Jack In The Box 2015 Annual Report Download - page 66
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Income taxes consist of the following in each fiscal year (in thousands):
Current:
Federal
$ 59,362
$ 43,864
$ 51,367
State
9,598
3,770
7,583
68,960
47,634
58,950
Deferred:
Federal
(2,018)
3,700
(16,897)
State
(1,173)
452
(1,707)
(3,191)
4,152
(18,604)
Income tax expense from continuing operations
$ 65,769
$ 51,786
$ 40,346
Income tax benefit from discontinued operations
$ (2,410)
$ (3,629)
$ (19,566)
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
3.7
3.3
3.4
Benefit of jobs tax credits, net of valuation allowance
(1.1)
(1.2)
(1.9)
Expense (benefit) related to COLIs
0.3
(1.6)
(2.9)
Other, net
(1.0)
(0.2)
(0.8)
36.9%
35.3%
32.8%
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each year-end are presented
below (in thousands):
Deferred tax assets:
Accrued pension and postretirement benefits
$ 92,456
$ 77,170
Accrued insurance
13,245
12,874
Accrued incentive compensation
6,412
3,090
Accrued vacation pay expense
2,193
2,132
Deferred income
1,417
1,436
Impairment
23,982
25,391
Lease commitments related to closed or refranchised locations
11,471
12,686
Other reserves and allowances
1,584
1,303
Tax loss and tax credit carryforwards
14,081
10,705
Leasing transactions
11,442
7,201
Share-based compensation
9,331
9,416
Other, net
12,238
1,418
Total gross deferred tax assets
199,852
164,822
Valuation allowance
(11,563)
(8,624)
Total net deferred tax assets
188,289
156,198
Deferred tax liabilities:
Property and equipment, principally due to differences in depreciation
(38,403)
(38,362)
Intangible assets
(30,132)
(28,149)
Other
(1,568)
(2,069)
Total gross deferred tax liabilities
(70,103)
(68,580)
Net deferred tax assets
$ 118,186
$ 87,618
Deferred tax assets at September 27, 2015 include state net operating loss carry-forwards of approximately $76.2 million expiring at various times between
2017 and 2035. At September 27, 2015 and September 28, 2014, we recorded a valuation allowance related to losses and state tax credits of $11.6 million
and $8.6 million, respectively. The current year change in the valuation