Jack In The Box 2014 Annual Report Download - page 34

nine interest rate swaps would yield average fixed rates of 2.59%, 3.13%, 3.80% and 4.28% in years one through four, respectively. For additional
information related to our interest rate swaps, refer to Note 6, Derivative Instruments, of the notes to the consolidated financial statements.
Repurchases of Common Stock — In November 2012 and August 2013, the Board approved two programs, each of which provided repurchase
authorizations for up to $100.0 million in shares of our common stock, expiring November 2014 and November 2015, respectively. These authorizations
were fully utilized in fiscal 2014. Additionally, in February 2014 and July 2014, the Board of Directors approved two new programs which provided
repurchase authorizations for up to $200.0 million and $100.0 million, respectively, in shares of our common stock, expiring November 2015. During fiscal
2014, we repurchased 5.6 million shares at an aggregate cost of $319.7 million. As of September 28, 2014, there was $117.1 million remaining under the
February and July 2014 authorizations. Repurchases of common stock included in our consolidated statements of cash flows for 2014 include $7.3 million
related to repurchase transactions traded in 2013 and settled in 2014, and exclude $3.1 million related to repurchase transactions traded in 2014 and settled
in 2015. During fiscal 2013 and 2012, we repurchased 4.0 million and 1.2 million shares at an aggregate cost of $140.1 million and $29.5 million,
respectively.
Dividends — The Company did not pay any cash dividends on its common stock during 2013 and 2012. On May 9, 2014, the Board of Directors approved
the initiation of a regular quarterly cash dividend. Two quarterly cash dividend payments of $0.20 per share were declared totaling $15.9 million in 2014. On
November 13, 2014, the Board of Directors declared a cash dividend of $0.20 per share, to be paid on December 12, 2014 to shareholders of record as of the
close of business on December 1, 2014. Future dividends will be subject to approval by our Board of Directors.

We are not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial
condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

The following is a summary of our contractual obligations and commercial commitments as of September 28, 2014 (in thousands):








Credit facility term loan (1)
$ 212,907
$ 13,691
$ 52,216
$ 147,000
$ —
Revolving credit facility (1)
336,774
6,479
19,436
310,859
—
Capital lease obligations
5,639
1,260
2,270
1,157
952
Operating lease obligations
1,612,432
229,203
430,371
316,288
636,570
Purchase commitments (2)
2,796,200
733,000
922,200
404,400
736,600
Benefit obligations (3)
66,143
9,056
11,637
12,227
33,223
Unrecognized tax benefits
374
374
—
—
—
Total contractual obligations
$ 5,030,469
$ 993,063
$ 1,438,130
$ 1,191,931
$ 1,407,345
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Stand-by letters of credit (4)
$ 22,183
$ 22,183
$ —
$ —
$ —
____________________________
(1) Includes interest expense estimated at interest rates in effect on September 28, 2014.
(2) Includes purchase commitments for food, beverage, and packaging items.
(3) Includes expected payments associated with our non-qualified defined benefit plan, postretirement benefit plans and our non-qualified deferred compensation plan through
fiscal 2024.
(4) Consists primarily of letters of credit for workers’ compensation and general liability insurance.
We maintain a noncontributory defined benefit pension plan (“Qualified Plan”) covering substantially all full-time employees hired before January 1,
2011. Our policy is to fund our Qualified Plan at amounts necessary to satisfy the minimum amount required by law, plus additional amounts as determined
by management to improve the plan’s funded status. Contributions beyond fiscal 2014 will depend on pension asset performance, future interest rates, future
tax law changes, and future changes in regulatory funding requirements. Based on the funding status of our Qualified Plan as of our last measurement date,
there was no minimum contribution required. For additional information related to our pension plans, refer to Note 11, Retirement Plans, of the notes to the
consolidated financial statements.
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