Sonic 2009 Annual Report Download - page 42

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Notes to Consolidated Financial Statements
August 31, 2009, 2008 and 2007 (In thousands, except per share data)
expense over the expected term of the Class A-2 notes. Amortization of this loss during fiscal years 2009 and 2008 totaled $1,050
($691, net of tax) and $1,063 ($657, net of tax) in interest expense, respectively. Over the next 12 months, the company expects to
amortize $801 ($492, net of tax) to interest expense for this loss. The cash flows resulting from these hedge transactions are included
in cash flows from operating activities on the Consolidated Statement of Cash Flows.
The following table presents the components of comprehensive income for the years ended August 31, 2009, 2008 and 2007:
2009 2008 2007
Net Income $ 49,442 $ 60,319 $ 64,192
Decrease (increase) in deferred hedging loss, net of tax 691 657 (2,364)
Total comprehensive income $ 50,133 $ 60,976 $ 61,828
11. Other Noncurrent Liabilities
Other noncurrent liabilities consist of the following at August 31, 2009 and 2008:
2009 2008
Minority interests in consolidated drive-ins $ 1,916 $ 3,097
Deferred area development fees 8,014 6,993
Escalating land leases payable 6,545 5,517
Deferred income real estate installment sales 4,348 912
Deferred income- sale/leaseback 4,134 563
Other 1,159 1,001
$ 26,116 $ 18,083
12. Income Taxes
The company’s income before the provision for income taxes is classified by source as domestic income.
The components of the provision for income taxes consist of the following for the years ended August 31:
2009 2008 2007
Current:
Federal $ 17,513 $ 21,881 $ 31,369
State 2,487 5,730 3,859
20,000 27,611 35,228
Deferred:
Federal 9,456 7,259 1,272
State 1,422 1,092 191
10,878 8,351 1,463
Provision for income taxes $ 30,878 $ 35,962 $ 36,691
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate due to the
following for the years ended August 31:
2009 2008 2007
Amount computed by applying a tax rate of 35% $ 28,112 $ 33,698 $ 35,309
State income taxes (net of federal income tax benefit) 2,541 4,434 2,726
Employment related and other tax credits, net (1,401) (1,732) (1,443)
Other 1,626 (438) 99
Provision for income taxes $ 30,878 $ 35,962 $ 36,691
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