Jack In The Box 2007 Annual Report Download - page 65

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Future cash payments — Scheduled principal payments on our long-term debt for each of the next five fiscal
years are as follows (in thousands):
Fiscal Year
2008 ............................................................... $ 5,787
2009 ............................................................... 2,390
2010 ............................................................... 48,169
2011 ............................................................... 66,605
2012 ............................................................... 232,679
Total principal payments................................................. $355,630
Capitalized interest — We capitalize interest in connection with the construction of our restaurants and other
facilities. Interest capitalized in 2007, 2006 and 2005 was $1.4 million, $1.4 million and $1.1 million, respectively.
4. LEASES
As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 5 to 20 years
exercisable at our option. In some instances, our leases have provisions for contingent rentals based upon a
percentage of defined revenues. Many of our leases also have rent escalation clauses and require the payment of
property taxes, insurance and maintenance costs. We also lease certain restaurant, office and warehouse equipment,
as well as various transportation equipment. Minimum rental obligations are accounted for on a straight-line basis
over the term of the initial lease.
The components of rent expense were as follows in each fiscal year (in thousands):
2007 2006 2005
Minimum rentals ................................... $194,889 $191,772 $184,277
Contingent rentals .................................. 3,942 3,765 3,157
Total rent expense .................................. 198,831 195,537 187,434
Less sublease rentals ................................ (41,147) (33,202) (26,087)
Net rent expense ................................... $157,684 $162,335 $161,347
Future minimum lease payments under capital and operating leases are as follows (in thousands):
Fiscal Year
Capital
Leases
Operating
Leases
2008 ..................................................... $ 7,040 $ 188,191
2009 ..................................................... 3,420 178,141
2010 ..................................................... 2,284 163,494
2011 ..................................................... 2,120 155,025
2012 ..................................................... 1,821 145,049
Thereafter ................................................. 8,585 983,513
Total minimum lease payments .................................. 25,270 $1,813,413
Less amount representing interest, 8.74% weighted average interest rate . . . (7,217)
Present value of obligations under capital leases ..................... 18,053
Less current portion .......................................... (5,620)
Long-term capital lease obligations ............................... $12,433
F-15
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)