Supercuts 2004 Annual Report Download - page 82

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
The provision for income taxes consists of:
In fiscal year 2002, the Company implemented certain tax strategies resulting in approximately $1.8 million of economic benefit, which has
been recognized as a nonrecurring income tax benefit in the third quarter, thus reducing fiscal year 2002 income tax expense. The majority
of the nonrecurring benefit was realized through the amendment of previous tax filings.
The components of the net deferred tax asset (liability) are as follows:
67
8.
INCOME TAXES:
(Dollars in thousands)
2004
2003
2002
Current:
United States
$
39,722
$
46,462
$
27,815
International
3,538
2,086
2,891
Nonrecurring federal benefit
(1,750
)
Deferred:
United States
15,159
2,090
14,640
International
912
1,288
$
59,331
$
51,926
$
43,596
(Dollars in thousands)
2004
2003
Net current deferred tax asset:
Insurance
$
5,752
$
8,415
Payroll and payroll related costs
4,902
3,014
Nonrecurring items
382
455
Reserve for impaired assets
2,351
1,485
Accrued litigation
—
1,321
Deferred franchise fees
767
702
Other, net
1,131
3,077
$
15,285
$
18,469
Net noncurrent deferred tax liability:
Depreciation and amortization
$
(56,786
)
$
(39,881
)
Deferred rent
3,910
3,576
Payroll and payroll related costs
10,168
7,088
Derivatives
3,367
2,860
Other, net
(257
)
(115
)
$
(39,598
)
$
(26,472
)