Supercuts 2008 Annual Report Download - page 102

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. COMMITMENTS AND CONTINGENCIES: (Continued)
aggregate annual liability limitations. The Company is insured for losses in excess of these limitations. The Company is also self-insured for
health care claims for eligible participating employees subject to certain deductibles and limitations. The Company determines its liability for
claims incurred but not reported on an actuarial basis.
7. LITIGATION
The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail
employers, the Company has been faced with allegations of purported class-
wide wage and hour violations. Litigation is inherently unpredictable
and the outcome of these matters cannot presently be determined. Although company counsel believes that the Company has valid defenses in
these matters, it could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of
operations in any particular period.
8. INCOME TAXES
The components of income before income taxes are as follows:
The provision for income taxes consists of:
100
2008 2007 2006
(Dollars in thousands)
Income before income taxes:
United States
$
126,527
$
93,377
$
142,491
International
11,572
34,579
27,662
$
138,099
$
127,956
$
170,153
2008 2007 2006
(Dollars in thousands)
Current:
United States
$
53,271
$
45,876
$
50,426
International
4,262
5,153
2,795
Deferred:
United States
(4,689
)
(3,492
)
5,555
International
900
(2,751
)
1,799
$
53,744
$
44,786
$
60,575