Supercuts 2009 Annual Report Download - page 123

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. LITIGATION (Continued)
settlements of claims that could have a material adverse effect on its results of operations in any particular period.
13. INCOME TAXES
The components of income before income taxes are as follows:
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:
During the fourth quarter of fiscal year 2009, the Company recorded an adjustment to correct its prior year deferred income tax balances.
The adjustment increased the Company's fiscal year 2009 income tax provision by $3.8 million and increased its effective income tax rate by
4.8 percent. The Company does not believe the adjustment is material to its fiscal 2009 results of operations or its financial position or results of
operations of any prior periods.
121
2009
2008
2007
(Dollars in thousands)
Income before income taxes:
United States
$
112,524
$
126,627
$
71,764
International
(33,758
)
10,607
33,148
$
78,766
$
137,234
$
104,912
2009
2008
2007
(Dollars in thousands)
Current:
United States
$
48,935
$
53,694
$
37,192
International
(3,142
)
4,262
5,153
Deferred:
United States
568
(4,674
)
(2,421
)
International
(4,411
)
900
(2,751
)
$
41,950
$
54,182
$
37,173
2009
2008
2007
U.S. statutory rate
35.0
%
35.0
%
35.0
%
State income taxes, net of federal income tax benefit
4.8
5.7
1.7
Tax effect of goodwill impairment
14.5
—
5.1
Foreign income taxes at other than U.S. rates
(1.6
)
(2.3
)
(3.6
)
Work Opportunity and Welfare
-
to
-
Work Tax Credits
(4.9
)
(2.0
)
(3.7
)
Adjustment of prior year deferred income taxes
4.8
—
—
Other, net
0.7
3.1
0.9
53.3
%
39.5
%
35.4
%