Supercuts 2007 Annual Report Download - page 100

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of June 30, 2007, future minimum lease payments (excluding percentage rents based on sales) due under existing noncancelable
operating leases with remaining terms of greater than one year are as follows:
Salon Development Program:
As a part of its salon development program, the Company continues to negotiate and enter into leases and commitments for the acquisition
of equipment and leasehold improvements related to future salon locations, and continues to enter into transactions to acquire established hair
care salons.
Contingencies:
The Company is self-insured for most workers’ compensation and general liability losses subject to per occurrence and aggregate annual
liability limitations. The Company is insured for losses in excess of these limitations. The Company is also self-insured for health care claims
for eligible participating employees subject to certain deductibles and limitations. The Company determines its liability for claims incurred but
not reported on an actuarial basis.
7.
LITIGATION
The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail
employers, the Company has been faced with allegations of purported class-wide wage and hour violations. Litigation is inherently
unpredictable and the outcome of these matters cannot presently be determined. Although company counsel believes that the Company has
valid defenses in these matters, it could in the future incur judgments or enter into settlements of claims that could have a material adverse
effect on its results of operations in any particular period.
8.
INCOME TAXES:
The components of income before income taxes are as follows:
99
Corporate
Fiscal year
leases
Franchisee leases
(Dollars in thousands)
2008
$
297,545
$
43,709
2009
256,727
37,735
2010
208,163
30,195
2011
155,604
22,123
2012
107,374
11,710
Thereafter
217,625
9,955
Total minimum lease payments
$
1,243,038
$
155,427
2007
2006
2005
(Dollars in thousands)
Income before income taxes:
United States
$
93,377
$
142,491
$
122,669
International
34,579
27,662
(6,212
)
$
127,956
$
170,153
$
116,457