Jack In The Box 2013 Annual Report Download - page 17

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ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The following table sets forth information regarding our operating Jack in the Box and Qdoba restaurant properties as of September 29, 2013:




Company-owned restaurant buildings:
On company-owned land
36
188
224
On leased land
152
489
641
Subtotal
188
677
865
Company-leased restaurant buildings on leased land
573
912
1,485
Franchise directly-owned or directly-leased restaurant buildings
—
516
516
Total restaurant buildings
761
2,105
2,866
Our restaurant leases generally provide for fixed rental payments (with cost-of-living index adjustments) plus real estate taxes, insurance and other expenses.
In addition, approximately 15% of our leases provide for contingent rental payments between 1% and 15% of the restaurant’s gross sales once certain
thresholds are met. We have generally been able to renew our restaurant leases as they expire at then-current market rates. The remaining terms of ground leases
range from approximately one year to 55 years, including optional renewal periods. The remaining lease terms of our other leases range from approximately
one year to 44 years, including optional renewal periods. At September 29, 2013, our restaurant leases had initial terms expiring as follows:







2014 – 2018
195
603
2019 – 2023
253
634
2024 – 2028
137
126
2029 and later
56
122
Our principal executive offices are located in San Diego, California in an owned facility of approximately 150,000 square feet. We also own our 70,000
square foot Jack in the Box Innovation Center and approximately four acres of undeveloped land directly adjacent to it. Qdoba’s corporate support center is
located in a leased facility in Wheat Ridge, Colorado. Historically, we also leased six distribution centers. In connection with the outsourcing of our distribution
business completed in the first quarter of fiscal 2013, two of these centers were closed and the remaining four were subleased or assigned to our third-party
distributor.
ITEM 3. LEGAL PROCEEDINGS
See Note 16, Commitments, Contingencies and Legal Matters , of the notes to the consolidated financial statements for a discussion of our legal
proceedings.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
15