Jack In The Box 2008 Annual Report Download - page 64

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Total accrued restaurant closing costs, included in accrued expenses and other long-term liabilities, changed as
follows during 2008 and 2007 (in thousands):
2008 2007
Balance at beginning of year ....................................... $5,451 $5,084
Additions and adjustments ......................................... 654 1,298
Cash payments ................................................. (1,393) (931)
Balance at end of year............................................ $4,712 $5,451
Additions and adjustments primarily relate to revisions to certain sublease assumptions and the closure of two
and three JACK IN THE BOX restaurants in 2008 and 2007, respectively.
7. INCOME TAXES
The fiscal year income taxes consist of the following (in thousands):
2008 2007 2006
Current:
Federal........................................... $54,967 $ 72,781 $59,457
State............................................. 9,061 11,485 8,539
64,028 84,266 67,996
Deferred:
Federal........................................... 5,202 (12,827) (8,697)
State............................................. 1,021 (2,457) (1,100)
6,223 (15,284) (9,797)
Subtotal income tax ................................... 70,251 68,982 58,199
Income tax benefit related to cumulative effect of accounting
change ........................................... — — 646
Total income tax expense ............................... $70,251 $ 68,982 $58,845
A reconciliation of the federal statutory income tax rate to our effective tax rate is as follows:
2008 2007 2006
Computed at federal statutory rate ................................. 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit ......................... 3.3 3.5 3.2
Benefit of jobs tax credits ....................................... (2.5) (1.1) (0.8)
Benefit of research and experimentation credits........................ (0.1) (0.2) (0.8)
Others, net................................................... 1.6 (1.6) (1.0)
37.3% 35.6% 35.6%
F-18
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)