Jack In The Box 2012 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 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

(1) Includes contingent rentals.
The minimum rents receivable expected to be received under these non-cancelable operating leases and subleases, excluding contingent rentals, as of
September 30, 2012 are as follows (in thousands):

2013 $189,026
2014 187,955
2015 186,332
2016 201,138
2017 184,081
Thereafter 1,715,598
Total minimum future rentals $2,664,130
Assets held for lease and included in property and equipment consisted of the following at each year-end ( in thousands):


Land
$73,831
$63,839
Buildings
643,113
583,168
Equipment
3,455
3,244
720,399
650,251
Less accumulated depreciation
(353,157)
(298,801)
$367,242
$351,450

Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following ( in thousands):



Impairment charges
$3,112
$1,367
$12,970
Losses on disposition of property and equipment, net
6,027
7,561
10,734
Costs of closed restaurants (primarily lease obligations) and other
8,332
3,655
25,160
Restructuring costs
15,461
—
—
$32,932
$12,583
$48,864
Impairment — When events and circumstances indicate that our long-lived assets might be impaired and their carrying amount is greater than the
undiscounted cash flows we expect to generate from such assets, we recognize an impairment loss as the amount by which the carrying value exceeds the fair
value of the assets. Impairment charges in 2012 primarily represent charges to write down the carrying value of underperforming Jack in the Box restaurants
and Jack in the Box restaurants we intend to or have closed. Impairment charges in 2011 and 2010 primarily represent charges to write-down the carrying
value of certain underperforming Jack in the Box restaurants, including in 2010, property and equipment impairment charges of $8.4 million related to the
closure of 40 underperforming Jack in the Box restaurants.
Disposition of property and equipment — We also recognize accelerated depreciation and other costs on the disposition of property and equipment. When
we decide to dispose of a long-lived asset, depreciable lives are adjusted based on the estimated disposal date and accelerated depreciation is recorded. Other
disposal costs primarily relate to gains or losses recognized upon the sale of closed restaurant properties, and charges from our ongoing re-image and logo
program and normal capital maintenance activities.
F-16