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 | ¨ |
Emerging growth 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 21, 2018 | October 1, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 3,789 | $ | 4,467 | |||
Accounts and other receivables, net | 36,303 | 59,609 | |||||
Inventories | 3,335 | 3,445 | |||||
Prepaid expenses | 16,423 | 27,532 | |||||
Current assets held for sale | 332,308 | 42,732 | |||||
Other current assets | 5,950 | 1,493 | |||||
Total current assets | 398,108 | 139,278 | |||||
Property and equipment: | |||||||
Property and equipment, at cost | 1,250,596 | 1,262,117 | |||||
Less accumulated depreciation and amortization | (787,427 | ) | (777,841 | ) | |||
Property and equipment, net | 463,169 | 484,276 | |||||
Other Assets: | |||||||
Intangible assets, net | 1,348 | 1,413 | |||||
Goodwill | 51,050 | 51,412 | |||||
Non-current assets held for sale | — | 280,796 | |||||
Other assets, net | 243,894 | 277,570 | |||||
Total other assets | 296,292 | 611,191 | |||||
$ | 1,157,569 | $ | 1,234,745 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 68,564 | $ | 64,225 | |||
Accounts payable | 27,142 | 28,366 | |||||
Accrued liabilities | 102,866 | 135,054 | |||||
Current liabilities held for sale | 61,521 | 34,345 | |||||
Total current liabilities | 260,093 | 261,990 | |||||
Long-term liabilities: | |||||||
Long-term debt, net of current maturities | 1,036,642 | 1,079,982 | |||||
Non-current liabilities held for sale | — | 32,078 | |||||
Other long-term liabilities | 235,394 | 248,825 | |||||
Total long-term liabilities | 1,272,036 | 1,360,885 | |||||
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, 81,943,562 and 81,843,483 issued, respectively | 819 | 818 | |||||
Capital in excess of par value | 457,772 | 453,432 | |||||
Retained earnings | 1,485,130 | 1,485,820 | |||||
Accumulated other comprehensive loss | (127,842 | ) | (137,761 | ) | |||
Treasury stock, at cost, 52,411,407 shares | (2,190,439 | ) | (2,190,439 | ) | |||
Total stockholders’ deficit | (374,560 | ) | (388,130 | ) | |||
$ | 1,157,569 | $ | 1,234,745 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Revenues: | |||||||
Company restaurant sales | $ | 169,637 | $ | 238,571 | |||
Franchise rental revenues | 77,217 | 71,436 | |||||
Franchise royalties and other | 47,609 | 43,174 | |||||
294,463 | 353,181 | ||||||
Operating costs and expenses, net: | |||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||
Food and packaging | 48,864 | 67,989 | |||||
Payroll and employee benefits | 48,940 | 70,183 | |||||
Occupancy and other | 27,750 | 38,941 | |||||
Total company restaurant costs (excluding depreciation and amortization) | 125,554 | 177,113 | |||||
Franchise occupancy expenses (excluding depreciation and amortization) | 46,521 | 42,190 | |||||
Franchise support and other costs | 2,482 | 2,537 | |||||
Selling, general and administrative expenses | 34,625 | 40,772 | |||||
Depreciation and amortization | 19,157 | 21,263 | |||||
Impairment and other charges, net | 2,257 | 2,654 | |||||
Gains on the sale of company-operated restaurants | (8,940 | ) | (137 | ) | |||
221,656 | 286,392 | ||||||
Earnings from operations | 72,807 | 66,789 | |||||
Interest expense, net | 12,780 | 10,409 | |||||
Earnings from continuing operations and before income taxes | 60,027 | 56,380 | |||||
Income taxes | 47,138 | 21,831 | |||||
Earnings from continuing operations | 12,889 | 34,549 | |||||
(Losses) earnings from discontinued operations, net of taxes | (699 | ) | 1,381 | ||||
Net earnings | $ | 12,190 | $ | 35,930 | |||
Net earnings per share - basic: | |||||||
Earnings from continuing operations | $ | 0.44 | $ | 1.07 | |||
(Losses) earnings from discontinued operations | (0.02 | ) | 0.04 | ||||
Net earnings per share (1) | $ | 0.41 | $ | 1.12 | |||
Net earnings per share - diluted: | |||||||
Earnings from continuing operations | $ | 0.43 | $ | 1.06 | |||
(Losses) earnings from discontinued operations | (0.02 | ) | 0.04 | ||||
Net earnings per share (1) | $ | 0.41 | $ | 1.11 | |||
Weighted-average shares outstanding: | |||||||
Basic | 29,551 | 32,168 | |||||
Diluted | 29,853 | 32,442 | |||||
Cash dividends declared per common share | $ | 0.40 | $ | 0.40 |
(1) | Earnings per share may not add due to rounding. |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Net earnings | $ | 12,190 | $ | 35,930 | |||
Cash flow hedges: | |||||||
Net change in fair value of derivatives | 10,291 | 23,086 | |||||
Net loss reclassified to earnings | 1,674 | 2,066 | |||||
11,965 | 25,152 | ||||||
Tax effect | (3,039 | ) | (9,731 | ) | |||
8,926 | 15,421 | ||||||
Unrecognized periodic benefit costs: | |||||||
Actuarial losses and prior service costs reclassified to earnings | 1,535 | 1,978 | |||||
Tax effect | (542 | ) | (766 | ) | |||
993 | 1,212 | ||||||
Other comprehensive income, net of tax | 9,919 | 16,633 | |||||
Comprehensive income | $ | 22,109 | $ | 52,563 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 12,190 | $ | 35,930 | |||
(Losses) earnings from discontinued operations | (699 | ) | 1,381 | ||||
Income from continuing operations | 12,889 | 34,549 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 19,157 | 21,263 | |||||
Amortization of franchise tenant improvement allowances | 147 | 25 | |||||
Deferred finance cost amortization | 1,031 | 1,123 | |||||
Excess tax benefits from share-based compensation arrangements | (802 | ) | (3,981 | ) | |||
Deferred income taxes | 33,542 | 2,285 | |||||
Share-based compensation expense | 2,937 | 3,687 | |||||
Pension and postretirement expense | 715 | 1,297 | |||||
(Gains) losses on cash surrender value of company-owned life insurance | (2,163 | ) | 326 | ||||
Gains on the sale of company-operated restaurants | (8,940 | ) | (137 | ) | |||
Losses on the disposition of property and equipment, net | 183 | 530 | |||||
Impairment charges and other | 805 | 467 | |||||
Changes in assets and liabilities, excluding dispositions: | |||||||
Accounts and other receivables | 26,539 | 25,208 | |||||
Inventories | 110 | (111 | ) | ||||
Prepaid expenses and other current assets | 7,419 | 27,481 | |||||
Accounts payable | (371 | ) | (3,458 | ) | |||
Accrued liabilities | (32,667 | ) | (37,940 | ) | |||
Pension and postretirement contributions | (1,710 | ) | (1,440 | ) | |||
Franchise tenant improvement allowance disbursements | (1,761 | ) | — | ||||
Other | (3,330 | ) | (1,376 | ) | |||
Cash flows provided by operating activities | 53,730 | 69,798 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (10,793 | ) | (8,581 | ) | |||
Purchases of assets intended for sale and leaseback | (1,411 | ) | (1,717 | ) | |||
Proceeds from the sale and leaseback of assets | 4,949 | 2,466 | |||||
Proceeds from the sale of company-operated restaurants | 5,591 | 138 | |||||
Collections on notes receivable | 9,410 | 264 | |||||
Proceeds from the sale of property and equipment | 589 | 87 | |||||
Funding of intercompany operations | (13,122 | ) | (5,805 | ) | |||
Other | 2,969 | (35 | ) | ||||
Cash flows used in investing activities | (1,818 | ) | (13,183 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings on revolving credit facilities | 106,200 | 231,000 | |||||
Repayments of borrowings on revolving credit facilities | (130,800 | ) | (167,000 | ) | |||
Principal repayments on debt | (14,208 | ) | (14,398 | ) | |||
Dividends paid on common stock | (11,736 | ) | (12,963 | ) | |||
Proceeds from issuance of common stock | — | 4,756 | |||||
Repurchases of common stock | — | (115,354 | ) | ||||
Excess tax benefits from share-based compensation arrangements | — | 3,981 | |||||
Change in book overdraft | (129 | ) | 7,804 | ||||
Tax payments for equity award issuances | (4,244 | ) | (5,706 | ) | |||
Cash flows used in financing activities | (54,917 | ) | (67,880 | ) | |||
Cash flows used in continuing operations | (3,005 | ) | (11,265 | ) | |||
Net cash provided by operating activities of discontinued operations | 16,785 | 12,668 | |||||
Net cash used in investing activities of discontinued operations | (13,648 | ) | (12,304 | ) | |||
Net cash used in financing activities of discontinued operations | (43 | ) | (40 | ) | |||
Net cash provided by discontinued operations | 3,094 | 324 | |||||
Cash at beginning of period | 4,467 | 13,906 | |||||
Cash at end of period | $ | 3,789 | $ | 2,641 |
January 21, 2018 | January 22, 2017 | ||||
Company-operated | 255 | 419 | |||
Franchise | 1,995 | 1,842 | |||
Total system | 2,250 | 2,261 |
2. | DISCONTINUED OPERATIONS |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Company restaurant sales | $ | 125,770 | $ | 128,699 | |||
Franchise revenues | 5,986 | 6,053 | |||||
Company restaurant costs (excluding depreciation and amortization) | (108,618 | ) | (105,716 | ) | |||
Franchise costs (excluding depreciation and amortization) | (1,408 | ) | (1,173 | ) | |||
Selling, general and administrative expenses | (12,264 | ) | (12,429 | ) | |||
Depreciation and amortization | (5,012 | ) | (6,695 | ) | |||
Impairment and other charges, net | (1,669 | ) | (3,904 | ) | |||
Interest expense, net | (3,212 | ) | (2,515 | ) | |||
(Losses) earnings from discontinued operations before income taxes | (427 | ) | 2,320 | ||||
Income taxes | (205 | ) | (876 | ) | |||
(Losses) earnings from discontinued operations, net of income taxes | $ | (632 | ) | $ | 1,444 | ||
Net (losses) earnings per share from discontinued operations: | |||||||
Basic | $ | (0.02 | ) | $ | 0.05 | ||
Diluted | $ | (0.02 | ) | $ | 0.05 |
Sixteen Weeks Ended | Twelve Weeks Ended | ||||||||||||||
January 22, 2017 | April 16, 2017 | July 9, 2017 | October 1, 2017 | ||||||||||||
Company restaurant sales | $ | 128,699 | $ | 98,793 | $ | 107,067 | $ | 102,000 | |||||||
Franchise revenues | 6,053 | 4,711 | 4,678 | 4,622 | |||||||||||
Company restaurant costs (excluding depreciation and amortization) | (105,716 | ) | (80,713 | ) | (84,747 | ) | (86,194 | ) | |||||||
Franchise costs (excluding depreciation and amortization) | (1,173 | ) | (910 | ) | (879 | ) | (2,031 | ) | |||||||
Selling, general and administrative expenses | (12,429 | ) | (7,956 | ) | (8,232 | ) | (8,089 | ) | |||||||
Depreciation and amortization | (6,695 | ) | (5,057 | ) | (5,023 | ) | (4,725 | ) | |||||||
Impairment and other charges, net | (3,904 | ) | (3,811 | ) | (1,815 | ) | (5,531 | ) | |||||||
Interest expense, net | (2,515 | ) | (2,044 | ) | (2,229 | ) | (2,237 | ) | |||||||
(Losses) earnings from discontinued operations before income taxes | 2,320 | 3,013 | 8,820 | (2,185 | ) | ||||||||||
Income taxes | (876 | ) | (1,181 | ) | (3,398 | ) | 937 | ||||||||
(Losses) earnings from discontinued operations, net of income taxes | $ | 1,444 | $ | 1,832 | $ | 5,422 | $ | (1,248 | ) | ||||||
Net (losses) earnings per share from discontinued operations: | |||||||||||||||
Basic | $ | 0.05 | $ | 0.06 | $ | 0.18 | $ | (0.04 | ) | ||||||
Diluted | $ | 0.05 | $ | 0.06 | $ | 0.18 | $ | (0.04 | ) |
January 21, 2018 | October 1, 2017 | ||||||
Cash | $ | 3,942 | $ | 3,175 | |||
Accounts receivable, net | 8,529 | 9,086 | |||||
Inventories | 3,168 | 3,202 | |||||
Prepaid expenses and other current assets | 5,144 | 8,802 | |||||
Property and equipment, net | 161,643 | 148,715 | |||||
Intangible assets, net | 12,517 | 12,660 | |||||
Goodwill | 117,636 | 117,636 | |||||
Other assets, net | 1,735 | 1,785 | |||||
Total assets classified as held for sale (1) | $ | 314,314 | $ | 305,061 | |||
Accounts payable | $ | 5,903 | $ | 8,936 | |||
Accrued liabilities | 24,472 | 25,251 | |||||
Current maturities of long-term debt | 175 | 158 | |||||
Straight-line rent accrual | 14,319 | 13,347 | |||||
Deferred income tax liability (2) | 5,444 | 6,421 | |||||
Other long-term liabilities | 11,208 | 12,310 | |||||
Total liabilities classified as held for sale | $ | 61,521 | $ | 66,423 |
(1) | Current assets held for sale on our condensed consolidated balance sheets include Jack in the Box assets held for sale of $18.0 million and $18.5 million as of January 21, 2018 and October 1, 2017, respectively. |
(2) | Prior to held for sale presentation, Qdoba’s deferred income tax liability as of January 22, 2017 was netted against the Jack in the Box deferred income tax assets in other assets, net on our condensed consolidated balance sheet. |
Balance as of October 1, 2017 | $ | 2,473 | |
Adjustments (1) | 193 | ||
Cash payments | (800 | ) | |
Balance as of January 21, 2018 (2) | $ | 1,866 |
(1) | Adjustments relate to revisions to certain sublease assumptions due to changes in market conditions and includes interest expense. |
(2) | The weighted average remaining lease term related to these commitments is approximately 2 years. |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Restaurants sold to franchisees | 22 | — | |||||
New restaurants opened by franchisees | 5 | 7 | |||||
Initial franchise fees | $ | 995 | $ | 290 | |||
Proceeds from the sale of company-operated restaurants: | |||||||
Cash (1) | $ | 5,591 | $ | 138 | |||
Short-term notes receivable (2) | 9,084 | — | |||||
14,675 | 138 | ||||||
Net assets sold (primarily property and equipment) | (3,637 | ) | — | ||||
Goodwill related to the sale of company-operated restaurants | (153 | ) | (1 | ) | |||
Other (3) | (1,945 | ) | — | ||||
Gains on the sale of company-operated restaurants | $ | 8,940 | $ | 137 |
(1) | Amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million, respectively, related to restaurants sold in prior years. |
(2) | These notes were collected during 2018. |
(3) | Amount primarily relates to $1.5 million of remodel credits. |
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 21, 2018: | |||||||||||||||
Non-qualified deferred compensation plan (1) | $ | (38,007 | ) | $ | (38,007 | ) | $ | — | $ | — | |||||
Interest rate swaps (Note 5) (2) | (10,962 | ) | — | (10,962 | ) | — | |||||||||
Total liabilities at fair value | $ | (48,969 | ) | $ | (38,007 | ) | $ | (10,962 | ) | $ | — | ||||
Fair value measurements as of October 1, 2017: | |||||||||||||||
Non-qualified deferred compensation plan (1) | $ | (37,575 | ) | $ | (37,575 | ) | $ | — | $ | — | |||||
Interest rate swaps (Note 5) (2) | (22,927 | ) | — | (22,927 | ) | — | |||||||||
Total liabilities at fair value | $ | (60,502 | ) | $ | (37,575 | ) | $ | (22,927 | ) | $ | — |
(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. The obligation is included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets. |
(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 21, 2018 | October 1, 2017 | ||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||
Interest rate swaps | Accrued liabilities | $ | (2,422 | ) | $ | (4,777 | ) | ||
Interest rate swaps | Other long-term liabilities | (8,540 | ) | (18,150 | ) | ||||
Total derivatives (Note 4) | $ | (10,962 | ) | $ | (22,927 | ) |
Location in Income | Sixteen Weeks Ended | ||||||||
January 21, 2018 | January 22, 2017 | ||||||||
Gain recognized in OCI | N/A | $ | 10,291 | $ | 23,086 | ||||
Loss reclassified from accumulated OCI into net earnings | Interest expense, net | $ | 1,674 | $ | 2,066 |
6. | IMPAIRMENT AND OTHER CHARGES, NET |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Costs of closed restaurants and other | $ | 1,375 | $ | 1,839 | |||
Restructuring costs | 358 | 183 | |||||
Operating restaurant impairment charges (1) | 291 | — | |||||
Losses on disposition of property and equipment, net | 183 | 530 | |||||
Accelerated depreciation | 50 | 102 | |||||
$ | 2,257 | $ | 2,654 |
(1) | Impairment charges are due primarily to our landlord’s sale of a restaurant property to a franchisee. |
Balance as of October 1, 2017 | $ | 6,175 | ||
Additions | 135 | |||
Adjustments (1) | 347 | |||
Interest expense | 545 | |||
Cash payments | (1,592 | ) | ||
Balance as of January 21, 2018 (2) (3) | $ | 5,610 |
(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 4 years. |
(3) | This balance excludes $2.8 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, which were initially recorded as losses on the sale of company-operated restaurants upon sale to Jack in the Box franchisees in prior years. |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Qdoba Evaluation retention bonus | $ | 587 | $ | — | |||
Qdoba Evaluation consulting costs (1) | 226 | — | |||||
Employee severance and related costs (2) | (456 | ) | 92 | ||||
Other | 1 | 91 | |||||
$ | 358 | $ | 183 |
(1) | Qdoba Evaluation consulting costs are primarily related to third party advisory services. |
(2) | 2018 reflects a reduction in severance and related costs due to a change in the number of employees to be terminated in connection with our restructuring activities. |
Balance as of October 1, 2017 | $ | 648 | ||
Adjustments (1) | (456 | ) | ||
Cash payments | (150 | ) | ||
Balance as of January 21, 2018 | $ | 42 |
(1) | Adjustments in accrued severance costs are the result of the change in number of employees to be terminated in connection with our restructuring activities. |
7. | INCOME TAXES |
Sixteen Weeks Ended | |||||||||||||
January 21, 2018 | January 22, 2017 | ||||||||||||
Income tax expense at statutory rate | $ | 17,192 | 28.6 | % | $ | 21,740 | 38.6 | % | |||||
One-time, non-cash impact of the Tax Act | 30,627 | 51.0 | % | — | — | % | |||||||
Stock compensation excess tax benefit | (802 | ) | (1.3 | )% | — | — | % | ||||||
Other | 121 | 0.2 | % | 91 | 0.2 | % | |||||||
(1) | $ | 47,138 | 78.5 | % | $ | 21,831 | 38.7 | % |
(1) | Percentages may not add due to rounding. |
8. | RETIREMENT PLANS |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Defined benefit pension plans: | |||||||
Interest cost | $ | 6,879 | $ | 6,996 | |||
Service cost | 687 | 673 | |||||
Expected return on plan assets | (8,680 | ) | (8,659 | ) | |||
Actuarial loss (1) | 1,498 | 1,881 | |||||
Amortization of unrecognized prior service costs (1) | 45 | 47 | |||||
Net periodic benefit cost | $ | 429 | $ | 938 | |||
Postretirement healthcare plans: | |||||||
Interest cost | $ | 294 | $ | 309 | |||
Actuarial (gain) loss (1) | (8 | ) | 50 | ||||
Net periodic benefit cost | $ | 286 | $ | 359 |
(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 | $ | 1,100 | $ | 610 | |||
Remaining estimated net contributions during fiscal 2018 | $ | 3,300 | $ | 700 |
9. | SHARE-BASED COMPENSATION |
Nonvested stock units | 43,459 | |
Performance share awards | 22,040 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Nonvested stock units | $ | 1,778 | $ | 2,069 | |||
Performance share awards | 663 | 790 | |||||
Stock options | 482 | 801 | |||||
Nonvested stock awards | 14 | 27 | |||||
Total share-based compensation expense | $ | 2,937 | $ | 3,687 |
10. | STOCKHOLDERS’ EQUITY |
11. | AVERAGE SHARES OUTSTANDING |
Sixteen Weeks Ended | |||||
January 21, 2018 | January 22, 2017 | ||||
Weighted-average shares outstanding – basic | 29,551 | 32,168 | |||
Effect of potentially dilutive securities: | |||||
Nonvested stock awards and units | 229 | 181 | |||
Stock options | 64 | 76 | |||
Performance share awards | 9 | 17 | |||
Weighted-average shares outstanding – diluted | 29,853 | 32,442 | |||
Excluded from diluted weighted-average shares outstanding: | |||||
Antidilutive | 90 | 44 | |||
Performance conditions not satisfied at the end of the period | 74 | 79 |
13. | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands) |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Cash paid during the year for: | |||||||
Interest, net of amounts capitalized | $ | 12,632 | $ | 9,691 | |||
Income tax payments | $ | 1,344 | $ | 47 | |||
Decrease in obligations for purchases of property and equipment | $ | 4,201 | $ | 2,841 | |||
Decrease in obligations for treasury stock repurchases | $ | — | $ | 7,208 | |||
Non-cash transactions: | |||||||
Increase in notes receivable from the sale of company-operated restaurants | $ | 9,084 | $ | — | |||
Increase in franchise tenant improvement allowances | $ | 5,325 | $ | — | |||
Increase in dividends accrued or converted to common stock equivalents | $ | 78 | $ | 74 | |||
Decrease in capital lease obligations from the termination of equipment and building leases | $ | 685 | $ | 87 | |||
Equipment capital lease obligations incurred | $ | 39 | $ | 59 |
14. | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) |
January 21, 2018 | October 1, 2017 | ||||||
Accounts and other receivables, net: | |||||||
Trade | $ | 31,688 | $ | 55,108 | |||
Notes receivable | 766 | 988 | |||||
Other | 5,020 | 5,672 | |||||
Allowance for doubtful accounts | (1,171 | ) | (2,159 | ) | |||
$ | 36,303 | $ | 59,609 | ||||
Prepaid expenses: | |||||||
Prepaid rent | $ | 4,761 | $ | — | |||
Prepaid income taxes | 4,190 | 16,928 | |||||
Other | 7,472 | 10,604 | |||||
$ | 16,423 | $ | 27,532 | ||||
Other assets, net: | |||||||
Company-owned life insurance policies | $ | 109,791 | $ | 110,057 | |||
Deferred tax assets | 67,033 | 105,117 | |||||
Deferred rent receivable | 47,345 | 46,962 | |||||
Other | 19,725 | 15,434 | |||||
$ | 243,894 | $ | 277,570 | ||||
Accrued liabilities: | |||||||
Insurance | $ | 37,095 | $ | 39,011 | |||
Payroll and related taxes | 24,390 | 23,361 | |||||
Advertising | 11,047 | 18,493 | |||||
Deferred rent income | 5,681 | 18,961 | |||||
Sales and property taxes | 3,242 | 7,275 | |||||
Gift card liability | 2,516 | 2,237 | |||||
Deferred franchise fees | 425 | 450 | |||||
Other | 18,470 | 25,266 | |||||
$ | 102,866 | $ | 135,054 | ||||
Other long-term liabilities: | |||||||
Defined benefit pension plans | $ | 104,798 | $ | 107,011 | |||
Straight-line rent accrual | 33,047 | 33,749 | |||||
Other | 97,549 | 108,065 | |||||
$ | 235,394 | $ | 248,825 |
15. | SUBSEQUENT EVENTS |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Overview — a general description of our business and 2018 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, sale of company-operated restaurants, 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”). Same-store sales and 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. |
• | Adjusted EBITDA, which represents net earnings on a generally accepted accounting principles (“GAAP”) basis excluding gains or losses from discontinued operations, income taxes, interest expense, net, gains on the sale of company-operated restaurants, impairment and other charges, depreciation and amortization, and the amortization of tenant improvement allowances. We are presenting Adjusted EBITDA because we believe that it provides a meaningful supplement to net earnings of the Company's core business operating results, as well as a comparison to those of other similar companies. Management believes that Adjusted EBITDA, when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations within MD&A, provides useful information about operating performance and period-over-period change, and provides additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Additionally, management believes that Adjusted EBITDA permits investors to gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. |
• | Same-Store Sales — Same-store sales decreased 0.2% at Jack in the Box system restaurants compared with a year ago primarily driven by a decrease in traffic at both company-operated and franchise-operated restaurants, partially offset by increases in menu price and favorable mix. |
• | Company Restaurant Operations — Jack in the Box company restaurant costs as a percentage of company restaurant sales decreased in 2018 to 74.0% from 74.2% a year ago primarily due to the benefit of refranchising, partially offset by an increase in food and packaging costs as a percentage of sales resulting from commodity inflation. |
• | Franchise Operations — Jack in the Box franchise costs as a percentage of franchise revenues increased in 2018 to 39.3%, from 39.0% in the prior year, primarily due to reduced royalties for certain restaurants sold to franchisees in 2017, and a 0.3% decrease in same-store sales at franchised restaurants, which were partially offset by additional franchise fees resulting from our refranchising strategy. |
• | Jack in the Box Franchising Program — Franchisees opened a total of 5 restaurants. As part of our refranchising strategy, we sold 22 company-operated restaurants to franchisees in several different markets during 2018 resulting in proceeds of approximately $14.7 million. In fiscal year 2018, we expect approximately 25 Jack in the Box restaurants to open system-wide, the majority of which will be franchise locations. Our Jack in the Box system was 89% franchised as of January 21, 2018. We plan to increase franchise ownership of the Jack in the Box system to over 90%. Prior and subsequent to the end of the first quarter of 2018, we signed non-binding letters of intent with franchisees to sell approximately 60 company-operated restaurants in several markets. Pre-tax gross proceeds related to these sales are estimated at $27.0 million to $30.0 million, and we have classified $0.8 million of equipment, related to sales under letters executed prior to quarter-end, as assets held for sale in our January 21, 2018 condensed consolidated balance sheet. |
• | Restructuring Costs (including costs related to the Qdoba Evaluation) — In 2016, we announced a plan to reduce our general and administrative costs, and in the third quarter of 2017, we began an evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which ultimately resulted in the Board’s approval to sell Qdoba. In connection with these activities, we have recorded $0.4 million of restructuring charges in 2018, which includes $0.8 million related to the Qdoba Evaluation, offset by a $0.4 million adjustment to severance costs. These costs 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 cash dividends. We declared one cash dividend of $0.40 per share totaling $11.8 million. We have not repurchased any shares of our common stock in 2018. |
• | Adjusted EBITDA — Adjusted EBITDA decreased in 2018 to $85.4 million from $90.6 million in 2017 due to the previously mentioned changes in company restaurant operations and franchise operations. |
• | Tax Reform — The Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law on December 22, 2017, resulting in an estimated annual statutory federal tax rate of 24.5% for fiscal 2018, and 21% for subsequent fiscal years. Due to the Tax Act, a tax expense of $30.6 million was recognized and is included as a component of income taxes from continuing operations in 2018. |
Sixteen Weeks Ended | |||||
January 21, 2018 | January 22, 2017 | ||||
Revenues: | |||||
Company restaurant sales | 57.6 | % | 67.5 | % | |
Franchise rental revenues | 26.2 | % | 20.2 | % | |
Franchise royalties and other | 16.2 | % | 12.2 | % | |
Total revenues | 100.0 | % | 100.0 | % | |
Operating costs and expenses, net: | |||||
Company restaurant costs (excluding depreciation and amortization): | |||||
Food and packaging (1) | 28.8 | % | 28.5 | % | |
Payroll and employee benefits (1) | 28.8 | % | 29.4 | % | |
Occupancy and other (1) | 16.4 | % | 16.3 | % | |
Total company restaurant costs (excluding depreciation and amortization) (1) | 74.0 | % | 74.2 | % | |
Franchise occupancy expenses (excluding depreciation and amortization) (2) | 60.2 | % | 59.1 | % | |
Franchise support and other costs (3) | 5.2 | % | 5.9 | % | |
Selling, general and administrative expenses | 11.8 | % | 11.5 | % | |
Depreciation and amortization | 6.5 | % | 6.0 | % | |
Impairment and other charges, net | 0.8 | % | 0.8 | % | |
Gains on the sale of company-operated restaurants | (3.0 | )% | — | % | |
Earnings from operations | 24.7 | % | 18.9 | % | |
Income tax rate (4) | 78.5 | % | 38.7 | % |
(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 | ||||||||
Fiscal Basis | Calendar Basis (1) | |||||||
January 21, 2018 | January 22, 2017 | January 22, 2017 | ||||||
Company | 0.2 | % | — | % | 0.6 | % | ||
Franchise | (0.3 | )% | 3.3 | % | 3.9 | % | ||
System | (0.2 | )% | 2.5 | % | 3.1 | % |
(1) | Due to the transition from a 53-week year in fiscal 2016 to a 52-week year in fiscal 2017, year-over-year fiscal period comparisons are off by one week. The change in same-store sales presented in the Calendar Basis column uses comparable calendar periods to balance the one-week shift from fiscal 2016 and to provide a clearer year-over-year comparison. |
Sixteen Weeks Ended | ||||||||
Fiscal Basis | Calendar Basis | |||||||
January 21, 2018 | January 22, 2017 | January 22, 2017 | ||||||
Average check (1) | 2.6 | % | 4.7 | % | 4.9 | % | ||
Transactions | (2.4 | )% | (4.7 | )% | (4.3 | )% | ||
Change in same-store sales | 0.2 | % | — | % | 0.6 | % |
(1) | Amounts on a fiscal basis in 2018 and 2017 include price increases of approximately 1.6% and 2.9%, respectively. Amount in 2017 on a calendar basis includes a price increase of approximately 2.9%. |
2018 | 2017 | ||||||||||||||||
Company | Franchise | Total | Company | Franchise | Total | ||||||||||||
Beginning of year | 276 | 1,975 | 2,251 | 417 | 1,838 | 2,255 | |||||||||||
New | 1 | 5 | 6 | 2 | 7 | 9 | |||||||||||
Refranchised | (22 | ) | 22 | — | — | — | — | ||||||||||
Closed | — | (7 | ) | (7 | ) | — | (3 | ) | (3 | ) | |||||||
End of period | 255 | 1,995 | 2,250 | 419 | 1,842 | 2,261 | |||||||||||
% of system | 11 | % | 89 | % | 100 | % | 19 | % | 81 | % | 100 | % |
Sixteen Weeks Ended | ||||||||
January 21, 2018 | January 22, 2017 | |||||||
Net earnings - GAAP | $ | 12,190 | $ | 35,930 | ||||
Losses (earnings) from discontinued operations, net of taxes | 699 | (1,381 | ) | |||||
Income taxes | 47,138 | 21,831 | ||||||
Interest expense, net | 12,780 | 10,409 | ||||||
Earnings from operations | $ | 72,807 | $ | 66,789 | ||||
Gains on the sale of company-operated restaurants | (8,940 | ) | (137 | ) | ||||
Impairment and other charges, net | 2,257 | 2,654 | ||||||
Depreciation and amortization | 19,157 | 21,263 | ||||||
Amortization of franchise tenant improvement allowances | 147 | 25 | ||||||
Adjusted EBITDA - Non-GAAP | $ | 85,428 | $ | 90,594 |
Sixteen Weeks Ended | |||||||||||||
January 21, 2018 | January 22, 2017 | ||||||||||||
Company restaurant sales | $ | 169,637 | $ | 238,571 | |||||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||||||||
Food and packaging | 48,864 | 28.8 | % | 67,989 | 28.5 | % | |||||||
Payroll and employee benefits | 48,940 | 28.8 | % | 70,183 | 29.4 | % | |||||||
Occupancy and other | 27,750 | 16.4 | % | 38,941 | 16.3 | % | |||||||
Total company restaurant costs (excluding depreciation and amortization) | $ | 125,554 | 74.0 | % | $ | 177,113 | 74.2 | % |
Decrease in the average number of restaurants | $ | (96.1 | ) |
AUV increase | 27.2 | ||
Total change in company restaurant sales | $ | (68.9 | ) |
Sixteen Weeks Ended | |||||
January 21, 2018 | January 22, 2017 | ||||
Average check (1) | 2.6 | % | 4.7 | % | |
Transactions | (2.4 | )% | (4.7 | )% | |
Change in same-store sales | 0.2 | % | — | % |
(1) | Amounts on a fiscal basis in 2018 and 2017 include price increases of approximately 1.6% and 2.9%, respectively. |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Franchise rental revenues | $ | 77,217 | $ | 71,436 | |||
Royalties | 46,293 | 42,588 | |||||
Franchise fees and other | 1,316 | 586 | |||||
Franchise royalties and other | 47,609 | 43,174 | |||||
Total franchise revenues | $ | 124,826 | $ | 114,610 | |||
Franchise occupancy expenses (excluding depreciation and amortization) | $ | 46,521 | $ | 42,190 | |||
Franchise support and other costs | 2,482 | 2,537 | |||||
Total franchise costs | $ | 49,003 | $ | 44,727 | |||
Franchise costs as a % of total franchise revenues | 39.3 | % | 39.0 | % | |||
Average number of franchise restaurants | 1,975 | 1,839 | |||||
% increase | 7.4 | % | |||||
(Decrease) increase in franchise-operated same-store sales | (0.3 | )% | 3.3 | % | |||
Franchise restaurant AUVs | $ | 455 | $ | 453 | |||
Royalties as a percentage of total franchise restaurant sales | 5.1 | % | 5.1 | % |
(Decrease) / Increase | |||
Advertising | $ | (3,109 | ) |
Cash surrender value of COLI policies, net | (1,248 | ) | |
Region administration | (892 | ) | |
Pension and postretirement benefits | (582 | ) | |
Incentive compensation (including share-based compensation and related payroll taxes) | (203 | ) | |
Other (including savings related to our restructuring plan) | (113 | ) | |
$ | (6,147 | ) |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Costs of closed restaurants and other | $ | 1,375 | $ | 1,839 | |||
Restructuring costs | 358 | 183 | |||||
Restaurant impairment charges | 291 | — | |||||
Losses on disposition of property and equipment, net | 183 | 530 | |||||
Accelerated depreciation | 50 | 102 | |||||
$ | 2,257 | $ | 2,654 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Number of restaurants sold to Jack in the Box franchisees | 22 | — | |||||
Gains on the sale of company-operated restaurants | $ | 8,940 | $ | 137 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Interest expense | $ | 12,811 | $ | 10,436 | |||
Interest income | (31 | ) | (27 | ) | |||
Interest expense, net | $ | 12,780 | $ | 10,409 |
• | 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 21, 2018 | January 22, 2017 | ||||||
Total cash provided by (used in): | |||||||
Operating activities | $ | 53,730 | $ | 69,798 | |||
Investing activities | (1,818 | ) | (13,183 | ) | |||
Financing activities | (54,917 | ) | (67,880 | ) | |||
Net cash flows | $ | (3,005 | ) | $ | (11,265 | ) |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Jack in the Box: | |||||||
Restaurant facility expenditures | $ | 8,554 | $ | 5,128 | |||
New restaurants | 555 | 2,000 | |||||
Other, including information technology | 657 | 410 | |||||
9,766 | 7,538 | ||||||
Corporate Services: | |||||||
Information technology | 1,017 | 1,037 | |||||
Other, including facility improvements | 10 | 6 | |||||
1,027 | 1,043 | ||||||
Total capital expenditures | $ | 10,793 | $ | 8,581 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Number of restaurants sold and leased back | 2 | 1 | |||||
Purchases of assets intended for sale and leaseback | $ | (1,411 | ) | $ | (1,717 | ) | |
Proceeds from the sale and leaseback of assets | $ | 4,949 | $ | 2,466 |
Sixteen Weeks Ended | |||||||
January 21, 2018 | January 22, 2017 | ||||||
Number of restaurants sold to franchisees | 22 | — | |||||
Proceeds from the sale of company-operated restaurants | $ | 14,675 | $ | 138 |
• | Changes in consumer confidence and declines in general economic conditions could negatively impact our financial results. |
• | We face significant competition in the food service industry and our inability to compete may adversely affect our business. |
• | Changes in demographic trends and in customer tastes and preferences could cause sales to decline. |
• | Increases in food and commodity costs could decrease our profit margins or result in a modified menu, which could adversely affect our financial results. |
• | Failure to receive scheduled deliveries of high quality food ingredients and other supplies could harm our operations. |
• | We have a limited number of suppliers for our major products and rely on a distribution network with a limited number of distribution partners for the majority of our national distribution program in the United States. If our suppliers or distributors are unable to fulfill their obligations under their contracts, it could harm our operations. |
• | Food safety and food-borne illness concerns may have an adverse effect on our business by reducing demand and increasing costs. |
• | Negative publicity relating to our business or industry could adversely impact our reputation. |
• | Our business could be adversely affected by increased labor costs or difficulties in finding and retaining top-performing personnel. |
• | We may not have the same resources as our competitors for advertising and promotion. |
• | We may be adversely impacted by severe weather conditions, natural disasters, terrorist acts or civil unrest that could result in property damage, injury to employees and staff, and lost restaurant sales. |
• | Our business is subject to seasonal fluctuations. |
• | We may not achieve our development goals. |
• | The failure of our franchisees to operate successful and profitable restaurants could negatively impact our business. |
• | We are subject to land risks and regulations with respect to our owned and leased properties and real estate development projects. |
• | Estimated values of our property, fixtures, and equipment or operating results that are lower than our current estimates at certain restaurant locations may cause us to incur impairment charges on certain long-lived assets; such charges may adversely affect our results of operations. |
• | Our tax provision may fluctuate due to changes in expected earnings. |
• | We may incur costs as a result of certain restructuring activities which may negatively impact our financial results. |
• | We may experience cyber security breaches or other similar incidents. |
• | We may not be able to adequately protect our intellectual property, which could harm the value of our brands and adversely affect our business. |
• | We adjust our capital structure from time to time and we may increase our debt leverage which would make us more sensitive to the effects of economic downturns. |
• | The trading volatility and price of our common stock may be affected by many factors. |
• | Changes in accounting standards may negatively impact our results of operations. |
• | We may be subject to claims or litigation that are costly and could result in our payment of substantial damages or settlement costs. |
• | Unionization activities or labor disputes may disrupt our operations and affect our profitability. |
• | Our insurance may not provide adequate levels of coverage against claims. |
• | Our bylaws contain an exclusive forum provision that may discourage lawsuits against us and our directors and officers. |
• | Governmental regulation may adversely affect our existing and future operations and results, including by harming our ability to profitably operate our restaurants. |
• | The proliferation of federal, state, and local regulations increases our compliance risks, which in turn could adversely affect our business. |
• | Changes to healthcare laws in the United States or the repeal of existing healthcare laws may negatively impact our financial results in future periods. |
• | Legislation and regulations regarding our products and ingredients, including the nutritional content of our products, could impact customer preferences and negatively impact our financial results. |
• | Failure to obtain and maintain required licenses and permits or to comply with food control regulations could lead to the loss of our food service licenses and, thereby, harm our business. |
• | Delay or failure in closing the pending sale of Qdoba. |
Number | Description | Form | Filed with SEC |
3.1 | 8-K | 9/24/2007 | |
3.2 | 10-Q | Filed herewith | |
3.3 | 8-K | 12/20/2017 | |
10.2.6 | 8-K | 1/16/2018 | |
10.2.7 | 8-K | 1/26/2018 | |
31.1 | — | Filed herewith | |
31.2 | — | Filed herewith | |
32.1 | — | Filed herewith | |
32.2 | — | 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 22, 2018 | /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 22, 2018 | /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 22, 2018 | /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. |
Dated: | February 22, 2018 | /S/ JERRY P. REBEL |
Jerry P. Rebel | ||
Chief Financial Officer |
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Document And Entity Information - shares |
4 Months Ended | |
---|---|---|
Jan. 21, 2018 |
Feb. 16, 2018 |
|
Document And Entity Information [Abstract] | ||
Entity Common Stock, Shares Outstanding | 29,532,155 | |
Entity Registrant Name | JACK IN THE BOX INC /NEW/ | |
Entity Central Index Key | 0000807882 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 21, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jan. 21, 2018 |
Oct. 01, 2017 |
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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 | 81,943,562 | 81,843,483 |
Treasury stock at cost, shares | 52,411,407 | 52,411,407 |
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands |
4 Months Ended | |
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Jan. 21, 2018 |
Jan. 22, 2017 |
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Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 12,190 | $ 35,930 |
Net change in fair value of derivatives | 10,291 | 23,086 |
Net loss reclassified to earnings | 1,674 | 2,066 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 11,965 | 25,152 |
Tax effect | (3,039) | (9,731) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 8,926 | 15,421 |
Actuarial losses and prior service costs reclassified to earnings | 1,535 | 1,978 |
Tax effect | (542) | (766) |
Unrecognized periodic benefit costs | 993 | 1,212 |
Other comprehensive income, net of tax | 9,919 | 16,633 |
Comprehensive income | $ 22,109 | $ 52,563 |
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands |
4 Months Ended | |||
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Jan. 21, 2018 |
Jan. 22, 2017 |
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Cash flows from operating activities: | ||||
Net earnings | $ 12,190 | $ 35,930 | ||
(Losses) earnings from discontinued operations | (699) | 1,381 | ||
Income from continuing operations | 12,889 | 34,549 | ||
Depreciation, Depletion and Amortization | 19,157 | 21,263 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Amortization of Lease Incentives | 147 | 25 | ||
Deferred finance cost amortization | 1,031 | 1,123 | ||
Excess tax benefits from share-based compensation arrangements | (802) | (3,981) | ||
Deferred income taxes | 33,542 | 2,285 | ||
Share-based compensation expense | 2,937 | 3,687 | ||
Pension and postretirement expense | 715 | 1,297 | ||
(Gains) losses on cash surrender value of company-owned life insurance | (2,163) | 326 | ||
Gains on the sale of company-operated restaurants | (8,940) | (137) | ||
Losses on the disposition of property and equipment, net | (183) | (530) | ||
Impairment charges and other | 805 | 467 | ||
Changes in assets and liabilities, excluding dispositions: | ||||
Accounts and other receivables | 26,539 | 25,208 | ||
Inventories | 110 | (111) | ||
Prepaid expenses and other current assets | 7,419 | 27,481 | ||
Accounts payable | (371) | (3,458) | ||
Accrued liabilities | (32,667) | (37,940) | ||
Pension and postretirement contributions | (1,710) | (1,440) | ||
Franchise tenant improvement allowance disbursements | (1,761) | 0 | ||
Other Operating Activities, Cash Flow Statement | (3,330) | (1,376) | ||
Cash flows provided by operating activities | 53,730 | 69,798 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (10,793) | (8,581) | ||
Purchases of assets intended for sale and leaseback | (1,411) | (1,717) | ||
Proceeds from the sale and leaseback of assets | 4,949 | 2,466 | ||
Proceeds from the sale of company-operated restaurants | [1] | 5,591 | 138 | |
Collections on notes receivable | 9,410 | 264 | ||
Proceeds from the sale of property and equipment | 589 | 87 | ||
Funding of intercompany operations | (13,122) | (5,805) | ||
Other | 2,969 | (35) | ||
Cash flows used in investing activities | (1,818) | (13,183) | ||
Cash flows from financing activities: | ||||
Borrowings on revolving credit facilities | 106,200 | 231,000 | ||
Repayments of borrowings on revolving credit facilities | (130,800) | (167,000) | ||
Principal repayments on debt | (14,208) | (14,398) | ||
Dividends paid on common stock | (11,736) | (12,963) | ||
Proceeds from issuance of common stock | 0 | 4,756 | ||
Repurchases of common stock | 0 | (115,354) | ||
Excess tax benefits from share-based compensation arrangements | 0 | 3,981 | ||
Change in book overdraft | (129) | 7,804 | ||
Tax payments for equity award issuances | (4,244) | (5,706) | ||
Cash flows used in financing activities | (54,917) | (67,880) | ||
Cash flows used in continuing operations | (3,005) | (11,265) | ||
Net cash provided by operating activities of discontinued operations | 16,785 | 12,668 | ||
Net cash used in investing activities of discontinued operations | (13,648) | (12,304) | ||
Net cash used in financing activities of discontinued operations | (43) | (40) | ||
Net cash provided by discontinued operations | 3,094 | 324 | ||
Cash at beginning of period | 4,467 | 13,906 | ||
Cash at end of period | $ 3,789 | $ 2,641 | ||
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Basis Of Presentation |
4 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||
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. 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”). 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 1, 2017 (“2017 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2017 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2018, which are described below. On December 19, 2017, we entered into a definitive agreement to sell Qdoba Restaurant Corporation (“Qdoba”), a wholly owned subsidiary of the Company which operates and franchises more than 700 Qdoba Mexican Eats® fast-casual restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, the “Buyer”). All assets being sold and liabilities being conveyed to the Buyer are presented as “held for sale” on the condensed consolidated balance sheets. Additionally, for all periods presented in our condensed consolidated statements of earnings, all sales, costs, expenses and income taxes attributable to Qdoba, except as related to the impact of the decrease in the federal statutory tax rate (see Note 7, Income Taxes), have been aggregated under the caption “(losses) earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by Qdoba operations have been aggregated in the condensed consolidated statement of cash flows as part of discontinued operations. Prior year results have been recast to conform with the current presentation. Refer to Note 2, Discontinued Operations, for additional information. During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business and the related results of operations for this business are also 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. Segment reporting — Prior to the decision to sell Qdoba, we had two reporting segments, Jack in the Box restaurant operations and Qdoba restaurant operations. The reportable segments did not include an allocation of the costs related to shared corporate service functions; nor did they include unallocated costs such as pension expense, share-based compensation and restructuring expense. As a result of the decision to sell Qdoba, which has been classified as discontinued operations, we now have one reporting segment. Revenues and costs related to our Jack in the Box restaurant operations, including indirect corporate overhead costs, are reported within results from continuing operations. See Note 2, Discontinued Operations, for additional information regarding the planned sale of Qdoba. Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated financial statements have been reclassified due to our Board of Director’s approval to sell Qdoba. See Note 2, Discontinued Operations, for further information regarding this planned sale and the resulting prior year reclassifications. We recorded certain adjustments in 2018 upon the adoption of a new accounting pronouncement; see details regarding the effects of the adoption on our condensed consolidated financial statements below. Further, in 2018, we began presenting depreciation and amortization as a separate line item on our condensed consolidated statements of earnings to better align with similar presentation made by many of our peers and to provide additional disclosure that is meaningful for our investors. The prior year condensed consolidated statement of earnings was adjusted to conform with this new presentation. Depreciation and amortization were previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net on our condensed consolidated statement of earnings. Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2018 and 2017 include 52 weeks. Our first quarter includes 16-weeks and all other quarters include 12-weeks. All comparisons between 2018 and 2017 refer to the 16-weeks (“quarter”) ended January 21, 2018 and January 22, 2017, 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. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law, or if in certain cases, the U.S. Treasury is expected to issue further guidance on the application of certain provisions of the U.S. legislation. See Note 7, Income Taxes, for additional details on the provisional tax expense recognized in accordance with SAB 118. Advertising costs — We administer a marketing fund which includes contractual contributions. In 2018, the marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues. We record contributions from franchisees as a liability included in accrued liabilities in the accompanying condensed consolidated balance sheets until such funds are expended. The contributions to the marketing fund are designated for sales driving and marketing-related initiatives and advertising, and we act as an agent for the franchisees with regard to these contributions. Therefore, we do not reflect franchisee contributions to the funds in our condensed consolidated statements of earnings. Production costs of commercials, programming and other marketing activities are charged to the marketing fund when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. Total contributions and other marketing expenses are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of earnings. In 2018 and 2017, advertising and promotions were $8.9 million and $12.0 million, respectively. Effect of new accounting pronouncements adopted in fiscal 2018 — 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. As such, we adopted this standard in the first quarter of fiscal 2018. Upon the adoption of the standard we prospectively reclassified excess tax benefits from share-based compensation arrangements of $0.8 million as a discrete item within income tax expense on the condensed consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the condensed consolidated balance sheet. This also impacted the related classification on our condensed consolidated statements of cash flows as excess tax benefits from share-based compensation arrangements is only reported in cash flows from operating activities on a prospective basis, rather than as previously reported in cash flows from operating activities and cash flows used in financing activities. Upon adoption of the standard we also began reporting cash paid to a taxing authority on an employee’s behalf when we directly withhold equivalent shares for taxes as cash flows used in financing activities with the related tax withholding classified as a change in accounts and other receivables in cash flows from operating activities on our condensed consolidated statements of cash flows. We retrospectively applied this new reporting of tax payments for equity award issuances on our condensed consolidated statements of cash flows. The standard also impacted our earnings per share calculation on a prospective basis as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. Lastly, the Company elected to account for forfeitures as they occur, and a cumulative-effect adjustment was made in the amount of $0.2 million and recorded in retained earnings as of October 2, 2017 on the condensed consolidated balance sheet. 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 (“ASC”). The amendments include differences between original FASB guidance and the ASC, guidance clarification and reference corrections, simplifications and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018. This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures. 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 in 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. In January 2018, the FASB issued ASU No.2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which affects the guidance in ASU 2016-02. The standard permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The effective date and transition requirements are the same as ASU 2016-02. 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 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 (Topic 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 February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The standard provides clarification about the term “in substance nonfinancial asset” and guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets. The standard is required to be adopted retrospectively, in conjunction with ASU 2014-09. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires the presentation of the service cost component of net benefit cost to be in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net benefit cost should be presented separately from the service cost component and outside of a subtotal of earnings from operations, or separately disclosed. The standard is effective for annual and interim periods beginning after December 15, 2017 and must be adopted retrospectively. Early adoption is permitted as of the beginning of an annual period, but we plan to adopt this standard in the first quarter of fiscal 2019. Upon adoption of this standard, we will separately present the components of net periodic benefit cost, excluding the service cost component, outside of earnings from operations. Net periodic benefit cost, excluding the service cost component, was $0.1 million and $0.6 million in 2018 and 2017, respectively. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This standard provides guidance that clarifies when changes to the terms or conditions of a share-based payment award require the application of modification accounting under ASC 718. This new guidance will allow for certain changes to be made to awards without accounting for them as modifications. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The standard is required to be applied prospectively to awards modified on or after the adoption date. We will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a significant effect on our accounting policies or on our consolidated financial statements and related disclosures. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | 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 2018 and 2017, the results of discontinued operations related to our distribution business were immaterial to our condensed consolidated results of operations. Our liability for lease commitments related to our distribution centers is immaterial to our condensed consolidated balance sheet as of October 1, 2017, and relates to one distribution center lease that expired in July 2017. Qdoba — On December 19, 2017, we entered into a stock purchase agreement (the “Qdoba Purchase Agreement”) with Quidditch Acquisition, Inc., a Delaware corporation and affiliate of certain funds managed by affiliates of Apollo Global Management, LLC (the “Buyer”). Pursuant to the Qdoba Purchase Agreement, the Buyer has agreed to purchase from the Company all issued and outstanding shares of Qdoba (the “Shares”) for an aggregate purchase price of approximately $305.0 million in cash, subject to customary closing conditions and adjustments set forth in the Qdoba Purchase Agreement (the “Qdoba Sale”). Our Board of Directors unanimously approved the Qdoba Purchase Agreement after its comprehensive evaluation of potential alternatives with respect to Qdoba, which began in 2017. The Buyer has obtained guarantees with respect to its obligations under the Qdoba Purchase Agreement. The closing of the Qdoba Sale is anticipated to occur by April 2018, subject to customary closing conditions set forth in the Qdoba Purchase Agreement. In addition to the purchase of the Shares, the Company and the Buyer will enter into a Transition Services Agreement pursuant to which the Buyer will receive certain services (the “Services”) to enable it to operate the Qdoba business from and after the closing of the Qdoba Sale. The Services will include information technology, finance and accounting, human resources, supply chain and other corporate support services. The Services will be provided at a cost for a period of up to 12 months, with two 3 month extensions available for certain services. The Company and the Buyer will also enter into an Employee Agreement pursuant to which the Company will continue to employ all Qdoba employees who will transfer employment to the Buyer (the “Qdoba Employees”) from the closing of the Qdoba Sale through the earlier of: (a) following 30 days written notice from the Buyer of termination of the Employee Agreement, or (b) nine months following the closing of the Qdoba Sale. Upon termination of the Employee Agreement, the Qdoba employees will effectively become employees of the Buyer. During the term of the Employee Agreement, the Company will pay all wages and benefits of the Qdoba Employees and will receive reimbursement of these costs from the Buyer. As the Qdoba Sale represents a strategic shift that will have a major effect on our operations and financial results, in accordance with the provisions of FASB authoritative guidance on the presentation of financial statements, Qdoba results are classified as discontinued operations in our condensed consolidated statements of earnings and our condensed consolidated statements of cash flows for all periods presented. Prior year results have been recast to conform with the current presentation. In 2018, we recognized deferred tax benefits of $0.5 million on the excess of the tax basis over the book basis in our investment in Qdoba as a result of its pending disposition as it is probable that the temporary difference will reverse in the foreseeable future. The following table summarizes the Qdoba results for each period (in thousands, except per share data):
Selling, general and administrative expenses include corporate costs directly in support of Qdoba operations. All other corporate costs are classified in results of continuing operations. Our credit facility requires us to make a mandatory prepayment on our borrowings upon closing of the Qdoba Sale. In accordance with FASB authoritative guidance on financial statement presentation, interest expense associated with our credit facility has been allocated to discontinued operations based on our estimate of the mandatory prepayment that will be made upon closing of the Qdoba Sale. The following is a summary of the unaudited quarterly results of Qdoba operations for fiscal 2017 (in thousands, except per share data):
Assets being sold and liabilities being assumed by the Buyer in the Qdoba Sale include substantially all assets and liabilities associated with Qdoba, and are classified as held for sale on our condensed consolidated balance sheets. Prior year balances have been recast to conform with the current presentation. Upon classification of the Qdoba assets as held for sale, in accordance with the FASB authoritative guidance on financial statement presentation, the assets are no longer depreciated. The following table summarizes the major categories of assets and liabilities classified as held for sale in our condensed consolidated balance sheets as of the end of each period (in thousands):
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Our liability for Qdoba lease commitments is included in current liabilities held for sale as of January 21, 2018 and is included in current and non-current liabilities held for sale as of October 1, 2017 in the accompanying condensed consolidated balance sheets and has changed as follows in 2018 (in thousands):
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Summary Of Refranchisings, Franchisee Development And Acquisitions |
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Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions | SUMMARY OF REFRANCHISINGS AND FRANCHISEE DEVELOPMENT 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):
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As of the end of the first 2018 quarter, we had signed non-binding letters of intent with franchisees to sell an additional 10 company-operated restaurants. Pre-tax gross proceeds related to these sales are estimated at $2.0 million to $3.0 million. Equipment of $0.8 million related to these sales has been classified as assets held for sale on our January 21, 2018 and October 1, 2017 condensed consolidated balance sheets. |
Fair Value Measurements |
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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):
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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 21, 2018, 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 21, 2018. 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 2018, we recorded $0.5 million of additional impairment charges resulting from changes in market value from three previously closed restaurants, and $0.2 million in charges related to our landlord’s sale of a restaurant property to a franchisee. 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 | 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] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment and other charges, net | IMPAIRMENT AND OTHER CHARGES, NET Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):
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Costs of closed restaurants and other — Costs of closed restaurants in 2018 and 2017 include future lease commitment charges and expected ancillary cost, net of anticipated sublease rentals. Costs in 2018 also include $0.5 million of additional impairment charges resulting from changes in market value from three previously closed restaurants. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, changed as follows during 2018 (in thousands):
Restructuring costs — Restructuring charges in 2018 and 2017 include costs resulting from a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions and refranchising initiatives. Restructuring charges in 2018 also include costs related to the evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which resulted in the Board of Director’s approval to sell Qdoba. Refer to Note 2, Discounted Operations, for additional information regarding the Qdoba Sale. The following is a summary of our restructuring costs (in thousands):
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At this time, we are unable to estimate additional charges to be incurred. Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2018 (in thousands):
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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 2018, accelerated depreciation was primarily related to exterior enhancements at our company-operated restaurants. In 2017, accelerated depreciation primarily related to the anticipated closure of two restaurants. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Our tax rates for the quarter ended January 21, 2018 was impacted by the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted into law on December 22, 2017. As a fiscal year taxpayer, certain provisions of the Tax Act impacted us in fiscal year 2018, including a reduction in the U.S. federal statutory corporate income tax rate (the “Tax Rate”), while other provisions will be effective starting at the beginning of fiscal year 2019. The Tax Rate reduction was effective as of January 1, 2018, and will be phased in, resulting in a statutory federal tax rate of 24.5% for our fiscal year ending September 30, 2018, and 21.0% for subsequent fiscal years. As of January 21, 2018, we provisionally accounted for the results of the Tax Act. The provision for income taxes is based on a reasonable estimate of the effects on our existing deferred tax balances. A tax expense of $30.6 million, including a $2.3 million benefit related to Qdoba, was recognized and is included as a component of income taxes from continuing operations. This tax expense consists primarily of a $30.7 million re-measurement of our deferred tax assets and liabilities due to the enactment of the Tax Act. The impact of the Tax Act is based upon estimates and interpretations which may be refined as further authoritative guidance is issued and is expected to be completed by the first quarter of fiscal year 2019. The income tax provisions reflect tax rates of 78.5% in 2018 and 38.7% in 2017. The major components of the change in these tax rates were the one-time, non-cash impact of the enactment of the Tax Act, including the revaluation of all deferred tax assets and liabilities at the reduced federal statutory tax rate, partially offset by the decrease in the federal statutory tax rate and the excess tax benefit on 2018 stock compensation. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual annual 2018 rate could differ from our current estimates. The following is a summary of the components of each tax rate (in thousands):
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Retirement Plans |
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Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | 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, 2017, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2018 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 2018. |
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 2018, 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 |
4 Months Ended |
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Jan. 21, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Repurchases of common stock — In 2018, we have not repurchased any common shares. As of January 21, 2018, there was approximately $181.0 million remaining under Board-authorized stock buyback programs which expire in November 2018. Dividends — In 2018, the Board of Directors declared one cash dividend of $0.40 per common share which was paid on December 15, 2017 to shareholders of record as of the close of business on December 4, 2017 and totaled $11.8 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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Jan. 21, 2018 | |
Legal Matters and Contingencies [Abstract] | |
Contingencies and Legal Matters | 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 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. 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 continue to believe that no additional losses are probable beyond this accrual and cannot estimate a possible loss contingency or range of reasonably possible loss contingencies beyond the accrual. 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. |
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. 21, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On February 19, 2018, the Board of Directors declared a cash dividend of $0.40 per common share, to be paid on March 16, 2018 to shareholders of record as of the close of business on March 5, 2018. Subsequent to the end of the first quarter of 2018, we signed non-binding letters of intent with franchisees to sell approximately 50 company-operated restaurants in several markets. Pre-tax gross proceeds related to these sales are estimated at $25.0 million to $27.0 million. |
Basis Of Presentation (Policy) |
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Jan. 21, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations — Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® quick-service 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”). 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 1, 2017 (“2017 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2017 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2018, which are described below. On December 19, 2017, we entered into a definitive agreement to sell Qdoba Restaurant Corporation (“Qdoba”), a wholly owned subsidiary of the Company which operates and franchises more than 700 Qdoba Mexican Eats® fast-casual restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, the “Buyer”). All assets being sold and liabilities being conveyed to the Buyer are presented as “held for sale” on the condensed consolidated balance sheets. Additionally, for all periods presented in our condensed consolidated statements of earnings, all sales, costs, expenses and income taxes attributable to Qdoba, except as related to the impact of the decrease in the federal statutory tax rate (see Note 7, Income Taxes), have been aggregated under the caption “(losses) earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by Qdoba operations have been aggregated in the condensed consolidated statement of cash flows as part of discontinued operations. Prior year results have been recast to conform with the current presentation. Refer to Note 2, Discontinued Operations, for additional information. During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business and the related results of operations for this business are also 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. |
Segment reporting | Segment reporting — Prior to the decision to sell Qdoba, we had two reporting segments, Jack in the Box restaurant operations and Qdoba restaurant operations. The reportable segments did not include an allocation of the costs related to shared corporate service functions; nor did they include unallocated costs such as pension expense, share-based compensation and restructuring expense. As a result of the decision to sell Qdoba, which has been classified as discontinued operations, we now have one reporting segment. Revenues and costs related to our Jack in the Box restaurant operations, including indirect corporate overhead costs, are reported within results from continuing operations. See Note 2, Discontinued Operations, for additional information regarding the planned sale of Qdoba. |
Reclassification and adjustments | Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated financial statements have been reclassified due to our Board of Director’s approval to sell Qdoba. See Note 2, Discontinued Operations, for further information regarding this planned sale and the resulting prior year reclassifications. We recorded certain adjustments in 2018 upon the adoption of a new accounting pronouncement; see details regarding the effects of the adoption on our condensed consolidated financial statements below. Further, in 2018, we began presenting depreciation and amortization as a separate line item on our condensed consolidated statements of earnings to better align with similar presentation made by many of our peers and to provide additional disclosure that is meaningful for our investors. The prior year condensed consolidated statement of earnings was adjusted to conform with this new presentation. Depreciation and amortization were previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net on our condensed consolidated statement of earnings. |
Fiscal year | Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2018 and 2017 include 52 weeks. Our first quarter includes 16-weeks and all other quarters include 12-weeks. All comparisons between 2018 and 2017 refer to the 16-weeks (“quarter”) ended January 21, 2018 and January 22, 2017, 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. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law, or if in certain cases, the U.S. Treasury is expected to issue further guidance on the application of certain provisions of the U.S. legislation. See Note 7, Income Taxes, for additional details |
Advertising costs | Advertising costs — We administer a marketing fund which includes contractual contributions. In 2018, the marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues. We record contributions from franchisees as a liability included in accrued liabilities in the accompanying condensed consolidated balance sheets until such funds are expended. The contributions to the marketing fund are designated for sales driving and marketing-related initiatives and advertising, and we act as an agent for the franchisees with regard to these contributions. Therefore, we do not reflect franchisee contributions to the funds in our condensed consolidated statements of earnings. Production costs of commercials, programming and other marketing activities are charged to the marketing fund when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. Total contributions and other marketing expenses are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of earnings. In 2018 and 2017, advertising and promotions were $8.9 million and $12.0 million, respectively. |
Effect of new accounting pronouncements adopted n fiscal 2018 | Effect of new accounting pronouncements adopted in fiscal 2018 — 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. As such, we adopted this standard in the first quarter of fiscal 2018. Upon the adoption of the standard we prospectively reclassified excess tax benefits from share-based compensation arrangements of $0.8 million as a discrete item within income tax expense on the condensed consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the condensed consolidated balance sheet. This also impacted the related classification on our condensed consolidated statements of cash flows as excess tax benefits from share-based compensation arrangements is only reported in cash flows from operating activities on a prospective basis, rather than as previously reported in cash flows from operating activities and cash flows used in financing activities. Upon adoption of the standard we also began reporting cash paid to a taxing authority on an employee’s behalf when we directly withhold equivalent shares for taxes as cash flows used in financing activities with the related tax withholding classified as a change in accounts and other receivables in cash flows from operating activities on our condensed consolidated statements of cash flows. We retrospectively applied this new reporting of tax payments for equity award issuances on our condensed consolidated statements of cash flows. The standard also impacted our earnings per share calculation on a prospective basis as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. Lastly, the Company elected to account for forfeitures as they occur, and a cumulative-effect adjustment was made in the amount of $0.2 million and recorded in retained earnings as of October 2, 2017 on the condensed consolidated balance sheet. 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 (“ASC”). The amendments include differences between original FASB guidance and the ASC, guidance clarification and reference corrections, simplifications and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018. This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures. 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 in 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. In January 2018, the FASB issued ASU No.2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which affects the guidance in ASU 2016-02. The standard permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The effective date and transition requirements are the same as ASU 2016-02. 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 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 (Topic 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 February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The standard provides clarification about the term “in substance nonfinancial asset” and guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets. The standard is required to be adopted retrospectively, in conjunction with ASU 2014-09. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires the presentation of the service cost component of net benefit cost to be in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net benefit cost should be presented separately from the service cost component and outside of a subtotal of earnings from operations, or separately disclosed. The standard is effective for annual and interim periods beginning after December 15, 2017 and must be adopted retrospectively. Early adoption is permitted as of the beginning of an annual period, but we plan to adopt this standard in the first quarter of fiscal 2019. Upon adoption of this standard, we will separately present the components of net periodic benefit cost, excluding the service cost component, outside of earnings from operations. Net periodic benefit cost, excluding the service cost component, was $0.1 million and $0.6 million in 2018 and 2017, respectively. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This standard provides guidance that clarifies when changes to the terms or conditions of a share-based payment award require the application of modification accounting under ASC 718. This new guidance will allow for certain changes to be made to awards without accounting for them as modifications. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The standard is required to be applied prospectively to awards modified on or after the adoption date. We will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to 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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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) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The following table summarizes the Qdoba results for each period (in thousands, except per share data):
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Quarterly Financial Information | The following is a summary of the unaudited quarterly results of Qdoba operations for fiscal 2017 (in thousands, except per share data):
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Disclosure of Long Lived Assets Held-for-sale | The following table summarizes the major categories of assets and liabilities classified as held for sale in our condensed consolidated balance sheets as of the end of each period (in thousands):
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Schedule of Current and Non-current Liabilities Held-for-Sale | Our liability for Qdoba lease commitments is included in current liabilities held for sale as of January 21, 2018 and is included in current and non-current liabilities held for sale as of October 1, 2017 in the accompanying condensed consolidated balance sheets and has changed as follows in 2018 (in thousands):
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Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2018 (in thousands):
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Summary Of Refranchisings, Franchisee Development And Acquisitions (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
____________________________
|
Fair Value Measurements (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
____________________________
|
Derivative Instruments (Tables) |
4 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Impairment and other charges | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | Restructuring costs — Restructuring charges in 2018 and 2017 include costs resulting from a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions and refranchising initiatives. Restructuring charges in 2018 also include costs related to the evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which resulted in the Board of Director’s approval to sell Qdoba. Refer to Note 2, Discounted Operations, for additional information regarding the Qdoba Sale. The following is a summary of our restructuring costs (in thousands):
____________________________
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Schedule of Restructuring Reserve by Type of Cost | Our liability for Qdoba lease commitments is included in current liabilities held for sale as of January 21, 2018 and is included in current and non-current liabilities held for sale as of October 1, 2017 in the accompanying condensed consolidated balance sheets and has changed as follows in 2018 (in thousands):
____________________________
Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2018 (in thousands):
____________________________
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Impairment, Disposition, Closing Costs, and Restructuring | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment and other charges | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | Costs of closed restaurants and other — Costs of closed restaurants in 2018 and 2017 include future lease commitment charges and expected ancillary cost, net of anticipated sublease rentals. Costs in 2018 also include $0.5 million of additional impairment charges resulting from changes in market value from three previously closed restaurants. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, changed as follows during 2018 (in thousands):
|
Income Taxes (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following is a summary of the components of each tax rate (in thousands):
____________________________
|
Retirement Plans (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [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, 2017, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2018 contributions are as follows (in thousands):
|
Share-Based Compensation (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2018, 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):
|
Average Shares Outstanding (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Supplemental Consolidated Cash Flow Information (Tables) |
4 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. 21, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Supplemental Consolidated Balance Sheet Information |
|
Basis Of Presentation (Details) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 21, 2018
USD ($)
segment
restaurant
|
Jan. 22, 2017
USD ($)
restaurant
|
|
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 2,250 | 2,261 |
Number of reportable segments | segment | 2 | |
Contractual obligation | 5.00% | |
Marketing and advertising expense | $ 8,900 | $ 12,000 |
Excess tax benefits from share-based compensation arrangements | 802 | 3,981 |
Net assets, adjusted balance | 200 | |
Net periodic benefit cost excluding service cost | $ 100 | $ 600 |
Entity Operated Units | ||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 255 | 419 |
Franchised Units | ||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 1,995 | 1,842 |
Discontinued Operations - Narrative (Details) $ in Millions |
Jan. 21, 2018
USD ($)
center
|
Dec. 19, 2017
USD ($)
|
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, including Ddiscontinued operation, deferred tax asset, current | $ 0.5 | |
Discontinued Operations | Discontinued Operation - Distribution Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of distribution centers | center | 1 | |
Discontinued Operations, Disposed of by Sale | Qdoba | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 305.0 |
Discontinued Operations - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 4 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2017 |
Jul. 09, 2017 |
Apr. 16, 2017 |
Jan. 21, 2018 |
Jan. 22, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Basic (in usd per share) | $ (0.02) | $ 0.04 | |||
Diluted (in usd per share) | $ (0.02) | $ 0.04 | |||
Qdoba | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Company restaurant sales | $ 102,000 | $ 107,067 | $ 98,793 | $ 125,770 | $ 128,699 |
Franchise revenues | 4,622 | 4,678 | 4,711 | 5,986 | 6,053 |
Company restaurant costs (excluding depreciation and amortization) | (86,194) | (84,747) | (80,713) | (108,618) | (105,716) |
Franchise costs (excluding depreciation and amortization) | (2,031) | (879) | (910) | (1,408) | (1,173) |
Selling, general and administrative expenses | (8,089) | (8,232) | (7,956) | (12,264) | (12,429) |
Depreciation and amortization expenses | (4,725) | (5,023) | (5,057) | (5,012) | (6,695) |
Impairment and other charges, net | (5,531) | (1,815) | (3,811) | (1,669) | (3,904) |
Interest expense, net | (2,237) | (2,229) | (2,044) | (3,212) | (2,515) |
(Losses) earnings from discontinued operations before income taxes | (2,185) | 8,820 | 3,013 | (427) | 2,320 |
Income taxes | 937 | (3,398) | (1,181) | (205) | (876) |
(Losses) earnings from discontinued operations, net of income taxes | $ (1,248) | $ 5,422 | $ 1,832 | $ (632) | $ 1,444 |
Basic (in usd per share) | $ (0.04) | $ 0.18 | $ 0.06 | $ (0.02) | $ 0.05 |
Diluted (in usd per share) | $ (0.04) | $ 0.18 | $ 0.06 | $ (0.02) | $ 0.05 |
Discontinued Operations - Schedule of Major Assets and Liabilities Classified as Held-for-Sale (Details) - USD ($) $ in Thousands |
Jan. 21, 2018 |
Oct. 01, 2017 |
|||||
---|---|---|---|---|---|---|---|
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||||||
Current assets held for sale | $ 332,308 | $ 42,732 | |||||
Qdoba | |||||||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||||||
Cash | 3,942 | 3,175 | |||||
Accounts receivable, net | 8,529 | 9,086 | |||||
Inventories | 3,168 | 3,202 | |||||
Prepaid expenses and other current assets | 5,144 | 8,802 | |||||
Property and equipment, net | 161,643 | 148,715 | |||||
Intangible assets, net | 12,517 | 12,660 | |||||
Goodwill | 117,636 | 117,636 | |||||
Other assets, net | 1,735 | 1,785 | |||||
Total assets classified as held for sale | [1] | 314,314 | 305,061 | ||||
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||||||
Accounts payable | 5,903 | 8,936 | |||||
Accrued liabilities | 24,472 | 25,251 | |||||
Current maturities of long-term debt | 175 | 158 | |||||
Straight-line rent accrual | 14,319 | 13,347 | |||||
Deferred income tax liability | [2] | 5,444 | 6,421 | ||||
Other long-term liabilities | 11,208 | 12,310 | |||||
Total liabilities classified as held for sale | 61,521 | 66,423 | |||||
Jack In The Box | |||||||
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||||||
Current assets held for sale | $ 18,000 | $ 18,500 | |||||
|
Discontinued Operations - Schedule of Current and Non-Current Liabilities Held-for-Sale (Details) - USD ($) $ in Thousands |
4 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 21, 2018 |
Oct. 01, 2017 |
||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance as of October 1, 2017 | $ 2,473 | ||||||
Adjustments | [1] | 193 | |||||
Cash payments | (800) | ||||||
Balance as of January 21, 2018 | [2] | 1,866 | |||||
Qdoba [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 3,942 | $ 3,175 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 8,529 | 9,086 | |||||
Disposal Group, Including Discontinued Operation, Inventory | 3,168 | 3,202 | |||||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets, Current | 5,144 | 8,802 | |||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 161,643 | 148,715 | |||||
Disposal Group, Including Discontinued Operation, Intangible Assets | 12,517 | 12,660 | |||||
Disposal Group, Including Discontinued Operation, Goodwill | 117,636 | 117,636 | |||||
Disposal Group, Including Discontinued Operation, Other Assets | $ 1,735 | $ 1,785 | |||||
Weighted Average | 2013 Qdoba Closures | Discontinued Operations | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Weighted average, remaining lease commitment term | 2 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 |
3 Months Ended | 4 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Apr. 15, 2018
USD ($)
|
Jan. 21, 2018
USD ($)
restaurant
|
Jan. 22, 2017
USD ($)
restaurant
|
||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Restaurants sold to franchisees | restaurant | 22 | 0 | ||||||||
New restaurants opened by franchisees | restaurant | 5 | 7 | ||||||||
Initial franchise fees | $ 995 | $ 290 | ||||||||
Proceeds from Divestiture of Businesses | [1] | 5,591 | 138 | |||||||
Proceeds from the sale of company-operated restaurants: | 1,200 | 100 | ||||||||
Proceeds from Sale and Collection of Receivables | [2] | 9,084 | 0 | |||||||
Net assets sold (primarily property and equipment) | (3,637) | 0 | ||||||||
Goodwill related to the sale of company-operated restaurants | (153) | (1) | ||||||||
Other | [3] | (1,945) | 0 | |||||||
Gains on the sale of company-operated restaurants | $ 8,940 | $ 137 | ||||||||
Number of restaurants | restaurant | 2,250 | 2,261 | ||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Number of restaurants | 50 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Equipment | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Number of restaurants | restaurant | 10 | |||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Equipment | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Assets held for sale and leaseback | $ 800 | |||||||||
Forecast | Minimum | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Proceeds from sale of franchisees | $ 2,000 | |||||||||
Forecast | Maximum | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Proceeds from sale of franchisees | $ 3,000 | |||||||||
Remodel Credit | ||||||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||||||
Other | [3] | $ 1,500 | ||||||||
|
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) $ in Thousands |
4 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jan. 21, 2018
USD ($)
|
Oct. 01, 2017
USD ($)
restaurant
|
||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | $ (48,969) | $ (60,502) | |||||||
Gain (loss) on sale of assets and asset impairment charges | 200 | ||||||||
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | (38,007) | (37,575) | ||||||
Fair Value, Inputs, Level 2 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | (10,962) | (22,927) | ||||||
Fair Value, Inputs, Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1] | 0 | 0 | ||||||
Interest Rate Swaps | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [2] | (10,962) | (22,927) | ||||||
Interest Rate Swaps | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||||||||
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 | Fair Value, Inputs, Level 2 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[2] | (10,962) | (22,927) | ||||||
Interest Rate Swaps | Fair Value, Inputs, Level 3 | |||||||||
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 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [3] | (38,007) | (37,575) | ||||||
Non Qualified Deferred Compensation Plan | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[3] | (38,007) | (37,575) | ||||||
Non Qualified Deferred Compensation Plan | Fair Value, Inputs, Level 2 | |||||||||
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 | Fair Value, Inputs, Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Total liabilities at fair value | [1],[3] | 0 | $ 0 | ||||||
Impairment, Disposition, Closing Costs, and Restructuring | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Gain (loss) on sale of assets and asset impairment charges | $ 500 | ||||||||
Number of restaurants closed | restaurant | 3 | ||||||||
|
Derivative Instruments (Narrative) (Details) |
4 Months Ended | |||
---|---|---|---|---|
Jan. 21, 2018
USD ($)
|
Jan. 22, 2017
USD ($)
|
Jun. 15, 2015
USD ($)
agreements
|
Apr. 14, 2014
USD ($)
agreements
|
|
Derivative [Line Items] | ||||
Interest rate derivatives held | agreements | 11 | 9 | ||
Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 200,000,000 | $ 300,000,000 | ||
Interest rate swaps hedge ineffectiveness | $ 0 | $ 0 | ||
Interest Rate Swap 1 | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 500,000,000 |
Derivative Instruments (Derivative Instruments Outstanding) (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands |
Jan. 21, 2018 |
Oct. 01, 2017 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (10,962) | $ (22,927) |
Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | (2,422) | (4,777) |
Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (8,540) | $ (18,150) |
Derivative Instruments (Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in OCI | $ 10,291 | $ 23,086 |
Loss reclassified from accumulated OCI into net earnings | 1,674 | 2,066 |
Interest Rate Swaps | Derivatives Designated As Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in OCI | 10,291 | 23,086 |
Interest Rate Swaps | Interest Expense, Net | Derivatives Designated As Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss reclassified from accumulated OCI into net earnings | $ 1,674 | $ 2,066 |
Impairment and other charges, net (Details) $ in Thousands |
4 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 21, 2018
USD ($)
restaurant
|
Jan. 22, 2017
USD ($)
|
Oct. 01, 2017
USD ($)
restaurant
|
|||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Costs of closed restaurants and other | $ 1,375 | $ 1,839 | |||||||||||||||||||||
Restructuring Costs | 358 | 183 | |||||||||||||||||||||
Asset Impairment Charges | [1] | 291 | 0 | ||||||||||||||||||||
Losses (gains) on the disposition of property and equipment, net | (183) | (530) | |||||||||||||||||||||
Accelerated depreciation | 50 | 102 | |||||||||||||||||||||
Impairment and other charges, net | 2,257 | 2,654 | |||||||||||||||||||||
Gain (loss) on sale of assets and asset impairment charges | 200 | ||||||||||||||||||||||
Restructuring Reserve | 1,866 | [2] | $ 2,473 | ||||||||||||||||||||
Restructuring Reserve, Accrual Adjustment | [3] | 193 | |||||||||||||||||||||
Restaurant Closing Costs | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Other accrued liabilities | 2,800 | ||||||||||||||||||||||
Qdoba Evaluation retention bonus | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Costs | 587 | 0 | |||||||||||||||||||||
Qdoba Evaluation consulting costs | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Costs | [4] | 226 | 0 | ||||||||||||||||||||
Employee severance and related costs | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Costs | [5] | 92 | |||||||||||||||||||||
Restructuring Reserve | 42 | 648 | |||||||||||||||||||||
Restructuring Reserve, Accrual Adjustment | [6] | (456) | |||||||||||||||||||||
Cash payments | (150) | ||||||||||||||||||||||
Other | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Costs | 1 | 91 | |||||||||||||||||||||
Facility Closing | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Reserve | 5,610 | [7],[8] | $ 6,175 | ||||||||||||||||||||
Additions | 135 | ||||||||||||||||||||||
Restructuring Reserve, Accrual Adjustment | [9] | 347 | |||||||||||||||||||||
Cash payments | (1,592) | ||||||||||||||||||||||
Facility Closing | Interest Expense | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Restructuring Reserve, Accrual Adjustment | $ 545 | ||||||||||||||||||||||
Jack in the box brand restaurant operations | Accelerated depreciation | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Number of restaurants | restaurant | 2 | ||||||||||||||||||||||
Weighted Average | Facility Closing | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Remaining Lease Commitment Term | 4 | ||||||||||||||||||||||
Continuing Operations [Member] | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Losses (gains) on the disposition of property and equipment, net | $ 183 | $ 530 | |||||||||||||||||||||
Impairment, Disposition, Closing Costs, and Restructuring | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||
Gain (loss) on sale of assets and asset impairment charges | $ 500 | ||||||||||||||||||||||
Number of restaurants closed | restaurant | 3 | ||||||||||||||||||||||
|
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
4 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
Sep. 29, 2019 |
Sep. 30, 2018 |
|||
Income Tax Contingency [Line Items] | ||||||
Statutory income tax rate, percent | 28.60% | 38.60% | ||||
Tax Cuts and Jobs Act of 2017, income tax expense (benefit) | $ 30,627 | $ 0 | ||||
Income tax expense (benefit), continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 30,700 | |||||
Effective tax rates | [1] | 78.50% | 38.70% | |||
Forecast | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory income tax rate, percent | 21.00% | 24.50% | ||||
Qdoba | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, income tax expense (benefit) | $ 2,300 | |||||
|
Income Taxes (Details) - USD ($) $ in Thousands |
4 Months Ended | |||
---|---|---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
|||
Income Tax Disclosure [Abstract] | ||||
Income tax expense at statutory rate, amount | $ 17,192 | $ 21,740 | ||
Income tax expense at statutory rate | 28.60% | 38.60% | ||
Tax Cuts and Jobs Act of 2017, Income Tax Expense (Benefit) | $ 30,627 | $ 0 | ||
One-time, non-cash impact of the Tax Act, percent | 51.00% | 0.00% | ||
Stock compensation excess tax benefit, amount | $ (802) | $ 0 | ||
Stock compensation excess tax benefit, percent | (1.30%) | 0.00% | ||
Other, amount | $ 121 | $ 91 | ||
Other, percent | 0.20% | 0.20% | ||
Effective income tax rate, amount | $ 47,138 | $ 21,831 | ||
Effective income tax rates, percent | [1] | 78.50% | 38.70% | |
|
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
4 Months Ended | ||||
---|---|---|---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 6,879 | $ 6,996 | |||
Service cost | 687 | 673 | |||
Expected return on plan assets | (8,680) | (8,659) | |||
Actuarial loss | [1] | 1,498 | 1,881 | ||
Amortization of unrecognized prior service cost | [1] | 45 | 47 | ||
Net periodic benefit cost | 429 | 938 | |||
Postretirement Healthcare Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 294 | 309 | |||
Actuarial loss | [1] | (8) | 50 | ||
Net periodic benefit cost | $ 286 | $ 359 | |||
|
Retirement Plans (Schedule Of Future Cash Flows) (Details) - USD ($) |
4 Months Ended | ||
---|---|---|---|
Jan. 21, 2018 |
Sep. 30, 2018 |
Jan. 01, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required contribution for retirement plans | $ 0 | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net year-to-date contributions | $ 1,100,000 | ||
Postretirement Healthcare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net year-to-date contributions | $ 610,000 | ||
Forecast | SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Remaining estimated net contributions during fiscal 2018 | $ 3,300,000 | ||
Forecast | Postretirement Healthcare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Remaining estimated net contributions during fiscal 2018 | $ 700,000 |
Share-Based Compensation (Schedule Of Share-Based Awards Granted) (Details) |
4 Months Ended |
---|---|
Jan. 21, 2018
shares
| |
Nonvested stock units | |
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 | 43,459 |
Performance share awards | |
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 | 22,040 |
Share-Based Compensation (Components Of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 2,937 | $ 3,687 |
Nonvested stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 1,778 | 2,069 |
Performance share awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 663 | 790 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 482 | 801 |
Nonvested stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 14 | $ 27 |
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
4 Months Ended | |
---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
|
Equity, Class of Treasury Stock [Line Items] | ||
Cash dividends declared per common share | $ 0.40 | $ 0.40 |
Dividends, common stock | $ 11.8 | |
Expiration: November 2018 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of common stock, remaining authorized amount | $ 181.0 |
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. 21, 2018 |
Jan. 22, 2017 |
|
Average Shares Outstanding [Line Items] | ||
Weighted-average shares outstanding – basic | 29,551 | 32,168 |
Weighted-average shares outstanding - diluted | 29,853 | 32,442 |
Excluded from diluted weighted-average shares outstanding, Antidilutive | 90 | 44 |
Excluded from Diluted Weighted-Average Shares, Performance Conditions Not Satisfied | 74 | 79 |
Nonvested stock awards and units | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 229 | 181 |
Stock options | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 64 | 76 |
Performance share awards | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 9 | 17 |
Supplemental Consolidated Cash Flow Information (Additional Information Related To Cash Flows) (Details) - USD ($) $ in Thousands |
4 Months Ended | |
---|---|---|
Jan. 21, 2018 |
Jan. 22, 2017 |
|
Supplemental Cash Flow Information [Abstract] | ||
Interest, net of amounts capitalized | $ 12,632 | $ 9,691 |
Income tax payments | 1,344 | 47 |
Decrease in obligations for purchases of property and equipment | 4,201 | 2,841 |
Decrease in obligations for treasury stock repurchases | 0 | 7,208 |
Increase in notes receivable from the sale of company-operated restaurants | 9,084 | 0 |
Franchise Tenant Improvement Allowances | 5,325 | 0 |
Increase in dividends accrued or converted to common stock equivalents | 78 | 74 |
Decrease in capital lease obligations from the termination of equipment and building leases | 685 | 87 |
Equipment capital lease obligations incurred | $ 39 | $ 59 |
Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jan. 21, 2018 |
Oct. 01, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Trade | $ 31,688 | $ 55,108 |
Notes receivable | 766 | 988 |
Other | 5,020 | 5,672 |
Allowance for doubtful accounts | (1,171) | (2,159) |
Receivables, Net, Current | 36,303 | 59,609 |
Prepaid income taxes | 4,190 | 16,928 |
Prepaid rent | 4,761 | 0 |
Other | 7,472 | 10,604 |
Prepaid Expense, Current | 16,423 | 27,532 |
Company-owned life insurance policies | 109,791 | 110,057 |
Deferred tax assets | 67,033 | 105,117 |
Deferred rent receivable | 47,345 | 46,962 |
Other | 19,725 | 15,434 |
Other assets, net | 243,894 | 277,570 |
Insurance | 37,095 | 39,011 |
Payroll and related taxes | 24,390 | 23,361 |
Advertising | 11,047 | 18,493 |
Deferred rent income | 5,681 | 18,961 |
Sales and property taxes | 3,242 | 7,275 |
Gift card liability | 2,516 | 2,237 |
Deferred franchise fees | 425 | 450 |
Other | 18,470 | 25,266 |
Accrued liabilities | 102,866 | 135,054 |
Defined benefit pension plans | 104,798 | 107,011 |
Straight-line rent accrual | 33,047 | 33,749 |
Other | 97,549 | 108,065 |
Other Liabilities, Noncurrent | $ 235,394 | $ 248,825 |
Subsequent Events (Details) $ / shares in Units, $ in Millions |
4 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 19, 2018
$ / shares
|
Jan. 21, 2018
restaurant
$ / shares
|
Jan. 22, 2017
restaurant
$ / shares
|
Apr. 15, 2018
USD ($)
|
|
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share | $ / shares | $ 0.40 | $ 0.40 | ||
Number of Restaurants | restaurant | 2,250 | 2,261 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share | $ / shares | $ 0.40 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of Restaurants | 50 | |||
Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ | $ 25.0 | |||
Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ | $ 27.0 |
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