Dunkin' Donuts 2011 Annual Report Download - page 110

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purchase common stock outstanding that may be dilutive in the future. Of those amounts, there were 636,752
common restricted stock awards and 2,422,628 options to purchase common stock that were performance-based
and for which the performance criteria have not yet been met. There were no Class L common stock equivalents
outstanding during fiscal years 2011, 2010, and 2009.
(15) Income taxes
Income before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):
Fiscal year ended
December 31,
2011
December 25,
2010
December 26,
2009
Domestic operations ..................... $70,034 2,270 54,804
Foreign operations ....................... (3,221) 17,176 19,472
Income before income taxes ........... $66,813 19,446 74,276
The components of the provision (benefit) for income taxes were as follows (in thousands):
Fiscal year ended
December 31,
2011
December 25,
2010
December 26,
2009
Current:
Federal ............................................... $34,282 11,497 8,575
State ................................................. 5,733 5,339 8,585
Foreign .............................................. 3,719 4,138 3,807
Current tax provision ................................ $43,734 20,974 20,967
Deferred:
Federal ............................................... $(11,567) (16,916) 15,773
State ................................................. 892 (10,397) 2,239
Foreign .............................................. (688) (1,076) 289
Deferred tax provision (benefit) ....................... (11,363) (28,389) 18,301
Provision (benefit) for income taxes .................... $32,371 (7,415) 39,268
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 31,
2011
December 25,
2010
December 26,
2009
Computed federal income tax expense, at statutory rate ............. 35.0% 35.0% 35.0%
Permanent differences:
Impairment of investment in BR Korea ..................... 9.8 — —
Other permanent differences .............................. 0.9 1.7 0.5
State income taxes ...................................... 6.9 1.8 4.8
Benefits and taxes related to foreign operations ............... (6.8) (33.4) (6.9)
Changes in enacted tax rates .............................. 3.0 (27.2) —
Change in valuation allowance ............................ — — 7.8
Uncertain tax positions .................................. 1.9 (16.1) 12.3
Other ................................................ (2.2) 0.1 (0.6)
48.5% (38.1)% 52.9%
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