Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 31

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 1
Chunk 31
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ancial 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 and early closures of Del Taco restaurants. In 2025, the amount is primarily related to retirements in connection with reimage projects.

9.SEGMENT REPORTING

The Company’s principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which is considered a reportable operating segment. The company also utilizes a shared-services model whereby each brand’s results of operations are assessed separately and do not include costs related to certain corporate functions which support both brands. The segment reporting structure reflects the Company’s current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. This segment