Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 13

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 13
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 consolidated financial statements for additional information regarding these transactions. 

Interest Expense, Net

Interest expense, net is comprised of the following (in thousands):

 QuarterYear-to-date July 6,2025July 7,2024July 6,2025July 7,2024Interest expense$18,361 $18,901 $62,053 $63,261 Interest income(436)(499)(1,335)(1,770)Interest expense, net$17,925 $18,402 $60,718 $61,491 

Interest expense, net, decreased $0.5 million in the quarter and $0.8 million year-to-date as compared to the prior year. This decrease was primarily due to lower average borrowings, resulting in a decrease of $0.3 million and $0.9 million, respectively, in interest expense.  

Income Taxes

For the third quarter and year-to-date fiscal year 2025, the Company recorded income tax benefits of $0.5 million and $20.8 million, respectively, resulting in effective tax rates of (2.4%) and 19.3%, respectively. The effective tax rates for such periods differed from the U.S. statutory tax rate primarily due to non-deductible goodwill impairment partially offset by non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans. 

For the third quarter and year-to-date fiscal year 2024, the Company recorded income tax expenses of $0.1 million and $23.3 million, respectively, resulting in effective tax rates of (0.1%) and (66.0%), respectively. The effective tax rates for such periods differed from the U.S. statutory tax rate primarily due to the impairment of non-deductible goodwill partially offset by the reversal of state deferred tax liabilities on basis difference of investments in subsidiaries and non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans.

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Under GAAP, the Company ordinarily calculates its provision for income taxes at the end of each interim reporting period by computing an estimated annual effective tax rate adjusted for tax items that are discrete to each period. For the third quarter of fiscal year 2024, the Company calculated its interim tax provision based on actual year-to-date results because small changes in forecasted pre-tax book income led to large differences in the estimated annual effective tax rate.

LIQUIDITY AND CAPITAL