Jack In The Box 2013 Annual Report Download - page 62
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Restructuring costs — Since the beginning of 2012, we have been engaged in a comprehensive review of our organization structure, including evaluating
opportunities for outsourcing, restructuring of certain functions and workforce reductions. In fiscal 2012, as part of these cost saving initiatives, we offered a
voluntary early retirement program (“VERP”) to eligible employees which are noted as enhanced pension benefits in the table below. The following is a
summary of the costs incurred in connection with these activities during each fiscal year ( in thousands):
Enhanced pension benefits (Note 11)
$ —
$6,167
Severance costs
2,821
6,987
Other
630
2,307
$3,451
$15,461
Refer to Note 11, Retirement Plans, for additional information regarding the costs associated with enhanced pension benefits in fiscal 2012. Total accrued
severance costs related to our restructuring activities are included in accrued liabilities and changed as follows in each fiscal year ( in thousands):
Balance at beginning of year
$1,758
$ —
Additions
2,821
6,987
Cash payments
(4,326)
(5,229)
Balance at end of the year
$ 253
$1,758
As part of the ongoing review of our organization structure, we expect to incur additional charges related to our restructuring activities; however, we are unable
to make a reasonable estimate of the additional costs at this time. Our continuing efforts to lower our cost structure include identifying opportunities to reduce
general and administrative costs as well as improve restaurant profitability across both brands.
The fiscal year income taxes consist of the following ( in thousands):
Current:
Federal
$51,367
$35,205
$50,255
State
7,583
5,248
11,042
58,950
40,453
61,297
Deferred:
Federal
(16,897)
(5,553)
(8,077)
State
(1,707)
(1,062)
(4,755)
(18,604)
(6,615)
(12,832)
Income tax expense from continuing operations
$40,346
$33,838
$48,465
Income tax benefit from discontinued operations
$(19,566)
$(6,651)
$(3,287)
A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows:
Computed at federal statutory rate
35.0%
35.0%
35.0%
State income taxes, net of federal tax benefit
3.4
3.3
3.4
Benefit of jobs tax credits
(1.9)
(1.0)
(1.4)
Expense (benefit) related to COLIs
(2.9)
(4.6)
0.3
Other, net
(0.8)
0.5
(1.2)
32.8%
33.2%
36.1%
F-20