Jack In The Box 2005 Annual Report Download - page 68

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JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(continued)
11. STOCKHOLDERS’ EQUITY (continued)
The components of accumulated other comprehensive loss, net of taxes, were as follows as of October 2, 2005 and
October 3, 2004:
2005 2004
Additional minimum pension liability adjustment................................................................. $ (29,980) $ (1,254)
Net unrealized gains related to cash flow hedges .................................................................. 417 –
Accumulated other comprehensive loss ................................................................................ $ (29,563) $ (1,254)
12. AVERAGE SHARES OUTSTANDING
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding:
2005 2004 2003
Weighted-average shares outstanding – basic ...................................... 35,625 36,237 36,473
Assumed additional shares issued upon exercise of stock options,
net of shares reacquired at the average market price ..................... 1,158 644
288
Assumed vesting of restricted stock, net of shares reacquired at
the average market price ..............................................................
155
80
207
Weighted-average shares outstanding – diluted ................................... 36,938 36,961 36,968
Stock options excluded (1)..................................................................... – 1,281 3,547
(1) Excluded from diluted weighted-average shares outstanding because their exercise prices exceeded the average market price of common
stock for the period.
13. COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS
Commitments – We are principally liable for lease obligations on various properties sub-leased to third parties. We are also
obligated under a lease guarantee agreement associated with a Chi-Chi’ s restaurant property. Due to the bankruptcy of the
Chi-Chi’ s restaurant chain, previously owned by the Company, we are obligated to perform in accordance with the terms of
a guarantee agreement, as well as four other lease agreements which expire at various dates in 2010 and 2011. During
fiscal year 2003, we established an accrual for these lease obligations and do not anticipate incurring any additional
charges related to the Chi-Chi’ s bankruptcy in future years. As of October 2, 2005, our accrual for the lease guarantee was
$982, and the maximum potential amount of future payments was $1,675.
Legal Proceedings – We are subject to normal and routine litigation. In the opinion of management, based in part on the
advice of legal counsel, the ultimate liability from all pending legal proceedings, asserted legal claims and known potential
legal claims should not materially affect our operating results, financial position and liquidity.
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