Jack In The Box 2010 Annual Report Download - page 16

Table of Contents
warehouses and handle various petroleum substances and hazardous substances, and we are not aware of any current material liability
related thereto.
 The Company has a $600 million credit facility, which is comprised of a $400 million revolving credit
facility and a $200 million term loan. Increased leverage resulting from borrowings under the credit facility could have certain material
adverse effects on the Company, including but not limited to the following: (i) our ability to obtain additional financing in the future for
acquisitions, working capital, capital expenditures and general corporate or other purposes could be impaired, or any such financing may
not be available on terms favorable to us; (ii) a substantial portion of our cash flows could be required for debt service and, as a result,
might not be available for our operations or other purposes; (iii) any substantial decrease in net operating cash flows or any substantial
increase in expenses could make it difficult for us to meet our debt service requirements or force us to modify our operations or sell assets;
(iv) our ability to withstand competitive pressures may be decreased; and (v) our level of indebtedness may make us more vulnerable to
economic downturns and reduce our flexibility in responding to changing business, regulatory and economic conditions. Our ability to
repay expected borrowings under our credit facility and to meet our other debt or contractual obligations (including compliance with
applicable financial covenants) will depend upon our future performance and our cash flows from operations, both of which are subject
to prevailing economic conditions and financial, business and other known and unknown risks and uncertainties, certain of which are
beyond our control.
 Many factors affect the trading price of our stock, including factors over which we have no control, such
as reports on the economy or the price of commodities, as well as negative or positive announcements by competitors, regardless of
whether the report relates directly to our business. In addition to investor expectations about our prospects, trading activity in our stock
can reflect the portfolio strategies and investment allocation changes of institutional holders and non-operating initiatives such as a share
repurchase program. Any failure to meet market expectations whether for sales, growth rates, refranchising goals, earnings per share or
other metrics could cause our share price to drop.
  Changes in accounting standards, policies or related interpretations by
auditors or regulatory entities may negatively impact our results. Many accounting standards require management to make subjective
assumptions and estimates, such as those required for stock compensation, tax matters, pension costs, litigation, insurance accruals and
asset impairment calculations. Changes in those underlying assumptions and estimates could significantly change our results.
 Like any public company, we are subject to a wide variety of legal claims by employees, consumers, franchisees,
shareholders and others including potential class action claims. The costs associated with the defense, settlement and/or potential
judgments related to such claims could adversely affect our results.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The following table sets forth information regarding our Jack in the Box and Qdoba restaurant properties as of October 3, 2010:
  
Company-owned restaurant buildings:
On company-owned land 101 131 232
On leased land 500 330 830
Subtotal 601 461 1,062
Company-leased restaurant buildings on leased land 543 637 1,180
Franchise directly-owned or directly-leased restaurant buildings - 489 489
Total restaurant buildings 1,144 1,587 2,731
Our leases generally provide for fixed rental payments (with cost-of-living index adjustments) plus real estate
15