Segment Reporting

9 Months Ended

Jul. 09, 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):

	Quarter						Year-to-date
	July 9, 2017			July 3, 2016			July 9, 2017			July 3, 2016
Revenues by segment:
Jack in the Box restaurant operations	$	246,101		$	264,493		$	865,166		$	876,138
Qdoba restaurant operations	111,745			104,445			350,002			324,774
Consolidated revenues	$	357,846		$	368,938		$	1,215,168		$	1,200,912
Earnings from operations by segment:
Jack in the Box restaurant operations	$	59,423		$	69,528		$	220,485		$	218,364
Qdoba restaurant operations	11,905			14,172			29,126			33,532
Shared services and unallocated costs	(17,597		)	(28,404		)	(65,029		)	(82,115		)
Gains on the sale of company-operated restaurants	13,250			409			21,166			1,224
Consolidated earnings from operations	66,981			55,705			205,748			171,005
Interest expense, net	11,433			7,613			35,091			22,699
Consolidated earnings from continuing operations and before income taxes	$	55,548		$	48,092		$	170,657		$	148,306
Total depreciation expense by segment:
Jack in the Box restaurant operations	$	13,731		$	14,877		$	47,503		$	50,409
Qdoba restaurant operations	4,875			4,536			16,274			14,403
Shared services and unallocated costs	1,608			1,401			5,222			4,936
Consolidated depreciation expense	$	20,214		$	20,814		$	68,999		$	69,748

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	(4,795		)	—		(4,795		)
Acquisition of franchise-operated restaurants	11,712			—		11,712
Balance at July 9, 2017	$	55,332		$	117,631	$	172,963

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