Jack In The Box 2009 Annual Report Download - page 57

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Table of Contents


As lessor — We lease or sublease restaurants to certain franchisees and others under agreements that generally provide for the
payment of percentage rentals in excess of stipulated minimum rentals, usually for a period of 20 years. Most of our leases have rent
escalation clauses and renewal clauses of 5 to 20 years. Total rental revenue was $105.5 million, $88.6 million and $74.4 million,
including contingent rentals of $13.0 million, $13.8 million and $13.9 million, in 2009, 2008 and 2007, respectively.
The minimum rents receivable expected to be received under these non-cancelable operating leases, excluding contingent rentals, are
as follows (in thousands):

2010 $ 109,792
2011 105,659
2012 102,649
2013 100,216
2014 99,396
Thereafter 1,111,866
Total minimum future rentals $1,629,578
Assets held for lease consisted of the following at each year-end (in thousands):
 
Land $ 36,507 $ 32,837
Buildings 256,858 194,305
Equipment — 3,497
293,365 230,639
Less accumulated depreciation (140,870) (110,793)
$ 152,495 $ 119,846
 
In 2009, we recorded impairment charges of $0.4 million related to the closure of four Jack in the Box restaurants and $5.6 million
and $0.6 million, respectively, to write-down the carrying value of certain Jack in the Box and Qdoba restaurants which we continue to
operate. We also recognized accelerated depreciation and other costs on the disposition of property and equipment of $12.7 million
primarily relating to our restaurant re-image program and normal ongoing capital maintenance activity.
In 2008, we recorded impairment charges of $3.5 million primarily related to the write-down of the carrying value of seven Jack in
the Box restaurants, which we continue to operate. We also recognized accelerated depreciation and other costs on the disposition of
property and equipment of $16.4 million primarily related to our restaurant re-image program, which includes a major renovation of our
restaurant facilities, a kitchen enhancement project and normal ongoing capital maintenance activities.
In 2007, we recorded impairment charges of $1.3 million related to the closure of five Jack in the Box restaurants and the write-down
of the carrying value of one Jack in the Box restaurant, which we continued to operate. We also recognized accelerated depreciation and
other costs on the disposition of property and equipment of $15.9 million primarily relating to our re-image program and capital
maintenance activity.
These impairment charges, accelerated depreciation and other costs on the disposition of property and equipment are included in
selling, general and administrative expenses in the accompanying consolidated statements of earnings.
F-18