Jack In The Box 2011 Annual Report Download - page 33

Table of Contents
The FFE Facility is a 12-month revolving loan and security agreement bearing a variable interest rate. As of October 2, 2011, FFE has borrowed $1.2 million
against this facility. For additional information related to FFE, refer to Note 7, Indebtedness and Note 15, Variable Interest Entities, of the notes to the
consolidated financial statements.
Interest Rate Swaps — To reduce our exposure to rising interest rates under our credit facility, we consider interest rate swaps. In August 2010, we entered
into two forward looking swaps that will effectively convert $100.0 million of our variable rate term loan to a fixed-rate basis beginning September 2011
through September 2014. Based on the term loan’s applicable margin of 2.50% as of October 2, 2011, these agreements would have an average pay rate of
1.54%, yielding a fixed rate of 4.04%. Previously, we held two interest rate swaps that effectively converted $200.0 million of our variable rate term loan
borrowings to a fixed-rate basis from March 2007 to April 1, 2010. For additional information related to our interest rate swaps, refer to Note 6, Derivative
Instruments, of the notes to the consolidated financial statements.
Repurchases of Common Stock — In November 2010, the Board of Directors approved a program to repurchase up to $100.0 million in shares of our
common stock expiring November 2011. In May 2011, the Board of Directors approved an additional program to repurchase up to $100.0 million in shares of
our common stock expiring November 2012. During fiscal 2011 and 2010, we repurchased 9.1 million and 4.9 million shares at an aggregate cost of $193.1
million and $97.0 million, respectively. The aggregate remaining amount authorized for repurchase as of October 2, 2011 of $6.4 million was used in October
2011 to repurchase 0.3 million shares of our common stock. In November 2011, the Board of Directors approved a new program to repurchase, within the
next two years, up to $100.0 million in shares of our common stock.
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We are not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial
condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.
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The following is a summary of our contractual obligations and commercial commitments as of October 2, 2011 ( in thousands):
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   
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Credit facility term loan (1) $ 199,192 $ 24,927 $ 52,183 $ 122,082 $ -
Revolving credit facility (1) 305,060 8,016 14,028 283,016 -
FFE revolving credit facility (1) 600 600 - - -
Capital lease obligations 10,727 1,812 2,988 2,537 3,390
Operating lease obligations 1,823,442 208,562 415,409 371,781 827,690
Purchase commitments (2) 206,634 111,136 80,456 15,042 -
Benefit obligations (3) 56,067 7,134 9,774 9,876 29,283
Total contractual obligations $ 2,601,722 $ 362,187 $ 574,838 $ 804,334 $ 860,363
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Stand-by letters of credit (4) $ 35,816 $ 35,816 $ - $ - $ -
(1) Includes interest expense estimated at interest rates in effect on October 2, 2011.
(2) Includes purchase commitments for food, beverage, packaging items and certain utilities.
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