Jack In The Box 2006 Annual Report Download - page 65

JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
F-15
5. LEASES (continued)
Future minimum lease payments under capital and operating leases are as follows:
Fiscal Capital Operating
year leases leases
2007.................................................................................................................................. $ 7,267 $ 178,595
2008.................................................................................................................................. 6,894 167,484
2009.................................................................................................................................. 3,274 154,405
2010.................................................................................................................................. 2,265 139,860
2011.................................................................................................................................. 2,133 129,561
Thereafter ......................................................................................................................... 10,269 895,071
Total minimum lease payments........................................................................................ 32,102 $ 1,664,976
Less amount representing interest, 8.19% average interest rate ....................................... (8,927)
Present value of obligations under capital leases ............................................................. 23,175
Less current portion.......................................................................................................... (5,466)
Long-term capital lease obligations.................................................................................. $ 17,709
Future minimum sublease rents of $706,295 are 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:
2006 2005
Buildings .......................................................................................................................... $ 23,165 $ 23,072
Equipment ........................................................................................................................ 19,783 18,289
42,948 41,361
Less accumulated amortization ........................................................................................ (24,104) (19,255)
$ 18,844 $ 22,106
Amortization of assets under capital leases is included in depreciation and amortization expense.
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 $58,775, $46,753 and $40,899, including contingent rentals of $11,698, $10,280 and $10,290, in 2006, 2005
and 2004, respectively.
The minimum rents receivable expected to be received under these non-cancelable leases, excluding contingent
rentals, are as follows:
Fiscal
Year
Direct
financing
leases
Operating
leases
2007.................................................................................................................................. $ 343 $ 52,553
2008.................................................................................................................................. 343 50,168
2009.................................................................................................................................. 343 47,251
2010.................................................................................................................................. 343 44,746
2011.................................................................................................................................. 343 44,512
Thereafter ......................................................................................................................... 3,856 505,154
Total minimum future rentals........................................................................................... 5,571 $ 744,384
Less amount representing unearned income..................................................................... (5,207)
Net investment (included in other assets)......................................................................... $ 364
Assets held for lease consisted of the following at each year end:
2006 2005
Land..................................................................................................................................
.
$ 25,981 $ 24,293
Buildings ..........................................................................................................................
.
131,810 98,551
Equipment ........................................................................................................................
.
3,109 2,018
160,900 124,862
Less accumulated amortization ........................................................................................
.
(70,554) (50,416)
$ 90,346 $ 74,446