Jack In The Box 2007 Annual Report Download - page 66

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Total future minimum lease payments have not been reduced by minimum sublease rents of $841.0 million
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 (in thousands):
2007 2006
Buildings ................................................... $23,112 $ 23,165
Equipment .................................................. 20,247 19,783
43,359 42,948
Less accumulated amortization ................................... (29,431) (24,104)
$ 13,928 $ 18,844
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 $74.4 million, $58.8 million and $46.8 million, including contingent rentals of $13.9 million, $11.7 million and
$10.3 million, in 2007, 2006 and 2005, respectively.
The minimum rents receivable expected to be received under these non-cancelable operating leases, excluding
contingent rentals, are as follows (in thousands):
Fiscal Year
2008 ............................................................... $ 63,268
2009 ............................................................... 60,595
2010 ............................................................... 57,765
2011 ............................................................... 56,250
2012 ............................................................... 54,464
Thereafter ........................................................... 614,837
Total minimum future rentals ............................................. $907,179
Assets held for lease consisted of the following at each year-end (in thousands):
2007 2006
Land ...................................................... $ 29,716 $ 25,981
Buildings .................................................. 160,858 131,810
Equipment ................................................. 4,172 3,109
194,746 160,900
Less accumulated amortization .................................. (89,535) (70,554)
$105,211 $ 90,346
5. RESTAURANT CLOSING, IMPAIRMENT CHARGES AND OTHER
In 2007, we closed five JACK IN THE BOX restaurants and recognized impairment charges of $1.1 million. We
also recorded impairment charges of $0.2 million to write-down the carrying value of one JACK IN THE BOX restaurant
which we continue to operate.
F-16
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)