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The pro forma income tax provision consists of the following (in thousands):
Year Ended

December 31, December 29,
1995 1996

Current income taxes:
Federal taxes $12,215 $11,642
State and local taxes 4,936 4,777
Foreign taxes 643 1,130
$17,794 $17,549
Deferred income taxes (4,089) (14,012)
$13,705 $ 3,537
951
Case: Donna Karan International Inc.




221
Part 4 Additional Cases




A reconciliation setting forth the differences between the pro forma effective tax rate of
the Company and the U.S. Federal statutory tax rate is as follows:
Year Ended

December 31, December 29,
1995 1996

Federal statutory rate 35.0% 35.0%
State and local taxes, net of federal tax bene¬ts 7.6 7.0
Taxes related to foreign income, net of credits 1.9 14.0




Donna Karan International
Other items, net, none of which individually
exceeds 5% of Federal taxes at statutory rate (1.8) (0.9)

42.7% 55.1%



16. Quarterly Results of Operations (Unaudited)

The following is a summary of the unaudited quarterly results of operations for 1996
and 1995 (dollars in thousands, except per share amounts):
Quarter Ended

March 31 June 30 September 29 December 29

1996
Net sales $159,585 $117,641 $173,415 $162,199
Gross pro¬t 52,861 37,145 55,506 55,264
Net income (loss) 11,701 (4,252) 16,444 1,043
Per share data:
Net income (loss) $ 0.73 $ (0.26) $ 0.77 $ 0.05
Weighted average or pro forma weighted
average number of common shares
outstanding 16,017,032 16,017,032 21,468,034 21,468,043

Quarter Ended

April 2 July 2 October 1 December 31

1995
Net sales $120,693 $102,731 $152,389 $134,313
Gross pro¬t 44,203 31,112 56,162 47,960
Net income (loss) 26,726 (1,325) 20,022 8,252
Per share data:
Net income (loss) $ 1.67 $ (0.08) $ 1.25 $ 0.52
Weighted average or pro forma weighted
average number of common shares out-
standing 16,017,032 16,017,032 16,017,032 16,017,032

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