WeightWatchers 2012 Annual Report Download - page 104

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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 29,
2012
December 31,
2011
January 1,
2011
Current:
US federal .............................................. $ 99,437 $121,860 $ 68,126
State ................................................... 12,719 18,298 11,462
Foreign ................................................ 20,614 13,299 18,693
$132,770 $153,457 $ 98,281
Deferred:
US federal .............................................. $ 23,002 $ 23,410 $ 20,115
State ................................................... 2,629 2,675 2,299
Foreign ................................................ 1,134 (794) (39)
$ 26,765 $ 25,291 $ 22,375
Total tax provision ....................................... $159,535 $178,748 $120,656
The components of the Company’s consolidated income before income taxes consist of the following:
December 29,
2012
December 31,
2011
January 1,
2011
Domestic ................................................... $337,321 $400,310 $236,864
Foreign .................................................... 79,640 82,782 76,314
$416,961 $483,092 $313,178
The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate
are as follows:
December 29,
2012
December 31,
2011
January 1,
2011
US federal statutory rate ....................................... 35.0% 35.0% 35.0%
Federal and state tax reserve provision ............................ 0.2 (0.6) 0.7
States income taxes (net of federal benefit) ........................ 2.6 3.0 3.0
Foreign taxes ................................................ (0.3) (0.4) (0.9)
Increase in valuation allowance ................................. 0.7 0.5 0.7
Loss on closure of Finland ..................................... 0.0 (0.8) 0.0
Other ...................................................... 0.1 0.3 0.0
Effective tax rate ......................................... 38.3% 37.0% 38.5%
F-22