Jack In The Box 2008 Annual Report Download - page 78

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Legal Matters — We are subject to normal and routine litigation. In the opinion of management, based in part
on the advice of legal counsel, the ultimate liability from all pending legal proceedings, asserted legal claims and
known potential legal claims should not materially affect our operating results, financial position or liquidity.
13. SEGMENT REPORTING
In the first quarter of fiscal 2008, reflecting our vision of being a national restaurant company and the
information currently being used in managing the Company as a two-branded restaurant operations business, we
revised the composition of our segments to include results related to system restaurant operations for our JACK IN THE
BOX and Qdoba brands. This segment reporting structure reflects the Company’s current management structure,
internal reporting method, and financial information used in deciding how to allocate Company resources. Based
upon certain quantitative thresholds, both operating segments are considered reportable segments.
We measure and evaluate our segments based on segment earnings from operations. All fiscal 2007 and 2006
amounts have been revised to conform to the new segment reporting as previously described. Summarized financial
information concerning our reportable segment is shown in the following table (in thousands):
2008 2007 2006
Revenues by Segment:
Jack in the Box restaurant operations segment ........ $2,146,595 $2,196,398 $2,135,752
Qdoba restaurant operations segment. .............. 117,740 94,473 74,944
Distribution operations ......................... 275,226 222,560 170,548
Consolidated revenues ......................... $2,539,561 $2,513,431 $2,381,244
Earnings from Operations by Segment:
Jack in the Box restaurant operations segment ........ $ 202,054 $ 203,172 $ 165,660
Qdoba restaurant operations segment. .............. 11,481 11,005 9,210
Distribution operations ......................... 2,353 2,819 2,455
Consolidated earnings from operations ............. $ 215,888 $ 216,996 $ 177,325
Total Expenditures for Long-Lived Assets by Segment:
Jack in the Box restaurant operations segment ........ $ 161,803 $ 138,959 $ 126,425
Qdoba restaurant operations segment. .............. 15,241 8,884 7,957
Distribution and Quick Stuff ..................... 3,525 6,339 15,650
Consolidated expenditures for long-lived assets ....... $ 180,569 $ 154,182 $ 150,032
Interest income and expense, income taxes and total assets are not reported for our segments, in accordance
with our method of internal reporting.
14. SUPPLEMENTAL CASH FLOW INFORMATION
Additional information related to cash flows is as follows (in thousands):
2008 2007 2006
Cash paid during the year for:
Interest, net of amounts capitalized ....................... $25,732 $28,247 $20,234
Income tax payments ................................. 68,454 90,709 44,285
Capital lease obligations incurred .......................... — 464 1,818
F-32
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)