SG&A expenses in the second quarter included a $3.7 million loss on the sale of our former corporate aircraft, which was recently replaced by operating lease for a new aircraft. Excluding this item, SG&A expenses increased by 13.7% from the second quarter of last year and were 11.5% of sales compared to 11.8% of sales a year ago. The increase in dollar SG&A expenses over fiscal 2010 was primarily due to the ramp-up of the new retail distribution center, expenses for retail advertising, our year-to-date adjustment to performance driven variable compensation and the impact of the higher valued Canadian dollar on corporate administrative expenses.
Results for the second quarter reflected income tax recoveries of $5 million, of which approximately 1/2 related to the first quarter. The tax recoveries are due to recognition of the tax benefits of year-to-date losses from U.S. legal entities, which are being recognized as a result of our projected future earnings in these entities which are expected to enable us to fully utilize the losses.
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