Jack In The Box 2009 Annual Report Download - page 56

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Table of Contents


 
As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 5 to 20 years exercisable at our
option. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our
leases also have rent escalation clauses and require the payment of property taxes, insurance and maintenance costs. We also lease certain
restaurant, office and warehouse equipment, as well as various transportation equipment. Minimum rental obligations are accounted for
on a straight-line basis over the term of the initial lease.
The components of rent expense were as follows in each fiscal year (in thousands):
  
Minimum rentals $ 208,091 $199,903 $ 194,889
Contingent rentals 2,954 3,444 3,942
Total rent expense 211,045 203,347 198,831
Less sublease rentals (61,529) (50,004) (42,308)
Net rent expense $149,516 $ 153,343 $156,523
Future minimum lease payments under capital and operating leases are as follows (in thousands):
 
  
2010 $ 2,293 $ 203,673
2011 2,137 195,614
2012 1,847 186,272
2013 1,583 174,274
2014 1,430 165,429
Thereafter 5,896 925,230
Total minimum lease payments 15,186 $1,850,492
Less amount representing interest, 9.97% weighted average interest rate (4,939)
Present value of obligations under capital leases 10,247
Less current portion (1,314)
Long-term capital lease obligations $ 8,933
Total future minimum lease payments have not been reduced by minimum sublease rents of $1,459.9 million expected to be
recovered under our operating subleases.
Assets recorded under capital leases are included in property and equipment and consisted of the following at each year-end (in
thousands):
 
Buildings $ 22,733 $ 23,049
Equipment 499 16,556
23,232 39,605
Less accumulated amortization (15,048) (30,204)
$ 8,184 $ 9,401
Amortization of assets under capital leases is included in depreciation and amortization expense.
F-17