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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV