Coach 2011 Annual Report Download - page 71

TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements (Continued)
(dollars and shares in thousands, except per share data)
10. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended June 30, 2012 and July 2, 2011 are as follows:
Direct-to-
Consumer
Indirect Total
Balance at July 3, 2010 $ 304,345 $ 1,516 $ 305,861
Foreign exchange impact 25,143 — 25,143
Balance at July 2, 2011 329,488 1,516 331,004
Acquisition of Singapore and Taiwan retail businesses 41,307 — 41,307
Foreign exchange impact 3,724 — 3,724
Balance at June 30, 2012 $ 374,519 $ 1,516 $ 376,035
At June 30, 2012 and July 2, 2011, intangible assets not subject to amortization were $9,788 and consisted of trademarks.
11. INCOME TAXES
The provisions for income taxes computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual
provisions were:
Fiscal Year Ended
June 30, 2012 July 2, 2011 July 3, 2010
Amount Percentage Amount Percentage Amount Percentage
Income before provision for
income taxes:
United States $1,152,576 76.5% $ 983,698 75.6% $ 995,459 86.0%
Foreign 353,087 23.5 317,521 24.4 162,673 14.0
Total income before provision
for income taxes:
$ 1,505,663 100.0% $1,301,219 100.0% $1,158,132 100.0%
Tax expense at U.S. statutory
rate
$ 526,979 35.0% $ 455,426 35.0% $ 405,346 35.0%
State taxes, net of federal
benefit
46,233 3.1 42,464 3.3 39,131 3.4
Effects of foreign operations (120,642) (8.1) (87,607) (6.8) (39,631) (3.5)
Tax benefit related to
agreements with tax
authorities
(11,553) (0.7) (15,517) (1.2) — 0.0
Other, net 25,736 1.7 25,653 2.0 18,346 1.6
Taxes at effective worldwide
rates
$ 466,753 31.0% $ 420,419 32.3% $ 423,192 36.5%
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