Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 47

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 1
Chunk 47
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 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 increase in tax rates were an increase in tax expenses on share-based compensation and non-deductible losses in the current year as opposed to non-taxable gains in the prior year from the market performance of insurance products used to fund certain non-qualified retirement plans, partially offset by a decrease in the impact of non-deductible goodwill related to the sale of company-operated restaurants.

LIQUIDITY AND CAPITAL RESOURCES

General

Our primary sources of short-term and long-term liquidity and capital resources are cash flows from operations and borrowings available under our credit facilities. Our cash requirements consist principally of working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, franchise tenant improvement allowance and incentive distributions, dividend payments, and obligations related to our benefit plans. We generally use available cash flows from operations to invest in our business, service our debt obligations, pay dividends and repurchase