Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 8

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 2
Chunk 8
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Integration and strategic initiatives$1,415 $5,621 Costs of closed restaurants and other841 858 Operating restaurant impairment charges748 — Accelerated depreciation— 37 Gains on acquisition of restaurants(6)(2,357)Losses on disposition of property and equipment, net521 1,011 $3,519 $5,170 

Other operating expenses, net decreased $1.7 million compared to the prior year. The decrease was primarily due to the decrease of integration and strategic initiatives of $4.2 million, partially offset by a $2.4 million acquisition gain in the prior year and $0.7 million of restaurant impairment charges in the current year. 

25

Gains and Losses on the Sale of Company-Operated Restaurants

For the first quarter of 2025, the Company recognized a net gain on the sale of 13 company-operated restaurants of $2.8 million. For the first quarter of 2024, the net loss on the sale of company-operated restaurants of $0.3 million was comprised of a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that closed in the second quarter of 2024, partially offset by additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in prior years.

Refer to Note 3, Summary of Refranchisings and Assets Held for Sale, of the notes to the condensed consolidated financial statements for additional information regarding these transactions. 

Interest Expense, Net

Interest expense, net is comprised of the following (in thousands):

 Sixteen Weeks Ended January 19,2025January 21,2024Interest expense$24,987 $25,363 Interest income(562)(877)Interest expense, net$24,425 $24,486 

Interest expense, net, decreased $0.1 million as compared to the prior year, This was primarily due to a decrease of $0.4 million in interest expense compared to the prior year due to lower average borrowings, which was partially offset by a decrease in interest income of $0.3 million due to lower investment balances compared to a year ago.

Income Tax Expense

The income tax provisions reflect a year-to-date effective tax rate of 29.8%, compared with 26.9% in fiscal year 2024. The major components of the year-over-year