Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 29

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 1
Chunk 29
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— $283,500 The following table summarizes, as of January 19, 2025, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):Remainder of 2025$717 2026794 2027807 2028753 2029692 Thereafter6,507 $10,270 

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

6.LEASES

Nature of leases — The Company owns restaurant sites and also leases restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property 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, and the related expenses are presented in “Franchise occupancy expenses.”The following table presents rental income for the periods presented (in thousands):Sixteen Weeks EndedJanuary 19,2025January 21,2024Operating lease income - franchise$80,817 $78,249 Variable lease income - franchise35,413 34,598 Amortization of sublease assets and liabilities, net316 349 Franchise rental revenues$116,546 $113,196 Operating lease income - closed restaurants and other (1)$2,555 $2,312 ____________________________(1)Includes closed restaurant properties included in “Other operating expenses, net” in our condensed consolidated statements of earnings.

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):TotalQu