Segment Reporting

4 Months Ended

Jan. 22, 2017

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 service functions; 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):

	Sixteen Weeks Ended
	January 22, 2017			January 17, 2016
Revenues by segment:
Jack in the Box restaurant operations	$	353,181		$	347,583
Qdoba restaurant operations	134,752			123,240
Consolidated revenues	$	487,933		$	470,823
Earnings from operations by segment:
Jack in the Box restaurant operations	$	92,404		$	85,690
Qdoba restaurant operations	8,732			8,737
Shared services and unallocated costs	(28,156		)	(32,731		)
Gains on the sale of company-operated restaurants	137			818
Consolidated earnings from operations	73,117			62,514
Interest expense, net	12,717			8,175
Consolidated earnings from continuing operations and before income taxes	$	60,400		$	54,339
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	19,289		$	20,473
Qdoba restaurant operations	6,492			5,588
Shared services and unallocated costs	1,974			2,225
Consolidated depreciation expense	$	27,755		$	28,286

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 October 2, 2016	$	48,415		$	117,631	$	166,046
Sale of company-operated restaurants to franchisees	(1		)	—		(1		)
Balance at January 22, 2017	$	48,414		$	117,631	$	166,045

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