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Discontinued Operations
 12 Months Ended
Oct. 02, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
DISCONTINUED OPERATIONS
Distribution business — During fiscal 2012, we entered into an agreement with a third party distribution service provider pursuant to a plan approved by our board of directors to sell our Jack in the Box distribution business. During fiscal 2013, we completed the transition of our distribution centers. The operations and cash flows of the business have been eliminated and in accordance with the provisions of the FASB authoritative guidance on the presentation of financial statements, the results are reported as discontinued operations for all periods presented.
In 2016, 2015 and 2014, results of discontinued operations were immaterial to our consolidated results of operations. Our liability for lease commitments related to our distribution centers is immaterial to our consolidated balance sheets as of October 2, 2016 and September 27, 2015. The lease commitment balance relates to one distribution center lease that expires in fiscal 2017 and is currently subleased at a loss. The future minimum lease payments and receipts for the next fiscal year are included in the amounts disclosed in Note 8, Leases.
2013 Qdoba Closures — During fiscal 2013, we closed 62 Qdoba restaurants. The decision to close these restaurants was based on a comprehensive analysis that took into consideration levels of return on investment and other key operating performance metrics. Since the closed restaurants were not predominantly located near those remaining in operation, we did not expect the majority of cash flows and sales lost from these closures to be recovered. In addition, we did not anticipate any ongoing involvement or significant direct cash flows from the closed stores. Therefore, in accordance with the provisions of the FASB authoritative guidance on the presentation of financial statements, the results of operations for these restaurants are reported as discontinued operations for all periods presented.
The following table summarizes the results related to the 2013 Qdoba Closures for each fiscal year (in thousands):
 
 
2016
 
2015
 
2014
Asset impairments
 
$
—

 
$
—

 
$
(2,170
)
Unfavorable lease commitment adjustments
 
(2,818
)
 
(4,594
)
 
(4,536
)
Bad debt expense related to subtenants
 
(234
)
 
(366
)
 
—

Brokers commissions
 
(58
)
 
(234
)
 
(652
)
Ongoing facility related and other costs
 
(71
)
 
(302
)
 
(889
)
   Loss before income tax benefit
 
$
(3,181
)
 
$
(5,496
)
 
$
(8,247
)

We do not expect the remaining costs to be incurred related to the closures to be material; however, the estimates we make related to our future lease obligations, primarily sublease income, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors.
Our liability for lease commitments related to the 2013 Qdoba closures is included in accrued liabilities and other long-term liabilities in the accompanying consolidated balance sheets and has changed as follows during fiscal year 2016 (in thousands):
Balance at September 27, 2015
 
$
4,256

Adjustments (1)
 
2,818

Cash payments
 
(4,131
)
Balance at October 2, 2016 (2)
 
$
2,943


___________________________________________
(1)
Adjustments relate to revisions to certain sublease and cost assumptions due to changes in market conditions, as well as a charge to terminate three lease agreements, and includes interest expense.
(2)
The weighted average remaining lease term related to these commitments is approximately three years.
The balance at October 2, 2016 relates to six locations subleased at a loss and 16 locations we are marketing for sublease. The future minimum lease payments and receipts for the next five fiscal years and thereafter are included in the amounts disclosed in Note 8, Leases.