12. SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest and income taxes is as follows (in thousands):
| 2006 | 2005 | 2004 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income taxes, net of refunds | $ | 115,877 | $ | 46,080 | $ | 40,677 | |||||
| Interest, net of amounts capitalized | 22,319 | 22,460 | 3,977 | ||||||||
Non-cash investing and financing activities are as follows (in thousands):
| 2006 | 2005 | 2004 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Retirement of fully depreciated assets | $ | 49,488 | $ | 20,515 | $ | 14,235 | |||||
| Capitalized straight-line rent | 3,372 | 5,748 | 3,376 | ||||||||
| Net (decrease) increase in fair value of interest rate swaps . | (12,101 | ) | 4,597 | (15,523 | ) | ||||||
| Restricted share awards issued, net of forfeitures | 9,803 | 1,361 | 2,374 | ||||||||
| Conversion of debt into common stock | — | 10,796 | — | ||||||||
| Issuance of notes for sale of Cozymel’s | — | — | 14,455 | ||||||||
In fiscal 2006, we purchased certain assets and assumed certain liabilities in connection with the acquisition of restaurants. The fair values of the assets and liabilities recorded at the date of acquisition are as follows (in thousands):
| Property and equipment | $ | 14,617 | |
| Goodwill | 20,958 | ||
| Other assets | 4,732 | ||
| Capital lease obligations | (16,123 | ) | |
| Other liabilities | (1,089 | ) | |
| Net cash paid | $ | 23,095 | |
The assets acquired and liabilities assumed are recorded at fair values as determined by management based upon information available. We will finalize the allocation between goodwill and reacquired franchise rights (included in other assets) once information sufficient to complete the allocation is obtained.