Jack In The Box 2015 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2015 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 89

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89



Covenants — We are subject to a number of customary covenants under our credit facility, including limitations on additional borrowings, acquisitions,
loans to franchisees, lease commitments, stock repurchases and dividend payments, and requirements to maintain certain financial ratios as defined in the
credit agreement.
Future cash payments — Scheduled principal payments on our long-term debt outstanding at September 27, 2015 for each of the next five fiscal years and
thereafter are as follows (in thousands):
2016
$ 26,677
2017
26,216
2018
29,482
2019
623,078
2020
2,237
Thereafter
7,566
$ 715,256
We may make voluntary prepayments of the loans under the revolving credit agreement and term loan at any time without premium or penalty. Specific
events such as asset sales, certain issuances of debt, and insurance and condemnation recoveries, may trigger a mandatory prepayment.

As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 5 to 20 years exercisable at our option. In some instances, our
leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our leases also have rent escalation clauses and require
the payment of property taxes, insurance and maintenance costs. We also lease certain restaurant and office equipment. Minimum rental obligations are
accounted for on a straight-line basis over the term of the initial lease, plus lease option terms for certain locations.
The components of rent expense were as follows in each fiscal year (in thousands):



Minimum rentals
$ 212,722
$ 213,082
$ 210,638
Contingent rentals
2,549
1,986
1,840
Total rent expense
215,271
215,068
212,478
Less rental expense on subleased properties
(141,946)
(139,976)
(136,970)
Net rent expense
$ 73,325
$ 75,092
$ 75,508
The following table presents as of September 27, 2015, future minimum lease payments under capital and operating leases, including leases recorded as lease
obligations relating to continuing and discontinued operations (in thousands):





2016
$ 4,040
$ 246,636
2017
3,355
210,994
2018
2,518
177,768
2019
2,647
168,564
2020
2,522
141,470
Thereafter
7,852
552,858
Total minimum lease payments
22,934
$ 1,498,290
Less amount representing interest, 3.9% weighted average interest rate
(2,678)
Present value of obligations under capital leases
20,256
Less current portion
(3,240)
Long-term capital lease obligations
$ 17,016
Total future minimum lease payments of approximately $1.0 billion included in the table above are expected to be recovered under our non-cancelable
operating subleases.
F-18