Company: JACK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000807882-25-000030
Chunk: 84

Company: JACK IN THE BOX INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 84
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 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.As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees in connection with refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings (loss), and the related expenses are presented in “Franchise occupancy expenses.”

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JACK IN THE BOX INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents rental income for the periods presented (in thousands):QuarterYear-to-dateApril 13,2025April 14,2024April 13,2025April 14,2024Operating lease income - franchise$60,337 $59,445 $141,154 $137,694 Variable lease income - franchise25,736 26,123 61,149 60,721 Amortization of sublease assets and liabilities, net234 258 550 607 Franchise rental revenues$86,307 $85,826 $202,853 $199,022 Operating lease income - closed restaurants and other (1)$1,837 $1,859 $4,392 $4,171 ____________________________(1)Includes closed restaurant properties included in “Other operating expenses, net” in our condensed consolidated statements of earnings (loss).

7.FAIR VALUE MEASUREMENTS

Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):TotalQuoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)Fair value measurements as of April 13, 2025:Non-qualified deferred compensation plan (1)$15,890 $15,890 $— $— Total liabilities at fair value$15,890 $15,890 $— $— Fair value measurements as of September 29, 2024:Non-qualified deferred compensation plan (1)$18,481 $18,481 $— $— Total liabilities at