Coach 2008 Annual Report Download - page 63

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TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
11. Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the years ended June 27, 2009 and June 28, 2008 are as follows:
Direct-to-
Consumer
Indirect Total
Balance at June 30, 2007 $ 212,278 $ 1,516 $ 213,794
Foreign exchange impact 35,324 — 35,324
Balance at June 28, 2008 247,602 1,516 249,118
Acquisition of Hong Kong, Macau and Mainland China retail
businesses
6,254 — 6,254
Foreign exchange impact 28,015 — 28,015
Balance at June 27, 2009 $ 281,871 $ 1,516 $ 283,387
At June 27, 2009 and June 28, 2008, intangible assets not subject to amortization were $9,788 and consisted of trademarks.
12. Income Taxes
The provisions for income taxes computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual
provisions were:
Fiscal Year Ended
June 27, 2009 June 28, 2008 June 30, 2007
Amount Percentage Amount Percentage Amount Percentage
Income before provision
for income taxes and
discontinued
operations:
United States $ 870,819 89.1% $1,082,584 90.6% $ 936,413 90.5%
Foreign 106,262 10.9 112,365 9.4 98,257 9.5
Total income before
provision for income
taxes and discontinued
operations:
$ 977,081 100.0% $ 1,194,949 100.0% $ 1,034,670 100.0%
Tax expense at U.S.
statutory rate
$ 341,978 35.0% $ 418,232 35.0% $ 362,135 35.0%
State taxes, net of federal
benefit
35,065 3.6 43,787 3.7 38,910 3.8
Foreign tax rate
differential
(9,202) (0.9) (7,750) (0.6) (13,892) (1.3)
Tax benefit, primarily due
to settlements of tax
return examinations
(9,289) (1.0) (49,968) (4.2) — 0.0
Other, net (4,840) (0.5) 7,609 0.6 10,988 1.0
Taxes at effective
worldwide rates
$ 353,712 36.2% $ 411,910 34.5% $ 398,141 38.5%
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