Jack In The Box 2012 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2012 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

adjacent to it. Qdoba’s corporate support center is located in a leased facility in Wheat Ridge, Colorado. During fiscal 2012, we also leased six distribution
centers. In connection with the outsourcing of our distribution business, two of these centers have been closed and the remaining four have been subleased or
assigned to our third-party distributor.
ITEM 3. LEGAL PROCEEDINGS
The Company is subject to normal and routine litigation brought by former, current or prospective employees, customers, franchisees, vendors,
landlords, shareholders or others. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual
in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the
amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires
judgments about future events. When evaluating contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the
procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information
important to the matters. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated or unrelated to possible outcomes, and
as such are not meaningful indicators of our potential liability. The Company regularly reviews contingencies to determine the adequacy of the accruals and
related disclosures. The ultimate amount of loss may differ from these estimates. Although the Company currently believes that the ultimate outcome of these
matters will not have a material adverse effect on the results of operations, liquidity or financial position of the Company, it is possible that the results of
operations, liquidity, or financial position of the Company could be materially affected in any particular future reporting period by the unfavorable resolution
of one or more of these matters or contingencies.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
17