Papa Johns 2004 Annual Report Download - page 60

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59
14. Income Taxes
A summary of the provision (benefit) for income taxes, exclusive of the tax effect related to the
cumulative effect of accounting change, follows (in thousands):
2004 2003 2002
Current:
Federal 27,126$ 16,941$ 25,442$
Foreign 174 61 460
State and local 2,912 2,346 3,195
Deferred (federal and state) (16,280) 1,037 (1,018)
Total 13,932$ 20,385$ 28,079$
Significant deferred tax assets (liabilities) follow (in thousands):
2004 2003
Unearned development fees 2,509$ 2,202$
Accrued liabilities 10,815 8,609
Other assets and liabilities 6,325 6,857
Goodwill - 647
BIBP net operating loss 8,797 -
Interest rate swap 681 1,960
Total deferred tax assets 29,127$ 20,275$
Deferred expenses (3,221) (1,439)
Accelerated depreciation (7,851) (16,592)
Other (4,314) (3,075)
Total deferred tax liabilities (15,386) (21,106)
Net deferred tax assets (liabilities) 13,741$ (831)$
Management believes it is more likely than not that the Company’s future earnings will be sufficient to
ensure the realization of the net deferred tax assets for federal and state purposes.
The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense,
exclusive of the tax effect related to the cumulative effect of accounting change, for the years ended
December 26, 2004, December 28, 2003 and December 29, 2002 is as follows (in thousands):
2004 2003 2002
Tax at U.S. federal statutory rate 13,004$ 19,026$ 26,207$
State and local income taxes 980 1,424 2,089
Other (52) (65) (217)
Total 13,932$ 20,385$ 28,079$
Income taxes paid were $20.0 million in 2004, $23.2 million in 2003 and $26.3 million in 2002.