Chili's 2014 Annual Report Download - page 64

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7. INCOME TAXES
The provision for income taxes consists of the following (in thousands):
2014 2013 2012
Current income tax expense:
Federal ..................................... $66,170 $46,852 $27,707
State ....................................... 15,219 11,800 7,056
Foreign ..................................... 3,550 2,879 5,098
Total current income tax expense ............ 84,939 61,531 39,861
Deferred income tax (benefit) expense:
Federal ..................................... (18,715) 7,344 16,520
State ....................................... (4,087) (1,919) 1,196
Foreign ..................................... 112 0 0
Total deferred income tax (benefit) expense .... (22,690) 5,425 17,716
$ 62,249 $66,956 $57,577
A reconciliation between the reported provision for income taxes 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):
2014 2013 2012
Income tax expense at statutory rate ................. $75,701 $ 80,610 $ 73,083
FICA tax credit ................................. (18,116) (16,450) (16,609)
State income taxes, net of Federal benefit ............. 7,636 6,368 4,750
Other ......................................... (2,972) (3,572) (3,647)
$ 62,249 $ 66,956 $ 57,577
The income tax effects of temporary differences that give rise to significant portions of deferred income tax
assets and liabilities as of June 25, 2014 and June 26, 2013 are as follows (in thousands):
2014 2013
Deferred income tax assets:
Leasing transactions ................................... $ 40,085 $ 40,662
Stock-based compensation .............................. 13,698 13,250
Restructure charges and impairments ...................... 16,726 2,885
Insurance reserves .................................... 18,550 18,595
Employee benefit plans ................................ 404 544
Gift cards ........................................... 15,497 13,171
Other, net ........................................... 8,975 10,903
Total deferred income tax assets ..................... 113,935 100,010
Deferred income tax liabilities:
Prepaid expenses ..................................... 16,462 15,776
Goodwill and other amortization ......................... 26,551 25,333
Depreciation and capitalized interest on property and
equipment ......................................... 20,982 32,160
Other, net ........................................... 3,680 3,522
Total deferred income tax liabilities ................... 67,675 76,791
Net deferred income tax asset ....................... $ 46,260 $ 23,219
F-28