Jack In The Box 2010 Annual Report Download - page 52

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Table of Contents


Effect of new accounting pronouncements — In December 2008, the FASB issued authoritative guidance which expands the
disclosure requirements about fair value measurements of plan assets for pension plans. We adopted with guidance in the fourth
quarter of fiscal 2010. The additional disclosures are included in Note 11, .
Subsequent events — The Company has evaluated subsequent events through the time of filing this Form 10-K with the SEC,
and determined there were no other items to disclose.
 
In 2009, we completed the sale of all 61 of our Quick Stuff convenience stores, which included a major-branded fuel station
developed adjacent to a full-size Jack in the Box restaurant. We received cash proceeds of $34.4 million and recorded a loss on
disposition of $24.3 million, or $15.0 million net of taxes, included in earnings (losses) from discontinued operations, net in the
accompanying consolidated statement of earnings for fiscal 2009. The loss on disposition includes an impairment charge of
$22.4 million related to building assets retained by us and leased to the buyers as part of the sale agreements. The net assets sold
totaled approximately $25.7 million and consisted primarily of property and equipment of $24.8 million.
Revenue and operating income from discontinued operations for fiscal 2009 (through the date of sale) and 2008 were as follows 
):
 
Revenue $ 272,202 $ 461,888
Operating (losses) income (20,439) 1,749
 
Initial franchise fees and refranchisings — The following is a summary of initial franchise fees received and gains recognized
on the sale of restaurants to franchisees ():
  
Number of restaurants sold to franchisees 219 194 109
Number of new restaurants opened by franchisees 37 59 71
Initial franchise fees received $ 10,218 $ 10,538 $ 7,303
Cash proceeds from the sale of company-operated restaurants $ 66,152 $ 94,927 $ 57,117
Notes receivable 25,809 21,575 27,928
Total proceeds 91,961 116,502 85,045
Net assets sold (primarily property and equipment) (35,113) (33,007) (16,864)
Goodwill related to the sale of company-operated restaurants (1,860) (2,482) (1,832)
Gains on the sale of company-operated restaurants $ 54,988 $ 81,013 $ 66,349
In 2009, we recognized a loss of $2.4 million related to the anticipated sale of a lower performing Jack in the Box company-operated
market. This loss was included in gains on the sale of company-operated restaurants, net in the accompanying consolidated
statement of earnings.
Franchise acquisitions — We account for the acquisition of franchise restaurants using the purchase method of accounting for
business combinations. In 2010, we acquired 16 Qdoba restaurants from a franchisee for net consideration of $8.1 million. The
purchase price allocation was based on fair value estimates determined
F-12