Jack In The Box 2012 Annual Report Download - page 28

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Capital Expenditures — The composition of capital expenditures in each year follows ( in thousands):



Jack in the Box:
New restaurants
$12,984
$13,248
$20,867
Restaurant facility improvements
32,961
73,758
50,724
Other, including corporate
10,634
18,070
10,447
$56,579
$105,076
$82,038
Qdoba:
New restaurants
$17,437
$18,384
$9,755
Other, including corporate
6,184
5,852
3,817
$23,621
$24,236
$13,572
Consolidated capital expenditures
$80,200
$129,312
$95,610
Our capital expenditure program includes, among other things, investments in new locations, restaurant remodeling, new equipment and information
technology enhancements. In 2012, capital expenditures decreased $49.1 million due primarily to a decline in spending related to our Jack in the Box re-image
and new logo program which was substantially completed in 2011 as well as lower spending for capital maintenance activities and corporate technology. In
2011, capital expenditures increased $33.7 million compared with 2010 due primarily to higher spending associated with our Jack in the Box restaurant re-
image and new logo program, an increase in the number of new Qdoba restaurants developed, an increase in the number of Jack in the Box restaurants rebuilt
and the implementation of a new supply-chain system. These increases were partially offset by a reduction in spending related to a decrease in the number of
new Jack in the Box restaurants developed.
In fiscal 2013, capital expenditures are expected to be approximately $95-$105 million. We plan to open approximately 10 new Jack in the Box and 40-45
new Qdoba company-operated restaurants in 2013.
Sale of Company-Operated Restaurants — We have continued to expand franchise ownership in the Jack in the Box system primarily through the sale
of company-operated restaurants to franchisees. The following table details proceeds received in connection with our refranchising activities (dollars in
thousands):



Number of restaurants sold to franchisees
97
332
219
Cash
$47,115
$119,275
$66,152
Notes receivable
1,200
1,000
25,809
Total proceeds
$48,315
$120,275
$91,961
Average proceeds
$498
$ 362
$420
All fiscal years presented include financing provided to facilitate the closing of certain transactions. As of September 30, 2012, notes receivable related to
refranchisings were $3.9 million. We expect total proceeds from the sale of Jack in the Box restaurants in 2013 to be minimal based on the number of
remaining markets for sale.
Assets Held for Sale and Leaseback — We use sale and leaseback financing to lower the initial cash investment in our Jack in the Box restaurants to the
cost of the equipment, whenever possible. The following table summarizes the cash flow activity related to sale and leaseback transactions in each year
(dollars in thousands):



Number of restaurants sold and leased back
15
15
46
Proceeds from sale and leaseback transactions
$27,844
$28,536
$85,591
Purchases of assets intended for sale and leaseback
(35,927)
(31,798)
(40,243)
Net cash flows related to assets held for sale and leaseback
$(8,083)
$(3,262)
$45,348
As of September 30, 2012, we had investments of $45.4 million in approximately 25 operating and under-construction restaurant properties that we expect
to sell and lease back during fiscal 2013.
29