005			155,499
Interest expense, net	7,613			4,504			22,699			13,937
Consolidated earnings from continuing operations and before income taxes	$	48,092		$	45,891		$	148,306		$	141,562
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	14,877		$	14,737		$	50,409		$	49,051
Qdoba restaurant operations	4,536			3,864			14,403			13,179
Shared services and unallocated costs	1,401			1,573			4,936			5,445
Consolidated depreciation expense	$	20,814		$	20,174		$	69,748		$	67,675

We do not evaluate, manage or measure performance of segments using asset, interest income and expense, or income tax information; accordingly, this information by segment is not prepared or disclosed.

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

	Jack in the Box			Qdoba		Total
Balance at September 27, 2015	$	48,430		$	100,597	$	149,027
Disposals	(20		)	—		(20		)
Balance at July 3, 2016	$	48,410		$	100,597	$	149,007

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