Harris Teeter 2009 Annual Report Download - page 54

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50
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Department of Revenue (“NCDR”). The Company is currently in settlement negotiations with the NCDR and
expects to conclude the matter within the next twelve months. Foreign and U.S. state jurisdictions have statutes
of limitations generally ranging from 3 to 5 years.
Liabilities related to tax matters currently in the process of being settled are included with Other Current
Liabilities in the Company’s Consolidated Balance Sheets. Management believes appropriate provisions for all
outstanding issues have been made for all jurisdictions and all open tax years.
The provision for income taxes consisted of the following (in thousands):
2009 2008 2007
CURRENT
Federal ................................................... $34,981 $34,313 $44,147
State and other ............................................. 6,851 9,381 8,764
41,832 43,694 52,911
DEFERRED
Federal ................................................... 8,092 12,398 (3,550)
State and other ............................................. 2,301 1,267 442
10,393 13,665 (3,108)
Provision for income taxes ...................................... $52,225 $57,359 $49,803
Income (loss) from foreign operations before income taxes in fiscal years 2009, 2008 and 2007 was
$(1,949,000), $1,420,000 and $2,868,000, respectively. Income taxes provided on foreign operations in fiscal
years 2009, 2008 and 2007 was $96,000, $931,000 and $425,000, respectively, including the minority interest
in such taxes.
Income tax expense differed from an amount computed by applying the statutory tax rates to pre-tax
income as follows (in thousands):
2009 2008 2007
Income tax on pre-tax income at the statutory federal rate of 35% ..... $48,366 $53,939 $45,672
Increase (decrease) attributable to:
State and other income taxes, net of federal income tax benefit ..... 6,585 6,589 6,229
Tax credits .............................................. (2,640) (2,820) (424)
Employee Stock Ownership Plan (ESOP) ...................... (806) (920) (1,010)
COLI................................................... (823) (459) (1,081)
Foreign Subsidiaries Loss (indefinitely invested) ................ 961 260 349
Other items, net .......................................... 582 770 68
Income tax expense .......................................... $52,225 $57,359 $49,803