Jack In The Box 2015 Annual Report Download - page 78

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


Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share
calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have
been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options, nonvested stock awards
and units, non-management director stock equivalents and shares issuable under our ESPP. Performance share awards are included in the average diluted
shares outstanding each period if the performance criteria have been met at the end of the respective periods.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):



Weighted-average shares outstanding — basic
37,587
40,781
43,351
Effect of potentially dilutive securities:
Stock options
274
641
957
Nonvested stock awards and units
199
281
371
Performance share awards
155
270
220
Weighted-average shares outstanding — diluted
38,215
41,973
44,899
Excluded from diluted weighted-average shares outstanding:
Antidilutive
84
153
145
Performance conditions not satisfied at the end of the period
15
20
209

In January 2011, we formed Jack in the Box Franchise Finance, LLC (“FFE”) for the purpose of operating a franchisee lending program to assist Jack in the
Box franchisees in re-imaging their restaurants. We are the sole equity investor in FFE. The lending program was comprised of a $20.0 million commitment
from the Company in the form of a capital note and an $80.0 million Senior Secured Revolving Securitization Facility (“FFE Facility”) entered into with a
third party. The lending period and the revolving period expired in June 2012. At September 27, 2015 and September 28, 2014, we had no borrowings under
the FFE Facility and do not plan to make any further contributions.
We determined that FFE is a VIE and that the Company is its primary beneficiary. We considered a variety of factors in identifying the primary beneficiary of
FFE including, but not limited to, who holds the power to direct matters that most significantly impact FFE’s economic performance (such as determining the
underwriting standards and credit management policies), as well as what party has the obligation to absorb the losses of FFE. Based on these considerations,
we determined that the Company is the primary beneficiary and the entity is reflected in the accompanying consolidated financial statements.
F-32