Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 42

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 42
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 5,641 13,418 16,343 Net COLI gains(6,062)(3,223)(3,264)(9,289)Impairment of goodwill and intangible assets6,326 162,624 209,556 162,624 Losses (gains) on the sale of company-operated restaurants146 65 (2,630)1,384 Amortization of favorable and unfavorable leases and subleases, net(129)192 (6)423 Amortization of franchise tenant improvement allowances and other1,579 1,429 5,063 3,967 Amortization of cloud-computing costs453 787 1,944 3,666 Earnings (loss) from operations$40,788 $(102,236)$(42,079)$31,434 The Company does not evaluate, manage or measure performance of segments using asset, pension or post-retirement expense, interest income and expense, or income tax information; accordingly, this information by segment is not prepared or disclosed.

10.INCOME TAXES

For the third quarter of and year-to-date of 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 of and year-to-date of 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.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