GNC 2011 Annual Report Download - page 92

Table of Contents
NOTE 5. INCOME TAXES (Continued)
allowance was provided for all the state NOLs as the Company currently believes that these NOLs, with lives ranging from five to twenty years, may not be
realizable prior to their expiration. During 2010, the Company recorded a valuation allowance adjustment of $3.1 million, which reduced income tax expense.
This valuation allowance adjustment reflects a change in circumstances that caused a change in judgment about the realizability of certain deferred tax assets
related to state net operating losses. The effect of this tax benefit is included in the income tax reconciliation table under the caption "state income taxes, net
of federal tax benefit".
The Company does not have any undistributed earnings of international subsidiaries, at December 31, 2010 and 2009, as these subsidiaries are either
considered to be a branch for U.S. tax purposes, or incur cumulative net operating losses.
Income before income taxes consisted of the following components:
Year Ended December 31,
2010 2009 2008
(in thousands)
Domestic $ 146,906 $ 104,155 $ 79,840
Foreign 2,150 7,083 6,941
Total income before income taxes $ 149,056 $ 111,238 $ 86,781
Income tax expense / (benefit) for all periods consisted of the following components:
Year Ended December 31,
2010 2009 2008
(in thousands)
Current:
Federal $ 47,903 $ 10,373 $ 3,082
State 10,422 6,704 3,391
Foreign 690 3,111 1,157
59,015 20,188 7,630
Deferred:
Federal (3,747) 20,548 22,753
State (4,385) 883 1,618
Foreign — — —
(8,132) 21,431 24,371
Income tax expense $ 50,883 $ 41,619 $ 32,001
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