Jack In The Box 2012 Annual Report Download - page 69

Comprehensive income — Our total comprehensive income, net of taxes, was as follows ( in thousands):
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Net earnings
$57,651
$80,600
$70,210
Cash flow hedges:
Net change in fair value of derivatives
(1,055)
(2,066)
(837)
Net loss reclassified to earnings
1,304
117
4,719
Total
249
(1,949)
3,882
Tax effect
(97)
750
(1,481)
152
(1,199)
2,401
Unrecognized periodic benefit costs:
Actuarial losses arising during the period
(78,619)
(36,862)
(8,426)
Actuarial losses and prior service cost reclassified to earnings
13,532
10,544
12,051
Total
(65,087)
(26,318)
3,625
Tax effect
24,862
10,364
(1,371)
(40,225)
(15,954)
2,254
Total comprehensive income
$17,578
$63,447
$74,865
Accumulated other comprehensive loss — The components of accumulated other comprehensive loss, net of taxes, were as follows as of September 30,
2012 and October 2, 2011 (in thousands):
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Unrecognized periodic benefit costs, net of tax benefits of $83,605 and $58,743, respectively
$(134,513)
$(94,288)
Net unrealized losses related to cash flow hedges, net of tax benefits of $933 and 1,030, respectively
(1,500)
(1,652)
Accumulated other comprehensive loss
$(136,013)
$(95,940)
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Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share
calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have
been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options, nonvested stock awards
and units, non-management director stock equivalents and shares issuable under our ESPP. Performance-vested stock awards are included in the average
diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding ( in thousands):
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Weighted-average shares outstanding — basic
43,999
49,302
55,070
Effect of potentially dilutive securities:
Stock options
462
422
512
Nonvested stock awards and units
270
225
182
Performance-vested stock awards
217
136
79
Weighted-average shares outstanding — diluted
44,948
50,085
55,843
Excluded from diluted weighted-average shares outstanding:
Antidilutive
2,753
3,157
3,266
Performance conditions not satisfied at the end of the period
358
328
160
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In January 2011, we formed Jack in the Box Franchise Finance, LLC (“FFE”) for the purpose of operating a franchisee lending program to assist Jack in the
Box franchisees in re-imaging their restaurants. We are the sole equity investor in FFE. The lending program was comprised of a $20.0 million commitment
from the Company in the form of a capital note and an $80.0 million Senior Secured Revolving Securitization Facility (“FFE Facility”) entered into with a
third party. The lending period and the revolving period expired in June 2012. At September 30, 2012, we had no borrowings under the FFE Facility and do
not plan to make any further contributions.
We determined that FFE is a VIE and that the Company is its primary beneficiary. We considered a variety of factors in identifying
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