Jack In The Box 2010 Annual Report Download - page 55

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Table of Contents


prices is limited by the competitive environment in which we operate. Therefore, from time to time, we enter into futures and option
contracts to manage these fluctuations. These contracts have not been designated as hedging instruments under the FASB
authoritative guidance for derivatives and hedging.
Financial position — The following derivative instruments were outstanding as of the end of each period 
 
 
   
   
Derivatives designated hedging instruments:
Interest rate swaps (Note 5)
Accrued
liabilities
$ 733
Accrued
liabilities
$ 4,615
Total derivatives $ 733 $ 4,615
Financial performance — The following is a summary of the gains or losses recognized on our derivative instruments 



  
Derivatives in cash flow hedging relationship:
Interest rate swaps (Note 13) $ 3,882 $ 42 $ (3,210)
 
 
   
Derivatives not designated hedging instruments:
Natural gas contracts
Occupancy
and other
$ -
$ (544)
$ (840)
Approximately $4.7 million, $6.2 million, and $2.0 million was reclassified from accumulated other comprehensive income (loss)
to interest expense during fiscal years 2010, 2009, and 2008, respectively. These amounts represent payments made to the
counterparty for the effective portions of the interest rate swaps that were recognized in accumulated other comprehensive income
(loss) and reclassified into earnings as an increase to interest expense for the periods presented. During 2010, 2009 and 2008, our
interest rate swaps had no hedge ineffectiveness and no gains or losses were reclassified into net earnings.
 
The detail of long-term debt at each year-end is as follows :
 
Revolver, variable interest rate based on an applicable margin plus LIBOR, 2.79% at October 3, 2010 $ 160,000 $ -
Term loan, variable interest rate based on an applicable margin plus LIBOR, 2.80% at October 3, 2010 197,500 415,000
Capital lease obligations, 10.14% weighted average interest rate 8,911 10,247
366,411 425,247
Less current portion (13,781) (67,977)
$ 352,630 $ 357,270
New Credit Facility — On June 29, 2010, the Company replaced its existing credit facility with a new credit facility intended to
provide a more flexible capital structure. The new credit facility is comprised of (i) a
F-15