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| 8. This excerpt taken from the AKS 10-Q filed May 5, 2008. Income Taxes
Income
taxes recorded through March 31, 2008 have been estimated based on year-to-date
income and projected results for the full year. The amounts recorded
reflect the provisions of FASB Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in
income taxes recognized in an entity’s financial statements and prescribes
standards for the recognition and measurement of tax positions taken or expected
to be taken on a tax return.
The
balance of unrecognized tax benefits at December 31, 2007 was
$50.9. For the three-month period ending March 31, 2008, the
unrecognized tax benefits related to tax positions taken in prior periods
increased by $15.6. This increase included $14.7 related to accrued
liabilities the Company has determined may not be deductible for tax purposes
until paid and $0.9 related to the impact of federal audit adjustments on state
and local taxes. The portion of the increase in unrecognized tax
benefits that will affect the effective tax rate is $0.2. For 2008,
it is estimated the Company will record an additional $0.4 of unrecognized tax
benefits related to tax positions likely to be taken on tax returns to be filed
for the current year with no affect on the effective tax rate.
The
Company recognizes interest and penalties accrued related to uncertain tax
positions as a component of income tax expense. Accrued interest and penalties
are included in the related tax liability line in the consolidated balance
sheet. The balance of interest and penalties at December 31, 2007 was
$4.9. For the period ended March 31, 2008, the Company recognized
approximately $1.1 in interest and penalties.
Certain
tax positions exist for which it is reasonably possible that the total amounts
of unrecognized tax benefits will significantly change within twelve months of
March 31, 2008. The Company has filed an appeal with taxing
authorities to resolve a state tax issue related to the Company’s filing
position for tax years prior to 2002. The resolution of this issue,
if concluded in the Company’s favor, is estimated to reduce related unrecognized
tax benefits within the next twelve months by approximately $0.3 to
$0.9. The
Company is subject to taxation by the United States and by various state and
foreign jurisdictions. The Company’s tax years for 2005 and forward
are subject to examination by the tax authorities. Net operating
losses carried forward from prior years are subject to examination by tax
authorities. However, with a few exceptions, the Company is no longer
subject to federal, state, local or foreign examinations by tax authorities for
years before 2005.
8. These excerpts taken from the AKS 10-K filed Feb 26, 2008. Income Taxes In 2007, the Company had an income tax provision of $203.6 which included a benefit of $11.4 due to state tax law changes, compared to an income tax benefit of $15.1 in 2006, which included a provision of $5.7 due to state tax law changes. Income Taxes In 2007, The Company’s net | EXCERPTS ON THIS PAGE:
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