Harris Teeter 2012 Annual Report Download - page 43

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The total fair value of stock awards that vested during fiscal years 2012, 2011 and 2010 was $12,359,000, $5,388,000,
and $4,705,000, respectively.
A summary of the status of the Company’s stock option plans as of October 2, 2012, October 2, 2011, and October 3, 2010,
changes during the years ending on those dates and related weighted average exercise price is presented below (shares in
thousands):
2012 2011 2010
Stock Options Shares Price Shares Price Shares Price
Outstanding at beginning of year 67 $18.77 104 $17.86 373 $16.49
Exercised (31) 15.94 (37) 16.25 (269) 15.96
Outstanding and exercisable at end of year 36 $21.17 67 $18.77 104 $17.86
As of October 2, 2012, all outstanding stock options were exercisable and the price per share ranged from $14.39 to $35.24.
The total cash received from stock options exercised for the exercise price and related tax deductions are included in the
Consolidated Statements of Shareholders’ Equity and Comprehensive Income. The Company has historically issued new shares
to satisfy the stock options exercised. The aggregate intrinsic value of stock options outstanding and exercisable as of
October 2, 2012 and October 2, 2011 was $602,000 and $1,345,000, respectively. The aggregate intrinsic value of stock options
exercised during fiscal 2012, 2011 and 2010 was $780,000, $876,000, and $4,143,000, respectively.
14. 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 fiscal 2008 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):
2012 2011 2010
Current:
Federal $37,696 $38,211 $ 8,572
State and other 12,469 12,949 3,263
50,165 51,160 11,835
Deferred:
Federal 7,038 17,834 40,874
State and other (2,563) 663 6,284
4,475 18,497 47,158
Provision for income taxes from continuing operations $54,640 $69,657 $58,993
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):
2012 2011 2010
Income tax on pre-tax income at the statutory federal rate of 35% $54,098 $63,390 $55,176
Increase (decrease) attributable to:
State and other income taxes, net of federal income tax benefit 6,120 8,604 5,997
Tax credits (2,494) (1,081) (613)
Employee Stock Ownership Plan (ESOP) (556) (583) (604)
COLI (2,420) (803) (1,225)
Other items, net (108) 130 262
Income tax expense $54,640 $69,657 $58,993
HARRIS TEETER SUPERMARKETS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (CONTINUED)
39