Jack In The Box 2011 Annual Report Download - page 81

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Table of Contents


in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the
amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing
contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine the adequacy
of the accruals and related disclosures. The amount of ultimate loss may differ from these estimates. Although the Company currently believes that the
ultimate outcome of these matters will not have a material adverse effect on the results of operations, liquidity or financial position of the Company, it is
possible that the results of operations, liquidity, or financial position of the Company could be materially affected in any particular future reporting
period by the unfavorable resolution of one or more of these matters or contingencies.
 
Reflecting the information currently being used in managing the Company as a two-branded restaurant operations business, our segments comprise
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. Summarized financial information concerning our reportable
segments is shown in the following table (in thousands):
  

Jack in the Box restaurant operations segment $ 1,445,105 $ 1,731,130 $2,025,755
Qdoba restaurant operations segment 217,234 168,424 143,206
Distribution operations 530,959 397,977 302,135
Consolidated revenues $ 2,193,298 $ 2,297,531 $ 2,471,096

Jack in the Box restaurant operations segment $ 133,898 $ 111,983 $ 218,740
Qdoba restaurant operations segment 11,409 11,580 10,690
Distribution operations (2,429) (1,653) 1,838
FFE operations (245) - -
Consolidated earnings from operations $ 142,633 $ 121,910 $ 231,268

Jack in the Box restaurant operations segment $ 100,142 $ 80,855 $ 133,353
Qdoba restaurant operations segment 24,236 13,572 19,189
Distribution operations 4,934 1,183 958
Consolidated expenditures for long-lived assets $ 129,312 $ 95,610 $ 153,500

Jack in the Box restaurant operations segment $ 81,827 $ 90,168 $ 91,741
Qdoba restaurant operations segment 13,018 10,117 8,079
Distribution operations 690 753 724
Consolidated depreciation expense $ 95,535 $ 101,038 $ 100,544
Interest income and expense, income taxes and total assets are not reported for our segments, in accordance with our method of internal reporting.
F-37