XML 47 R31.htm IDEA: XBRL DOCUMENT
v3.22.2.2

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. 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, 2022
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 |

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill in a business combination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=120321790&loc=d3e6927-128479 + Details
Name: | us-gaap_BusinessCombinationSegmentAllocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination. + References No definition available. + Details
Name: | us-gaap_FiniteLivedAndIndefiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123413009&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration