Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 74

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 8
Chunk 74
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875 Series 2022 Class A-2 Notes$1,039,500 $955,976 $1,045,000 $975,507 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.Non-financial assets and liabilities — The Company’s non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, goodwill and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value.In connection with our impairment reviews performed during 2025 and 2024, the Company impaired certain Del Taco assets. For further information, see Note 3, Summary of Refranchisings and Assets Held For Sale, Note 5, Goodwill and Intangible Assets, Net, and Note 8, Other Operating Expenses, Net in the notes to the condensed consolidated financial statements.

8.OTHER OPERATING EXPENSES, NET

Other operating expenses, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):Sixteen Weeks EndedJanuary 19,2025January 21,2024Integration and strategic initiatives (1)$1,415 $5,621 Costs of closed restaurants and other (2)841 858 Operating restaurant impairment charges (3)748 — Accelerated depreciation— 37 Gains on acquisition of restaurants (4)(6)(2,357)Losses on disposition of property and equipment, net (5)521 1,011 Other operating expenses, net$3,519 $5,170 ____________________________(1)Integration and strategic initiatives are related to the integration of Del Taco, as well as strategic consulting fees.(2)Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants.(3)2025 restaurant impairment charges related to underperforming Del Taco and Jack in the Box restaurants. (4)2024 amount relates to the gains on acquisition of 9 Del Taco restaurants.(5)In 2024, loss on disposition of property and equipment primarily related to the lease termination