Jack In The Box 2007 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2007 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 91

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91

In 2006, we recorded impairment charges of $1.6 million related to seven JACK IN THE BOX restaurants which we
closed or the lease expired. In 2006, based upon our estimates of future cash flows, we also recorded impairment
charges of $2.5 million to write-down the carrying value of eight JACK IN THE BOX restaurants.
In fiscal 2005, we incurred costs of approximately $3.0 million related to the cancellation of the Company’s
test of a fast-casual concept called JBX Grill.
Impairment charges are included in selling, general and administrative expenses in the consolidated statements
of earnings in each year.
Total accrued restaurant closing costs, included in accrued expenses and other long-term liabilities, changed as
follows during 2007 and 2006 (in thousands):
2007 2006
Balance at beginning of year ........................................ $5,084 $5,495
Additions and adjustments ......................................... 1,298 454
Cash payments .................................................. (931) (865)
Balance at end of year ............................................ $5,451 $5,084
Additions and adjustments primarily relate to revisions to certain sublease assumptions, the closure of three
JACK IN THE BOX restaurants in 2007 and the closure of two region offices in 2006.
6. INCOME TAXES
The fiscal year income taxes consist of the following (in thousands):
2007 2006 2005
Current:
Federal .......................................... $72,781 $ 62,257 $44,007
State ............................................ 11,485 8,828 5,897
84,266 71,085 49,904
Deferred:
Federal .......................................... (11,875) (9,973) (2,948)
State ............................................ (2,364) (1,213) (289)
(14,239) (11,186) (3,237)
Subtotal income tax................................... 70,027 59,899 46,667
Income tax benefit related to cumulative effect of accounting
change .......................................... — 646 —
Total income tax expense .............................. $70,027 $ 60,545 $46,667
F-17
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)