Jack In The Box 2011 Annual Report Download - page 57

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Table of Contents


fiscal years beginning after December 15, 2011 with early adoption permitted. We adopted this pronouncement in the fourth quarter of fiscal 2011. The
adoption did not have a material effect on our consolidated financial statements.
 
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 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. During 2009,
revenues and operating losses from discontinued operations were $272.2 million and $20.4 million, respectively.
 
Refranchisings and franchisee development — The following is a summary of the number of Jack in the Box restaurants sold to franchisees, the
number of restaurants developed by franchisees and the related gains and fees recognized ( dollars in thousands):
  
Restaurants sold to franchisees 332 219 194
New restaurants opened by franchisees 58 37 59
Initial franchise fees received $ 15,898 $ 10,218 $ 10,538
Proceeds from the sale of company-operated restaurants:
Cash $ 119,275 $ 66,152 $ 94,927
Notes receivable 1,000 25,809 21,575
120,275 91,961 116,502
Net assets sold (primarily property and equipment) (52,943) (35,113) (33,007)
Goodwill related to the sale of company-operated restaurants (3,469) (1,860) (2,482)
Other (1) (2,738) - (2,371)
Gains on the sale of company-operated restaurants, net $ 61,125 $ 54,988 $ 78,642
(1) In 2011, primarily represents future lease commitments and impairment costs associated with three locations we closed in connection with the sale of the related markets. In 2009, represents 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.
F-13