Cover Page
Cover Page - shares | 4 Months Ended | |
Jan. 19, 2020 | Feb. 14, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 19, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9390 | |
Entity Registrant Name | JACK IN THE BOX INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-2698708 | |
Entity Address, Address Line One | 9330 Balboa Avenue | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92123 | |
City Area Code | 858 | |
Local Phone Number | 571-2121 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | JACK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,630,771 | |
Entity Central Index Key | 0000807882 | |
Current Fiscal Year End Date | --09-27 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 19, 2020 | Sep. 29, 2019 |
Current assets: | ||
Cash | $ 19,914 | $ 125,536 |
Restricted cash | 18,372 | 26,025 |
Accounts and other receivables, net | 53,576 | 45,235 |
Inventories | 2,029 | 1,776 |
Prepaid expenses | 13,665 | 9,015 |
Current assets held for sale | 7,760 | 16,823 |
Other current assets | 3,037 | 2,718 |
Total current assets | 118,353 | 227,128 |
Property and equipment: | ||
Property and equipment, at cost | 1,155,356 | 1,176,241 |
Less accumulated depreciation and amortization | (793,851) | (784,307) |
Property and equipment, net | 361,505 | 391,934 |
Other assets: | ||
Operating lease right-of-use assets | 884,213 | |
Intangible assets, net | 37 | 425 |
Goodwill | 46,747 | 46,747 |
Deferred tax assets | 66,675 | 85,564 |
Other assets, net | 212,783 | 206,685 |
Total other assets | 1,210,455 | 339,421 |
Total assets | 1,690,313 | 958,483 |
Current liabilities: | ||
Current maturities of long-term debt | 13,786 | 774 |
Current operating lease liabilities | 158,779 | |
Accounts payable | 23,467 | 37,066 |
Accrued liabilities | 118,289 | 120,083 |
Total current liabilities | 314,321 | 157,923 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 1,262,737 | 1,274,374 |
Long-term operating lease liabilities, net of current portion | 767,819 | |
Other long-term liabilities | 186,589 | 263,770 |
Total long-term liabilities | 2,217,145 | 1,538,144 |
Stockholders’ deficit: | ||
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, 82,255,912 and 82,159,002 issued, respectively | 823 | 822 |
Capital in excess of par value | 483,739 | 480,322 |
Retained earnings | 1,572,586 | 1,577,034 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (88,995) | (140,006) |
Treasury stock, at cost, 59,646,773 and 57,760,573 shares, respectively | (2,809,306) | (2,655,756) |
Total stockholders’ deficit | (841,153) | (737,584) |
Total liabilities and stockholders' equity | $ 1,690,313 | $ 958,483 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 19, 2020 | Sep. 29, 2019 |
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 | 82,255,912 | 82,159,002 |
Treasury stock at cost, shares | 59,646,773 | 57,760,573 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Earnings - USD ($) $ in Thousands | 4 Months Ended | ||
Jan. 19, 2020 | Jan. 20, 2019 | ||
Revenues | $ 307,673 | $ 290,786 | |
Operating costs and expenses, net: | |||
Food and packaging | 31,348 | 29,616 | |
Payroll and employee benefits | 31,890 | 30,274 | |
Occupancy and other | 15,958 | 16,013 | |
Total company restaurant costs | 79,196 | 75,903 | |
Selling, general and administrative expenses | 28,248 | 24,083 | |
Depreciation and amortization | 16,728 | 17,169 | |
Impairment and other charges, net | (9,291) | 7,698 | |
Gains on the sale of company-operated restaurants | (1,575) | (219) | |
Total operating costs and expenses | 237,723 | 232,462 | |
Earnings from operations | 69,950 | 58,324 | |
Other pension and post-retirement expenses, net | 38,978 | 456 | |
Interest expense, net | 19,942 | 17,374 | |
Earnings from continuing operations and before income taxes | 11,030 | 40,494 | |
Income tax expense | 3,133 | 9,373 | |
Earnings from continuing operations | 7,897 | 31,121 | |
Earnings from discontinued operations, net of income taxes | 0 | 2,977 | |
Net earnings | $ 7,897 | $ 34,098 | |
Net earnings per share - basic: | |||
Earnings from continuing operations (in USD per share) | $ 0.33 | $ 1.20 | |
Earnings from discontinued operations (in USD per share) | 0 | 0.11 | |
Net earnings per share (in USD per share) | [1] | 0.33 | 1.32 |
Net earnings per share - diluted: | |||
Earnings from coninuing operations (in USD per share) | 0.33 | 1.19 | |
Earnings from discontinued operations (in USD per share) | 0 | 0.11 | |
Net earnings per share (in USD per share) | [1] | 0.33 | 1.31 |
Cash dividends declared per common share (in USD per share) | $ 0.40 | $ 0.40 | |
Company Restaurant Sales | |||
Revenues | $ 105,364 | $ 102,832 | |
Franchise | |||
Franchise rental revenues | 96,084 | 83,890 | |
Operating costs and expenses, net: | |||
Occupancy and other | 64,517 | 50,713 | |
Total company restaurant costs | 4,676 | 2,845 | |
Franchise advertising and other services expenses | 55,224 | 54,270 | |
Royalty and Other | |||
Revenues | 52,466 | 52,250 | |
Franchise contributions for advertising and other services | |||
Revenues | $ 53,759 | $ 51,814 | |
[1] | Earnings per share may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 7,897 | $ 34,098 |
Net change in fair value of derivatives | 0 | (7,167) |
Net loss reclassified to earnings | 0 | 479 |
Cash flow hedges, before tax | 0 | (6,688) |
Tax effect | 0 | 1,723 |
Cash flow hedges, net | 0 | (4,965) |
Actuarial gains arising during the period | 28,583 | 0 |
Actuarial losses and prior service costs reclassified to earnings | 40,310 | 1,205 |
Unrecognized periodic benefit costs | 68,893 | 1,205 |
Tax effect | (17,882) | (311) |
Unrecognized periodic benefit costs | 51,011 | 894 |
Other comprehensive income (loss), net of taxes | 51,011 | (4,071) |
Comprehensive income | $ 58,908 | $ 30,027 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 7,897 | $ 34,098 |
Earnings from discontinued operations | 0 | 2,977 |
Earnings from continuing operations | 7,897 | 31,121 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 16,728 | 17,169 |
Amortization of franchise tenant improvement allowances and other | 1,151 | 530 |
Deferred finance cost amortization | 1,755 | 704 |
Tax deficiency (excess tax benefit) from share-based compensation arrangements | 196 | (50) |
Deferred income taxes | 2,010 | (783) |
Share-based compensation expense | 3,184 | 1,909 |
Pension and postretirement expense | 38,978 | 456 |
(Gains) losses on cash surrender value of company-owned life insurance | (3,374) | 2,863 |
Gains on the sale of company-operated restaurants | (1,575) | (219) |
(Gains) losses on the disposition of property and equipment, net | (10,437) | 635 |
Non-cash operating lease costs | (7,668) | |
Impairment charges and other | 0 | 387 |
Changes in assets and liabilities, excluding dispositions: | ||
Accounts and other receivables | (5,619) | (3,154) |
Inventories | (253) | (232) |
Prepaid expenses and other current assets | (4,957) | 6,224 |
Accounts payable | (7,984) | 6,365 |
Accrued liabilities | (1,558) | (16,298) |
Pension and postretirement contributions | (2,025) | (2,111) |
Franchise tenant improvement allowance distributions | (3,682) | (3,247) |
Other | (80) | (4,668) |
Cash flows provided by operating activities | 22,687 | 37,601 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,202) | (11,183) |
Proceeds from the sale of property and equipment | 20,618 | 270 |
Proceeds from the sale and leaseback of assets | 0 | |
Proceeds from the sale of company-operated restaurants | 1,575 | 133 |
Collections on notes receivable | 0 | 6,517 |
Cash flows provided by (used in) investing activities | 32,364 | (4,263) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 0 | 114,298 |
Repayments of borrowings on revolving credit facilities | 0 | (117,300) |
Principal repayments on debt | (198) | (10,907) |
Debt issuance costs | (216) | (17) |
Dividends paid on common stock | (9,412) | (10,305) |
Proceeds from issuance of common stock | 184 | 114 |
Repurchases of common stock | (155,576) | (14,362) |
Change in book overdraft | 0 | 9,234 |
Payroll tax payments for equity award issuances | (3,108) | (2,498) |
Cash flows used in financing activities | (168,326) | (31,743) |
Cash flows provided by (used in) continuing operations | (113,275) | 1,595 |
Cash and restricted cash at beginning of period | 151,561 | 2,705 |
Cash and restricted cash at end of period | $ 38,286 | $ 4,300 |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 4 Months Ended |
Jan. 19, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Consolidated Balance Sheet Information | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) January 19, September 29, Accounts and other receivables, net: Trade $ 29,361 $ 36,907 Notes receivable 375 278 Income tax receivable 1,279 160 Property taxes receivable 17,713 32 Other 9,970 10,823 Allowance for doubtful accounts (5,122) (2,965) $ 53,576 $ 45,235 Prepaid expenses: Prepaid income taxes $ 7,470 $ 579 Prepaid advertising 32 1,838 Other 6,163 6,598 $ 13,665 $ 9,015 Other assets, net: Company-owned life insurance policies $ 116,127 $ 112,753 Deferred rent receivable 49,419 49,333 Franchise tenant improvement allowance 28,702 26,925 Other 18,535 17,674 $ 212,783 $ 206,685 Accrued liabilities: Insurance $ 27,852 $ 27,888 Payroll and related taxes 24,375 31,095 Deferred franchise fees 4,970 4,978 Sales and property taxes 8,731 4,268 Gift card liability 2,443 2,036 Other 49,918 49,818 $ 118,289 $ 120,083 Other long-term liabilities: Defined benefit pension plans $ 88,455 $ 120,260 Deferred franchise fees 40,566 41,295 Straight-line rent accrual — 29,537 Other 57,568 72,678 $ 186,589 $ 263,770 |
Basis Of Presentation
Basis Of Presentation | 4 Months Ended |
Jan. 19, 2020 | |
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: January 19, January 20, Company-operated 137 137 Franchise 2,107 2,104 Total system 2,244 2,241 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 September 29, 2019 (“2019 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2019 Form 10-K with the exception of the new lease accounting standard adopted in fiscal 2020, which is described below. 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 — The Company is comprised of one operating segment. Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2020 and 2019 include 52 weeks. Our first quarter includes 16-weeks and all other quarters include 12-weeks. All comparisons between 2020 and 2019 refer to the 16-weeks (“quarter”) ended January 19, 2020 and January 20, 2019, respectively, unless otherwise indicated. 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. Advertising costs — We administer a marketing fund which includes contractual contributions. In 2020 and 2019, marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues. In 2019, incremental contributions made by the Company were $2.0 million. There have been no incremental contributions made in 2020. Total contributions made by the Company, including incremental contributions, are included in “Selling, general, and administrative expenses” in the accompanying condensed consolidated statements of earnings and totaled $5.3 million and $7.2 million in 2020 and 2019, respectively. Effect of new accounting pronouncements adopted in fiscal 2020 — We adopted ASU 2016-02, Leases (Topic 842) (“ASC 842”) in the first quarter of 2020. The new guidance requires the recognition of lease liabilities, representing future minimum lease payments on a discounted basis, and corresponding right-of-use (“ROU”) assets on the balance sheet for most leases. The Company adopted the new guidance in the first quarter of 2020 using the alternative transition method; therefore, the comparative period has not been restated and continues to reported under the previous lease guidance. We elected the transition package of three practical expedients, which, among other items, permitted us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also elected the short-term lease recognition exemption for all leases that qualify, permitting us to not apply the recognition requirements of this standard to leases with a term of 12 months or less, and an accounting policy to not separate lease and non-lease components for underlying assets subject to real estate leases. As lessor, we elected for all classes of underlying leased assets to account for lease and non-lease components, primarily property taxes and maintenance, as a single lease component. We did not elect the use-of-hindsight practical expedient, and therefore continued to utilize lease terms determined under the existing lease guidance. The adoption had a material impact on our consolidated balance sheet. As a result of the adoption, we recognized operating lease assets and liabilities of $881 million and $931 million, respectively, at the date of adoption. The ROU assets were adjusted for certain lease-related assets and liabilities at adoption, primarily comprised of straight-line rent accruals of $29.0 million, incentives and unfavorable lease liabilities of $2.1 million, sublease loss and exit-related lease liabilities of $19.4 million, which were previously reported in “Accrued liabilities” and “Other long-term liabilities”, as well as favorable lease assets of $0.4 million, which were previously reported in “Intangible assets, net” in our condensed consolidated balance sheet. We also recorded a cumulative adjustment to opening retained earnings of $2.9 million, net of tax, as a result of the impairment of certain newly recognized ROU assets and derecognition of deferred gains and losses on sale-leaseback transactions upon transition to the new guidance. The effects of the changes made to the Company's condensed consolidated balance sheet as of September 29, 2019 for the adoption of the new lease guidance were as follows (in thousands) : Balance at September 29, 2019 Adjustments due to ASC 842 adoption Balance at September 30, 2019 Assets Other assets: Operating lease ROU assets $ — $ 880,564 $ 880,564 Intangible assets, net $ 425 $ (386) $ 39 Deferred income taxes $ 85,564 $ 1,006 $ 86,570 Liabilities and Stockholders’ Deficit Current liabilities: Current operating lease liabilities $ — $ 159,821 $ 159,821 Accrued liabilities $ 120,083 $ (4,702) $ 115,381 Long-term liabilities: Long-term operating lease liabilities, net of current portion $ — $ 770,818 $ 770,818 Other long-term liabilities $ 263,770 $ (41,883) $ 221,887 Stockholders’ deficit: Retained earnings $ 1,577,034 $ (2,870) $ 1,574,164 The accounting guidance for lessors remains largely unchanged from previous guidance, except for the presentation of certain lease costs that the Company passes through to lessees, including but not limited to, property taxes and maintenance. These costs are generally paid by the Company and reimbursed by the lessee. Historically, these costs have been recorded on a net basis in our condensed consolidated statements of earnings but are now presented gross upon adoption of the new guidance. As a result, we expect annual revenues and expenses reported in “Franchise rental revenues” and “Franchise occupancy expenses” to increase by approximately $37 million in fiscal 2020. Refer to Note 4, Leases , for further information on our leases and the impact on the Company’s accounting policies. Effect of new accounting pronouncements to be adopted in future periods — In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Revenue (Notes)
Revenue (Notes) | 4 Months Ended |
Jan. 19, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Nature of products and services — We derive revenue from retail sales at Jack in the Box company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants. Our franchise arrangements generally provide for an initial franchise fee of $50,000 per restaurant and generally require that franchisees pay royalty and marketing fees at 5% of gross sales. The agreement also requires franchisees to pay sourcing, technology and other miscellaneous fees. Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands) : Sixteen Weeks Ended January 19, January 20, Sources of revenue: Company restaurant sales $ 105,364 $ 102,832 Franchise rental revenues 96,084 83,890 Franchise royalties 50,243 49,507 Marketing fees 48,835 47,863 Technology and sourcing fees 4,924 3,951 Franchise fees and other services 2,223 2,743 Total revenue $ 307,673 $ 290,786 Contract liabilities — Our contract liabilities consist of deferred revenue resulting from initial fees received from franchisees for new restaurant openings or new franchise terms, which are generally recognized over the franchise term. We classify these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets. A summary of significant changes in our contract liabilities is presented below (in thousands) : Sixteen Weeks Ended January 19, January 20, Deferred franchise fees at beginning of period $ 46,273 $ 50,018 Revenue recognized during the period (1,632) (1,592) Additions during the period 895 500 Deferred franchise fees at end of period $ 45,536 $ 48,926 The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 19, 2020 (in thousands) : Remainder of 2020 $ 3,411 2021 4,926 2022 4,726 2023 4,572 2024 4,379 Thereafter 23,522 $ 45,536 We have applied the optional exemption, as provided for under Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty. |
Summary Of Refranchisings, Fran
Summary Of Refranchisings, Franchisee Development And Acquisitions | 4 Months Ended |
Jan. 19, 2020 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Summary Of Refranchisings, Franchisee Development And Acquisitions | SUMMARY OF REFRANCHISINGS AND FRANCHISEE DEVELOPMENTRefranchisings and franchisee development — Franchisees opened 11 new restaurants in 2020, compared to 9 in the prior year, and closed 10 restaurants in fiscal 2020, compared to 5 in 2019. In both comparative periods no company-operated restaurants were sold to franchisees. In 2020 and 2019, amounts presented in “Gains on the sale of company-operated restaurants” of $1.6 million and $0.2 million, respectively, pertain to meeting certain contingent consideration provisions included in the sale of restaurants in previous years. |
Leases
Leases | 4 Months Ended |
Jan. 19, 2020 | |
Leases [Abstract] | |
Operating Leases, Lessee | LEASES Nature of leases — We own restaurant sites and we also lease restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. We also lease certain restaurant and office equipment with initial terms generally ranging from 3 to 8 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees subsequent to refranchising transactions. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Significant assumptions and judgements — We evaluate the contracts entered into by the Company to determine whether such contracts contain leases. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee, or as an operating, sales-type or direct financing lease where the Company is a lessor, based on their terms. The lease term and incremental borrowing rate for each lease requires judgement by management and can impact the classification of our leases as well as the value of our lease assets and liabilities. When determining the lease term, we consider option periods available, and include option periods in the measurement of the lease ROU asset and lease liability where the exercise is reasonably certain to occur. As our leases do not provide an implicit discount rate, we have determined it is appropriate to use our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, in calculating our lease liabilities. Company as Lessee Leased assets and liabilities consisted of the following as of January 19, 2020 ( in thousands ): January 19, Assets: Operating lease ROU assets $ 884,213 Finance lease ROU assets (1) 2,742 Total ROU assets $ 886,955 Liabilities: Current operating lease liabilities $ 158,779 Current finance lease liabilities (2) 786 Long term operating lease liabilities 767,819 Long-term finance lease liabilities (2) 2,609 Total lease liabilities $ 929,993 ____________________________ (1) Included in “Property and equipment, net” on our condensed consolidated balance sheet. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our condensed consolidated balance sheet. The following table presents our lease cost components and other supplemental information related to our leases ( dollars in thousands ): Sixteen Weeks Ended January 19, Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 234 Interest on lease liabilities (2) 33 Operating lease cost (3) 58,512 Short-term lease cost (3) 1 Variable lease cost (3)(4) 12,507 $ 71,287 Weighted-average remaining lease term (in years): Finance leases 3.9 Operating leases 8.0 Weighted-average discount rate: Finance leases 3.4 % Operating leases 3.9 % ____________________________ (1) Included in “Depreciation and amortization” in our condensed consolidated statement of earnings. (2) Included in “Interest expense, net” in our condensed consolidated statement of earnings. (3) Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other”, respectively in our condensed consolidated statement of earnings. For our closed restaurants, these costs are included in “Impairment and other, net” and all other costs are included in “Selling, general and administrative expenses”. (4) Includes $11.6 million of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents as of January 19, 2020, future minimum lease payments for non-cancellable leases ( in thousands ): Finance Leases Operating Leases Fiscal year: Remainder of 2020 $ 647 $ 130,553 2021 879 193,874 2022 879 153,011 2023 866 124,843 2024 390 94,034 Thereafter 40 386,822 Total minimum lease payments $ 3,701 $ 1,083,137 Less: imputed interest (306) (156,539) Present value of lease liability $ 3,395 $ 926,598 The following table presents as of September 29, 2019, future minimum lease payments for non-cancellable leases ( in thousands ): Capital Leases Operating Leases Fiscal year: 2020 $ 879 $ 193,313 2021 879 186,226 2022 879 145,794 2023 864 117,753 2024 396 87,420 Thereafter 40 363,505 Total minimum lease payments $ 3,937 $ 1,094,011 Less: imputed interest (343) Present value of lease liability $ 3,594 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): Sixteen Weeks Ended January 19, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65,996 Operating cash flows from financing leases $ 33 Financing cash flows from financing leases $ 198 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,311 Financing leases $ — Sale leaseback transactions — In 2020, we completed a sale leaseback transaction of a multi-tenant commercial property in Los Angeles, California and leased back the parcel on which a company-operated restaurant is located. The Company received net proceeds of $17.4 million and recognized a $0.2 million loss on the sale. The initial term on the lease is 20 years and has been accounted for as an operating lease. In 2020, we completed the sale of one of our corporate office buildings as we move forward with our previously announced consolidation of our headquarters. We entered into a lease with the buyer to leaseback the property for up to 18 months with an option to terminate earlier without penalty, upon providing a 90-day notice. The net proceeds received on the sale was $20.6 million and the lease has been accounted for as an operating lease. A gain on the sale of $10.8 million was recognized during the quarter, and is presented within “Impairment and other charges, net” in our condensed consolidated statement of earnings. Company as Lessor The following table presents rental income ( in thousands ): Sixteen Weeks Ended January 19, 2020 Owned Properties Leased Properties Total Operating lease income - franchise $ 6,095 $ 66,568 $ 72,663 Variable lease income - franchise 2,716 20,704 23,420 Franchise rental revenues $ 8,811 $ 87,272 $ 96,083 Operating lease income - closed restaurants and other (1) $ — $ 2,057 $ 2,057 ____________________________ (1) Primarily relates to closed restaurant properties included in “Impairment and other, net” in our condensed consolidated statement of earnings. The following table presents as of January 19, 2020, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): January 19, Fiscal year: Remainder of 2020 $ 159,654 2021 256,052 2022 232,129 2023 225,488 2024 200,425 Thereafter 1,237,167 Total minimum rental receipts $ 2,310,915 The following table presents as of September 29, 2019, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): September 29, Fiscal year: 2020 $ 239,219 2021 255,315 2022 231,394 2023 224,605 2024 199,442 Thereafter 1,215,811 Total minimum rental receipts $ 2,365,786 |
Finance Leases, Lessee | LEASES Nature of leases — We own restaurant sites and we also lease restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. We also lease certain restaurant and office equipment with initial terms generally ranging from 3 to 8 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees subsequent to refranchising transactions. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Significant assumptions and judgements — We evaluate the contracts entered into by the Company to determine whether such contracts contain leases. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee, or as an operating, sales-type or direct financing lease where the Company is a lessor, based on their terms. The lease term and incremental borrowing rate for each lease requires judgement by management and can impact the classification of our leases as well as the value of our lease assets and liabilities. When determining the lease term, we consider option periods available, and include option periods in the measurement of the lease ROU asset and lease liability where the exercise is reasonably certain to occur. As our leases do not provide an implicit discount rate, we have determined it is appropriate to use our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, in calculating our lease liabilities. Company as Lessee Leased assets and liabilities consisted of the following as of January 19, 2020 ( in thousands ): January 19, Assets: Operating lease ROU assets $ 884,213 Finance lease ROU assets (1) 2,742 Total ROU assets $ 886,955 Liabilities: Current operating lease liabilities $ 158,779 Current finance lease liabilities (2) 786 Long term operating lease liabilities 767,819 Long-term finance lease liabilities (2) 2,609 Total lease liabilities $ 929,993 ____________________________ (1) Included in “Property and equipment, net” on our condensed consolidated balance sheet. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our condensed consolidated balance sheet. The following table presents our lease cost components and other supplemental information related to our leases ( dollars in thousands ): Sixteen Weeks Ended January 19, Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 234 Interest on lease liabilities (2) 33 Operating lease cost (3) 58,512 Short-term lease cost (3) 1 Variable lease cost (3)(4) 12,507 $ 71,287 Weighted-average remaining lease term (in years): Finance leases 3.9 Operating leases 8.0 Weighted-average discount rate: Finance leases 3.4 % Operating leases 3.9 % ____________________________ (1) Included in “Depreciation and amortization” in our condensed consolidated statement of earnings. (2) Included in “Interest expense, net” in our condensed consolidated statement of earnings. (3) Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other”, respectively in our condensed consolidated statement of earnings. For our closed restaurants, these costs are included in “Impairment and other, net” and all other costs are included in “Selling, general and administrative expenses”. (4) Includes $11.6 million of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents as of January 19, 2020, future minimum lease payments for non-cancellable leases ( in thousands ): Finance Leases Operating Leases Fiscal year: Remainder of 2020 $ 647 $ 130,553 2021 879 193,874 2022 879 153,011 2023 866 124,843 2024 390 94,034 Thereafter 40 386,822 Total minimum lease payments $ 3,701 $ 1,083,137 Less: imputed interest (306) (156,539) Present value of lease liability $ 3,395 $ 926,598 The following table presents as of September 29, 2019, future minimum lease payments for non-cancellable leases ( in thousands ): Capital Leases Operating Leases Fiscal year: 2020 $ 879 $ 193,313 2021 879 186,226 2022 879 145,794 2023 864 117,753 2024 396 87,420 Thereafter 40 363,505 Total minimum lease payments $ 3,937 $ 1,094,011 Less: imputed interest (343) Present value of lease liability $ 3,594 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): Sixteen Weeks Ended January 19, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65,996 Operating cash flows from financing leases $ 33 Financing cash flows from financing leases $ 198 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,311 Financing leases $ — Sale leaseback transactions — In 2020, we completed a sale leaseback transaction of a multi-tenant commercial property in Los Angeles, California and leased back the parcel on which a company-operated restaurant is located. The Company received net proceeds of $17.4 million and recognized a $0.2 million loss on the sale. The initial term on the lease is 20 years and has been accounted for as an operating lease. In 2020, we completed the sale of one of our corporate office buildings as we move forward with our previously announced consolidation of our headquarters. We entered into a lease with the buyer to leaseback the property for up to 18 months with an option to terminate earlier without penalty, upon providing a 90-day notice. The net proceeds received on the sale was $20.6 million and the lease has been accounted for as an operating lease. A gain on the sale of $10.8 million was recognized during the quarter, and is presented within “Impairment and other charges, net” in our condensed consolidated statement of earnings. Company as Lessor The following table presents rental income ( in thousands ): Sixteen Weeks Ended January 19, 2020 Owned Properties Leased Properties Total Operating lease income - franchise $ 6,095 $ 66,568 $ 72,663 Variable lease income - franchise 2,716 20,704 23,420 Franchise rental revenues $ 8,811 $ 87,272 $ 96,083 Operating lease income - closed restaurants and other (1) $ — $ 2,057 $ 2,057 ____________________________ (1) Primarily relates to closed restaurant properties included in “Impairment and other, net” in our condensed consolidated statement of earnings. The following table presents as of January 19, 2020, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): January 19, Fiscal year: Remainder of 2020 $ 159,654 2021 256,052 2022 232,129 2023 225,488 2024 200,425 Thereafter 1,237,167 Total minimum rental receipts $ 2,310,915 The following table presents as of September 29, 2019, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): September 29, Fiscal year: 2020 $ 239,219 2021 255,315 2022 231,394 2023 224,605 2024 199,442 Thereafter 1,215,811 Total minimum rental receipts $ 2,365,786 |
Operating Leases, Lessor | LEASES Nature of leases — We own restaurant sites and we also lease restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. We also lease certain restaurant and office equipment with initial terms generally ranging from 3 to 8 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees subsequent to refranchising transactions. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Significant assumptions and judgements — We evaluate the contracts entered into by the Company to determine whether such contracts contain leases. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee, or as an operating, sales-type or direct financing lease where the Company is a lessor, based on their terms. The lease term and incremental borrowing rate for each lease requires judgement by management and can impact the classification of our leases as well as the value of our lease assets and liabilities. When determining the lease term, we consider option periods available, and include option periods in the measurement of the lease ROU asset and lease liability where the exercise is reasonably certain to occur. As our leases do not provide an implicit discount rate, we have determined it is appropriate to use our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, in calculating our lease liabilities. Company as Lessee Leased assets and liabilities consisted of the following as of January 19, 2020 ( in thousands ): January 19, Assets: Operating lease ROU assets $ 884,213 Finance lease ROU assets (1) 2,742 Total ROU assets $ 886,955 Liabilities: Current operating lease liabilities $ 158,779 Current finance lease liabilities (2) 786 Long term operating lease liabilities 767,819 Long-term finance lease liabilities (2) 2,609 Total lease liabilities $ 929,993 ____________________________ (1) Included in “Property and equipment, net” on our condensed consolidated balance sheet. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our condensed consolidated balance sheet. The following table presents our lease cost components and other supplemental information related to our leases ( dollars in thousands ): Sixteen Weeks Ended January 19, Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 234 Interest on lease liabilities (2) 33 Operating lease cost (3) 58,512 Short-term lease cost (3) 1 Variable lease cost (3)(4) 12,507 $ 71,287 Weighted-average remaining lease term (in years): Finance leases 3.9 Operating leases 8.0 Weighted-average discount rate: Finance leases 3.4 % Operating leases 3.9 % ____________________________ (1) Included in “Depreciation and amortization” in our condensed consolidated statement of earnings. (2) Included in “Interest expense, net” in our condensed consolidated statement of earnings. (3) Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other”, respectively in our condensed consolidated statement of earnings. For our closed restaurants, these costs are included in “Impairment and other, net” and all other costs are included in “Selling, general and administrative expenses”. (4) Includes $11.6 million of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents as of January 19, 2020, future minimum lease payments for non-cancellable leases ( in thousands ): Finance Leases Operating Leases Fiscal year: Remainder of 2020 $ 647 $ 130,553 2021 879 193,874 2022 879 153,011 2023 866 124,843 2024 390 94,034 Thereafter 40 386,822 Total minimum lease payments $ 3,701 $ 1,083,137 Less: imputed interest (306) (156,539) Present value of lease liability $ 3,395 $ 926,598 The following table presents as of September 29, 2019, future minimum lease payments for non-cancellable leases ( in thousands ): Capital Leases Operating Leases Fiscal year: 2020 $ 879 $ 193,313 2021 879 186,226 2022 879 145,794 2023 864 117,753 2024 396 87,420 Thereafter 40 363,505 Total minimum lease payments $ 3,937 $ 1,094,011 Less: imputed interest (343) Present value of lease liability $ 3,594 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): Sixteen Weeks Ended January 19, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65,996 Operating cash flows from financing leases $ 33 Financing cash flows from financing leases $ 198 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,311 Financing leases $ — Sale leaseback transactions — In 2020, we completed a sale leaseback transaction of a multi-tenant commercial property in Los Angeles, California and leased back the parcel on which a company-operated restaurant is located. The Company received net proceeds of $17.4 million and recognized a $0.2 million loss on the sale. The initial term on the lease is 20 years and has been accounted for as an operating lease. In 2020, we completed the sale of one of our corporate office buildings as we move forward with our previously announced consolidation of our headquarters. We entered into a lease with the buyer to leaseback the property for up to 18 months with an option to terminate earlier without penalty, upon providing a 90-day notice. The net proceeds received on the sale was $20.6 million and the lease has been accounted for as an operating lease. A gain on the sale of $10.8 million was recognized during the quarter, and is presented within “Impairment and other charges, net” in our condensed consolidated statement of earnings. Company as Lessor The following table presents rental income ( in thousands ): Sixteen Weeks Ended January 19, 2020 Owned Properties Leased Properties Total Operating lease income - franchise $ 6,095 $ 66,568 $ 72,663 Variable lease income - franchise 2,716 20,704 23,420 Franchise rental revenues $ 8,811 $ 87,272 $ 96,083 Operating lease income - closed restaurants and other (1) $ — $ 2,057 $ 2,057 ____________________________ (1) Primarily relates to closed restaurant properties included in “Impairment and other, net” in our condensed consolidated statement of earnings. The following table presents as of January 19, 2020, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): January 19, Fiscal year: Remainder of 2020 $ 159,654 2021 256,052 2022 232,129 2023 225,488 2024 200,425 Thereafter 1,237,167 Total minimum rental receipts $ 2,310,915 The following table presents as of September 29, 2019, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): September 29, Fiscal year: 2020 $ 239,219 2021 255,315 2022 231,394 2023 224,605 2024 199,442 Thereafter 1,215,811 Total minimum rental receipts $ 2,365,786 |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Jan. 19, 2020 | |
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 Significant Significant Fair value measurements as of January 19, 2020: Non-qualified deferred compensation plan (1) $ 29,857 $ 29,857 $ — $ — Total liabilities at fair value $ 29,857 $ 29,857 $ — $ — Fair value measurements as of September 29, 2019: Non-qualified deferred compensation plan (1) $ 30,104 $ 30,104 $ — $ — Total liabilities at fair value $ 30,104 $ 30,104 $ — $ — ____________________________ (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 did not have any transfers in or out of Level 1, 2 or 3. At January 19, 2020, the carrying value of our Class A-2 Notes was $1,300.0 million and fair value was $1,332.0 million. The fair value of the Class A-2 Notes was estimated using Level 2 inputs based on quoted market prices in markets that are not considered active markets. The estimated fair values of our finance lease obligations approximated their carrying values as of January 19, 2020. Non-financial assets and liabilities — Our non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, 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 2020, no material fair value adjustments were required. Refer to Note 7, Impairment and Other Charges, Net , for additional information regarding impairment charges. |
Derivative Instruments
Derivative Instruments | 4 Months Ended |
Jan. 19, 2020 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Interest rate swaps — We have used interest rate swaps to mitigate interest rate volatility with regard to variable rate borrowings under our senior credit facility. In June 2015, we entered into forward-starting interest rate swap agreements that effectively converted $500.0 million of our variable rate borrowings to a fixed rate from October 2018 through October 2022. These agreements were designated as cash flow hedges under the terms of the FASB authoritative guidance for derivatives and hedging. Since they were effective in offsetting the variability of the hedged cash flows, changes in the fair values of the derivatives were not included in earnings, but were included in other comprehensive income (“OCI”). These changes in fair value were subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments were made on our variable rate debt. Effective July 2, 2019, the Company terminated all interest rate swap agreements in anticipation of the securitization transaction and related retirement of our senior credit facility in the fourth quarter of 2019. During fiscal 2019, our interest rate swaps had no hedge ineffectiveness. Financial performance — The following table summarizes the OCI activity related to our interest rate swap derivative instruments and the amounts reclassified from accumulated OCI ( in thousands ): Location in Income Sixteen Weeks Ended January 20, Loss recognized in OCI N/A $ (7,167) Loss reclassified from accumulated OCI into net earnings Interest expense, net $ 479 |
Impairment and other charges, n
Impairment and other charges, net | 4 Months Ended |
Jan. 19, 2020 | |
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 ): Sixteen Weeks Ended January 19, January 20, Restructuring costs $ 1,045 $ 5,840 Costs of closed restaurants and other 101 866 Accelerated depreciation — 416 (Gains) losses on disposition of property and equipment, net (1) (10,437) 576 $ (9,291) $ 7,698 ____________________________ (1) In 2020, includes a $10.8 million gain related to the sale of one of our corporate office buildings. Refer to Note 4, Leases , for further information. Restructuring costs — Restructuring charges include costs resulting from the exploration of strategic alternatives (the “Strategic Alternatives Evaluation”) in 2019, which was concluded in the third quarter of 2019, and a plan that management initiated to reduce our general and administrative costs. The following is a summary of our restructuring costs (in thousands) : Sixteen Weeks Ended January 19, January 20, Employee severance and related costs $ 1,045 $ 4,506 Strategic Alternatives Evaluation (1) — 1,334 $ 1,045 $ 5,840 ____________________________ (1) Strategic Alternative Evaluation costs primarily relate to third party advisory services. We do not expect any significant severance and related costs for the remainder of fiscal 2020 related to these initiatives. Total accrued severance costs related to our restructuring activities are included in “Accrued liabilities” on our condensed consolidated balance sheets, and changed as follows during 2020 (in thousands) : Balance as of September 29, 2019 $ 2,100 Costs incurred 1,019 Cash payments (2,134) Balance as of January 19, 2020 $ 985 |
Income Taxes
Income Taxes | 4 Months Ended |
Jan. 19, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The income tax provisions reflect tax rates of 28.4% in 2020 and 23.1% in 2019. The major components of the year- over-year change in tax rates were a decrease in operating earnings before income tax, an adjustment related to state taxes recorded in the first quarter of 2019, an increase in the tax deficiency on stock compensation, partially offset by an increase in gains from the market performance of insurance products used to fund certain non-qualified retirement plans which are excluded from taxable income. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual 2020 rate could differ from our current estimates. The following is a summary of the components of each tax rate (dollars in thousands) : Sixteen Weeks Ended January 19, January 20, Income tax expense at statutory rate $ 2,868 26.0 % $ 10,434 25.8 % Stock compensation tax deficiency (excess tax benefit) 196 1.8 % (50) (0.1) % Company-owned life insurance policies (99) (0.9) % 231 0.6 % Adjustment to state tax provision — — % (1,027) (2.6) % Other 168 1.5 % (215) (0.5) % (1) $ 3,133 28.4 % $ 9,373 23.1 % ____________________________ (1) Percentages may not add due to rounding. |
Retirement Plans
Retirement Plans | 4 Months Ended |
Jan. 19, 2020 | |
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 frozen “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. Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment. In the fourth quarter of 2019, the Company amended its Qualified Plan to add a limited lump sum payment window whereby certain terminated participants with a vested pension benefit could elect to receive either an immediate lump sum or a monthly annuity payment of their accrued benefit. The offering period began September 16, 2019 and ended October 31, 2019. The participants that elected a lump sum benefit under the program were paid in December 2019, which triggered settlement accounting. As a result of the offering, the Company’s Qualified Plan paid $122.3 million from its plan assets to those who accepted the offer, thereby reducing the plan’s pension benefit obligation (“PBO”). The transaction had no cash impact to the Company but did result in a non-cash settlement charge of $38.6 million in the first quarter of fiscal 2020. 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 they 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 ): Sixteen Weeks Ended January 19, January 20, Defined benefit pension plans: Interest cost $ 5,076 $ 7,048 Expected return on plan assets (1) (6,656) (8,104) Pension settlement (2) 38,606 — Actuarial loss (2) 1,672 1,219 Amortization of unrecognized prior service costs (2) 26 35 Net periodic benefit cost $ 38,724 $ 198 Postretirement healthcare plans: Interest cost $ 248 $ 307 Actuarial loss (gain) (2) 6 (49) Net periodic benefit cost $ 254 $ 258 ___________________________ (1) Based on a return on asset, net of administrative expenses, assumption of 5.8% determined at the end of fiscal 2019, subsequently updated to 5.9% as of December 31, 2019 upon remeasurement of the Qualified Plan’s assets and PBO as required by settlement accounting. (2) Amounts were reclassified from accumulated OCI into net earnings as a component of “Other pension and post-retirement expenses, net.” Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of January 1, 2019, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2020 contributions are as follows ( in thousands ): SERP Postretirement Net year-to-date contributions $ 1,639 $ 386 Remaining estimated net contributions during fiscal 2020 $ 3,732 $ 1,011 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 2020. |
Stockholders' Deficit
Stockholders' Deficit | 4 Months Ended |
Jan. 19, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | STOCKHOLDERS’ DEFICIT Summary of changes in stockholders’ deficit — A reconciliation of the beginning and ending amounts of stockholders’ deficit is presented below ( in thousands ): Sixteen Weeks Ended January 19, January 20, Balance at beginning of period $ (737,584) $ (591,699) Shares issued under stock plans, including tax benefit 184 115 Share-based compensation 3,184 1,909 Dividends declared (9,425) (10,318) Purchases of treasury stock (153,550) — Net earnings 7,897 34,098 Other comprehensive income (loss), net of taxes 51,011 (4,071) Cumulative-effect from a change in accounting principle (2,870) (37,330) Balance at end of period $ (841,153) $ (607,296) Repurchases of common stock — The Company repurchased 1.9 million shares of its common stock in the first quarter of fiscal 2020 at an average price of $81.41 per share for an aggregate cost of $153.5 million. As of January 19, 2020, this leaves approximately $122.2 million remaining under share repurchase programs authorized by the Board of Directors, consisting of $22.2 million that expires in November 2020 and $100.0 million that expires in November 2021. Repurchases of common stock included in our condensed consolidated statement of cash flows for fiscal 2020 include $2.0 million related to repurchase transactions traded in the prior year but settled in 2020. Dividends — During 2020, the Board of Directors declared a cash dividend of $0.40 per common share totaling $9.4 million. Future dividends are subject to approval by our Board of Directors. |
Average Shares Outstanding
Average Shares Outstanding | 4 Months Ended |
Jan. 19, 2020 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Average Shares Outstanding | AVERAGE SHARES OUTSTANDING The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding ( in thousands ): Sixteen Weeks Ended January 19, January 20, Weighted-average shares outstanding – basic 23,741 25,907 Effect of potentially dilutive securities: Nonvested stock awards and units 181 208 Stock options 7 11 Performance share awards 7 2 Weighted-average shares outstanding – diluted 23,936 26,128 Excluded from diluted weighted-average shares outstanding: Antidilutive 224 186 Performance conditions not satisfied at the end of the period 80 89 |
Contingencies and Legal Matters
Contingencies and Legal Matters | 4 Months Ended |
Jan. 19, 2020 | |
Legal Matters and Contingencies [Abstract] | |
Contingencies and Legal Matters | 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 liability is adverse to the Company 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 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 February 2019, plaintiff’s counsel reduced their earlier demand from $62.0 million to $42.0 million. In November 2019, the court issued a ruling on various dispositive motions, disallowing approximately $25.0 million in claimed damages. We have accrued an amount that is not material to our consolidated financial statements relating to claims for which we believe a loss is both probable and estimable. While we believe that additional losses beyond this accrual are reasonably possible, we cannot estimate a possible loss contingency or range of reasonably possible loss contingencies beyond this accrual. The parties are participating in a voluntary mediation on March 16, 2020. If the case does not resolve at mediation, we will continue to vigorously defend against this lawsuit. Marquez v. Jack in the Box Inc. — In August 2017, a former employee filed a class action lawsuit in California state court and as a Private Attorney General Act (“PAGA”) representative suit alleging that the Company failed to provide all non-exempt California employees with compliant rest and meal breaks, overtime pay, accurate wage statements, and final pay upon termination of employment. On January 29, 2020, the parties participated in voluntary mediation and reached a tentative agreement to settle the case. The settlement agreement is subject to documentation and court approval. During the first quarter of 2020, commensurate with the anticipated settlement, we recorded an accrual for legal settlement of $3.8 million. Ramirez v. Jack in the Box Inc. — On June 11, 2019, an unfavorable jury verdict was delivered in a wrongful termination lawsuit against the Company in Los Angeles Superior Court. Plaintiff in the case was a restaurant employee who was terminated in 2013. The jury’s verdict included $5.4 million in compensatory damages and $10.0 million in punitive damages. The Company filed post-trial motions with the trial judge for the purpose of setting aside or significantly reducing damages. These motions were granted, resulting in a reduction of damages from $15.4 million to $3.2 million. The plaintiff accepted the reduction. In October 2019, the plaintiff’s counsel filed a motion for attorney’s fees in the amount of $5.1 million. On January 9, 2020, the court issued its ruling awarding $3.9 million in attorney fees. As of January 19, 2020, we have recorded an accrual for legal settlement of $7.3 million within “Accrued liabilities” and a litigation insurance recovery receivable of $7.3 million, which represents the expected payment of the settlement by the Company’s insurance carriers, within “Accounts and other receivable, net” in our condensed consolidated balance sheet. Other legal matters — In addition to the matter described above, we are subject to normal and routine litigation brought by former or current 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. We record receivables from third party insurers when recovery has been determined to be probable. 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 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. |
Discontinued Operations
Discontinued Operations | 4 Months Ended |
Jan. 19, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Qdoba — In December 2017, we entered into a stock purchase agreement (the “Qdoba Purchase Agreement”) with the Buyer to sell all issued and outstanding shares of Qdoba. The Buyer completed the acquisition of Qdoba on March 21, 2018 (the “Qdoba Sale”). We also entered into a Transition Services Agreement with the Buyer pursuant to which the Buyer received certain services (the “Services”) to enable it to operate the Qdoba business after the closing of the Qdoba Sale. The Services included information technology, finance and accounting, human resources, supply chain and other corporate support services. Under the Agreement, the Services were provided at cost for a period of up to 12 months, with two 3-month extensions available for certain services. As of September 21, 2019, we are no longer providing transition services to Qdoba. In 2019, we recorded $3.7 million in the quarter in income related to the Services as a reduction of “Selling, general and administrative expenses” in the condensed consolidated statements of earnings. The following table presents Qdoba’s results of operations in periods which have been included in discontinued operations (in thousands, except per share data): Sixteen Weeks Ended January 20, Selling, general and administrative expenses $ (302) Loss on Qdoba Sale 85 Earnings from discontinued operations before income taxes 217 Income tax benefit (1) 2,760 Earnings from discontinued operations, net of income taxes $ 2,977 Basic and diluted earnings per share from discontinued operations: $ 0.11 ____________________________ (1) In fiscal 2019, the Company entered into a bilateral California election with Quidditch Acquisition, Inc. to retroactively treat the divestment of Qdoba Restaurant Corporation on March 21, 2018 as a sale of assets instead of a stock sale for income tax purposes. This election reduced the Company’s fiscal year 2018 California tax liability on the divestment by $2.8 million. 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 “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. Should we, as guarantor of the lease obligations, be required to make any lease payments due for the remaining term of the subject leases, the maximum amount we may be required to pay is approximately $31.2 million as of January 19, 2020. The lease terms extend for a maximum of approximately 16 more years as of January 19, 2020, 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 the likelihood of Qdoba defaulting on the assigned agreements was deemed to be less than probable. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash Flow Information | 4 Months Ended |
Jan. 19, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Consolidated Cash Flow Information | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION ( in thousands ) Sixteen Weeks Ended January 19, January 20, Non-cash investing and financing transactions: Decrease in obligations for treasury stock repurchases $ 2,025 $ 14,362 Decrease in obligations for purchases of property and equipment $ 2,377 $ 4,927 Increase in dividends accrued or converted to common stock equivalents $ 63 $ 58 Decrease in finance lease obligations from the termination of equipment and building leases $ — $ 7 |
Subsequent Events
Subsequent Events | 4 Months Ended |
Jan. 19, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividends — On February 18, 2020, the Board of Directors declared a cash dividend of $0.40 per common share, to be paid on March 17, 2020 to shareholders of record as of the close of business on March 3, 2020. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 4 Months Ended |
Jan. 19, 2020 | |
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 ® |
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 September 29, 2019 (“2019 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2019 Form 10-K with the exception of the new lease accounting standard adopted in fiscal 2020, which is described below. |
Segment reporting | Segment reporting — The Company is comprised of one operating segment. |
Fiscal year | Fiscal year — Our fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2020 and 2019 include 52 weeks. Our first quarter includes 16-weeks and all other quarters include 12-weeks. All comparisons between 2020 and 2019 refer to the 16-weeks (“quarter”) ended January 19, 2020 and January 20, 2019, respectively, unless otherwise indicated. |
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. |
Advertising costs | Advertising costs — We administer a marketing fund which includes contractual contributions. In 2020 and 2019, marketing fund contributions from franchise and company-operated restaurants were approximately 5.0% of gross revenues. In 2019, incremental contributions made by the Company were $2.0 million. There have been no incremental contributions made in 2020. Total contributions made by the Company, including incremental contributions, are included in “Selling, general, and administrative expenses” in the accompanying condensed consolidated statements of earnings and totaled $5.3 million and $7.2 million in 2020 and 2019, respectively. |
Effect of new accounting pronouncements adopted in fiscal 2020 | Effect of new accounting pronouncements adopted in fiscal 2020 — We adopted ASU 2016-02, Leases (Topic 842) (“ASC 842”) in the first quarter of 2020. The new guidance requires the recognition of lease liabilities, representing future minimum lease payments on a discounted basis, and corresponding right-of-use (“ROU”) assets on the balance sheet for most leases. The Company adopted the new guidance in the first quarter of 2020 using the alternative transition method; therefore, the comparative period has not been restated and continues to reported under the previous lease guidance. We elected the transition package of three practical expedients, which, among other items, permitted us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also elected the short-term lease recognition exemption for all leases that qualify, permitting us to not apply the recognition requirements of this standard to leases with a term of 12 months or less, and an accounting policy to not separate lease and non-lease components for underlying assets subject to real estate leases. As lessor, we elected for all classes of underlying leased assets to account for lease and non-lease components, primarily property taxes and maintenance, as a single lease component. We did not elect the use-of-hindsight practical expedient, and therefore continued to utilize lease terms determined under the existing lease guidance. The adoption had a material impact on our consolidated balance sheet. As a result of the adoption, we recognized operating lease assets and liabilities of $881 million and $931 million, respectively, at the date of adoption. The ROU assets were adjusted for certain lease-related assets and liabilities at adoption, primarily comprised of straight-line rent accruals of $29.0 million, incentives and unfavorable lease liabilities of $2.1 million, sublease loss and exit-related lease liabilities of $19.4 million, which were previously reported in “Accrued liabilities” and “Other long-term liabilities”, as well as favorable lease assets of $0.4 million, which were previously reported in “Intangible assets, net” in our condensed consolidated balance sheet. We also recorded a cumulative adjustment to opening retained earnings of $2.9 million, net of tax, as a result of the impairment of certain newly recognized ROU assets and derecognition of deferred gains and losses on sale-leaseback transactions upon transition to the new guidance. The effects of the changes made to the Company's condensed consolidated balance sheet as of September 29, 2019 for the adoption of the new lease guidance were as follows (in thousands) : Balance at September 29, 2019 Adjustments due to ASC 842 adoption Balance at September 30, 2019 Assets Other assets: Operating lease ROU assets $ — $ 880,564 $ 880,564 Intangible assets, net $ 425 $ (386) $ 39 Deferred income taxes $ 85,564 $ 1,006 $ 86,570 Liabilities and Stockholders’ Deficit Current liabilities: Current operating lease liabilities $ — $ 159,821 $ 159,821 Accrued liabilities $ 120,083 $ (4,702) $ 115,381 Long-term liabilities: Long-term operating lease liabilities, net of current portion $ — $ 770,818 $ 770,818 Other long-term liabilities $ 263,770 $ (41,883) $ 221,887 Stockholders’ deficit: Retained earnings $ 1,577,034 $ (2,870) $ 1,574,164 The accounting guidance for lessors remains largely unchanged from previous guidance, except for the presentation of certain lease costs that the Company passes through to lessees, including but not limited to, property taxes and maintenance. These costs are generally paid by the Company and reimbursed by the lessee. Historically, these costs have been recorded on a net basis in our condensed consolidated statements of earnings but are now presented gross upon adoption of the new guidance. As a result, we expect annual revenues and expenses reported in “Franchise rental revenues” and “Franchise occupancy expenses” to increase by approximately $37 million in fiscal 2020. Refer to Note 4, Leases , for further information on our leases and the impact on the Company’s accounting policies. Effect of new accounting pronouncements to be adopted in future periods — In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
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: January 19, January 20, Company-operated 137 137 Franchise 2,107 2,104 Total system 2,244 2,241 |
Balance sheet Impact for the Adoption of New Lease Guidance | The effects of the changes made to the Company's condensed consolidated balance sheet as of September 29, 2019 for the adoption of the new lease guidance were as follows (in thousands) : Balance at September 29, 2019 Adjustments due to ASC 842 adoption Balance at September 30, 2019 Assets Other assets: Operating lease ROU assets $ — $ 880,564 $ 880,564 Intangible assets, net $ 425 $ (386) $ 39 Deferred income taxes $ 85,564 $ 1,006 $ 86,570 Liabilities and Stockholders’ Deficit Current liabilities: Current operating lease liabilities $ — $ 159,821 $ 159,821 Accrued liabilities $ 120,083 $ (4,702) $ 115,381 Long-term liabilities: Long-term operating lease liabilities, net of current portion $ — $ 770,818 $ 770,818 Other long-term liabilities $ 263,770 $ (41,883) $ 221,887 Stockholders’ deficit: Retained earnings $ 1,577,034 $ (2,870) $ 1,574,164 The accounting guidance for lessors remains largely unchanged from previous guidance, except for the presentation of certain lease costs that the Company passes through to lessees, including but not limited to, property taxes and maintenance. These costs are generally paid by the Company and reimbursed by the lessee. Historically, these costs have been recorded on a net basis in our condensed consolidated statements of earnings but are now presented gross upon adoption of the new guidance. As a result, we expect annual revenues and expenses reported in “Franchise rental revenues” and “Franchise occupancy expenses” to increase by approximately $37 million in fiscal 2020. Refer to Note 4, Leases |
Revenue (Tables)
Revenue (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands) : Sixteen Weeks Ended January 19, January 20, Sources of revenue: Company restaurant sales $ 105,364 $ 102,832 Franchise rental revenues 96,084 83,890 Franchise royalties 50,243 49,507 Marketing fees 48,835 47,863 Technology and sourcing fees 4,924 3,951 Franchise fees and other services 2,223 2,743 Total revenue $ 307,673 $ 290,786 |
Changes in Contract Liabilities | A summary of significant changes in our contract liabilities is presented below (in thousands) : Sixteen Weeks Ended January 19, January 20, Deferred franchise fees at beginning of period $ 46,273 $ 50,018 Revenue recognized during the period (1,632) (1,592) Additions during the period 895 500 Deferred franchise fees at end of period $ 45,536 $ 48,926 |
Remaining Performance Obligation, Expected Timing of Satisfaction | The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 19, 2020 (in thousands) : Remainder of 2020 $ 3,411 2021 4,926 2022 4,726 2023 4,572 2024 4,379 Thereafter 23,522 $ 45,536 |
Leases (Tables)
Leases (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Leases [Abstract] | |
Lessee, Supplemental Balance Sheet Information | Company as Lessee Leased assets and liabilities consisted of the following as of January 19, 2020 ( in thousands ): January 19, Assets: Operating lease ROU assets $ 884,213 Finance lease ROU assets (1) 2,742 Total ROU assets $ 886,955 Liabilities: Current operating lease liabilities $ 158,779 Current finance lease liabilities (2) 786 Long term operating lease liabilities 767,819 Long-term finance lease liabilities (2) 2,609 Total lease liabilities $ 929,993 ____________________________ (1) Included in “Property and equipment, net” on our condensed consolidated balance sheet. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our condensed consolidated balance sheet. |
Lease Costs, Lessee | The following table presents our lease cost components and other supplemental information related to our leases ( dollars in thousands ): Sixteen Weeks Ended January 19, Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 234 Interest on lease liabilities (2) 33 Operating lease cost (3) 58,512 Short-term lease cost (3) 1 Variable lease cost (3)(4) 12,507 $ 71,287 Weighted-average remaining lease term (in years): Finance leases 3.9 Operating leases 8.0 Weighted-average discount rate: Finance leases 3.4 % Operating leases 3.9 % ____________________________ (1) Included in “Depreciation and amortization” in our condensed consolidated statement of earnings. (2) Included in “Interest expense, net” in our condensed consolidated statement of earnings. (3) Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other”, respectively in our condensed consolidated statement of earnings. For our closed restaurants, these costs are included in “Impairment and other, net” and all other costs are included in “Selling, general and administrative expenses”. (4) Includes $11.6 million of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): Sixteen Weeks Ended January 19, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65,996 Operating cash flows from financing leases $ 33 Financing cash flows from financing leases $ 198 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,311 Financing leases $ — |
Operating Lease, Future Minimum Lease Payments | The following table presents as of January 19, 2020, future minimum lease payments for non-cancellable leases ( in thousands ): Finance Leases Operating Leases Fiscal year: Remainder of 2020 $ 647 $ 130,553 2021 879 193,874 2022 879 153,011 2023 866 124,843 2024 390 94,034 Thereafter 40 386,822 Total minimum lease payments $ 3,701 $ 1,083,137 Less: imputed interest (306) (156,539) Present value of lease liability $ 3,395 $ 926,598 |
Finance Lease, Future Minimum Lease Payments | The following table presents as of January 19, 2020, future minimum lease payments for non-cancellable leases ( in thousands ): Finance Leases Operating Leases Fiscal year: Remainder of 2020 $ 647 $ 130,553 2021 879 193,874 2022 879 153,011 2023 866 124,843 2024 390 94,034 Thereafter 40 386,822 Total minimum lease payments $ 3,701 $ 1,083,137 Less: imputed interest (306) (156,539) Present value of lease liability $ 3,395 $ 926,598 |
Future Minimum Rental Payments for Operating Leases under Topic 840 | The following table presents as of September 29, 2019, future minimum lease payments for non-cancellable leases ( in thousands ): Capital Leases Operating Leases Fiscal year: 2020 $ 879 $ 193,313 2021 879 186,226 2022 879 145,794 2023 864 117,753 2024 396 87,420 Thereafter 40 363,505 Total minimum lease payments $ 3,937 $ 1,094,011 Less: imputed interest (343) Present value of lease liability $ 3,594 |
Future Minimum Lease Payments for Capital Leases under Topic 840 | Capital Leases Operating Leases Fiscal year: 2020 $ 879 $ 193,313 2021 879 186,226 2022 879 145,794 2023 864 117,753 2024 396 87,420 Thereafter 40 363,505 Total minimum lease payments $ 3,937 $ 1,094,011 Less: imputed interest (343) Present value of lease liability $ 3,594 |
Lease Income | Company as Lessor The following table presents rental income ( in thousands ): Sixteen Weeks Ended January 19, 2020 Owned Properties Leased Properties Total Operating lease income - franchise $ 6,095 $ 66,568 $ 72,663 Variable lease income - franchise 2,716 20,704 23,420 Franchise rental revenues $ 8,811 $ 87,272 $ 96,083 Operating lease income - closed restaurants and other (1) $ — $ 2,057 $ 2,057 ____________________________ |
Future Minimum Rental Receipts | The following table presents as of January 19, 2020, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): January 19, Fiscal year: Remainder of 2020 $ 159,654 2021 256,052 2022 232,129 2023 225,488 2024 200,425 Thereafter 1,237,167 Total minimum rental receipts $ 2,310,915 |
Future Minimum Rental Receipts for Noncancelable Leases under Topic 840 | The following table presents as of September 29, 2019, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): September 29, Fiscal year: 2020 $ 239,219 2021 255,315 2022 231,394 2023 224,605 2024 199,442 Thereafter 1,215,811 Total minimum rental receipts $ 2,365,786 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
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 Significant Significant Fair value measurements as of January 19, 2020: Non-qualified deferred compensation plan (1) $ 29,857 $ 29,857 $ — $ — Total liabilities at fair value $ 29,857 $ 29,857 $ — $ — Fair value measurements as of September 29, 2019: Non-qualified deferred compensation plan (1) $ 30,104 $ 30,104 $ — $ — Total liabilities at fair value $ 30,104 $ 30,104 $ — $ — ____________________________ (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. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
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 and the amounts reclassified from accumulated OCI ( in thousands ): Location in Income Sixteen Weeks Ended January 20, Loss recognized in OCI N/A $ (7,167) Loss reclassified from accumulated OCI into net earnings Interest expense, net $ 479 |
Impairment and other charges,_2
Impairment and other charges, net (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
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 ): Sixteen Weeks Ended January 19, January 20, Restructuring costs $ 1,045 $ 5,840 Costs of closed restaurants and other 101 866 Accelerated depreciation — 416 (Gains) losses on disposition of property and equipment, net (1) (10,437) 576 $ (9,291) $ 7,698 ____________________________ (1) In 2020, includes a $10.8 million gain related to the sale of one of our corporate office buildings. Refer to Note 4, Leases |
Restructuring and Related Costs | The following is a summary of our restructuring costs (in thousands) : Sixteen Weeks Ended January 19, January 20, Employee severance and related costs $ 1,045 $ 4,506 Strategic Alternatives Evaluation (1) — 1,334 $ 1,045 $ 5,840 ____________________________ (1) Strategic Alternative Evaluation costs primarily relate 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” on our condensed consolidated balance sheets, and changed as follows during 2020 (in thousands) : Balance as of September 29, 2019 $ 2,100 Costs incurred 1,019 Cash payments (2,134) Balance as of January 19, 2020 $ 985 |
Income Taxes (Tables)
Income Taxes (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following is a summary of the components of each tax rate (dollars in thousands) : Sixteen Weeks Ended January 19, January 20, Income tax expense at statutory rate $ 2,868 26.0 % $ 10,434 25.8 % Stock compensation tax deficiency (excess tax benefit) 196 1.8 % (50) (0.1) % Company-owned life insurance policies (99) (0.9) % 231 0.6 % Adjustment to state tax provision — — % (1,027) (2.6) % Other 168 1.5 % (215) (0.5) % (1) $ 3,133 28.4 % $ 9,373 23.1 % ____________________________ (1) Percentages may not add due to rounding. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
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 ): Sixteen Weeks Ended January 19, January 20, Defined benefit pension plans: Interest cost $ 5,076 $ 7,048 Expected return on plan assets (1) (6,656) (8,104) Pension settlement (2) 38,606 — Actuarial loss (2) 1,672 1,219 Amortization of unrecognized prior service costs (2) 26 35 Net periodic benefit cost $ 38,724 $ 198 Postretirement healthcare plans: Interest cost $ 248 $ 307 Actuarial loss (gain) (2) 6 (49) Net periodic benefit cost $ 254 $ 258 ___________________________ (1) Based on a return on asset, net of administrative expenses, assumption of 5.8% determined at the end of fiscal 2019, subsequently updated to 5.9% as of December 31, 2019 upon remeasurement of the Qualified Plan’s assets and PBO as required by settlement accounting. |
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, 2019, the date of our last actuarial funding valuation, there was no minimum contribution funding requirement. Details regarding 2020 contributions are as follows ( in thousands ): SERP Postretirement Net year-to-date contributions $ 1,639 $ 386 Remaining estimated net contributions during fiscal 2020 $ 3,732 $ 1,011 |
Stockholders' Deficit Summary o
Stockholders' Deficit Summary of Changes in Equity (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Summary of changes in stockholders’ deficit — A reconciliation of the beginning and ending amounts of stockholders’ deficit is presented below ( in thousands ): Sixteen Weeks Ended January 19, January 20, Balance at beginning of period $ (737,584) $ (591,699) Shares issued under stock plans, including tax benefit 184 115 Share-based compensation 3,184 1,909 Dividends declared (9,425) (10,318) Purchases of treasury stock (153,550) — Net earnings 7,897 34,098 Other comprehensive income (loss), net of taxes 51,011 (4,071) Cumulative-effect from a change in accounting principle (2,870) (37,330) Balance at end of period $ (841,153) $ (607,296) |
Average Shares Outstanding (Tab
Average Shares Outstanding (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
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 ): Sixteen Weeks Ended January 19, January 20, Weighted-average shares outstanding – basic 23,741 25,907 Effect of potentially dilutive securities: Nonvested stock awards and units 181 208 Stock options 7 11 Performance share awards 7 2 Weighted-average shares outstanding – diluted 23,936 26,128 Excluded from diluted weighted-average shares outstanding: Antidilutive 224 186 Performance conditions not satisfied at the end of the period 80 89 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents Qdoba’s results of operations in periods which have been included in discontinued operations (in thousands, except per share data): Sixteen Weeks Ended January 20, Selling, general and administrative expenses $ (302) Loss on Qdoba Sale 85 Earnings from discontinued operations before income taxes 217 Income tax benefit (1) 2,760 Earnings from discontinued operations, net of income taxes $ 2,977 Basic and diluted earnings per share from discontinued operations: $ 0.11 ____________________________ (1) In |
Supplemental Consolidated Cas_2
Supplemental Consolidated Cash Flow Information (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Information Related To Cash Flows | Sixteen Weeks Ended January 19, January 20, Non-cash investing and financing transactions: Decrease in obligations for treasury stock repurchases $ 2,025 $ 14,362 Decrease in obligations for purchases of property and equipment $ 2,377 $ 4,927 Increase in dividends accrued or converted to common stock equivalents $ 63 $ 58 Decrease in finance lease obligations from the termination of equipment and building leases $ — $ 7 |
Supplemental Consolidated Bal_2
Supplemental Consolidated Balance Sheet Information (Tables) | 4 Months Ended |
Jan. 19, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Supplemental Balance Sheet Disclosures | January 19, September 29, Accounts and other receivables, net: Trade $ 29,361 $ 36,907 Notes receivable 375 278 Income tax receivable 1,279 160 Property taxes receivable 17,713 32 Other 9,970 10,823 Allowance for doubtful accounts (5,122) (2,965) $ 53,576 $ 45,235 Prepaid expenses: Prepaid income taxes $ 7,470 $ 579 Prepaid advertising 32 1,838 Other 6,163 6,598 $ 13,665 $ 9,015 Other assets, net: Company-owned life insurance policies $ 116,127 $ 112,753 Deferred rent receivable 49,419 49,333 Franchise tenant improvement allowance 28,702 26,925 Other 18,535 17,674 $ 212,783 $ 206,685 Accrued liabilities: Insurance $ 27,852 $ 27,888 Payroll and related taxes 24,375 31,095 Deferred franchise fees 4,970 4,978 Sales and property taxes 8,731 4,268 Gift card liability 2,443 2,036 Other 49,918 49,818 $ 118,289 $ 120,083 Other long-term liabilities: Defined benefit pension plans $ 88,455 $ 120,260 Deferred franchise fees 40,566 41,295 Straight-line rent accrual — 29,537 Other 57,568 72,678 $ 186,589 $ 263,770 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) $ in Thousands | Sep. 30, 2019USD ($) | Jan. 19, 2020USD ($)restaurantsegment | Jan. 20, 2019USD ($)restaurant |
Segment Reporting Information [Line Items] | |||
Number of restaurants | restaurant | 2,244 | 2,241 | |
Number of operating segments | segment | 1 | ||
Contractual obligation (percent) | 5.00% | ||
Incremental Corporate Advertising Contributions | $ 2,000 | ||
Marketing and advertising expense | $ 5,300 | 7,200 | |
Straight-line rent accrual | $ 29,000 | ||
Unfavorable lease liabilities | 2,100 | ||
Exit-related lease liabilities | 19,400 | ||
Favorable lease assets | 400 | ||
Cumulative-effect from a change in accounting principle | $ (2,870) | $ (37,330) | |
Entity Operated Units | |||
Segment Reporting Information [Line Items] | |||
Number of restaurants | restaurant | 137 | 137 | |
Franchised Units | |||
Segment Reporting Information [Line Items] | |||
Number of restaurants | restaurant | 2,107 | 2,104 |
Basis of Presentation - Leases
Basis of Presentation - Leases (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | |||
Jan. 19, 2020 | Jan. 20, 2019 | Sep. 27, 2020 | Sep. 30, 2019 | Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease liabilities | $ 926,598 | ||||
Right-of-use assets | 884,213 | $ 880,564 | |||
Revenues | 307,673 | $ 290,786 | |||
Expenses | 237,723 | $ 232,462 | |||
Assets | |||||
Intangible assets, net | 37 | 39 | $ 425 | ||
Deferred tax assets | 66,675 | 86,570 | 85,564 | ||
Liabilities and Stockholders’ Deficit | |||||
Current operating lease liabilities | 158,779 | 159,821 | |||
Accrued liabilities | 118,289 | 115,381 | 120,083 | ||
Long-term operating lease liabilities, net of current portion | 767,819 | 770,818 | |||
Other long-term liabilities | 186,589 | 221,887 | 263,770 | ||
Retained earnings | $ 1,572,586 | 1,574,164 | $ 1,577,034 | ||
Accounting Standards Update 2016-02 | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease liabilities | 931,000 | ||||
Right-of-use assets | 880,564 | ||||
Assets | |||||
Intangible assets, net | (386) | ||||
Deferred tax assets | 1,006 | ||||
Liabilities and Stockholders’ Deficit | |||||
Current operating lease liabilities | 159,821 | ||||
Accrued liabilities | (4,702) | ||||
Long-term operating lease liabilities, net of current portion | 770,818 | ||||
Other long-term liabilities | (41,883) | ||||
Retained earnings | $ (2,870) | ||||
Accounting Standards Update 2016-02 | Forecast | |||||
Lessee, Lease, Description [Line Items] | |||||
Revenues | $ 37,000 | ||||
Expenses | $ 37,000 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Initial franchise fee | $ 50,000 | |
Royalty and marketing fee, percent of gross sales | 5.00% | |
Revenues | $ 307,673,000 | $ 290,786,000 |
Company Restaurant Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 105,364,000 | 102,832,000 |
Franchise Rental Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Franchise rental revenues | 96,084,000 | 83,890,000 |
Franchise Royalties | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 50,243,000 | 49,507,000 |
Marketing Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 48,835,000 | 47,863,000 |
Technology and Sourcing Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,924,000 | 3,951,000 |
Franchise Fees and Other Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,223,000 | $ 2,743,000 |
Revenue Changes in Contract Lia
Revenue Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred franchise fees at beginning of period | $ 46,273 | $ 50,018 |
Revenue recognized during the period | (1,632) | (1,592) |
Additions during the period | 895 | 500 |
Deferred franchise fees at end of period | $ 45,536 | $ 48,926 |
Revenue Estimated Future Franch
Revenue Estimated Future Franchise Fees (Details) $ in Thousands | Jan. 19, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 45,536 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-20 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 3,411 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,926 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,726 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,572 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4,379 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 23,522 |
Revenue Estimated Future Fran_2
Revenue Estimated Future Franchise Fees, Period (Details) | Jan. 19, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-20 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period |
Summary Of Refranchisings, Fr_2
Summary Of Refranchisings, Franchisee Development And Acquisitions (Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized) (Details) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020USD ($)restaurant | Jan. 20, 2019USD ($)restaurant | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | ||
Number of new restaurants opened by franchisees | 11 | 9 |
Number of franchised restaurants closed | (10) | (5) |
Number of Company-operated restaurants sold to franchisees | 0 | 0 |
Gains on the sale of company-operated restaurants | $ | $ (1,575) | $ (219) |
Leases (Details)
Leases (Details) | Jan. 19, 2020 |
Lessee, Lease, Description [Line Items] | |
Initial term of operating lease | 20 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term of operating lease | 1 year |
Minimum | Restaurant and Office Equipment | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating lease | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term of operating lease | 20 years |
Maximum | Restaurant and Office Equipment | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating lease | 8 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 19, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 884,213 | $ 880,564 |
Finance lease right-of-use asset | 2,742 | |
Total ROU assets | 886,955 | |
Current operating lease liabilities | 158,779 | 159,821 |
Current finance lease liabilities | 786 | |
Long-term operating lease liabilities, net of current portion | 767,819 | $ 770,818 |
Long-term finance lease liabilities | 2,609 | |
Total lease liabilities | $ 929,993 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 4 Months Ended |
Jan. 19, 2020USD ($) | |
Finance Lease Costs [Abstract] | |
Amortization of ROU assets | $ 234 |
Interest on lease liabilities | 33 |
Operating lease cost | 58,512 |
Short-term lease cost | 1 |
Variable lease cost | 12,507 |
Lease cost, total | $ 71,287 |
Weighted-average remaining lease term (in years): | |
Finance leases | 3 years 10 months 24 days |
Operating leases | 8 years |
Weighted-average discount rate: | |
Finance leases | 3.40% |
Operating leases | 3.90% |
Variable lease cost, executory costs reimbursed by sub-lessees | $ 11,600 |
Leases Finance and Operating Le
Leases Finance and Operating Lease Payments (Details) $ in Thousands | Jan. 19, 2020USD ($) |
Finance Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | $ 647 |
2021 | 879 |
2022 | 879 |
2023 | 866 |
2024 | 390 |
Thereafter | 40 |
Total minimum lease payments | 3,701 |
Less: imputed interest | (306) |
Present value of lease liability | 3,395 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | 130,553 |
2021 | 193,874 |
2022 | 153,011 |
2023 | 124,843 |
2024 | 94,034 |
Thereafter | 386,822 |
Total minimum lease payments | 1,083,137 |
Less: imputed interest | (156,539) |
Present value of lease liability | $ 926,598 |
Leases Capital and Operating Le
Leases Capital and Operating Lease Payments under ASC 840 (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Capital Lease Obligations [Abstract] | |
2020 | $ 879 |
2021 | 879 |
2022 | 879 |
2023 | 864 |
2024 | 396 |
Thereafter | 40 |
Total minimum lease payments | 3,937 |
Less: imputed interest | (343) |
Present value of lease liability | 3,594 |
Operating Leases [Abstract] | |
2020 | 193,313 |
2021 | 186,226 |
2022 | 145,794 |
2023 | 117,753 |
2024 | 87,420 |
Thereafter | 363,505 |
Total minimum lease payments | $ 1,094,011 |
Leases, Suplemental Cash Flow a
Leases, Suplemental Cash Flow and Non-cash Information (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities [Abstract] | ||
Operating cash flows from operating leases | $ 65,996 | |
Operating cash flows from financing leases | 33 | |
Financing cash flows from financing leases | 198 | |
Right-of-use Assets Obtained in Exchange for Lease Obligations [Abstract] | ||
Operating leases | 51,311 | |
Financing leases | $ 0 | |
Proceeds from the sale and leaseback of assets | $ 0 | |
Initial term of operating lease | 20 years | |
Notice period for termination of lease without penalty | 90 days | |
Multi-tenant Commercial Property | ||
Right-of-use Assets Obtained in Exchange for Lease Obligations [Abstract] | ||
Proceeds from the sale and leaseback of assets | $ 17,373 | |
Gain (loss) on sale and leaseback transaction | $ (200) | |
Initial term of operating lease | 20 years | |
Principal Executive Offices | ||
Right-of-use Assets Obtained in Exchange for Lease Obligations [Abstract] | ||
Proceeds from the sale and leaseback of assets | $ 20,600 | |
Gain (loss) on sale and leaseback transaction | $ 10,800 | |
Initial term of operating lease | 18 months |
Leases, Operating Lease Income
Leases, Operating Lease Income (Details) $ in Thousands | 4 Months Ended |
Jan. 19, 2020USD ($) | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - closed restaurants and other | $ 2,057 |
Owned Properties | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - closed restaurants and other | 0 |
Leased Properties | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - closed restaurants and other | 2,057 |
Franchise | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - franchise | 72,663 |
Variable lease income - franchise | 23,420 |
Franchise rental revenues | 96,083 |
Franchise | Owned Properties | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - franchise | 6,095 |
Variable lease income - franchise | 2,716 |
Franchise rental revenues | 8,811 |
Franchise | Leased Properties | |
Lessor, Lease, Description [Line Items] | |
Operating lease income - franchise | 66,568 |
Variable lease income - franchise | 20,704 |
Franchise rental revenues | $ 87,272 |
Leases Future Minimum Rental Re
Leases Future Minimum Rental Receipts (Details) $ in Thousands | Jan. 19, 2020USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Remainder of 2020 | $ 159,654 |
2021 | 256,052 |
2022 | 232,129 |
2023 | 225,488 |
2024 | 200,425 |
Thereafter | 1,237,167 |
Total minimum rental receipts | $ 2,310,915 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments Receivable under Topic 840 (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 239,219 |
2021 | 255,315 |
2022 | 231,394 |
2023 | 224,605 |
2024 | 199,442 |
Thereafter | 1,215,811 |
Total minimum rental receipts | $ 2,365,786 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Jan. 19, 2020 | Sep. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | $ 29,857 | $ 30,104 | |
Senior Secured Notes Class A2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of notes | 1,300,000 | ||
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] | 29,857 | 30,104 |
Significant Other Observable Inputs (2) (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | [1] | 0 | 0 |
Significant Other Observable Inputs (2) (Level 2) | Senior Secured Notes Class A2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 1,332,000 | ||
Significant Unobservable Inputs (2) (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 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 | [2] | 29,857 | 30,104 |
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],[2] | 29,857 | 30,104 |
Non Qualified Deferred Compensation Plan | Significant Other Observable Inputs (2) (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 0 | 0 | |
Non Qualified Deferred Compensation Plan | Significant Unobservable Inputs (2) (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | We did not have any transfers in or out of Level 1, 2 or 3. | ||
[2] | 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) $ in Thousands | Jun. 30, 2015USD ($) |
Interest Rate Swap 1 | |
Derivative [Line Items] | |
Derivative notional amount | $ 500,000 |
Derivative Instruments (Gains O
Derivative Instruments (Gains Or Losses Recognized On Interest Rate Swap Derivative Instruments) (Details) - Interest Rate Swaps - Derivatives Designated As Hedging Instrument $ in Thousands | 4 Months Ended |
Jan. 20, 2019USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss recognized in OCI | $ (7,167) |
Interest Expense, Net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss reclassified from accumulated OCI into net earnings | $ 479 |
Impairment and other charges,_3
Impairment and other charges, net Impairment and other charges, net (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Impairment, Disposition of Property and Equipment, and Restaurant Closing Costs [Line Items] | ||
Restructuring costs | $ 1,045 | $ 5,840 |
Costs of closed restaurants and other | 101 | 866 |
Accelerated depreciation | 0 | 416 |
(Gains) losses on the disposition of property and equipment, net | (10,437) | 635 |
Impairment And Other Costs Net | (9,291) | 7,698 |
Continuing Operations | ||
Impairment, Disposition of Property and Equipment, and Restaurant Closing Costs [Line Items] | ||
(Gains) losses on the disposition of property and equipment, net | (10,437) | $ 576 |
Gain related to sale of property | $ 10,800 |
Impairment and other charges,_4
Impairment and other charges, net Restructuring cost (Details) - USD ($) $ in Thousands | 4 Months Ended | ||
Jan. 19, 2020 | Jan. 20, 2019 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1,045 | $ 5,840 | |
Employee Severance and Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1,045 | 4,506 | |
Strategic Alternative Evaluation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0 | $ 1,334 | [1] |
[1] | Strategic Alternative Evaluation costs primarily relate to third party advisory services. |
Impairment and other charges,_5
Impairment and other charges, net Accrued severance (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Costs incurred | $ 1,045 | $ 5,840 |
Employee Severance and Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 2,100 | |
Costs incurred | 1,045 | $ 4,506 |
Cash payments | (2,134) | |
Restructuring reserve, ending | 985 | |
Employee Severance & Other | ||
Restructuring Reserve [Roll Forward] | ||
Costs incurred | $ 1,019 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rates (percent) | 28.40% | 23.10% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense at statutory rate, amount | $ 2,868 | $ 10,434 |
Income tax expense at statutory rate (percent) | 26.00% | 25.80% |
Stock compensation tax deficiency (excess tax benefit) | $ 196 | $ (50) |
Stock compensation tax deficiency (excess tax benefit) (percent) | 1.80% | (0.10%) |
Company-owned life insurance policies | $ (99) | $ 231 |
Company-owned life insurance policies (percent) | (0.90%) | 0.60% |
Adjustment to state tax provision | $ 0 | $ (1,027) |
Adjustment to state tax provision (percent) | 0.00% | (2.60%) |
Other, amount | $ 168 | $ (215) |
Other (percent) | 1.50% | (0.50%) |
Effective income tax rate, amount | $ 3,133 | $ 9,373 |
Effective income tax rates, percent | 28.40% | 23.10% |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) $ in Thousands | Dec. 31, 2019 | Sep. 29, 2019USD ($) | Jan. 19, 2020USD ($)defined_benefit_planhealthcare_plan | Jan. 20, 2019USD ($) | Sep. 29, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||||||
Number of sponsored defined benefit pension plans | defined_benefit_plan | 2 | |||||
Lump sum payments from Qualified Plan | $ 122,300 | |||||
Number of postretirement health care plans | healthcare_plan | 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension settlement | $ (38,600) | |||||
Return on asset assumption (percent) | 5.90% | 5.80% | ||||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost | 5,076 | $ 7,048 | ||||
Expected return on plan assets | (6,656) | (8,104) | ||||
Pension settlement | 38,606 | 0 | ||||
Actuarial loss (gain) | [1] | 1,672 | 1,219 | |||
Amortization of unrecognized prior service cost | [1] | 26 | 35 | |||
Net periodic benefit cost | 38,724 | 198 | ||||
Postretirement Healthcare Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost | 248 | 307 | ||||
Actuarial loss (gain) | [1] | 6 | (49) | |||
Net periodic benefit cost | $ 254 | $ 258 | ||||
[1] | Amounts were reclassified from accumulated OCI into net earnings as a component of “Other pension and post-retirement expenses, net |
Retirement Plans (Schedule Of F
Retirement Plans (Schedule Of Future Cash Flows) (Details) - USD ($) | 4 Months Ended | |
Jan. 19, 2020 | Jan. 01, 2018 | |
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 | $ 1,639,000 | |
Remaining estimated net contributions during fiscal 2020 | 3,732,000 | |
Postretirement Healthcare Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net year-to-date contributions | 386,000 | |
Remaining estimated net contributions during fiscal 2020 | $ 1,011,000 |
Stockholders' Deficit Summary_2
Stockholders' Deficit Summary of Changes in Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 19, 2020 | Jan. 20, 2019 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' deficit, beginning | $ (737,584) | $ (737,584) | $ (591,699) |
Shares issued under stock plans, including tax benefit | 184 | 115 | |
Share-based compensation | 3,184 | 1,909 | |
Dividends declared | (9,425) | (10,318) | |
Purchases of treasury stock | (153,550) | 0 | |
Net earnings | 7,897 | 34,098 | |
Other comprehensive income (loss), net of taxes | 51,011 | (4,071) | |
Cumulative-effect from a change in accounting principle | $ (2,870) | (37,330) | |
Stockholders' deficit, ending | $ (841,153) | $ (607,296) |
Stockholders' Deficit (Narrativ
Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 1.9 | |
Shares repurchased, average price per share | $ 81.41 | |
Repurchases of common stock | $ 153,550 | $ 0 |
Repurchase of common stock, remaining authorized amount | 122,200 | |
Stock repurchase transactions initiated in prior year | $ 2,000 | |
Cash dividend (in USD per share) | $ 0.40 | $ 0.40 |
Dividends | $ 9,400 | |
Amount Expiring in November 2020 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of common stock, remaining authorized amount | 22,200 | |
Amount Expiring in November 2021 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of common stock, remaining authorized amount | $ 100,000 |
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 | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Average Shares Outstanding [Line Items] | ||
Weighted-average shares outstanding – basic | 23,741 | 25,907 |
Weighted-average shares outstanding - diluted | 23,936 | 26,128 |
Excluded from diluted weighted-average shares outstanding, Antidilutive | 224 | 186 |
Excluded from diluted weighted-average shares, performance conditions not satisfied | 80 | 89 |
Nonvested stock awards and units | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 181 | 208 |
Stock options | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 7 | 11 |
Performance share awards | ||
Average Shares Outstanding [Line Items] | ||
Effect of potentially dilutive securities | 7 | 2 |
Contingencies and Legal Matte_2
Contingencies and Legal Matters Contingencies and Legal Matters (Details) - USD ($) $ in Thousands | Jan. 09, 2020 | Jun. 11, 2019 | Jan. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Feb. 28, 2019 | Sep. 29, 2019 | Jan. 19, 2020 |
Gessele v. Jack in the Box Inc. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Alleged total potential damages | $ 62,000 | $ 42,000 | ||||||
Claimed damages disallowed by the court | $ 25,000 | |||||||
Marquez v. Jack in the Box Inc. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Net charge for estimated litigation liability | $ 3,800 | |||||||
Ramirez v. Jack in the Box Inc. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Net charge for estimated litigation liability | 7,300 | |||||||
Litigation insurance recovery receivable | $ 7,300 | |||||||
Ramirez v. Jack in the Box Inc. | Judicial Ruling | ||||||||
Loss Contingencies [Line Items] | ||||||||
Jury verdict for compensatory damages | $ 5,400 | |||||||
Jury verdict for punitive damages | $ 10,000 | |||||||
Plaintiff motion for attorney's fees, amount | $ 5,100 | |||||||
Attorney fees awarded | $ 3,900 | |||||||
Ramirez v. Jack in the Box Inc. | Judicial Ruling | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | $ 15,400 | |||||||
Ramirez v. Jack in the Box Inc. | Judicial Ruling | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | $ 3,200 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020extnsion_option | Jan. 20, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operation, period of continuing involvement after disposal | 12 months | |
Discontinued operation, period of continuing involvement after disposal, number of extension options | extnsion_option | 2 | |
Discontinued operation, period of continuing involvement after disposal, service period extension option | 3 months | |
Other nonrecurring income | $ 3,700 | |
Disposal group, including discontinued operation, accrued income tax payable | $ 2,800 |
Discontinued Operations - Quart
Discontinued Operations - Quarterly Financial Information (Details) - Qdoba $ / shares in Units, $ in Thousands | 4 Months Ended |
Jan. 20, 2019USD ($)$ / shares | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Selling, general and administrative expenses | $ (302) |
Loss on Qdoba Sale | 85 |
Earnings from discontinued operations before income taxes | 217 |
Income tax benefit | 2,760 |
Earnings from discontinued operations, net of income taxes | $ (2,977) |
Basic and diluted earnings per share from discontinued operations (in USD per share) | $ / shares | $ 0.11 |
Discontinued Operations - Lease
Discontinued Operations - Lease Guarantees (Details) $ in Thousands | 4 Months Ended |
Jan. 19, 2020USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Lease guarantee | $ 31,200 |
Qdoba guaranteed leases, remaining term | 16 years |
Supplemental Consolidated Cas_3
Supplemental Consolidated Cash Flow Information (Additional Information Related To Cash Flows) (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Jan. 19, 2020 | Jan. 20, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Decrease in obligations for treasury stock repurchases | $ 2,025 | $ 14,362 |
Decrease in obligations for purchases of property and equipment | 2,377 | 4,927 |
Increase (decrease) in dividends accrued or converted to stock equivalents | 63 | 58 |
Decrease in finance lease obligations from the termination of equipment and building leases | $ 0 | $ 7 |
Supplemental Consolidated Bal_3
Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 19, 2020 | Sep. 30, 2019 | Sep. 29, 2019 |
Balance Sheet Related Disclosures [Abstract] | |||
Trade | $ 29,361 | $ 36,907 | |
Notes receivable | 375 | 278 | |
Income tax receivable | 1,279 | 160 | |
Property taxes receivable | 17,713 | 32 | |
Other | 9,970 | 10,823 | |
Allowance for doubtful accounts | (5,122) | (2,965) | |
Receivables, Net, Current | 53,576 | 45,235 | |
Prepaid income taxes | 7,470 | 579 | |
Prepaid advertising | 32 | 1,838 | |
Other | 6,163 | 6,598 | |
Prepaid Expense, Current | 13,665 | 9,015 | |
Company-owned life insurance policies | 116,127 | 112,753 | |
Deferred rent receivable | 49,419 | 49,333 | |
Franchise tenant improvement allowance | 28,702 | 26,925 | |
Other | 18,535 | 17,674 | |
Other assets, net | 212,783 | 206,685 | |
Insurance | 27,852 | 27,888 | |
Payroll and related taxes | 24,375 | 31,095 | |
Deferred franchise fees | 4,970 | 4,978 | |
Sales and property taxes | 8,731 | 4,268 | |
Gift card liability | 2,443 | 2,036 | |
Other | 49,918 | 49,818 | |
Accrued liabilities | 118,289 | $ 115,381 | 120,083 |
Defined benefit pension plans | 88,455 | 120,260 | |
Deferred franchise fees, Noncurrent | 40,566 | 41,295 | |
Straight-line rent accrual | 0 | 29,537 | |
Other | 57,568 | 72,678 | |
Other long-term liabilities | $ 186,589 | $ 221,887 | $ 263,770 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 18, 2020 | Jan. 19, 2020 | Jan. 20, 2019 |
Subsequent Event [Line Items] | |||
Cash dividend (in USD per share) | $ 0.40 | $ 0.40 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividend (in USD per share) | $ 0.40 |