Supercuts 2007 Annual Report Download - page 101

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The provision for income taxes consists of:
The provision for income taxes differs from the amount of income tax determined by applying the applicable United States (U.S.)
statutory rate to earnings before income taxes, as a result of the following:
The components of the net deferred tax assets and liabilities are as follows:
100
2007
2006
2005
(Dollars in thousands)
Current:
United States
$
45,876
$
50,426
$
55,732
International
5,153
2,795
5,618
Deferred:
United States
(3,492
)
5,555
(10,476
)
International
(2,751
)
1,799
952
$
44,786
$
60,575
$
51,826
2007
2006
2005
U.S. statutory rate
35.0
%
35.0
%
35.0
%
State income taxes, net of federal income tax benefit
2.4
2.4
2.5
Tax effect of goodwill impairment
4.2
—
11.0
Foreign income taxes at other than U.S. rates
(3.1
)
(2.5
)
(4.6
)
Work Opportunity and Welfare
-
to
-
Work Tax Credits
(3.2
)
(0.5
)
(1.5
)
Other, net
(0.3
)
1.2
2.1
35.0
%
35.6
%
44.5
%
2007
2006
(Dollars in thousands)
Deferred tax assets:
Deferred rent
$
18,382
$
16,697
Insurance
—
1,176
Payroll and payroll related costs
26,605
22,275
Foreign NOL carryforwards
4,752
490
Reserve for impaired assets
5,328
3,486
Derivatives
—
2,623
Inventories
1,204
1,191
Deferred gift card revenue
1,788
922
Other
5,892
4,128
Total deferred tax assets
$
63,951
$
52,988
Deferred tax liabilities:
Insurance
$
(4,280
)
$
—
Depreciation and amortization
(120,975
)
(118,548
)
Accrued property taxes
(2,617
)
(2,362
)
Derivatives
(583
)
—
Other
(1,032
)
(1,195
)
Total deferred tax liabilities
$
(129,487
)
$
(122,105
)
Net deferred tax liabilities
$
(65,536
)
$
(69,117
)