Jack In The Box 2013 Annual Report Download - page 29

In fiscal 2014, capital expenditures are expected to be approximately $80-$90 million. We plan to open approximately 3 new Jack in the Box and 30-35 new
Qdoba company-operated restaurants in 2014.
Sale of Company-Operated Restaurants — We have continued to expand franchise ownership in the Jack in the Box system primarily through the sale
of company-operated restaurants to franchisees. The following table details proceeds received in connection with our refranchising activities ( dollars in
thousands):



Number of restaurants sold to franchisees
81
97
332
Cash
$30,619
$47,115
$119,275
Notes receivable
—
1,200
1,000
Total proceeds
$30,619
$48,315
$120,275
Average proceeds
$378
$498
$ 362
Fiscal years 2012 and 2011 include financing provided to facilitate the closing of certain transactions. As of September 29, 2013, notes receivable related to
refranchisings were $1.2 million. We expect total proceeds from the sale of Jack in the Box restaurants in 2014 to be minimal based on the number of
remaining markets for sale.
Assets Held for Sale and Leaseback — We use sale and leaseback financing to lower the initial cash investment in our Jack in the Box restaurants to the
cost of the equipment, whenever possible. The following table summarizes the cash flow activity related to sale and leaseback transactions in each year
(dollars in thousands):



Number of restaurants sold and leased back
24
15
15
Proceeds from sale and leaseback transactions
$47,431
$27,844
$28,536
Purchases of assets intended for sale and leaseback
(26,058)
(35,927)
(31,798)
As of September 29, 2013, we had investments of approximately $11.6 million in 7 operating or under-construction restaurant properties that we expect to
sell and lease back during fiscal 2014.
Acquisition of Franchise-Operated Restaurants — In each year, we acquired Qdoba franchise restaurants in select markets where we believe there is
continued opportunity for restaurant development. Additionally, in 2013 we exercised our right of first refusal and acquired one Jack in the Box restaurant.
The following table details franchise-operated restaurant acquisition activity ( dollars in thousands):



Number of restaurants acquired from franchisees
14
46
32
Cash used to acquire franchise-operated restaurants
$12,064
$48,945
$31,077
The purchase prices were primarily allocated to property and equipment, goodwill and reacquired franchise rights. For additional information, refer to Note
3, Summary of Refranchisings, Franchisee Development and Acquisitions , of the notes to the consolidated financial statements.
Franchise Finance, LLC(“FFE” Loans to Franchisees — During fiscal 2012 and 2011, FFE processed loans to qualifying franchisees of $4.0
million and $14.5 million, respectively, for use in re-imaging their restaurants. These loans have terms ranging from five to seven years and bear a fixed or
variable rate of interest. For additional information related to FFE, refer to Note 15, Variable Interest Entities, of the notes to the consolidated financial
statements.
. Cash used in financing activities increased $105.6 million in 2013 and decreased $29.5 million in 2012 as compared with the
previous year. The increase in 2013 is primarily attributed to an increase in cash used to repurchase shares of our common stock and the change in our book
overdraft related to the timing of working capital receipts and disbursements. The decrease in 2012 is primarily attributable to a decrease in cash used to
repurchase share of common stock, partially offset by a decrease in borrowings under our credit facility.
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