XML 36 R24.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Discontinued Operations (Tables) | 9 Months Ended
--- | ---
Jul. 08, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Disposal Groups, Including Discontinued Operations | The following table summarizes the Qdoba results for each period prior to sale (in thousands, except per share data):
| Quarter |  | Year-to-date
| July 8, 2018 |  | July 9, 2017 |  | July 8, 2018 |  | July 9, 2017
Company restaurant sales | $ | — |  |  | $ | 107,067 |  |  | $ | 192,620 |  |  | $ | 334,559 |
Franchise revenues | — |  |  | 4,678 |  |  | 9,337 |  |  | 15,442 |
Company restaurant costs (excluding depreciation and amortization) | — |  |  | (84,747 | ) |  | (166,122 | ) |  | (271,176 | )
Franchise costs (excluding depreciation and amortization) | — |  |  | (879 | ) |  | (2,338 | ) |  | (2,962 | )
Selling, general and administrative expenses | (202 | ) |  | (8,232 | ) |  | (18,314 | ) |  | (28,617 | )
Depreciation and amortization | — |  |  | (5,023 | ) |  | (5,012 | ) |  | (16,775 | )
Impairment and other charges, net | (123 | ) |  | (1,815 | ) |  | (2,386 | ) |  | (9,530 | )
Interest expense, net | — |  |  | (2,229 | ) |  | (4,787 | ) |  | (6,788 | )
Operating (losses) earnings from discontinued operations before income taxes | (325 | ) |  | 8,820 |  |  | 2,998 |  |  | 14,153 |
Gain on Qdoba Sale | (3,648 | ) |  | — |  |  | 32,081 |  |  | — |
(Losses) earnings from discontinued operations before income taxes | (3,973 | ) |  | 8,820 |  |  | 35,079 |  |  | 14,153 |
Income taxes | 1,097 |  |  | (3,398 | ) |  | (15,927 | ) |  | (5,455 | )
(Losses) earnings from discontinued operations, net of income taxes | $ | (2,876 | ) |  | $ | 5,422 |  |  | $ | 19,152 |  |  | $ | 8,698 |
Net (losses) earnings per share from discontinued operations: |  |  |  |  |  |  |
Basic | $ | (0.10 | ) |  | $ | 0.18 |  |  | $ | 0.66 |  |  | $ | 0.28 |
Diluted | $ | (0.10 | ) |  | $ | 0.18 |  |  | $ | 0.65 |  |  | $ | 0.28 |
Disclosure of Long Lived Assets Held-for-sale | The following is a reconciliation of the gain recorded for the Qdoba sale (in thousands):
Net proceeds received from the Qdoba Sale (1) |  | $ | 298,474 |
Qdoba assets: |  |
Cash |  | 3,113 |
Accounts receivable, net |  | 9,461 |
Inventories |  | 3,112 |
Prepaid expenses and other current assets |  | 5,007 |
Property and equipment, net |  | 163,404 |
Intangible assets, net |  | 12,518 |
Goodwill |  | 117,636 |
Other assets, net |  | 2,604 |
Total Qdoba assets |  | 316,855 |
Qdoba liabilities: |  |
Accounts payable |  | 7,847 |
Accrued liabilities |  | 20,265 |
Current maturities of long-term debt |  | 180 |
Straight-line rent accrual |  | 14,595 |
Deferred income tax liability |  | 8,676 |
Other long-term liabilities |  | 11,144 |
Total Qdoba liabilities |  | 62,707 |
Other transaction costs incurred as part of the Qdoba Sale (2) |  | 12,245 |
Gain on Qdoba Sale before income taxes |  | $ | 32,081 |
____________________________
(1) | The proceeds received from the Qdoba Sale are net of the finalized working capital adjustment outlined in the Qdoba Purchase Agreement totaling $6.9 million, and the derecognition of foreign currency translation adjustments recorded in accumulated other comprehensive income of $0.1 million.
(2) | Costs directly incurred as a result of the Qdoba Sale, including investment bank fees, legal fees, professional fees, employee transaction awards, transfer taxes and other administrative costs.
Qdoba |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Lease guarantees — While all operating leases held in the name of Qdoba were part of the Qdoba Sale, some of the leases remain guaranteed by the Company pursuant to one or more written guarantees (the “Guarantees”). In the event Qdoba fails to meet its payment and performance obligations under such guaranteed leases, we may be required to make rent and other payments to the landlord under the requirements of the Guarantees. Should we, as guarantor of the lease obligations, be required to make any lease payments due for the remaining term of the subject lease(s) subsequent to March 21, 2018, the maximum amount we may be required to pay is the sum of the annual rent payments due for the remainder of the subject lease terms. The annual rent on these leases in the first year subsequent to the Qdoba Sale is approximately $6.2 million, and will increase an average of 1.8% annually based on the provisions of the subject leases. The lease terms extend for a maximum of approximately 18 more years as of July 8, 2018, and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event that we are obligated to make payments under the Guarantees, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. Qdoba continues to meet its obligations under these leases and there have not been any events that would indicate that Qdoba will not continue to meet the obligations of the leases. As such, we have not recorded a liability for the Guarantees as of July 8, 2018 as the likelihood of Qdoba defaulting on the assigned agreements was deemed to be less than probable.

X
- Definition Tabular disclosure of long lived assets held for sale. Disclosure may include the description of the facts and circumstances leading to the expected disposal, manner and timing of disposal, the carrying value of the assets held for sale, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230 + Details
Name: | us-gaap_DisclosureOfLongLivedAssetsHeldForSaleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_IncomeStatementBalanceSheetAndAdditionalDisclosuresByDisposalGroupsIncludingDiscontinuedOperationsLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760 + Details
Name: | us-gaap_ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_IncomeStatementBalanceSheetAndAdditionalDisclosuresByDisposalGroupsIncludingDiscontinuedOperationsAxis=jack_QdobaMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |