Jack In The Box 2005 Annual Report Download - page 55

JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(continued)
2. QDOBA ACQUISITION
On January 21, 2003, we acquired 100% of the outstanding stock of Qdoba, operator and franchisor of Qdoba Mexican
Grill®, for approximately $45,000 in cash. Qdoba’ s results of operations have been included since the date of acquisition.
Had the acquisition been completed as of the beginning of fiscal year 2003, we would have reported the following pro
forma amounts:
2003
Total revenues ............................................................................................................................................. $ 2,066,398
Net earnings…............................................................................................................................................ 69,563
Net earnings per share – basic .................................................................................................................... $ 1.91
Net earnings per share – diluted ................................................................................................................. $ 1.88
The pro forma results include interest expense on our credit facility, which was used to finance the acquisition. The pro
forma amounts are not necessarily indicative of the results that would have resulted had the acquisition occurred at the
beginning of the periods presented; nor is it necessarily indicative of anticipated future results.
3. INTANGIBLE ASSETS
Intangible assets consist of the following as of October 2, 2005 and October 3, 2004:
2005 2004
Amortized intangible assets:
Gross carrying amount ..................................................................................................
.
$ 60,181 $ 60,550
Less accumulated amortization .....................................................................................
.
(46,888) (46,085)
Net carrying amount .....................................................................................................
.
$ 13,293 $ 14,465
Unamortized intangible assets:
Goodwill .......................................................................................................................
.
$ 92,187 $ 90,218
Trademark .....................................................................................................................
.
8,800 8,800
$ 100,987 $ 99,018
Amortized intangible assets include lease acquisition costs and acquired franchise contracts. The weighted-average life of
the amortized intangible assets is approximately 26 years. Total amortization expense related to intangible assets was
$1,173, $1,260 and $1,321 in fiscal years 2005, 2004 and 2003, respectively. The estimated amortization expense for each
year from fiscal year 2006 through 2010 is $1,007, $940, $825, $761 and $749, respectively.
There were no changes to goodwill during fiscal year 2004. The changes in the carrying amount of goodwill during fiscal
year 2005 were as follows:
JACK IN THE BOX Qdoba Total
Balance at October 3, 2004 ............................................................ $ 66,601 $ 23,617 $ 90,218
Goodwill acquired .......................................................................... 1,267 702 1,969
Balance at October 2, 2005 ............................................................ $ 67,868 $ 24,319 $ 92,187
During fiscal year 2005, aggregate goodwill of $1,969 was recorded in connection with the acquisition of one
JACK IN THE BOX franchised restaurant and three Qdoba franchised restaurants.
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