Jamba Juice 2014 Annual Report Download - page 49

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Fiscal Year 2013 to Fiscal Year 2012
Interest expense in fiscal 2013 and fiscal 2012 was $0.2 million.

Fiscal Year 2014 to Fiscal Year 2013
Income tax expense in fiscal 2014 was $(0.2) million compared to an income tax expense of $(0.1) million for fiscal 2013. The increase in income tax
expense was primarily due to an increase in foreign withholding tax and the impact of a non-recurring adjustment in the prior year. The increase in foreign
withholding taxes was primarily due to the increase in our franchise and royalty income in the foreign countries in fiscal 2014.
Fiscal Year 2013 to Fiscal Year 2012
Income tax expense in fiscal 2013 was $(0.1) million compared to an income tax expense of $(0.2) million for fiscal 2012. The decrease in income tax
expense was primarily due to the foreign withholding taxes and a favorable adjustment of our federal alternative minimum tax liability in fiscal 2013. The
increase in foreign withholding taxes was primarily due to the increase in our franchise and royalty income in foreign countries in fiscal 2013.

Management reviews and discusses its operations based on both financial and non-financial metrics. Among the key financial metrics upon which
management focuses, is reviewing the performance based on the Company’s consolidated GAAP results, including Company Store comparable sales.
Management also uses certain supplemental, non-GAAP financial metrics in evaluating financial results, including Franchise Store comparable sales and
system-wide comparable sales.
Company Store comparable sales represent the change in year-over-year sales for all Company Stores opened for at least one full fiscal year.
Franchise Store comparable sales, a non-GAAP financial measure, represents the change in year-over-year sales for all Franchise Stores opened for at least
one full fiscal year, as reported by franchisees and excludes International Stores.
System-wide comparable store sales, a non-GAAP financial measure, represents the change in year-over-year sales for all Company and Franchise Stores
opened for at least one full fiscal year and are based on sales by both company-owned and domestic franchise-operated stores, as reported by franchisees,
which are in the store base. System-wide comparable store sales do not include International Stores and JambaGO® locations.
Company-owned stores that were sold in refranchising transactions are included in the store base for each accounting period of the fiscal quarter in which
the store was sold to the extent the sale is consummated at least three days prior to the end of such accounting period, but only for the days such stores have
been company-owned. Thereafter, such stores are excluded from the store base until such stores have been franchise-operated for at least one full fiscal period
at which point such stores are included in the store base and compared to sales in the comparable period of the prior year. Comparable store sales exclude
closed locations.
Management reviews the increase or decrease in Company Store comparable store sales, Franchise Store comparable sales and system-wide comparable
sales compared with the same period in the prior year to assess business trends and make certain business decisions. The Company believes that Franchise
Store comparable sales and system-wide comparable sales data, non-GAAP financial measures, are useful in assessing the overall performance of the Jamba
brand and, ultimately, the performance of the Company.
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