WeightWatchers 2009 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2009 WeightWatchers 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 120

  • 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

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
11. Income Taxes
The following tables summarize the Company’s consolidated provision for U.S. federal, state and foreign
taxes on income:
January 2,
2010
January 3,
2009
December 29,
2007
Current:
U.S. federal ............................................... $ 71,409 $ 88,417 $ 77,195
State .................................................... 11,734 13,082 10,711
Foreign .................................................. (5,950) 19,147 20,851
$ 77,193 $120,646 $108,757
Deferred:
U.S. federal ............................................... $ 25,302 $ 18,344 $ 17,466
State .................................................... 2,892 2,096 2,030
Foreign .................................................. 10,198 (9,084) (2,942)
$ 38,392 $ 11,356 $ 16,554
Total tax provision ......................................... $115,585 $132,002 $125,311
The components of the Company’s consolidated income before income taxes consist of the following:
January 2,
2010
January 3,
2009
December 29,
2007
Domestic ..................................................... $256,405 $291,858 $254,678
Foreign ...................................................... 33,751 42,491 71,813
$290,156 $334,349 $326,491
The difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate
are as follows:
January 2,
2010
January 3,
2009
December 29,
2007
U.S. federal statutory rate ........................................ 35.0% 35.0% 35.0%
Federal and state tax reserve provision .............................. 0.4 0.4 0.3
States income taxes (net of federal benefit) .......................... 3.5 3.2 2.9
Foreign taxes .................................................. (1.0) (1.1) (0.8)
Increase in valuation allowance ................................... 1.8 1.7 1.0
Other ........................................................ 0.1 0.3 —
Effective tax rate ........................................... 39.8% 39.5% 38.4%
F-20