Supercuts 2011 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 of the 2011 Supercuts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. INCOME TAXES
The components of (loss) income before income taxes are as follows:
The (benefit) provision for income taxes consists of:
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to (loss)
earnings before income taxes, as a result of the following:
For fiscal year 2011, the Company reported a $25.6 million loss from continuing operations before income taxes as compared to income
from continuing operations before income taxes of $53.2 and $78.8 million in fiscal years 2010 and 2009, respectively. The rate reconciliation
items have a greater impact on the annual effective income tax rate in fiscal year 2011 as the magnitude of the loss from continuing operations
before income taxes is less than the magnitude of income from continuing operations before income taxes in fiscal year 2010. The annual
effective tax rate was favorably impacted by the employment credits related to the Small Business and Work Opportunity Tax Act of 2007.
Based upon current legislation, these credits are scheduled to expire on December 31, 2011. Partially offsetting the favorable impact of the
employment credits was the adverse impact of the pre-tax non-cash goodwill impairment charge of $74.1 million recorded during the third
quarter of fiscal year 2011, which is only partially deductible for tax purposes. Additionally, the foreign income taxes at other
125
2011
2010
2009
(Dollars in thousands)
(Loss) income before income
taxes:
U.S.
$
(31,963
)
$
35,289
$
112,524
International
6,334
17,925
(33,758
)
$
(25,629
)
$
53,214
$
78,766
2011
2010
2009
(Dollars in thousands)
Current:
U.S.
$
3,658
$
5,580
$
48,935
International
1,557
14,882
(3,142
)
Deferred:
U.S.
(17,882
)
4,007
568
International
3,171
1,108
(4,411
)
$
(9,496
)
$
25,577
$
41,950
2011
2010
2009
U.S. statutory rate
(35.0
)%
35.0
%
35.0
%
State income taxes, net of federal
income tax benefit
(0.1
)
3.4
3.4
Tax effect of goodwill impairment
10.8
11.4
14.5
Foreign income taxes at other than
U.S. rates
7.9
(0.8
)
(1.6
)
Work Opportunity and Welfare-to-
Work Tax Credits
(15.3
)
(6.4
)
(4.9
)
Adjustment of prior year income tax
balances
—
3.9
4.8
Other, net
(5.4
)
1.6
2.1
(37.1
)%
48.1
%
53.3
%