Jack In The Box 2011 Annual Report Download - page 61

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Table of Contents


Financial performance — The following is a summary of the gains or (losses) recognized on our derivative instruments (in thousands):


   
Derivatives designated as hedging instruments:
Interest rate swap loss recognized in OCI (Note 13) N/A $ (2,066) $(837) $(6,147)
Interest rate swap loss reclassified from accumulated OCI into income (Note 13)
Interest
expense, net $(117) $ (4,719) $ (6,189)
Derivatives not designated as hedging instruments:
Natural gas contracts
Occupancy
and other $- $- $(544)
Amounts reclassified from accumulated OCI into interest expense 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 2011, 2010 and 2009, our interest rate swaps had no hedge ineffectiveness.
 
The detail of long-term debt at each year-end is as follows (in thousands):
 
Revolver, variable interest rate based on an applicable margin plus LIBOR, 2.92% at October 2, 2011 $ 275,000 $ 160,000
Term loan, variable interest rate based on an applicable margin plus LIBOR, 2.78% at October 2, 2011 185,000 197,500
FFE revolver, variable interest rate based on an applicable margin plus the lender’s cost of funds, 3.20% at October 2, 2011 1,160 -
Capital lease obligations, 9.96% weighted average interest rate at October 2, 2011 7,338 8,911
468,498 366,411
Less current portion (21,148) (13,781)
$ 447,350 $ 352,630
Credit facility — Our credit facility is comprised of (i) a $400.0 million revolving credit facility and (ii) a $200.0 million term loan maturing on
June 29, 2015, initially both with London Interbank Offered Rate (“LIBOR”) plus 2.50 %. As part of the credit agreement, we may also request the
issuance of up to $75.0 million in letters of credit, the outstanding amount of which reduces the net borrowing capacity under the agreement. The credit
facility requires the payment of an annual commitment fee based on the unused portion of the credit facility. The credit facility’s interest rates and the
annual commitment rate are based on a financial leverage ratio, as defined in the credit agreement. At October 2, 2011, we had borrowings under the
revolving credit facility of $275.0 million, $185.0 million outstanding under the term loan and letters of credit outstanding of $35.8 million.
Collateral — The Company’s obligations under the credit facility are secured by first priority liens and security interests in the capital stock,
partnership and membership interests owned by the Company and (or) its subsidiaries, and any proceeds thereof, subject to certain restrictions set forth
in the credit agreement. Additionally, there is a negative pledge on all tangible and intangible assets (including all real and personal property) with
customary exceptions as reflected in the credit agreement.
F-17