Nutrisystem 2010 Annual Report Download - page 60

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11. INCOME TAXES
The provision for income taxes from continuing operations consists of the following:
Year Ended December 31,
2010 2009 2008
Current:
Federal ....................................................... $14,635 $14,731 $31,368
State ......................................................... 405 580 2,513
Foreign ....................................................... 151 292 (356)
15,191 15,603 33,525
Deferred:
Federal ....................................................... 4,053 607 (3,230)
State ......................................................... 65 611 (26)
Valuation allowance ............................................. — (3,749) 3,749
4,118 (2,531) 493
$19,309 $13,072 $34,018
The income tax benefit attributable to discontinued operation consists of the following:
Year Ended December 31,
2010 2009 2008
Discontinued operations ............................................ $(566) $(2,398) $(548)
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
Year Ended December 31,
2010 2009 2008
Statutory federal income tax rate .......................................... 35.0% 35.0% 35.0%
State and foreign income taxes, net of federal benefit .......................... — 1.4 2.7
Tax exempt income .................................................... — — (0.2)
Executive compensation limitation ........................................ 3.5 2.6 1.3
Food donations ........................................................ (2.2) (2.4) (1.0)
Other ................................................................ — (0.3) 0.1
Valuation allowance .................................................... — (7.8) 4.0
36.3% 28.5% 41.9%
The Company recognized an decrease/(increase) in taxes payable of $418, ($450) and $2,581 in 2010, 2009 and
2008, respectively, from the exercise of certain stock options and restricted stock and payment of certain
dividends and recorded these amounts as decreases and increases to APIC in the accompanying consolidated
statements of stockholders’ equity.
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