Jack In The Box 2010 Annual Report Download - page 59

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Table of Contents


Restaurant closing costs consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs, and
are included in impairment and other charges, net. Total accrued restaurant closing costs, included in accrued liabilities and other
long-term liabilities, changed as follows ():
 
Balance at beginning of year $ 4,234 $ 4,712
Additions and adjustments 22,362 834
Cash payments (1,576) (1,312)
Balance at end of year $ 25,020 $ 4,234
Additions and adjustments primarily relate to revisions to certain sublease assumptions and the closures of certain Jack in the Box
restaurants. Additions in 2010 principally relate to the closure of 40 restaurants at the end of the fiscal year which resulted in future
lease commitment charges of $20.3 million.
 
The fiscal year income taxes consist of the following :
  
Current:
Federal $ 55,046 $ 91,088 $ 54,967
State 8,314 13,442 9,061
63,360 104,530 64,028
Deferred:
Federal (24,070) (21,846) 5,202
State (3,484) (3,229) 1,021
(27,554) (25,075) 6,223
Income tax expense from continuing operations $ 35,806 $ 79,455 $ 70,251
Income tax expense (benefit) from discontinued operations $ - $ (7,465) $ 679
A reconciliation of the federal statutory income tax rate to our effective tax rate is as follows:
  
Computed at federal statutory rate 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit 3.2 3.2 3.3
Benefit of jobs tax credits (1.8) (0.7) (2.5)
Benefit of cash surrender value (2.3) - (0.1)
Others, net (0.3) 0.2 1.6
33.8% 37.7% 37.3%
F-19