Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 15, 2018 | May 11, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Common Stock, Shares Outstanding | 28,438,227 | |
Entity Registrant Name | JACK IN THE BOX INC /NEW/ | |
Entity Central Index Key | 807,882 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 15, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 15, 2018 | Oct. 01, 2017 |
Current assets: | ||
Cash | $ 1,154 | $ 4,467 |
Accounts and other receivables, net | 102,404 | 59,609 |
Inventories | 2,559 | 3,445 |
Prepaid expenses | 11,947 | 27,532 |
Current assets held for sale | 23,495 | 42,732 |
Other current assets | 3,582 | 1,493 |
Total current assets | 145,141 | 139,278 |
Property, Plant and Equipment [Abstract] | ||
Property and equipment, at cost | 1,224,738 | 1,262,117 |
Less accumulated depreciation and amortization | (781,389) | (777,841) |
Property and equipment, net | 443,349 | 484,276 |
Other Assets [Abstract] | ||
Intangible assets, net | 710 | 1,413 |
Goodwill | 47,414 | 51,412 |
Non-current assets held for sale | 0 | 280,796 |
Other assets, net | 238,424 | 277,570 |
Total other assets | 286,548 | 611,191 |
Total assets | 875,038 | 1,234,745 |
Current liabilities: | ||
Current maturities of long-term debt | 42,854 | 64,225 |
Accounts payable | 24,500 | 28,366 |
Accrued liabilities | 100,181 | 135,054 |
Current liabilities held for sale | 0 | 34,345 |
Total current liabilities | 167,535 | 261,990 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 900,402 | 1,079,982 |
Non-current liabilities held for sale | 0 | 32,078 |
Other long-term liabilities | 238,011 | 248,825 |
Total long-term liabilities | 1,138,413 | 1,360,885 |
Stockholders’ (deficit) equity: | ||
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | 0 | 0 |
Common stock $0.01 par value, 175,000,000 shares authorized, 81,945,792 and 81,843,483 issued, respectively | 819 | 818 |
Capital in excess of par value | 459,821 | 453,432 |
Retained earnings | 1,521,934 | 1,485,820 |
Accumulated other comprehensive loss | (123,045) | (137,761) |
Treasury stock, at cost, 53,522,782 and 52,411,407 shares, respectively | (2,290,439) | (2,190,439) |
Total stockholders’ deficit | (430,910) | (388,130) |
Total liabilities and stockholders' equity | $ 875,038 | $ 1,234,745 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 15, 2018 | Oct. 01, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 81,945,792 | 81,843,483 |
Treasury stock at cost, shares | 53,522,782 | 52,411,407 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | ||
Revenues: | |||||
Company restaurant sales | $ 113,938 | $ 180,275 | $ 283,575 | $ 418,846 | |
Franchise rental revenues | 57,843 | 51,295 | 135,060 | 122,731 | |
Franchise royalties and other | 37,991 | 34,314 | 85,600 | 77,488 | |
Revenues | 209,772 | 265,884 | 504,235 | 619,065 | |
Company restaurant costs (excluding depreciation and amortization): | |||||
Food and packaging | 32,638 | 52,042 | 81,502 | 120,031 | |
Payroll and employee benefits | 33,096 | 54,529 | 82,036 | 124,712 | |
Occupancy and other | 18,143 | 30,704 | 45,893 | 69,645 | |
Total company restaurant costs | 83,877 | 137,275 | 209,431 | 314,388 | |
Franchise occupancy expenses (excluding depreciation and amortization) | 36,065 | 31,543 | 82,586 | 73,733 | |
Franchise support and other costs | 2,583 | 1,734 | 5,065 | 4,271 | |
Selling, general and administrative expenses | 27,017 | 25,862 | 61,642 | 66,634 | |
Depreciation and amortization | 13,955 | 16,122 | 33,112 | 37,385 | |
Impairment and other charges, net | 4,927 | 1,367 | 7,184 | 4,021 | |
Gains on the sale of company-operated restaurants | (5,472) | (7,779) | (14,412) | (7,916) | |
Total operating costs and expenses | 162,952 | 206,124 | 384,608 | 492,516 | |
Earnings from operations | 46,820 | 59,760 | 119,627 | 126,549 | |
Interest expense, net | 10,413 | 9,037 | 23,193 | 19,446 | |
Earnings from continuing operations and before income taxes | 36,407 | 50,723 | 96,434 | 107,103 | |
Income taxes | 11,426 | 19,333 | 58,564 | 41,164 | |
Earnings from continuing operations | 24,981 | 31,390 | 37,870 | 65,939 | |
Earnings from discontinued operations, net of taxes | 22,624 | 1,704 | 21,925 | 3,084 | |
Net earnings | $ 47,605 | $ 33,094 | $ 59,795 | $ 69,023 | |
Net earnings per share - basic: | |||||
Earnings from continuing operations | $ 0.86 | $ 1.02 | $ 1.29 | $ 2.09 | |
Earnings from discontinued operations | 0.78 | 0.06 | 0.75 | 0.10 | |
Net earnings per share | [1] | 1.64 | 1.07 | 2.04 | 2.18 |
Net earnings per share - diluted: | |||||
Earnings from continuing operations | 0.85 | 1.01 | 1.27 | 2.07 | |
Earnings from discontinued operations | 0.77 | 0.05 | 0.74 | 0.10 | |
Net earnings per share | [1] | $ 1.62 | $ 1.06 | $ 2.01 | $ 2.16 |
Weighted-average shares outstanding: | |||||
Basic (in shares) | 29,040 | 30,895 | 29,332 | 31,622 | |
Diluted (in shares) | 29,356 | 31,126 | 29,705 | 31,883 | |
Cash dividends declared per common share | $ 0.4 | $ 0.40 | $ 0.80 | $ 0.80 | |
[1] | (1)Earnings per share may not add due to rounding. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 47,605 | $ 33,094 | $ 59,795 | $ 69,023 |
Net change in fair value of derivatives | 4,295 | (3,981) | 14,586 | 19,105 |
Net loss reclassified to earnings | 876 | 1,219 | 2,550 | 3,285 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 5,171 | (2,762) | 17,136 | 22,390 |
Tax effect | (1,313) | 1,069 | (4,352) | (8,663) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 3,858 | (1,693) | 12,784 | 13,727 |
Actuarial losses and prior service costs reclassified to earnings | 1,151 | 1,483 | 2,686 | 3,461 |
Tax effect | (292) | (574) | (834) | (1,339) |
Unrecognized periodic benefit costs | 859 | 909 | 1,852 | 2,122 |
Foreign currency translation adjustments | 6 | 0 | 6 | 0 |
Tax effect | 2 | 0 | 2 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 4 | 0 | 4 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 76 | 0 | 76 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 80 | 0 | 80 | 0 |
Other comprehensive income (loss), net of tax | 4,797 | (784) | 14,716 | 15,849 |
Comprehensive income | $ 52,402 | $ 32,310 | $ 74,511 | $ 84,872 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | ||
Cash flows from operating activities: | |||
Net earnings | $ 59,795 | $ 69,023 | |
Earnings from discontinued operations | 21,925 | 3,084 | |
Income from continuing operations | 37,870 | 65,939 | |
Depreciation and amortization | 33,112 | 37,385 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Amortization of franchise tenant improvement allowances | 265 | 48 | |
Deferred finance cost amortization | 1,725 | 1,919 | |
Excess tax benefits from share-based compensation arrangements | (800) | (4,034) | |
Deferred income taxes | 34,726 | 2,428 | |
Share-based compensation expense | 6,148 | 6,270 | |
Pension and postretirement expense | 1,252 | 2,269 | |
Gains on cash surrender value of company-owned life insurance | (312) | (73) | |
Gains on the sale of company-operated restaurants | (14,412) | (7,916) | |
Losses on the disposition of property and equipment, net | (481) | (957) | |
Impairment charges and other | 1,502 | 745 | |
Changes in assets and liabilities, excluding dispositions: | |||
Accounts and other receivables | (13,876) | 30,666 | |
Inventories | 886 | 528 | |
Prepaid expenses and other current assets | (5,458) | 18,560 | |
Accounts payable | (3,742) | (1,637) | |
Accrued liabilities | (35,959) | (30,003) | |
Pension and postretirement contributions | (3,077) | (2,773) | |
Franchise tenant improvement allowance distributions | (3,487) | 0 | |
Other Operating Activities, Cash Flow Statement | (7,551) | (6,111) | |
Cash flows provided by operating activities | 29,277 | 115,167 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (18,347) | (15,596) | |
Purchases of assets intended for sale and leaseback | (5,491) | (1,752) | |
Proceeds from the sale and leaseback of assets | 4,949 | 2,466 | |
Proceeds from the sale of company-operated restaurants | [1] | 16,844 | 31,389 |
Collections on notes receivable | 9,722 | 1,121 | |
Proceeds from the sale of property and equipment | 600 | 2,082 | |
Other | 2,969 | (172) | |
Cash flows (used in) provided by investing activities | 11,246 | 19,538 | |
Cash flows from financing activities: | |||
Borrowings on revolving credit facilities | 283,200 | 534,500 | |
Repayments of borrowings on revolving credit facilities | (199,100) | (305,000) | |
Principal repayments on debt | (282,626) | (28,738) | |
Debt issuance costs | 1,367 | 0 | |
Dividends paid on common stock | (23,370) | (25,462) | |
Proceeds from issuance of common stock | 39 | 4,840 | |
Repurchases of common stock | (100,000) | (322,687) | |
Excess tax benefits from share-based compensation arrangements | 0 | 4,034 | |
Change in book overdraft | 1,397 | 0 | |
Payroll tax payments for equity award issuances | (4,268) | (5,706) | |
Cash flows used in financing activities | (326,095) | (144,219) | |
Cash flows used in continuing operations | (285,572) | (9,514) | |
Net cash provided by operating activities of discontinued operations | 5,503 | 16,692 | |
Net cash provided by (used in) investing activities of discontinued operations | 273,653 | (17,788) | |
Net cash used in financing activities of discontinued operations | (78) | (62) | |
Net cash provided by discontinued operations | 279,078 | (1,158) | |
Cash at beginning of period, including discontinued operations cash | 4,467 | 17,030 | |
Cash at end of period, including discontinued operations cash | 1,154 | 6,358 | |
Effect of Exchange Rate on Cash | $ 6 | $ 0 | |
[1] | (1)Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million, respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Apr. 15, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION Nature of operations — Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box ® quick-service restaurants. The following table summarizes the number of restaurants as of the end of each period: April 15, April 16, Company-operated 188 371 Franchise 2,057 1,889 Total system 2,245 2,260 References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.” Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended October 1, 2017 (“2017 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2017 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2018 , which are described below. On December 19, 2017, we entered into a definitive agreement to sell Qdoba Restaurant Corporation (“Qdoba”), a wholly owned subsidiary of the Company which operates and franchises more than 700 Qdoba Mexican Eats ® fast-casual restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, the “Buyer”) which was completed on March 21, 2018. For all periods presented in our condensed consolidated statements of earnings, all sales, costs, expenses and income taxes attributable to Qdoba, except as related to the impact of the decrease in the federal statutory tax rate (see Note 8, Income Taxes) , have been aggregated under the caption “earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by Qdoba operations have been aggregated in the condensed consolidated statement of cash flows as part of discontinued operations. Prior year results have been recast to conform with the current presentation. Refer to Note 2, Discontinued Operations , for additional information. During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business and the related results of operations for this business are also reported as discontinued operations for all periods presented. Refer to Note 2, Discontinued Operations , for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to condensed consolidated financial statements relate to our continuing operations. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. Segment reporting — As a result of our sale of Qdoba, which has been classified as discontinued operations, we now have one reporting segment. Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated financial statements have been reclassified due to the sale of Qdoba. See Note 2, Discontinued Operations , for further information regarding this sale and the resulting prior year reclassifications. We recorded certain adjustments in 2018 upon the adoption of a new accounting pronouncement; see details regarding the effects of the adoption on our condensed consolidated financial statements below. Further, in 2018 , we began presenting depreciation and amortization as a separate line item on our condensed consolidated statements of earnings to better align with similar presentation made by many of our peers and to provide additional disclosure that is meaningful for our investors. The prior year condensed consolidated statements of earnings were adjusted to conform with this new presentation. Depreciation and amortization were previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net on our condensed consolidated statements of earnings. Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30 . Fiscal years 2018 and 2017 include 52 weeks. Our first quarter includes 16 -weeks and all other quarters include 12 -weeks. All comparisons between 2018 and 2017 refer to the 12-weeks (“quarter”) and 28-weeks (“year-to-date”) ended April 15, 2018 and April 16, 2017 , respectively, unless otherwise indicated. Principles of consolidation — The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of any variable interest entities (“VIEs”) where we are deemed the primary beneficiary. All significant intercompany accounts and transactions are eliminated. The financial results and position of our VIE are immaterial to our condensed consolidated financial statements. Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law, or if in certain cases, the U.S. Treasury is expected to issue further guidance on the application of certain provisions of the U.S. legislation. See Note 8, Income Taxes , for additional details on the provisional tax expense recognized in accordance with SAB 118. Advertising costs — We administer a marketing fund which includes contractual contributions. In 2018 , the marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues, and the Company made incremental contributions to the marketing fund of $1.5 million in the quarter and $1.8 million year-to-date. To the extent contributions exceed marketing fund expenditures, the excess contributions are recorded as a liability in accrued liabilities on our consolidated balance sheet. To the extent expenditures temporarily exceed contributions, the difference is recorded as a receivable of the fund in accounts and other receivable, net on our consolidated balance sheet. The contributions to the marketing fund are designated for sales driving and marketing-related initiatives and advertising, and we act as an agent for the franchisees with regard to these contributions. Therefore, we do not reflect franchisee contributions to the funds in our condensed consolidated statements of earnings. Production costs of commercials, programming and other marketing activities are charged to the marketing fund when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. Total contributions and other marketing expenses are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of earnings. Advertising and promotions for the quarter and year-to-date in 2018 were $7.3 million and $16.1 million , respectively, and in 2017, were $9.1 million and $21.1 million , respectively. Effect of new accounting pronouncements adopted in fiscal 2018 — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard is intended to simplify various aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018 . Due to the adoption of the standard, we prospectively reclassified excess tax benefits from share-based compensation arrangements of $0.8 million year-to-date and an immaterial amount in the quarter, as a discrete item within income tax expense on the condensed consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the condensed consolidated balance sheet. This also impacted the related classification on our condensed consolidated statements of cash flows, as excess tax benefits from share-based compensation arrangements is only reported in cash flows from operating activities on a prospective basis, rather than as previously reported in cash flows from operating activities and cash flows used in financing activities. Upon adoption of the standard, we also began reporting cash paid to a taxing authority on an employee’s behalf when we directly withhold equivalent shares for taxes as cash flows used in financing activities, with the related tax withholding classified as a change in accounts and other receivables in cash flows from operating activities on our condensed consolidated statements of cash flows. We retrospectively applied this new reporting of tax payments for equity award issuances on our condensed consolidated statements of cash flows. The standard also impacted our earnings per share calculation on a prospective basis as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. Lastly, the Company elected to account for forfeitures as they occur, and a cumulative-effect adjustment was made in the amount of $0.2 million and recorded in retained earnings as of October 2, 2017 on the condensed consolidated balance sheet. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements . This standard contains amendments that affect a wide variety of topics in the Accounting Standards Codification (“ASC”). The amendments include differences between original FASB guidance and the ASC, guidance clarification and reference corrections, simplifications, and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018 . This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures. Effect of new accounting pronouncements to be adopted in future periods — In May 2014, the FASB issued ASU 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606) , which provides a comprehensive new revenue recognition model that requires an entity to recognize revenue in an amount that reflects the consideration the entity expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance in ASU 2014-09 when evaluating when another party, along with the entity, is involved in providing a good or service to a customer. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarifies the guidance in ASU 2014-09 regarding assessing whether promises to transfer goods or services are distinct, and whether an entity's promise to grant a license provides a customer with a right to use, or right to access the entity's intellectual property. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606) . This ASU clarifies the guidance in ASU 2014-09, providing technical corrections and improvements to clarify guidance and correct unintended applications of the guidance. All standards are effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. As such, we will be required to adopt these standards in the first quarter of fiscal 2019. These standards are to be applied retrospectively or using a cumulative effect transition method, and early adoption is not permitted. We do not believe the new revenue recognition standard will impact our recognition of restaurant sales, rental revenues or royalty fees from franchisees. However, we are still evaluating the impact that this pronouncement will have on the recognition of certain transactions in our consolidated financial statements, including the initial franchise fees currently recognized upon the opening of a franchise restaurant, and our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, as well as the effect this new standard will have on our disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires a lessee to recognize assets and liabilities on the balance sheet for those leases classified as operating leases under previous guidance. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, we will be required to adopt this standard in the first quarter of fiscal 2020. This standard requires adoption based upon a modified retrospective transition approach, with early adoption permitted. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated balance sheets. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which affects the guidance in ASU 2016-02. The standard permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The effective date and transition requirements are the same as ASU 2016-02. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is to be applied retrospectively or using a cumulative effect transition method as of the date of adoption. We are currently evaluating which transition method to use, but believe the impact this standard will have on our consolidated financial statements and related disclosures will be immaterial upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This standard is intended to address eight classification issues related to the statement of cash flows to reduce diversity in practice in how certain transactions are classified. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard requires adoption based upon a retrospective transition method. We are currently evaluating this standard, but do not believe it will have a material impact on the classification of cash flows within our statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than deferring the recognition until the asset has been sold to an outside party. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. The standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. We are currently evaluating this standard, but do not believe it will have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) : Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . The standard provides clarification about the term “in substance nonfinancial asset” and guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets. The standard is required to be adopted retrospectively, in conjunction with ASU 2014-09. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires the presentation of the service cost component of net benefit cost to be in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net benefit cost should be presented separately from the service cost component and outside of a subtotal of earnings from operations, or separately disclosed. The standard is effective for annual and interim periods beginning after December 15, 2017 and must be adopted retrospectively. Early adoption is permitted as of the beginning of an annual period, but we plan to adopt this standard in the first quarter of fiscal 2019. Upon adoption of this standard, we will separately present the components of net periodic benefit cost, excluding the service cost component, outside of earnings from operations. In 2018 and 2017 , net periodic benefit cost, excluding the service cost component, was approximately $21,000 and $0.5 million during the quarter, respectively, and approximately $49,000 and $1.1 million year-to-date, respectively. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This standard provides guidance that clarifies when changes to the terms or conditions of a share-based payment award require the application of modification accounting under ASC 718. This new guidance will allow for certain changes to be made to awards without accounting for them as modifications. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The standard is required to be applied prospectively to awards modified on or after the adoption date. We will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which amends the previous guidance to allow for certain tax effects “stranded” in accumulated other comprehensive income, which are impacted by the Tax Cuts and Jobs Act (the “Tax Act”), to be reclassified from accumulated other comprehensive income into retained earnings. This amendment pertains only to those items impacted by the new tax law and will not apply to any future tax effects stranded in accumulated other comprehensive income. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We will be required to adopt this standard in the first quarter of fiscal 2020. We are currently evaluating this standard. |
Indebtedness Indebtedness (Note
Indebtedness Indebtedness (Notes) | 6 Months Ended |
Apr. 15, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Line of Credit Facilities [Table Text Block] | 3. INDEBTEDNESS Amended credit facility — On March 21, 2018, we amended our credit facility. The amendment extends the maturity date of both our term loan and revolving credit facility from March 19, 2019 to March 19, 2020. The interest rate range on our credit facility did not change as a result of the amendment and continues to be based on our leverage ratio. This interest rate can range from the London Interbank Offered Rate (“LIBOR”) plus 1.25% to 2.25% with a 0% floor on LIBOR. As a result of the amendment, the interest rate was reset to LIBOR plus 2.00% for the period from the effective date of the amendment to the first calculation date thereafter. As of April 15, 2018 , we had $357.7 million outstanding under the term loan, and $581.1 million outstanding under the $900.0 million revolving credit facility. In addition, letters of credit of $31.4 million were outstanding. Collateral — Under the amendment, we and certain of our subsidiaries reaffirmed our guarantees and the security interests in substantially all of our tangible and intangible property, with certain exceptions (including deposit accounts), to secure our obligations under the credit facility. 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 defined in the credit agreement. The amendment raises the maximum leverage ratio from 4.0 times to 4.5 times, and permits unlimited cash dividends and share repurchases if pro forma leverage is less than 4.0 times, subject also to pro forma fixed charge covenant compliance. Repayments — Our credit facility requires us to make certain mandatory prepayments under certain circumstances and we have the option to make certain prepayments without premium or penalty. The credit facility includes events of default (and related remedies, including acceleration and increased interest rates following an event of default) that are customary for facilities and transactions of this type. Pursuant to the credit facility and amendment, we repaid $260.0 million on the term loan facility upon closing of the Qdoba Sale. Refer to Note 2, Discontinued Operations, for additional information regarding the Qdoba Sale and related prepayment. The payment schedule for the term loan facility was amended to reflect this payment and the extended maturity. The amended term loan facility requires amortization in the form of quarterly installments of $10.7 million from June 2018 through December 2019 with the remainder due at the expiration of the term loan agreement in March 2020 . |
Summary Of Refranchisings, Fran
Summary Of Refranchisings, Franchisee Development And Acquisitions | 6 Months Ended |
Apr. 15, 2018 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Summary Of Refranchisings, Franchisee Development And Acquisitions | SUMMARY OF REFRANCHISINGS AND FRANCHISEE DEVELOPMENT Refranchisings and franchisee development — The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period ( dollars in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Restaurants sold to franchisees 63 60 85 60 New restaurants opened by franchisees 3 6 8 13 Initial franchise fees $ 2,735 $ 2,538 $ 3,730 $ 2,828 Proceeds from the sale of company-operated restaurants: Cash (1) $ 11,253 $ 31,251 $ 16,844 $ 31,389 Short-term notes receivable (2) 22,422 — 31,506 — 33,675 31,251 48,350 31,389 Net assets sold (primarily property and equipment) (9,509 ) (10,306 ) (13,146 ) (10,306 ) Lease commitment charges (3) (863 ) (7,651 ) (863 ) (7,651 ) Goodwill related to the sale of company-operated restaurants (3,807 ) (341 ) (3,960 ) (342 ) Other (4) (14,024 ) (5,174 ) (15,969 ) (5,174 ) Gains on the sale of company-operated restaurants $ 5,472 $ 7,779 $ 14,412 $ 7,916 ____________________________ (1) Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million , respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017 , respectively. (2) We collected payments of $9.1 million related to notes due from franchisees in the first quarter of 2018 . (3) Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income from franchisees. (4) Amounts in 2018 include an $8.8 million reduction of gains related to the modification of certain 2017 refranchising transactions. The quarter and year-to-date amounts in 2018 also include $3.7 million and $5.2 million , respectively, of costs related to franchise remodel incentives. Amounts in 2017 primarily represent impairment of $3.1 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets. As of the end of the second 2018 quarter, we had signed non-binding letters of intent with franchisees to sell an additional 21 company-operated restaurants. Pre-tax gross proceeds related to these sales are estimated at $16.0 million to $18.0 million . Equipment of $3.3 million related to these sales has been classified as assets held for sale on our April 15, 2018 condensed consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 15, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Prices in Active Markets for Identical Assets (3) (Level 1) Significant Other Observable Inputs (3) (Level 2) Significant Unobservable Inputs (3) (Level 3) Fair value measurements as of April 15, 2018: Non-qualified deferred compensation plan (1) $ (36,534 ) $ (36,534 ) $ — $ — Interest rate swaps (Note 6) (2) (5,791 ) — (5,791 ) — Total liabilities at fair value $ (42,325 ) $ (36,534 ) $ (5,791 ) $ — Fair value measurements as of October 1, 2017: Non-qualified deferred compensation plan (1) $ (37,219 ) $ (37,219 ) $ — $ — Interest rate swaps (Note 6) (2) (22,927 ) — (22,927 ) — Total liabilities at fair value $ (60,146 ) $ (37,219 ) $ (22,927 ) $ — ____________________________ (1) We maintain an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets. (2) We entered into interest rate swaps to reduce our exposure to rising interest rates on our variable rate 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, discount rates and forward yield curves. (3) We did not have any transfers in or out of Level 1, 2 or 3. The fair values of our debt instruments are based on the amount of future cash flows associated with each instrument discounted using our borrowing rate. At April 15, 2018 , 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 April 15, 2018 . Non-financial assets and liabilities — Our 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 an annual basis, 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. In connection with our impairment reviews performed during 2018 , we recorded $0.7 million of impairment charges resulting from the closure of four franchise and one company restaurant, $0.2 million of charges resulting from changes in the market value of closed restaurant properties held for sale and $0.2 million in charges related to our landlord’s sale of a restaurant property to a franchisee in the first quarter of 2018. Refer to Note 7, Impairment and Other Charges, Net, for additional information regarding impairment charges. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Apr. 15, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Objectives and strategies — We are exposed to interest rate volatility with regard to our variable rate debt. In April 2014, to reduce our exposure to rising interest rates, we entered into nine forward-starting interest rate swap agreements that effectively converted $300.0 million of our variable rate borrowings to a fixed-rate basis from October 2014 through October 2018. Additionally, in June 2015, we entered into eleven forward-starting interest rate swap agreements that effectively converted an additional $200.0 million of our variable rate borrowings to a fixed rate from October 2015 through October 2018, and $500.0 million from October 2018 through October 2022. These agreements have been designated as cash flow hedges under the terms of the FASB authoritative guidance for derivatives and hedging. To the extent that they are effective in offsetting the variability of the hedged cash flows, changes in the fair values of the derivatives are not included in earnings, but are included in other comprehensive income (“OCI”). These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on our variable rate debt. Financial position — The following derivative instruments were outstanding as of the end of each period ( in thousands ): Balance Sheet Location Fair Value April 15, October 1, 2017 Derivatives designated as cash flow hedging instruments: Interest rate swaps Accrued liabilities $ (1,153 ) $ (4,777 ) Interest rate swaps Other long-term liabilities (4,638 ) (18,150 ) Total derivatives (Note 5) $ (5,791 ) $ (22,927 ) Financial performance — The following table summarizes the OCI activity related to our interest rate swap derivative instruments ( in thousands ): Location in Income Quarter Year-to-date April 15, April 16, April 15, April 16, Gain (loss) recognized in OCI N/A $ 4,295 $ (3,981 ) $ 14,586 $ 19,105 Loss reclassified from accumulated OCI into net earnings Interest expense, net $ 876 $ 1,219 $ 2,550 $ 3,285 Amounts reclassified from accumulated OCI into interest expense represent payments made to the counterparties for the effective portions of the interest rate swaps. During the periods presented, our interest rate swaps had no hedge ineffectiveness. |
Impairment and other charges, n
Impairment and other charges, net | 6 Months Ended |
Apr. 15, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment and other charges, net | IMPAIRMENT AND OTHER CHARGES, NET Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Restructuring costs $ 2,575 $ 247 $ 2,933 $ 430 Costs of closed restaurants and other 1,730 417 3,105 2,256 Accelerated depreciation 324 276 374 378 Losses on disposition of property and equipment, net 298 427 481 957 Operating restaurant impairment charges (1) — — 291 — $ 4,927 $ 1,367 $ 7,184 $ 4,021 ____________________________ (1) Impairment charges are primarily resulting from our landlord’s sale of a restaurant property to a franchisee. Restructuring costs — Restructuring charges in 2018 and 2017 include costs resulting from a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions and refranchising initiatives. Restructuring charges in 2018 also include costs related to the evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which resulted in the Qdoba Sale. Refer to Note 2, Discounted Operations, for information regarding the Qdoba Sale. The following is a summary of our restructuring costs (in thousands) : Quarter Year-to-date April 15, April 16, April 15, April 16, Employee severance and related costs (1) $ 1,808 $ 163 $ 1,352 $ 256 Qdoba Evaluation consulting costs (2) 542 — 768 — Qdoba Evaluation retention bonus 225 — 812 — Other — 84 1 174 $ 2,575 $ 247 $ 2,933 $ 430 ____________________________ (1) Year-to-date 2018 includes a reduction in severance and related costs due to a change in the number of employees to be terminated in connection with our restructuring activities. (2) Qdoba Evaluation consulting costs are primarily related to third party advisory services. Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2018 (in thousands) : Balance as of October 1, 2017 $ 648 Additions/adjustments 1,352 Cash payments (1,484 ) Balance as of April 15, 2018 $ 516 Costs of closed restaurants and other — Costs of closed restaurants in 2018 and 2017 include future lease commitment charges and expected ancillary costs, net of anticipated sublease rentals. Costs in 2018 also include $0.7 million of impairment charges resulting from the closure of four franchise and one company restaurant, and $0.2 million of charges resulting from changes in the market value of closed properties held for sale. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, changed as follows during 2018 ( in thousands ): Balance as of October 1, 2017 $ 6,175 Additions 135 Adjustments (1) 549 Interest expense 957 Cash payments (3,253 ) Balance as of April 15, 2018 (2) (3) $ 4,563 ___________________________ (1) Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors. (2) The weighted average remaining lease term related to these commitments is approximately 4 years. (3) This balance excludes $3.2 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, which were initially recorded as losses on the sale of company-operated restaurants to Jack in the Box franchisees. Accelerated depreciation — When a long-lived asset will be replaced or otherwise disposed of prior to the end of its estimated useful life, the useful life of the asset is adjusted based on the estimated disposal date and accelerated depreciation is recognized. In 2018 , accelerated depreciation was primarily related to exterior enhancements at our company-operated restaurants. In 2017 , accelerated depreciation primarily related to the anticipated closure of two restaurants. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 15, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our tax rates for the quarter and year-to-date periods ended April 15, 2018 were impacted by the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted into law on December 22, 2017. As a fiscal year taxpayer, certain provisions of the Tax Act impacted us in fiscal year 2018, including a reduction in the U.S. federal statutory corporate income tax rate (the “Tax Rate”), while other provisions will be effective starting at the beginning of fiscal year 2019. The Tax Rate reduction was effective as of January 1, 2018, and will be phased in, resulting in a statutory federal tax rate of 24.5% for our fiscal year ending September 30, 2018, and 21.0% for subsequent fiscal years. As of April 15, 2018, we provisionally accounted for the results of the Tax Act. The provision for income taxes is based on a reasonable estimate of the effects on our existing deferred tax balances. Tax expense of $0.6 million in the quarter and $31.2 million year-to-date, including a immaterial tax benefit in the quarter and $2.3 million year-to-date related to Qdoba, was recognized and is included as a component of income taxes from continuing operations. This tax expense consists primarily of a $30.3 million re-measurement of our deferred tax assets and liabilities due to the enactment of the Tax Act. The impact of the Tax Act is based upon estimates and interpretations which may be refined as further authoritative guidance is issued and is expected to be completed by the first quarter of fiscal year 2019. The 2018 income tax provisions reflect tax rates of 31.4% in the quarter and 60.7% year-to-date, compared with 38.1% and 38.4% , respectively, in 2017. The major components of the year-over-year change in tax rates were the non-cash impact of the enactment of the Tax Act, including the revaluation of all deferred tax assets and liabilities at the reduced federal statutory tax rate, partially offset by the decrease in the federal statutory tax rate and the excess tax benefit on 2018 stock compensation. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual annual 2018 rate could differ from our current estimates. The following is a summary of the components of each tax rate (in thousands) : Quarter Year-to-date April 15, April 16, April 15, April 16, Income tax expense at statutory rate $ 10,717 29.4 % $ 19,221 37.9 % $ 28,037 29.1 % $ 40,961 38.2 % Non-cash impact of the Tax Act 577 1.6 % — — % 31,204 32.4 % — — % Stock compensation excess tax benefit (14 ) — % — — % (816 ) (0.9 )% — — % Other 146 0.4 % 112 0.2 % 139 0.1 % 203 0.2 % (1) $ 11,426 31.4 % $ 19,333 38.1 % $ 58,564 60.7 % $ 41,164 38.4 % ____________________________ (1) Percentages may not add due to rounding. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Apr. 15, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Retirement Plans | RETIREMENT PLANS Defined benefit pension plans — We sponsor two defined benefit pension plans, a “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011 , and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007 . In fiscal 2011, the Board of Directors approved the sunset of our Qualified Plan whereby participants no longer accrue benefits effective December 31, 2015 . Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment. Postretirement healthcare plans — We also sponsor two healthcare plans, closed to new participants, that provide postretirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory; with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. Net periodic benefit cost — The components of net periodic benefit cost in each period were as follows ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Defined benefit pension plans: Interest cost $ 5,160 $ 5,248 $ 12,039 $ 12,244 Service cost 516 504 1,203 1,177 Expected return on plan assets (6,510 ) (6,494 ) (15,190 ) (15,153 ) Actuarial loss (1) 1,123 1,411 2,621 3,292 Amortization of unrecognized prior service costs (1) 34 35 79 82 Net periodic benefit cost $ 323 $ 704 $ 752 $ 1,642 Postretirement healthcare plans: Interest cost $ 220 $ 231 $ 514 $ 540 Actuarial (gain) loss (1) (6 ) 37 (14 ) 87 Net periodic benefit cost $ 214 $ 268 $ 500 $ 627 ___________________________ (1) Amounts were reclassified from accumulated OCI into net earnings as a component of selling, general and administrative expenses. Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of January 1, 2017, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2018 contributions are as follows ( in thousands ): SERP Postretirement Healthcare Plans Net year-to-date contributions $ 2,200 $ 877 Remaining estimated net contributions during fiscal 2018 $ 2,200 $ 500 We continue to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and the economic environment. We do not anticipate making any contributions to our Qualified Plan in fiscal 2018 . |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Apr. 15, 2018 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We offer share-based compensation plans to attract, retain and motivate key officers, employees and non-employee directors to work towards the financial success of the Company. During 2018 , we granted the following shares related to our share-based compensation awards: Nonvested stock units 60,965 Stock options 113,447 Performance share awards 22,735 The components of share-based compensation expense recognized in each period are as follows ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Nonvested stock units $ 2,082 $ 1,584 $ 3,860 $ 3,653 Stock options 697 312 1,179 1,113 Nonvested stock awards 7 20 21 47 Performance share awards 75 397 738 1,187 Deferred compensation for non-management directors 350 270 350 270 Total share-based compensation expense $ 3,211 $ 2,583 $ 6,148 $ 6,270 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Apr. 15, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Repurchases of common stock — During year-to-date 2018 , we repurchased approximately 1.1 million common shares at an aggregate cost of $100.0 million . As of April 15, 2018 , there was approximately $81.0 million remaining under a Board-authorized stock-buyback program which expires in November 2018. Dividends — During year-to-date 2018 , the Board of Directors declared two cash dividends of $0.40 per common share which were paid on March 16, 2018 and December 15, 2017 to shareholders of record as of the close of business on March 5, 2018 and December 4, 2017, respectively and totaled $23.5 million . Future dividends are subject to approval by our Board of Directors. |
Average Shares Outstanding
Average Shares Outstanding | 6 Months Ended |
Apr. 15, 2018 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Average Shares Outstanding | AVERAGE SHARES OUTSTANDING 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, and non-management director stock equivalents. 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 ): Quarter Year-to-date April 15, April 16, April 15, April 16, Weighted-average shares outstanding – basic 29,040 30,895 29,332 31,622 Effect of potentially dilutive securities: Nonvested stock awards and units 268 163 311 178 Stock options 41 52 55 66 Performance share awards 7 16 7 17 Weighted-average shares outstanding – diluted 29,356 31,126 29,705 31,883 Excluded from diluted weighted-average shares outstanding: Antidilutive 150 90 116 64 Performance conditions not satisfied at the end of the period 67 79 67 79 |
Contingencies and Legal Matters
Contingencies and Legal Matters | 6 Months Ended |
Apr. 15, 2018 | |
Legal Matters and Contingencies [Abstract] | |
Contingencies and Legal Matters | Legal matters — We assess contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. We regularly review contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Gessele v. Jack in the Box Inc. — In August 2010, five former employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that the Company failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. In fiscal 2012, we accrued for a single claim for which we believe a loss is both probable and estimable; this accrued loss contingency did not have a material effect on our results of operations. We continue to believe that no additional losses are probable beyond this accrual and cannot estimate a possible loss contingency or range of reasonably possible loss contingencies beyond the accrual. We plan to vigorously defend against this lawsuit. Nonetheless, an unfavorable resolution of this matter in excess of our current accrued loss contingencies could have a material adverse effect on our business, results of operations, liquidity or financial condition. Other legal matters — In addition to the matter described above, we are subject to normal and routine litigation brought by former, current or prospective employees, customers, franchisees, vendors, landlords, shareholders or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance or other third party indemnity obligation. Our insurance liability (undiscounted) and reserves are established in part by using independent actuarial estimates of expected losses for reported claims and for estimating claims incurred but not reported. We believe that the ultimate determination of liability in connection with legal claims pending against us, if any, in excess of amounts already provided for such matters in the condensed consolidated financial statements, will not have a material adverse effect on our business, our annual results of operations, liquidity or financial position; however, it is possible that our business, results of operations, liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or contingencies during such period. Lease guarantees — While all operating leases held in the name of Qdoba were part of the Qdoba Sale, some of the leases remain guaranteed by the Company pursuant to one or more written guarantees. In the event Qdoba fails to meet its payment and performance obligations under such guaranteed leases, we may be required to make rent and other payments to the landlord under the requirements of the Guarantees. Qdoba continues to meet its obligations under these leases and there have not been any events that would indicate that Qdoba will not continue to meet the obligations of the leases. As such, we have not recorded a liability for the Guarantees as of April 15, 2018 as the likelihood of Qdoba defaulting on the assigned agreements was deemed to be less than probable. Refer to Note 2, Discontinued Operations, for additional information regarding the Guarantees. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash Flow Information | 6 Months Ended |
Apr. 15, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Consolidated Cash Flow Information | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION ( in thousands ) Year-to-date April 15, April 16, Cash paid during the year for: Interest, net of amounts capitalized $ 23,522 $ 18,460 Income tax payments $ 12,706 $ 27,356 Decrease in obligations for purchases of property and equipment $ 3,465 $ 1,998 Non-cash transactions: Increase in notes receivable from the sale of company-operated restaurants $ 31,506 $ — Increase in accrued franchise tenant improvement allowances $ 5,132 $ 1,398 Increase in dividends accrued or converted to common stock equivalents $ 160 $ 151 Increase in obligations for treasury stock repurchases $ — $ 4,466 Decrease in equipment capital lease obligations from the sale of company-operated restaurants, closure of stores and termination of equipment leases $ 2,330 $ 2,031 Decrease in capital lease obligations from the termination of building leases $ 233 $ 87 Equipment capital lease obligations incurred $ 59 $ 59 |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 6 Months Ended |
Apr. 15, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Consolidated Balance Sheet Information | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) April 15, October 1, Accounts and other receivables, net: Trade $ 51,876 $ 55,108 Due from marketing fund 19,634 — Notes receivable 22,970 988 Other 9,440 5,672 Allowance for doubtful accounts (1,516 ) (2,159 ) $ 102,404 $ 59,609 Prepaid expenses: Prepaid rent $ 8,301 $ — Prepaid income taxes — 16,928 Other 3,646 10,604 $ 11,947 $ 27,532 Other assets, net: Company-owned life insurance policies $ 107,940 $ 110,057 Deferred tax assets 62,889 105,117 Deferred rent receivable 47,562 46,962 Other 20,033 15,434 $ 238,424 $ 277,570 Accrued liabilities: Insurance $ 35,945 $ 39,011 Payroll and related taxes 25,416 23,361 Deferred rent income 10,646 18,961 Advertising — 18,493 Sales and property taxes 3,034 7,275 Gift card liability 2,243 2,237 Deferred franchise fees 425 450 Other 22,472 25,266 $ 100,181 $ 135,054 Other long-term liabilities: Defined benefit pension plans $ 102,864 $ 107,011 Straight-line rent accrual 32,511 33,749 Other 102,636 108,065 $ 238,011 $ 248,825 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 15, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On May 11, 2018, the Board of Directors declared a cash dividend of $0.40 per common share, to be paid on June 11, 2018 to shareholders of record as of the close of business on May 29, 2018. On May 11, 2018, the Board of Directors approved an additional $200.0 million stock-buyback program that expires in November 2019. Subsequent to the end of the second quarter of 2018 , we signed non-binding letters of intent with franchisees to sell approximately 25 company-operated restaurants in several markets. Pre-tax gross proceeds related to these sales are estimated at $21.0 million to $23.0 million . |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 6 Months Ended |
Apr. 15, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations — Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box ® quick-service restaurants. |
Basis of presentation | Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended October 1, 2017 (“2017 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2017 Form 10-K with the exception of two new accounting pronouncements adopted in fiscal 2018 , which are described below. On December 19, 2017, we entered into a definitive agreement to sell Qdoba Restaurant Corporation (“Qdoba”), a wholly owned subsidiary of the Company which operates and franchises more than 700 Qdoba Mexican Eats ® fast-casual restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, the “Buyer”) which was completed on March 21, 2018. For all periods presented in our condensed consolidated statements of earnings, all sales, costs, expenses and income taxes attributable to Qdoba, except as related to the impact of the decrease in the federal statutory tax rate (see Note 8, Income Taxes) , have been aggregated under the caption “earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by Qdoba operations have been aggregated in the condensed consolidated statement of cash flows as part of discontinued operations. Prior year results have been recast to conform with the current presentation. Refer to Note 2, Discontinued Operations , for additional information. During fiscal 2012, we entered into an agreement to outsource our Jack in the Box distribution business and the related results of operations for this business are also reported as discontinued operations for all periods presented. Refer to Note 2, Discontinued Operations , for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to condensed consolidated financial statements relate to our continuing operations. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. |
Segment reporting | Segment reporting — As a result of our sale of Qdoba, which has been classified as discontinued operations, we now have one reporting segment. |
Reclassification and adjustments | Reclassifications and adjustments — Certain prior year amounts in the condensed consolidated financial statements have been reclassified due to the sale of Qdoba. See Note 2, Discontinued Operations , for further information regarding this sale and the resulting prior year reclassifications. We recorded certain adjustments in 2018 upon the adoption of a new accounting pronouncement; see details regarding the effects of the adoption on our condensed consolidated financial statements below. Further, in 2018 , we began presenting depreciation and amortization as a separate line item on our condensed consolidated statements of earnings to better align with similar presentation made by many of our peers and to provide additional disclosure that is meaningful for our investors. The prior year condensed consolidated statements of earnings were adjusted to conform with this new presentation. Depreciation and amortization were previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net on our condensed consolidated statements of earnings. |
Fiscal year | Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30 . Fiscal years 2018 and 2017 include 52 weeks. Our first quarter includes 16 -weeks and all other quarters include 12 -weeks. All comparisons between 2018 and 2017 refer to the 12-weeks (“quarter”) and 28-weeks (“year-to-date”) ended April 15, 2018 and April 16, 2017 , respectively, unless otherwise indicated. |
Principles of consolidation | Principles of consolidation — The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of any variable interest entities (“VIEs”) where we are deemed the primary beneficiary. All significant intercompany accounts and transactions are eliminated. The financial results and position of our VIE are immaterial to our condensed consolidated financial statements. |
Use of estimates | Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law, or if in certain cases, the U.S. Treasury is expected to issue further guidance on the application of certain provisions of the U.S. legislation. See Note 8, Income Taxes , for additional details |
Advertising costs | Advertising costs — We administer a marketing fund which includes contractual contributions. In 2018 , the marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues, and the Company made incremental contributions to the marketing fund of $1.5 million in the quarter and $1.8 million year-to-date. To the extent contributions exceed marketing fund expenditures, the excess contributions are recorded as a liability in accrued liabilities on our consolidated balance sheet. To the extent expenditures temporarily exceed contributions, the difference is recorded as a receivable of the fund in accounts and other receivable, net on our consolidated balance sheet. The contributions to the marketing fund are designated for sales driving and marketing-related initiatives and advertising, and we act as an agent for the franchisees with regard to these contributions. Therefore, we do not reflect franchisee contributions to the funds in our condensed consolidated statements of earnings. Production costs of commercials, programming and other marketing activities are charged to the marketing fund when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. Total contributions and other marketing expenses are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of earnings. Advertising and promotions for the quarter and year-to-date in 2018 were $7.3 million and $16.1 million , respectively, and in 2017, were $9.1 million and $21.1 million , |
Effect of new accounting pronouncements adopted n fiscal 2018 | Effect of new accounting pronouncements adopted in fiscal 2018 — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard is intended to simplify various aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018 . Due to the adoption of the standard, we prospectively reclassified excess tax benefits from share-based compensation arrangements of $0.8 million year-to-date and an immaterial amount in the quarter, as a discrete item within income tax expense on the condensed consolidated statements of earnings, rather than recognizing such excess income tax benefits in capital in excess of par value on the condensed consolidated balance sheet. This also impacted the related classification on our condensed consolidated statements of cash flows, as excess tax benefits from share-based compensation arrangements is only reported in cash flows from operating activities on a prospective basis, rather than as previously reported in cash flows from operating activities and cash flows used in financing activities. Upon adoption of the standard, we also began reporting cash paid to a taxing authority on an employee’s behalf when we directly withhold equivalent shares for taxes as cash flows used in financing activities, with the related tax withholding classified as a change in accounts and other receivables in cash flows from operating activities on our condensed consolidated statements of cash flows. We retrospectively applied this new reporting of tax payments for equity award issuances on our condensed consolidated statements of cash flows. The standard also impacted our earnings per share calculation on a prospective basis as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. Lastly, the Company elected to account for forfeitures as they occur, and a cumulative-effect adjustment was made in the amount of $0.2 million and recorded in retained earnings as of October 2, 2017 on the condensed consolidated balance sheet. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements . This standard contains amendments that affect a wide variety of topics in the Accounting Standards Codification (“ASC”). The amendments include differences between original FASB guidance and the ASC, guidance clarification and reference corrections, simplifications, and minor improvements. This standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. As such, we adopted this standard in the first quarter of fiscal 2018 . This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures. Effect of new accounting pronouncements to be adopted in future periods — In May 2014, the FASB issued ASU 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606) , which provides a comprehensive new revenue recognition model that requires an entity to recognize revenue in an amount that reflects the consideration the entity expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance in ASU 2014-09 when evaluating when another party, along with the entity, is involved in providing a good or service to a customer. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarifies the guidance in ASU 2014-09 regarding assessing whether promises to transfer goods or services are distinct, and whether an entity's promise to grant a license provides a customer with a right to use, or right to access the entity's intellectual property. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606) . This ASU clarifies the guidance in ASU 2014-09, providing technical corrections and improvements to clarify guidance and correct unintended applications of the guidance. All standards are effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. As such, we will be required to adopt these standards in the first quarter of fiscal 2019. These standards are to be applied retrospectively or using a cumulative effect transition method, and early adoption is not permitted. We do not believe the new revenue recognition standard will impact our recognition of restaurant sales, rental revenues or royalty fees from franchisees. However, we are still evaluating the impact that this pronouncement will have on the recognition of certain transactions in our consolidated financial statements, including the initial franchise fees currently recognized upon the opening of a franchise restaurant, and our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, as well as the effect this new standard will have on our disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires a lessee to recognize assets and liabilities on the balance sheet for those leases classified as operating leases under previous guidance. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, we will be required to adopt this standard in the first quarter of fiscal 2020. This standard requires adoption based upon a modified retrospective transition approach, with early adoption permitted. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated balance sheets. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which affects the guidance in ASU 2016-02. The standard permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The effective date and transition requirements are the same as ASU 2016-02. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is to be applied retrospectively or using a cumulative effect transition method as of the date of adoption. We are currently evaluating which transition method to use, but believe the impact this standard will have on our consolidated financial statements and related disclosures will be immaterial upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This standard is intended to address eight classification issues related to the statement of cash flows to reduce diversity in practice in how certain transactions are classified. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard requires adoption based upon a retrospective transition method. We are currently evaluating this standard, but do not believe it will have a material impact on the classification of cash flows within our statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than deferring the recognition until the asset has been sold to an outside party. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. The standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. We are currently evaluating this standard, but do not believe it will have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) : Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . The standard provides clarification about the term “in substance nonfinancial asset” and guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets. The standard is required to be adopted retrospectively, in conjunction with ASU 2014-09. As such, we will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires the presentation of the service cost component of net benefit cost to be in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net benefit cost should be presented separately from the service cost component and outside of a subtotal of earnings from operations, or separately disclosed. The standard is effective for annual and interim periods beginning after December 15, 2017 and must be adopted retrospectively. Early adoption is permitted as of the beginning of an annual period, but we plan to adopt this standard in the first quarter of fiscal 2019. Upon adoption of this standard, we will separately present the components of net periodic benefit cost, excluding the service cost component, outside of earnings from operations. In 2018 and 2017 , net periodic benefit cost, excluding the service cost component, was approximately $21,000 and $0.5 million during the quarter, respectively, and approximately $49,000 and $1.1 million year-to-date, respectively. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This standard provides guidance that clarifies when changes to the terms or conditions of a share-based payment award require the application of modification accounting under ASC 718. This new guidance will allow for certain changes to be made to awards without accounting for them as modifications. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The standard is required to be applied prospectively to awards modified on or after the adoption date. We will be required to adopt this standard in the first quarter of fiscal 2019. This standard is not expected to have a material impact on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which amends the previous guidance to allow for certain tax effects “stranded” in accumulated other comprehensive income, which are impacted by the Tax Cuts and Jobs Act (the “Tax Act”), to be reclassified from accumulated other comprehensive income into retained earnings. This amendment pertains only to those items impacted by the new tax law and will not apply to any future tax effects stranded in accumulated other comprehensive income. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We will be required to adopt this standard in the first quarter of fiscal 2020. We are currently evaluating this standard. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary Of Number Of Restaurants | The following table summarizes the number of restaurants as of the end of each period: April 15, April 16, Company-operated 188 371 Franchise 2,057 1,889 Total system 2,245 2,260 The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period ( dollars in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Restaurants sold to franchisees 63 60 85 60 New restaurants opened by franchisees 3 6 8 13 Initial franchise fees $ 2,735 $ 2,538 $ 3,730 $ 2,828 Proceeds from the sale of company-operated restaurants: Cash (1) $ 11,253 $ 31,251 $ 16,844 $ 31,389 Short-term notes receivable (2) 22,422 — 31,506 — 33,675 31,251 48,350 31,389 Net assets sold (primarily property and equipment) (9,509 ) (10,306 ) (13,146 ) (10,306 ) Lease commitment charges (3) (863 ) (7,651 ) (863 ) (7,651 ) Goodwill related to the sale of company-operated restaurants (3,807 ) (341 ) (3,960 ) (342 ) Other (4) (14,024 ) (5,174 ) (15,969 ) (5,174 ) Gains on the sale of company-operated restaurants $ 5,472 $ 7,779 $ 14,412 $ 7,916 ____________________________ (1) Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million , respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017 , respectively. (2) We collected payments of $9.1 million related to notes due from franchisees in the first quarter of 2018 . (3) Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income from franchisees. (4) Amounts in 2018 include an $8.8 million reduction of gains related to the modification of certain 2017 refranchising transactions. The quarter and year-to-date amounts in 2018 also include $3.7 million and $5.2 million , respectively, of |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the Qdoba results for each period prior to sale ( in thousands, except per share data ): Quarter Year-to-date April 15, April 16, April 15, April 16, Company restaurant sales $ 66,850 $ 98,793 $ 192,620 $ 227,492 Franchise revenues 3,351 4,711 9,337 10,764 Company restaurant costs (excluding depreciation and amortization) (57,504 ) (80,713 ) (166,122 ) (186,429 ) Franchise costs (excluding depreciation and amortization) (930 ) (910 ) (2,338 ) (2,083 ) Selling, general and administrative expenses (5,848 ) (7,956 ) (18,112 ) (20,385 ) Depreciation and amortization — (5,057 ) (5,012 ) (11,752 ) Impairment and other charges, net (594 ) (3,811 ) (2,263 ) (7,715 ) Interest expense, net (1,575 ) (2,044 ) (4,787 ) (4,559 ) Operating earnings from discontinued operations before income taxes 3,750 3,013 3,323 5,333 Gain on Qdoba Sale 35,729 — 35,729 — Earnings from discontinued operations before income taxes 39,479 3,013 39,052 5,333 Income taxes (16,819 ) (1,181 ) (17,024 ) (2,057 ) Earnings from discontinued operations, net of income taxes $ 22,660 $ 1,832 $ 22,028 $ 3,276 Net earnings per share from discontinued operations: Basic $ 0.78 $ 0.06 $ 0.75 $ 0.10 Diluted $ 0.77 $ 0.06 $ 0.74 $ 0.10 |
Disclosure of Long Lived Assets Held-for-sale | The following is a reconciliation of the gain recorded for the Qdoba sale ( in thousands ): Net proceeds received from the Qdoba Sale (1) $ 301,904 Qdoba assets: Cash 3,113 Accounts receivable, net 9,461 Inventories 3,112 Prepaid expenses and other current assets 5,007 Property and equipment, net 163,404 Intangible assets, net 12,518 Goodwill 117,636 Other assets, net 2,604 Total Qdoba assets 316,855 Qdoba liabilities: Accounts payable 7,847 Accrued liabilities 20,265 Current maturities of long-term debt 180 Straight-line rent accrual 14,595 Deferred income tax liability 8,676 Other long-term liabilities 11,144 Total Qdoba liabilities 62,707 Other transaction costs incurred as part of the Qdoba Sale (2) 12,027 Gain on Qdoba Sale before income taxes $ 35,729 ____________________________ (1) The proceeds received from the Qdoba Sale are net of working capital adjustments outlined in the Qdoba Purchase Agreement, which must be finalized within 90 days after the closing date of the Qdoba Sale, and the derecognition of foreign currency translation adjustments recorded in accumulated other comprehensive income of $0.1 million . (2) Costs directly incurred as a result of the Qdoba Sale, including investment bank fees, legal fees, professional fees, employee transaction awards, transfer taxes and other administrative costs. |
Qdoba [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Lease guarantees — While all operating leases held in the name of Qdoba were part of the Qdoba Sale, some of the leases remain guaranteed by the Company pursuant to one or more written guarantees (the “Guarantee(s)”). In the event Qdoba fails to meet its payment and performance obligations under such guaranteed leases, we may be required to make rent and other payments to the landlord under the requirements of the Guarantees. Should we, as guarantor of the lease obligations, be required to make any lease payments due for the remaining term of the subject lease(s) subsequent to March 21, 2018, the maximum amount we may be required to pay is the sum of the annual rent payments due for the remainder of the subject lease terms. The annual rent on these leases in the first year subsequent to the Qdoba Sale is approximately $6.2 million , and will increase an average of 1.8% annually based on the provisions of the subject leases. The lease terms extend for a maximum of approximately 18 more years as of April 15, 2018, and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event that we are obligated to make payments under the Guarantees, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. Qdoba continues to meet its obligations under these leases and there have not been any events that would indicate that Qdoba will not continue to meet the obligations of the leases. As such, we have not recorded a liability for the Guarantees as of April 15, 2018 as the likelihood of Qdoba defaulting on the assigned agreements was deemed to be less than probable. |
Summary Of Refranchisings, Fr25
Summary Of Refranchisings, Franchisee Development And Acquisitions (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized | The following table summarizes the number of restaurants as of the end of each period: April 15, April 16, Company-operated 188 371 Franchise 2,057 1,889 Total system 2,245 2,260 The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period ( dollars in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Restaurants sold to franchisees 63 60 85 60 New restaurants opened by franchisees 3 6 8 13 Initial franchise fees $ 2,735 $ 2,538 $ 3,730 $ 2,828 Proceeds from the sale of company-operated restaurants: Cash (1) $ 11,253 $ 31,251 $ 16,844 $ 31,389 Short-term notes receivable (2) 22,422 — 31,506 — 33,675 31,251 48,350 31,389 Net assets sold (primarily property and equipment) (9,509 ) (10,306 ) (13,146 ) (10,306 ) Lease commitment charges (3) (863 ) (7,651 ) (863 ) (7,651 ) Goodwill related to the sale of company-operated restaurants (3,807 ) (341 ) (3,960 ) (342 ) Other (4) (14,024 ) (5,174 ) (15,969 ) (5,174 ) Gains on the sale of company-operated restaurants $ 5,472 $ 7,779 $ 14,412 $ 7,916 ____________________________ (1) Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million , respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017 , respectively. (2) We collected payments of $9.1 million related to notes due from franchisees in the first quarter of 2018 . (3) Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income from franchisees. (4) Amounts in 2018 include an $8.8 million reduction of gains related to the modification of certain 2017 refranchising transactions. The quarter and year-to-date amounts in 2018 also include $3.7 million and $5.2 million , respectively, of |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Prices in Active Markets for Identical Assets (3) (Level 1) Significant Other Observable Inputs (3) (Level 2) Significant Unobservable Inputs (3) (Level 3) Fair value measurements as of April 15, 2018: Non-qualified deferred compensation plan (1) $ (36,534 ) $ (36,534 ) $ — $ — Interest rate swaps (Note 6) (2) (5,791 ) — (5,791 ) — Total liabilities at fair value $ (42,325 ) $ (36,534 ) $ (5,791 ) $ — Fair value measurements as of October 1, 2017: Non-qualified deferred compensation plan (1) $ (37,219 ) $ (37,219 ) $ — $ — Interest rate swaps (Note 6) (2) (22,927 ) — (22,927 ) — Total liabilities at fair value $ (60,146 ) $ (37,219 ) $ (22,927 ) $ — ____________________________ (1) We maintain an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets. (2) We entered into interest rate swaps to reduce our exposure to rising interest rates on our variable rate 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, discount rates and forward yield curves. (3) We did not have any transfers in or out of Level 1, 2 or 3. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Instruments Outstanding | The following derivative instruments were outstanding as of the end of each period ( in thousands ): Balance Sheet Location Fair Value April 15, October 1, 2017 Derivatives designated as cash flow hedging instruments: Interest rate swaps Accrued liabilities $ (1,153 ) $ (4,777 ) Interest rate swaps Other long-term liabilities (4,638 ) (18,150 ) Total derivatives (Note 5) $ (5,791 ) $ (22,927 ) |
Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments | The following table summarizes the OCI activity related to our interest rate swap derivative instruments ( in thousands ): Location in Income Quarter Year-to-date April 15, April 16, April 15, April 16, Gain (loss) recognized in OCI N/A $ 4,295 $ (3,981 ) $ 14,586 $ 19,105 Loss reclassified from accumulated OCI into net earnings Interest expense, net $ 876 $ 1,219 $ 2,550 $ 3,285 Amounts reclassified from accumulated OCI into interest expense represent payments made to the counterparties for the effective portions of the interest rate swaps. During the periods presented, our interest rate swaps had no hedge ineffectiveness. |
Impairment and other charges,28
Impairment and other charges, net (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment Disposition Of Property And Equipment, Restaurant Closing Costs And Resturcturing | Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Restructuring costs $ 2,575 $ 247 $ 2,933 $ 430 Costs of closed restaurants and other 1,730 417 3,105 2,256 Accelerated depreciation 324 276 374 378 Losses on disposition of property and equipment, net 298 427 481 957 Operating restaurant impairment charges (1) — — 291 — $ 4,927 $ 1,367 $ 7,184 $ 4,021 |
Impairment and other charges | |
Restructuring and Related Costs | Restructuring costs — Restructuring charges in 2018 and 2017 include costs resulting from a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions and refranchising initiatives. Restructuring charges in 2018 also include costs related to the evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which resulted in the Qdoba Sale. Refer to Note 2, Discounted Operations, for information regarding the Qdoba Sale. The following is a summary of our restructuring costs (in thousands) : Quarter Year-to-date April 15, April 16, April 15, April 16, Employee severance and related costs (1) $ 1,808 $ 163 $ 1,352 $ 256 Qdoba Evaluation consulting costs (2) 542 — 768 — Qdoba Evaluation retention bonus 225 — 812 — Other — 84 1 174 $ 2,575 $ 247 $ 2,933 $ 430 ____________________________ (1) Year-to-date 2018 includes a reduction in severance and related costs due to a change in the number of employees to be terminated in connection with our restructuring activities. (2) Qdoba Evaluation consulting costs are primarily related to third party advisory services. |
Schedule of Restructuring Reserve by Type of Cost | Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during 2018 (in thousands) : Balance as of October 1, 2017 $ 648 Additions/adjustments 1,352 Cash payments (1,484 ) Balance as of April 15, 2018 $ 516 |
Impairment, Disposition, Closing Costs, and Restructuring | |
Impairment and other charges | |
Schedule of Restructuring Reserve by Type of Cost | Costs of closed restaurants and other — Costs of closed restaurants in 2018 and 2017 include future lease commitment charges and expected ancillary costs, net of anticipated sublease rentals. Costs in 2018 also include $0.7 million of impairment charges resulting from the closure of four franchise and one company restaurant, and $0.2 million of charges resulting from changes in the market value of closed properties held for sale. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, changed as follows during 2018 ( in thousands ): Balance as of October 1, 2017 $ 6,175 Additions 135 Adjustments (1) 549 Interest expense 957 Cash payments (3,253 ) Balance as of April 15, 2018 (2) (3) $ 4,563 ___________________________ (1) Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors. (2) The weighted average remaining lease term related to these commitments is approximately 4 years. (3) This balance excludes $3.2 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, which were initially recorded as losses on the sale of company-operated restaurants to Jack in the Box franchisees. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following is a summary of the components of each tax rate (in thousands) : Quarter Year-to-date April 15, April 16, April 15, April 16, Income tax expense at statutory rate $ 10,717 29.4 % $ 19,221 37.9 % $ 28,037 29.1 % $ 40,961 38.2 % Non-cash impact of the Tax Act 577 1.6 % — — % 31,204 32.4 % — — % Stock compensation excess tax benefit (14 ) — % — — % (816 ) (0.9 )% — — % Other 146 0.4 % 112 0.2 % 139 0.1 % 203 0.2 % (1) $ 11,426 31.4 % $ 19,333 38.1 % $ 58,564 60.7 % $ 41,164 38.4 % ____________________________ (1) Percentages may not add due to rounding. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Components Of Net Periodic Benefit Cost | The components of net periodic benefit cost in each period were as follows ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Defined benefit pension plans: Interest cost $ 5,160 $ 5,248 $ 12,039 $ 12,244 Service cost 516 504 1,203 1,177 Expected return on plan assets (6,510 ) (6,494 ) (15,190 ) (15,153 ) Actuarial loss (1) 1,123 1,411 2,621 3,292 Amortization of unrecognized prior service costs (1) 34 35 79 82 Net periodic benefit cost $ 323 $ 704 $ 752 $ 1,642 Postretirement healthcare plans: Interest cost $ 220 $ 231 $ 514 $ 540 Actuarial (gain) loss (1) (6 ) 37 (14 ) 87 Net periodic benefit cost $ 214 $ 268 $ 500 $ 627 ___________________________ (1) Amounts were reclassified from accumulated OCI into net earnings as a component of selling, general and administrative expenses. |
Schedule Of Defined Benefit Plan Contribution | Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of January 1, 2017, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2018 contributions are as follows ( in thousands ): SERP Postretirement Healthcare Plans Net year-to-date contributions $ 2,200 $ 877 Remaining estimated net contributions during fiscal 2018 $ 2,200 $ 500 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Share-based Compensation [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2018 , we granted the following shares related to our share-based compensation awards: Nonvested stock units 60,965 Stock options 113,447 Performance share awards 22,735 |
Components Of Share-Based Compensation Expense | The components of share-based compensation expense recognized in each period are as follows ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Nonvested stock units $ 2,082 $ 1,584 $ 3,860 $ 3,653 Stock options 697 312 1,179 1,113 Nonvested stock awards 7 20 21 47 Performance share awards 75 397 738 1,187 Deferred compensation for non-management directors 350 270 350 270 Total share-based compensation expense $ 3,211 $ 2,583 $ 6,148 $ 6,270 |
Average Shares Outstanding (Tab
Average Shares Outstanding (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding | The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding ( in thousands ): Quarter Year-to-date April 15, April 16, April 15, April 16, Weighted-average shares outstanding – basic 29,040 30,895 29,332 31,622 Effect of potentially dilutive securities: Nonvested stock awards and units 268 163 311 178 Stock options 41 52 55 66 Performance share awards 7 16 7 17 Weighted-average shares outstanding – diluted 29,356 31,126 29,705 31,883 Excluded from diluted weighted-average shares outstanding: Antidilutive 150 90 116 64 Performance conditions not satisfied at the end of the period 67 79 67 79 |
Supplemental Consolidated Cas33
Supplemental Consolidated Cash Flow Information (Tables) | 6 Months Ended |
Apr. 15, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Information Related To Cash Flows | Year-to-date April 15, April 16, Cash paid during the year for: Interest, net of amounts capitalized $ 23,522 $ 18,460 Income tax payments $ 12,706 $ 27,356 Decrease in obligations for purchases of property and equipment $ 3,465 $ 1,998 Non-cash transactions: Increase in notes receivable from the sale of company-operated restaurants $ 31,506 $ — Increase in accrued franchise tenant improvement allowances $ 5,132 $ 1,398 Increase in dividends accrued or converted to common stock equivalents $ 160 $ 151 Increase in obligations for treasury stock repurchases $ — $ 4,466 Decrease in equipment capital lease obligations from the sale of company-operated restaurants, closure of stores and termination of equipment leases $ 2,330 $ 2,031 Decrease in capital lease obligations from the termination of building leases $ 233 $ 87 Equipment capital lease obligations incurred $ 59 $ 59 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Apr. 15, 2018USD ($)segmentrestaurant | Apr. 16, 2017USD ($)restaurant | Jan. 21, 2018USD ($) | Apr. 15, 2018USD ($)restaurant | Apr. 16, 2017USD ($)restaurant | |
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 2,245 | 2,260 | 2,245 | 2,260 | |
Number of reportable segments | segment | 1 | ||||
Contractual obligation | 5.00% | ||||
Incremental Corporate Advertising Contributions | $ 1,500 | $ 1,800 | |||
Marketing and advertising expense | 7,300 | $ 9,100 | 16,100 | $ 21,100 | |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ (800) | 800 | 4,034 | ||
Net assets, adjusted balance | 200 | 200 | |||
Net periodic benefit cost excluding service cost | $ 21 | $ 500 | $ 49 | $ 1,100 | |
Entity Operated Units | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 188 | 371 | 188 | 371 | |
Franchised Units | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 2,057 | 1,889 | 2,057 | 1,889 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 15, 2018 | Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | Dec. 19, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual Rent Increase | 1.80% | 1.80% | 1.80% | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ 76 | $ 0 | $ 76 | $ 0 | ||
Cost of Goods Sold, Direct Labor | 33,096 | $ 54,529 | 82,036 | $ 124,712 | ||
Qdoba | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ 100 | |||||
Disposal Group, Including Discontinued Operation, Operating Expense | $ 1,100 | |||||
Maximum Lease Term | 18 | 18 | 18 | |||
Cost of Goods Sold, Direct Labor | $ 10,500 | |||||
Discontinued Operations, Disposed of by Sale | Qdoba | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group, including discontinued operation, consideration | $ 305,000 | |||||
Term Loan [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Repayments of Debt | $ 260,000 | |||||
Term Loan [Member] | Qdoba | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Repayments of Debt | $ 260,000 |
Discontinued Operations - Quart
Discontinued Operations - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Basic (in usd per share) | $ 0.78 | $ 0.06 | $ 0.75 | $ 0.10 |
Diluted (in usd per share) | $ 0.77 | $ 0.05 | $ 0.74 | $ 0.10 |
Qdoba | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Company restaurant sales | $ 66,850 | $ 98,793 | $ 192,620 | $ 227,492 |
Franchise revenues | 3,351 | 4,711 | 9,337 | 10,764 |
Company restaurant costs (excluding depreciation and amortization) | (57,504) | (80,713) | (166,122) | (186,429) |
Franchise costs (excluding depreciation and amortization) | (930) | (910) | (2,338) | (2,083) |
Selling, general and administrative expenses | (5,848) | (7,956) | (18,112) | (20,385) |
Depreciation and amortization expenses | 0 | (5,057) | (5,012) | (11,752) |
Impairment and other charges, net | (594) | (3,811) | (2,263) | (7,715) |
Interest expense, net | (1,575) | (2,044) | (4,787) | (4,559) |
Operating earnings from discontinued operations before income taxes | 3,750 | 3,013 | 3,323 | 5,333 |
Gain on Qdoba Sale | 35,729 | 0 | 35,729 | 0 |
Earnings from discontinued operations before income taxes | 39,479 | 3,013 | 39,052 | 5,333 |
Income taxes | (16,819) | (1,181) | (17,024) | (2,057) |
Earnings from discontinued operations, net of income taxes | $ 22,660 | $ 1,832 | $ 22,028 | $ 3,276 |
Basic (in usd per share) | $ 0.78 | $ 0.06 | $ 0.75 | $ 0.10 |
Diluted (in usd per share) | $ 0.77 | $ 0.06 | $ 0.74 | $ 0.10 |
Term Loan [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Repayments of Debt | $ 260,000 | |||
Term Loan [Member] | Qdoba | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Repayments of Debt | $ 260,000 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Assets and Liabilities Classified as Held-for-Sale (Details) - Qdoba - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | [1] | $ 301,904 | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||||
Cash | $ 3,113 | 3,113 | |||
Accounts receivable, net | 9,461 | 9,461 | |||
Inventories | 3,112 | 3,112 | |||
Prepaid expenses and other current assets | 5,007 | 5,007 | |||
Property and equipment, net | 163,404 | 163,404 | |||
Intangible assets, net | 12,518 | 12,518 | |||
Goodwill | 117,636 | 117,636 | |||
Other assets, net | 2,604 | 2,604 | |||
Total Qdoba assets | 316,855 | 316,855 | |||
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||||
Accounts payable | 7,847 | 7,847 | |||
Accrued liabilities | 20,265 | 20,265 | |||
Current maturities of long-term debt | 180 | 180 | |||
Straight-line rent accrual | 14,595 | 14,595 | |||
Deferred income tax liability | 8,676 | 8,676 | |||
Other long-term liabilities | 11,144 | 11,144 | |||
Total Qdoba liabilities | 62,707 | 62,707 | |||
Disposal Group, Including Discontinued Operation, Other Expense | [2] | 12,027 | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 35,729 | $ 0 | $ 35,729 | $ 0 | |
[1] | (1)The proceeds received from the Qdoba Sale are net of working capital adjustments outlined in the Qdoba Purchase Agreement, which must be finalized within 90 days after the closing date of the Qdoba Sale, and the derecognition of foreign currency translation adjustments recorded in accumulated other comprehensive income of $0.1 million. | ||||
[2] | (2)Costs directly incurred as a result of the Qdoba Sale, including investment bank fees, legal fees, professional fees, employee transaction awards, transfer taxes and other administrative costs. |
Indebtedness (Details)
Indebtedness (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018USD ($) | Apr. 15, 2018USD ($) | Mar. 21, 2018 | Mar. 20, 2018 | |
Debt Instrument [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 6.2 | |||
Derivative, Floor Interest Rate | 0.00% | |||
Line of Credit Facility, Interest Rate at Period End | 2.00% | |||
Letters of Credit Outstanding, Amount | $ 31.4 | |||
Maximum Leverage Ratio | 4.5 | 4 | ||
Pro Forma Leverage Ratio | 4 | |||
Debt Instrument, Periodic Payment, Principal | $ 10.7 | |||
Line of Credit Facility, Expiration Date | Mar. 1, 2020 | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 357.7 | |||
Repayments of Debt | 260 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 581.1 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 900 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Summary Of Refranchisings, Fr39
Summary Of Refranchisings, Franchisee Development And Acquisitions (Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 08, 2018USD ($)restaurant | Apr. 15, 2018USD ($)restaurant | Apr. 16, 2017USD ($)restaurant | Apr. 15, 2018USD ($)restaurant | Apr. 16, 2017USD ($)restaurant | ||
Receivable [Domain] | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | [1] | $ 22,422 | ||||
Restaurants sold to franchisees | restaurant | 63 | 60 | 85 | 60 | ||
New restaurants opened by franchisees | restaurant | 3 | 6 | 8 | 13 | ||
Initial franchise fees | $ 2,735 | $ 2,538 | $ 3,730 | $ 2,828 | ||
Proceeds from Divestiture of Businesses, Net of Cash Divested | [1] | 0 | 31,506 | 0 | ||
Total Proceeds from the Sale of Company-Operated Restaurants | 33,675 | 31,251 | 48,350 | 31,389 | ||
Proceeds from Divestiture of Businesses | [2] | 11,253 | 31,251 | 16,844 | 31,389 | |
Net assets sold (primarily property and equipment) | (9,509) | (10,306) | (13,146) | (10,306) | ||
Operating Leases, Rent Expense, Sublease Rentals | [3] | (863) | (7,651) | (863) | (7,651) | |
Goodwill related to the sale of company-operated restaurants | (3,807) | (341) | (3,960) | (342) | ||
Disposal Group Not Discontinued Operation Other Gain Loss On Disposal | [4] | $ (14,024) | $ (5,174) | (15,969) | (5,174) | |
Additional proceeds from the sale of a company-operated restaurant | 1,200 | 100 | ||||
Proceeds from Sale and Collection of Notes Receivable | 9,100 | |||||
Disposal Group Not Discontinued Operation Other Gain Loss On Disposal related to PY | 8,800 | |||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 200 | 3,100 | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,400 | |||||
Number of restaurants | restaurant | 2,245 | 2,260 | 2,245 | 2,260 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Number of restaurants | 25 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Equipment | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Number of restaurants | restaurant | 21 | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Equipment | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Assets held for sale and leaseback | $ 3,300 | $ 3,300 | ||||
Forecast | Minimum | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Proceeds from sale of franchisees | $ 16,000 | |||||
Forecast | Maximum | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Proceeds from sale of franchisees | $ 18,000 | |||||
Remodel Credit | ||||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||||
Disposal Group Not Discontinued Operation Other Gain Loss On Disposal | $ 3,700 | $ 5,200 | ||||
[1] | (2)We collected payments of $9.1 million related to notes due from franchisees in the first quarter of 2018. | |||||
[2] | (1)Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million, respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017 | |||||
[3] | (3)Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income from franchisees. | |||||
[4] | (4)Amounts in 2018 include an $8.8 million reduction of gains related to the modification of certain 2017 refranchising transactions. The quarter and year-to-date amounts in 2018 also include $3.7 million and $5.2 million, respectively, of costs related to franchise remodel incentives. Amounts in 2017 primarily represent impairment of $3.1 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets. |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) $ in Thousands | 6 Months Ended | |||
Apr. 15, 2018USD ($)restaurant | Apr. 16, 2017USD ($) | Oct. 01, 2017USD ($) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | $ (42,325) | $ (60,146) | ||
Gain (loss) on sale of assets and asset impairment charges | 200 | $ 3,100 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1] | (36,534) | (37,219) | |
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1] | (5,791) | (22,927) | |
Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1] | 0 | 0 | |
Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [2] | (5,791) | (22,927) | |
Interest Rate Swaps | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[2] | 0 | 0 | |
Interest Rate Swaps | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[2] | (5,791) | (22,927) | |
Interest Rate Swaps | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[2] | 0 | 0 | |
Non Qualified Deferred Compensation Plan | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [3] | (36,534) | (37,219) | |
Non Qualified Deferred Compensation Plan | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[3] | (36,534) | (37,219) | |
Non Qualified Deferred Compensation Plan | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[3] | 0 | 0 | |
Non Qualified Deferred Compensation Plan | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities at fair value | [1],[3] | $ 0 | $ 0 | |
Franchised Units [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of restaurants closed | restaurant | 4 | |||
Entity Operated Units [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of restaurants closed | restaurant | 1 | |||
[1] | We did not have any transfers in or out of Level 1, 2 or 3. | |||
[2] | We entered into interest rate swaps to reduce our exposure to rising interest rates on our variable rate 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, discount rates and forward yield curves. | |||
[3] | We maintain an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Apr. 15, 2018USD ($) | Apr. 16, 2017USD ($) | Apr. 15, 2018USD ($) | Apr. 16, 2017USD ($) | Jun. 15, 2015USD ($)agreements | Apr. 14, 2014USD ($)agreements | |
Derivative [Line Items] | ||||||
Interest rate derivatives held | agreements | 11 | 9 | ||||
Interest Rate Swaps | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 200,000,000 | $ 300,000,000 | ||||
Interest rate swaps hedge ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 | ||
Interest Rate Swap 1 | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 500,000,000 |
Derivative Instruments (Derivat
Derivative Instruments (Derivative Instruments Outstanding) (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands | Apr. 15, 2018 | Oct. 01, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (5,791) | $ (22,927) |
Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | (1,153) | (4,777) |
Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities at fair value | $ (4,638) | $ (18,150) |
Derivative Instruments (Gains O
Derivative Instruments (Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI | $ 4,295 | $ (3,981) | $ 14,586 | $ 19,105 |
Loss reclassified from accumulated OCI into net earnings | 876 | 1,219 | 2,550 | 3,285 |
Interest Rate Swaps | Derivatives Designated As Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI | 4,295 | (3,981) | 14,586 | 19,105 |
Interest Rate Swaps | Interest Expense, Net | Derivatives Designated As Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss reclassified from accumulated OCI into net earnings | $ 876 | $ 1,219 | $ 2,550 | $ 3,285 |
Impairment and other charges,44
Impairment and other charges, net (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Apr. 15, 2018USD ($) | Apr. 16, 2017USD ($) | Apr. 15, 2018USD ($)restaurant | Apr. 16, 2017USD ($)restaurant | Oct. 01, 2017USD ($) | ||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | $ 2,575 | $ 247 | $ 2,933 | $ 430 | ||||
Costs of closed restaurants and other | 1,730 | 417 | 3,105 | 2,256 | ||||
Accelerated depreciation | 324 | 276 | 374 | 378 | ||||
Losses (gains) on the disposition of property and equipment, net | (481) | (957) | ||||||
Operating restaurant impairment charges (1) | [1] | 0 | 0 | 291 | 0 | |||
Impairment and other charges, net | 4,927 | 1,367 | 7,184 | 4,021 | ||||
Gain (loss) on sale of assets and asset impairment charges | 200 | 3,100 | ||||||
Restaurant Closing Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Other accrued liabilities | 3,200 | 3,200 | ||||||
Qdoba Evaluation retention bonus | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 225 | 0 | 812 | 0 | ||||
Qdoba Evaluation consulting costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | [2] | 542 | 0 | 768 | 0 | |||
Employee severance and related costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | [3] | 1,808 | 163 | 1,352 | 256 | |||
Restructuring Reserve | 516 | 516 | $ 648 | |||||
Cash payments | (1,484) | |||||||
Other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 0 | 84 | 1 | $ 174 | ||||
Facility Closing | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve | 4,563 | [4],[5] | 4,563 | [4],[5] | $ 6,175 | |||
Additions | 135 | |||||||
Restructuring Reserve, Accrual Adjustment | [6] | 549 | ||||||
Cash payments | (3,253) | |||||||
Facility Closing | Interest Expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve, Accrual Adjustment | $ 957 | |||||||
Jack in the box brand restaurant operations | Accelerated depreciation | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of restaurants | restaurant | 2 | |||||||
Weighted Average | Facility Closing | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Remaining Lease Commitment Term | 4 | |||||||
Franchised Units [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of restaurants closed | restaurant | 4 | |||||||
Entity Operated Units [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of restaurants closed | restaurant | 1 | |||||||
Continuing Operations [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Losses (gains) on the disposition of property and equipment, net | $ 298 | $ 427 | $ 481 | $ 957 | ||||
Impairment, Disposition, Closing Costs, and Restructuring | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Gain (loss) on sale of assets and asset impairment charges | $ 700 | |||||||
Impairment, Disposition, Closing Costs, and Restructuring | Franchised Units [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of restaurants closed | restaurant | 4 | |||||||
Impairment, Disposition, Closing Costs, and Restructuring | Entity Operated Units [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of restaurants closed | restaurant | 1 | |||||||
[1] | (1)Impairment charges are primarily resulting from our landlord’s sale of a restaurant property to a franchisee. | |||||||
[2] | (2)Qdoba Evaluation consulting costs are primarily related to third party advisory services. | |||||||
[3] | (1)Year-to-date 2018 includes a reduction in severance and related costs due to a change in the number of employees to be terminated in connection with our restructuring activities. | |||||||
[4] | (2)The weighted average remaining lease term related to these commitments is approximately 4 years. | |||||||
[5] | (3)This balance excludes $3.2 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities on our condensed consolidated balance sheets, which were initially recorded as losses on the sale of company-operated restaurants to Jack in the Box franchisees. | |||||||
[6] | (1)Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | Sep. 29, 2019 | Sep. 30, 2018 | ||
Income Tax Contingency [Line Items] | |||||||
Statutory income tax rate, percent | 29.40% | 37.90% | 29.10% | 38.20% | |||
Tax Cuts and Jobs Act of 2017, income tax expense (benefit) | $ 577 | $ 0 | $ 31,204 | $ 0 | |||
Income tax expense (benefit), continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 30,300 | ||||||
Effective tax rates | [1] | 31.40% | 38.10% | 60.70% | 38.40% | ||
Forecast | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory income tax rate, percent | 21.00% | 24.50% | |||||
Qdoba | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax Cuts and Jobs Act of 2017, income tax expense (benefit) | $ 2,300 | ||||||
[1] | (1)Percentages may not add due to rounding. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | ||
Income Tax Disclosure [Abstract] | |||||
Income tax expense at statutory rate, amount | $ 10,717 | $ 19,221 | $ 28,037 | $ 40,961 | |
Income tax expense at statutory rate | 29.40% | 37.90% | 29.10% | 38.20% | |
Tax Cuts and Jobs Act of 2017, Income Tax Expense (Benefit) | $ 577 | $ 0 | $ 31,204 | $ 0 | |
One-time, non-cash impact of the Tax Act, percent | 1.60% | 0.00% | 32.40% | 0.00% | |
Stock compensation excess tax benefit, amount | $ (14) | $ 0 | $ (816) | $ 0 | |
Stock compensation excess tax benefit, percent | 0.00% | 0.00% | (0.90%) | 0.00% | |
Other, amount | $ 146 | $ 112 | $ 139 | $ 203 | |
Other, percent | 0.40% | 0.20% | 0.10% | 0.20% | |
Effective income tax rate, amount | $ 11,426 | $ 19,333 | $ 58,564 | $ 41,164 | |
Effective income tax rates, percent | [1] | 31.40% | 38.10% | 60.70% | 38.40% |
[1] | (1)Percentages may not add due to rounding. |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | ||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 5,160 | $ 5,248 | $ 12,039 | $ 12,244 | |
Service cost | 516 | 504 | 1,203 | 1,177 | |
Expected return on plan assets | (6,510) | (6,494) | (15,190) | (15,153) | |
Actuarial loss | [1] | 1,123 | 1,411 | 2,621 | 3,292 |
Amortization of unrecognized prior service cost | [1] | 34 | 35 | 79 | 82 |
Net periodic benefit cost | 323 | 704 | 752 | 1,642 | |
Postretirement Healthcare Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 220 | 231 | 514 | 540 | |
Actuarial loss | [1] | (6) | 37 | (14) | 87 |
Net periodic benefit cost | $ 214 | $ 268 | $ 500 | $ 627 | |
[1] | (1)Amounts were reclassified from accumulated OCI into net earnings as a component of selling, general and administrative expenses. |
Retirement Plans (Schedule Of F
Retirement Plans (Schedule Of Future Cash Flows) (Details) - USD ($) | 6 Months Ended | ||
Apr. 15, 2018 | Sep. 30, 2018 | Jan. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required contribution for retirement plans | $ 0 | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net year-to-date contributions | $ 2,200,000 | ||
Postretirement Healthcare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net year-to-date contributions | $ 877,000 | ||
Forecast | SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Remaining estimated net contributions during fiscal 2018 | $ 2,200,000 | ||
Forecast | Postretirement Healthcare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Remaining estimated net contributions during fiscal 2018 | $ 500,000 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Share-Based Awards Granted) (Details) | 6 Months Ended |
Apr. 15, 2018shares | |
Nonvested stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 60,965 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 113,447 |
Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 22,735 |
Share-Based Compensation (Compo
Share-Based Compensation (Components Of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 3,211 | $ 2,583 | $ 6,148 | $ 6,270 |
Nonvested stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 2,082 | 1,584 | 3,860 | 3,653 |
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 75 | 397 | 738 | 1,187 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 697 | 312 | 1,179 | 1,113 |
Nonvested stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 7 | 20 | 21 | 47 |
Deferred Compensation, Share-based Payments [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 350 | $ 270 | $ 350 | $ 270 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Jan. 21, 2018 | Apr. 15, 2018 | Apr. 16, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury Stock, Shares, Acquired | 1.1 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 100 | ||||
Cash dividends declared per common share | $ 0.4 | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.80 |
Dividends, common stock | $ 23.5 | ||||
Expiration: November 2018 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock, remaining authorized amount | $ 81 | $ 81 |
Average Shares Outstanding (Rec
Average Shares Outstanding (Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2018 | Apr. 16, 2017 | Apr. 15, 2018 | Apr. 16, 2017 | |
Average Shares Outstanding [Line Items] | ||||
Weighted-average shares outstanding – basic | 29,040 | 30,895 | 29,332 | 31,622 |
Weighted-average shares outstanding - diluted | 29,356 | 31,126 | 29,705 | 31,883 |
Excluded from diluted weighted-average shares outstanding, Antidilutive | 150 | 90 | 116 | 64 |
Excluded from Diluted Weighted-Average Shares, Performance Conditions Not Satisfied | 67 | 79 | 67 | 79 |
Nonvested stock awards and units | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities | 268 | 163 | 311 | 178 |
Stock options | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities | 41 | 52 | 55 | 66 |
Performance share awards | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities | 7 | 16 | 7 | 17 |
Supplemental Consolidated Cas53
Supplemental Consolidated Cash Flow Information (Additional Information Related To Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 15, 2018 | Apr. 16, 2017 | |
Interest, net of amounts capitalized | $ 23,522 | $ 18,460 |
Income tax payments | 12,706 | 27,356 |
Decrease in obligations for purchases of property and equipment | 3,465 | 1,998 |
Increase in notes receivable from the sale of company-operated restaurants | 31,506 | 0 |
Franchise Tenant Improvement Allowances | 5,132 | 1,398 |
Increase in dividends accrued or converted to common stock equivalents | 160 | 151 |
Decrease in obligations for treasury stock repurchases | 0 | (4,466) |
Reduction of Equipment Lease Obligation | 2,330 | 2,031 |
Reduction of Short-term Capital Lease Obligations | 233 | 87 |
Equipment capital lease obligations incurred | $ 59 | $ 59 |
Supplemental Consolidated Bal54
Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands | Apr. 15, 2018 | Oct. 01, 2017 |
Trade | $ 51,876 | $ 55,108 |
Due from marketing fund | 19,634 | 0 |
Notes receivable | 22,970 | 988 |
Other | 9,440 | 5,672 |
Allowance for doubtful accounts | (1,516) | (2,159) |
Receivables, Net, Current | 102,404 | 59,609 |
Prepaid income taxes | 8,301 | 0 |
Prepaid rent | 0 | 16,928 |
Other | 3,646 | 10,604 |
Prepaid Expense, Current | 11,947 | 27,532 |
Company-owned life insurance policies | 107,940 | 110,057 |
Deferred tax assets | 62,889 | 105,117 |
Deferred rent receivable | 47,562 | 46,962 |
Other | 20,033 | 15,434 |
Other assets, net | 238,424 | 277,570 |
Insurance | 35,945 | 39,011 |
Payroll and related taxes | 25,416 | 23,361 |
Deferred rent income | 10,646 | 18,961 |
Advertising | 0 | 18,493 |
Sales and property taxes | 3,034 | 7,275 |
Gift card liability | 2,243 | 2,237 |
Deferred franchise fees | 425 | 450 |
Other | 22,472 | 25,266 |
Accrued liabilities | 100,181 | 135,054 |
Defined benefit pension plans | 102,864 | 107,011 |
Straight-line rent accrual | 32,511 | 33,749 |
Other | 102,636 | 108,065 |
Other Liabilities, Noncurrent | $ 238,011 | $ 248,825 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | May 11, 2018USD ($)$ / shares | Jul. 08, 2018USD ($) | Apr. 15, 2018restaurant$ / shares | Apr. 16, 2017restaurant$ / shares | Jan. 21, 2018$ / shares | Apr. 15, 2018restaurant$ / shares | Apr. 16, 2017restaurant$ / shares |
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share | $ / shares | $ 0.4 | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.80 | ||
Stock Repurchase Program, Authorized Amount | $ 200 | ||||||
Number of Restaurants | restaurant | 2,245 | 2,260 | 2,245 | 2,260 | |||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share | $ / shares | $ 0.40 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of Restaurants | 25 | ||||||
Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ 21 | ||||||
Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Estimated Pre-Tax Proceeds from Sale to Franchisees | $ 23 |
Uncategorized Items - jack-2018
Label | Element | Value |
Cash, Including Discontinued Operations | us-gaap_CashIncludingDiscontinuedOperations | $ 7,642,000 |