Jack In The Box 2009 Annual Report Download - page 27

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Table of Contents
Cash Flows. The table below summarizes our cash flows from operating, investing and financing activities for each of the past
three fiscal years (in thousands).
  
Total cash provided by (used in):
Operating activities:
Continuing operations $ 147,324 $ 167,035 $ 173,757
Discontinued operations 1,426 5,349 4,764
Investing activities:
Continuing operations (71,607) (132,406) (124,379)
Discontinued operations 30,648 (1,964) (5,674)
Financing activities (102,673) (5,832) (266,672)
Increase (decrease) in cash and cash equivalents $ 5,118 $ 32,182 $ (218,204)
Operating Activities. Operating cash flows from continuing operations decreased $19.7 million in 2009 due to a decrease in
earnings from continuing operations adjusted for non-cash items (primarily our provision for deferred income taxes), partially offset by
fluctuations due to the timing of working capital receipts and disbursements. In 2008, cash flows from continuing operations decreased
$6.7 million compared with 2007 primarily due to the timing of working capital receipts and disbursements, including an increase in
pension contributions, partially offset by an increase in earnings from continuing operations adjusted for non-cash items. Operating cash
flows from our discontinued operations were not material to our consolidated statements of cash flows.
Investing Activities. Cash flows used in investing activities from continuing operations decreased $60.8 million compared with a
year ago. This decrease is primarily due to an increase in cash proceeds from the sale of company-operated restaurants to franchisees,
lower spending for purchases of property and equipment and an increase in collections on notes receivable, offset in part by an increase in
spending related to assets held for sale and leaseback and cash used in 2009 to acquire Qdoba franchise-operated restaurants. In 2008,
cash flows used in investing activities increased $8.0 million due to higher capital expenditures offset in part by an increase in proceeds
from the sale of company-operated restaurants to franchisees and the impact of cash used in 2007 to acquire Qdoba restaurants
previously operated by franchisees.
In 2009, cash flows provided by discontinued operations increased $32.6 million compared with a year ago due primarily to
proceeds received in 2009 of $34.4 million related to the sale of our Quick Stuff convenience and fuel stores. In 2008, the decrease in cash
flows used in investing activities relates to a decrease in capital expenditures.
Capital Expenditures. The composition of capital expenditures used in continuing operations in each year follows (in thousands):
  
Jack in the Box:
New restaurants $ 46,078 $ 35,751 $ 39,208
Restaurant facility improvements 69,856 116,670 87,380
Other, including corporate 18,377 10,943 13,036
Qdoba 19,189 15,241 8,884
Total capital expenditures used in continuing operations $153,500 $178,605 $148,508
Our capital expenditure program includes, among other things, investments in new locations, restaurant remodeling, new equipment
and information technology enhancements. In 2009, capital expenditures decreased due to lower spending related to our reimage program
as well as the inclusion of a kitchen enhancement project and the purchase of our smoothie equipment in 2008, which also contributed to
the increased spending in 2008 compared with 2007. The kitchen enhancements were designed to increase restaurant capacity for new
product introductions while also reducing utility expense using energy-efficient equipment. The reimage program, which
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