Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 59

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 59
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267 $25,839 $26,438 Incentive compensation(797)1,237 4,659 7,719 Share-based compensation2,127 2,357 6,812 11,018 Cash surrender value of COLI policies, net(6,062)(3,223)(3,264)(9,289)Litigation matters530 518 1,704 1,236 Insurance2,426 (906)6,351 3,279 Other21,213 21,330 70,898 72,799 $26,835 $29,580 $112,999 $113,200 

Advertising costs mainly represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs decreased $0.9 million in the quarter and $0.6 million on a year-to-date basis as compared to the prior year, primarily due to a decrease in company-operated restaurant sales in the current year, partially offset by an increase in expenses related to new markets and third party digital sponsorships.

Incentive compensation decreased by $2.0 million in the quarter and $3.1 million on a year-to-date basis as compared to the prior year, primarily due to lower achievement levels for the Company’s annual incentive plan.

Share-based compensation decreased by $0.2 million in the quarter and $4.2 million on a year-to-date basis as compared to the prior year, primarily due to current year forfeitures and lower achievement levels for performance-based awards.

The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes in our non-qualified deferred compensation obligation supported by these policies, are subject to market fluctuations. The changes in market values had a favorable impact of $2.8 million in the quarter and an unfavorable impact of $6.0 million on a year-to-date basis, compared to the prior year.

Litigation matters were essentially flat in the quarter, and increased $0.5 million on a year-to-date basis as compared to the prior year, primarily due to the timing of litigation developments. Refer to Note 14, Commitments and Contingencies, in the condensed consolidated financial statements for additional information related to the legal matters.

Insurance increased $3.3 million in the quarter and $3.1 million on a year-to-date basis, as compared to the prior year primarily due to rolling over favorable adjustments for positive