Burger King 2009 Annual Report Download - page 99

Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
Note 14. Interest Expense
Interest expense consists of the following (in millions):
Years Ended June 30,
2009 2008 2007
Term loans $ 47.2 $ 56.4 $ 63.3
Capital lease obligations 10.1 10.7 9.8
Total $ 57.3 $ 67.1 $ 73.1
The Company had $4.9 million and $6.7 million of unamortized deferred financing costs at June 30, 2009 and 2008, respectively.
These fees are classified in other assets, net and are amortized over the term of the debt into interest expense on term debt using the
effective interest method.
Note 15. Income Taxes
Income before income taxes, classified by source of income, is as follows (in millions):
Years Ended June 30,
2009 2008 2007
Domestic $ 241.4 $ 245.1 $ 220.4
Foreign 43.4 47.9 6.4
Income before income taxes $ 284.8 $ 293.0 $ 226.8
Income tax expense (benefit) attributable to income from continuing operations consists of the following (in millions):
Years Ended June 30,
2009 2008 2007
Current:
Domestic
Federal $ 57.0 $ 64.5 $ 52.4
State, net of federal income tax benefit 6.1 8.3 4.8
Foreign 9.5 10.3 7.9
$ 72.6 $ 83.1 $ 65.1
Deferred:
Domestic
Federal $ 9.1 $ 9.8 $ 11.5
State, net of federal income tax benefit 6.2 1.3 0.6
Foreign (3.2) 9.2 1.5
$ 12.1 $ 20.3 $ 13.6
Total $ 84.7 $ 103.4 $ 78.7
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