| Income Taxes |
NOTE E – INCOME TAXES
Income tax expense (benefit) included in income from net earnings consists of the following:
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Year ended |
|
|
|
|
| |
|
2010 |
|
|
2011 |
|
|
2012 |
|
| Current |
|
|
|
|
|
|
|
|
|
| Federal |
$ |
18,026 |
|
$ |
22,383 |
|
$ |
27,779 |
|
| State |
|
1,502 |
|
|
1,913 |
|
|
1,141 |
|
| Foreign |
|
2,956 |
|
|
4,442 |
|
|
4,051 |
|
| |
|
22,484 |
|
|
28,738 |
|
|
32,971 |
|
| Deferred |
|
|
|
|
|
|
|
|
|
| Federal |
|
1,243 |
|
|
1,044 |
|
|
(145 |
) |
| State |
|
113 |
|
|
(71 |
) |
|
94 |
|
| Foreign |
|
(627 |
) |
|
(2,985 |
) |
|
(927 |
) |
| |
$ |
23,213 |
|
$ |
26,726 |
|
$ |
31,993 |
|
The income tax provision, as reconciled to the tax computed at the federal statutory rate of 35% for 2010, 2011, and 2012, is as follows:
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Year ended |
|
|
|
|
| |
|
2010 |
|
|
2011 |
|
|
2012 |
|
| Federal income taxes at statutory rate |
$ |
24,102 |
|
$ |
27,117 |
|
$ |
34,449 |
|
| State income taxes, net of federal tax benefit |
|
1,192 |
|
|
1,373 |
|
|
1,201 |
|
| Qualified production activities deduction |
|
(1,320 |
) |
|
(1,576 |
) |
|
(2,651 |
) |
| All other, net |
|
(761 |
) |
|
(188 |
) |
|
(1,006 |
) |
| |
$ |
23,213 |
|
$ |
26,726 |
|
$ |
31,993 |
|
F-14
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except per share data)
NOTE E – INCOME TAXES – CONTINUED
The significant categories of deferred taxes are as follows:
| |
|
|
|
|
|
|
| |
|
December 31, |
|
|
December 29, |
|
| |
|
2011 |
|
|
2012 |
|
| Deferred tax assets |
|
|
|
|
|
|
| Inventory differences |
$ |
2,695 |
|
$ |
2,415 |
|
| Accruals not currently deductible |
|
2,124 |
|
|
2,533 |
|
| Equity-based compensation |
|
7,558 |
|
|
4,375 |
|
| Intangible assets |
|
9,535 |
|
|
9,532 |
|
| Net operating losses |
|
2,654 |
|
|
2,240 |
|
| Other |
|
1,361 |
|
|
2,675 |
|
| Gross deferred tax assets |
|
25,927 |
|
|
23,770 |
|
| Valuation allowance |
|
(1,784 |
) |
|
(1,598 |
) |
| Net deferred tax assets |
|
24,143 |
|
|
22,172 |
|
| |
| Deferred tax liabilities |
|
|
|
|
|
|
| Depreciation/amortization |
|
(3,506 |
) |
|
(5,260 |
) |
| Accumulated other comprehensive income |
|
(3,378 |
) |
|
(3,833 |
) |
| Prepaid expenses |
|
(1,967 |
) |
|
(1,240 |
) |
| Intangible assets |
|
(10,659 |
) |
|
(10,521 |
) |
| Other |
|
(1,202 |
) |
|
(2,490 |
) |
| Gross deferred tax liabilities |
|
(20,712 |
) |
|
(23,344 |
) |
| Net deferred taxes |
$ |
3,431 |
|
$ |
(1,172 |
) |
At December 29, 2012, the Company had foreign operating loss carry forwards of approximately $8,960. If these operating losses are not used, they will expire between 2013 and 2017. A valuation allowance of approximately $6,400 has been placed on these foreign operating loss carry forwards. The valuation allowance is determined using a more likely than not realization criteria and is based upon all available positive and negative evidence, including future reversals of temporary differences. A future increase or decrease in the current valuation allowance is not expected to impact the income tax provision due to the Company's ability to fully utilize foreign tax credits associated with taxable income in these jurisdictions.
The Components of deferred taxes, net on a jurisdiction basis are as follows:
| |
|
|
|
|
|
| |
|
December 31, |
|
December 29, |
|
| |
|
2011 |
|
2012 |
|
| Net current deferred tax assets |
$ |
3,320 |
$ |
4,255 |
|
| Net noncurrent deferred tax assets |
|
11,033 |
|
5,956 |
|
| Total net deferred tax assets |
|
14,353 |
|
10,211 |
|
| |
| Net current deferred tax liabilities |
|
974 |
|
1,382 |
|
| Net noncurrent deferred tax liabilities |
|
9,948 |
|
10,001 |
|
| Total net deferred tax liabilities |
|
10,922 |
|
11,383 |
|
| Net deferred taxes |
$ |
3,431 |
$ |
(1,172 |
) |
|