Harris Teeter 2010 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2010 Harris Teeter annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

The provision for income taxes consisted of the following (in thousands):
2010 2009 2008
CURRENT
Federal .................................................. $14,115 $34,981 $34,313
State and other ............................................ 5,554 6,851 9,381
19,669 41,832 43,694
DEFERRED
Federal .................................................. 39,661 8,092 12,398
State and other ............................................ 5,967 2,301 1,267
45,628 10,393 13,665
Provision for income taxes .................................... $65,297 $52,225 $57,359
Income (loss) from foreign operations before income taxes in fiscal years 2010, 2009 and 2008 was $8,011,000,
$(1,949,000) and $1,420,000, respectively. Income taxes provided on foreign operations in fiscal years 2010, 2009
and 2008 was $1,525,000, $96,000 and $931,000, 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):
2010 2009 2008
Income tax on pre-tax income at the statutory federal rate of 35% .... $62,068 $48,366 $53,939
Increase (decrease) attributable to:
State and other income taxes, net of federal income tax benefit ..... 7,150 6,585 6,589
Tax credits ............................................... (613) (2,640) (2,820)
Employee Stock Ownership Plan (ESOP) ...................... (721) (806) (920)
COLI ................................................... (1,225) (823) (459)
Foreign Subsidiaries (Gain) Loss (indefinitely invested) ........... (875) 961 260
Other items, net ........................................... (487) 582 770
Income tax expense .......................................... $65,297 $52,225 $57,359
The tax effects of temporary differences giving rise to the Company’s consolidated deferred tax assets and
liabilities at October 3, 2010 and September 27, 2009 are as follows (in thousands):
2010 2009
Deferred Tax Assets:
Employee benefits ........................................................ $ 66,258 $ 76,960
Rent obligations .......................................................... 23,395 23,132
Reserves not currently deductible ........................................ 17,445 16,517
Vendor allowances ....................................................... 7,404 6,766
Other ..................................................................... 4,480 6,103
Total deferred tax assets .................................................... $ 118,982 $129,478
Deferred Tax Liabilities:
Property, plant and equipment ............................................ $(100,496) $ (75,043)
Inventories ............................................................... (10,868) (13,723)
Undistributed earnings on foreign subsidiaries ........................... (4,795) (3,696)
Other ..................................................................... (1,490) (877)
Total deferred tax liabilities ................................................. $(117,649) $ (93,339)
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
49