Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 02, 2022 | Nov. 16, 2022 | Apr. 15, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 02, 2022 | ||
Current Fiscal Year End Date | --10-02 | ||
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 | 9357 Spectrum Center Blvd. | ||
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, $0.01 par value | ||
Trading Symbol | JACK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.9 | ||
Entity Common Stock, Shares Outstanding | 20,782,173 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement to be filed with the Securities and Exchange Commission in connection with the 2023 Annual Meeting of Stockholders are incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0000807882 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Oct. 02, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | San Diego, CA |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Current assets: | ||
Cash | $ 108,890 | $ 55,346 |
Restricted cash | 27,150 | 18,222 |
Accounts and other receivables, net | 103,803 | 74,335 |
Inventories | 5,264 | 2,335 |
Prepaid expenses | 16,095 | 12,682 |
Current assets held for sale | 17,019 | 1,692 |
Other current assets | 4,772 | 4,346 |
Total current assets | 282,993 | 168,958 |
Property and equipment, at cost: | ||
Land | 86,134 | 105,393 |
Buildings | 960,984 | 907,792 |
Restaurant and other equipment | 163,527 | 112,959 |
Construction in progress | 18,271 | 6,894 |
Property and equipment, at cost | 1,228,916 | 1,133,038 |
Less accumulated depreciation and amortization | (810,752) | (810,124) |
Property and equipment, net | 418,164 | 322,914 |
Other assets: | ||
Operating lease right-of-use assets | 1,332,135 | 934,066 |
Intangible assets, net | 12,324 | 470 |
Trademarks | 283,500 | 0 |
Goodwill | 366,821 | 47,774 |
Deferred tax assets | 0 | 51,517 |
Other assets, net | 226,569 | 224,438 |
Total other assets | 2,221,349 | 1,258,265 |
Total assets | 2,922,506 | 1,750,137 |
Current liabilities: | ||
Current maturities of long-term debt | 30,169 | 894 |
Current operating lease liabilities | 171,311 | 150,636 |
Accounts payable | 66,271 | 29,119 |
Accrued liabilities | 253,932 | 148,417 |
Total current liabilities | 521,683 | 329,066 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 1,799,540 | 1,273,420 |
Long-term operating lease liabilities, net of current portion | 1,165,097 | 809,191 |
Deferred tax liabilities | 37,684 | 0 |
Other long-term liabilities | 134,694 | 156,342 |
Total long-term liabilities | 3,137,015 | 2,238,953 |
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, 82,580,599 and 82,536,059 issued, respectively | 826 | 825 |
Capital in excess of par value | 508,323 | 500,441 |
Retained earnings | 1,842,947 | 1,764,412 |
Accumulated other comprehensive loss | (53,982) | (74,254) |
Treasury stock, at cost, 61,799,221 and 61,523,475 shares, respectively | (3,034,306) | (3,009,306) |
Total stockholders’ deficit | (736,192) | (817,882) |
Total liabilities and stockholders' equity | $ 2,922,506 | $ 1,750,137 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 02, 2022 | Oct. 03, 2021 |
Stockholders’ deficit: | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, issued (in shares) | 82,580,599 | 82,536,059 |
Treasury stock (in shares) | 61,799,221 | 61,523,475 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Revenues | $ 1,468,083 | $ 1,143,670 | $ 1,021,506 | |
Operating costs and expenses, net: | ||||
Food and packaging | 216,345 | 113,006 | 102,449 | |
Payroll and employee benefits | 232,250 | 119,033 | 106,540 | |
Occupancy and other | 135,803 | 61,743 | 54,157 | |
Franchise occupancy expenses | 215,609 | 214,913 | 210,038 | |
Franchise support and other costs | 16,490 | 13,052 | 13,059 | |
Franchise advertising and other services expenses | 218,272 | 210,328 | 180,794 | |
Selling, general, and administrative expenses | 130,823 | 81,959 | 80,675 | |
Depreciation and amortization | 56,100 | 46,500 | 52,798 | |
Pre-opening costs | 1,110 | 775 | 166 | |
Other operating expense (income), net | 889 | (3,382) | (6,493) | |
Gains on the sale of company-operated restaurants | (3,878) | (4,203) | (3,261) | |
Total operating costs and expenses | 1,219,813 | 853,724 | 790,922 | |
Earnings from operations | 248,270 | 289,946 | 230,584 | |
Other pension and post-retirement expenses, net | 303 | 881 | 41,720 | |
Interest expense, net | 86,075 | 67,458 | 66,743 | |
Earnings from continuing operations and before income taxes | 161,892 | 221,607 | 122,121 | |
Income taxes | 46,111 | 55,852 | 32,727 | |
Earnings from continuing operations | 115,781 | 165,755 | 89,394 | |
Earnings from discontinued operations, net of income taxes | 0 | 0 | 370 | |
Net earnings | $ 115,781 | $ 165,755 | $ 89,764 | |
Net earnings per share — basic: | ||||
Earnings from continuing operations (in usd per share) | $ 5.46 | $ 7.40 | $ 3.87 | |
Earnings from discontinued operations (in usd per share) | 0 | 0 | 0.02 | |
Net earnings per share (in usd per share) | [1] | 5.46 | 7.40 | 3.88 |
Net earnings per share — diluted: | ||||
Earnings from continuing operations (in usd per share) | 5.45 | 7.37 | 3.84 | |
Earnings from discontinued operations (in usd per share) | 0 | 0 | 0.02 | |
Net earnings per share (in usd per share) | [1] | 5.45 | 7.37 | 3.86 |
Cash dividends declared per common share (in usd per share) | $ 1.76 | $ 1.68 | $ 1.20 | |
Company restaurant sales | ||||
Revenues | $ 701,070 | $ 387,766 | $ 348,987 | |
Franchise contracts | ||||
Revenues | 340,391 | 346,634 | 320,647 | |
Franchise royalties and other | ||||
Revenues | 216,821 | 204,725 | 178,319 | |
Franchise contributions for advertising and other services | ||||
Revenues | $ 209,801 | $ 204,545 | $ 173,553 | |
[1]Earnings per share may not add due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 115,781 | $ 165,755 | $ 89,764 |
Other comprehensive income: | |||
Actuarial gains (losses) arising during the period | 24,249 | 44,134 | (4,875) |
Actuarial losses and prior service cost reclassified to earnings | 3,238 | 4,931 | 44,616 |
Other comprehensive income, before tax | 27,487 | 49,065 | 39,741 |
Tax effect | (7,215) | (12,714) | (10,340) |
Other comprehensive income, net of taxes | 20,272 | 36,351 | 29,401 |
Comprehensive income | $ 136,053 | $ 202,106 | $ 119,165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 115,781 | $ 165,755 | $ 89,764 |
Earnings from discontinued operations | 0 | 0 | 370 |
Earnings from continuing operations | 115,781 | 165,755 | 89,394 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 56,100 | 46,500 | 52,798 |
Amortization of franchise tenant improvement allowances and incentives | 4,446 | 3,450 | 3,028 |
Amortization of debt issuance costs | 5,496 | 5,595 | 5,628 |
Loss on extinguishment of debt | 7,700 | 0 | 0 |
Tax deficiency (excess tax benefits) from share-based compensation arrangements | 123 | (1,160) | (449) |
Deferred income taxes | 7,857 | 8,008 | 5,162 |
Share-based compensation expense | 7,122 | 4,048 | 4,394 |
Pension and postretirement expense | 303 | 881 | 41,720 |
Losses (gains) on cash surrender value of company-owned life insurance | 12,668 | (12,753) | (4,262) |
Gains on the sale of company-operated restaurants | (3,878) | (4,203) | (3,261) |
Gains on the disposition of property and equipment | (30,533) | (6,888) | (9,768) |
Impairment charges and other | 8,219 | 2,889 | 322 |
Changes in assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and other receivables | (18,143) | 5,072 | (27,865) |
Inventories | 304 | (269) | 41 |
Prepaid expenses and other current assets | (3,275) | (2,766) | (2,780) |
Operating lease right-of-use assets and lease liabilities | 2,593 | (24,784) | 490 |
Accounts payable | 16,243 | (3,091) | 2,018 |
Accrued liabilities | (9,081) | 28,990 | 4,222 |
Pension and postretirement contributions | (6,690) | (6,084) | (6,243) |
Franchise tenant improvement allowance and incentive disbursements | (2,989) | (8,568) | (10,239) |
Other | (7,484) | 500 | (825) |
Cash flows provided by operating activities | 162,882 | 201,122 | 143,525 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (46,475) | (41,008) | (19,528) |
Proceeds from the sale and leaseback of assets | 10,768 | 3,884 | 19,828 |
Acquisition of Del Taco, net of cash acquired | (580,793) | 0 | 0 |
Proceeds from the sale of company-operated restaurants | (6,391) | (1,827) | (3,395) |
Proceeds from the sale of property and equipment | 31,161 | 11,742 | 22,774 |
Other | 360 | 2,626 | 2,654 |
Cash flows (used in) provided by investing activities | (578,588) | (20,929) | 29,123 |
Cash flows from financing activities: | |||
Borrowings on revolving credit facilities | 68,000 | 0 | 114,376 |
Repayments of borrowings on revolving credit facilities | (18,000) | (107,875) | (6,500) |
Proceeds from issuance of debt | 1,100,000 | 0 | 0 |
Principal repayments on debt | (588,064) | (829) | (10,536) |
Debt issuance costs | (20,599) | 0 | (216) |
Dividends paid on common stock | (36,987) | (37,322) | (27,538) |
Proceeds from issuance of common stock | 51 | 6,647 | 4,647 |
Repurchases of common stock | (25,000) | (200,000) | (155,576) |
Payroll tax payments for equity award issuances | (1,223) | (4,166) | (5,946) |
Cash flows provided by (used in) financing activities | 478,178 | (343,545) | (87,289) |
Net increase (decrease) in cash and restricted cash | 62,472 | (163,352) | 85,359 |
Cash and restricted cash at beginning of year | 73,568 | 236,920 | 151,561 |
Cash and restricted cash at end of year | $ 136,040 | $ 73,568 | $ 236,920 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Sep. 29, 2019 | 82,159,002 | |||||||
Beginning balance at Sep. 29, 2019 | $ (737,584) | $ (2,870) | $ 822 | $ 480,322 | $ 1,577,034 | $ (2,870) | $ (140,006) | $ (2,655,756) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under stock plans, including tax benefit (in shares) | 210,712 | |||||||
Shares issued under stock plans, including tax benefit | 4,647 | $ 2 | 4,645 | |||||
Share-based compensation | 4,394 | 4,394 | ||||||
Dividends declared | (27,563) | 154 | (27,717) | |||||
Purchases of treasury stock | (153,550) | (153,550) | ||||||
Net earnings | 89,764 | 89,764 | ||||||
Other comprehensive income | 29,401 | 29,401 | ||||||
Ending balance (in shares) at Sep. 27, 2020 | 82,369,714 | |||||||
Ending balance at Sep. 27, 2020 | (793,361) | $ 824 | 489,515 | 1,636,211 | (110,605) | (2,809,306) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under stock plans, including tax benefit (in shares) | 166,345 | |||||||
Shares issued under stock plans, including tax benefit | 6,647 | $ 1 | 6,646 | |||||
Share-based compensation | 4,048 | 4,048 | ||||||
Dividends declared | (37,322) | 232 | (37,554) | |||||
Purchases of treasury stock | (200,000) | (200,000) | ||||||
Net earnings | 165,755 | 165,755 | ||||||
Other comprehensive income | 36,351 | 36,351 | ||||||
Ending balance (in shares) at Oct. 03, 2021 | 82,536,059 | |||||||
Ending balance at Oct. 03, 2021 | (817,882) | $ 825 | 500,441 | 1,764,412 | (74,254) | (3,009,306) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under stock plans, including tax benefit (in shares) | 44,540 | |||||||
Shares issued under stock plans, including tax benefit | 51 | $ 1 | 50 | |||||
Share-based compensation | 7,122 | 7,122 | ||||||
Dividends declared | (36,985) | 261 | (37,246) | |||||
Purchases of treasury stock | (25,000) | (25,000) | ||||||
Fair value of assumed Del Taco RSAs attributable to pre-combination service | 449 | 449 | ||||||
Net earnings | 115,781 | 115,781 | ||||||
Other comprehensive income | 20,272 | 20,272 | ||||||
Ending balance (in shares) at Oct. 02, 2022 | 82,580,599 | |||||||
Ending balance at Oct. 02, 2022 | $ (736,192) | $ 826 | $ 508,323 | $ 1,842,947 | $ (53,982) | $ (3,034,306) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box ® and Del Taco ® restaurant brands. On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines. Refer to Note 3, Business Combination , for further details. As of October 2, 2022, there were 146 company-operated and 2,035 franchise-operated Jack in the Box restaurants and 290 company-operated and 301 franchise-operated Del Taco restaurants. References to the Company throughout these notes to the consolidated financial statements are made using the first-person notations of “we,” “us,” and “our.” Basis of presentation — The accompanying 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”). Certain prior period information on the consolidated statement of earnings has been reclassified to conform to the current year presentation. Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Our Del Taco subsidiary operates on a fiscal year ending the Tuesday closest to September 30. Comparisons throughout these notes to the consolidated financial statements refer to the 52-week period ended October 2, 2022 for the fiscal year 2022, and the 53-week and 52-week periods ended October 3, 2021 and September 27, 2020 for fiscal years 2021 and 2020, respectively. Principles of consolidation — The accompanying consolidated financial statements include the accounts of Jack in the Box Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. Use of estimates — In preparing the 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. Restricted cash — In accordance with the terms of our securitized financing facility, certain cash balances are required to be held in trust. Such restricted cash primarily represents cash collections and cash reserves held by the trustee to be used for payments of quarterly interest and commitment fees required for the Class A-2 Notes and Variable Funding Notes. As of October 2, 2022 and October 3, 2021, restricted cash balances were $27.2 million and $18.2 million, respectively. Accounts and other receivables, net — Our accounts and other receivables, net is primarily comprised of receivables from franchisees, tenants, credit card processors, and insurance receivables. Franchisee receivables primarily include rents, property taxes, royalties, marketing, sourcing and technology support fees associated with lease and franchise agreements, and notes from certain of our franchisees. Tenant receivables relate to subleased properties where we are on the master lease agreement. We accrue interest on notes receivable based on the contractual terms. The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. The Company’s allowance for doubtful accounts has not historically been material. The following table summarizes the activity in our allowance for doubtful accounts ( in thousands ): 2022 2021 Balance as of beginning of period $ (6,292) $ (5,541) Provision for expected credit losses (4,744) (770) Write-offs charged against the allowance 5,061 19 Balance as of end of period $ (5,975) $ (6,292) Inventories — Our inventories consist principally of food, packaging, and supplies, and are valued at the lower of cost or market on a first-in, first-out basis. Assets held for sale — Our assets held for sale typically includes property we plan to sell within the next year. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of assets held for sale. Long-lived assets that meet the held for sale criteria are reported at the lower of their carrying value or fair value, less estimated costs to sell. Property and equipment, net — Expenditures for new facilities and equipment, and those that substantially increase the useful lives of the property, are capitalized. Facilities leased under finance leases are stated at the present value of minimum lease payments at the beginning of the lease term, not to exceed fair value. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and gains or losses on the dispositions are included in “Other operating expense (income), net” in the accompanying consolidated statements of earnings. Buildings, equipment, and leasehold improvements are generally depreciated using the straight-line method based on the estimated useful lives of the assets, over the initial lease term for certain assets acquired in conjunction with the lease commencement for leased properties, or the remaining lease term for certain assets acquired after the commencement of the lease for leased properties. In certain situations, one or more option periods may be used in determining the depreciable life of assets related to leased properties if we deem that an economic penalty would be incurred otherwise. In either circumstance, our policy requires lease term consistency when calculating the depreciation period, in classifying the lease and in computing straight-line rent expense. Building, leasehold improvement assets and equipment are assigned lives that range from 1 to 35 years. Depreciation expense related to property and equipment was $55.8 million, $46.5 million, and $52.8 million in fiscal year 2022, 2021, and 2020, respectively. Impairment of long-lived assets — We evaluate long-lived assets, such as property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from our use and eventual disposition of the assets. If the carrying amount of a long-lived asset group exceeds the sum of related undiscounted future cash flows, we recognize an impairment loss by the amount that the carrying value of the assets exceeds fair value. Refer to Note 9, Other Operating Expense (Income), Net , for additional information. Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit retained. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment annually during the fourth quarter, or more frequently if indicators of impairment are present. We first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit or indefinite-lived asset is less than its carrying amount. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying amount, we perform a single-step impairment test. To perform our impairment analysis, we estimate the fair value of the reporting unit and compare it to the carrying value. If the carrying value exceeds the fair value, an impairment loss is recognized equal to the excess. We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets during the fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset's fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is estimated by discounting the expected future after-tax cash flows associated with the intangible asset. Intangible assets, net — Intangible assets primarily include franchise contracts, reacquired franchise rights and sublease assets. Franchise contracts, which represent the fair value of franchise agreements based on the projected royalty revenue stream as of the acquisition date, are amortized on a straight-line basis to “Depreciation and amortization expense” in the consolidated statements of earnings over the remaining term of the franchise agreements. Reacquired franchise rights are recorded in connection with our acquisition of franchised restaurants and are amortized on a straight-line basis to “Depreciation and amortization expense” in the consolidated statements of earnings over the term of the former franchise agreement. Sublease assets, which represent subleases with stated rent above comparable market rents, are amortized on a straight-line basis to “Franchise rental revenues” in the consolidated statements of earnings over the term of the related sublease. Company-owned life insurance — We have purchased company-owned life insurance (“COLI”) policies to support our non-qualified benefit plans. The cash surrender values of these policies were $108.9 million and $123.6 million as of October 2, 2022 and October 3, 2021, respectively, and are included in “Other assets, net”, in the accompanying consolidated balance sheets. Changes in cash surrender values are included in “Selling, general and administrative expenses” in the accompanying consolidated statements of earnings. These policies reside in an umbrella trust for use only to pay plan benefits to participants or to pay creditors if the Company becomes insolvent. Leases — 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, and 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 right-of-use (“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. Revenue recognition — “Company restaurant sales” include revenue recognized upon delivery of food and beverages to the customer at company-operated restaurants, which is when our obligation to perform is satisfied. Company restaurant sales exclude taxes collected from the Company’s customers. Gift cards, upon customer purchase, are recorded as deferred income and are recognized in revenue as they are redeemed. The Company operates loyalty programs in which members earn points primarily for food purchases. Points can then be redeemed for special reward offers. The Company allocates the consideration received on loyalty orders between the food purchased and the loyalty points earned, taking into consideration the expected redemption rate of loyalty points. The consideration allocated to the food is recognized as revenue at the time of sale. The consideration allocated to the loyalty points earned is deferred until the loyalty points are redeemed or expire. “Franchise rental revenues” received from franchised restaurants based on fixed rental payments are recognized as revenue over the term of the lease. Rental revenue from properties owned and leased by the Company and leased or subleased to franchisees is recognized on a straight-line basis over the respective term of the lease. Certain franchise rents, which are contingent upon sales levels, are recognized in the period in which the contingency is met. “Franchise royalties and other” primarily includes royalties and franchise fees received from our franchisees. Royalties are based upon a percentage of sales of the franchised restaurant and are recognized as earned. Franchise royalties are billed on a monthly or weekly basis. Franchise fees when a new restaurant opens or at the start of a new franchise term are recorded as deferred revenue when received and recognized as revenue over the term of the franchise agreement. “Franchise contributions for advertising and other services” includes franchisee contributions to our marketing funds billed on a monthly or weekly basis and sourcing and technology fees, as required under the franchise agreements. Contributions to our marketing funds are based on a percentage of sales and recognized as earned. Sourcing and technology services are recognized when the goods or services are transferred to the franchisee. Gift cards — We sell gift cards to our customers in our restaurants and through selected third parties. The gift cards sold to our customers have no stated expiration dates and are subject to actual or potential escheatment rights in several of the jurisdictions in which we operate. We recognize income from gift cards when redeemed by the customer. Deferred gift card income totaled $4.1 million and $2.2 million as of October 2, 2022 and October 3, 2021, respectively, and are included in “Accrued liabilities”, in the accompanying consolidated balance sheets. While we will continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity. In these circumstances, to the extent we determine there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may be recognized as income in our consolidated statements of earnings. Amounts recognized on unredeemed gift card balances were $0.7 million, $0.6 million, and $0.5 million in fiscal 2022, 2021, and 2020, respectively. Pre-opening costs — Pre-opening costs associated with the opening of a new restaurant or the remodeling of an existing restaurant consist primarily of property rent and employee training costs. Pre-opening costs associated with the opening of a restaurant that was closed upon acquisition consist of labor costs, maintenance and repair costs, and property rent. Self-insurance — We are self-insured for a portion of our workers’ compensation, general liability, employee medical and dental, and automotive claims. We utilize a paid-loss plan for our workers’ compensation, general liability, and automotive programs, which have predetermined loss limits per occurrence and in the aggregate. We establish our undiscounted insurance liability and reserves using independent actuarial estimates of expected losses based on a statistical analysis of historical claims data. As of October 2, 2022, our estimated self-insurance liability was $31.9 million, and is included in “Accrued liabilities” in the accompanying consolidated balance sheet. Advertising costs — We administer marketing funds at each of our restaurant brands that include contractual contributions. In 2022, 2021 and 2020, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales with the exception of our March 2020 and April 2020 marketing fees, which were temporarily reduced to 2% to 4%, respectively, in response to the economic burden associated with the COVID-19 pandemic. In 2022, marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Production costs of commercials, programming, and other marketing activities are charged to the marketing funds when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. When contributions to the marketing fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues on an annual basis since we are contractually obligated to spend these funds. As of October 2, 2022 and October 3, 2021, additional amounts accrued were $3.5 million and $9.5 million, respectively, for this requirement. Total contributions made by the Company are included in “Selling, general, and administrative expenses” in the accompanying consolidated statements of earnings. In fiscal 2022, 2021, and 2020 advertising costs were $32.6 million, $19.6 million, and $17.1 million, respectively. Share-based compensation — We account for our share-based compensation under the Financial Accounting Standards Board (“FASB”) authoritative guidance on stock compensation , which generally requires, among other things, that all employee share-based compensation be measured using a fair value method and that the resulting compensation cost be recognized in the financial statements. Compensation expense for our share-based compensation awards is generally recognized on a straight-line basis over the shorter of the vesting period or the period from the date of grant to the date the employee becomes eligible to retire. Refer to Note 13, Share-based Employee Compensation , for additional information. Income taxes — Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as tax loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize interest and, when applicable, penalties related to unrecognized tax benefits as a component of our income tax provision. Authoritative guidance issued by the FASB prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Refer to Note 11, Income Taxes , for additional information. Contingencies — We recognize liabilities for contingencies when we have an exposure that indicates it is probable that an asset has been impaired or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. Our ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. We record legal settlement costs when those costs are probable and reasonably estimable. Refer to Note 16, Commitments and Contingencies , for additional information. Business combinations — We account for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill. Effect of new accounting pronouncements adopted in fiscal 2022 — In October 2021 the FASB issued ASU 2021-08, Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) . This standard requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification (“ASC”) Topic 606 in order to align the recognition of a contract liability with the definition of a performance obligation. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. We elected to early adopt this standard in the second quarter of 2022. The adoption of ASU 2021-08 did not have a material impact on our consolidated financial statements. Effect of new accounting pronouncements to be adopted in future periods — We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Oct. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Nature of products and services — We derive revenue from retail sales at Jack in the Box and Del Taco 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 per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees for Jack in the Box franchise agreements. Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the fiscal year ended October 2, 2022 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 414,225 $ 286,845 $ 701,070 Franchise rental revenues 335,936 4,455 340,391 Franchise royalties 188,902 13,414 202,316 Franchise advertising contributions 183,076 10,907 193,983 Technology and sourcing fees 14,740 1,078 15,818 Franchise fees and other services 14,309 196 14,505 Total revenue $ 1,151,188 $ 316,895 $ 1,468,083 The following table disaggregates revenue by segment and primary source for the fiscal year ended October 3, 2021 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 387,766 $ — $ 387,766 Franchise rental revenues 346,634 — 346,634 Franchise royalties 193,908 — 193,908 Franchise advertising contributions 188,184 — 188,184 Technology and sourcing fees 16,361 — 16,361 Franchise fees and other services 10,817 — 10,817 Total revenue $ 1,143,670 $ — $ 1,143,670 The following table disaggregates revenue by segment and primary source for the fiscal ended September 27, 2020 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 348,987 $ — $ 348,987 Franchise rental revenues 320,647 — 320,647 Franchise royalties 171,407 — 171,407 Franchise advertising contributions 158,258 — 158,258 Technology and sourcing fees 15,295 — 15,295 Franchise fees and other services 6,912 — 6,912 Total revenue $ 1,021,506 $ — $ 1,021,506 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 within “Accrued liabilities” and “Other long-term liabilities” in our consolidated balance sheets. A summary of significant changes in our contract liabilities is presented below (in thousands) : 2022 2021 Deferred franchise and development fees at beginning of period $ 41,520 $ 43,816 Changes due to business combinations 6,193 — Revenue recognized during the period (5,891) (6,014) Additions during the period 4,627 3,718 Deferred franchise and development fees at end of period $ 46,449 $ 41,520 As of October 2, 2022, approximately $5.5 million of development fees related to unopened stores are included in deferred revenue. Timing of revenue recognition is dependent upon the timing of store openings and are recognized over the franchise term at the date of opening. The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands) : 2023 $ 5,013 2024 $ 4,806 2025 $ 4,570 2026 $ 4,245 2027 $ 3,886 Thereafter $ 18,427 $ 40,947 We have applied the optional exemption, as provided for under ASC 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. |
Business Combination
Business Combination | 12 Months Ended |
Oct. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | BUSINESS COMBINATION On March 8, 2022 (the “Closing Date”), the Company acquired 100% of the outstanding equity interest of Del Taco for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021 (the “Merger Agreement”). The acquisition of Del Taco has been accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations , with the Company treated as the accounting acquirer, which requires, among other things, that the assets acquired, and liabilities assumed be recognized at their acquisition date fair value. Jack in the Box acquired Del Taco as a part of the Company’s goal to gain greater scale and accelerate growth. In connection with the transaction, the Company repaid Del Taco's existing debt of $115.2 million related to a syndicated credit facility and Del Taco entered into a new syndicated credit facility. The total purchase consideration for Del Taco was $593.3 million. Each share of Del Taco common stock issued and outstanding was converted into the right to receive $12.51 in cash without interest, less any applicable withholding taxes (“Merger Consideration”). Additionally, in connection with the transaction, each Del Taco equity award granted under Del Taco’s equity compensation plans was either (i) converted into the right to receive Merger Consideration or (ii) converted into equity awards with respect to Jack in the Box common stock. Other components of purchase consideration include cash paid to settle Del Taco’s existing debt and $7.1 million of seller transaction costs funded by Jack in the Box. As part of the Merger Agreement, on the Closing Date, the Company assumed Del Taco’s historical equity compensation plans. The awards under Del Taco’s historical equity compensation plans that were not subject to accelerated vesting were exchanged for replacement awards of the Company, which included Del Taco’s non-accelerating restricted stock awards (“non-accelerating RSAs”). Immediately following the Merger, these replacement awards were modified to accelerate the remaining vesting period to be one year following the Closing Date, other than the awards already scheduled to vest on June 30, 2022. The portion of the fair value of the replacement awards associated with pre-acquisition service of Del Taco’s employees represented a component of the total purchase consideration. The remaining fair value of these replacement awards are subject to the recipients’ continued service and thus were excluded from the purchase price. The awards which are subject to continued service will be recognized ratably as stock-based compensation expense over the requisite service period. The acquisition of Del Taco was funded by cash on hand and borrowings under our 2022 Class A-2 Notes and 2022 Variable Funding Notes. The Company recognized transaction costs of $12.3 million in fiscal 2022. These costs were associated with advisory, legal, and consulting services and are presented in “Other operating expense (income), net” in the consolidated statement of earnings. Purchase consideration — The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data) : Amount Del Taco shares outstanding as of March 8, 2022 36,442 Del Taco RSAs subject to accelerated vesting 805 Del Taco RSUs subject to accelerated vesting 70 Del Taco options subject to accelerated vesting 292 Total Del Taco shares outstanding 37,610 Merger Consideration (per Del Taco share) $ 12.51 Total cash consideration paid to selling shareholders $ 470,500 Del Taco transaction costs paid by Jack in the Box (1) 7,141 Del Taco closing indebtedness settled by Jack in the Box (2) 115,219 Replacement share-based payment awards pre-combination vesting expense 449 Total aggregate purchase consideration $ 593,309 ____________________________ (1) Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company. (2) Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company. Purchase price allocation — During the fourth quarter, we completed the accounting for the acquisition and recorded measurement period adjustments of $0.3 million attributable to new information obtained surrounding tax-related matters, certain tangible assets, and the settlement of a litigation matter that existed as of the acquisition date. The final allocation of the purchase consideration, which includes measurement-period adjustments recorded in our third and fourth quarters of fiscal 2022, is as follows (in thousands) : Initial Allocation of Consideration Measurement Period Adjustments October 2, Total aggregate purchase consideration, net of $12,068 cash acquired $ 581,241 $ — $ 581,241 Assets: Accounts and other receivables 3,809 774 4,583 Inventories 3,233 — 3,233 Prepaid expenses 2,950 — 2,950 Other current assets 105 — 105 Property and equipment 150,826 (5,794) 145,032 Operating lease right-of-use assets 349,489 800 350,289 Intangible assets 12,371 — 12,371 Trademarks 283,500 — 283,500 Other assets 5,128 — 5,128 Liabilities: Current maturities of long-term debt 22 — 22 Current operating lease liabilities 21,991 — 21,991 Accounts payable 18,808 — 18,808 Accrued liabilities 66,739 45,840 112,579 Long-term debt, net of current maturities 349 — 349 Long-term operating lease liabilities, net of current portion 302,688 800 303,488 Deferred tax liabilities 88,203 (12,848) 75,355 Other long-term liabilities 13,080 — 13,080 Net assets acquired, excluding goodwill $ 299,531 $ (38,012) $ 261,519 Goodwill $ 281,710 $ 38,012 $ 319,722 The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. The goodwill of $319.7 million arising from the acquisition is primarily attributable to the market position and future growth potential of Del Taco for both company-operated and franchised restaurants related to future store openings, expansion into new markets, and expected synergies. None of the goodwill resulting from the acquisition is deductible for tax purposes. The goodwill arising from the Del Taco acquisition has been allocated to the Company’s reporting units as follows (in thousands ): Del Taco brand $ 230,722 Jack in the Box brand 89,000 Total acquisition date goodwill $ 319,722 Identifiable intangible assets — The identifiable intangible assets acquired consist of trademarks, franchise and development agreements, and favorable subleases. The Company amortizes the fair value of the franchise and development agreements and favorable and unfavorable sublease assets and liabilities on a straight-line basis over their respective useful lives. The trademarks were valued using the relief from royalty method of the income approach, which was applied by discounting the after-tax royalties avoided by owning the trademark to present value. The key inputs and assumptions included the Company's estimates of the projected system wide sales, royalty rate and discount rate applicable to the trademark. The franchise and development agreements were valued using the income approach, which was applied by discounting the projected after-tax cash flows associated with the agreements to present value. The key inputs and assumptions included the Company's estimates of the projected royalties received under the existing franchise and development agreements (including the impact of franchise churn) and the applicable discount rate. The favorable and unfavorable sublease assets and liabilities were valued using the income approach, which was applied by discounting the differential between the market rent and contract rent to present value. The key inputs and assumptions included the Company's estimates of the market rent, contract rent and discount rate applicable to the favorable and unfavorable subleases. The values allocated to intangible assets and the useful lives are as follows (in thousands) : Amount Weighted Average Useful Life (Years) Trademarks $ 283,500 Indefinite Franchise contracts 9,700 18 Sublease assets 2,671 13 Estimated fair value of acquired intangible assets $ 295,871 The estimated values of sublease liabilities totaled approximately $6.0 million. These liabilities have an estimated weighted-average useful life of approximately 15 years and are included in “Other long-term liabilities” in the accompanying consolidated balance sheets. Unaudited pro forma results — The following unaudited pro forma combined financial information presents the Company’s results as though Del Taco and the Company had been combined as the beginning of fiscal year 2021 (in thousands) : 2022 2021 Total revenue $ 1,686,160 $ 1,665,660 Net earnings $ 118,000 $ 133,485 The unaudited pro forma financial information for all periods presented includes the business combination accounting effects resulting from this acquisition, mainly including adjustments to reflect additional amortization expense from acquired intangibles, incremental depreciation expense from the fair value property and equipment, elimination of historical interest expense associated with both Del Taco’s and the Company’s historical indebtedness, additional interest expense associated with the new Del Taco revolving credit facility and the Company’s new borrowings as part of the refinancing to fund the acquisition, adjusted rent expense reflecting the acquired right-of-use assets and liabilities to their estimated acquisition-date values based upon valuation of related lease intangibles and remaining payments, as well as the fair value adjustments made to leasehold improvements, certain material non-recurring adjustments and the tax-related effects as though Del Taco was combined as of the beginning of fiscal 2021. The unaudited pro forma financial information as presented above is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2021, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the two brands. For the periods subsequent to the acquisition that are included in 2022, Del Taco had total revenues of $316.9 million and net earnings of $6.5 million. |
Summary of Refranchisings and F
Summary of Refranchisings and Franchise Acquisitions | 12 Months Ended |
Oct. 02, 2022 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Summary of Refranchisings and Franchisee Acquisitions | SUMMARY OF REFRANCHISINGS AND FRANCHISE ACQUISITIONS Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year ( dollars in thousands ): 2022 2021 2020 Restaurants sold to Jack in the Box franchisees 15 — — Proceeds from the sale of company-operated restaurants (1) $ 6,391 $ 1,827 $ 3,395 Net assets sold (primarily property and equipment) (1,565) — — Goodwill related to the sale of company-operated restaurants (948) — — Other (2) — 2,376 (134) Gains on the sale of company-operated restaurants $ 3,878 $ 4,203 $ 3,261 ________________________ (1) Amounts in 2022, 2021, and 2020 include additional proceeds of $1.4 million, $1.8 million, and $3.4 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years. (2) Amounts in 2021 and 2020 relate to adjustments to contingencies that were included in underlying franchise and lease agreements from the sale of restaurants in prior years. Franchise acquisitions — In 2022, 2021, and 2020, we acquired thirteen, twenty, and eight franchise restaurants, respectively. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The goodwill recorded primarily relates to the sales growth potential of the market acquired and is expected to be deductible for income tax purposes. The following table provides detail of the combined acquisitions in 2022, 2021, and 2020 ( dollars in thousands ): 2022 2021 2020 Restaurants acquired from franchisees 13 20 8 Inventory $ — $ 258 $ 73 Property and equipment 540 1,136 903 Intangible assets 66 245 263 Other assets — 10 6 Goodwill — 613 414 Gains on the acquisition of franchise-operated restaurants (309) (340) — Liabilities assumed — (277) (800) Total consideration $ 297 $ 1,645 $ 859 The total consideration of $0.3 million for the restaurants acquired in 2022 was comprised of franchise receivables owed to the Company as of the acquisition date. During the first quarter of 2022, we finalized certain estimates impacting total purchase consideration for the 2021 restaurant acquisitions and recorded the resulting measurement period adjustments which increased goodwill by $0.3 million. Assets held for sale — Assets classified as held for sale consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Jack in the Box restaurant properties held for sale (1) $ 14,151 $ — Other property and equipment held for sale (2) 2,868 1,692 Assets held for sale $ 17,019 $ 1,692 ________________________ (1) Consists of properties that are currently leased to franchisees which we intend to sell the underlying real estate directly to the franchisee and/or sell and leaseback with a third party within the next twelve months. (2) Consists primarily of owned properties of closed restaurants which we are actively marketing for sale. Discontinued operations — There were no discontinued operations during 2022 and 2021. The results of discontinued operations in 2020 pertain to the resolution of certain contingencies relating to our former Qdoba business which we sold in 2018. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Oct. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill during fiscal 2022 and 2021 were as follows ( in thousands ): Jack in the Box Del Taco Total Balance at September 27, 2020 $ 47,161 $ — $ 47,161 Acquisition of Jack in the Box franchise-operated restaurants 613 — 613 Balance at October 3, 2021 47,774 — 47,774 Acquisition of Del Taco Restaurants, Inc. 89,000 230,722 319,722 Acquisition of Jack in the Box franchise-operated restaurants 273 — 273 Sale of Jack in the Box company-operated restaurants to franchisees (948) — (948) Balance at October 2, 2022 $ 136,099 $ 230,722 $ 366,821 The net carrying amounts of intangible assets are as follows ( in thousands ): October 2, October 3, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Definite-lived intangible assets: Sublease assets $ 2,671 $ (139) $ 2,532 $ — $ — $ — Franchise contracts 9,700 (311) 9,389 — — — Reacquired franchise rights 530 (127) 403 542 (72) 470 $ 12,901 $ (577) $ 12,324 $ 542 $ (72) $ 470 Indefinite-lived intangible assets: Del Taco trademark $ 283,500 $ — $ 283,500 $ — $ — $ — $ 283,500 $ — $ 283,500 $ — $ — $ — The following table summarizes, as of October 2, 2022, the estimated amortization expense for each of the next five fiscal years ( in thousands ): 2023 $ 823 2024 $ 820 2025 $ 820 2026 $ 818 2027 $ 813 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities — The following table presents the financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Significant Significant Fair value measurements as of October 2, 2022: Non-qualified deferred compensation plan (1) $ 13,820 $ 13,820 $ — $ — Total liabilities at fair value $ 13,820 $ 13,820 $ — $ — Fair value measurements as of October 3, 2021: Non-qualified deferred compensation plan (1) $ 18,555 $ 18,555 $ — $ — Total liabilities at fair value $ 18,555 $ 18,555 $ — $ — ________________________ (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 consolidated balance sheets. (2) We did not have any transfers in or out of Level 1, 2, or 3. The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of October 2, 2022 and October 3, 2021 ( in thousands ): October 2, October 3, Carrying Amount Fair Value Carrying Amount Fair Value Series 2019 Class A-2 Notes $ 714,125 $ 641,851 $ 1,290,251 $ 1,351,057 Series 2022 Class A-2 Notes $ 1,089,000 $ 917,428 $ — $ — 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. As of October 2, 2022, we had $50.0 million of outstanding borrowings under our Variable Funding Notes. The fair value of these loans approximates their carrying value due to the variable rate nature of these borrowings. 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. Refer to Note 9, Other Operating Expenses (Income), Net, |
Indebtedness
Indebtedness | 12 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS The detail of our long-term debt at the end of each fiscal year is as follows ( in thousands ): October 2, October 3, Series 2019-1 3.982% Fixed Rate Class A-2-I Notes $ — $ 570,688 Series 2019-1 4.476% Fixed Rate Class A-2-II Notes 270,875 272,938 Series 2019-1 4.970% Fixed Rate Class A-2-III Notes 443,250 446,625 Series 2022-1 3.445% Fixed Rate Class A-2-I Notes 544,500 — Series 2022-1 4.136% Fixed Rate Class A-2-II Notes 544,500 — Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 50,000 — Finance lease obligations and other debt 1,690 2,275 Total debt 1,854,815 1,292,526 Less current maturities of long-term debt (30,169) (894) Less unamortized debt issuance costs (25,106) (18,212) Long-term debt $ 1,799,540 $ 1,273,420 Securitization refinancing transaction — On February 11, 2022, the Company completed the sale of $550.0 million of its Series 2022-1 3.445% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) and $550.0 million of its Series 2022-1 4.136% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II” and, together with the Class A-2-I Notes, the “2022 Notes”). Interest payments on the 2022 Notes are payable on a quarterly basis. The anticipated repayment dates of the 2022 Class A-2-I Notes and the Class A-2-II Notes are February 2027 and February 2032, respectively (the “Anticipated Repayment Dates”), unless earlier prepaid to the extent permitted under the indenture that will govern the 2022 Notes. The anticipated repayment dates of the existing 2019-1 Class A-2-II Notes and the Class A-2-III Notes are August 2026 and August 2029, respectively. The Company also entered into a revolving financing facility of Series 2022-1 Variable Funding Senior Secured Notes (the “Variable Funding Notes”), which permits borrowings up to a maximum of $150.0 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit. The Company’s existing revolving financing facility of Series 2019-1 Class A-1 Notes was terminated in connection with the transaction. As of October 2, 2022, we had outstanding borrowings of $50.0 million and available borrowing capacity of $58.0 million under our 2022 Variable Funding Notes, net of letters of credits issued of $42.0 million. The net proceeds of the sale of the 2022 Notes were used to repay in full of $570.7 million in aggregate outstanding principal amount of the Company’s Series 2019-1 Class A-2-I Notes, together with the applicable make-whole premium and unpaid interest, and was used to fund a portion of the Company’s acquisition of Del Taco Restaurants, Inc. As a result, the Company recorded a loss on early extinguishment of debt of $5.6 million during the second quarter of 2022, which was comprised of the write-off of certain deferred financing costs and a specified make-whole premium payment, and is presented in “Interest expense, net” in the consolidated statement of earnings. Additionally, in connection with the 2022 Notes, the Company capitalized $17.4 million of debt issuance costs, which are being amortized into interest expense over the Anticipated Repayment Dates, utilizing the effective interest rate method. The costs related to our Variable Funding Notes are presented within “Other assets, net” and are being amortized over the Anticipated Repayment Date of February 2027 using the straight-line method. As of October 2, 2022, the effective interest rates, including the amortization of debt issuance costs, were 4.851%, 5.258%, 2.430%, and 2.783% for the Series 2019-1 Class A-2-II Notes, Series 2019-1 Class A-2-III Notes, Series 2022-1 Class A-2-I Notes, and Series 2022-1 Class A-2-II Notes, respectively. The 2022 Notes were issued in a privately placed securitization transaction pursuant to which certain of the Company’s revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly owned indirect subsidiaries of the Company that act as Guarantors of the Notes and that have pledged substantially all of their assets, excluding certain real estate assets and subject to certain limitations, to secure the Notes. The quarterly principal payment on the Class A-2 Notes may be suspended when the specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0x. Exceeding the leverage ratio of 5.0x does not violate any covenant related to the Class A-2 Notes. Subsequent to closing the issuance of the 2022 Notes, the Company has had a leverage ratio of greater than 5.0x and, accordingly, the Company resumed making the scheduled principal payments on its 2022 Notes and Series 2019-1 Notes beginning in the second quarter of 2022. Variable Funding Notes — Depending on the type of borrowing under the Variable Funding Notes, interest on the Variable Funding Notes will be based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered rate for U.S. Dollars or (iv) the lenders’ commercial paper funding rate plus any applicable margin, as set forth in the Variable Funding Note Purchase Agreement. There is a scaled commitment fee on the unused portion of the Variable Funding Notes facility of between 50 and 100 basis points. It is anticipated that the principal and interest on the Variable Funding Notes will be repaid in full on or prior to August 2027, subject to two one-year extensions at the option of the Company. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue equal to 5.00% per annum. Guarantees and collateral — Pursuant to the Guarantee and Collateral Agreement, dated July 8, 2019 (the “Guarantee and Collateral Agreement”), among the Guarantors, in favor of the trustee, the Guarantors guarantee the obligations of the Master Issuer under the Indenture and related documents and secure the guarantee by granting a security interest in substantially all of their assets. The Notes are secured by a security interest in substantially all of the assets of the Master Issuer and the Guarantors (collectively, the “Securitization Entities”). The assets of the Securitization Entities include most of the revenue-generating assets of the Company and its subsidiaries, which principally consist of franchise-related agreements, certain company-operated restaurants, intellectual property and license agreements for the use of intellectual property. Upon certain trigger events, mortgages will be required to be prepared and recorded on the real estate assets. Revolving credit facility — In connection with the Del Taco acquisition, Del Taco’s existing debt of $115.2 million related to a Syndicated Credit Facility dated August 5, 2015, was repaid and extinguished on the Closing Date. On the Closing Date, Del Taco entered into a new syndicated credit facility with an aggregate principal amount of up to $75.0 million, maturing on March 7, 2023. The revolving credit facility, as amended, includes a limit of $20.0 million for letters of credit. As of October 2, 2022, we had no outstanding borrowings and available borrowing capacity of $59.9 million under the facility, net of letters of credit of $15.1 million. The Company capitalized $0.3 million of debt issuance costs, which are being amortized into interest expense over the expected term of the credit facility. Bridge commitment letter — In connection with the Merger Agreement, the Company secured commitments for a bridge financing facility in an amount of up to $600.0 million (the “Bridge Facility”). No amounts were drawn under the Bridge Facility, which was terminated as a result of our securitization refinancing transaction. The Company expensed approximately $2.1 million for the unamortized issuance costs associated with this commitment which is presented in “Interest expense, net” in the consolidated statement of earnings. Maturities of long-term debt — Assuming repayment by the Anticipated Repayment Dates and based on the leverage ratio as of October 2, 2022, principal payments on our long-term debt outstanding at October 2, 2022 for each of the next five fiscal years and thereafter are as follows ( in thousands ): 2023 $ 30,169 2024 29,623 2025 29,315 2026 289,183 2027 516,045 Thereafter 960,480 $ 1,854,815 |
Leases
Leases | 12 Months Ended |
Oct. 02, 2022 | |
Leases [Abstract] | |
Leases | 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 consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Company as lessee — Leased assets and liabilities consisted of the following as of October 2, 2022 and October 3, 2021 (in thousands) : October 2, October 3, Assets: Operating lease ROU assets $ 1,332,135 $ 934,066 Finance lease ROU assets (1) 854 1,698 Total ROU assets $ 1,332,989 $ 935,764 Liabilities: Current operating lease liabilities $ 171,311 $ 150,636 Current finance lease liabilities (2) 896 894 Long-term operating lease liabilities 1,165,097 809,191 Long-term finance lease liabilities (2) 435 1,381 Total lease liabilities $ 1,337,739 $ 962,102 ________________________ (1) Included in “Property and equipment, net” on our consolidated balance sheets. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets. The following table presents the components of our lease costs in fiscal 2022, 2021, and 2020 ( in thousands ): 2022 2021 2020 Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 827 $ 807 $ 767 Interest on lease liabilities (2) 67 89 110 Operating lease cost (3) 218,837 194,149 190,461 Short-term lease cost (3) 824 427 175 Variable lease cost (3)(4) 48,872 43,498 40,798 $ 269,427 $ 238,970 $ 232,311 ____________________________ (1) Included in “Depreciation and amortization” in our consolidated statements of earnings. (2) Included in “Interest expense, net” in our consolidated statements 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 consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense (income), net” and all other costs are included in “Selling, general and administrative expenses.” (4) Includes $38.2 million, $38.0 million, and $37.4 million in 2022, 2021, and 2020, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents supplemental information related to leases: October 2, October 3, Weighted-average remaining lease term (in years): Finance leases 1.5 2.4 Operating leases 10.0 9.0 Weighted-average discount rate: Finance leases 3.8 % 3.6 % Operating leases 4.6 % 4.1 % The following table presents as of October 2, 2022, the annual maturities of our lease liabilities ( in thousands ): Finance Leases Operating Leases Fiscal year: 2023 $ 932 $ 231,670 2024 372 196,702 2025 40 191,507 2026 27 174,068 2027 14 159,219 Thereafter 13 758,184 Total future lease payments (1) $ 1,398 $ 1,711,350 Less: imputed interest (67) (374,942) Present value of lease liabilities $ 1,331 $ 1,336,408 Less current portion (896) (171,311) Long-term lease obligations $ 435 $ 1,165,097 ________________________ (1) Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases. Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end ( in thousands ): 2022 2021 Buildings $ 1,342 $ 1,342 Equipment 5,559 5,869 Less accumulated amortization (6,047) (5,513) $ 854 $ 1,698 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 218,605 $ 218,570 Operating cash flows from financing leases $ 67 $ 89 Financing cash flows from financing leases $ 907 $ 829 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease obligations $ 221,466 $ 186,621 Right-of-use assets obtained in exchange for new financing lease obligations $ 45 $ 184 Sale and leaseback transactions — In fiscal 2022, we sold four restaurant properties in sale and leaseback transactions for net proceeds of $10.8 million and recorded total losses of $0.2 million. The leases have been accounted for as operating leases and contain initial terms of 16 years and 20 years. In fiscal 2021, we sold two restaurant properties in sale and leaseback transactions for net proceeds of $3.9 million and recorded total gains of less than $0.1 million. The leases have been accounted for as operating leases and contain an initial term of 20 years. In fiscal 2020, we completed two sale and leaseback transactions of our restaurant properties with one occurring during the first quarter of 2020 and the other occurring during the third quarter of 2020. In the first quarter of 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 the lease has been accounted for as an operating lease. Under the other arrangement, we received net proceeds of $2.4 million on a restaurant property sold and recognized a loss of less than $0.1 million on the sale. The initial term of the lease is 17 years and has been accounted for as an operating lease. In fiscal 2020, we also completed the sale of one of our corporate office buildings as we moved 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 were $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 and is presented within “Other operating expenses (income), net” in our consolidated statement of earnings. Company as lessor — The following table presents rental income ( in thousands ): 2022 2021 Owned Properties Leased Properties Total Owned Properties Leased Properties Total Operating lease income - franchise $ 19,221 $ 212,552 $ 231,773 $ 20,132 $ 218,028 $ 238,160 Variable lease income - franchise 12,418 96,002 108,420 12,363 96,111 108,474 Amortization of favorable and unfavorable lease contracts, net — 198 198 — — — Franchise rental revenues $ 31,639 $ 308,752 $ 340,391 $ 32,495 $ 314,139 $ 346,634 Operating lease income - closed restaurants and other (1) $ 60 $ 6,347 $ 6,407 $ — $ 6,027 $ 6,027 ________________________ (1) Primarily relates to closed restaurant properties included in “Other operating expense (income), net” in our consolidated statements of earnings. The following table presents as of October 2, 2022, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): October 2, Fiscal year: 2023 $ 243,929 2024 217,567 2025 225,542 2026 211,507 2027 204,685 Thereafter 879,829 Total minimum rental receipts $ 1,983,059 Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Land $ 75,967 $ 89,791 Buildings 771,567 782,450 Equipment 2,750 223 850,284 872,464 Less accumulated depreciation (663,109) (657,030) $ 187,175 $ 215,434 |
Leases | 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 consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Company as lessee — Leased assets and liabilities consisted of the following as of October 2, 2022 and October 3, 2021 (in thousands) : October 2, October 3, Assets: Operating lease ROU assets $ 1,332,135 $ 934,066 Finance lease ROU assets (1) 854 1,698 Total ROU assets $ 1,332,989 $ 935,764 Liabilities: Current operating lease liabilities $ 171,311 $ 150,636 Current finance lease liabilities (2) 896 894 Long-term operating lease liabilities 1,165,097 809,191 Long-term finance lease liabilities (2) 435 1,381 Total lease liabilities $ 1,337,739 $ 962,102 ________________________ (1) Included in “Property and equipment, net” on our consolidated balance sheets. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets. The following table presents the components of our lease costs in fiscal 2022, 2021, and 2020 ( in thousands ): 2022 2021 2020 Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 827 $ 807 $ 767 Interest on lease liabilities (2) 67 89 110 Operating lease cost (3) 218,837 194,149 190,461 Short-term lease cost (3) 824 427 175 Variable lease cost (3)(4) 48,872 43,498 40,798 $ 269,427 $ 238,970 $ 232,311 ____________________________ (1) Included in “Depreciation and amortization” in our consolidated statements of earnings. (2) Included in “Interest expense, net” in our consolidated statements 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 consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense (income), net” and all other costs are included in “Selling, general and administrative expenses.” (4) Includes $38.2 million, $38.0 million, and $37.4 million in 2022, 2021, and 2020, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents supplemental information related to leases: October 2, October 3, Weighted-average remaining lease term (in years): Finance leases 1.5 2.4 Operating leases 10.0 9.0 Weighted-average discount rate: Finance leases 3.8 % 3.6 % Operating leases 4.6 % 4.1 % The following table presents as of October 2, 2022, the annual maturities of our lease liabilities ( in thousands ): Finance Leases Operating Leases Fiscal year: 2023 $ 932 $ 231,670 2024 372 196,702 2025 40 191,507 2026 27 174,068 2027 14 159,219 Thereafter 13 758,184 Total future lease payments (1) $ 1,398 $ 1,711,350 Less: imputed interest (67) (374,942) Present value of lease liabilities $ 1,331 $ 1,336,408 Less current portion (896) (171,311) Long-term lease obligations $ 435 $ 1,165,097 ________________________ (1) Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases. Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end ( in thousands ): 2022 2021 Buildings $ 1,342 $ 1,342 Equipment 5,559 5,869 Less accumulated amortization (6,047) (5,513) $ 854 $ 1,698 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 218,605 $ 218,570 Operating cash flows from financing leases $ 67 $ 89 Financing cash flows from financing leases $ 907 $ 829 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease obligations $ 221,466 $ 186,621 Right-of-use assets obtained in exchange for new financing lease obligations $ 45 $ 184 Sale and leaseback transactions — In fiscal 2022, we sold four restaurant properties in sale and leaseback transactions for net proceeds of $10.8 million and recorded total losses of $0.2 million. The leases have been accounted for as operating leases and contain initial terms of 16 years and 20 years. In fiscal 2021, we sold two restaurant properties in sale and leaseback transactions for net proceeds of $3.9 million and recorded total gains of less than $0.1 million. The leases have been accounted for as operating leases and contain an initial term of 20 years. In fiscal 2020, we completed two sale and leaseback transactions of our restaurant properties with one occurring during the first quarter of 2020 and the other occurring during the third quarter of 2020. In the first quarter of 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 the lease has been accounted for as an operating lease. Under the other arrangement, we received net proceeds of $2.4 million on a restaurant property sold and recognized a loss of less than $0.1 million on the sale. The initial term of the lease is 17 years and has been accounted for as an operating lease. In fiscal 2020, we also completed the sale of one of our corporate office buildings as we moved 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 were $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 and is presented within “Other operating expenses (income), net” in our consolidated statement of earnings. Company as lessor — The following table presents rental income ( in thousands ): 2022 2021 Owned Properties Leased Properties Total Owned Properties Leased Properties Total Operating lease income - franchise $ 19,221 $ 212,552 $ 231,773 $ 20,132 $ 218,028 $ 238,160 Variable lease income - franchise 12,418 96,002 108,420 12,363 96,111 108,474 Amortization of favorable and unfavorable lease contracts, net — 198 198 — — — Franchise rental revenues $ 31,639 $ 308,752 $ 340,391 $ 32,495 $ 314,139 $ 346,634 Operating lease income - closed restaurants and other (1) $ 60 $ 6,347 $ 6,407 $ — $ 6,027 $ 6,027 ________________________ (1) Primarily relates to closed restaurant properties included in “Other operating expense (income), net” in our consolidated statements of earnings. The following table presents as of October 2, 2022, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): October 2, Fiscal year: 2023 $ 243,929 2024 217,567 2025 225,542 2026 211,507 2027 204,685 Thereafter 879,829 Total minimum rental receipts $ 1,983,059 Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Land $ 75,967 $ 89,791 Buildings 771,567 782,450 Equipment 2,750 223 850,284 872,464 Less accumulated depreciation (663,109) (657,030) $ 187,175 $ 215,434 |
Leases | 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 consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” Company as lessee — Leased assets and liabilities consisted of the following as of October 2, 2022 and October 3, 2021 (in thousands) : October 2, October 3, Assets: Operating lease ROU assets $ 1,332,135 $ 934,066 Finance lease ROU assets (1) 854 1,698 Total ROU assets $ 1,332,989 $ 935,764 Liabilities: Current operating lease liabilities $ 171,311 $ 150,636 Current finance lease liabilities (2) 896 894 Long-term operating lease liabilities 1,165,097 809,191 Long-term finance lease liabilities (2) 435 1,381 Total lease liabilities $ 1,337,739 $ 962,102 ________________________ (1) Included in “Property and equipment, net” on our consolidated balance sheets. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets. The following table presents the components of our lease costs in fiscal 2022, 2021, and 2020 ( in thousands ): 2022 2021 2020 Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 827 $ 807 $ 767 Interest on lease liabilities (2) 67 89 110 Operating lease cost (3) 218,837 194,149 190,461 Short-term lease cost (3) 824 427 175 Variable lease cost (3)(4) 48,872 43,498 40,798 $ 269,427 $ 238,970 $ 232,311 ____________________________ (1) Included in “Depreciation and amortization” in our consolidated statements of earnings. (2) Included in “Interest expense, net” in our consolidated statements 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 consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense (income), net” and all other costs are included in “Selling, general and administrative expenses.” (4) Includes $38.2 million, $38.0 million, and $37.4 million in 2022, 2021, and 2020, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents supplemental information related to leases: October 2, October 3, Weighted-average remaining lease term (in years): Finance leases 1.5 2.4 Operating leases 10.0 9.0 Weighted-average discount rate: Finance leases 3.8 % 3.6 % Operating leases 4.6 % 4.1 % The following table presents as of October 2, 2022, the annual maturities of our lease liabilities ( in thousands ): Finance Leases Operating Leases Fiscal year: 2023 $ 932 $ 231,670 2024 372 196,702 2025 40 191,507 2026 27 174,068 2027 14 159,219 Thereafter 13 758,184 Total future lease payments (1) $ 1,398 $ 1,711,350 Less: imputed interest (67) (374,942) Present value of lease liabilities $ 1,331 $ 1,336,408 Less current portion (896) (171,311) Long-term lease obligations $ 435 $ 1,165,097 ________________________ (1) Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases. Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end ( in thousands ): 2022 2021 Buildings $ 1,342 $ 1,342 Equipment 5,559 5,869 Less accumulated amortization (6,047) (5,513) $ 854 $ 1,698 The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 218,605 $ 218,570 Operating cash flows from financing leases $ 67 $ 89 Financing cash flows from financing leases $ 907 $ 829 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease obligations $ 221,466 $ 186,621 Right-of-use assets obtained in exchange for new financing lease obligations $ 45 $ 184 Sale and leaseback transactions — In fiscal 2022, we sold four restaurant properties in sale and leaseback transactions for net proceeds of $10.8 million and recorded total losses of $0.2 million. The leases have been accounted for as operating leases and contain initial terms of 16 years and 20 years. In fiscal 2021, we sold two restaurant properties in sale and leaseback transactions for net proceeds of $3.9 million and recorded total gains of less than $0.1 million. The leases have been accounted for as operating leases and contain an initial term of 20 years. In fiscal 2020, we completed two sale and leaseback transactions of our restaurant properties with one occurring during the first quarter of 2020 and the other occurring during the third quarter of 2020. In the first quarter of 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 the lease has been accounted for as an operating lease. Under the other arrangement, we received net proceeds of $2.4 million on a restaurant property sold and recognized a loss of less than $0.1 million on the sale. The initial term of the lease is 17 years and has been accounted for as an operating lease. In fiscal 2020, we also completed the sale of one of our corporate office buildings as we moved 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 were $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 and is presented within “Other operating expenses (income), net” in our consolidated statement of earnings. Company as lessor — The following table presents rental income ( in thousands ): 2022 2021 Owned Properties Leased Properties Total Owned Properties Leased Properties Total Operating lease income - franchise $ 19,221 $ 212,552 $ 231,773 $ 20,132 $ 218,028 $ 238,160 Variable lease income - franchise 12,418 96,002 108,420 12,363 96,111 108,474 Amortization of favorable and unfavorable lease contracts, net — 198 198 — — — Franchise rental revenues $ 31,639 $ 308,752 $ 340,391 $ 32,495 $ 314,139 $ 346,634 Operating lease income - closed restaurants and other (1) $ 60 $ 6,347 $ 6,407 $ — $ 6,027 $ 6,027 ________________________ (1) Primarily relates to closed restaurant properties included in “Other operating expense (income), net” in our consolidated statements of earnings. The following table presents as of October 2, 2022, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): October 2, Fiscal year: 2023 $ 243,929 2024 217,567 2025 225,542 2026 211,507 2027 204,685 Thereafter 879,829 Total minimum rental receipts $ 1,983,059 Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Land $ 75,967 $ 89,791 Buildings 771,567 782,450 Equipment 2,750 223 850,284 872,464 Less accumulated depreciation (663,109) (657,030) $ 187,175 $ 215,434 |
Other Operating Expense (Income
Other Operating Expense (Income), Net | 12 Months Ended |
Oct. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Other Operating Expense (Income), Net | OTHER OPERATING EXPENSE (INCOME), NET Other operating expense (income), net, in the accompanying consolidated statements of earnings is comprised of the following in each fiscal year ( in thousands ): 2022 2021 2020 Acquisition, integration, and restructuring costs $ 20,081 $ 7 $ 1,168 Costs of closed restaurants and other 4,290 1,907 1,872 Restaurant impairment charges 5,927 — — Accelerated depreciation 1,124 1,592 235 Gains on disposition of property and equipment, net (30,533) (6,888) (9,768) $ 889 $ (3,382) $ (6,493) Acquisition, integration, and restructuring costs — In 2022, costs incurred are related to the acquisition and integration of Del Taco, primarily associated with advisory, legal, and consulting services. In 2020, costs incurred relate to a restructuring plan that management initiated to reduce our general and administrative costs, which was completed in 2020. Restaurant closing costs — Cost of closed restaurants primarily include ongoing costs associated with closed restaurants and cancelled project costs. Restaurant impairment charges — In 2022, impairment charges included $3.2 million related to nine Jack in the Box company-operated restaurants that were closed in connection with the sale of the related markets and $2.7 million related to Jack in the Box restaurants leased or subleased to franchisees for which the lease and franchise agreements were early terminated during the year. Accelerated depreciation — When a long-lived asset will be replaced or otherwise disposed of prior to the end of its estimated useful life, the useful life of the asset is adjusted based on the estimated disposal date and accelerated depreciation is recognized. In 2022, 2021, and 2020 accelerated depreciation primarily related to facility improvements, restaurant remodels, and information technology assets. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Our principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which we consider a reportable operating segment. This segment reporting structure reflects our current management structure, internal reporting method and financial information used in deciding how to allocate our resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. We measure and evaluate our segments based on segment revenues and segment profit. Our measure of segment profit excludes depreciation and amortization, share-based compensation, company-owned life insurance (“COLI”) gains/losses, net of changes in our non-qualified deferred compensation obligation supported by these policies, acquisition, integration, and restructuring expenses, gains on the sale of company-operated restaurants, and amortization of favorable and unfavorable leases and subleases, net. The following table provides information related to our operating segments in each period ( in thousands ): 2022 2021 2020 Revenues by segment: Jack in the Box $ 1,151,188 $ 1,143,670 $ 1,021,506 Del Taco 316,895 — — Consolidated revenues $ 1,468,083 $ 1,143,670 $ 1,021,506 Segment operating profit: Jack in the Box $ 310,745 $ 327,157 $ 282,748 Del Taco 27,981 — — Total segment operating profit $ 338,726 $ 327,157 $ 282,748 Depreciation and amortization 56,100 46,500 52,798 Acquisition, integration, and restructuring costs 20,081 7 1,168 Share-based compensation 7,122 4,048 4,394 Net COLI losses (gains) 9,911 (9,141) (2,935) Gains on the sale of company-operated restaurants (3,878) (4,203) (3,261) Amortization of favorable and unfavorable leases and subleases, net 1,120 — — Earnings from operations $ 248,270 $ 289,946 $ 230,584 Total capital expenditures by segment: Jack in the Box $ 31,601 $ 41,008 $ 19,528 Del Taco 14,874 — — Total capital expenditures $ 46,475 $ 41,008 $ 19,528 Total depreciation and amortization by segment: Jack in the Box $ 39,895 $ 46,500 $ 52,798 Del Taco 16,205 — — Total depreciation and amortization $ 56,100 $ 46,500 $ 52,798 We do not evaluate, manage or measure performance of segments using asset, interest income and expense, or income tax information; accordingly, this information by segment is not prepared or disclosed. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income taxes consist of the following in each fiscal year ( in thousands ): 2022 2021 2020 Current: Federal $ 28,934 $ 36,051 $ 19,721 State 9,320 11,793 7,844 38,254 47,844 27,565 Deferred: Federal 5,344 4,440 4,625 State 2,513 3,568 537 7,857 8,008 5,162 Income tax expense from continuing operations $ 46,111 $ 55,852 $ 32,727 Income tax expense from discontinued operations $ — $ — $ 144 A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows: 2022 2021 2020 Income tax expense at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 5.2 % 5.1 % 5.3 % Stock compensation tax deficiency (excess tax benefit) 0.1 % (0.5) % (0.4) % Benefit of jobs tax credits, net of valuation allowance (0.6) % (0.1) % (0.5) % Adjustment to state tax provision — % 0.7 % — % Nondeductible transaction costs 0.6 % — % — % Expense (benefit) related to COLIs 2.1 % (1.5) % (0.9) % Officers’ compensation limitation 0.4 % 0.5 % 2.2 % Other, net (0.3) % — % 0.1 % 28.5 % 25.2 % 26.8 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below ( in thousands ): 2022 2021 Deferred tax assets: Operating and finance lease liabilities $ 340,317 $ 237,509 Accrued defined benefit pension and postretirement benefits 19,090 28,837 Accrued legal settlements 15,158 2,378 Deferred income 13,524 12,083 Accrued insurance 8,339 5,389 Share-based compensation 5,094 4,039 Tax loss and tax credit carryforwards 4,399 3,129 Accrued incentive compensation 2,402 3,455 Other reserves and allowances 1,627 1,672 Accrued compensation expense 1,329 710 Property and equipment, net of impairment — 5,922 Other, net 2,319 3,424 Total gross deferred tax assets 413,598 308,547 Valuation allowance (1,140) (1,349) Total net deferred tax assets 412,458 307,198 Deferred tax liabilities: Operating and finance lease ROU assets (349,903) (242,038) Intangible assets (87,165) (11,349) Property and equipment, principally due to differences in depreciation (5,656) — Investment basis limitation (6,010) — Other (1,408) (2,294) Total gross deferred tax liabilities (450,142) (255,681) Net deferred tax (liabilities) assets $ (37,684) $ 51,517 Deferred tax assets as of October 2, 2022 include federal and state gross net operating loss carryforwards of approximately $24.6 million, of which $19.2 million has an indefinite carryforward. The remainder will expire at various times between 2023 and 2042. At October 2, 2022, we recorded a valuation allowance of $1.1 million related to state tax credits, which decreased from the $1.3 million at October 3, 2021 due to the release of the valuation allowance on California Enterprise Zone Credits. We believe it is more likely than not that these credit carryforwards will not be realized and that all other deferred tax assets will be realized through future taxable income or alternative tax strategies. The major jurisdictions in which the Company files income tax returns includes the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal year 2019 and forward. The statutes of limitations for California and Texas, which constitutes the Company's major state tax jurisdictions, have not expired for fiscal years 2018 and forward. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Oct. 02, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS We sponsor programs that provide retirement benefits to our employees. These programs include defined contribution plans, defined benefit pension plans, and postretirement healthcare plans. Defined contribution plans — We maintain two qualified savings plans pursuant to Section 401(k) of the Internal Revenue Code (“IRC”). The plans allows all employees who meet certain age and minimum service requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $2.1 million in fiscal 2022, and $1.6 million in fiscal years 2021 and 2020, respectively. We also maintain an unfunded, non-qualified deferred compensation plan for key executives and other members of management whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRC rules. Effective January 1, 2016, this non-qualified plan was amended to replace the company matching contribution with an annual restoration match that is intended to “restore” up to the full match for participants whose elective deferrals (and related company matching contributions) to the qualified savings plan were limited due to IRC rules. A participant’s right to the Company restoration match vests immediately. This plan allows participants to defer up to 50% of their salary and 85% of their bonus, on a pre-tax basis. Our contributions under the non-qualified deferred compensation plan were less than $0.1 million in fiscal years 2022, and 2021, respectively and $0.3 million in 2020. Defined benefit pension plans — We sponsor two defined benefit pension plans, a “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. In fiscal 2011, the Board of Directors approved changes to our Qualified Plan whereby participants will no longer accrue benefits effective December 31, 2015. Benefits under both plans are based on the employees’ years of service and compensation over defined periods of employment. In the fourth quarter of fiscal 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. 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 Postretirement healthcare plans — We also sponsor two healthcare plans, closed to new participants, that provide postretirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. Obligations and funded status — The following table provides a reconciliation of the changes in benefit obligations, plan assets, and funded status of our retirement plans for each fiscal year ( in thousands ): Qualified Plan SERP Postretirement Health Plans 2022 2021 2022 2021 2022 2021 Change in benefit obligation: Obligation at beginning of year $ 410,053 $ 412,573 $ 75,225 $ 78,971 $ 17,162 $ 20,965 Interest cost 12,506 12,558 2,173 2,169 489 563 Participant contributions — — — — 92 112 Actuarial (gain) loss (114,999) (785) (14,830) (672) (4,062) (3,525) Benefits paid (14,218) (14,293) (5,677) (5,243) (1,204) (1,044) Other — — — — 100 91 Obligation at end of year $ 293,342 $ 410,053 $ 56,891 $ 75,225 $ 12,577 $ 17,162 Change in plan assets: Fair value at beginning of year $ 409,708 $ 365,510 $ — $ — $ — $ — Actual (loss) return on plan assets (91,539) 58,491 — — — — Participant contributions — — — — 92 112 Employer contributions — — 5,677 5,243 1,012 841 Benefits paid (14,218) (14,293) (5,677) (5,243) (1,204) (1,044) Other — — — — 100 91 Fair value at end of year $ 303,951 $ 409,708 $ — $ — $ — $ — Funded (unfunded) status at end of year $ 10,609 $ (345) $ (56,891) $ (75,225) $ (12,577) $ (17,162) Amounts recognized on the balance sheet: Noncurrent assets $ 10,609 $ — $ — $ — $ — $ — Current liabilities — — (5,213) (5,216) (1,081) (1,115) Noncurrent liabilities — (345) (51,678) (70,009) (11,496) (16,047) Total asset (liability) recognized $ 10,609 $ (345) $ (56,891) $ (75,225) $ (12,577) $ (17,162) Amounts in AOCI not yet reflected in net periodic benefit cost: Unamortized actuarial loss (gain), net $ 101,372 $ 108,922 $ 15,979 $ 32,475 $ (10,781) $ (7,359) Unamortized prior service cost — — 34 53 — — Total $ 101,372 $ 108,922 $ 16,013 $ 32,528 $ (10,781) $ (7,359) Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial gain $ (5,357) $ (39,936) $ (14,830) $ (672) $ (4,062) $ (3,526) Amortization of actuarial (loss) gain (2,193) (3,510) (1,666) (1,743) 640 341 Amortization of prior service cost — — (19) (19) — — Total recognized in OCI (7,550) (43,446) (16,515) (2,434) (3,422) (3,185) Net periodic benefit (credit) cost (3,404) (3,272) 3,858 3,931 (151) 222 Total recognized in comprehensive income $ (10,954) $ (46,718) $ (12,657) $ 1,497 $ (3,573) $ (2,963) Amounts in AOCI expected to be amortized in fiscal 2023 net periodic benefit cost: Net actuarial loss (gain) $ 2,349 $ 718 $ (932) Prior service cost — 19 — Total $ 2,349 $ 737 $ (932) Additional year-end pension plan information — The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) also reflects the actuarial present value of benefits attributable to employee service rendered to date but does not include the effects of estimated future pay increases. Therefore, the ABO as compared to plan assets is an indication of the assets currently available to fund vested and nonvested benefits accrued through the end of the fiscal year. The funded status is measured as the difference between the fair value of a plan’s assets and its PBO. As of October 2, 2022 the Qualified Plan’s ABO was less than the fair value of its plan assets whereas as of October 3, 2021, the Qualified Plan’s ABO exceeded the fair value of its plan assets. The SERP is an unfunded plan and, as such, had no plan assets as of October 2, 2022 and October 3, 2021. The following sets forth the PBO, ABO, and fair value of plan assets of our pension plans as of the measurement date in each fiscal year ( in thousands ): 2022 2021 Qualified Plan: Projected benefit obligation $ 293,342 $ 410,053 Accumulated benefit obligation $ 293,342 $ 410,053 Fair value of plan assets $ 303,951 $ 409,708 SERP: Projected benefit obligation $ 56,891 $ 75,225 Accumulated benefit obligation $ 56,891 $ 75,225 Fair value of plan assets $ — $ — Net periodic benefit cost — The components of the fiscal year net periodic benefit cost were as follows ( in thousands ): 2022 2021 2020 Qualified Plan: Interest cost $ 12,506 $ 12,558 $ 13,377 Expected return on plan assets (18,103) (19,340) (19,578) Pension settlements — — 39,218 Actuarial loss 2,193 3,510 3,644 Net periodic benefit (credit) cost $ (3,404) $ (3,272) $ 36,661 SERP: Interest cost $ 2,173 $ 2,169 $ 2,499 Actuarial loss 1,666 1,743 1,652 Amortization of unrecognized prior service cost 19 19 85 Net periodic benefit cost $ 3,858 $ 3,931 $ 4,236 Postretirement health plans: Interest cost $ 489 $ 563 $ 807 Actuarial (gain) loss (640) (341) 18 Net periodic benefit (credit) cost $ (151) $ 222 $ 825 Prior service costs are amortized on a straight-line basis from date of participation to full eligibility. Unrecognized gains or losses are amortized using the “corridor approach” under which the net gain or loss in excess of 10% of the greater of the PBO or the market-related value of the assets, if applicable, is amortized. For our Qualified Plan, actuarial losses are amortized over the average future expected lifetime of all participants expected to receive benefits. For our SERP, actuarial losses are amortized over the expected remaining future lifetime for inactive participants, and for our postretirement health plans, actuarial losses are amortized over the expected remaining future lifetime of inactive participants expected to receive benefits. Assumptions — We determine our actuarial assumptions on an annual basis. In determining the present values of our benefit obligations and net periodic benefit costs as of and for the fiscal years ended October 2, 2022, October 3, 2021, and September 27, 2020, we used the following weighted-average assumptions: 2022 2021 2020 Assumptions used to determine benefit obligations (1): Qualified Plan: Discount rate 5.63% 3.11% 3.10% SERP: Discount rate 5.80% 2.99% 2.84% Rate of future pay increases (2) N/A N/A N/A Postretirement health plans: Discount rate 5.82% 2.95% 2.77% Assumptions used to determine net periodic benefit cost (3): Qualified Plan: Discount rate (4) 3.11% 3.10% 3.36% Long-term rate of return on assets (5) 4.50% 5.40% 5.80% SERP: Discount rate 2.99% 2.84% 3.24% Rate of future pay increases (2) N/A N/A 3.50% Postretirement health plans: Discount rate 2.95% 2.77% 3.24% ________________________ (1) Determined as of end of year. (2) Rate is not applicable as there are no active employees as of fiscal year end 2020, 2021 and 2022. (3) Determined as of beginning of year. (4) Remeasurements were performed in the first, second, and third quarters of fiscal 2020 using 3.61%, 3.38%, and 3.13% respectively. (5) Remeasurements were performed in the first, second, and third quarters of fiscal 2020 using 5.9%, 5.2%, and 5.4% respectively. The assumed discount rates were determined by considering the average of pension yield curves constructed of a population of high-quality bonds with a Moody’s or Standard and Poor’s rating of “AA” or better whose cash flow from coupons and maturities match the year-by-year projected benefit payments from the plans. As benefit payments typically extend beyond the date of the longest maturing bond, cash flows beyond 30 years were discounted back to the 30th year and then matched like any other payment. The assumed expected long-term rate of return on assets is the weighted-average rate of earnings expected on the funds invested or to be invested to provide for the pension obligations. The long-term rate of return on assets was determined taking into consideration our projected asset allocation and economic forecasts prepared with the assistance of our actuarial consultants. The assumed discount rate and expected long-term rate of return on assets have a significant effect on amounts reported for our pension and postretirement plans. If the discount rate and long-term rate of return used were decreased by a quarter percentage point, fiscal 2022 earnings before income taxes would have decreased by $0.1 million and decreased by $1.0 million, respectively. For measurement purposes, the weighted-average assumed health care cost trend rates for our postretirement health plans were as follows for each fiscal year: 2022 2021 2020 Healthcare cost trend rate for next year: Participants under age 65 6.25% 6.50% 6.75% Participants age 65 or older 5.75% 6.00% 6.25% Rate to which the cost trend rate is assumed to decline: Participants under age 65 4.50% 4.50% 4.50% Participants age 65 or older 4.50% 4.50% 4.50% Year the rate reaches the ultimate trend rate: Participants under age 65 2030 2030 2030 Participants age 65 or older 2028 2028 2028 The assumed healthcare cost trend rate represents our estimate of the annual rates of change in the costs of the healthcare benefits currently provided by our postretirement plans. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. The healthcare cost trend rate assumption has a significant effect on the amounts reported. Plan assets — Our investment philosophy is to (1) protect the corpus of the fund; (2) establish investment objectives that will allow the market value to exceed the present value of the vested and unvested liabilities over time; while (3) obtaining adequate investment returns to protect benefits promised to the participants and their beneficiaries. Our asset allocation strategy utilizes multiple investment managers in order to maximize the plan’s return while minimizing risk. We regularly monitor our asset allocation, and senior financial management and the Finance Committee of the Board of Directors review performance results quarterly. We continually review our target asset allocation for our Qualified Plan and when changes are made, we reallocate our plan assets over a period of time, as deemed appropriate by senior financial management, to achieve our target asset allocation. Our plan asset allocation at the end of fiscal 2022 and target allocations were as follows: 2022 Target Minimum Maximum Cash & cash equivalents 1% 1% —% —% Domestic equities 11% 11% 5% 17% International equities 11% 11% 5% 17% Core fixed funds 57% 64% 57% 71% High yield 2% 2% —% 5% Alternative investments 4% 4% —% 8% Real estate 7% —% —% 5% Real return bonds 7% 7% —% 14% 100% 100% The Company measures its defined benefit plan assets and obligations as of the month-end date closest to its fiscal year end, which is a practical expedient under FASB authoritative guidance. The fair values of the Qualified Plan’s assets by asset category are as follows ( in thousands ): Total Quoted Prices Significant Significant Items Measured at Fair Value at September 30, 2022: Asset Category: Cash and cash equivalents (1) $ 2,267 $ — $ 2,267 $ — Equity: U.S. (2) 33,659 33,659 — — International (3),(4) 32,807 16,557 — — Fixed income: Investment grade (5) 193,426 20,138 173,288 — High yield (6) 6,970 6,970 — — Alternatives (4),(7) 12,061 — — — Real estate (4),(8) 22,761 — — — $ 303,951 $ 77,324 $ 175,555 $ — Items Measured at Fair Value at September 30, 2021: Asset Category: Cash and cash equivalents (1) $ 1,969 $ — $ 1,969 $ — Equity: U.S. (2) 66,921 66,921 — — International (3),(4) 63,087 31,128 — — Fixed income: Investment grade (5) 219,295 20,701 198,594 — High yield (6) 10,156 10,156 — — Alternatives (4),(7) 26,519 — — — Real estate (4),(8) 21,761 — — — $ 409,708 $ 128,906 $ 200,563 $ — ________________________ (1) Cash and cash equivalents are comprised of commercial paper, short-term bills and notes, and short-term investment funds, which are valued at quoted prices in active markets for similar securities. (2) U.S. equity securities are comprised of investments in common stock of U.S. companies for total return purposes. These investments are valued by the trustee at closing prices from national exchanges on the valuation date. (3) International equity securities are comprised of investments in common stock of companies located outside of the U.S. for total return purposes. These investments are valued by the trustee at closing prices from national exchanges on the valuation date, or the values are adjusted as a result of market movements following the close of local trading using inputs to models that are observable either directly or indirectly. The portion of these investments that are measured at fair value using the net asset value per share practical expedient (see note 4 below) can be redeemed on a monthly basis. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (5) Investment grade fixed income consists of debt obligations either issued by the U.S. government or have a rating of BBB- / Baa or higher assigned by a major credit rating agency. These investments are valued based on unadjusted quoted market prices (Level 1), or based on quoted prices in inactive markets, or whose values are based on models, but the inputs to those models are observable either directly or indirectly (Level 2). (6) High yield fixed income consists primarily of debt obligations that have a rating of below BBB- / Baa or lower assigned by a major credit rating agency. These investments are valued based on unadjusted quoted market prices. (7) Alternative investments consist primarily of an investment in asset classes other than stocks, bonds, and cash. Alternative investments can include commodities, hedge funds, private equity, managed futures, and derivatives. These investments are valued based on unadjusted quoted market prices and can be redeemed on a bi-monthly basis. (8) Real estate is investments in a real estate collective trust for purposes of total return. These investments are valued based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These investments can be redeemed on a quarterly basis. Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, there was no minimum requirement. We do not anticipate making any contributions to our Qualified Plan in fiscal 2023. Contributions expected to be paid in the next fiscal year, the projected benefit payments for each of the next five fiscal years, and the total aggregate amount for the subsequent five fiscal years are as follows ( in thousands ): Defined Benefit Plans Postretirement Estimated net contributions during fiscal 2023 $ 5,213 $ 1,112 Estimated future year benefit payments during fiscal years: 2023 $ 20,784 $ 1,112 2024 $ 20,868 $ 1,127 2025 $ 21,185 $ 1,137 2026 $ 21,685 $ 1,139 2027 $ 22,190 $ 1,135 2028-2032 $ 117,216 $ 5,383 We will 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 economic environment. Expected benefit payments are based on the same assumptions used to measure our benefit obligations at October 2, 2022 and include estimated future employee service, if applicable. |
Share-Based Employee Compensati
Share-Based Employee Compensation | 12 Months Ended |
Oct. 02, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Employee Compensation | SHARE-BASED EMPLOYEE COMPENSATION Stock incentive plans — We offer share-based compensation plans to attract, retain, and motivate key officers, employees, and non-employee directors to work toward the financial success of the Company. Our stock incentive plans are administered by the Compensation Committee of the Board of Directors and have been approved by the stockholders of the Company. The terms and conditions of our share-based awards are determined by the Compensation Committee for each award date and may include provisions for the exercise price, expirations, vesting, restriction on sales, and forfeitures, as applicable. We issue new shares to satisfy stock issuances under our stock incentive plans. Our Amended and Restated 2004 Stock Incentive Plan authorizes the issuance of up to 11,600,000 common shares in connection with the granting of stock options, stock appreciation rights, restricted stock purchase rights, restricted stock bonuses, restricted stock units, or performance units to our employees and directors. There were 1,479,033 shares of common stock available for future issuance under this plan as of October 2, 2022. In connection with the Merger Agreement, on the Closing Date, the Company assumed the Del Taco Restaurants, Inc. 2015 Omnibus Incentive Plan which authorized the issuance of common shares in connection with the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, or performance awards to their employees, directors, and consultants. There were 174,553 shares of common stock available for future issuance under this plan as of October 2, 2022. We also maintain a deferred compensation plan for non-management directors under which those who are eligible to receive fees or retainers may choose to defer receipt of their compensation. The deferred amounts are converted to stock equivalents. The plan requires settlement in shares of our common stock based on the number of stock equivalents and dividend equivalents at the time of a participant’s separation from the Board of Directors. This plan provides for the issuance of up to 350,000 shares of common stock in connection with the crediting of stock equivalents. There were 142,918 shares of common stock available for future issuance under this plan as of October 2, 2022. Compensation expense — The components of share-based compensation expense, included within “Selling, general, and administrative expenses” in our consolidated statements of earnings, in each fiscal year are as follows ( in thousands ): 2022 2021 2020 Nonvested stock units $ 4,544 $ 2,969 $ 3,526 Stock options 19 25 351 Performance share awards 1,835 830 254 Nonvested restricted stock awards 434 — — Non-management directors’ deferred compensation 290 224 263 Total share-based compensation expense $ 7,122 $ 4,048 $ 4,394 Nonvested restricted stock units — Nonvested restricted stock units (“RSUs”) are generally issued to employees and non-employee directors. Grants to executive officers of time-vesting RSUs vest ratably over four years and are subject to a stock holding requirement of 50% of after-tax net shares resulting from the vesting of RSUs and must be held until the multiple of base salary stock ownership is met. There were 75,791 of such RSUs outstanding as of October 2, 2022. RSUs issued to non-management directors vest 12 months from the date of grant, or upon termination of board service, including RSUs for which the director elected to defer receipt until termination of board service, and totaled 74,830 units outstanding as of October 2, 2022. RSUs issued to certain other employees either cliff vest or vest ratably over three years and totaled 85,985 units outstanding as of October 2, 2022. These awards are amortized to compensation expense over the estimated vesting period based upon the fair value of our common stock on the award date discounted by the present value of the expected dividend stream over the vesting period. The following is a summary of RSU activity for fiscal 2022: Shares Weighted- RSUs outstanding at October 3, 2021 141,197 $ 76.84 Granted 130,862 $ 78.28 Released (28,600) $ 89.02 Forfeited (6,853) $ 83.34 RSUs outstanding at October 2, 2022 236,606 $ 75.98 As of October 2, 2022, there was approximately $9.5 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.4 years. The weighted-average grant date fair value of awards granted was $78.28, $95.44, and $73.94 in fiscal years 2022, 2021, and 2020, respectively. In fiscal years 2022, 2021, and 2020, the total fair value of RSUs that vested and were released was $2.5 million, $4.3 million, and $8.7 million, respectively. Modification of RSU awards — In fiscal 2020, we entered into a Retention, Transition and Separation Agreement with our former Chairman and Chief Executive Officer, which sets forth the terms of his transition and certain benefits he is eligible to receive, pro-rated through the duration of the transition period, which included vesting of his final tranche of unvested restricted stock units remaining under his November 2015 restricted stock unit award scheduled to vest in November 2020. Consequently, 23,128 shares vested on his last day of employment on July 31, 2020. This was accounted for as an equity award modification under ASC Topic 718, and as the fair value of the modified award was less than previously recognized compensation, no incremental compensation costs were recorded by the Company. Stock options — Option grants have contractual terms of seven years and employee options vest over a three-year period. Options may vest sooner upon retirement from the Company for employees meeting certain age and years of service thresholds. All option grants provide for an option exercise price equal to the closing market value of the common stock on the date of grant. The following is a summary of stock option activity for fiscal 2022: Shares Weighted- Weighted- Aggregate Options outstanding at October 3, 2021 33,117 $ 92.44 Granted — N/A Exercised (667) $ 75.23 Forfeited — N/A Expired — N/A Options outstanding at October 2, 2022 32,450 $ 92.80 2.33 $ — Options exercisable at October 2, 2022 29,446 $ 94.59 2.14 $ — The aggregate intrinsic value in the table above is the amount by which the current market price of our stock on October 2, 2022 exceeds the weighted-average exercise price. We use a valuation model to determine the fair value of options granted that requires the input of highly subjective assumptions, including the expected volatility of the stock price. The following table presents the weighted-average assumptions used for stock option grants in each fiscal year, along with the related weighted-average grant date fair value: 2022 (1) 2021 (1) 2020 Risk-free interest rate N/A N/A 1.7% Expected dividends yield N/A N/A 2.1% Expected stock price volatility N/A N/A 28.1% Expected life of options (in years) N/A N/A 3.47 Weighted-average grant date fair value N/A N/A $13.97 ________________________ (1) No stock option awards were granted in fiscal 2022 or fiscal 2021. The risk-free interest rate was determined by a yield curve of risk-free rates based on published U.S. Treasury spot rates in effect at the time of grant and has a term equal to the expected life of the related options. The dividend yield assumption is based on the Company’s history and expectations of dividend payouts at the grant date. The expected stock price volatility in all years represents the Company’s historical volatility. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. As of October 2, 2022, there was less than $0.1 million of total unrecognized compensation cost related to stock options grants that is expected to be recognized over a weighted-average period of 0.2 years. The total intrinsic value of stock options exercised was less than $0.1 million, $1.6 million, and $0.7 million in fiscal years 2022, 2021, and 2020, respectively. Performance share awards — Performance share awards, granted in the form of stock units, represent a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. Performance share awards issued to executives vest at the end of a three-year period and vested amounts may range from 0% to a maximum of 150% of targeted amounts depending on the achievement of performance measures at the end of a three-year period. If the awardee ceases to be employed by the Company prior to the last day of the performance period due to retirement, disability, or death, the performance share awards become vested pro-rata based on the number of full accounting periods the awardee was continuously employed by the Company during the performance period. The expected cost of the shares is based on the fair value of our stock on the date of grant and is reflected over the vesting period with a reduction for estimated forfeitures. These awards may be settled in cash or shares of common stock at the election of the Company on the date of grant. It is our intent to settle these awards with shares of common stock. The following is a summary of performance share award activity for fiscal 2022: Shares Weighted- Performance share awards outstanding at October 3, 2021 35,097 $ 79.92 Granted 37,822 $ 78.95 Issued (6,905) $ 82.80 Forfeited — $ — Performance adjustments (632) $ 70.56 Performance share awards outstanding at October 2, 2022 65,382 $ 79.14 As of October 2, 2022, there was approximately $2.7 million of total unrecognized compensation cost related to performance share awards, which is expected to be recognized over a weighted-average period of 1.8 years. The weighted-average grant date fair value of awards granted was $78.95, $88.88, and $81.02 in fiscal years 2022, 2021, and 2020, respectively. The total fair value of awards that became fully vested during fiscal years 2022, 2021, and 2020 was $0.1 million, $0.6 million, and $0.5 million, respectively. Nonvested restricted stock awards — As part of the Merger Agreement, on the Closing Date, the Company assumed Del Taco’s historical equity compensation plans. The awards under Del Taco’s historical equity compensation plans that were not subject to accelerated vesting were exchanged for replacement awards of the Company, which included Del Taco’s non-accelerating restricted stock awards. Immediately following the Merger, these replacement awards were modified to accelerate the remaining vesting period to be one year following the Closing Date, other than the awards already scheduled to vest on June 30, 2022. The following is a summary of nonvested restricted stock awards for fiscal 2022: Shares Weighted- Restricted stock awards outstanding at October 3, 2021 — $ — Granted 21,152 $ 82.33 Issued (8,368) $ 82.33 Forfeited (8,114) $ 82.33 Restricted stock awards outstanding at October 2, 2022 4,670 $ 82.33 As of October 2, 2022, there was approximately $0.2 million of total unrecognized compensation cost related to nonvested stock awards, which is expected to be recognized over a weighted-average period of 0.4 years. The weighted-average grant date fair value of awards granted was $82.33 in fiscal 2022. The total fair value of awards that vested and were released during fiscal 2022 was $0.7 million. Non-management directors’ deferred compensation — All awards outstanding under our directors’ deferred compensation plan are accounted for as equity-based awards and deferred amounts are converted into stock equivalents based on a per share price equal to the average of the closing price of our common stock for the 10 trading days immediately preceding the date the deferred compensation is credited to the director’s account. During fiscal 2022 and 2021, no shares of common stock were issued in connection with director retirements. During fiscal 2020, 204 shares of common stock were issued in connection with director retirements with a fair value of less than $0.1 million. The following is a summary of the stock equivalent activity for fiscal 2022: Stock Weighted- Stock equivalents outstanding at October 3, 2021 109,463 $ 43.06 Deferred directors’ compensation 3,438 $ 84.35 Dividend equivalents 3,373 $ 77.44 Stock equivalents outstanding at October 2, 2022 116,274 $ 45.28 |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Oct. 02, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | STOCKHOLDERS’ DEFICIT Repurchases of common stock — In fiscal 2022, the Company purchased 0.3 million shares of its common stock for an aggregate cost of $25.0 million. As of October 2, 2022, there was $175.0 million remaining amount under share repurchase programs authorized by the Board of Directors which expires in November 2023. Dividends — In fiscal 2022, the Board of Directors declared four cash dividends of $0.44, respectively, totaling $37.2 million. Future dividends are subject to approval by our Board of Directors. |
Average Shares Outstanding
Average Shares Outstanding | 12 Months Ended |
Oct. 02, 2022 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Average Shares Outstanding | AVERAGE SHARES OUTSTANDINGOur basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include nonvested stock awards and units, stock options, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods. The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding in each fiscal year ( in thousands ): 2022 2021 2020 Weighted-average shares outstanding — basic 21,195 22,402 23,125 Effect of potentially dilutive securities: Nonvested stock awards and units 47 62 137 Stock options 1 9 — Performance share awards 2 5 7 Weighted-average shares outstanding — diluted 21,245 22,478 23,269 Excluded from diluted weighted-average shares outstanding: Antidilutive 23 29 318 Performance conditions not satisfied at the end of the period 61 25 14 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase commitments — Jack in the Box and Del Taco have long-term beverage supply agreements with certain major beverage vendors, which provide fountain products and marketing support funding to the Company and its franchisees. These agreements require minimum purchases of fountain beverage syrup by the Company and its franchisees at agreed upon prices until the total volume commitments have been reached. Based on current pricing and ratio of usage at company-operated to franchised restaurants as of October 2, 2022, total beverage purchase requirements under these agreements is estimated to be approximately $75.2 million over the next seven years. We also have entered into various arrangements with vendors providing information technology services with no early termination fees. The Company’s unconditional purchase obligations on these contracts total approximately $6.7 million over the next four years. Legal matters — We assess contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of October 2, 2022, the Company had accruals of $59.2 million for all of its legal matters in aggregate, presented within “Accrued liabilities” on our consolidated balance sheet. 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. As of October 2, 2022, we estimate the aggregate range of reasonably possible losses, in excess of amounts accrued for these matters as of such date, to be up to approximately $6.5 million, excluding interest and attorney fees. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure and the ultimate amount of loss may differ materially from these estimates in the near term. Gessele v. Jack in the Box Inc. — In August 2010, five former Jack in the Box 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 Jack in the Box 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. The parties participated in a voluntary mediation on March 16, 2020, but the matter did not settle. On October 24, 2022, a jury awarded plaintiffs approximately $6.4 million in damages and penalties, in addition to interest and attorney fees to be determined by the court at a later date. The Company continues to dispute liability and the damage award and will defend against both through post-trial motions and all other available appellate remedies. Torrez — In March 2014, a former Del Taco employee filed a purported Private Attorneys General Act claim and class action alleging various causes of action under California’s labor, wage, and hour laws. The plaintiff generally alleges Del Taco did not appropriately provide meal and rest breaks and failed to pay wages and reimburse business expenses to its California non-exempt employees. On November 12, 2021, the court granted, in part, the plaintiff's motion for class certification. The parties participated in a voluntary mediation on May 24, 2022 and June 3, 2022. On June 4, 2022, we entered into a Settlement Memorandum of Understanding (the “Agreement”) which obligates the Company to pay a gross settlement amount of $50.0 million, for which in exchange we will be released from all claims by the parties. The Agreement contains no admission of wrongdoing and is contingent upon various conditions, including, but not limited to, court approvals. There can be no assurance that the Agreement will be approved by the court nor upheld if challenged on appeal. As of October 2, 2022, the Company has accrued the settlement amount, included within “Accrued liabilities” on our consolidated balance sheet. J&D Restaurant Group — On April 17, 2019, the trustee for a bankrupt former franchisee filed a complaint seeking to recover assets in the form of actual and exemplary damages for the bankruptcy trust and generally alleging the Company wrongfully terminated the franchise agreements and unreasonably denied two perspective purchasers that the former franchisee presented. The parties participated in a mediation in April 2021, but the matter did not settle. Trial in this matter is currently set for January 2023, with the parties scheduled to participate in another court ordered mediation in December 2022. Other legal matters — In addition to the matters 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. Lease guarantees — We remain contingently liable for certain leases relating to our former Qdoba business which we sold in fiscal 2018. Under the Qdoba Purchase Agreement, the buyer has indemnified the Company of all claims related to these guarantees. As of October 2, 2022, the maximum potential liability of future undiscounted payments under these leases is approximately $23.5 million. The lease terms extend for a maximum of approximately 15 more years and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event of default, 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. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash Flow Information | 12 Months Ended |
Oct. 02, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Consolidated Cash Flow Information | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands) 2022 2021 2020 Cash paid during the year for: Income tax payments $ 33,819 $ 48,200 $ 29,360 Interest, net of amounts capitalized $ 70,475 $ 60,413 $ 68,612 Non-cash investing and financing transactions: Increase in notes and accounts receivable from the sale of restaurant properties $ 10,001 $ — $ — Increase in dividends accrued or converted to common stock equivalents $ 275 $ 232 $ 117 Consideration for franchise acquisitions $ 297 $ 1,305 $ 859 Increase (decrease) in obligations for purchases of property and equipment $ 1,637 $ 1,755 $ (2,696) Decrease in obligations for treasury stock repurchases $ — $ — $ (2,025) |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Oct. 02, 2022 | |
Supplemental Consolidated Financial Statement Information [Abstract] | |
Supplemental Consolidated Financial Statement Information | SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (in thousands) October 2, October 3, Accounts and other receivables, net: Trade $ 90,105 $ 75,273 Notes receivable, current portion 8,643 1,467 Income tax receivable 878 1,157 Other 10,152 2,730 Allowance for doubtful accounts (5,975) (6,292) $ 103,803 $ 74,335 Other assets, net: Company-owned life insurance policies $ 108,924 $ 123,566 Deferred rent receivable 43,891 46,234 Franchise tenant improvement allowances 32,429 34,124 Notes receivable, less current portion 11,624 4,544 Other 29,701 15,970 $ 226,569 $ 224,438 Accrued liabilities: Legal accruals $ 59,165 $ 7,540 Payroll and related taxes 43,837 34,649 Sales and property taxes 30,947 23,174 Insurance 32,272 21,218 Deferred rent income 18,525 17,892 Advertising 11,028 13,097 Deferred franchise fees and development fees 5,647 4,949 Other 52,511 25,898 $ 253,932 $ 148,417 Other long-term liabilities: Defined benefit pension plans $ 51,679 $ 70,354 Deferred franchise and development fees 40,802 36,571 Other 42,213 49,417 $ 134,694 $ 156,342 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn November 18, 2022, the Board of Directors declared a cash dividend of $0.44 per share, to be paid on December 22, 2022 to shareholders of record as of the close of business on December 7, 2022. Future dividends will be subject to approval by our Board of Directors. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box ® and Del Taco ® restaurant brands. On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines. Refer to Note 3, Business Combination , for further details. As of October 2, 2022, there were 146 company-operated and 2,035 franchise-operated Jack in the Box restaurants and 290 company-operated and 301 franchise-operated Del Taco restaurants. |
Basis of presentation | Basis of presentation — The accompanying 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”). Certain prior period information on the consolidated statement of earnings has been reclassified to conform to the current year presentation. |
Fiscal year | Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Our Del Taco subsidiary operates on a fiscal year ending the Tuesday closest to September 30. Comparisons throughout these notes to the consolidated financial statements refer to the 52-week period ended October 2, 2022 for the fiscal year 2022, and the 53-week and 52-week periods ended October 3, 2021 and September 27, 2020 for fiscal years 2021 and 2020, respectively |
Principles of consolidation | Principles of consolidation — The accompanying consolidated financial statements include the accounts of Jack in the Box Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. |
Use of estimates | Use of estimates — In preparing the 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. |
Restricted cash | Restricted cash — In accordance with the terms of our securitized financing facility, certain cash balances are required to be held in trust. Such restricted cash primarily represents cash collections and cash reserves held by the trustee to be used for payments of quarterly interest and commitment fees required for the Class A-2 Notes and Variable Funding Notes. |
Accounts and other receivables, net | Accounts and other receivables, net — Our accounts and other receivables, net is primarily comprised of receivables from franchisees, tenants, credit card processors, and insurance receivables. Franchisee receivables primarily include rents, property taxes, royalties, marketing, sourcing and technology support fees associated with lease and franchise agreements, and notes from certain of our franchisees. Tenant receivables relate to subleased properties where we are on the master lease agreement. We accrue interest on notes receivable based on the contractual terms. The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. The Company’s allowance for doubtful accounts has not historically been material. The following table summarizes the activity in our allowance for doubtful accounts ( in thousands ): 2022 2021 Balance as of beginning of period $ (6,292) $ (5,541) Provision for expected credit losses (4,744) (770) Write-offs charged against the allowance 5,061 19 Balance as of end of period $ (5,975) $ (6,292) |
Inventories | Inventories — Our inventories consist principally of food, packaging, and supplies, and are valued at the lower of cost or market on a first-in, first-out basis. |
Assets held for sale | Assets held for sale — Our assets held for sale typically includes property we plan to sell within the next year. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of assets held for sale. Long-lived assets that meet the held for sale criteria are reported at the lower of their carrying value or fair value, less estimated costs to sell. |
Property and equipment, net | Property and equipment, net — Expenditures for new facilities and equipment, and those that substantially increase the useful lives of the property, are capitalized. Facilities leased under finance leases are stated at the present value of minimum lease payments at the beginning of the lease term, not to exceed fair value. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and gains or losses on the dispositions are included in “Other operating expense (income), net” in the accompanying consolidated statements of earnings. |
Depreciation | Buildings, equipment, and leasehold improvements are generally depreciated using the straight-line method based on the estimated useful lives of the assets, over the initial lease term for certain assets acquired in conjunction with the lease commencement for leased properties, or the remaining lease term for certain assets acquired after the commencement of the lease for leased properties. In certain situations, one or more option periods may be used in determining the depreciable life of assets related to leased properties if we deem that an economic penalty would be incurred otherwise. In either circumstance, our policy requires lease term consistency when calculating the depreciation period, in classifying the lease and in computing straight-line rent expense. Building, leasehold improvement assets and equipment are assigned lives that range from 1 to 35 years. |
Impairment of long-lived assets | Impairment of long-lived assets — We evaluate long-lived assets, such as property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from our use and eventual disposition of the assets. If the carrying amount of a long-lived asset group exceeds the sum of related undiscounted future cash flows, we recognize an impairment loss by the amount that the carrying value of the assets exceeds fair value. Refer to Note 9, Other Operating Expense (Income), Net , for additional information. |
Goodwill and trademarks | Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit retained. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment annually during the fourth quarter, or more frequently if indicators of impairment are present. We first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit or indefinite-lived asset is less than its carrying amount. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying amount, we perform a single-step impairment test. To perform our impairment analysis, we estimate the fair value of the reporting unit and compare it to the carrying value. If the carrying value exceeds the fair value, an impairment loss is recognized equal to the excess. We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets during the fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset's fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is estimated by discounting the expected future after-tax cash flows associated with the intangible asset. |
Intangible assets, net | Intangible assets, net — Intangible assets primarily include franchise contracts, reacquired franchise rights and sublease assets. Franchise contracts, which represent the fair value of franchise agreements based on the projected royalty revenue stream as of the acquisition date, are amortized on a straight-line basis to “Depreciation and amortization expense” in the consolidated statements of earnings over the remaining term of the franchise agreements. Reacquired franchise rights are recorded in connection with our acquisition of franchised restaurants and are amortized on a straight-line basis to “Depreciation and amortization expense” in the consolidated statements of earnings over the term of the former franchise agreement. Sublease assets, which represent subleases with stated rent above comparable market rents, are amortized on a straight-line basis to “Franchise rental revenues” in the consolidated statements of earnings over the term of the related sublease. |
Company-owned life insurance | Company-owned life insurance — We have purchased company-owned life insurance (“COLI”) policies to support our non-qualified benefit plans. The cash surrender values of these policies were $108.9 million and $123.6 million as of October 2, 2022 and October 3, 2021, respectively, and are included in “Other assets, net”, in the accompanying consolidated balance sheets. Changes in cash surrender values are included in “Selling, general and administrative expenses” in the accompanying consolidated statements of earnings. These policies reside in an umbrella trust for use only to pay plan benefits to participants or to pay creditors if the Company becomes insolvent. |
Leases | Leases — 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, and 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 right-of-use (“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. |
Revenue recognition | Revenue recognition — “Company restaurant sales” include revenue recognized upon delivery of food and beverages to the customer at company-operated restaurants, which is when our obligation to perform is satisfied. Company restaurant sales exclude taxes collected from the Company’s customers. Gift cards, upon customer purchase, are recorded as deferred income and are recognized in revenue as they are redeemed. The Company operates loyalty programs in which members earn points primarily for food purchases. Points can then be redeemed for special reward offers. The Company allocates the consideration received on loyalty orders between the food purchased and the loyalty points earned, taking into consideration the expected redemption rate of loyalty points. The consideration allocated to the food is recognized as revenue at the time of sale. The consideration allocated to the loyalty points earned is deferred until the loyalty points are redeemed or expire. “Franchise rental revenues” received from franchised restaurants based on fixed rental payments are recognized as revenue over the term of the lease. Rental revenue from properties owned and leased by the Company and leased or subleased to franchisees is recognized on a straight-line basis over the respective term of the lease. Certain franchise rents, which are contingent upon sales levels, are recognized in the period in which the contingency is met. “Franchise royalties and other” primarily includes royalties and franchise fees received from our franchisees. Royalties are based upon a percentage of sales of the franchised restaurant and are recognized as earned. Franchise royalties are billed on a monthly or weekly basis. Franchise fees when a new restaurant opens or at the start of a new franchise term are recorded as deferred revenue when received and recognized as revenue over the term of the franchise agreement. “Franchise contributions for advertising and other services” includes franchisee contributions to our marketing funds billed on a monthly or weekly basis and sourcing and technology fees, as required under the franchise agreements. Contributions to our marketing funds are based on a percentage of sales and recognized as earned. Sourcing and technology services are recognized when the goods or services are transferred to the franchisee. Gift cards — We sell gift cards to our customers in our restaurants and through selected third parties. The gift cards sold to our customers have no stated expiration dates and are subject to actual or potential escheatment rights in several of the jurisdictions in which we operate. We recognize income from gift cards when redeemed by the customer. Deferred gift card income totaled $4.1 million and $2.2 million as of October 2, 2022 and October 3, 2021, respectively, and are included in “Accrued liabilities”, in the accompanying consolidated balance sheets. While we will continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity. In these circumstances, to the extent we determine there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may be recognized as income in our consolidated statements of earnings. Amounts recognized on unredeemed gift card balances were $0.7 million, $0.6 million, and $0.5 million in fiscal 2022, 2021, and 2020, respectively. Pre-opening costs — Pre-opening costs associated with the opening of a new restaurant or the remodeling of an existing restaurant consist primarily of property rent and employee training costs. Pre-opening costs associated with the opening of a restaurant that was closed upon acquisition consist of labor costs, maintenance and repair costs, and property rent. |
Self-insurance | Self-insurance — We are self-insured for a portion of our workers’ compensation, general liability, employee medical and dental, and automotive claims. We utilize a paid-loss plan for our workers’ compensation, general liability, and automotive programs, which have predetermined loss limits per occurrence and in the aggregate. We establish our undiscounted insurance liability and reserves using independent actuarial estimates of expected losses based on a statistical analysis of historical claims data. As of October 2, 2022, our estimated self-insurance liability was $31.9 million, and is included in “Accrued liabilities” in the accompanying consolidated balance sheet. |
Advertising costs | Advertising costs — We administer marketing funds at each of our restaurant brands that include contractual contributions. In 2022, 2021 and 2020, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales with the exception of our March 2020 and April 2020 marketing fees, which were temporarily reduced to 2% to 4%, respectively, in response to the economic burden associated with the COVID-19 pandemic. In 2022, marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Production costs of commercials, programming, and other marketing activities are charged to the marketing funds when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. When contributions to the marketing fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues on an annual basis since we are contractually obligated to spend these funds. As of October 2, 2022 and October 3, 2021, additional amounts accrued were $3.5 million and $9.5 million, respectively, for this requirement. Total contributions made by the Company are included in “Selling, general, and administrative expenses” in the accompanying consolidated statements of earnings. In fiscal 2022, 2021, and 2020 advertising costs were $32.6 million, $19.6 million, and $17.1 million, respectively. |
Share-based compensation | Share-based compensation — We account for our share-based compensation under the Financial Accounting Standards Board (“FASB”) authoritative guidance on stock compensation , which generally requires, among other things, that all employee share-based compensation be measured using a fair value method and that the resulting compensation cost be recognized in the financial statements. Compensation expense for our share-based compensation awards is generally recognized on a straight-line basis over the shorter of the vesting period or the period from the date of grant to the date the employee becomes eligible to retire. Refer to Note 13, Share-based Employee Compensation , for additional information. |
Income taxes | Income taxes — Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as tax loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize interest and, when applicable, penalties related to unrecognized tax benefits as a component of our income tax provision. Authoritative guidance issued by the FASB prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Refer to Note 11, Income Taxes , for additional information. |
Contingencies | Contingencies — We recognize liabilities for contingencies when we have an exposure that indicates it is probable that an asset has been impaired or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. Our ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. We record legal settlement costs when those costs are probable and reasonably estimable. Refer to Note 16, Commitments and Contingencies , for additional information. |
Business combinations | Business combinations — We account for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill. |
Effect of new accounting pronouncements | Effect of new accounting pronouncements adopted in fiscal 2022 — In October 2021 the FASB issued ASU 2021-08, Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) . This standard requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification (“ASC”) Topic 606 in order to align the recognition of a contract liability with the definition of a performance obligation. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. We elected to early adopt this standard in the second quarter of 2022. The adoption of ASU 2021-08 did not have a material impact on our consolidated financial statements. Effect of new accounting pronouncements to be adopted in future periods — We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity in our allowance for doubtful accounts ( in thousands ): 2022 2021 Balance as of beginning of period $ (6,292) $ (5,541) Provision for expected credit losses (4,744) (770) Write-offs charged against the allowance 5,061 19 Balance as of end of period $ (5,975) $ (6,292) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by segment and primary source for the fiscal year ended October 2, 2022 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 414,225 $ 286,845 $ 701,070 Franchise rental revenues 335,936 4,455 340,391 Franchise royalties 188,902 13,414 202,316 Franchise advertising contributions 183,076 10,907 193,983 Technology and sourcing fees 14,740 1,078 15,818 Franchise fees and other services 14,309 196 14,505 Total revenue $ 1,151,188 $ 316,895 $ 1,468,083 The following table disaggregates revenue by segment and primary source for the fiscal year ended October 3, 2021 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 387,766 $ — $ 387,766 Franchise rental revenues 346,634 — 346,634 Franchise royalties 193,908 — 193,908 Franchise advertising contributions 188,184 — 188,184 Technology and sourcing fees 16,361 — 16,361 Franchise fees and other services 10,817 — 10,817 Total revenue $ 1,143,670 $ — $ 1,143,670 The following table disaggregates revenue by segment and primary source for the fiscal ended September 27, 2020 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 348,987 $ — $ 348,987 Franchise rental revenues 320,647 — 320,647 Franchise royalties 171,407 — 171,407 Franchise advertising contributions 158,258 — 158,258 Technology and sourcing fees 15,295 — 15,295 Franchise fees and other services 6,912 — 6,912 Total revenue $ 1,021,506 $ — $ 1,021,506 |
Changes in Contract Assets and Liabilities | A summary of significant changes in our contract liabilities is presented below (in thousands) : 2022 2021 Deferred franchise and development fees at beginning of period $ 41,520 $ 43,816 Changes due to business combinations 6,193 — Revenue recognized during the period (5,891) (6,014) Additions during the period 4,627 3,718 Deferred franchise and development fees at end of period $ 46,449 $ 41,520 |
Estimated Future Franchise Fees | The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands) : 2023 $ 5,013 2024 $ 4,806 2025 $ 4,570 2026 $ 4,245 2027 $ 3,886 Thereafter $ 18,427 $ 40,947 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Franchise Acquisitions | The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data) : Amount Del Taco shares outstanding as of March 8, 2022 36,442 Del Taco RSAs subject to accelerated vesting 805 Del Taco RSUs subject to accelerated vesting 70 Del Taco options subject to accelerated vesting 292 Total Del Taco shares outstanding 37,610 Merger Consideration (per Del Taco share) $ 12.51 Total cash consideration paid to selling shareholders $ 470,500 Del Taco transaction costs paid by Jack in the Box (1) 7,141 Del Taco closing indebtedness settled by Jack in the Box (2) 115,219 Replacement share-based payment awards pre-combination vesting expense 449 Total aggregate purchase consideration $ 593,309 ____________________________ (1) Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company. (2) Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company. (in thousands) : Initial Allocation of Consideration Measurement Period Adjustments October 2, Total aggregate purchase consideration, net of $12,068 cash acquired $ 581,241 $ — $ 581,241 Assets: Accounts and other receivables 3,809 774 4,583 Inventories 3,233 — 3,233 Prepaid expenses 2,950 — 2,950 Other current assets 105 — 105 Property and equipment 150,826 (5,794) 145,032 Operating lease right-of-use assets 349,489 800 350,289 Intangible assets 12,371 — 12,371 Trademarks 283,500 — 283,500 Other assets 5,128 — 5,128 Liabilities: Current maturities of long-term debt 22 — 22 Current operating lease liabilities 21,991 — 21,991 Accounts payable 18,808 — 18,808 Accrued liabilities 66,739 45,840 112,579 Long-term debt, net of current maturities 349 — 349 Long-term operating lease liabilities, net of current portion 302,688 800 303,488 Deferred tax liabilities 88,203 (12,848) 75,355 Other long-term liabilities 13,080 — 13,080 Net assets acquired, excluding goodwill $ 299,531 $ (38,012) $ 261,519 Goodwill $ 281,710 $ 38,012 $ 319,722 The following table provides detail of the combined acquisitions in 2022, 2021, and 2020 ( dollars in thousands ): 2022 2021 2020 Restaurants acquired from franchisees 13 20 8 Inventory $ — $ 258 $ 73 Property and equipment 540 1,136 903 Intangible assets 66 245 263 Other assets — 10 6 Goodwill — 613 414 Gains on the acquisition of franchise-operated restaurants (309) (340) — Liabilities assumed — (277) (800) Total consideration $ 297 $ 1,645 $ 859 |
Business Combination, Goodwill Segment Allocation | The goodwill arising from the Del Taco acquisition has been allocated to the Company’s reporting units as follows (in thousands ): Del Taco brand $ 230,722 Jack in the Box brand 89,000 Total acquisition date goodwill $ 319,722 |
Schedule of Intangible Assets and the Useful Lives | The values allocated to intangible assets and the useful lives are as follows (in thousands) : Amount Weighted Average Useful Life (Years) Trademarks $ 283,500 Indefinite Franchise contracts 9,700 18 Sublease assets 2,671 13 Estimated fair value of acquired intangible assets $ 295,871 |
Schedule of Pro Forma Information | The following unaudited pro forma combined financial information presents the Company’s results as though Del Taco and the Company had been combined as the beginning of fiscal year 2021 (in thousands) : 2022 2021 Total revenue $ 1,686,160 $ 1,665,660 Net earnings $ 118,000 $ 133,485 |
Summary of Refranchisings and_2
Summary of Refranchisings and Franchise Acquisitions (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Summary Of Refranchisings And Franchise Acquisitions | Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year ( dollars in thousands ): 2022 2021 2020 Restaurants sold to Jack in the Box franchisees 15 — — Proceeds from the sale of company-operated restaurants (1) $ 6,391 $ 1,827 $ 3,395 Net assets sold (primarily property and equipment) (1,565) — — Goodwill related to the sale of company-operated restaurants (948) — — Other (2) — 2,376 (134) Gains on the sale of company-operated restaurants $ 3,878 $ 4,203 $ 3,261 ________________________ (1) Amounts in 2022, 2021, and 2020 include additional proceeds of $1.4 million, $1.8 million, and $3.4 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years. (2) Amounts in 2021 and 2020 relate to adjustments to contingencies that were included in underlying franchise and lease agreements from the sale of restaurants in prior years. |
Schedule of Franchise Acquisitions | The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data) : Amount Del Taco shares outstanding as of March 8, 2022 36,442 Del Taco RSAs subject to accelerated vesting 805 Del Taco RSUs subject to accelerated vesting 70 Del Taco options subject to accelerated vesting 292 Total Del Taco shares outstanding 37,610 Merger Consideration (per Del Taco share) $ 12.51 Total cash consideration paid to selling shareholders $ 470,500 Del Taco transaction costs paid by Jack in the Box (1) 7,141 Del Taco closing indebtedness settled by Jack in the Box (2) 115,219 Replacement share-based payment awards pre-combination vesting expense 449 Total aggregate purchase consideration $ 593,309 ____________________________ (1) Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company. (2) Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company. (in thousands) : Initial Allocation of Consideration Measurement Period Adjustments October 2, Total aggregate purchase consideration, net of $12,068 cash acquired $ 581,241 $ — $ 581,241 Assets: Accounts and other receivables 3,809 774 4,583 Inventories 3,233 — 3,233 Prepaid expenses 2,950 — 2,950 Other current assets 105 — 105 Property and equipment 150,826 (5,794) 145,032 Operating lease right-of-use assets 349,489 800 350,289 Intangible assets 12,371 — 12,371 Trademarks 283,500 — 283,500 Other assets 5,128 — 5,128 Liabilities: Current maturities of long-term debt 22 — 22 Current operating lease liabilities 21,991 — 21,991 Accounts payable 18,808 — 18,808 Accrued liabilities 66,739 45,840 112,579 Long-term debt, net of current maturities 349 — 349 Long-term operating lease liabilities, net of current portion 302,688 800 303,488 Deferred tax liabilities 88,203 (12,848) 75,355 Other long-term liabilities 13,080 — 13,080 Net assets acquired, excluding goodwill $ 299,531 $ (38,012) $ 261,519 Goodwill $ 281,710 $ 38,012 $ 319,722 The following table provides detail of the combined acquisitions in 2022, 2021, and 2020 ( dollars in thousands ): 2022 2021 2020 Restaurants acquired from franchisees 13 20 8 Inventory $ — $ 258 $ 73 Property and equipment 540 1,136 903 Intangible assets 66 245 263 Other assets — 10 6 Goodwill — 613 414 Gains on the acquisition of franchise-operated restaurants (309) (340) — Liabilities assumed — (277) (800) Total consideration $ 297 $ 1,645 $ 859 |
Disclosure of Assets Held-for-sale | Assets held for sale — Assets classified as held for sale consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Jack in the Box restaurant properties held for sale (1) $ 14,151 $ — Other property and equipment held for sale (2) 2,868 1,692 Assets held for sale $ 17,019 $ 1,692 ________________________ (1) Consists of properties that are currently leased to franchisees which we intend to sell the underlying real estate directly to the franchisee and/or sell and leaseback with a third party within the next twelve months. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill during fiscal 2022 and 2021 were as follows ( in thousands ): Jack in the Box Del Taco Total Balance at September 27, 2020 $ 47,161 $ — $ 47,161 Acquisition of Jack in the Box franchise-operated restaurants 613 — 613 Balance at October 3, 2021 47,774 — 47,774 Acquisition of Del Taco Restaurants, Inc. 89,000 230,722 319,722 Acquisition of Jack in the Box franchise-operated restaurants 273 — 273 Sale of Jack in the Box company-operated restaurants to franchisees (948) — (948) Balance at October 2, 2022 $ 136,099 $ 230,722 $ 366,821 |
Schedule of Finite-Lived Intangible Assets | The net carrying amounts of intangible assets are as follows ( in thousands ): October 2, October 3, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Definite-lived intangible assets: Sublease assets $ 2,671 $ (139) $ 2,532 $ — $ — $ — Franchise contracts 9,700 (311) 9,389 — — — Reacquired franchise rights 530 (127) 403 542 (72) 470 $ 12,901 $ (577) $ 12,324 $ 542 $ (72) $ 470 Indefinite-lived intangible assets: Del Taco trademark $ 283,500 $ — $ 283,500 $ — $ — $ — $ 283,500 $ — $ 283,500 $ — $ — $ — |
Finite-lived Intangible Assets Amortization Expense | The following table summarizes, as of October 2, 2022, the estimated amortization expense for each of the next five fiscal years ( in thousands ): 2023 $ 823 2024 $ 820 2025 $ 820 2026 $ 818 2027 $ 813 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Significant Significant Fair value measurements as of October 2, 2022: Non-qualified deferred compensation plan (1) $ 13,820 $ 13,820 $ — $ — Total liabilities at fair value $ 13,820 $ 13,820 $ — $ — Fair value measurements as of October 3, 2021: Non-qualified deferred compensation plan (1) $ 18,555 $ 18,555 $ — $ — Total liabilities at fair value $ 18,555 $ 18,555 $ — $ — ________________________ (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 consolidated balance sheets. (2) We did not have any transfers in or out of Level 1, 2, or 3. |
Carrying Value and Estimated Fair Value of Notes | The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of October 2, 2022 and October 3, 2021 ( in thousands ): October 2, October 3, Carrying Amount Fair Value Carrying Amount Fair Value Series 2019 Class A-2 Notes $ 714,125 $ 641,851 $ 1,290,251 $ 1,351,057 Series 2022 Class A-2 Notes $ 1,089,000 $ 917,428 $ — $ — |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The detail of our long-term debt at the end of each fiscal year is as follows ( in thousands ): October 2, October 3, Series 2019-1 3.982% Fixed Rate Class A-2-I Notes $ — $ 570,688 Series 2019-1 4.476% Fixed Rate Class A-2-II Notes 270,875 272,938 Series 2019-1 4.970% Fixed Rate Class A-2-III Notes 443,250 446,625 Series 2022-1 3.445% Fixed Rate Class A-2-I Notes 544,500 — Series 2022-1 4.136% Fixed Rate Class A-2-II Notes 544,500 — Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 50,000 — Finance lease obligations and other debt 1,690 2,275 Total debt 1,854,815 1,292,526 Less current maturities of long-term debt (30,169) (894) Less unamortized debt issuance costs (25,106) (18,212) Long-term debt $ 1,799,540 $ 1,273,420 |
Scheduled Principal Payments of Long-Term Debt | Maturities of long-term debt — Assuming repayment by the Anticipated Repayment Dates and based on the leverage ratio as of October 2, 2022, principal payments on our long-term debt outstanding at October 2, 2022 for each of the next five fiscal years and thereafter are as follows ( in thousands ): 2023 $ 30,169 2024 29,623 2025 29,315 2026 289,183 2027 516,045 Thereafter 960,480 $ 1,854,815 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Leases [Abstract] | |
Lessee, Supplemental Balance Sheet Information | Leased assets and liabilities consisted of the following as of October 2, 2022 and October 3, 2021 (in thousands) : October 2, October 3, Assets: Operating lease ROU assets $ 1,332,135 $ 934,066 Finance lease ROU assets (1) 854 1,698 Total ROU assets $ 1,332,989 $ 935,764 Liabilities: Current operating lease liabilities $ 171,311 $ 150,636 Current finance lease liabilities (2) 896 894 Long-term operating lease liabilities 1,165,097 809,191 Long-term finance lease liabilities (2) 435 1,381 Total lease liabilities $ 1,337,739 $ 962,102 ________________________ (1) Included in “Property and equipment, net” on our consolidated balance sheets. (2) Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets. |
Lease Costs, Lessee | The following table presents the components of our lease costs in fiscal 2022, 2021, and 2020 ( in thousands ): 2022 2021 2020 Lease costs: Finance lease cost: Amortization of ROU assets (1) $ 827 $ 807 $ 767 Interest on lease liabilities (2) 67 89 110 Operating lease cost (3) 218,837 194,149 190,461 Short-term lease cost (3) 824 427 175 Variable lease cost (3)(4) 48,872 43,498 40,798 $ 269,427 $ 238,970 $ 232,311 ____________________________ (1) Included in “Depreciation and amortization” in our consolidated statements of earnings. (2) Included in “Interest expense, net” in our consolidated statements 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 consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense (income), net” and all other costs are included in “Selling, general and administrative expenses.” (4) Includes $38.2 million, $38.0 million, and $37.4 million in 2022, 2021, and 2020, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees. The following table presents supplemental information related to leases: October 2, October 3, Weighted-average remaining lease term (in years): Finance leases 1.5 2.4 Operating leases 10.0 9.0 Weighted-average discount rate: Finance leases 3.8 % 3.6 % Operating leases 4.6 % 4.1 % The following table includes supplemental cash flow and non-cash information related to our lessee leases ( in thousands ): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 218,605 $ 218,570 Operating cash flows from financing leases $ 67 $ 89 Financing cash flows from financing leases $ 907 $ 829 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease obligations $ 221,466 $ 186,621 Right-of-use assets obtained in exchange for new financing lease obligations $ 45 $ 184 |
Operating Lease, Future Minimum Lease Payments | The following table presents as of October 2, 2022, the annual maturities of our lease liabilities ( in thousands ): Finance Leases Operating Leases Fiscal year: 2023 $ 932 $ 231,670 2024 372 196,702 2025 40 191,507 2026 27 174,068 2027 14 159,219 Thereafter 13 758,184 Total future lease payments (1) $ 1,398 $ 1,711,350 Less: imputed interest (67) (374,942) Present value of lease liabilities $ 1,331 $ 1,336,408 Less current portion (896) (171,311) Long-term lease obligations $ 435 $ 1,165,097 ________________________ (1) Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases. |
Finance Lease, Future Minimum Lease Payments | The following table presents as of October 2, 2022, the annual maturities of our lease liabilities ( in thousands ): Finance Leases Operating Leases Fiscal year: 2023 $ 932 $ 231,670 2024 372 196,702 2025 40 191,507 2026 27 174,068 2027 14 159,219 Thereafter 13 758,184 Total future lease payments (1) $ 1,398 $ 1,711,350 Less: imputed interest (67) (374,942) Present value of lease liabilities $ 1,331 $ 1,336,408 Less current portion (896) (171,311) Long-term lease obligations $ 435 $ 1,165,097 ________________________ (1) Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases. |
Assets Recorded Under Finance Leases | Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end ( in thousands ): 2022 2021 Buildings $ 1,342 $ 1,342 Equipment 5,559 5,869 Less accumulated amortization (6,047) (5,513) $ 854 $ 1,698 |
Rental Income | The following table presents rental income ( in thousands ): 2022 2021 Owned Properties Leased Properties Total Owned Properties Leased Properties Total Operating lease income - franchise $ 19,221 $ 212,552 $ 231,773 $ 20,132 $ 218,028 $ 238,160 Variable lease income - franchise 12,418 96,002 108,420 12,363 96,111 108,474 Amortization of favorable and unfavorable lease contracts, net — 198 198 — — — Franchise rental revenues $ 31,639 $ 308,752 $ 340,391 $ 32,495 $ 314,139 $ 346,634 Operating lease income - closed restaurants and other (1) $ 60 $ 6,347 $ 6,407 $ — $ 6,027 $ 6,027 ________________________ (1) Primarily relates to closed restaurant properties included in “Other operating expense (income), net” in our consolidated statements of earnings. |
Future Minimum Rental Receipts | The following table presents as of October 2, 2022, future minimum rental receipts for non-cancellable leases and subleases ( in thousands ): October 2, Fiscal year: 2023 $ 243,929 2024 217,567 2025 225,542 2026 211,507 2027 204,685 Thereafter 879,829 Total minimum rental receipts $ 1,983,059 |
Assets Held for Lease | Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end ( in thousands ): October 2, October 3, Land $ 75,967 $ 89,791 Buildings 771,567 782,450 Equipment 2,750 223 850,284 872,464 Less accumulated depreciation (663,109) (657,030) $ 187,175 $ 215,434 |
Other Operating Expense (Inco_2
Other Operating Expense (Income), Net (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Disposal Costs Included in Impairment and Other Charges | Other operating expense (income), net, in the accompanying consolidated statements of earnings is comprised of the following in each fiscal year ( in thousands ): 2022 2021 2020 Acquisition, integration, and restructuring costs $ 20,081 $ 7 $ 1,168 Costs of closed restaurants and other 4,290 1,907 1,872 Restaurant impairment charges 5,927 — — Accelerated depreciation 1,124 1,592 235 Gains on disposition of property and equipment, net (30,533) (6,888) (9,768) $ 889 $ (3,382) $ (6,493) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table provides information related to our operating segments in each period ( in thousands ): 2022 2021 2020 Revenues by segment: Jack in the Box $ 1,151,188 $ 1,143,670 $ 1,021,506 Del Taco 316,895 — — Consolidated revenues $ 1,468,083 $ 1,143,670 $ 1,021,506 Segment operating profit: Jack in the Box $ 310,745 $ 327,157 $ 282,748 Del Taco 27,981 — — Total segment operating profit $ 338,726 $ 327,157 $ 282,748 Depreciation and amortization 56,100 46,500 52,798 Acquisition, integration, and restructuring costs 20,081 7 1,168 Share-based compensation 7,122 4,048 4,394 Net COLI losses (gains) 9,911 (9,141) (2,935) Gains on the sale of company-operated restaurants (3,878) (4,203) (3,261) Amortization of favorable and unfavorable leases and subleases, net 1,120 — — Earnings from operations $ 248,270 $ 289,946 $ 230,584 Total capital expenditures by segment: Jack in the Box $ 31,601 $ 41,008 $ 19,528 Del Taco 14,874 — — Total capital expenditures $ 46,475 $ 41,008 $ 19,528 Total depreciation and amortization by segment: Jack in the Box $ 39,895 $ 46,500 $ 52,798 Del Taco 16,205 — — Total depreciation and amortization $ 56,100 $ 46,500 $ 52,798 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes | Income taxes consist of the following in each fiscal year ( in thousands ): 2022 2021 2020 Current: Federal $ 28,934 $ 36,051 $ 19,721 State 9,320 11,793 7,844 38,254 47,844 27,565 Deferred: Federal 5,344 4,440 4,625 State 2,513 3,568 537 7,857 8,008 5,162 Income tax expense from continuing operations $ 46,111 $ 55,852 $ 32,727 Income tax expense from discontinued operations $ — $ — $ 144 |
Reconciliation of the Federal Statutory Income Tax Rate to Effective Tax Rate | A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows: 2022 2021 2020 Income tax expense at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 5.2 % 5.1 % 5.3 % Stock compensation tax deficiency (excess tax benefit) 0.1 % (0.5) % (0.4) % Benefit of jobs tax credits, net of valuation allowance (0.6) % (0.1) % (0.5) % Adjustment to state tax provision — % 0.7 % — % Nondeductible transaction costs 0.6 % — % — % Expense (benefit) related to COLIs 2.1 % (1.5) % (0.9) % Officers’ compensation limitation 0.4 % 0.5 % 2.2 % Other, net (0.3) % — % 0.1 % 28.5 % 25.2 % 26.8 % |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below ( in thousands ): 2022 2021 Deferred tax assets: Operating and finance lease liabilities $ 340,317 $ 237,509 Accrued defined benefit pension and postretirement benefits 19,090 28,837 Accrued legal settlements 15,158 2,378 Deferred income 13,524 12,083 Accrued insurance 8,339 5,389 Share-based compensation 5,094 4,039 Tax loss and tax credit carryforwards 4,399 3,129 Accrued incentive compensation 2,402 3,455 Other reserves and allowances 1,627 1,672 Accrued compensation expense 1,329 710 Property and equipment, net of impairment — 5,922 Other, net 2,319 3,424 Total gross deferred tax assets 413,598 308,547 Valuation allowance (1,140) (1,349) Total net deferred tax assets 412,458 307,198 Deferred tax liabilities: Operating and finance lease ROU assets (349,903) (242,038) Intangible assets (87,165) (11,349) Property and equipment, principally due to differences in depreciation (5,656) — Investment basis limitation (6,010) — Other (1,408) (2,294) Total gross deferred tax liabilities (450,142) (255,681) Net deferred tax (liabilities) assets $ (37,684) $ 51,517 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Retirement Benefits [Abstract] | |
Reconciliation of Changes in Benefit Obligations, Plan Assets and Funded Status of Retirement Plans | The following table provides a reconciliation of the changes in benefit obligations, plan assets, and funded status of our retirement plans for each fiscal year ( in thousands ): Qualified Plan SERP Postretirement Health Plans 2022 2021 2022 2021 2022 2021 Change in benefit obligation: Obligation at beginning of year $ 410,053 $ 412,573 $ 75,225 $ 78,971 $ 17,162 $ 20,965 Interest cost 12,506 12,558 2,173 2,169 489 563 Participant contributions — — — — 92 112 Actuarial (gain) loss (114,999) (785) (14,830) (672) (4,062) (3,525) Benefits paid (14,218) (14,293) (5,677) (5,243) (1,204) (1,044) Other — — — — 100 91 Obligation at end of year $ 293,342 $ 410,053 $ 56,891 $ 75,225 $ 12,577 $ 17,162 Change in plan assets: Fair value at beginning of year $ 409,708 $ 365,510 $ — $ — $ — $ — Actual (loss) return on plan assets (91,539) 58,491 — — — — Participant contributions — — — — 92 112 Employer contributions — — 5,677 5,243 1,012 841 Benefits paid (14,218) (14,293) (5,677) (5,243) (1,204) (1,044) Other — — — — 100 91 Fair value at end of year $ 303,951 $ 409,708 $ — $ — $ — $ — Funded (unfunded) status at end of year $ 10,609 $ (345) $ (56,891) $ (75,225) $ (12,577) $ (17,162) Amounts recognized on the balance sheet: Noncurrent assets $ 10,609 $ — $ — $ — $ — $ — Current liabilities — — (5,213) (5,216) (1,081) (1,115) Noncurrent liabilities — (345) (51,678) (70,009) (11,496) (16,047) Total asset (liability) recognized $ 10,609 $ (345) $ (56,891) $ (75,225) $ (12,577) $ (17,162) Amounts in AOCI not yet reflected in net periodic benefit cost: Unamortized actuarial loss (gain), net $ 101,372 $ 108,922 $ 15,979 $ 32,475 $ (10,781) $ (7,359) Unamortized prior service cost — — 34 53 — — Total $ 101,372 $ 108,922 $ 16,013 $ 32,528 $ (10,781) $ (7,359) Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial gain $ (5,357) $ (39,936) $ (14,830) $ (672) $ (4,062) $ (3,526) Amortization of actuarial (loss) gain (2,193) (3,510) (1,666) (1,743) 640 341 Amortization of prior service cost — — (19) (19) — — Total recognized in OCI (7,550) (43,446) (16,515) (2,434) (3,422) (3,185) Net periodic benefit (credit) cost (3,404) (3,272) 3,858 3,931 (151) 222 Total recognized in comprehensive income $ (10,954) $ (46,718) $ (12,657) $ 1,497 $ (3,573) $ (2,963) Amounts in AOCI expected to be amortized in fiscal 2023 net periodic benefit cost: Net actuarial loss (gain) $ 2,349 $ 718 $ (932) Prior service cost — 19 — Total $ 2,349 $ 737 $ (932) in thousands ): Total Quoted Prices Significant Significant Items Measured at Fair Value at September 30, 2022: Asset Category: Cash and cash equivalents (1) $ 2,267 $ — $ 2,267 $ — Equity: U.S. (2) 33,659 33,659 — — International (3),(4) 32,807 16,557 — — Fixed income: Investment grade (5) 193,426 20,138 173,288 — High yield (6) 6,970 6,970 — — Alternatives (4),(7) 12,061 — — — Real estate (4),(8) 22,761 — — — $ 303,951 $ 77,324 $ 175,555 $ — Items Measured at Fair Value at September 30, 2021: Asset Category: Cash and cash equivalents (1) $ 1,969 $ — $ 1,969 $ — Equity: U.S. (2) 66,921 66,921 — — International (3),(4) 63,087 31,128 — — Fixed income: Investment grade (5) 219,295 20,701 198,594 — High yield (6) 10,156 10,156 — — Alternatives (4),(7) 26,519 — — — Real estate (4),(8) 21,761 — — — $ 409,708 $ 128,906 $ 200,563 $ — ________________________ (1) Cash and cash equivalents are comprised of commercial paper, short-term bills and notes, and short-term investment funds, which are valued at quoted prices in active markets for similar securities. (2) U.S. equity securities are comprised of investments in common stock of U.S. companies for total return purposes. These investments are valued by the trustee at closing prices from national exchanges on the valuation date. (3) International equity securities are comprised of investments in common stock of companies located outside of the U.S. for total return purposes. These investments are valued by the trustee at closing prices from national exchanges on the valuation date, or the values are adjusted as a result of market movements following the close of local trading using inputs to models that are observable either directly or indirectly. The portion of these investments that are measured at fair value using the net asset value per share practical expedient (see note 4 below) can be redeemed on a monthly basis. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (5) Investment grade fixed income consists of debt obligations either issued by the U.S. government or have a rating of BBB- / Baa or higher assigned by a major credit rating agency. These investments are valued based on unadjusted quoted market prices (Level 1), or based on quoted prices in inactive markets, or whose values are based on models, but the inputs to those models are observable either directly or indirectly (Level 2). (6) High yield fixed income consists primarily of debt obligations that have a rating of below BBB- / Baa or lower assigned by a major credit rating agency. These investments are valued based on unadjusted quoted market prices. (7) Alternative investments consist primarily of an investment in asset classes other than stocks, bonds, and cash. Alternative investments can include commodities, hedge funds, private equity, managed futures, and derivatives. These investments are valued based on unadjusted quoted market prices and can be redeemed on a bi-monthly basis. (8) Real estate is investments in a real estate collective trust for purposes of total return. These investments are valued based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These investments can be redeemed on a quarterly basis. |
Fair Value of Plan Assets of Pension Plans | The following sets forth the PBO, ABO, and fair value of plan assets of our pension plans as of the measurement date in each fiscal year ( in thousands ): 2022 2021 Qualified Plan: Projected benefit obligation $ 293,342 $ 410,053 Accumulated benefit obligation $ 293,342 $ 410,053 Fair value of plan assets $ 303,951 $ 409,708 SERP: Projected benefit obligation $ 56,891 $ 75,225 Accumulated benefit obligation $ 56,891 $ 75,225 Fair value of plan assets $ — $ — |
Components of Net Periodic Benefit Cost | The components of the fiscal year net periodic benefit cost were as follows ( in thousands ): 2022 2021 2020 Qualified Plan: Interest cost $ 12,506 $ 12,558 $ 13,377 Expected return on plan assets (18,103) (19,340) (19,578) Pension settlements — — 39,218 Actuarial loss 2,193 3,510 3,644 Net periodic benefit (credit) cost $ (3,404) $ (3,272) $ 36,661 SERP: Interest cost $ 2,173 $ 2,169 $ 2,499 Actuarial loss 1,666 1,743 1,652 Amortization of unrecognized prior service cost 19 19 85 Net periodic benefit cost $ 3,858 $ 3,931 $ 4,236 Postretirement health plans: Interest cost $ 489 $ 563 $ 807 Actuarial (gain) loss (640) (341) 18 Net periodic benefit (credit) cost $ (151) $ 222 $ 825 |
Determining the Present Values of Benefit Obligations and net Periodic Benefit Costs | In determining the present values of our benefit obligations and net periodic benefit costs as of and for the fiscal years ended October 2, 2022, October 3, 2021, and September 27, 2020, we used the following weighted-average assumptions: 2022 2021 2020 Assumptions used to determine benefit obligations (1): Qualified Plan: Discount rate 5.63% 3.11% 3.10% SERP: Discount rate 5.80% 2.99% 2.84% Rate of future pay increases (2) N/A N/A N/A Postretirement health plans: Discount rate 5.82% 2.95% 2.77% Assumptions used to determine net periodic benefit cost (3): Qualified Plan: Discount rate (4) 3.11% 3.10% 3.36% Long-term rate of return on assets (5) 4.50% 5.40% 5.80% SERP: Discount rate 2.99% 2.84% 3.24% Rate of future pay increases (2) N/A N/A 3.50% Postretirement health plans: Discount rate 2.95% 2.77% 3.24% ________________________ (1) Determined as of end of year. (2) Rate is not applicable as there are no active employees as of fiscal year end 2020, 2021 and 2022. (3) Determined as of beginning of year. (4) Remeasurements were performed in the first, second, and third quarters of fiscal 2020 using 3.61%, 3.38%, and 3.13% respectively. (5) Remeasurements were performed in the first, second, and third quarters of fiscal 2020 using 5.9%, 5.2%, and 5.4% respectively. |
Health Care Cost Trend Rates for Postretirement Health Plans | For measurement purposes, the weighted-average assumed health care cost trend rates for our postretirement health plans were as follows for each fiscal year: 2022 2021 2020 Healthcare cost trend rate for next year: Participants under age 65 6.25% 6.50% 6.75% Participants age 65 or older 5.75% 6.00% 6.25% Rate to which the cost trend rate is assumed to decline: Participants under age 65 4.50% 4.50% 4.50% Participants age 65 or older 4.50% 4.50% 4.50% Year the rate reaches the ultimate trend rate: Participants under age 65 2030 2030 2030 Participants age 65 or older 2028 2028 2028 |
Fair Values of Qualified Plan's Assets | Our plan asset allocation at the end of fiscal 2022 and target allocations were as follows: 2022 Target Minimum Maximum Cash & cash equivalents 1% 1% —% —% Domestic equities 11% 11% 5% 17% International equities 11% 11% 5% 17% Core fixed funds 57% 64% 57% 71% High yield 2% 2% —% 5% Alternative investments 4% 4% —% 8% Real estate 7% —% —% 5% Real return bonds 7% 7% —% 14% 100% 100% |
Contributions Expected to be Paid in Next Fiscal Year and Projected Benefit Payments | Contributions expected to be paid in the next fiscal year, the projected benefit payments for each of the next five fiscal years, and the total aggregate amount for the subsequent five fiscal years are as follows ( in thousands ): Defined Benefit Plans Postretirement Estimated net contributions during fiscal 2023 $ 5,213 $ 1,112 Estimated future year benefit payments during fiscal years: 2023 $ 20,784 $ 1,112 2024 $ 20,868 $ 1,127 2025 $ 21,185 $ 1,137 2026 $ 21,685 $ 1,139 2027 $ 22,190 $ 1,135 2028-2032 $ 117,216 $ 5,383 |
Share-Based Employee Compensa_2
Share-Based Employee Compensation (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Components of Share-Based Compensation Expense | The components of share-based compensation expense, included within “Selling, general, and administrative expenses” in our consolidated statements of earnings, in each fiscal year are as follows ( in thousands ): 2022 2021 2020 Nonvested stock units $ 4,544 $ 2,969 $ 3,526 Stock options 19 25 351 Performance share awards 1,835 830 254 Nonvested restricted stock awards 434 — — Non-management directors’ deferred compensation 290 224 263 Total share-based compensation expense $ 7,122 $ 4,048 $ 4,394 |
Summary of RSU Activity | The following is a summary of RSU activity for fiscal 2022: Shares Weighted- RSUs outstanding at October 3, 2021 141,197 $ 76.84 Granted 130,862 $ 78.28 Released (28,600) $ 89.02 Forfeited (6,853) $ 83.34 RSUs outstanding at October 2, 2022 236,606 $ 75.98 Shares Weighted- Restricted stock awards outstanding at October 3, 2021 — $ — Granted 21,152 $ 82.33 Issued (8,368) $ 82.33 Forfeited (8,114) $ 82.33 Restricted stock awards outstanding at October 2, 2022 4,670 $ 82.33 |
Summary of Stock Option Activity | The following is a summary of stock option activity for fiscal 2022: Shares Weighted- Weighted- Aggregate Options outstanding at October 3, 2021 33,117 $ 92.44 Granted — N/A Exercised (667) $ 75.23 Forfeited — N/A Expired — N/A Options outstanding at October 2, 2022 32,450 $ 92.80 2.33 $ — Options exercisable at October 2, 2022 29,446 $ 94.59 2.14 $ — |
Schedule of Weighted-Average Assumptions | The following table presents the weighted-average assumptions used for stock option grants in each fiscal year, along with the related weighted-average grant date fair value: 2022 (1) 2021 (1) 2020 Risk-free interest rate N/A N/A 1.7% Expected dividends yield N/A N/A 2.1% Expected stock price volatility N/A N/A 28.1% Expected life of options (in years) N/A N/A 3.47 Weighted-average grant date fair value N/A N/A $13.97 ________________________ (1) No stock option awards were granted in fiscal 2022 or fiscal 2021. |
Summary of PSU Activity | The following is a summary of performance share award activity for fiscal 2022: Shares Weighted- Performance share awards outstanding at October 3, 2021 35,097 $ 79.92 Granted 37,822 $ 78.95 Issued (6,905) $ 82.80 Forfeited — $ — Performance adjustments (632) $ 70.56 Performance share awards outstanding at October 2, 2022 65,382 $ 79.14 |
Summary of Stock Equivalent Activity | The following is a summary of the stock equivalent activity for fiscal 2022: Stock Weighted- Stock equivalents outstanding at October 3, 2021 109,463 $ 43.06 Deferred directors’ compensation 3,438 $ 84.35 Dividend equivalents 3,373 $ 77.44 Stock equivalents outstanding at October 2, 2022 116,274 $ 45.28 |
Average Shares Outstanding (Tab
Average Shares Outstanding (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
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 each fiscal year ( in thousands ): 2022 2021 2020 Weighted-average shares outstanding — basic 21,195 22,402 23,125 Effect of potentially dilutive securities: Nonvested stock awards and units 47 62 137 Stock options 1 9 — Performance share awards 2 5 7 Weighted-average shares outstanding — diluted 21,245 22,478 23,269 Excluded from diluted weighted-average shares outstanding: Antidilutive 23 29 318 Performance conditions not satisfied at the end of the period 61 25 14 |
Supplemental Consolidated Cas_2
Supplemental Consolidated Cash Flow Information (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Information Related to Cash Flows | 2022 2021 2020 Cash paid during the year for: Income tax payments $ 33,819 $ 48,200 $ 29,360 Interest, net of amounts capitalized $ 70,475 $ 60,413 $ 68,612 Non-cash investing and financing transactions: Increase in notes and accounts receivable from the sale of restaurant properties $ 10,001 $ — $ — Increase in dividends accrued or converted to common stock equivalents $ 275 $ 232 $ 117 Consideration for franchise acquisitions $ 297 $ 1,305 $ 859 Increase (decrease) in obligations for purchases of property and equipment $ 1,637 $ 1,755 $ (2,696) Decrease in obligations for treasury stock repurchases $ — $ — $ (2,025) |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 12 Months Ended |
Oct. 02, 2022 | |
Supplemental Consolidated Financial Statement Information [Abstract] | |
Schedule of Supplemental Consolidated Balance Sheet Information | October 2, October 3, Accounts and other receivables, net: Trade $ 90,105 $ 75,273 Notes receivable, current portion 8,643 1,467 Income tax receivable 878 1,157 Other 10,152 2,730 Allowance for doubtful accounts (5,975) (6,292) $ 103,803 $ 74,335 Other assets, net: Company-owned life insurance policies $ 108,924 $ 123,566 Deferred rent receivable 43,891 46,234 Franchise tenant improvement allowances 32,429 34,124 Notes receivable, less current portion 11,624 4,544 Other 29,701 15,970 $ 226,569 $ 224,438 Accrued liabilities: Legal accruals $ 59,165 $ 7,540 Payroll and related taxes 43,837 34,649 Sales and property taxes 30,947 23,174 Insurance 32,272 21,218 Deferred rent income 18,525 17,892 Advertising 11,028 13,097 Deferred franchise fees and development fees 5,647 4,949 Other 52,511 25,898 $ 253,932 $ 148,417 Other long-term liabilities: Defined benefit pension plans $ 51,679 $ 70,354 Deferred franchise and development fees 40,802 36,571 Other 42,213 49,417 $ 134,694 $ 156,342 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Mar. 31, 2020 | Oct. 02, 2022 USD ($) restaurant | Oct. 03, 2021 USD ($) | Sep. 27, 2020 USD ($) | |
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 27,150 | $ 18,222 | |||
Depreciation | 55,800 | 46,500 | $ 52,800 | ||
Deferred gift card income | 18,525 | 17,892 | |||
Amounts recognized on unredeemed gift card balances | 700 | $ 600 | $ 500 | ||
General liability and workers' comp estimated claims to be paid by insurance providers | $ 31,900 | ||||
Contractual contributions | 4% | 2% | 5% | 5% | 5% |
Accrued advertising costs | $ 3,500 | $ 9,500 | |||
Marketing and advertising expense | $ 32,600 | 19,600 | $ 17,100 | ||
Entity Operated Units | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 146 | ||||
Franchised Units | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 2,035 | ||||
Sales Concentration Risk | Revenue Benchmark | Del Taco | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 4% | ||||
Other Assets | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash surrender value of life insurance | $ 108,900 | 123,600 | |||
Accrued Liabilities | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred gift card income | $ 4,100 | $ 2,200 | |||
Minimum | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment assigned lives | 1 year | ||||
Maximum | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment assigned lives | 35 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of period | $ (6,292) | $ (5,541) |
Provision for expected credit losses | (4,744) | (770) |
Write-offs charged against the allowance | 5,061 | 19 |
Balance as of end of period | $ (5,975) | $ (6,292) |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 12 Months Ended |
Oct. 02, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Initial franchise fees, term | 20 years |
Development fees for unopened stores | $ 5.5 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 10, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | Sep. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,468,083 | $ 1,143,670 | $ 1,021,506 | ||
Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,151,188 | 1,143,670 | 1,021,506 | $ 1,021,506 | |
Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 316,895 | 0 | 0 | ||
Company restaurant sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 701,070 | 387,766 | 348,987 | ||
Company restaurant sales | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 414,225 | 387,766 | 348,987 | ||
Company restaurant sales | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 286,845 | 0 | 0 | ||
Franchise contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 340,391 | 346,634 | 320,647 | ||
Franchise contracts | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 335,936 | 346,634 | 320,647 | ||
Franchise contracts | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,455 | 0 | 0 | ||
Franchise royalties | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 202,316 | 193,908 | 171,407 | ||
Franchise royalties | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 188,902 | 193,908 | 171,407 | ||
Franchise royalties | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 13,414 | 0 | 0 | ||
Franchise advertising contributions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 193,983 | 188,184 | 158,258 | ||
Franchise advertising contributions | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 183,076 | 188,184 | 158,258 | ||
Franchise advertising contributions | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 10,907 | 0 | 0 | ||
Technology and sourcing fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 15,818 | 16,361 | 15,295 | ||
Technology and sourcing fees | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,740 | 16,361 | 15,295 | ||
Technology and sourcing fees | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,078 | 0 | 0 | ||
Franchise fees and other services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,505 | 10,817 | 6,912 | ||
Franchise fees and other services | Jack in the Box | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,309 | 10,817 | 6,912 | ||
Franchise fees and other services | Del Taco | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 196 | $ 0 | $ 0 |
Revenue (Contract Liabilities)
Revenue (Contract Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred franchise and development fees at beginning of period | $ 41,520 | $ 43,816 |
Changes due to business combinations | 6,193 | 0 |
Revenue recognized during the period | (5,891) | (6,014) |
Additions during the period | 4,627 | 3,718 |
Deferred franchise and development fees at end of period | $ 46,449 | $ 41,520 |
Revenue (Estimated Future Franc
Revenue (Estimated Future Franchise Fees) (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 40,947 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5,013 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,806 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,570 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,245 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-09-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,886 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 18,427 |
Revenue, remaining performance obligation, period |
Business Combination (Narrative
Business Combination (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 08, 2022 | Oct. 02, 2022 | Jul. 10, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 366,821,000 | $ 366,821,000 | $ 47,774,000 | $ 47,161,000 | ||
Del Taco | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 230,722,000 | 230,722,000 | 0 | 0 | ||
Revenues | $ 316,900,000 | |||||
Net earnings | 6,500,000 | |||||
Jack in the Box | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 136,099,000 | $ 136,099,000 | $ 47,774,000 | $ 47,161,000 | ||
Del Taco | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 593,309,000 | |||||
Business acquisition, transaction costs | 7,141,000 | |||||
Vesting period | 1 year | |||||
Acquisition related costs | $ 12,300,000 | |||||
Purchase price allocation, adjustments | 300,000 | 300,000 | ||||
Goodwill | 281,710,000 | $ 319,722,000 | $ 319,722,000 | |||
Goodwill, expected tax deductible amount | 0 | |||||
Sublease liability | $ 6,000,000 | |||||
Sublease useful life | 15 years | |||||
Del Taco | Del Taco | ||||||
Business Acquisition [Line Items] | ||||||
Ownership acquired | 100% | |||||
Del Taco | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of shares into cash (in dollars per share) | $ 12.51 | |||||
Del Taco | Syndicated Credit Facility | Del Taco | ||||||
Business Acquisition [Line Items] | ||||||
Repayments of debt | $ 115,219,000 |
Business Combination (Purchase
Business Combination (Purchase Consideration) (Details) - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | ||||
Mar. 08, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | Sep. 29, 2019 | |
Common Stock | |||||
Business Acquisition [Line Items] | |||||
Del Taco shares outstanding as of March 8, 2022 (in shares) | 82,580,599 | 82,536,059 | 82,369,714 | 82,159,002 | |
Total Del Taco shares outstanding (in shares) | 82,580,599 | 82,536,059 | 82,369,714 | 82,159,002 | |
Del Taco | |||||
Business Acquisition [Line Items] | |||||
Del Taco shares outstanding as of March 8, 2022 (in shares) | 36,442,000 | 37,610,000 | |||
Total Del Taco shares outstanding (in shares) | 36,442,000 | 37,610,000 | |||
Total cash consideration paid to selling shareholders | $ 470,500 | ||||
Business acquisition, transaction costs | 7,141 | ||||
Replacement share-based payment awards pre-combination vesting expense | 449 | ||||
Consideration transferred | 593,309 | ||||
Del Taco | Syndicated Credit Facility | Del Taco | |||||
Business Acquisition [Line Items] | |||||
Del Taco closing indebtedness settled by Jack in the Box | $ 115,219 | ||||
Del Taco | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Merger Consideration (per Del Taco share) (in dollars per share) | $ 12.51 | ||||
Del Taco | Del Taco RSAs subject to accelerated vesting | |||||
Business Acquisition [Line Items] | |||||
Del Taco subject to accelerated vesting (in shares) | 805,000 | ||||
Del Taco | Del Taco RSUs subject to accelerated vesting | |||||
Business Acquisition [Line Items] | |||||
Del Taco subject to accelerated vesting (in shares) | 70,000 | ||||
Del Taco | Del Taco options subject to accelerated vesting | |||||
Business Acquisition [Line Items] | |||||
Del Taco subject to accelerated vesting (in shares) | 292,000 |
Business Combination (Estimated
Business Combination (Estimated Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | 7 Months Ended | ||||
Oct. 02, 2022 | Mar. 08, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Liabilities: | |||||
Goodwill | $ 366,821 | $ 366,821 | $ 47,774 | $ 47,161 | |
Del Taco | |||||
Business Acquisition [Line Items] | |||||
Cash acquired | $ 12,068 | ||||
Total aggregate purchase consideration, net of $12,068 cash acquired | 581,241 | 581,241 | |||
Measurement Period Adjustments, Total preliminary aggregate purchase consideration, net of cash acquired | 0 | ||||
Assets: | |||||
Accounts and other receivables | 4,583 | 3,809 | 4,583 | ||
Measurement Period Adjustments, Accounts and other receivables | 774 | ||||
Inventory | 3,233 | 3,233 | 3,233 | ||
Measurement Period Adjustments, Inventories | 0 | ||||
Prepaid expenses | 2,950 | 2,950 | 2,950 | ||
Measurement Period Adjustments, Prepaid expenses | 0 | ||||
Other current assets | 105 | 105 | 105 | ||
Measurement Period Adjustments, Other current assets | 0 | ||||
Property and equipment | 145,032 | 150,826 | 145,032 | ||
Measurement Period Adjustments, Property and equipment | (5,794) | ||||
Operating lease right-of-use assets | 350,289 | 349,489 | 350,289 | ||
Measurement Period Adjustments, Operating lease right-of-use assets | 800 | ||||
Intangible assets | 12,371 | 12,371 | 12,371 | ||
Measurement Period Adjustments, Intangible assets | 0 | ||||
Trademarks | 283,500 | 283,500 | 283,500 | ||
Measurement Period Adjustments, Trademarks | 0 | ||||
Other assets | 5,128 | 5,128 | 5,128 | ||
Measurement Period Adjustments, Other assets | 0 | ||||
Liabilities: | |||||
Current maturities of long-term debt | 22 | 22 | 22 | ||
Measurement Period Adjustments, Current maturities of long-term debt | 0 | ||||
Current operating lease liabilities | 21,991 | 21,991 | 21,991 | ||
Measurement Period Adjustments, Current operating lease liabilities | 0 | ||||
Accounts payable | 18,808 | 18,808 | 18,808 | ||
Measurement Period Adjustments, Accounts payable | 0 | ||||
Accrued liabilities | 112,579 | 66,739 | 112,579 | ||
Measurement Period Adjustments, Accrued liabilities | 45,840 | ||||
Long-term debt, net of current maturities | 349 | 349 | 349 | ||
Measurement Period Adjustments, Long-term debt, net of current maturities | 0 | ||||
Long-term operating lease liabilities, net of current portion | 303,488 | 302,688 | 303,488 | ||
Measurement Period Adjustments, Long-term operating lease liabilities, net of current portion | 800 | ||||
Deferred tax liabilities | 75,355 | 88,203 | 75,355 | ||
Measurement Period Adjustments, Deferred tax liabilities | (12,848) | ||||
Other long-term liabilities | 13,080 | 13,080 | 13,080 | ||
Measurement Period Adjustments, Other long-term liabilities | 0 | ||||
Net assets acquired, excluding goodwill | 261,519 | 299,531 | 261,519 | ||
Measurement Period Adjustments, Net assets acquired, excluding goodwill | (38,012) | ||||
Goodwill | $ 319,722 | $ 281,710 | 319,722 | ||
Measurement Period Adjustments, Goodwill | $ 38,012 |
Business Combination (Business
Business Combination (Business Combination, Goodwill Segment Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | $ 613 | |
Del Taco | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | 0 | |
Jack in the Box | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | $ 613 | |
Del Taco | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | $ 319,722 | |
Del Taco | Del Taco | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | 230,722 | |
Del Taco | Jack in the Box | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | $ 89,000 |
Business Combination (Schedule
Business Combination (Schedule of Intangible Assets and the Useful Lives) (Details) - Del Taco $ in Thousands | Mar. 08, 2022 USD ($) |
Business Acquisition [Line Items] | |
Estimated fair value of acquired intangible assets | $ 295,871 |
Franchise contracts | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 9,700 |
Weighted Average Useful Life (Years) | 18 years |
Sublease assets | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 2,671 |
Weighted Average Useful Life (Years) | 13 years |
Trademarks | |
Business Acquisition [Line Items] | |
Indefinite-lived intangible assets acquired | $ 283,500 |
Business Combination (Schedul_2
Business Combination (Schedule of Pro Forma Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 10, 2022 | Jul. 04, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Total revenue | $ 1,686,160 | $ 1,665,660 |
Net earnings | $ 118,000 | $ 133,485 |
Summary of Refranchisings and_3
Summary of Refranchisings and Franchise Acquisitions (Summary Of Refranchisings And Franchise Acquisitions) (Details) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 USD ($) restaurant | Oct. 03, 2021 USD ($) restaurant | Sep. 27, 2020 USD ($) restaurant | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | |||
Proceeds from the sale of company-operated restaurants | $ 6,391 | $ 1,827 | $ 3,395 |
Goodwill related to the sale of company-operated restaurants | (948) | ||
Gains on the sale of company-operated restaurants | $ 30,533 | $ 6,888 | $ 9,768 |
Entity Operated Units | |||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | |||
Restaurants sold to Jack in the Box franchisees | restaurant | 15 | 0 | 0 |
Proceeds from the sale of company-operated restaurants | $ 6,391 | $ 1,827 | $ 3,395 |
Net assets sold (primarily property and equipment) | (1,565) | 0 | 0 |
Goodwill related to the sale of company-operated restaurants | (948) | 0 | 0 |
Other | 0 | 2,376 | (134) |
Gains on the sale of company-operated restaurants | 3,878 | 4,203 | 3,261 |
Proceeds from the extension of franchise and lease agreements from the sale of restaurants in prior years | $ 1,400 | $ 1,800 | $ 3,400 |
Summary of Refranchisings and_4
Summary of Refranchisings and Franchise Acquisitions (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2022 USD ($) restaurant | Oct. 03, 2021 USD ($) restaurant | Sep. 27, 2020 USD ($) restaurant | Jan. 23, 2022 USD ($) | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
Number of restaurants acquired from franchisees | restaurant | 13 | 20 | 8 | |
Goodwill | $ 366,821 | $ 47,774 | $ 47,161 | |
Revision of Prior Period, Adjustment | ||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
Goodwill | $ 300 | |||
Franchise Acquisitions | ||||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||||
Receivables eliminated in acquisition accounting | 300 | |||
Goodwill | $ 0 | $ 613 | $ 414 |
Summary of Refranchisings and_5
Summary of Refranchisings and Franchise Acquisitions (Purchase Price Allocations on Franchise Acquisitions) (Details) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 USD ($) restaurant | Oct. 03, 2021 USD ($) restaurant | Sep. 27, 2020 USD ($) restaurant | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | |||
Number of restaurants acquired from franchisees | restaurant | 13 | 20 | 8 |
Goodwill | $ 366,821 | $ 47,774 | $ 47,161 |
Gains on the acquisition of franchise-operated restaurants | (309) | (340) | 0 |
Franchise Acquisitions | |||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | |||
Inventory | 0 | 258 | 73 |
Property and equipment | 540 | 1,136 | 903 |
Intangible assets | 66 | 245 | 263 |
Other assets | 0 | 10 | 6 |
Goodwill | 0 | 613 | 414 |
Liabilities assumed | 0 | (277) | (800) |
Total consideration | $ 297 | $ 1,645 | $ 859 |
Summary of Refranchisings and_6
Summary of Refranchisings and Franchise Acquisitions (Disclosure of Assets Held-for-sale) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||
Assets held for sale | $ 17,019 | $ 1,692 |
Jack in the Box | ||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||
Assets held for sale | 14,151 | 0 |
Other | ||
Summary Of Refranchisings, Franchisee Development And Acquisitions [Line Items] | ||
Assets held for sale | $ 2,868 | $ 1,692 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 47,774 | $ 47,161 |
Goodwill, acquired during period | 613 | |
Sale of Jack in the Box company-operated restaurants to franchisees | (948) | |
Goodwill, ending balance | 366,821 | 47,774 |
Jack in the Box | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 273 | |
Del Taco | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 319,722 | |
Goodwill, ending balance | 319,722 | |
Jack in the Box | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 47,774 | 47,161 |
Goodwill, acquired during period | 613 | |
Sale of Jack in the Box company-operated restaurants to franchisees | (948) | |
Goodwill, ending balance | 136,099 | 47,774 |
Jack in the Box | Jack in the Box | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 273 | |
Jack in the Box | Del Taco | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 89,000 | |
Del Taco | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Goodwill, acquired during period | 0 | |
Sale of Jack in the Box company-operated restaurants to franchisees | 0 | |
Goodwill, ending balance | 230,722 | 0 |
Del Taco | Jack in the Box | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 0 | |
Del Taco | Del Taco | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 230,722 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Definite-lived intangible assets: | ||
Gross Amount | $ 12,901 | $ 542 |
Accumulated Amortization | (577) | (72) |
Net Amount | 12,324 | 470 |
Indefinite-lived intangible assets: | ||
Gross Amount | 283,500 | 0 |
Sublease assets | ||
Definite-lived intangible assets: | ||
Gross Amount | 2,671 | 0 |
Accumulated Amortization | (139) | 0 |
Net Amount | 2,532 | 0 |
Franchise contracts | ||
Definite-lived intangible assets: | ||
Gross Amount | 9,700 | 0 |
Accumulated Amortization | (311) | 0 |
Net Amount | 9,389 | 0 |
Reacquired franchise rights | ||
Definite-lived intangible assets: | ||
Gross Amount | 530 | 542 |
Accumulated Amortization | (127) | (72) |
Net Amount | $ 403 | $ 470 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Estimated Amortization Expense) (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 823 |
2024 | 820 |
2025 | 820 |
2026 | 818 |
2027 | $ 813 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | $ 13,820 | $ 18,555 |
Quoted Prices in Active Markets for Identical (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 13,820 | 18,555 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Significant Unobservable Inputs (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 | 13,820 | 18,555 |
Non-qualified Deferred Compensation Plan | Quoted Prices in Active Markets for Identical (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 13,820 | 18,555 |
Non-qualified Deferred Compensation Plan | Significant Other Observable Inputs (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 (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Notes) (Details) - Senior Notes - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Series 2019-1 3.982% Fixed Rate Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 0 | $ 570,688 |
Series 2019-1 3.982% Fixed Rate Class A-2-I Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 714,125 | 1,290,251 |
Series 2019-1 3.982% Fixed Rate Class A-2-I Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 641,851 | 1,351,057 |
Series 2019-1 4.476% Fixed Rate Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 270,875 | 272,938 |
Series 2019-1 4.476% Fixed Rate Class A-2-II Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 1,089,000 | 0 |
Series 2019-1 4.476% Fixed Rate Class A-2-II Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 917,428 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amounts drawn under letter agreement | $ 50,000 | $ 0 |
Indebtedness (Schedule of Long-
Indebtedness (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Feb. 11, 2022 | Oct. 03, 2021 |
Debt Instrument [Line Items] | |||
Finance lease obligations and other debt | $ 1,690 | $ 2,275 | |
Total debt | 1,854,815 | 1,292,526 | |
Less current maturities of long-term debt | (30,169) | (894) | |
Less unamortized debt issuance costs | (25,106) | (18,212) | |
Long-term debt | 1,799,540 | 1,273,420 | |
Senior Notes | Series 2019-1 3.982% Fixed Rate Class A-2-I Notes | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 0 | 570,688 | |
Less unamortized debt issuance costs | $ (17,400) | ||
Senior Notes | Series 2019-1 4.476% Fixed Rate Class A-2-II Notes | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 270,875 | 272,938 | |
Senior Notes | Series 2019-1 4.970% Fixed Rate Class A-2-III Notes | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 443,250 | 446,625 | |
Senior Notes | Series 2022-1 3.445% Fixed Rate Class A-2-I Notes | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 544,500 | 0 | |
Senior Notes | Series 2022-1 4.136% Fixed Rate Class A-2-II Notes | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 544,500 | 0 | |
Senior Notes | Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 50,000 | $ 0 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||
Apr. 17, 2022 USD ($) | Oct. 02, 2022 USD ($) extension | Oct. 03, 2021 USD ($) | Sep. 27, 2020 USD ($) | Mar. 08, 2022 USD ($) | Feb. 11, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 7,700,000 | $ 0 | $ 0 | |||
Debt issuance costs | $ 25,106,000 | 18,212,000 | ||||
Del Taco | Bridge Loan | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Term loan debt issuance cost | 2,100,000 | |||||
Line of Credit | Del Taco | ||||||
Debt Instrument [Line Items] | ||||||
Unused borrowing capacity | 59,900,000 | |||||
Line of credit issued | 15,100,000 | |||||
Debt issuance costs | 300,000 | |||||
Line of Credit | Del Taco | Syndicated Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | 75,000,000 | |||||
Total debt | 115,200,000 | |||||
Line of Credit | Del Taco | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 20,000,000 | |||||
Class A-2-I Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 550,000,000 | |||||
Interest rate | 3.445% | |||||
Class A-2-II Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 550,000,000 | |||||
Interest rate | 4.136% | |||||
Series 2022-1 Class A-1 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5% | |||||
Revolving credit facility | $ 50,000,000 | 0 | ||||
Unused borrowing capacity | 58,000,000 | |||||
Line of credit issued | $ 42,000,000 | |||||
Number of extensions for variable funding notes | extension | 2 | |||||
Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 | Senior Notes | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Series 2022-1 Variable Funding Notes, variable interest rate of 5.341% at October 2, 2022 | Senior Notes | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Series 2019-1 3.982% Fixed Rate Class A-2-I Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | $ 0 | 570,688,000 | ||||
Loss on extinguishment of debt | $ 5,600,000 | |||||
Debt issuance costs | $ 17,400,000 | |||||
Specified maximum leverage ratio | 5 | |||||
Series 2019-1 4.476% Fixed Rate Class A-2-II Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | $ 270,875,000 | 272,938,000 | ||||
Effective interest rate | 4.851% | |||||
Series 2019-1 Class A-2-III Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.258% | |||||
Series 2022-1 3.445% Fixed Rate Class A-2-I Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.43% | |||||
Total debt | $ 544,500,000 | 0 | ||||
Series 2022-1 4.136% Fixed Rate Class A-2-II Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.783% | |||||
Total debt | $ 544,500,000 | $ 0 |
Indebtedness (Scheduled Princip
Indebtedness (Scheduled Principal Payments of Long-Term Debt) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 30,169 | |
2024 | 29,623 | |
2025 | 29,315 | |
2026 | 289,183 | |
2027 | 516,045 | |
Thereafter | 960,480 | |
Total debt | $ 1,854,815 | $ 1,292,526 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Oct. 02, 2022 |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease term (in years) | 20 years |
Minimum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease renewal option as lessor (in years) | 1 year |
Minimum | Restaurant and Office Equipment | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease term (in years) | 3 years |
Maximum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease renewal option as lessor (in years) | 20 years |
Maximum | Restaurant and Office Equipment | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease term (in years) | 8 years |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 1,332,135 | $ 934,066 |
Finance lease ROU assets | 854 | 1,698 |
Total ROU assets | 1,332,989 | 935,764 |
Current operating lease liabilities | 171,311 | 150,636 |
Current finance lease liabilities | 896 | 894 |
Long-term operating lease liabilities | 1,165,097 | 809,191 |
Long-term finance lease liabilities | 435 | 1,381 |
Total lease liabilities | $ 1,337,739 | $ 962,102 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Leases (Lessee Lease Costs) (De
Leases (Lessee Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Finance lease cost: | |||
Amortization of ROU assets | $ 827 | $ 807 | $ 767 |
Interest on lease liabilities | 67 | 89 | 110 |
Operating lease cost | 218,837 | 194,149 | 190,461 |
Short-term lease cost | 824 | 427 | 175 |
Variable lease cost | 48,872 | 43,498 | 40,798 |
Lease cost, total | 269,427 | 238,970 | 232,311 |
Property taxes and common area maintenance costs | $ 38,200 | $ 38,000 | $ 37,400 |
Weighted-average remaining lease term (in years): | |||
Finance leases | 1 year 6 months | 2 years 4 months 24 days | |
Operating leases | 10 years | 9 years | |
Weighted-average discount rate: | |||
Finance leases | 3.80% | 3.60% | |
Operating leases | 4.60% | 4.10% |
Leases (Finance and Operating L
Leases (Finance and Operating Lease Payments) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Finance Leases | ||
2023 | $ 932 | |
2024 | 372 | |
2025 | 40 | |
2026 | 27 | |
2027 | 14 | |
Thereafter | 13 | |
Total future lease payments | 1,398 | |
Less: imputed interest | (67) | |
Present value of lease liabilities | 1,331 | |
Less current portion | (896) | $ (894) |
Long-term lease obligations | 435 | 1,381 |
Finance lease, noncancellable commitments | 1,400 | |
Operating Leases | ||
2023 | 231,670 | |
2024 | 196,702 | |
2025 | 191,507 | |
2026 | 174,068 | |
2027 | 159,219 | |
Thereafter | 758,184 | |
Total future lease payments | 1,711,350 | |
Less: imputed interest | (374,942) | |
Present value of lease liabilities | 1,336,408 | |
Less current portion | (171,311) | (150,636) |
Long-term lease obligations | 1,165,097 | $ 809,191 |
Operating lease, noncancellable commitments | $ 1,366,500 |
Leases (Assets Recorded Under F
Leases (Assets Recorded Under Finance Leases) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Property, plant and Equipment [Line Items] | ||
Less accumulated amortization | $ (6,047) | $ (5,513) |
Finance lease, right-of-use assets | 854 | 1,698 |
Buildings | ||
Property, plant and Equipment [Line Items] | ||
Finance lease, right-of-use asset before amortization | 1,342 | 1,342 |
Equipment | ||
Property, plant and Equipment [Line Items] | ||
Finance lease, right-of-use asset before amortization | $ 5,559 | $ 5,869 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow and Non-cash Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 218,605 | $ 218,570 |
Operating cash flows from financing leases | 67 | 89 |
Financing cash flows from financing leases | 907 | 829 |
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: | ||
Right-of-use assets obtained in exchange for new operating lease obligations | 221,466 | 186,621 |
Right-of-use assets obtained in exchange for new financing lease obligations | $ 45 | $ 184 |
Leases (Sale, Leaseback Transac
Leases (Sale, Leaseback Transactions) (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||
Jul. 05, 2020 USD ($) | Jan. 19, 2020 USD ($) saleLeasebackTransaction | Oct. 02, 2022 USD ($) saleLeasebackTransaction | Oct. 03, 2021 USD ($) saleLeasebackTransaction | Sep. 27, 2020 USD ($) saleLeasebackTransaction officeBuilding | |
Sale Leaseback Transaction [Line Items] | |||||
Number of sales - leaseback transactions completed | saleLeasebackTransaction | 1 | 4 | 2 | 2 | |
Proceeds from the sale and leaseback of assets | $ 10,768 | $ 3,884 | $ 19,828 | ||
Notice period for termination of lease without penalty | 90 days | ||||
Restaurant | |||||
Sale Leaseback Transaction [Line Items] | |||||
Proceeds from the sale and leaseback of assets | $ 2,400 | 10,800 | 3,900 | ||
Gain on sale of leaseback transaction | $ 100 | $ (200) | $ 100 | ||
Initial term of operating lease | 17 years | 20 years | |||
Restaurant | Minimum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Initial term of operating lease | 16 years | ||||
Restaurant | Maximum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Initial term of operating lease | 20 years | ||||
Multi-tenant Commercial Property | |||||
Sale Leaseback Transaction [Line Items] | |||||
Proceeds from the sale and leaseback of assets | $ 17,400 | ||||
Gain on sale of leaseback transaction | $ 200 | ||||
Initial term of operating lease | 20 years | ||||
Principal Executive Offices | |||||
Sale Leaseback Transaction [Line Items] | |||||
Number of sales - leaseback transactions completed | officeBuilding | 1 | ||||
Proceeds from the sale and leaseback of assets | $ 20,600 | ||||
Gain on sale of leaseback transaction | $ 10,800 | ||||
Initial term of operating lease | 18 months |
Leases (Rental Income) (Details
Leases (Rental Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | |
Amortization of favorable and unfavorable lease contracts, net | $ 1,120 | $ 0 | $ 0 |
Operating lease income - closed restaurants and other | 6,407 | 6,027 | |
Owned Properties | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease income - closed restaurants and other | 60 | 0 | |
Leased Properties | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease income - closed restaurants and other | 6,347 | 6,027 | |
Franchise contracts | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease income - franchise | 231,773 | 238,160 | |
Variable lease income - franchise | 108,420 | 108,474 | |
Amortization of favorable and unfavorable lease contracts, net | 198 | 0 | |
Franchise rental revenues | 340,391 | 346,634 | |
Franchise contracts | Owned Properties | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease income - franchise | 19,221 | 20,132 | |
Variable lease income - franchise | 12,418 | 12,363 | |
Amortization of favorable and unfavorable lease contracts, net | 0 | 0 | |
Franchise rental revenues | 31,639 | 32,495 | |
Franchise contracts | Leased Properties | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease income - franchise | 212,552 | 218,028 | |
Variable lease income - franchise | 96,002 | 96,111 | |
Amortization of favorable and unfavorable lease contracts, net | 198 | 0 | |
Franchise rental revenues | $ 308,752 | $ 314,139 |
Leases (Future Minimum Receipts
Leases (Future Minimum Receipts) (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 243,929 |
2024 | 217,567 |
2025 | 225,542 |
2026 | 211,507 |
2027 | 204,685 |
Thereafter | 879,829 |
Total minimum rental receipts | $ 1,983,059 |
Leases (Assets Held for Lease)
Leases (Assets Held for Lease) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Land | $ 86,134 | $ 105,393 |
Buildings | 960,984 | 907,792 |
Equipment | 163,527 | 112,959 |
Property and equipment, at cost | 1,228,916 | 1,133,038 |
Less accumulated depreciation | (810,752) | (810,124) |
Property and equipment, net | 418,164 | 322,914 |
Other Assets | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Land | 75,967 | 89,791 |
Buildings | 771,567 | 782,450 |
Equipment | 2,750 | 223 |
Property and equipment, at cost | 850,284 | 872,464 |
Less accumulated depreciation | (663,109) | (657,030) |
Property and equipment, net | $ 187,175 | $ 215,434 |
Other Operating Expense (Inco_3
Other Operating Expense (Income), Net (Impairment and Disposal Costs Included in Impairment and Other Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Acquisition, integration, and restructuring costs | $ 20,081 | $ 7 | $ 1,168 |
Costs of closed restaurants and other | 4,290 | 1,907 | 1,872 |
Operating restaurant impairment charges | 5,927 | 0 | 0 |
Accelerated depreciation | 1,124 | 1,592 | 235 |
Gains on disposition of property and equipment, net | (30,533) | (6,888) | (9,768) |
Impairment and other charges, net | $ 889 | $ (3,382) | $ (6,493) |
Other Operating Expense (Inco_4
Other Operating Expense (Income), Net (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 USD ($) restaurant | Oct. 03, 2021 USD ($) | Sep. 27, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Operating restaurant impairment charges | $ 5,927 | $ 0 | $ 0 |
Jack in the Box | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants | restaurant | 9 | ||
Sale Of Related Markets | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating restaurant impairment charges | $ 3,200 | ||
Early Termination Of Contract | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating restaurant impairment charges | $ 2,700 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 10, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Revenues | $ 1,468,083 | $ 1,143,670 | $ 1,021,506 | ||
Total segment operating profit | 338,726 | 327,157 | 282,748 | ||
Depreciation and amortization | 56,100 | 46,500 | 52,798 | ||
Acquisition, integration, and restructuring costs | 20,081 | 7 | 1,168 | ||
Share-based compensation expense | 7,122 | 4,048 | 4,394 | ||
Net COLI losses (gains) | 9,911 | (9,141) | (2,935) | ||
Gains on the sale of company-operated restaurants | (3,878) | (4,203) | (3,261) | ||
Amortization of favorable and unfavorable lease contracts, net | 1,120 | 0 | 0 | ||
Earnings from operations | 248,270 | 289,946 | 230,584 | ||
Total capital expenditures | 46,475 | 41,008 | 19,528 | ||
Jack in the Box | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Revenues | 1,151,188 | 1,143,670 | 1,021,506 | $ 1,021,506 | |
Total segment operating profit | 310,745 | 327,157 | 282,748 | ||
Depreciation and amortization | 39,895 | 46,500 | 52,798 | ||
Total capital expenditures | 31,601 | 41,008 | 19,528 | ||
Del Taco | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Revenues | $ 316,895 | 0 | 0 | ||
Total segment operating profit | 27,981 | 0 | 0 | ||
Depreciation and amortization | 16,205 | 0 | 0 | ||
Total capital expenditures | $ 14,874 | $ 0 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Current: | |||
Federal | $ 28,934 | $ 36,051 | $ 19,721 |
State | 9,320 | 11,793 | 7,844 |
Total Current | 38,254 | 47,844 | 27,565 |
Deferred: | |||
Federal | 5,344 | 4,440 | 4,625 |
State | 2,513 | 3,568 | 537 |
Total Deferred | 7,857 | 8,008 | 5,162 |
Income tax expense from continuing operations | 46,111 | 55,852 | 32,727 |
Income tax expense from discontinued operations | $ 0 | $ 0 | $ 144 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Federal Statutory Income Tax Rate to Effective Tax Rate) (Details) | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 5.20% | 5.10% | 5.30% |
Stock compensation tax deficiency (excess tax benefit) | 0.10% | (0.50%) | (0.40%) |
Benefit of jobs tax credits, net of valuation allowance | (0.60%) | (0.10%) | (0.50%) |
Adjustment to state tax provision | 0% | 0.70% | 0% |
Nondeductible transaction costs | 0.60% | 0% | 0% |
Expense (benefit) related to COLIs | 0.021 | (0.015) | (0.009) |
Officers’ compensation limitation | 0.40% | 0.50% | 2.20% |
Other, net | (0.30%) | 0% | 0.10% |
Effective tax rate | 28.50% | 25.20% | 26.80% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Deferred tax assets: | ||
Operating and finance lease liabilities | $ 340,317 | $ 237,509 |
Accrued defined benefit pension and postretirement benefits | 19,090 | 28,837 |
Accrued legal settlements | 15,158 | 2,378 |
Deferred income | 13,524 | 12,083 |
Accrued insurance | 8,339 | 5,389 |
Share-based compensation | 5,094 | 4,039 |
Tax loss and tax credit carryforwards | 4,399 | 3,129 |
Accrued incentive compensation | 2,402 | 3,455 |
Other reserves and allowances | 1,627 | 1,672 |
Accrued compensation expense | 1,329 | 710 |
Property and equipment, net of impairment | 0 | 5,922 |
Other, net | 2,319 | 3,424 |
Total gross deferred tax assets | 413,598 | 308,547 |
Valuation allowance | (1,140) | (1,349) |
Total net deferred tax assets | 412,458 | 307,198 |
Deferred tax liabilities: | ||
Operating and finance lease ROU assets | (349,903) | (242,038) |
Intangible assets | (87,165) | (11,349) |
Property and equipment, principally due to differences in depreciation | (5,656) | 0 |
Investment basis limitation | (6,010) | 0 |
Other | (1,408) | (2,294) |
Total gross deferred tax liabilities | (450,142) | (255,681) |
Net deferred tax (liabilities) assets | $ (37,684) | |
Net deferred tax (liabilities) assets | $ 51,517 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Income Tax Disclosure [Abstract] | ||
State net operating loss carryforwards | $ 24,600 | |
State net operating loss carryforwards, not subject to expiration | 19,200 | |
Valuation allowance | $ 1,140 | $ 1,349 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 USD ($) | Sep. 27, 2020 USD ($) | Oct. 02, 2022 USD ($) benefitPlan healthcarePlan | Oct. 03, 2021 USD ($) | Sep. 27, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of sponsored defined benefit pension plans | benefitPlan | 2 | ||||
Lump sum payments from qualified plan | $ 122,300,000 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other pension and post-retirement expenses, net | Other pension and post-retirement expenses, net | |||
Pension settlement | $ 38,600,000 | $ 600,000 | |||
Number of healthcare plans | healthcarePlan | 2 | ||||
Cash flow period extension | 30 years | ||||
Decrease in earnings before income taxes from 0.25% decrease in the discount rate | $ 100,000 | ||||
Decrease in earnings before income taxes from 0.25% decrease in the long-term rate of return on assets | 1,000,000 | ||||
Minimum required contribution for retirement plans | 0 | ||||
Qualified Defined Contribution Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, Company contributions | 2,100,000 | $ 1,600,000 | $ 1,600,000 | ||
Non-Qualified Deferred Compensation Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, Company contributions | $ 100,000 | $ 100,000 | $ 300,000 | ||
Maximum annual contributions per employee, percent | 50% | ||||
Maximum annual contributions per employee, percent of bonus | 85% |
Retirement Plans (Reconciliatio
Retirement Plans (Reconciliation of Changes in Benefit Obligations, Plan Assets and Funded Status of Retirement Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of year | $ 409,708 | ||
Fair value at end of year | 303,951 | $ 409,708 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Net actuarial gain | (24,249) | (44,134) | $ 4,875 |
Total recognized in OCI | (27,487) | (49,065) | (39,741) |
SERP | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of year | 75,225 | 78,971 | |
Interest cost | 2,173 | 2,169 | 2,499 |
Participant contributions | 0 | 0 | |
Actuarial (gain) loss | (14,830) | (672) | |
Benefits paid | (5,677) | (5,243) | |
Other | 0 | 0 | |
Obligation at end of year | 56,891 | 75,225 | 78,971 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of year | 0 | 0 | |
Actual (loss) return on plan assets | 0 | 0 | |
Participant contributions | 0 | 0 | |
Employer contributions | 5,677 | 5,243 | |
Benefits paid | (5,677) | (5,243) | |
Other | 0 | 0 | |
Fair value at end of year | 0 | 0 | 0 |
Funded (unfunded) status at end of year | (56,891) | (75,225) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (5,213) | (5,216) | |
Noncurrent liabilities | (51,678) | (70,009) | |
Total asset (liability) recognized | (56,891) | (75,225) | |
Unamortized actuarial loss (gain), net | 15,979 | 32,475 | |
Unamortized prior service cost | 34 | 53 | |
Total | 16,013 | 32,528 | |
Net actuarial gain | (14,830) | (672) | |
Amortization of actuarial (loss) gain | (1,666) | (1,743) | |
Amortization of prior service cost | (19) | (19) | |
Total recognized in OCI | (16,515) | (2,434) | |
Net periodic benefit (credit) cost | 3,858 | 3,931 | 4,236 |
Total recognized in comprehensive income | (12,657) | 1,497 | |
Net actuarial loss (gain) | 718 | ||
Prior service cost | 19 | ||
Total | 737 | ||
Postretirement Health Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of year | 17,162 | 20,965 | |
Interest cost | 489 | 563 | 807 |
Participant contributions | 92 | 112 | |
Actuarial (gain) loss | (4,062) | (3,525) | |
Benefits paid | (1,204) | (1,044) | |
Other | 100 | 91 | |
Obligation at end of year | 12,577 | 17,162 | 20,965 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of year | 0 | 0 | |
Actual (loss) return on plan assets | 0 | 0 | |
Participant contributions | 92 | 112 | |
Employer contributions | 1,012 | 841 | |
Benefits paid | (1,204) | (1,044) | |
Other | 100 | 91 | |
Fair value at end of year | 0 | 0 | 0 |
Funded (unfunded) status at end of year | (12,577) | (17,162) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (1,081) | (1,115) | |
Noncurrent liabilities | (11,496) | (16,047) | |
Total asset (liability) recognized | (12,577) | (17,162) | |
Unamortized actuarial loss (gain), net | (10,781) | (7,359) | |
Unamortized prior service cost | 0 | 0 | |
Total | (10,781) | (7,359) | |
Net actuarial gain | (4,062) | (3,526) | |
Amortization of actuarial (loss) gain | 640 | 341 | |
Amortization of prior service cost | 0 | 0 | |
Total recognized in OCI | (3,422) | (3,185) | |
Net periodic benefit (credit) cost | (151) | 222 | 825 |
Total recognized in comprehensive income | (3,573) | (2,963) | |
Net actuarial loss (gain) | (932) | ||
Prior service cost | 0 | ||
Total | (932) | ||
Qualified Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of year | 410,053 | 412,573 | |
Interest cost | 12,506 | 12,558 | 13,377 |
Participant contributions | 0 | 0 | |
Actuarial (gain) loss | (114,999) | (785) | |
Benefits paid | (14,218) | (14,293) | |
Other | 0 | 0 | |
Obligation at end of year | 293,342 | 410,053 | 412,573 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of year | 409,708 | 365,510 | |
Actual (loss) return on plan assets | (91,539) | 58,491 | |
Participant contributions | 0 | 0 | |
Employer contributions | 0 | 0 | |
Benefits paid | (14,218) | (14,293) | |
Other | 0 | 0 | |
Fair value at end of year | 303,951 | 409,708 | 365,510 |
Funded (unfunded) status at end of year | 10,609 | (345) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Noncurrent assets | 10,609 | 0 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | (345) | |
Total asset (liability) recognized | 10,609 | (345) | |
Unamortized actuarial loss (gain), net | 101,372 | 108,922 | |
Unamortized prior service cost | 0 | 0 | |
Total | 101,372 | 108,922 | |
Net actuarial gain | (5,357) | (39,936) | |
Amortization of actuarial (loss) gain | (2,193) | (3,510) | |
Amortization of prior service cost | 0 | 0 | |
Total recognized in OCI | (7,550) | (43,446) | |
Net periodic benefit (credit) cost | (3,404) | (3,272) | $ 36,661 |
Total recognized in comprehensive income | (10,954) | $ (46,718) | |
Net actuarial loss (gain) | 2,349 | ||
Prior service cost | 0 | ||
Total | $ 2,349 |
Retirement Plans (Fair Value of
Retirement Plans (Fair Value of Plan Assets of Pension Plans) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 303,951 | $ 409,708 | |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 56,891 | 75,225 | $ 78,971 |
Accumulated benefit obligation | 56,891 | 75,225 | |
Fair value of plan assets | 0 | 0 | 0 |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 293,342 | 410,053 | 412,573 |
Accumulated benefit obligation | 293,342 | 410,053 | |
Fair value of plan assets | $ 303,951 | $ 409,708 | $ 365,510 |
Retirement Plans (Components of
Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other pension and post-retirement expenses, net | Other pension and post-retirement expenses, net | Other pension and post-retirement expenses, net |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other pension and post-retirement expenses, net | Other pension and post-retirement expenses, net | Other pension and post-retirement expenses, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Actuarial losses and prior service cost reclassified to earnings | Actuarial losses and prior service cost reclassified to earnings | Actuarial losses and prior service cost reclassified to earnings |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Actuarial losses and prior service cost reclassified to earnings | Actuarial losses and prior service cost reclassified to earnings | Actuarial losses and prior service cost reclassified to earnings |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,173 | $ 2,169 | $ 2,499 |
Actuarial (gain) loss | 1,666 | 1,743 | 1,652 |
Amortization of unrecognized prior service cost | 19 | 19 | 85 |
Net periodic benefit (credit) cost | 3,858 | 3,931 | 4,236 |
Postretirement Health Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 489 | 563 | 807 |
Actuarial (gain) loss | (640) | (341) | 18 |
Net periodic benefit (credit) cost | (151) | 222 | 825 |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 12,506 | 12,558 | 13,377 |
Expected return on plan assets | (18,103) | (19,340) | (19,578) |
Pension settlements | 0 | 0 | 39,218 |
Actuarial (gain) loss | 2,193 | 3,510 | 3,644 |
Net periodic benefit (credit) cost | $ (3,404) | $ (3,272) | $ 36,661 |
Retirement Plans (Determining t
Retirement Plans (Determining the Present Values of Benefit Obligations and Net Periodic Benefit Costs) (Details) - employee | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Jul. 05, 2020 | Apr. 12, 2020 | Jan. 19, 2020 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Assumptions used to determine benefit obligations, Discount rate | 5.80% | 2.99% | 2.84% | |||
Assumptions used to determine net periodic benefit cost, Discount rate | 2.99% | 2.84% | 3.24% | |||
Assumptions used to determine net periodic benefit cost, Rate of future pay increases | 3.50% | |||||
Number of active employees | 0 | 0 | ||||
Postretirement Health Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Assumptions used to determine benefit obligations, Discount rate | 5.82% | 2.95% | 2.77% | |||
Assumptions used to determine net periodic benefit cost, Discount rate | 2.95% | 2.77% | 3.24% | |||
Qualified Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Assumptions used to determine benefit obligations, Discount rate | 5.63% | 3.11% | 3.10% | |||
Assumptions used to determine net periodic benefit cost, Discount rate | 3.13% | 3.38% | 3.61% | 3.11% | 3.10% | 3.36% |
Assumptions used to determine net periodic benefit cost, Long-term rate of return on assets | 5.40% | 5.20% | 5.90% | 4.50% | 5.40% | 5.80% |
Retirement Plans (Health Care C
Retirement Plans (Health Care Cost Trend Rates for Postretirement Health Plans) (Details) | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 |
Participants under age 65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate for next year | 6.25% | 6.50% | 6.75% |
Rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% | 4.50% |
Participants age 65 or older | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate for next year | 5.75% | 6% | 6.25% |
Rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% | 4.50% |
Retirement Plans (Schedule of P
Retirement Plans (Schedule of Plan Asset Allocation) (Details) | Oct. 02, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 100% |
Asset allocation, target, equity securities | 100% |
Cash & cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 1% |
Asset allocation, target, equity securities | 1% |
Domestic equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 11% |
Asset allocation, target, equity securities | 11% |
International equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 11% |
Asset allocation, target, equity securities | 11% |
Core fixed funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 57% |
Asset allocation, target, equity securities | 64% |
High yield | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 2% |
Asset allocation, target, equity securities | 2% |
Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 4% |
Asset allocation, target, equity securities | 4% |
Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 7% |
Asset allocation, target, equity securities | 0% |
Real return bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of plan assets, equity securities | 7% |
Asset allocation, target, equity securities | 7% |
Minimum | Cash & cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Minimum | Domestic equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 5% |
Minimum | International equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 5% |
Minimum | Core fixed funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 57% |
Minimum | High yield | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Minimum | Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Minimum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Minimum | Real return bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Maximum | Cash & cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 0% |
Maximum | Domestic equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 17% |
Maximum | International equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 17% |
Maximum | Core fixed funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 71% |
Maximum | High yield | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 5% |
Maximum | Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 8% |
Maximum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 5% |
Maximum | Real return bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation, target, equity securities | 14% |
Retirement Plans (Fair Values o
Retirement Plans (Fair Values of Qualified Plan's Assets) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 303,951 | $ 409,708 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,267 | 1,969 |
Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 33,659 | 66,921 |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 32,807 | 63,087 |
Investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 193,426 | 219,295 |
High yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6,970 | 10,156 |
Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12,061 | 26,519 |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22,761 | 21,761 |
Quoted Prices in Active Markets for Identical (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 77,324 | 128,906 |
Quoted Prices in Active Markets for Identical (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical (Level 1) | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 33,659 | 66,921 |
Quoted Prices in Active Markets for Identical (Level 1) | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16,557 | 31,128 |
Quoted Prices in Active Markets for Identical (Level 1) | Investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20,138 | 20,701 |
Quoted Prices in Active Markets for Identical (Level 1) | High yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6,970 | 10,156 |
Quoted Prices in Active Markets for Identical (Level 1) | Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical (Level 1) | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 175,555 | 200,563 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,267 | 1,969 |
Significant Other Observable Inputs (Level 2) | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 173,288 | 198,594 |
Significant Other Observable Inputs (Level 2) | High yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | High yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Plans (Contributions
Retirement Plans (Contributions Expected to be Paid in Next Fiscal Year and Projected Benefit Payments) (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated net contributions during fiscal 2023 | $ 5,213 |
2023 | 20,784 |
2024 | 20,868 |
2025 | 21,185 |
2026 | 21,685 |
2027 | 22,190 |
2028-2032 | 117,216 |
Postretirement Health Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated net contributions during fiscal 2023 | 1,112 |
2023 | 1,112 |
2024 | 1,127 |
2025 | 1,137 |
2026 | 1,139 |
2027 | 1,135 |
2028-2032 | $ 5,383 |
Share-Based Employee Compensa_3
Share-Based Employee Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 31, 2020 shares | Oct. 02, 2022 USD ($) day $ / shares shares | Oct. 03, 2021 USD ($) $ / shares shares | Sep. 27, 2020 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value of shares issued in connection with director retirements (less than) | $ | $ 0.1 | |||
Del Taco RSUs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Awards outstanding (in shares) | 236,606 | 141,197 | ||
Total unrecognized compensation cost related to stock options granted | $ | $ 9.5 | |||
Weighted-average period for unrecognized compensation cost, (in years) | 2 years 4 months 24 days | |||
Weighted-average grant-date fair value (in usd per share) | $ / shares | $ 78.28 | $ 95.44 | $ 73.94 | |
Total fair value of awards vested | $ | $ 2.5 | $ 4.3 | $ 8.7 | |
Modified restricted stock units vested in period (in shares) | 28,600 | |||
Modified Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Modified restricted stock units vested in period (in shares) | 23,128 | |||
Del Taco options subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Total unrecognized compensation cost related to stock options granted | $ | $ 0.1 | |||
Weighted-average period for unrecognized compensation cost, (in years) | 2 months 12 days | |||
Option grants contractual term | 7 years | |||
Total intrinsic value of stock options exercised | $ | $ 0.1 | $ 1.6 | $ 0.7 | |
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards outstanding (in shares) | 65,382 | 35,097 | ||
Total unrecognized compensation cost related to stock options granted | $ | $ 2.7 | |||
Weighted-average period for unrecognized compensation cost, (in years) | 1 year 9 months 18 days | |||
Weighted-average grant-date fair value (in usd per share) | $ / shares | $ 78.95 | $ 88.88 | $ 81.02 | |
Total fair value of awards vested | $ | $ 0.1 | $ 0.6 | $ 0.5 | |
Modified restricted stock units vested in period (in shares) | 6,905 | |||
Del Taco RSAs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards outstanding (in shares) | 4,670 | 0 | ||
Total unrecognized compensation cost related to stock options granted | $ | $ 0.2 | |||
Weighted-average period for unrecognized compensation cost, (in years) | 4 months 24 days | |||
Weighted-average grant-date fair value (in usd per share) | $ / shares | $ 82.33 | |||
Total fair value of awards vested | $ | $ 0.7 | |||
Deferred Compensation for Non Management Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards outstanding (in shares) | 116,274 | 109,463 | ||
Threshold trading days | day | 10 | |||
Shares issued in connection with director retirement (in shares) | 0 | 0 | 204 | |
Minimum | Del Taco RSUs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units vested, percentage | 50% | |||
Minimum | Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance share awards vesting rights, percentage | 0% | |||
Maximum | Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance share awards vesting rights, percentage | 150% | |||
Executive Officers | Del Taco RSUs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards outstanding (in shares) | 75,791 | |||
Non-Management Directors | Del Taco RSUs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 12 months | |||
Awards outstanding (in shares) | 74,830 | |||
Management | Del Taco RSUs subject to accelerated vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards outstanding (in shares) | 85,985 | |||
Two Thousand Four Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized (in shares) | 11,600,000 | |||
Common stock available for future issuance (in shares) | 1,479,033 | |||
Del Taco Restaurants, Inc. 2015 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock available for future issuance (in shares) | 174,553 | |||
Deferred Compensation Plan for Non-Management Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized (in shares) | 350,000 | |||
Common stock available for future issuance (in shares) | 142,918 |
Share-Based Employee Compensa_4
Share-Based Employee Compensation (Components of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 7,122 | $ 4,048 | $ 4,394 |
Del Taco RSUs subject to accelerated vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 4,544 | 2,969 | 3,526 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 19 | 25 | 351 |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,835 | 830 | 254 |
Nonvested restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 434 | 0 | 0 |
Non-management directors’ deferred compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 290 | $ 224 | $ 263 |
Share-Based Employee Compensa_5
Share-Based Employee Compensation (Summary of RSU Activity) (Details) - Del Taco RSUs subject to accelerated vesting - $ / shares | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Shares | |||
Awards outstanding, beginning (in shares) | 141,197 | ||
Granted (in shares) | 130,862 | ||
Released (in shares) | (28,600) | ||
Forfeited (in shares) | (6,853) | ||
Awards outstanding, ending (in shares) | 236,606 | 141,197 | |
Weighted- Average Grant Date Fair Value | |||
Awards outstanding, Weighted-Average Grant Date Fair Value, Beginning balance (in usd per share) | $ 76.84 | ||
Granted, Weighted-Average Grant Date Fair Value (in usd per share) | 78.28 | $ 95.44 | $ 73.94 |
Released, Weighted-Average Grant Date Fair Value (in usd per share) | 89.02 | ||
Forfeited, Weighted-Average Grant Date Fair Value (in usd per share) | 83.34 | ||
Awards outstanding, Weighted-Average Grant Date Fair Value, Ending balance (in usd per share) | $ 75.98 | $ 76.84 |
Share-Based Employee Compensa_6
Share-Based Employee Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Oct. 02, 2022 USD ($) $ / shares shares | |
Shares | |
Options outstanding, beginning balance (in shares) | 33,117 |
Granted (in shares) | 0 |
Exercised (in shares) | (667) |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Options outstanding, ending balance (in shares) | 32,450 |
Options exercisable (in shares) | 29,446 |
Weighted- Average Exercise Price | |
Options outstanding, Weighted Average Exercise Price, Beginning balance (in usd per share) | $ / shares | $ 92.44 |
Options outstanding, Weighted Average Exercise Price, Exercised (in usd per share) | $ / shares | 75.23 |
Options outstanding, Weighted Average Exercise Price, Ending balance (in usd per share) | $ / shares | 92.80 |
Options exercisable, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 94.59 |
Options outstanding, Weighted Average Remaining Contractual Term, years | 2 years 3 months 29 days |
Options exercisable, Weighted Average Remaining Contractual Term, years | 2 years 1 month 20 days |
Options outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Options exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Share-Based Employee Compensa_7
Share-Based Employee Compensation (Schedule of Weighted-Average Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.70% | ||
Expected dividends yield | 2.10% | ||
Expected stock price volatility | 28.10% | ||
Expected life of options (in years) | 3 years 5 months 19 days | ||
Weighted-average grant date fair value (in usd per share) | $ 13.97 | ||
Granted (in shares) | 0 | 0 |
Share-Based Employee Compensa_8
Share-Based Employee Compensation (Summary of PSU Activity) (Details) - Performance share awards - $ / shares | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Shares | |||
Awards outstanding, beginning (in shares) | 35,097 | ||
Granted (in shares) | 37,822 | ||
Issued (in shares) | (6,905) | ||
Forfeited (in shares) | 0 | ||
Performance adjustments (in shares) | (632) | ||
Awards outstanding, ending (in shares) | 65,382 | 35,097 | |
Weighted- Average Grant Date Fair Value | |||
Awards outstanding, Weighted-Average Grant Date Fair Value, Beginning balance (in usd per share) | $ 79.92 | ||
Granted, Weighted-Average Grant Date Fair Value (in usd per share) | 78.95 | $ 88.88 | $ 81.02 |
Issued, Weighted-Average Grant Date Fair Value (in usd per share) | 82.80 | ||
Forfeited, Weighted-Average Grant Date Fair Value (in usd per share) | 0 | ||
Performance adjustments, Weighted- Average Grant Date Fair Value(in usd per share) | 70.56 | ||
Awards outstanding, Weighted-Average Grant Date Fair Value, Ending balance (in usd per share) | $ 79.14 | $ 79.92 |
Share-Based Employee Compensa_9
Share-Based Employee Compensation (Summary of RSA Activity) (Details) - Del Taco RSAs subject to accelerated vesting | 12 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Shares | |
Awards outstanding, beginning (in shares) | shares | 0 |
Granted (in shares) | shares | 21,152 |
Issued (in shares) | shares | (8,368) |
Forfeited (in shares) | shares | (8,114) |
Awards outstanding, ending (in shares) | shares | 4,670 |
Weighted- Average Grant Date Fair Value | |
Awards outstanding, Weighted-Average Grant Date Fair Value, Beginning balance (in usd per share) | $ / shares | $ 0 |
Granted, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 82.33 |
Issued, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 82.33 |
Forfeited, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 82.33 |
Awards outstanding, Weighted-Average Grant Date Fair Value, Ending balance (in usd per share) | $ / shares | $ 82.33 |
Share-Based Employee Compens_10
Share-Based Employee Compensation (Summary of Performance Share Award Activity) (Details) - Deferred Compensation for Non Management Directors | 12 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Shares | |
Awards outstanding, beginning (in shares) | shares | 109,463 |
Deferred directors’ compensation (in shares) | shares | 3,438 |
Dividend equivalents (in shares) | shares | 3,373 |
Awards outstanding, ending (in shares) | shares | 116,274 |
Weighted- Average Grant Date Fair Value | |
Awards outstanding, Weighted-Average Grant Date Fair Value, Beginning balance (in usd per share) | $ / shares | $ 43.06 |
Deferred directors' compensation, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 84.35 |
Dividend equivalents, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | $ 77.44 |
Awards outstanding, Weighted-Average Grant Date Fair Value, Ending balance (in usd per share) | $ / shares | $ 45.28 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Oct. 02, 2022 USD ($) restaurant $ / shares shares | Oct. 03, 2021 USD ($) $ / shares | Sep. 27, 2020 USD ($) $ / shares | |
Dividends Payable [Line Items] | |||
Shares repurchased (in shares) | shares | 0.3 | ||
Cost of shares repurchased | $ | $ 25,000 | $ 200,000 | $ 153,550 |
Remaining amount under stock repurchase program | $ | $ 175,000 | ||
Number of cash dividends declared | restaurant | 4 | ||
Cash dividends declared per common share (in usd per share) | $ 1.76 | $ 1.68 | $ 1.20 |
Total cash dividends | $ | $ 37,200 | ||
Dividends Declared, Tranche One | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share (in usd per share) | $ 0.44 | ||
Dividends Declared, Tranche Two | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share (in usd per share) | 0.44 | ||
Dividends Declared, Tranche Three | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share (in usd per share) | 0.44 | ||
Dividends Declared, Tranche Four | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share (in usd per share) | $ 0.44 |
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 | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Average Shares Outstanding [Line Items] | |||
Weighted-average shares outstanding - basic (in shares) | 21,195 | 22,402 | 23,125 |
Weighted-average shares outstanding - diluted (in shares) | 21,245 | 22,478 | 23,269 |
Antidilutive (in shares) | 23 | 29 | 318 |
Performance conditions not satisfied at the end of the period (in shares) | 61 | 25 | 14 |
Nonvested stock awards and units | |||
Average Shares Outstanding [Line Items] | |||
Effect of potentially dilutive securities (in shares) | 47 | 62 | 137 |
Del Taco options subject to accelerated vesting | |||
Average Shares Outstanding [Line Items] | |||
Effect of potentially dilutive securities (in shares) | 1 | 9 | 0 |
Performance share awards | |||
Average Shares Outstanding [Line Items] | |||
Effect of potentially dilutive securities (in shares) | 2 | 5 | 7 |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 24, 2022 USD ($) | Jun. 04, 2022 USD ($) | Aug. 31, 2010 formerEmployee | Oct. 02, 2022 USD ($) | Oct. 03, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||||
Legal accruals | $ 59,165,000 | $ 7,540,000 | |||
Estimated litigation liability | 6,500,000 | ||||
Lease guarantee | $ 23,500,000 | ||||
Qdoba guaranteed leases, remaining term | 15 years | ||||
Coca-Cola and Dr. Pepper Purchase Commitments | |||||
Loss Contingencies [Line Items] | |||||
Unconditional purchase obligations | $ 75,200,000 | ||||
Unrecorded purchase obligation period | 7 years | ||||
Vendors Providing Information Technology Services | |||||
Loss Contingencies [Line Items] | |||||
Unconditional purchase obligations | $ 6,700,000 | ||||
Unrecorded purchase obligation period | 4 years | ||||
Information technology services, early contract termination fees | $ 0 | ||||
Gessele v. Jack in the Box Inc. | |||||
Loss Contingencies [Line Items] | |||||
Number of former employees who instituted litigation | formerEmployee | 5 | ||||
Gessele v. Jack in the Box Inc. | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded, value | $ 6,400,000 | ||||
Torrez v. Jack in the Box | Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded, value | $ 50,000,000 |
Supplemental Consolidated Cas_3
Supplemental Consolidated Cash Flow Information (Additional Information Related to Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Supplemental Cash Flow Information [Abstract] | |||
Income tax payments | $ 33,819 | $ 48,200 | $ 29,360 |
Interest, net of amounts capitalized | 70,475 | 60,413 | 68,612 |
Increase in notes and accounts receivable from the sale of restaurant properties | 10,001 | 0 | 0 |
Increase in dividends accrued or converted to common stock equivalents | 275 | 232 | 117 |
Consideration for franchise acquisitions | 1,305 | 859 | |
Increase (decrease) in obligations for purchases of property and equipment | 1,637 | 1,755 | (2,696) |
Decrease in obligations for treasury stock repurchases | $ 0 | $ 0 | $ (2,025) |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information (Schedule of Supplemental Consolidated Balance Sheet Information) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 |
Supplemental Consolidated Financial Statement Information [Abstract] | |||
Trade | $ 90,105 | $ 75,273 | |
Notes receivable, current portion | 8,643 | 1,467 | |
Income tax receivable | 878 | 1,157 | |
Other | 10,152 | 2,730 | |
Allowance for doubtful accounts | (5,975) | (6,292) | $ (5,541) |
Accounts and other receivables, net | 103,803 | 74,335 | |
Company-owned life insurance policies | 108,924 | 123,566 | |
Deferred rent receivable | 43,891 | 46,234 | |
Franchise tenant improvement allowances | 32,429 | 34,124 | |
Notes receivable, less current portion | 11,624 | 4,544 | |
Other | 29,701 | 15,970 | |
Other assets, net | 226,569 | 224,438 | |
Legal accruals | 59,165 | 7,540 | |
Payroll and related taxes | 43,837 | 34,649 | |
Sales and property taxes | 30,947 | 23,174 | |
Insurance | 32,272 | 21,218 | |
Deferred rent income | 18,525 | 17,892 | |
Advertising | 11,028 | 13,097 | |
Deferred franchise fees and development fees | 5,647 | 4,949 | |
Other | 52,511 | 25,898 | |
Accrued liabilities | 253,932 | 148,417 | |
Defined benefit pension plans | 51,679 | 70,354 | |
Deferred franchise and development fees | 40,802 | 36,571 | |
Other | 42,213 | 49,417 | |
Other long-term liabilities | $ 134,694 | $ 156,342 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 12 Months Ended | |||
Nov. 18, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Sep. 27, 2020 | |
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share (in usd per share) | $ 1.76 | $ 1.68 | $ 1.20 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.44 |
Uncategorized Items - jack-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |