Jack In The Box 2009 Annual Report Download - page 54
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Table of Contents
We are also exposed to the impact of utility price fluctuations related to unpredictable factors such as weather and various other
market conditions outside our control. Our ability to recover increased costs through higher prices is limited by the competitive
environment in which we operate. Therefore, from time to time, we enter into futures and option contracts to manage these fluctuations.
These contracts have not been designated as hedging instruments under the FASB authoritative guidance for derivatives and hedging.
Financial position — The following derivative instruments were outstanding as of the end of each period (in thousands):
Derivatives designated hedging instruments:
Interest rate swaps (Note 5) Accrued liabilities $4,615 Accrued liabilities $4,657
Derivatives not designated hedging instruments:
Natural gas contracts Accrued liabilities — Accrued liabilities 840
Total derivatives $4,615 $5,497
Financial performance — The following is a summary of the gains or losses recognized on our derivative instruments (in
thousands):
Derivatives in cash flow hedging relationship:
Interest rate swaps (Note 13) $42 $(3,210) $(2,055)
Derivatives not designated hedging instruments:
Natural gas contracts Restaurant operating costs $(544) $ (840) $ —
During 2009 and 2008, our interest rate swaps had no hedge ineffectiveness and no gains or losses were reclassified into net
earnings.
F-15