DELAWARE | 95-2698708 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
9330 BALBOA AVENUE, SAN DIEGO, CA | 92123 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | þ | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Condensed Consolidated Statements of Earnings | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | Defaults of Senior Securities | |
Item 4. | ||
Item 5. | ||
Item 6. | ||
January 22, 2017 | October 2, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 6,090 | $ | 17,030 | |||
Accounts and other receivables, net | 54,711 | 73,360 | |||||
Inventories | 8,344 | 8,229 | |||||
Prepaid expenses | 12,631 | 40,398 | |||||
Assets held for sale | 18,357 | 14,259 | |||||
Other current assets | 2,371 | 2,129 | |||||
Total current assets | 102,504 | 155,405 | |||||
Property and equipment, at cost | 1,596,676 | 1,605,576 | |||||
Less accumulated depreciation and amortization | (899,077 | ) | (886,526 | ) | |||
Property and equipment, net | 697,599 | 719,050 | |||||
Intangible assets, net | 13,793 | 14,042 | |||||
Goodwill | 166,045 | 166,046 | |||||
Other assets, net | 278,616 | 290,469 | |||||
$ | 1,258,557 | $ | 1,345,012 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 55,931 | $ | 55,935 | |||
Accounts payable | 30,052 | 40,736 | |||||
Accrued liabilities | 134,701 | 181,250 | |||||
Total current liabilities | 220,684 | 277,921 | |||||
Long-term debt, net of current maturities | 985,588 | 935,372 | |||||
Other long-term liabilities | 325,526 | 348,925 | |||||
Stockholders’ deficit: | |||||||
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | — | — | |||||
Common stock $0.01 par value, 175,000,000 shares authorized, 81,824,541 and 81,598,524 issued, respectively | 818 | 816 | |||||
Capital in excess of par value | 445,147 | 432,564 | |||||
Retained earnings | 1,422,614 | 1,399,721 | |||||
Accumulated other comprehensive loss | (170,388 | ) | (187,021 | ) | |||
Treasury stock, at cost, 50,182,807 and 49,190,992 shares, respectively | (1,971,432 | ) | (1,863,286 | ) | |||
Total stockholders’ deficit | (273,241 | ) | (217,206 | ) | |||
$ | 1,258,557 | $ | 1,345,012 |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Revenues: | |||||||
Company restaurant sales | $ | 367,270 | $ | 353,221 | |||
Franchise rental revenues | 71,469 | 69,738 | |||||
Franchise royalties and other | 49,194 | 47,864 | |||||
487,933 | 470,823 | ||||||
Operating costs and expenses, net: | |||||||
Company restaurant costs: | |||||||
Food and packaging | 108,936 | 108,911 | |||||
Payroll and employee benefits | 106,921 | 97,907 | |||||
Occupancy and other | 83,044 | 77,699 | |||||
Total company restaurant costs | 298,901 | 284,517 | |||||
Franchise occupancy expenses | 51,449 | 52,219 | |||||
Franchise support and other costs | 3,838 | 4,862 | |||||
Selling, general and administrative expenses | 55,708 | 65,872 | |||||
Impairment and other charges, net | 5,057 | 1,657 | |||||
Gains on the sale of company-operated restaurants | (137 | ) | (818 | ) | |||
414,816 | 408,309 | ||||||
Earnings from operations | 73,117 | 62,514 | |||||
Interest expense, net | 12,717 | 8,175 | |||||
Earnings from continuing operations and before income taxes | 60,400 | 54,339 | |||||
Income taxes | 23,366 | 20,442 | |||||
Earnings from continuing operations | 37,034 | 33,897 | |||||
Losses from discontinued operations, net of income tax benefit | (1,105 | ) | (676 | ) | |||
Net earnings | $ | 35,929 | $ | 33,221 | |||
Net earnings per share - basic: | |||||||
Earnings from continuing operations | $ | 1.15 | $ | 0.96 | |||
Losses from discontinued operations | (0.03 | ) | (0.02 | ) | |||
Net earnings per share (1) | $ | 1.12 | $ | 0.94 | |||
Net earnings per share - diluted: | |||||||
Earnings from continuing operations | $ | 1.14 | $ | 0.94 | |||
Losses from discontinued operations | (0.03 | ) | (0.02 | ) | |||
Net earnings per share (1) | $ | 1.11 | $ | 0.92 | |||
Weighted-average shares outstanding: | |||||||
Basic | 32,168 | 35,458 | |||||
Diluted | 32,442 | 35,946 | |||||
Cash dividends declared per common share | $ | 0.40 | $ | 0.30 |
(1) | Earnings per share may not add due to rounding. |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Net earnings | $ | 35,929 | $ | 33,221 | |||
Cash flow hedges: | |||||||
Net change in fair value of derivatives | 23,086 | (11,437 | ) | ||||
Net loss reclassified to earnings | 2,066 | 1,444 | |||||
25,152 | (9,993 | ) | |||||
Tax effect | (9,731 | ) | 3,868 | ||||
15,421 | (6,125 | ) | |||||
Unrecognized periodic benefit costs: | |||||||
Actuarial losses and prior service costs reclassified to earnings | 1,978 | 1,398 | |||||
Tax effect | (766 | ) | (541 | ) | |||
1,212 | 857 | ||||||
Other: | |||||||
Foreign currency translation adjustments | — | (52 | ) | ||||
Tax effect | — | 20 | |||||
— | (32 | ) | |||||
Other comprehensive income (loss), net of tax | 16,633 | (5,300 | ) | ||||
Comprehensive income | $ | 52,562 | $ | 27,921 |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 35,929 | $ | 33,221 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 27,987 | 28,514 | |||||
Deferred finance cost amortization | 1,123 | 823 | |||||
Excess tax benefits from share-based compensation arrangements | (3,981 | ) | (2,020 | ) | |||
Deferred income taxes | 2,239 | (2,128 | ) | ||||
Share-based compensation expense | 3,814 | 4,088 | |||||
Pension and postretirement expense | 1,297 | 4,149 | |||||
Losses on cash surrender value of company-owned life insurance | 326 | 2,466 | |||||
Gains on the sale of company-operated restaurants | (137 | ) | (818 | ) | |||
Losses on the disposition of property and equipment | 699 | 651 | |||||
Impairment charges and other | 1,871 | 446 | |||||
Changes in assets and liabilities: | |||||||
Accounts and other receivables | 19,378 | (4,204 | ) | ||||
Inventories | (115 | ) | (495 | ) | |||
Prepaid expenses and other current assets | 31,506 | 1,205 | |||||
Accounts payable | (5,487 | ) | 7,386 | ||||
Accrued liabilities | (43,328 | ) | (25,403 | ) | |||
Pension and postretirement contributions | (1,440 | ) | (1,883 | ) | |||
Other | (726 | ) | (1,089 | ) | |||
Cash flows provided by operating activities | 70,955 | 44,909 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (20,865 | ) | (31,543 | ) | |||
Purchases of assets intended for sale and leaseback | (1,770 | ) | (3,274 | ) | |||
Proceeds from the sale and leaseback of assets | 2,466 | 5,803 | |||||
Proceeds from the sale of company-operated restaurants | 138 | 1,021 | |||||
Collections on notes receivable | 298 | 441 | |||||
Acquisition of franchise-operated restaurants | — | 324 | |||||
Other | 51 | (28 | ) | ||||
Cash flows used in investing activities | (19,682 | ) | (27,256 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings on revolving credit facilities | 231,000 | 176,000 | |||||
Repayments of borrowings on revolving credit facilities | (167,000 | ) | (97,000 | ) | |||
Principal repayments on debt | (14,438 | ) | (8,479 | ) | |||
Dividends paid on common stock | (12,962 | ) | (10,592 | ) | |||
Proceeds from issuance of common stock | 4,756 | 492 | |||||
Repurchases of common stock | (115,354 | ) | (100,000 | ) | |||
Excess tax benefits from share-based compensation arrangements | 3,981 | 2,020 | |||||
Change in book overdraft | 7,804 | 9,295 | |||||
Cash flows used in financing activities | (62,213 | ) | (28,264 | ) | |||
Effect of exchange rate changes on cash | — | (32 | ) | ||||
Net decrease in cash | (10,940 | ) | (10,643 | ) | |||
Cash at beginning of period | 17,030 | 17,743 | |||||
Cash at end of period | $ | 6,090 | $ | 7,100 |
January 22, 2017 | January 17, 2016 | ||||
Jack in the Box: | |||||
Company-operated | 419 | 413 | |||
Franchise | 1,842 | 1,840 | |||
Total system | 2,261 | 2,253 | |||
Qdoba: | |||||
Company-operated | 376 | 330 | |||
Franchise | 336 | 344 | |||
Total system | 712 | 674 |
2. | DISCONTINUED OPERATIONS |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Unfavorable lease commitment adjustments | $ | (2,060 | ) | $ | (1,006 | ) | |
Bad debt expense related to subtenants | 389 | (124 | ) | ||||
Broker commissions | (26 | ) | — | ||||
Ongoing facility related and other costs | (18 | ) | (38 | ) | |||
Loss before income tax benefit | $ | (1,715 | ) | $ | (1,168 | ) |
Balance as of October 2, 2016 | $ | 2,943 | |
Adjustments (1) | 2,060 | ||
Cash payments | (1,123 | ) | |
Balance as of January 22, 2017 (2) | $ | 3,880 |
(1) | Adjustments relate to revisions to certain sublease assumptions due to changes in market conditions, as well as a charge to terminate two lease agreements, and includes interest expense. |
(2) | The weighted average remaining lease term related to these commitments is approximately three years. |
3. | SUMMARY OF REFRANCHISINGS, FRANCHISEE DEVELOPMENT AND ACQUISITIONS |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Restaurants sold to Jack in the Box franchisees | — | 1 | |||||
New restaurants opened by franchisees: | |||||||
Jack in the Box | 7 | 5 | |||||
Qdoba | 8 | 6 | |||||
Initial franchise fees | $ | 425 | $ | 385 | |||
Proceeds from the sale of company-operated restaurants (1) | $ | 138 | $ | 1,021 | |||
Net assets sold (primarily property and equipment) | — | (193 | ) | ||||
Goodwill related to the sale of company-operated restaurants | (1 | ) | (10 | ) | |||
Gains on the sale of company-operated restaurants | $ | 137 | $ | 818 |
(1) | Amounts in 2017 and 2016 include additional proceeds related to restaurants sold in a prior year of $0.1 million and $1.0 million, respectively. |
4. | FAIR VALUE MEASUREMENTS |
Total | Quoted Prices in Active Markets for Identical Assets (3) (Level 1) | Significant Other Observable Inputs (3) (Level 2) | Significant Unobservable Inputs (3) (Level 3) | ||||||||||||
Fair value measurements as of January 22, 2017: | |||||||||||||||
Non-qualified deferred compensation plan (1) | $ | (38,664 | ) | $ | (38,664 | ) | $ | — | $ | — | |||||
Interest rate swaps (Note 5) (2) | (22,613 | ) | — | (22,613 | ) | — | |||||||||
Total liabilities at fair value | $ | (61,277 | ) | $ | (38,664 | ) | $ | (22,613 | ) | $ | — | ||||
Fair value measurements as of October 2, 2016: | |||||||||||||||
Non-qualified deferred compensation plan (1) | $ | (36,933 | ) | $ | (36,933 | ) | $ | — | $ | — | |||||
Interest rate swaps (Note 5) (2) | (47,765 | ) | — | (47,765 | ) | — | |||||||||
Total liabilities at fair value | $ | (84,698 | ) | $ | (36,933 | ) | $ | (47,765 | ) | $ | — |
(1) | We maintain an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. |
(2) | We entered into interest rate swaps to reduce our exposure to rising interest rates on our variable rate debt. The fair values of our interest rate swaps are based upon Level 2 inputs which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, discount rates and forward yield curves. |
(3) | We did not have any transfers in or out of Level 1, 2 or 3. |
5. | DERIVATIVE INSTRUMENTS |
Balance Sheet Location | Fair Value | ||||||||
January 22, 2017 | October 2, 2016 | ||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||
Interest rate swaps (Note 4) | Accrued liabilities | $ | (4,100 | ) | $ | (5,857 | ) | ||
Interest rate swaps (Note 4) | Other long-term liabilities | (18,513 | ) | (41,908 | ) | ||||
Total derivatives | $ | (22,613 | ) | $ | (47,765 | ) |
Location of Loss in Income | Sixteen Weeks Ended | ||||||||
January 22, 2017 | January 17, 2016 | ||||||||
Gain (loss) recognized in OCI | N/A | $ | 23,086 | $ | (11,437 | ) | |||
Loss reclassified from accumulated OCI into net earnings | Interest expense, net | $ | 2,066 | $ | 1,444 |
6. | IMPAIRMENT AND OTHER CHARGES, NET |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Restructuring costs | $ | 2,048 | $ | — | |||
Costs of closed restaurants (primarily lease obligations) and other | 1,997 | 560 | |||||
Losses on disposition of property and equipment, net | 699 | 651 | |||||
Accelerated depreciation | 313 | 446 | |||||
$ | 5,057 | $ | 1,657 |
Facility closing costs | $ | 1,202 | |
Employee severance and related costs | 477 | ||
Other (1) | 369 | ||
$ | 2,048 |
(1) | Other primarily represents moving expenses related to the relocation of our Qdoba corporate support center and early lease termination costs. |
Balance as of October 2, 2016 | $ | 4,198 | ||
Additions | 477 | |||
Cash payments | (3,568 | ) | ||
Balance as of January 22, 2017 | $ | 1,107 |
Balance as of October 2, 2016 | $ | 7,231 | ||
Adjustments (1) | 742 | |||
Interest expense | 363 | |||
Cash payments | (1,122 | ) | ||
Balance as of January 22, 2017 (2) (3) | $ | 7,214 |
(1) | Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors. |
(2) | The weighted average remaining lease term related to these commitments is approximately four years. |
(3) | This balance excludes $2.6 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities, which were initially recorded as losses on the sale of company-operated restaurants upon sale to Jack in the Box franchisees in prior years. |
7. | INCOME TAXES |
8. | RETIREMENT PLANS |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Defined benefit pension plans: | |||||||
Interest cost | $ | 6,996 | $ | 7,440 | |||
Service cost | 673 | 1,616 | |||||
Expected return on plan assets | (8,659 | ) | (6,694 | ) | |||
Actuarial loss (1) | 1,881 | 1,257 | |||||
Amortization of unrecognized prior service costs (1) | 47 | 74 | |||||
Net periodic benefit cost | $ | 938 | $ | 3,693 | |||
Postretirement healthcare plans: | |||||||
Interest cost | $ | 309 | $ | 389 | |||
Actuarial loss (1) | 50 | 67 | |||||
Net periodic benefit cost | $ | 359 | $ | 456 |
(1) | Amounts were reclassified from accumulated OCI into net earnings as a component of selling, general and administrative expenses. |
SERP | Postretirement Healthcare Plans | ||||||
Net year-to-date contributions | $ | 1,122 | $ | 318 | |||
Remaining estimated net contributions during fiscal 2017 | $ | 3,400 | $ | 1,000 |
9. | SHARE-BASED COMPENSATION |
Nonvested stock units | 59,248 | |
Performance share awards | 29,625 | |
Stock options | 89,792 |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Nonvested stock units | $ | 2,146 | $ | 1,815 | |||
Performance share awards | 824 | 1,271 | |||||
Stock options | 817 | 975 | |||||
Nonvested stock awards | 27 | 27 | |||||
Total share-based compensation expense | $ | 3,814 | $ | 4,088 |
10. | STOCKHOLDERS’ EQUITY |
11. | AVERAGE SHARES OUTSTANDING |
Sixteen Weeks Ended | |||||
January 22, 2017 | January 17, 2016 | ||||
Weighted-average shares outstanding – basic | 32,168 | 35,458 | |||
Effect of potentially dilutive securities: | |||||
Nonvested stock awards and units | 181 | 187 | |||
Stock options | 76 | 176 | |||
Performance share awards | 17 | 125 | |||
Weighted-average shares outstanding – diluted | 32,442 | 35,946 | |||
Excluded from diluted weighted-average shares outstanding: | |||||
Antidilutive | 44 | 149 | |||
Performance conditions not satisfied at the end of the period | 79 | — |
12. | CONTINGENCIES AND LEGAL MATTERS |
13. | SEGMENT REPORTING |
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 |
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 |
14. | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands) |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Cash paid during the year for: | |||||||
Interest, net of amounts capitalized | $ | 12,209 | $ | 8,378 | |||
Income tax payments | $ | 47 | $ | 16,012 | |||
Decrease in obligations for purchases of property and equipment | $ | 7,290 | $ | 6,025 | |||
Decrease in obligations for treasury stock repurchases | $ | 7,208 | $ | — | |||
Non-cash transactions: | |||||||
Equipment capital lease obligations incurred | $ | 254 | $ | 271 | |||
Increase in dividends accrued or converted to common stock equivalents | $ | 74 | $ | 53 |
15. | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) |
January 22, 2017 | October 2, 2016 | ||||||
Accounts and other receivables, net: | |||||||
Trade | $ | 45,688 | $ | 66,837 | |||
Notes receivable | 1,608 | 1,603 | |||||
Other | 10,065 | 7,680 | |||||
Allowance for doubtful accounts | (2,650 | ) | (2,760 | ) | |||
$ | 54,711 | $ | 73,360 | ||||
Prepaid expenses: | |||||||
Prepaid rent | $ | 5,690 | $ | 18,613 | |||
Prepaid income taxes | — | 12,113 | |||||
Other | 6,941 | 9,672 | |||||
$ | 12,631 | $ | 40,398 | ||||
Other assets, net: | |||||||
Company-owned life insurance policies | $ | 105,631 | $ | 105,957 | |||
Deferred tax assets | 104,851 | 117,587 | |||||
Deferred rent receivable | 47,815 | 47,485 | |||||
Other | 20,319 | 19,440 | |||||
$ | 278,616 | $ | 290,469 | ||||
Accrued liabilities: | |||||||
Insurance | $ | 39,389 | $ | 38,368 | |||
Payroll and related taxes | 31,892 | 44,627 | |||||
Advertising | 11,168 | 21,827 | |||||
Sales and property taxes | 8,131 | 14,311 | |||||
Gift card liability | 6,484 | 5,183 | |||||
Deferred rent income | 4,430 | 15,909 | |||||
Deferred franchise fees | 1,147 | 929 | |||||
Other | 32,060 | 40,096 | |||||
$ | 134,701 | $ | 181,250 | ||||
Other long-term liabilities: | |||||||
Defined benefit pension plans | $ | 158,892 | $ | 161,003 | |||
Straight-line rent accrual | 46,998 | 47,070 | |||||
Other | 119,636 | 140,852 | |||||
$ | 325,526 | $ | 348,925 |
16. | SUBSEQUENT EVENTS |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Overview — a general description of our business and 2017 highlights. |
• | Financial reporting — a discussion of changes in presentation, if any. |
• | Results of operations — an analysis of our condensed consolidated statements of earnings for the periods presented in our condensed consolidated financial statements. |
• | Liquidity and capital resources — an analysis of our cash flows including pension and postretirement health contributions, capital expenditures, our credit facility, share repurchase activity, dividends, known trends that may impact liquidity and the impact of inflation, if applicable. |
• | Discussion of critical accounting estimates — a discussion of accounting policies that require critical judgments and estimates. |
• | New accounting pronouncements — a discussion of new accounting pronouncements, dates of implementation and the impact on our consolidated financial position or results of operations, if any. |
• | Cautionary statements regarding forward-looking statements — a discussion of the risks and uncertainties that may cause our actual results to differ materially from any forward-looking statements made by management. |
• | Changes in sales at restaurants open more than one year (“same-store sales”) and average unit volumes (“AUVs”) are presented for franchised restaurants and on a system-wide basis, which includes company and franchise restaurants. Franchise sales represent sales at franchise restaurants and are revenues of our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and percentage rent revenues are calculated based on a percentage of franchise sales. We believe franchise and system same-store sales and AUV information is useful to investors as a significant indicator of the overall strength of our business. Due to the transition from a 53-week year in fiscal 2016 to a 52-week year in fiscal 2017, year-over-year same-store sales comparisons are off by one week. As such, we have included changes in same-store sales on a calendar basis to provide a clearer comparison. Same-store sales data that matches the periods presented in our financial statements is referred to as fiscal basis same-store sales. |
• | Company restaurant margin (“restaurant margin”) is defined as company restaurant sales less expenses incurred directly by our restaurants in generating those sales (food and packaging costs, payroll and employee benefit costs, and occupancy and other costs). We also present restaurant margin as a percentage of company restaurant sales. |
• | Franchise margin is defined as franchise rental revenues and franchise royalties and other, less franchise occupancy expenses, and franchise support and other costs, and is also presented as a percentage of franchise revenues. |
• | Calendar Basis Same-Store Sales — Calendar basis same-store sales increased 3.1% at Jack in the Box system restaurants compared with a year ago primarily driven by the impact of menu price increases and favorable mix, which were partially offset by a decline in transactions. Qdoba’s calendar basis same-store sales decreased 1.4% at company-operated restaurants compared with a year ago, driven primarily by declines in traffic, partially offset by menu price increases and catering growth. |
• | Commodity Costs — Commodity costs decreased approximately 5.6% and 3.0% at our Jack in the Box and Qdoba restaurants, respectively, in 2017 compared with a year ago. We expect our overall commodity costs in fiscal year 2017 to be approximately flat to down 1% at both our Jack in the Box and Qdoba restaurants. Beef represents the largest portion, or approximately 20%, of the Company’s overall commodity spend. We typically do not enter into fixed price contracts for our beef needs. For the full year, we currently expect beef costs to decrease approximately 5%. |
• | Restaurant Margins — Our consolidated company-operated restaurant margin decreased in 2017 to 18.6% from 19.5% a year ago. Jack in the Box’s company-operated restaurant margin improved to 21.6% in 2017 from 20.9% in the prior year due primarily to lower costs for food and packaging, partially offset by minimum wage increases in California that went into effect in January 2016, and higher maintenance costs. Company-operated restaurant margins at our Qdoba restaurants decreased to 13.1% in 2017 from 16.6% a year ago primarily reflecting the impact of new restaurant activity, sales deleverage, labor staffing inefficiencies and wage inflation, and higher costs for food and packaging. |
• | Jack in the Box Franchise Margin — Franchise margin increased in 2017 to 52.9%, from 50.1% in the prior year, due primarily to an increase in franchise rental revenue and royalties that were driven by the increase in franchise same-store sales on a fiscal basis, and a decrease in occupancy costs and savings realized in connection with our restructuring plan. |
• | Jack in the Box Franchising Program — Franchisees opened a total of seven restaurants in the first quarter of 2017. In fiscal year 2017, we expect to open approximately 20-25 Jack in the Box restaurants system-wide, the majority of which will be franchise locations. Our Jack in the Box system was 81% franchised as of January 22, 2017. We plan to increase franchise ownership of the Jack in the Box system to over 90%. Subsequent to the end of the first quarter, we signed non-binding letters of intent with franchisees to sell approximately 75 company restaurants in several different markets. Pre-tax gross proceeds related to these sales are estimated at $40.0 million to $45.0 million. |
• | Qdoba New Unit Growth — In the first quarter of 2017, we opened nine company-operated restaurants, and franchisees opened eight restaurants of which 7 were in non-traditional locations such as military bases and college campuses. In fiscal year 2017, we expect to open 50 to 60 Qdoba restaurants system-wide, of which approximately 30 are expected to be company-operated restaurants. |
• | Restructuring Costs — In 2016, we announced a plan to reduce our general and administrative costs. In connection with this plan, we have recorded $2.0 million of restructuring charges in 2017 which are included in impairment and other costs, net in the accompanying condensed consolidated statements of earnings. |
• | Return of Cash to Shareholders — We returned cash to shareholders in the form of share repurchases and cash dividends. We repurchased 992,000 shares of our common stock in 2017 at an average price of $109.04 per share, totaling $108.1 million, including the costs of brokerage fees. We also declared dividends of $0.40 per share totaling $13.0 million. |
Sixteen Weeks Ended | |||||
January 22, 2017 | January 17, 2016 | ||||
Revenues: | |||||
Company restaurant sales | 75.3 | % | 75.0 | % | |
Franchise rental revenues | 14.6 | % | 14.8 | % | |
Franchise royalties and other | 10.1 | % | 10.2 | % | |
Total revenues | 100.0 | % | 100.0 | % | |
Operating costs and expenses, net: | |||||
Company restaurant costs: | |||||
Food and packaging (1) | 29.7 | % | 30.8 | % | |
Payroll and employee benefits (1) | 29.1 | % | 27.7 | % | |
Occupancy and other (1) | 22.6 | % | 22.0 | % | |
Total company restaurant costs (1) | 81.4 | % | 80.5 | % | |
Franchise occupancy expenses (2) | 72.0 | % | 74.9 | % | |
Franchise support and other costs (3) | 7.8 | % | 10.2 | % | |
Selling, general and administrative expenses | 11.4 | % | 14.0 | % | |
Impairment and other charges, net | 1.0 | % | 0.4 | % | |
Gains on the sale of company-operated restaurants | — | % | (0.2 | )% | |
Earnings from operations | 15.0 | % | 13.3 | % | |
Income tax rate (4) | 38.7 | % | 37.6 | % |
(1) | As a percentage of company restaurant sales. |
(2) | As a percentage of franchise rental revenues. |
(3) | As a percentage of franchise royalties and other. |
(4) | As a percentage of earnings from continuing operations and before income taxes. |
Sixteen Weeks Ended | |||||
Calendar Basis | Fiscal Basis | ||||
January 22, 2017 | January 22, 2017 | January 17, 2016 | |||
Jack in the Box: | |||||
Company | 0.6% | —% | 0.5% | ||
Franchise | 3.9% | 3.3% | 1.8% | ||
System | 3.1% | 2.5% | 1.4% | ||
Qdoba: | |||||
Company | (1.4)% | (2.3)% | 1.5% | ||
Franchise | (0.5)% | (1.3)% | 2.1% | ||
System | (1.0)% | (1.8)% | 1.8% |
Sixteen Weeks Ended | |||||
Calendar Basis | Fiscal Basis | ||||
January 22, 2017 | January 22, 2017 | January 17, 2016 | |||
Jack in the Box: | |||||
Average check (1) | 4.9% | 4.7% | 3.4% | ||
Transactions | (4.3)% | (4.7)% | (2.9)% | ||
Change in fiscal-basis same-store sales | 0.6% | —% | 0.5% | ||
Qdoba: | |||||
Transactions | (2.5)% | (3.6)% | 1.3% | ||
Average Check (2) | 0.7% | 1.0% | (0.8)% | ||
Catering | 0.4% | 0.3% | 1.0% | ||
Change in fiscal-basis same-store sales | (1.4)% | (2.3)% | 1.5% |
(1) | Amount in 2017 on a calendar basis includes price increases of 2.9%. Amounts in 2017 and 2016 on a fiscal basis include price increases of approximately 2.9% and 2.8%, respectively. |
(2) | Amount in 2017 on a calendar basis includes price increases of 0.6%. Amounts in 2017 and 2016 on a fiscal basis include price increases of approximately 0.6% and 0.7%, respectively. |
January 22, 2017 | January 17, 2016 | ||||||||||||||||
Company | Franchise | Total | Company | Franchise | Total | ||||||||||||
Jack in the Box: | |||||||||||||||||
Beginning of year | 417 | 1,838 | 2,255 | 413 | 1,836 | 2,249 | |||||||||||
New | 2 | 7 | 9 | — | 5 | 5 | |||||||||||
Refranchised | — | — | — | (1 | ) | 1 | — | ||||||||||
Acquired from franchisees | — | — | — | 1 | (1 | ) | — | ||||||||||
Closed | — | (3 | ) | (3 | ) | — | (1 | ) | (1 | ) | |||||||
End of period | 419 | 1,842 | 2,261 | 413 | 1,840 | 2,253 | |||||||||||
% of JIB system | 19 | % | 81 | % | 100 | % | 18 | % | 82 | % | 100 | % | |||||
Qdoba: | |||||||||||||||||
Beginning of year | 367 | 332 | 699 | 322 | 339 | 661 | |||||||||||
New | 9 | 8 | 17 | 9 | 6 | 15 | |||||||||||
Closed | — | (4 | ) | (4 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||
End of period | 376 | 336 | 712 | 330 | 344 | 674 | |||||||||||
% of Qdoba system | 53 | % | 47 | % | 100 | % | 49 | % | 51 | % | 100 | % | |||||
Consolidated: | |||||||||||||||||
Total system end of period | 795 | 2,178 | 2,973 | 743 | 2,184 | 2,927 | |||||||||||
% of consolidated system | 27 | % | 73 | % | 100 | % | 25 | % | 75 | % | 100 | % |
Sixteen Weeks Ended | |||||||||||||
January 22, 2017 | January 17, 2016 | ||||||||||||
Company restaurant sales | $ | 238,571 | $ | 236,279 | |||||||||
Company restaurant costs: | |||||||||||||
Food and packaging | 67,989 | 28.5 | % | 73,133 | 31.0 | % | |||||||
Payroll and employee benefits | 70,183 | 29.4 | % | 65,689 | 27.8 | % | |||||||
Occupancy and other | 48,850 | 20.5 | % | 48,171 | 20.4 | % | |||||||
Total company restaurant costs | 187,022 | 78.4 | % | 186,993 | 79.1 | % | |||||||
Restaurant margin | $ | 51,549 | 21.6 | % | $ | 49,286 | 20.9 | % |
Increase in the average number of restaurants | $ | 3,400 | |
AUV decrease | (1,100 | ) | |
Total change in company restaurant sales | $ | 2,300 |
Sixteen Weeks Ended | |||||
January 22, 2017 | January 17, 2016 | ||||
Average check (1) | 4.7 | % | 3.4 | % | |
Transactions | (4.7 | )% | (2.9 | )% | |
Change in fiscal-basis same-store sales | — | % | 0.5 | % |
(1) | Amounts in 2017 and 2016 include price increases of approximately 2.9% and 2.8%, respectively. |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Franchise rental revenues | $ | 71,436 | $ | 69,700 | |||
Royalties | 42,588 | 40,870 | |||||
Franchise fees and other | 586 | 734 | |||||
Franchise royalties and other | 43,174 | 41,604 | |||||
Total franchise revenues | 114,610 | 111,304 | |||||
Rental expense | 42,190 | 42,144 | |||||
Depreciation and amortization | 9,226 | 10,047 | |||||
Franchise occupancy expenses | 51,416 | 52,191 | |||||
Franchise support and other costs | 2,537 | 3,338 | |||||
Total franchise costs | 53,953 | 55,529 | |||||
Franchise margin | $ | 60,657 | $ | 55,775 | |||
Franchise margin as a % of franchise revenues | 52.9 | % | 50.1 | % | |||
Average number of franchise restaurants | 1,839 | 1,838 | |||||
% increase | 0.1 | % | 0.9 | % | |||
Increase in franchise-operated fiscal basis same-store sales | 3.3 | % | 1.8 | % | |||
Franchise restaurant AUVs | $ | 453 | $ | 438 | |||
Royalties as a percentage of franchise restaurant sales | 5.1 | % | 5.1 | % |
Sixteen Weeks Ended | |||||||||||||
January 22, 2017 | January 17, 2016 | ||||||||||||
Company restaurant sales | $ | 128,699 | $ | 116,942 | |||||||||
Company restaurant costs: | |||||||||||||
Food and packaging | 40,947 | 31.8 | % | 35,778 | 30.6 | % | |||||||
Payroll and employee benefits | 36,738 | 28.5 | % | 32,218 | 27.6 | % | |||||||
Occupancy and other | 34,194 | 26.6 | % | 29,528 | 25.3 | % | |||||||
Total company restaurant costs | 111,879 | 86.9 | % | 97,524 | 83.4 | % | |||||||
Restaurant margin | $ | 16,820 | 13.1 | % | $ | 19,418 | 16.6 | % |
Increase in the average number of company restaurants | $ | 15,800 | |
AUV decrease | (4,000 | ) | |
Total change in company restaurant sales | $ | 11,800 |
Sixteen Weeks Ended | |||||
January 22, 2017 | January 17, 2016 | ||||
Transactions | (3.6 | )% | 1.3 | % | |
Average check (1) | 1.0 | % | (0.8 | )% | |
Catering | 0.3 | % | 1.0 | % | |
Change in fiscal basis same-store sales | (2.3 | )% | 1.5 | % |
(1) | Amounts in 2017 and 2016 include price increases of approximately 0.6% and 0.7%, respectively. |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Franchise rental revenues | $ | 33 | $ | 38 | |||
Royalties | 5,431 | 5,792 | |||||
Franchise fees and other | 589 | 468 | |||||
Franchise royalties and other | 6,020 | 6,260 | |||||
Total franchise revenues | 6,053 | 6,298 | |||||
Rental expense (1) | 33 | 28 | |||||
Franchise support and other costs | 1,301 | 1,524 | |||||
Total franchise costs | 1,334 | 1,552 | |||||
Franchise margin | $ | 4,719 | $ | 4,746 | |||
Franchise margin as a % of franchise revenues | 78.0 | % | 75.4 | % | |||
Average number of franchise restaurants | 333 | 342 | |||||
% (decrease) increase | (2.6 | )% | 3.3 | % | |||
(Decrease) increase in franchise-operated fiscal basis same-store sales | (1.3 | )% | 2.1 | % | |||
Franchise restaurant AUVs | $ | 337 | $ | 344 | |||
Royalties as a percentage of franchise restaurant sales | 4.8 | % | 4.9 | % |
(1) | Included in franchise occupancy expenses in the accompanying condensed consolidated statements of earnings. |
(Decrease) / Increase | |||
2017 vs. 2016 | |||
Pension and postretirement benefits | $ | (2,852 | ) |
Incentive compensation (including share-based compensation and related payroll taxes) | (1,728 | ) | |
Consulting | (1,245 | ) | |
Qdoba brand conference | (833 | ) | |
Pre-opening costs | (613 | ) | |
Advertising | (408 | ) | |
Other | (2,485 | ) | |
$ | (10,164 | ) |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Restructuring costs | $ | 2,048 | $ | — | |||
Costs of closed restaurants (primarily lease obligations) and other | 1,997 | 560 | |||||
Losses on disposition of property and equipment, net | 699 | 651 | |||||
Accelerated depreciation | 313 | 446 | |||||
$ | 5,057 | $ | 1,657 |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Number of restaurants sold to Jack in the Box franchisees | — | 1 | |||||
Gains on the sale of company-operated restaurants | $ | 137 | $ | 818 |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Interest expense | $ | 12,748 | $ | 8,231 | |||
Interest income | (31 | ) | (56 | ) | |||
Interest expense, net | $ | 12,717 | $ | 8,175 |
• | working capital; |
• | capital expenditures for new restaurant construction and restaurant renovations; |
• | income tax payments; |
• | debt service requirements; and |
• | obligations related to our benefit plans. |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Total cash provided by (used in): | |||||||
Operating activities | $ | 70,955 | $ | 44,909 | |||
Investing activities | (19,682 | ) | (27,256 | ) | |||
Financing activities | (62,213 | ) | (28,264 | ) | |||
Effect of exchange rate changes on cash | — | (32 | ) | ||||
Net decrease in cash | $ | (10,940 | ) | $ | (10,643 | ) |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Jack in the Box: | |||||||
Restaurant facility expenditures | $ | 5,128 | $ | 10,113 | |||
New restaurants | 2,000 | 3,059 | |||||
Other, including information technology | 417 | 706 | |||||
7,545 | 13,878 | ||||||
Qdoba: | |||||||
New restaurants | 8,036 | 14,394 | |||||
Restaurant facility expenditures | 3,493 | 1,127 | |||||
Other, including information technology | 748 | 757 | |||||
12,277 | 16,278 | ||||||
Shared Services: | |||||||
Information technology | 1,037 | 1,239 | |||||
Other, including facility improvements | 6 | 148 | |||||
1,043 | 1,387 | ||||||
Consolidated capital expenditures | $ | 20,865 | $ | 31,543 |
Sixteen Weeks Ended | ||||||||
January 22, 2017 | January 17, 2016 | |||||||
Number of restaurants sold and leased back | 1 | 3 | ||||||
Proceeds from sale and leaseback transactions | $ | 2,466 | $ | 5,803 | ||||
Purchases of assets intended for sale and leaseback | $ | (1,770 | ) | $ | (3,274 | ) |
Sixteen Weeks Ended | |||||||
January 22, 2017 | January 17, 2016 | ||||||
Number of restaurants sold to Jack in the Box franchisees | — | 1 | |||||
Total proceeds | $ | 138 | $ | 1,021 |
• | Food service businesses such as ours may be materially and adversely affected by changes in consumer preferences or dining habits, and economic, political and socioeconomic conditions. Adverse economic conditions such as unemployment and decreased discretionary spending may result in reduced restaurant traffic and sales, and impose practical limits on pricing. We are also subject to geographic concentration risks, with nearly 70% of system Jack in the Box restaurants located in California and Texas. |
• | Our profitability depends in part on food and commodity costs and availability, including animal feed costs, fuel costs, and other supply and distribution costs. The risks of increased commodities costs and volatility in costs could adversely affect our profitability and results of operations. |
• | The success of our business strategy depends on the value and relevance of our brands. Multi-unit food service businesses such as ours can be materially and adversely affected by widespread negative publicity of any type, particularly regarding food quality, food safety or public health issues. Negative publicity regarding our brands or the restaurant industry in general could cause a decline in system restaurant sales and could have a material adverse effect on our financial condition and results of operations. |
• | We are reliant on third party suppliers and distributors, and any shortages or interruptions in supply could adversely affect the availability, quality and cost of ingredients. |
• | Our business can be materially and adversely affected by severe weather conditions or natural disasters, which can result in lost restaurant sales, supply chain interruptions and increased costs. |
• | Growth and new restaurant development involve substantial risks, including risks associated with unavailability of suitable franchisees, limited financing availability, cost overruns and the inability to secure suitable sites on acceptable terms. In addition, our growth strategy includes opening restaurants in new or existing markets where we cannot assure that we will be able to successfully expand or acquire critical market presence, attract customers or otherwise operate profitably. |
• | There are risks associated with our franchise business model, including the demand for our franchises, the selection of appropriate franchisees and whether our franchisees and new restaurant developers will have the capabilities to be effective operators and remain aligned with us on operating, promotional and capital-intensive initiatives, in an ever-changing competitive environment. Additionally, our franchisees and operators could experience operational, financial or other challenges that could affect payments to us of rents and/or royalties, or could damage our brands and reputation. |
• | Our plan to increase the percentage of Jack in the Box franchise restaurants to over 90% is subject to risks and uncertainties, and we may not achieve the level or the accompanying cost reductions that we desire. We may not be able to identify franchisee candidates with appropriate experience and financial resources or to negotiate mutually acceptable agreements with potential franchisees. Our franchisee candidates may not be able to obtain financing at acceptable rates and terms. We may not be able to increase the percentage of franchised restaurants at the rate we desire or achieve the ownership mix of franchise to company-operated restaurants that we desire. |
• | The restaurant and take-away food industry is highly competitive with respect to price, service, location, brand identification, menu quality and product and service innovation. We cannot assure that we will be able to effectively respond to aggressive competitors (including competitors with significantly greater financial resources); or that our |
• | Should our advertising and promotions be less effective than our competitors, there could be a material adverse effect on our results of operations and financial condition. |
• | In recent years, we have identified strategies and taken steps to reduce operating costs to align with the increased Jack in the Box franchise ownership and to further integrate Jack in the Box and Qdoba brand systems. The ability to evaluate, identify and implement operating cost reductions through these initiatives is subject to risks and uncertainties, and we cannot assure that these activities, or any other activities that we may undertake in the future, will achieve the desired cost savings and efficiencies. |
• | The loss of key personnel could have a material adverse effect on our business. |
• | The costs of compliance with government regulations, including those resulting in increased labor costs, could negatively affect our results of operations and financial condition. |
• | A material failure or interruption of service or a breach in security of our information technology systems, point of sale (“POS”) systems, or databases could cause reduced efficiency in operations, loss or misappropriation of data or, loss of consumer confidence and/or potential costs, fines and litigation, including costs associated with reputation damage, consumer fraud, privacy breach, or business interruptions, which in turn could affect cash flows or our operating results. In addition, the costs of information security, regulatory compliance, investment in technology and risk mitigation measures may negatively affect our margins or financial results. |
• | We maintain a documented system of internal controls over financial reporting, which is reviewed and monitored by an Internal Controls Committee and tested by the Company’s full-time internal audit department. Any failures in the effectiveness of our internal controls could have a material adverse effect on our operating results or cause us to fail to meet our reporting obligations. |
• | We are subject to risks of owning, operating and leasing property, including but not limited to environmental risks. Any of this could result in the imposition of severe penalties or restrictions on operations by governmental agencies or courts of law, which could adversely affect operations. |
• | We have a significant amount of indebtedness, which could adversely affect our business and our ability to meet our obligations. Our ability to repay borrowings under our credit facility and to meet our other debt or contractual obligations will depend upon our future performance and our cash flows from operations, both of which are subject to prevailing economic conditions and financial, business and other known and unknown risks and uncertainties, certain of which are beyond our control. |
• | Changes in accounting standards, policies or related interpretations by accountants or regulatory entities may negatively impact our results. |
• | We are subject to litigation which is inherently unpredictable and can result in unfavorable resolutions where the amount of ultimate loss may exceed our estimated loss contingencies, impose other costs related to defense of claims, or occupy management’s time. |
(a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced programs | (d) Maximum dollar value that may yet be purchased under these programs | |||||||||||
$ | 408,172,440 | |||||||||||||
October 3, 2016 - October 30, 2016 | 85,412 | $ | 95.38 | 85,412 | $ | 400,025,975 | ||||||||
October 31, 2016 - November 27, 2016 | — | $ | — | — | $ | 400,025,975 | ||||||||
November 28, 2016 - December 25, 2016 | 849,928 | $ | 110.24 | 849,928 | $ | 306,328,521 | ||||||||
December 26, 2016 - January 22, 2017 | 56,475 | $ | 111.58 | 56,475 | $ | 300,026,982 | ||||||||
Total | 991,815 | $ | 109.04 | 991,815 |
Number | Description | Form | Filed with SEC |
3.1 | Restated Certificate of Incorporation, as amended, dated September 21, 2007 | 10-K | 11/20/2009 |
3.1.1 | Certificate of Amendment of Restated Certificate of Incorporation, dated September 21, 2007 | 8-K | 9/24/2007 |
3.2 | Amended and Restated Bylaws, dated August 7, 2013 | 10-Q | 8/8/2013 |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | Filed herewith |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | Filed herewith |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | Filed herewith |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | Filed herewith |
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
JACK IN THE BOX INC. | ||
By: | /S/ JERRY P. REBEL | |
Jerry P. Rebel | ||
Executive Vice President and Chief Financial Officer (principal financial officer) (Duly Authorized Signatory) |
1. | I have reviewed this quarterly report on Form 10-Q of Jack in the Box Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | February 23, 2017 | /S/ LEONARD A. COMMA |
Leonard A. Comma | ||
Chief Executive Officer & Chairman of the Board |
1. | I have reviewed this quarterly report on Form 10-Q of Jack in the Box Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | February 23, 2017 | /S/ JERRY P. REBEL |
Jerry P. Rebel | ||
Chief Financial Officer |
(1) | the quarterly report on Form 10-Q of the Registrant, to which this certification is attached as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: | February 23, 2017 | /S/ LEONARD A. COMMA |
Leonard A. Comma | ||
Chief Executive Officer |
(1) | the quarterly report on Form 10-Q of the Registrant, to which this certification is attached as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | February 23, 2017 | /S/ JERRY P. REBEL |
Jerry P. Rebel | ||
Chief Financial Officer |
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Document And Entity Information - shares |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Feb. 17, 2017 |
|
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 31,641,734 | |
Entity Registrant Name | JACK IN THE BOX INC /NEW/ | |
Entity Central Index Key | 0000807882 | |
Current Fiscal Year End Date | --10-01 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 22, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jan. 22, 2017 |
Oct. 02, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 81,824,541 | 81,598,524 |
Treasury stock at cost, shares | 50,182,807 | 49,190,992 |
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Net earnings | $ 35,929 | $ 33,221 |
Net change in fair value of derivatives | 23,086 | (11,437) |
Net loss reclassified to earnings | 2,066 | 1,444 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 25,152 | (9,993) |
Tax effect | (9,731) | 3,868 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 15,421 | (6,125) |
Actuarial losses and prior service costs reclassified to earnings | 1,978 | 1,398 |
Tax effect | (766) | (541) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 1,212 | 857 |
Foreign currency translation adjustments | 0 | (52) |
Tax effect | 0 | 20 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | (32) |
Other comprehensive income (loss), net of tax | 16,633 | (5,300) |
Comprehensive income | 52,562 | 27,921 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Net change in fair value of derivatives | 23,086 | (11,437) |
Interest Expense [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Net loss reclassified to earnings | $ 2,066 | $ 1,444 |
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Cash flows from operating activities: | ||
Net earnings | $ 35,929 | $ 33,221 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 27,987 | 28,514 |
Deferred finance cost amortization | 1,123 | 823 |
Excess tax benefits from share-based compensation arrangements | (3,981) | (2,020) |
Deferred income taxes | 2,239 | (2,128) |
Share-based compensation expense | 3,814 | 4,088 |
Pension and postretirement expense | 1,297 | 4,149 |
Losses on cash surrender value of company-owned life insurance | 326 | 2,466 |
Gains on the sale of company-operated restaurants | (137) | (818) |
Losses on the disposition of property and equipment | 699 | 651 |
Impairment charges and other | 1,871 | 446 |
Changes in assets and liabilities: | ||
Accounts and other receivables | 19,378 | (4,204) |
Inventories | (115) | (495) |
Prepaid expenses and other current assets | 31,506 | 1,205 |
Accounts payable | (5,487) | 7,386 |
Accrued liabilities | (43,328) | (25,403) |
Pension and postretirement contributions | (1,440) | (1,883) |
Other Operating Activities, Cash Flow Statement | (726) | (1,089) |
Cash flows provided by operating activities | 70,955 | 44,909 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20,865) | (31,543) |
Purchases of assets intended for sale and leaseback | (1,770) | (3,274) |
Proceeds from the sale and leaseback of assets | 2,466 | 5,803 |
Proceeds from the sale of company-operated restaurants | 138 | 1,021 |
Collections on notes receivable | 298 | 441 |
Cash Acquired from Acquisition | 0 | 324 |
Other | 51 | (28) |
Cash flows used in investing activities | (19,682) | (27,256) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 231,000 | 176,000 |
Repayments of borrowings on revolving credit facilities | (167,000) | (97,000) |
Principal repayments on debt | (14,438) | (8,479) |
Dividends paid on common stock | (12,962) | (10,592) |
Proceeds from issuance of common stock | 4,756 | 492 |
Repurchases of common stock | (115,354) | (100,000) |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 3,981 | 2,020 |
Change in book overdraft | 7,804 | 9,295 |
Cash flows used in financing activities | (62,213) | (28,264) |
Effect of exchange rate changes on cash | 0 | (32) |
Cash, Period Increase (Decrease) | (10,940) | (10,643) |
Cash | $ 6,090 | $ 7,100 |
Basis Of Presentation |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis Of Presentation | BASIS OF PRESENTATION Nature of operations — Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® quick-service restaurants and Qdoba Mexican Eats® (“Qdoba”) fast-casual restaurants. The following table summarizes the number of restaurants as of the end of each period:
References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.” Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business. In fiscal 2013, we closed 62 Qdoba restaurants (the “2013 Qdoba Closures”) as part of a comprehensive Qdoba market performance review. The results of operations for our distribution business and for the 2013 Qdoba Closures are reported as discontinued operations for all periods presented. Refer to Note 2, Discontinued Operations, for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to condensed consolidated financial statements relate to our continuing operations. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended October 2, 2016 (“2016 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2016 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2017 which are described below. Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated balance sheets have been reclassified due to the adoption of a new accounting pronouncement. See discussion below. Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal year 2017 includes 52 weeks, while fiscal year 2016 includes 53 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks, with the exception of the fourth quarter of fiscal 2016, which includes 13 weeks. All comparisons between 2017 and 2016 refer to the 16 weeks (“quarter”) ended January 22, 2017 and January 17, 2016, respectively, unless otherwise indicated. Principles of consolidation — The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of any variable interest entities (“VIEs”) where we are deemed the primary beneficiary. All significant intercompany accounts and transactions are eliminated. The financial results and position of our VIE are immaterial to our condensed consolidated financial statements. Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. Effect of new accounting pronouncements adopted in fiscal 2017 — In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. We adopted this standard in the first quarter of 2017 and the prior period was retrospectively adjusted. The adjustment resulted in a reclassification of $3.8 million in debt issuance costs from other assets, net to current maturities of long-term debt and long-term debt, net of current maturities in the amount of $1.6 million and $2.2 million, respectively, in our October 2, 2016 condensed consolidated balance sheet. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which addresses line-of-credit arrangements that were omitted from ASU No. 2015-03. This ASU states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. We adopted this standard in the first quarter of 2017 and there was no impact on our consolidated financial statements as we continue to present debt issuance costs associated with our line-of-credit arrangement as an asset on our condensed consolidated balance sheets. Effect of new accounting pronouncements to be adopted in future periods — In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires an entity to recognize revenue in an amount that reflects the consideration the entity expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance in ASU No. 2014-09 when evaluating when another party, along with the entity, is involved in providing a good or service to a customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies the guidance in ASU No. 2014-09 regarding assessing whether promises to transfer goods or services are distinct, and whether an entity's promise to grant a license provides a customer with a right to use, or right to access the entity's intellectual property. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606). This ASU clarifies the guidance in ASU 2014-09, providing technical corrections and improvements to clarify guidance and correct unintended applications of the guidance. All standards are effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. As such, we will be required to adopt these standards in the first quarter of fiscal 2019. These standards are to be applied retrospectively or using a cumulative effect transition method, and early adoption is not permitted. We do not believe the new revenue recognition standard will impact our recognition of restaurant sales, rental revenues or royalty fees from franchisees. However, we are still evaluating the impact that this pronouncement will have on the recognition of certain transactions on our consolidated financial statements, including the initial franchise fees currently recognized upon the opening of a franchise restaurant and our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, and the effect it will have on our disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize assets and liabilities on the balance sheet for those leases classified as operating leases under previous guidance. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, we will be required to adopt this standard in the first quarter of fiscal 2020. This standard requires adoption based upon a modified retrospective transition approach, with early adoption permitted. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated balance sheets. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is to be applied retrospectively or using a cumulative effect transition method as of the date of adoption. We are currently evaluating which transition method to use, but believe the impact this standard will have on our consolidated financial statements and related disclosures will be immaterial upon adoption. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard is intended to simplify various aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. As such, we will be required to adopt this standard in fiscal 2018 and will classify the excess tax benefits from share-based compensation arrangements, which were $4.0 million in the first quarter of 2017, as a discrete item within income tax expense on the consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the consolidated statements of stockholders’ deficit. This reclassification will be made on a prospective basis and will also impact the related classification on our consolidated statements of cash flows as excess tax benefits from share-based compensation arrangements are currently reported in cash flows from operating activities and cash flows used in investing activities. Other than these reclassifications, we do not believe the adoption of this ASU will materially impact our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows ( Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard is intended to address eight classification issues related to the statement of cash flows to reduce diversity in practice in how certain transactions are classified. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard requires adoption based upon a retrospective transition method. We are currently evaluating this standard, but do not believe it will have a material impact on the classification of cash flows within our statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (740): Intra-Entity Transfers of Assets Other Than Inventory. This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than deferring the recognition until the asset has been sold to an outside party. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. The standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. We are currently evaluating this standard, but do not believe it will have a material impact on our consolidated financial statements. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements. This standard contains amendments that affect a wide variety of topics in the Accounting Standards Codification. The amendments include differences between original FASB guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2018. This standard is not expected have a significant effect on our accounting policies or on our consolidated financial statements and related disclosures. |
Discontinued Operations |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
Distribution business — During fiscal 2012, we entered into an agreement with a third party distribution service provider pursuant to a plan approved by our Board of Directors to sell our Jack in the Box distribution business. During fiscal 2013, we completed the transition of our distribution centers. The operations and cash flows of the business have been eliminated and in accordance with the provisions of the FASB authoritative guidance on the presentation of financial statements, the results are reported as discontinued operations for all periods presented. In 2017 and 2016, results of discontinued operations were immaterial to our condensed consolidated results of operations. Our liability for lease commitments related to our distribution centers is immaterial to our consolidated balance sheets as of January 22, 2017 and October 2, 2016. The lease commitment balance relates to one distribution center lease that expires in fiscal 2017 and is currently subleased at a loss. 2013 Qdoba Closures — During fiscal 2013, we closed 62 Qdoba restaurants. The decision to close these restaurants was based on a comprehensive analysis that took into consideration levels of return on investment and other key operating performance metrics. Since the closed locations were not predominantly located near those remaining in operation, we did not expect the majority of cash flows and sales lost from these closures to be recovered. In addition, we did not anticipate any ongoing involvement or significant direct cash flows from the closed stores. Therefore, in accordance with the provisions of the FASB authoritative guidance on the presentation of financial statements, the results of operations for these restaurants are reported as discontinued operations for all periods presented. The following table summarizes the results related to the 2013 Qdoba Closures for each period (in thousands):
We do not expect the remaining costs to be incurred related to these closures to be material; however, our estimates related to our future lease obligations, primarily sublease income, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors. Our liability for lease commitments related to the 2013 Qdoba Closures is included in accrued liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets and has changed as follows in 2017 (in thousands):
____________________________
|
Summary Of Refranchisings, Franchisee Development And Acquisitions |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions | SUMMARY OF REFRANCHISINGS, FRANCHISEE DEVELOPMENT AND ACQUISITIONS Refranchisings and franchisee development — The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period(dollars in thousands):
____________________________
Franchise acquisitions —There was no acquisition activity in 2017. In 2016, we acquired one Jack in the Box franchise restaurant. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The 2016 purchase price allocation was based on fair value estimates determined using significant unobservable inputs (Level 3). The 2016 acquisition was not material to our condensed consolidated financial statements. |
Fair Value Measurements |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):
____________________________
The fair values of our debt instruments are based on the amount of future cash flows associated with each instrument discounted using our borrowing rate. At January 22, 2017, the carrying value of all financial instruments was not materially different from fair value, as the borrowings are prepayable without penalty. The estimated fair values of our capital lease obligations approximated their carrying values as of January 22, 2017. Non-financial assets and liabilities — Our non-financial instruments, which primarily consist of property and equipment, goodwill and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value. In connection with our impairment reviews performed during 2017, no material fair value adjustments were required. Refer to Note 6, Impairment and Other Charges, Net, for additional information regarding impairment charges. |
Derivative Instruments |
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments |
Objectives and strategies — We are exposed to interest rate volatility with regard to our variable rate debt. In April 2014, to reduce our exposure to rising interest rates, we entered into nine forward-starting interest rate swap agreements that effectively converted $300.0 million of our variable rate borrowings to a fixed-rate basis from October 2014 through October 2018. Additionally, in June 2015, we entered into eleven forward-starting interest rate swap agreements that effectively converted an additional $200.0 million of our variable rate borrowings to a fixed rate from October 2015 through October 2018, and $500.0 million from October 2018 through October 2022. These agreements have been designated as cash flow hedges under the terms of the FASB authoritative guidance for derivatives and hedging. To the extent that they are effective in offsetting the variability of the hedged cash flows, changes in the fair values of the derivatives are not included in earnings, but are included in other comprehensive income (“OCI”). These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on our variable rate debt. Financial position — The following derivative instruments were outstanding as of the end of each period (in thousands):
Financial performance — The following table summarizes the OCI activity related to our interest rate swap derivative instruments (in thousands):
Amounts reclassified from accumulated OCI into interest expense represent payments made to the counterparties for the effective portions of the interest rate swaps. During the periods presented, our interest rate swaps had no hedge ineffectiveness. |
Impairment and other charges, net |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impairment and Other Charges Net [Text Block] |
Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):
Restructuring costs — Restructuring charges in 2017 are the result of a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions, relocation and consolidation of our Qdoba corporate support center, refranchising initiatives, and the consolidation of information technology across both brands. The following is a summary of our restructuring costs (in thousands):
Approximately $0.1 million and $1.8 million of the 2017 restructuring costs are related to our Jack in the Box and Qdoba restaurant operating segments, respectively, and approximately $0.1 million is related to shared services functions, such as accounting/finance, information technology, human resources, audit services, legal, tax and treasury. At this time, we are unable to estimate additional charges to be incurred subsequent to 2017, but they are not expected to be material. Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2017 (in thousands):
Restaurant closing costs — Costs of closed restaurants primarily consist of future lease commitments and expected ancillary costs, net of anticipated sublease rentals. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows during 2017 (in thousands):
Accelerated depreciation — When a long-lived asset will be replaced or otherwise disposed of prior to the end of its estimated useful life, the useful life of the asset is adjusted based on the estimated disposal date and accelerated depreciation is recognized. In 2017, accelerated depreciation primarily relates to the anticipated closure of two Jack in the Box and three Qdoba company-operated restaurants. In 2016, accelerated depreciation was primarily related to expenses at Jack in the Box company-operated restaurants for exterior facility enhancements and the replacement of technology equipment. |
Income Taxes |
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Jan. 22, 2017 | |||||
Income Tax Disclosure [Abstract] | |||||
Income Taxes |
The income tax provisions reflect tax rates of 38.7% in 2017 and 37.6% in 2016. The major components of the year-over-year change in tax rates were a decrease in tax credits partially offset by a decrease in losses from the market performance of insurance products used to fund certain non-qualified retirement plans which are excluded from taxable income. The Company recognized a benefit from the retroactive reenactment of the Work Opportunity Tax Credit for calendar year 2015 during the first quarter of 2016. This credit was extended continuously through December 31, 2019. Therefore, a similar retroactive reenactment was not applicable during the first quarter of 2017. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual 2017 rate could differ from our current estimates. |
Retirement Plans |
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Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans |
Defined benefit pension plans — We sponsor two defined benefit pension plans, a “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. In fiscal 2011, the Board of Directors approved the sunset of our Qualified Plan whereby participants no longer accrue benefits effective December 31, 2015. Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment. Postretirement healthcare plans — We also sponsor two healthcare plans, closed to new participants, that provide postretirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory; with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. Net periodic benefit cost — The components of net periodic benefit cost in each period were as follows (in thousands):
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Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of January 1, 2016, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2017 contributions are as follows (in thousands):
We continue to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and the economic environment. We do not anticipate making any contributions to our Qualified Plan in fiscal 2017. |
Share-Based Compensation |
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION We offer share-based compensation plans to attract, retain and motivate key officers, employees and non-employee directors to work towards the financial success of the Company. During 2017, we granted the following shares related to our share-based compensation awards:
The components of share-based compensation expense recognized in each period are as follows (in thousands):
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||
Stockholders' Equity |
Repurchases of common stock — In fiscal 2017, we repurchased 992,000 common shares at an aggregate cost of $108.1 million. As of January 22, 2017, there was approximately $27,000 remaining under a stock-buyback program which expires in November 2017, and $300.0 million remaining under a stock-buyback program which expires in November 2018. In our condensed consolidated statement of cash flows for the 16 weeks ended January 22, 2017, repurchases of common stock includes $7.2 million related to repurchase transactions traded in the prior fiscal year that settled in the current fiscal year. Dividends — In fiscal 2017, the Board of Directors declared a cash dividend of $0.40 per common share which was paid on December 16, 2016 to shareholders of record as of the close of business on December 5, 2016, and totaled $13.0 million. Future dividends are subject to approval by our Board of Directors. |
Average Shares Outstanding |
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Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Shares Outstanding | AVERAGE SHARES OUTSTANDING Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options, nonvested stock awards and units, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods. The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):
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Contingencies and Legal Matters |
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Legal Matters and Contingencies [Abstract] | |
Legal Matters and Contingencies [Text Block] | CONTINGENCIES AND LEGAL MATTERS Legal matters — We assess contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our 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, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. We regularly review contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Gessele v. Jack in the Box Inc. — In August 2010, five former employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that the Company failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In December 2016, the court dismissed the federal claims and those relating to franchise employees. In fiscal 2012, we accrued for a single claim for which we believe a loss is both probable and estimable; this accrued loss contingency did not have a material effect on our results of operations. We have not established a loss contingency accrual for those claims as to which we believe liability is not probable or estimable, and we plan to vigorously defend against this lawsuit. Nonetheless, an unfavorable resolution of this matter in excess of our current accrued loss contingencies could have a material adverse effect on our business, results of operations, liquidity or financial condition. Other legal matters — In addition to the matter described above, we are subject to normal and routine litigation brought by former, current or prospective employees, customers, franchisees, vendors, landlords, shareholders or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance. Our insurance liability (undiscounted) and reserves are established in part by using independent actuarial estimates of expected losses for reported claims and for estimating claims incurred but not reported. We believe that the ultimate determination of liability in connection with legal claims pending against us, if any, in excess of amounts already provided for such matters in the condensed consolidated financial statements, will not have a material adverse effect on our business, our annual results of operations, liquidity or financial position; however, it is possible that our business, results of operations, liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or contingencies during such period. |
Segment Reporting |
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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):
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):
Refer to Note 3, Summary of Refranchisings, Franchisee Development and Acquisitions, for information regarding the transactions resulting in the changes in goodwill. |
Supplemental Consolidated Cash Flow Information |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidated Cash Flow Information | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands)
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Supplemental Consolidated Balance Sheet Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidated Balance Sheet Information | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands)
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Subsequent Events |
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Jan. 22, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On February 21, 2017, the Board of Directors declared a cash dividend of $0.40 per common share, to be paid on March 20, 2017 to shareholders of record as of the close of business on March 7, 2017. Subsequent to the end of the first quarter, we signed non-binding letters of intent with franchisees to sell approximately 75 company restaurants in several different markets. Pre-tax gross proceeds related to these sales are estimated at $40.0 million to $45.0 million. |
Basis Of Presentation (Policy) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Nature of operations — Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® quick-service restaurants and Qdoba Mexican Eats® (“Qdoba”) fast-casual restaurants. |
Basis of presentation | Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business. In fiscal 2013, we closed 62 Qdoba restaurants (the “2013 Qdoba Closures”) as part of a comprehensive Qdoba market performance review. The results of operations for our distribution business and for the 2013 Qdoba Closures are reported as discontinued operations for all periods presented. Refer to Note 2, Discontinued Operations, for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to condensed consolidated financial statements relate to our continuing operations. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended October 2, 2016 (“2016 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2016 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2017 which are described below. |
Reclassification, Policy [Policy Text Block] | Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated balance sheets have been reclassified due to the adoption of a new accounting pronouncement. |
Fiscal year | Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal year 2017 includes 52 weeks, while fiscal year 2016 includes 53 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks, with the exception of the fourth quarter of fiscal 2016, which includes 13 weeks. All comparisons between 2017 and 2016 refer to the 16 weeks (“quarter”) ended January 22, 2017 and January 17, 2016, respectively, unless otherwise indicated. |
Principles of consolidation | Principles of consolidation — The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of any variable interest entities (“VIEs”) where we are deemed the primary beneficiary. All significant intercompany accounts and transactions are eliminated. The financial results and position of our VIE are immaterial to our condensed consolidated financial statements. |
Use of estimates | Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. |
New Accounting Pronouncement, Early Adoption [Table Text Block] | Effect of new accounting pronouncements adopted in fiscal 2017 — In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. We adopted this standard in the first quarter of 2017 and the prior period was retrospectively adjusted. The adjustment resulted in a reclassification of $3.8 million in debt issuance costs from other assets, net to current maturities of long-term debt and long-term debt, net of current maturities in the amount of $1.6 million and $2.2 million, respectively, in our October 2, 2016 condensed consolidated balance sheet. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which addresses line-of-credit arrangements that were omitted from ASU No. 2015-03. This ASU states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. We adopted this standard in the first quarter of 2017 and there was no impact on our consolidated financial statements as we continue to present debt issuance costs associated with our line-of-credit arrangement as an asset on our condensed consolidated balance sheets. Effect of new accounting pronouncements to be adopted in future periods — In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires an entity to recognize revenue in an amount that reflects the consideration the entity expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance in ASU No. 2014-09 when evaluating when another party, along with the entity, is involved in providing a good or service to a customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies the guidance in ASU No. 2014-09 regarding assessing whether promises to transfer goods or services are distinct, and whether an entity's promise to grant a license provides a customer with a right to use, or right to access the entity's intellectual property. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606). This ASU clarifies the guidance in ASU 2014-09, providing technical corrections and improvements to clarify guidance and correct unintended applications of the guidance. All standards are effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. As such, we will be required to adopt these standards in the first quarter of fiscal 2019. These standards are to be applied retrospectively or using a cumulative effect transition method, and early adoption is not permitted. We do not believe the new revenue recognition standard will impact our recognition of restaurant sales, rental revenues or royalty fees from franchisees. However, we are still evaluating the impact that this pronouncement will have on the recognition of certain transactions on our consolidated financial statements, including the initial franchise fees currently recognized upon the opening of a franchise restaurant and our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, and the effect it will have on our disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize assets and liabilities on the balance sheet for those leases classified as operating leases under previous guidance. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, we will be required to adopt this standard in the first quarter of fiscal 2020. This standard requires adoption based upon a modified retrospective transition approach, with early adoption permitted. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated balance sheets. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is to be applied retrospectively or using a cumulative effect transition method as of the date of adoption. We are currently evaluating which transition method to use, but believe the impact this standard will have on our consolidated financial statements and related disclosures will be immaterial upon adoption. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard is intended to simplify various aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. As such, we will be required to adopt this standard in fiscal 2018 and will classify the excess tax benefits from share-based compensation arrangements, which were $4.0 million in the first quarter of 2017, as a discrete item within income tax expense on the consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the consolidated statements of stockholders’ deficit. This reclassification will be made on a prospective basis and will also impact the related classification on our consolidated statements of cash flows as excess tax benefits from share-based compensation arrangements are currently reported in cash flows from operating activities and cash flows used in investing activities. Other than these reclassifications, we do not believe the adoption of this ASU will materially impact our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows ( Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard is intended to address eight classification issues related to the statement of cash flows to reduce diversity in practice in how certain transactions are classified. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard requires adoption based upon a retrospective transition method. We are currently evaluating this standard, but do not believe it will have a material impact on the classification of cash flows within our statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (740): Intra-Entity Transfers of Assets Other Than Inventory. This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than deferring the recognition until the asset has been sold to an outside party. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. The standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. We are currently evaluating this standard, but do not believe it will have a material impact on our consolidated financial statements. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements. This standard contains amendments that affect a wide variety of topics in the Accounting Standards Codification. The amendments include differences between original FASB guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2018. This standard is not expected have a significant effect on our accounting policies or on our consolidated financial statements and related disclosures. |
Basis Of Presentation (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Number Of Restaurants | The following table summarizes the number of restaurants as of the end of each period:
The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period(dollars in thousands):
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Discontinued Operations (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table summarizes the results related to the 2013 Qdoba Closures for each period (in thousands):
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Restructuring and Related Costs [Table Text Block] | The following is a summary of our restructuring costs (in thousands):
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Discontinued Operations [Member] | 2013 Qdoba Closures [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | Our liability for lease commitments related to the 2013 Qdoba Closures is included in accrued liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets and has changed as follows in 2017 (in thousands):
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Summary Of Refranchisings, Franchisee Development And Acquisitions (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized | The following table summarizes the number of restaurants as of the end of each period:
The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period(dollars in thousands):
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Fair Value Measurements (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):
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Derivative Instruments (Tables) |
4 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments Outstanding | The following derivative instruments were outstanding as of the end of each period (in thousands):
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Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments | The following table summarizes the OCI activity related to our interest rate swap derivative instruments (in thousands):
Amounts reclassified from accumulated OCI into interest expense represent payments made to the counterparties for the effective portions of the interest rate swaps. During the periods presented, our interest rate swaps had no hedge ineffectiveness. |
Impairment and other charges, net (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment Disposition Of Property And Equipment, Restaurant Closing Costs And Resturcturing | Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):
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Restructuring and Related Costs [Table Text Block] | The following is a summary of our restructuring costs (in thousands):
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Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restaurant Closing Costs | Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2017 (in thousands):
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Facility Closing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restaurant Closing Costs | Restaurant closing costs — Costs of closed restaurants primarily consist of future lease commitments and expected ancillary costs, net of anticipated sublease rentals. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows during 2017 (in thousands):
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Retirement Plans (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Net Periodic Benefit Cost | The components of net periodic benefit cost in each period were as follows (in thousands):
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Schedule Of Defined Benefit Plan Contribution | Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of January 1, 2016, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2017 contributions are as follows (in thousands):
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Share-Based Compensation (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2017, we granted the following shares related to our share-based compensation awards:
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Components Of Share-Based Compensation Expense | The components of share-based compensation expense recognized in each period are as follows (in thousands):
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Average Shares Outstanding (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding | The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):
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Segment Reporting (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Financial Information Of Reportable Segments | The following table provides information related to our operating segments in each period (in thousands):
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Schedule of Goodwill | The following table provides detail of the change in the balance of goodwill for each of our reportable segments (in thousands):
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Supplemental Consolidated Cash Flow Information (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information Related To Cash Flows |
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Supplemental Consolidated Balance Sheet Information (Tables) |
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Jan. 22, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Supplemental Consolidated Balance Sheet Information |
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Basis Of Presentation (Details) $ in Thousands |
4 Months Ended | ||
---|---|---|---|
Jan. 22, 2017
USD ($)
restaurant
|
Jan. 17, 2016
USD ($)
restaurant
|
Oct. 02, 2016
USD ($)
|
|
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ | $ 3,981 | $ 2,020 | |
Jack in the box brand restaurant operations [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 2,261 | 2,253 | |
Jack in the box brand restaurant operations [Member] | Entity Operated Units [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 419 | 413 | |
Jack in the box brand restaurant operations [Member] | Franchised Units [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 1,842 | 1,840 | |
Qdoba brand restaurant operations [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 712 | 674 | |
Qdoba brand restaurant operations [Member] | Entity Operated Units [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 376 | 330 | |
Qdoba brand restaurant operations [Member] | Franchised Units [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | 336 | 344 | |
Current Maturities of Long-Term Debt [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Unamortized Debt Issuance Expense | $ | $ 1,600 | ||
Long-Term Debt, Net of Current Maturities [Member] | |||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Unamortized Debt Issuance Expense | $ | $ 2,200 |
Discontinued Operations (Details) - Discontinued Operations [Member] $ in Thousands |
4 Months Ended | ||||||
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Jan. 22, 2017
USD ($)
center
restaurant
|
Jan. 17, 2016
USD ($)
|
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Discontinued Operation - Distribution Business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of Distribution Centers | center | 1 | ||||||
2013 Qdoba Closures [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of Restaurants | restaurant | 62 | ||||||
Unfavorable lease commitment adjustments | $ (2,060) | $ (1,006) | |||||
Bad debt expense related to subtenants | 389 | (124) | |||||
Broker commissions | (26) | 0 | |||||
Ongoing facility related and other costs | (18) | (38) | |||||
Loss before income tax benefit | (1,715) | $ (1,168) | |||||
Restructuring Reserve [Roll Forward] | |||||||
Balance at beginning of period | 2,943 | ||||||
Adjustments (1) | [1] | 2,060 | |||||
Cash payments | (1,123) | ||||||
Balance at end of period | [2] | $ 3,880 | |||||
2013 Qdoba Closures [Member] | Weighted Average [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
WeightedAverageRemainingLeaseTermCommitments | 3 years | ||||||
|
Summary Of Refranchisings, Franchisee Development And Acquisitions (Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized) (Details) $ in Thousands |
4 Months Ended | |||
---|---|---|---|---|
Jan. 22, 2017
USD ($)
restaurant
|
Jan. 17, 2016
USD ($)
restaurant
|
|||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
Initial franchise fees | $ 425 | $ 385 | ||
Proceeds from the sale of company-operated restaurants (1) | 138 | 1,021 | ||
Gains on the sale of company-operated restaurants | $ 137 | $ 818 | ||
Jack in the box brand restaurant operations [Member] | ||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
Significant Changes, Franchises Sold | restaurant | 0 | 1 | ||
New restaurants opened by franchisees | restaurant | 7 | 5 | ||
Proceeds from the sale of company-operated restaurants (1) | [1] | $ 138 | $ 1,021 | |
Net assets sold (primarily property and equipment) | 0 | (193) | ||
Goodwill related to the sale of company-operated restaurants | (1) | (10) | ||
Gains on the sale of company-operated restaurants | 137 | 818 | ||
Proceeds From Extension Of Franchise And Lease Agreements | $ 100 | $ 1,000 | ||
Qdoba brand restaurant operations [Member] | ||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
New restaurants opened by franchisees | restaurant | 8 | 6 | ||
|
Summary Of Refranchisings, Franchisee Development And Acquisitions (Purchase Price Allocations On Franchise Acquisitions) (Details) |
4 Months Ended |
---|---|
Jan. 17, 2016
restaurant
| |
Jack in the box brand restaurant operations [Member] | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | |
Significant Changes, Franchises Purchased During Period | 1 |
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands |
Jan. 22, 2017 |
Oct. 02, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | $ (61,277) | $ (84,698) | |||||||
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | (38,664) | (36,933) | ||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | (22,613) | (47,765) | ||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | 0 | 0 | ||||||
Interest Rate Swaps [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [2] | (22,613) | (47,765) | ||||||
Interest Rate Swaps [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[2] | 0 | 0 | ||||||
Interest Rate Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[2] | (22,613) | (47,765) | ||||||
Interest Rate Swaps [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[2] | 0 | 0 | ||||||
Non Qualified Deferred Compensation Plan [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [3] | (38,664) | (36,933) | ||||||
Non Qualified Deferred Compensation Plan [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[3] | (38,664) | (36,933) | ||||||
Non Qualified Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[3] | 0 | 0 | ||||||
Non Qualified Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[3] | $ 0 | $ 0 | ||||||
|
Derivative Instruments (Narrative) (Details) |
4 Months Ended | |||
---|---|---|---|---|
Jan. 22, 2017
USD ($)
|
Jan. 17, 2016
USD ($)
|
Jun. 15, 2015
USD ($)
agreements
|
Apr. 14, 2014
USD ($)
agreements
|
|
Derivative [Line Items] | ||||
Interest rate derivatives held | agreements | 11 | 9 | ||
Interest Rate Swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 200,000,000 | $ 300,000,000 | ||
Interest rate swaps hedge ineffectiveness | $ 0 | $ 0 | ||
Interest Rate Swap 1 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 500,000,000 |
Derivative Instruments (Derivative Instruments Outstanding) (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swaps [Member] - USD ($) $ in Thousands |
Jan. 22, 2017 |
Oct. 02, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (22,613) | $ (47,765) |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | (4,100) | (5,857) |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (18,513) | $ (41,908) |
Derivative Instruments (Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI | $ 23,086 | $ (11,437) |
Loss reclassified from accumulated OCI into net earnings | 2,066 | 1,444 |
Interest Rate Swaps [Member] | Derivatives Designated As Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI | 23,086 | (11,437) |
Interest Rate Swaps [Member] | Interest Expense, Net [Member] | Derivatives Designated As Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss reclassified from accumulated OCI into net earnings | $ 2,066 | $ 1,444 |
Impairment and other charges, net (Details) $ in Thousands |
4 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 22, 2017
USD ($)
restaurant
|
Jan. 17, 2016
USD ($)
|
||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | $ 2,048 | $ 0 | |||||||||
Costs of closed restaurants (primarily lease obligations) and other | 1,997 | 560 | |||||||||
Losses (gains) on the disposition of property and equipment, net | 699 | 651 | |||||||||
accelerated depreciation | 313 | 446 | |||||||||
Impairment and other charges, net | 5,057 | $ 1,657 | |||||||||
Other Restructuring [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | [1] | 369 | |||||||||
Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | 477 | ||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Balance at beginning of period | 4,198 | ||||||||||
Additions | 477 | ||||||||||
Cash payments | (3,568) | ||||||||||
Balance at end of period | 1,107 | ||||||||||
Facility Closing [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | 1,202 | ||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Balance at beginning of period | 7,231 | ||||||||||
Cash payments | (1,122) | ||||||||||
Balance at end of period | [2],[3] | 7,214 | |||||||||
Other Accrued Liabilities | 2,600 | ||||||||||
Shared Services [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | 100 | ||||||||||
Jack in the box brand restaurant operations [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | $ 100 | ||||||||||
Jack in the box brand restaurant operations [Member] | accelerated depreciation [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Number of Restaurants | restaurant | 2 | ||||||||||
Qdoba brand restaurant operations [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring costs | $ 1,800 | ||||||||||
Qdoba brand restaurant operations [Member] | accelerated depreciation [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Number of Restaurants | restaurant | 3 | ||||||||||
Impairment and other charges, net [Member] | Facility Closing [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring costs | [4] | $ 742 | |||||||||
Interest Expense [Member] | Facility Closing [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring costs | $ 363 | ||||||||||
Weighted Average [Member] | Facility Closing [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
WeightedAverageRemainingLeaseTermCommitments | 4 years | ||||||||||
|
Income Taxes (Details) |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 38.70% | 37.60% |
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
4 Months Ended | ||||
---|---|---|---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
||||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 6,996 | $ 7,440 | |||
Service cost | 673 | 1,616 | |||
Expected return on plan assets | (8,659) | (6,694) | |||
Actuarial loss | [1] | 1,881 | 1,257 | ||
Amortization of unrecognized prior service cost | [1] | 47 | 74 | ||
Net periodic benefit cost | 938 | 3,693 | |||
Postretirement Healthcare Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 309 | 389 | |||
Actuarial loss | [1] | 50 | 67 | ||
Net periodic benefit cost | $ 359 | $ 456 | |||
|
Retirement Plans (Schedule Of Future Cash Flows) (Details) - USD ($) |
4 Months Ended | 8 Months Ended | |
---|---|---|---|
Jan. 22, 2017 |
Oct. 01, 2017 |
Jan. 01, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required contribution for retirement plans | $ 0 | ||
SERP [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $ 1,122,000 | ||
Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $ 318,000 | ||
Scenario, Forecast [Member] | SERP [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 3,400,000 | ||
Scenario, Forecast [Member] | Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 1,000,000 |
Share-Based Compensation (Schedule Of Share-Based Awards Granted) (Details) |
4 Months Ended |
---|---|
Jan. 22, 2017
shares
| |
Nonvested Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 59,248 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 89,792 |
Performance-Vested Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 29,625 |
Share-Based Compensation (Components Of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 3,814 | $ 4,088 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 2,146 | 1,815 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 817 | 975 |
Performance-Vested Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 824 | 1,271 |
Nonvested Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 27 | $ 27 |
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Equity, Class of Treasury Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 992 | |
Decrease in obligations for treasury stock repurchases | $ 7,208 | $ 0 |
Common Stock, Dividends, Per Share, Declared | $ 0.40 | $ 0.30 |
Dividends, Common Stock | $ 13,000 | |
Expiration: November 2017 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of common stock, remaining authorized amount | 27 | |
Expiration: November 2018 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of common stock, remaining authorized amount | 300,000 | |
Treasury Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury Stock, Value, Acquired, Cost Method | $ 108,100 |
Average Shares Outstanding (Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding) (Details) - shares shares in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Average Shares Outstanding [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic | 32,168 | 35,458 |
Weighted-average shares outstanding - diluted | 32,442 | 35,946 |
Excluded from diluted weighted-average shares outstanding, Antidilutive | 44 | 149 |
Excluded from Diluted Weighted-Average Shares, Performance Conditions Not Satisfied | 79 | 0 |
Nonvested Stock Awards And Units [Member] | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 181 | 187 |
Stock Options [Member] | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 76 | 176 |
Performance-Vested Stock Awards [Member] | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 17 | 125 |
Segment Reporting (Summarized Financial Information Of Reportable Segments) (Details) - USD ($) $ in Thousands |
4 Months Ended | ||
---|---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
Oct. 02, 2016 |
|
Segment Reporting Information [Line Items] | |||
Consolidated revenues | $ 487,933 | $ 470,823 | |
Consolidated earnings from operations | 73,117 | 62,514 | |
Gains on the sale of company-operated restaurants | 137 | 818 | |
Interest expense, net | 12,717 | 8,175 | |
Earnings from continuing operations and before income taxes | 60,400 | 54,339 | |
Consolidated depreciation expense | 27,755 | 28,286 | |
Consolidated goodwill | 166,045 | $ 166,046 | |
Total goodwill disposals | 1 | ||
Jack in the box brand restaurant operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gains on the sale of company-operated restaurants | 137 | 818 | |
Consolidated goodwill | 48,414 | 48,415 | |
Total goodwill disposals | 1 | ||
Qdoba brand restaurant operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated goodwill | 117,631 | $ 117,631 | |
Total goodwill disposals | 0 | ||
Operating Segments [Member] | Jack in the box brand restaurant operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenues | 353,181 | 347,583 | |
Consolidated earnings from operations | 92,404 | 85,690 | |
Consolidated depreciation expense | 19,289 | 20,473 | |
Operating Segments [Member] | Qdoba brand restaurant operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenues | 134,752 | 123,240 | |
Consolidated earnings from operations | 8,732 | 8,737 | |
Consolidated depreciation expense | 6,492 | 5,588 | |
Corporate, Non-Segment [Member] | Shared services and unallocated costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated earnings from operations | (28,156) | (32,731) | |
Consolidated depreciation expense | 1,974 | 2,225 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Gains on the sale of company-operated restaurants | 137 | 818 | |
Interest expense, net | $ 12,717 | $ 8,175 |
Supplemental Consolidated Cash Flow Information (Additional Information Related To Cash Flows) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 22, 2017 |
Jan. 17, 2016 |
|
Supplemental Cash Flow Information [Abstract] | ||
Interest, net of amounts capitalized | $ 12,209 | $ 8,378 |
Income tax payments | 47 | 16,012 |
Decrease in obligations for purchases of property and equipment | 7,290 | 6,025 |
Decrease in obligations for treasury stock repurchases | 7,208 | 0 |
Equipment capital lease obligations incurred | 254 | 271 |
Increase in dividends accrued or converted to common stock equivalents | $ 74 | $ 53 |
Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jan. 22, 2017 |
Oct. 02, 2016 |
---|---|---|
Supplemental Balance Sheet Disclosures [Line Items] | ||
Trade | $ 45,688 | $ 66,837 |
Notes receivable | 1,608 | 1,603 |
Other | 10,065 | 7,680 |
Allowance for doubtful accounts | (2,650) | (2,760) |
Receivables, Net, Current | 54,711 | 73,360 |
Prepaid rent | 5,690 | 18,613 |
Prepaid income taxes | 0 | 12,113 |
Other | 6,941 | 9,672 |
Prepaid Expense, Current | 12,631 | 40,398 |
Company-owned life insurance policies | 105,631 | 105,957 |
Deferred tax assets | 104,851 | 117,587 |
Deferred rent receivable | 47,815 | 47,485 |
Other | 20,319 | 19,440 |
Other assets, net | 278,616 | 290,469 |
Insurance | 39,389 | 38,368 |
Payroll and related taxes | 31,892 | 44,627 |
Advertising | 11,168 | 21,827 |
Sales and property taxes | 8,131 | 14,311 |
Gift card liability | 6,484 | 5,183 |
Deferred rent income | 4,430 | 15,909 |
Deferred franchise fees | 1,147 | 929 |
Other | 32,060 | 40,096 |
Accrued liabilities | 134,701 | 181,250 |
Defined benefit pension plans | 158,892 | 161,003 |
Straight-line rent accrual | 46,998 | 47,070 |
Other | 119,636 | 140,852 |
Other Liabilities, Noncurrent | $ 325,526 | $ 348,925 |
Subsequent Events (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 4 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Apr. 16, 2017
restaurant
$ / shares
|
Jan. 22, 2017
$ / shares
|
Jan. 17, 2016
$ / shares
|
Jul. 09, 2017
USD ($)
|
Oct. 02, 2016
USD ($)
|
|
Subsequent Event [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.40 | $ 0.30 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.40 | ||||
Number of Restaurants | restaurant | 75 | ||||
Term Loan [Member] | |||||
Subsequent Event [Line Items] | |||||
Unamortized Debt Issuance Expense | $ 3,800 | ||||
Minimum [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ 40,000 | ||||
Maximum [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ 45,000 |
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