Coach 2012 Annual Report Download - page 71

COACH, INC.
Notes to Consolidated Financial Statements (Continued)
(dollars and shares in thousands, except per share data)
10. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended June 30, 2012 and July 2, 2011 are
as follows:
Direct-to-
Consumer Indirect Total
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
Acquisition of Singapore and Taiwan retail
businesses ........................... 41,307 — 41,307
Foreign exchange impact .................. 3,724 — 3,724
Balance at June 30, 2012 .................. $374,519 $1,516 $376,035
At June 30, 2012 and July 2, 2011, intangible assets not subject to amortization were $9,788 and
consisted of trademarks.
11. 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 30, 2012 July 2, 2011 July 3, 2010
Amount Percentage Amount Percentage Amount Percentage
Income before provision
for income taxes:
United States ...... $1,152,576 76.5% $ 983,698 75.6% $ 995,459 86.0%
Foreign .......... 353,087 23.5 317,521 24.4 162,673 14.0
Total income before
provision for income
taxes: ............. $1,505,663 100.0% $1,301,219 100.0% $1,158,132 100.0%
Tax expense at U.S.
statutory rate ........ $ 526,979 35.0% $ 455,426 35.0% $ 405,346 35.0%
State taxes, net of federal
benefit ............ 46,233 3.1 42,464 3.3 39,131 3.4
Effects of foreign
operations .......... (120,642) (8.1) (87,607) (6.8) (39,631) (3.5)
Tax benefit related to
agreements with tax
authorities ......... (11,553) (0.7) (15,517) (1.2) — 0.0
Other, net ........... 25,736 1.7 25,653 2.0 18,346 1.6
Taxes at effective
worldwide rates ...... $ 466,753 31.0% $ 420,419 32.3% $ 423,192 36.5%
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