Summary of Refranchisings and Franchise Acquisitions (Tables)

12 Months Ended

Oct. 02, 2022

Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]

Summary Of Refranchisings And Franchise Acquisitions

Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):

	2022		2021		2020
Restaurants sold to Jack in the Box franchisees	15		—		—
Proceeds from the sale of company-operated restaurants (1)	$	6,391	$	1,827	$	3,395
Net assets sold (primarily property and equipment)	(1,565)		—		—
Goodwill related to the sale of company-operated restaurants	(948)		—		—
Other (2)	—		2,376		(134)
Gains on the sale of company-operated restaurants	$	3,878	$	4,203	$	3,261

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(1)Amounts in 2022, 2021, and 2020 include additional proceeds of $1.4 million, $1.8 million, and $3.4 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.

(2)Amounts in 2021 and 2020 relate to adjustments to contingencies that were included in underlying franchise and lease agreements from the sale of restaurants in prior years.

Schedule of Franchise Acquisitions

The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data):

	Amount
Del Taco shares outstanding as of March 8, 2022	36,442
Del Taco RSAs subject to accelerated vesting	805
Del Taco RSUs subject to accelerated vesting	70
Del Taco options subject to accelerated vesting	292
Total Del Taco shares outstanding	37,610
Merger Consideration (per Del Taco share)	$	12.51
Total cash consideration paid to selling shareholders	$	470,500
Del Taco transaction costs paid by Jack in the Box (1)	7,141
Del Taco closing indebtedness settled by Jack in the Box (2)	115,219
Replacement share-based payment awards pre-combination vesting expense	449
Total aggregate purchase consideration	$	593,309

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(1)Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company.

(2)Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company.

The final allocation of the purchase consideration, which includes measurement-period adjustments recorded in our third and fourth quarters of fiscal 2022, is as follows (in thousands):

	Initial Allocation of Consideration		Measurement Period Adjustments		October 2, 2022
Total aggregate purchase consideration, net of $12,068 cash acquired	$	581,241	$	—	$	581,241
Assets:
Accounts and other receivables	3,809		774		4,583
Inventories	3,233		—		3,233
Prepaid expenses	2,950		—		2,950
Other current assets	105		—		105
Property and equipment	150,826		(5,794)		145,032
Operating lease right-of-use assets	349,489		800		350,289
Intangible assets	12,371		—		12,371
Trademarks	283,500		—		283,500
Other assets	5,128		—		5,128
Liabilities:
Current maturities of long-term debt	22		—		22
Current operating lease liabilities	21,991		—		21,991
Accounts payable	18,808		—		18,808
Accrued liabilities	66,739		45,840		112,579
Long-term debt, net of current maturities	349		—		349
Long-term operating lease liabilities, net of current portion	302,688		800		303,488
Deferred tax liabilities	88,203		(12,848)		75,355
Other long-term liabilities	13,080		—		13,080
Net assets acquired, excluding goodwill	$	299,531	$	(38,012)	$	261,519
Goodwill	$	281,710	$	38,012	$	319,722

The following table provides detail of the combined acquisitions in 2022, 2021, and 2020 (dollars in thousands):

	2022		2021		2020
Restaurants acquired from franchisees	13		20		8
Inventory	$	—	$	258	$	73
Property and equipment	540		1,136		903
Intangible assets	66		245		263
Other assets	—		10		6
Goodwill	—		613		414
Gains on the acquisition of franchise-operated restaurants	(309)		(340)		—
Liabilities assumed	—		(277)		(800)
Total consideration	$	297	$	1,645	$	859

Disclosure of Assets Held-for-sale

Assets held for sale — Assets classified as held for sale consisted of the following at each fiscal year-end (in thousands):

	October 2, 2022		October 3, 2021
Jack in the Box restaurant properties held for sale (1)	$	14,151	$	—
Other property and equipment held for sale (2)	2,868		1,692
Assets held for sale	$	17,019	$	1,692

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(1)Consists of properties that are currently leased to franchisees which we intend to sell the underlying real estate directly to the franchisee and/or sell and leaseback with a third party within the next twelve months.

(2)Consists primarily of owned properties of closed restaurants which we are actively marketing for sale.