Baskin Robbins 2015 Annual Report Download - page 95

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-85-
yet met as of the fiscal period end. As of December 26, 2015 and December 27, 2014, there were 150,000 restricted shares that
were contingently issuable and for which the contingent vesting criteria were not yet met as of the fiscal period end. As of
December 28, 2013, there were no contingently issuable equity awards and for which the contingent vesting criteria was not yet
met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation
excludes 2,985,215, 1,373,379, and 1,100,275 equity awards for fiscal years 2015, 2014, and 2013, respectively, as they would
be antidilutive.
(16) Income taxes
Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):
Fiscal year ended
December 26,
2015
December 27,
2014
December 28,
2013
Domestic operations $ 234,410 231,549 195,277
Foreign operations (32,822) 24,184 22,811
Income before income taxes $ 201,588 255,733 218,088
The components of the provision for income taxes were as follows (in thousands):
Fiscal year ended
December 26,
2015
December 27,
2014
December 28,
2013
Current:
Federal $ 90,586 82,925 70,696
State 23,694 23,146 11,758
Foreign 3,186 (1,262) 2,521
Current tax provision $ 117,466 104,809 84,975
Deferred:
Federal $(19,034)(22,644)(11,915)
State (3,060)(1,861)(984)
Foreign 987 (134)(292)
Deferred tax benefit (21,107)(24,639)(13,191)
Provision for income taxes $ 96,359 80,170 71,784
The provision for income taxes from continuing operations differed from the expense computed using the statutory federal
income tax rate of 35% due to the following:
Fiscal year ended
December 26,
2015
December 27,
2014
December 28,
2013
Computed federal income tax expense, at statutory rate 35.0% 35.0% 35.0%
Impairment of investment in Japan JV 9.4——
State income taxes 6.6 5.7 4.7
Benefits and taxes related to foreign operations (4.4)(3.5)(4.3)
Conversion of foreign subsidiary —(3.3)—
Other permanent differences 0.6 0.1 0.2
Changes in enacted tax rates and apportionment — 0.1 0.8
Uncertain tax positions —(2.5)(3.2)
Other, net 0.6 (0.3)(0.3)
Effective tax rate 47.8% 31.3% 32.9%
The increase in the effective tax rate for fiscal year 2015 resulting from the impairment of our investment in the Japan JV
resulted from the corresponding reduction in income before income taxes but for which there is no corresponding tax benefit.