Discontinued Operations

4 Months Ended

Jan. 20, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

During fiscal 2012, we entered into an agreement with a third party distribution service provider pursuant to a Board-approved plan to sell our Jack in the Box distribution business. During the first quarter of fiscal 2013 we completed the transition of our distribution centers. The distribution business assets sold in the transaction are classified as assets of discontinued operations in the condensed consolidated balance sheet for the period ended September 30, 2012. The operations and cash flows of the business have been eliminated and in accordance with the provisions of ASC 360, Property, Plant, and Equipment, the results are reported as discontinued operations for all periods presented.

The following is a summary of our distribution business assets held for sale as of September 30, 2012 (in thousands):

Inventories	$	26,844
Property and equipment, net	3,747
Total assets of discontinued operations	$	30,591

The following is a summary of our distribution business’s operating results, which are included in discontinued operations for each period (in thousands):

	Sixteen Weeks Ended
	January 20, 2013			January 22, 2012
Revenue	$	37,743		$	194,794
Operating loss before income tax benefit	$	(5,262	)	$	—

The loss on the sale of the distribution business was not material. The operating loss in 2013 includes $1.9 million for accelerated depreciation of a long-lived asset disposed of upon completion of the transaction, $1.9 million for future lease commitments and $1.2 million primarily related to costs incurred to exit certain vendor contracts. Our liability for lease commitments related to our distribution centers changed as follows during 2013 (in thousands):

Balance at beginning of period	$	697
Additions and adjustments	1,869
Cash payments	(289		)
Balance at end of quarter	$	2,277