Jack In The Box 2010 Annual Report Download - page 17

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Table of Contents
taxes, insurance and other expenses. In addition, less than 20% of the leases provide for contingent rental payments between 1% and
11% of the restaurant’s gross sales once certain thresholds are met. We have generally been able to renew our restaurant leases as they
expire at then-current market rates. The remaining terms of ground leases range from approximately one year to 58 years, including
optional renewal periods. The remaining lease terms of our other leases range from approximately one year to 47 years, including
optional renewal periods. At October 3, 2010, our restaurant leases had initial terms expiring as follows:


 
  
2011 – 2015 157 377
2016 – 2020 176 580
2021 – 2025 176 306
2026 and later 133 105
Our principal executive offices are located in San Diego, California in an owned facility of approximately 150,000 square feet. We also
own our 70,000 square foot Innovation Center and approximately four acres of undeveloped land directly adjacent to it. Qdoba’s corporate
support center is located in a leased facility in Wheat Ridge, Colorado. We also lease seven distribution centers, with remaining terms
ranging from seven to 15 years, including optional renewal periods.
ITEM 3. LEGAL PROCEEDINGS
The Company is subject to normal and routine litigation. In the opinion of management, based in part on the advice of legal counsel,
the ultimate liability from all pending legal proceedings, asserted legal claims and known potential legal claims should not materially
affect our operating results, financial position or liquidity.
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