Jack In The Box 2013 Annual Report Download - page 57

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
The following table summarizes, as of September 29, 2013, the estimated amortization expense for each of the next five fiscal years ( in thousands):

2014 $855
2015 $798
2016 $ 754
2017 $706
2018 $661

Financial assets and liabilities — The following table presents the financial assets and liabilities measured at fair value on a recurring basis ( in thousands):


















Non-qualified deferred compensation plan (1)
$(39,135)
$(39,135)
$ —
$ —
Interest rate swaps (Note 6) (2)
(1,190)
—
(1,190)
—
Total liabilities at fair value
$(40,325)
$(39,135)
$(1,190)
$ —

Non-qualified deferred compensation plan (1)
$(37,523)
$(37,523)
$ —
$ —
Interest rate swaps (Note 6) (2)
(2,433)
—
(2,433)
—
Total liabilities at fair value
$(39,956)
$(37,523)
$(2,433)
$ —
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(1) We maintain an unfunded defined contribution plan for key executives and other members of management excluded from participation in our qualified savings plan. The fair
value of this obligation is based on the closing market prices of the participants’ elected investments.
(2) We entered into interest rate swaps to reduce our exposure to rising interest rates on our variable debt. The fair values of our interest rate swaps are based upon Level 2
inputs which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield
curves.
(3) We did not have any transfers in or out of Level 1 or Level 2.
The fair values of the Company’s debt instruments are based on the amount of future cash flows associated with each instrument discounted using the
Company’s borrowing rate. At September 29, 2013, the carrying value of all financial instruments was not materially different from fair value, as the
borrowings are prepayable without penalty. The estimated fair values of our capital lease obligations approximated their carrying values as of September 29,
2013.
Non-financial assets and liabilities — The Company’s non-financial instruments, which primarily consist of property and equipment, goodwill and
intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on a periodic basis (at least
annually for goodwill and intangible assets and semi-annually for property and equipment) or whenever events or changes in circumstances indicate that their
carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value.
The following table presents property and equipment long-lived assets measured at fair value on a non-recurring basis during fiscal year 2013 ( in thousands):




Long-lived assets held and used
$705
$3,874
Long-lived assets held for sale
$401
5,356
Long-lived assets held and used consist primarily of Jack in the Box restaurants determined to be underperforming or which we intend to close. Long-lived
assets held for sale primarily relate to restaurants refranchised during the year for less than their carrying value. To determine fair value, we used the income
approach, which assumes that the future cash flows reflect current market expectations. The future cash flows are generally based on the assumption that the
highest and best use of the asset is to sell the store to a franchisee (market participant). These fair value measurements require significant judgment using Level
3 inputs,
F-15