Jack In The Box 2015 Annual Report Download - page 32
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Losses from discontinued operations net of tax, are as follows for each discontinued operation in each fiscal year (in thousands):
Distribution business
$ (430)
$ (790)
$ (3,974)
2013 Qdoba Closures
(3,359)
(5,104)
(27,482)
$ (3,789)
$ (5,894)
$ (31,456)
These losses from discontinued operations reduced diluted earnings per share by the following in each fiscal year (amounts may not add due to rounding):
Distribution business
$ (0.01)
$ (0.02)
$ (0.09)
2013 Qdoba Closures
(0.09)
(0.12)
(0.61)
$ (0.10)
$ (0.14)
$ (0.70)
Our primary sources of short-term and long-term liquidity are expected to be cash flows from operations and our revolving bank credit facility.
We generally reinvest available cash flows from operations to develop new restaurants or enhance existing restaurants, to reduce debt, to repurchase shares
of our common stock and to pay cash dividends. Our cash requirements consist principally of:
• working capital;
• capital expenditures for new restaurant construction and restaurant renovations;
• income tax payments;
• debt service requirements; and
• obligations related to our benefit plans.
Based upon current levels of operations and anticipated growth, we expect that cash flows from operations, combined with other financing alternatives in
place or available, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and
the foreseeable future.
As is common in the restaurant industry, we maintain relatively low levels of accounts receivable and inventories, and our vendors grant trade credit for
purchases such as food and supplies. We also continually invest in our business through the addition of new units and refurbishment of existing units, which
are reflected as long-term assets and not as part of working capital. As a result, we may at times maintain current liabilities in excess of current assets, which
results in a working capital deficit.
The table below summarizes our cash flows from operating, investing and financing activities for each of the past three fiscal years (in thousands):
Total cash provided by (used in):
Operating activities
$ 226,875
$ 201,022
$ 198,872
Investing activities
(84,473)
(42,979)
(33,939)
Financing activities
(135,208)
(157,116)
(163,762)
Effect of exchange rate changes
(29)
7
4
Increase in cash and cash equivalents
$ 7,165
$ 934
$ 1,175
. Operating cash flows increased $25.9 million in 2015 compared with 2014 due primarily to an increase in net earnings in fiscal
2015 and a reduction in prepaid income taxes of $20.3 million, offset by an income tax refund of $20.5 million received in the fourth quarter of 2014 as a
result of a fixed asset cost segregation study.
In 2014, operating cash flows increased $2.2 million compared with 2013 due primarily to the tax benefits realized as a result of the fixed asset cost
segregation study which resulted in an income tax refund and a decrease in income tax payments. These decreases in cash flows were partially offset by an
increase in property rent payments due to timing differences associated with payments for the month of October.
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