WeightWatchers 2011 Annual Report Download - page 103

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
10. Income Taxes
The following tables summarize the Company’s consolidated provision for US federal, state and foreign
taxes on income:
December 31,
2011
January 1,
2011
January 2,
2010
Current:
US federal ................................................ $121,860 $ 68,126 $ 71,409
State .................................................... 18,298 11,462 11,734
Foreign .................................................. 13,299 18,693 (5,950)
$153,457 $ 98,281 $ 77,193
Deferred:
US federal ................................................ $ 23,410 $ 20,115 $ 25,302
State .................................................... 2,675 2,299 2,892
Foreign .................................................. (794) (39) 10,198
$ 25,291 $ 22,375 $ 38,392
Total tax provision ......................................... $178,748 $120,656 $115,585
The components of the Company’s consolidated income before income taxes consist of the following:
December 31,
2011
January 1,
2011
January 2,
2010
Domestic ..................................................... $400,310 $236,864 $256,405
Foreign ...................................................... 82,782 76,314 33,751
$483,092 $313,178 $290,156
The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate
are as follows:
December 31,
2011
January 1,
2011
January 2,
2010
US federal statutory rate ......................................... 35.0% 35.0% 35.0%
Federal and state tax reserve provision .............................. (0.6) 0.7 0.4
States income taxes (net of federal benefit) .......................... 3.0 3.0 3.5
Foreign taxes .................................................. (0.4) (0.9) (1.0)
Increase in valuation allowance ................................... 0.5 0.7 1.8
Loss on closure of Finland ....................................... (0.8) 0.0 0.0
Other ........................................................ 0.3 0.0 0.1
Effective tax rate ........................................... 37.0% 38.5% 39.8%
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