Jack In The Box 2008 Annual Report Download - page 77

The components of accumulated other comprehensive loss, net of taxes, were as follows as of September 28,
2008 and September 30, 2007 (in thousands):
2008 2007
Unrecognized periodic benefit costs, net of taxes of ($10,520) and ($15,148),
respectively ............................................... $(16,970) $(24,249)
Net unrealized losses related to cash flow hedges, net of taxes of ($1,782)
and ($556), respectively ...................................... (2,875) (891)
Accumulated other comprehensive loss ............................. $(19,845) $(25,140)
11. AVERAGE SHARES OUTSTANDING
Our basic earnings per share calculation is computed based on the weighted-average number of common
shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number
of common shares outstanding adjusted by the number of additional shares that would have been outstanding had
the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options,
nonvested stock awards, non-management director stock equivalents and shares issuable under our employee stock
purchase plan. Performance-vested stock awards are included in the average diluted shares outstanding each period
if the performance criteria have been met at the end of the respective periods.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares
outstanding (in thousands):
2008 2007 2006
Weighted-average shares outstanding — basic ................... 58,249 65,314 69,888
Assumed additional shares issued upon exercise of stock options, net
of shares reacquired at the average market price ............... 879 1,533 1,814
Assumed vesting of nonvested stock, net of shares reacquired at the
average market price ................................... 248 270 132
Performance-vested stock awards issuable . . . ................... 69 146 —
Weighted-average shares outstanding — diluted ................. 59,445 67,263 71,834
Stock options excluded(1) .................................. 1,611 557 674
Performance-vested awards excluded(2) ....................... 261 378 434
(1) Excluded from diluted weighted-average shares outstanding because their exercise prices, unamortized
compensation and tax benefits exceeded the average market price of common stock for the period.
(2) Excluded from diluted weighted-average shares outstanding because the number of shares issued is contingent
on achievement of performance goals at the end of a three-year performance period.
12. COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS
Commitments — We are principally liable for lease obligations on various properties subleased to third parties.
We are also obligated under a lease guarantee agreement associated with a Chi-Chi’s restaurant property. Due to the
bankruptcy of the Chi-Chi’s restaurant chain, previously owned by us, we are obligated to perform in accordance
with the terms of a guarantee agreement, as well as four other lease agreements, which expire at various dates in
2010 and 2011. During fiscal 2003, we established an accrual for these lease obligations and do not anticipate
incurring any additional charges in future years related to Chi-Chi’s bankruptcy.
F-31
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)