Chili's 2012 Annual Report Download - page 62

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7. INCOME TAXES
The provision for income taxes from continuing operations consists of the following (in thousands):
2012 2011 2010
Current income tax expense:
Federal .................................... $27,707 $16,596 $ 36,493
State ...................................... 7,056 1,694 9,055
Foreign ................................... 5,098 2,046 1,904
Total current income tax expense ........... 39,861 20,336 47,452
Deferred income tax expense (benefit):
Federal .................................... 16,520 20,507 (15,773)
State ...................................... 1,196 1,426 (3,415)
Total deferred income tax expense (benefit) . . 17,716 21,933 (19,188)
$57,577 $42,269 $ 28,264
A reconciliation between the reported provision for income taxes from continuing operations and the
amount computed by applying the statutory Federal income tax rate of 35% to income before provision for
income taxes is as follows (in thousands):
2012 2011 2010
Income tax expense at statutory rate ............... $73,083 $ 64,165 $ 46,196
FICA tax credit ................................ (16,609) (15,779) (16,625)
State income taxes, net of Federal benefit ........... 4,750 (316) 1,711
Other ........................................ (3,647) (5,801) (3,018)
$ 57,577 $ 42,269 $ 28,264
The income tax effects of temporary differences that give rise to significant portions of deferred income tax
assets and liabilities as of June 27, 2012 and June 29, 2011 are as follows (in thousands):
2012 2011
Deferred income tax assets:
Leasing transactions .................................. $41,393 $ 41,603
Stock-based compensation ............................. 12,577 15,320
Restructure charges and impairments .................... 3,231 4,962
Insurance reserves ................................... 19,425 23,636
Employee benefit plans ............................... 577 591
Gift cards .......................................... 11,296 9,369
Other, net .......................................... 10,294 10,296
Total deferred income tax assets .................... 98,793 105,777
Deferred income tax liabilities:
Prepaid expenses .................................... 14,306 13,448
Goodwill and other amortization ........................ 23,879 22,297
Depreciation and capitalized interest on property and
equipment ........................................ 33,617 24,672
Other, net .......................................... 3,842 3,471
Total deferred income tax liabilities ................. 75,644 63,888
Net deferred income tax asset ...................... $23,149 $ 41,889
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