Harris Teeter 2011 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2011 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 116

  • 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

October 2, 2011 and October 3, 2010 was $1,345,000 and $1,776,000, respectively. The aggregate intrinsic value of stock options
exercised during fiscal 2011, 2010 and 2009 was $876,000, $4,143,000, and $1,153,000, respectively.
12. INCOME TAXES
The Company and its subsidiaries file a consolidated U.S. federal income tax return. The U.S. federal statute of limitations
remains open for the fiscal year 2007 and forward. Foreign and U.S. state jurisdictions have statutes of limitations generally
ranging from three to five years.
The provision for income taxes from continuing operations consisted of the following (in thousands):
2011 2010 2009
Current:
Federal $38,211 $ 8,572 $35,506
State and Other 12,949 3,263 6,317
51,160 11,835 41,823
Deferred:
Federal 17,834 40,874 13,400
State and Other 663 6,284 3,479
18,497 47,158 16,879
Provision for Income Taxes from Continuing Operations $69,657 $58,993 $58,702
Income tax expense from continuing operations differed from an amount computed by applying the statutory tax rates to
pre-tax income as follows (in thousands):
2011 2010 2009
Income tax on pre-tax income at the statutory federal rate of 35% $63,390 $55,176 $53,305
Increase (decrease) attributable to:
State and other income taxes, net of federal income tax benefit 8,604 5,997 6,854
Tax credits (1,081) (613) (570)
Employee Stock Ownership Plan (ESOP) (583) (604) (666)
COLI (803) (1,225) (823)
Other items, net 130 262 602
Income tax expense $69,657 $58,993 $58,702
The tax effects of temporary differences giving rise to the Company’s consolidated deferred tax assets and liabilities as
of October 2, 2011 and October 3, 2010 are as follows (in thousands):
2011 2010
Deferred Tax Assets:
Employee benefits $ 44,380 $ 51,739
Rent obligations 23,034 23,395
Reserves not currently deductible 17,163 15,885
Vendor allowances 6,782 7,404
Other 6,142 3,709
Total deferred tax assets $ 97,501 $ 102,132
Deferred Tax Liabilities:
Property, plant and equipment $(102,135) $ (93,868)
Inventories (14,534) (8,796)
Other 815 (653)
Total deferred tax liabilities $(115,854) $(103,317)
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
40