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TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
9. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended July 2, 2011 and July 3, 2010 are as follows:
Direct-to-
Consumer
Indirect Total
Balance at June 27, 2009 $ 281,871 $ 1,516 $ 283,387
Foreign exchange impact 22,474 — 22,474
Balance at July 3, 2010 304,345 1,516 305,861
Foreign exchange impact 25,143 — 25,143
Balance at July 2, 2011 $ 329,488 $ 1,516 $ 331,004
At July 2, 2011 and July 3, 2010, intangible assets not subject to amortization were $9,788 and consisted of trademarks.
10. 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
July 2, 2011 July 3, 2010 June 27, 2009
Amount Percentage Amount Percentage Amount Percentage
Income before provision for
income taxes:
United States $ 983,698 75.6% $ 995,459 86.0% $ 876,430 89.2%
Foreign 317,521 24.4 162,673 14.0 106,262 10.8
Total income before provision for
income taxes
$1,301,219 100.0% $1,158,132 100.0% $982,692 100.0%
Tax expense at U.S. statutory rate $ 455,426 35.0% $ 405,346 35.0% $ 343,942 35.0%
State taxes, net of federal benefit 42,464 3.3 39,131 3.4 37,775 3.8
Foreign tax rate differential (87,607) (6.8) (39,631) (3.5) (9,202) (0.9)
Tax benefit, primarily due to
settlements of tax return
examinations
(15,517) (1.2) — 0.0 (9,289) (0.9)
Other, net 25,653 2.0 18,346 1.6 (3,903) (0.4)
Taxes at effective worldwide rates $ 420,419 32.3% $ 423,192 36.5% $ 359,323 36.6%
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