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These excerpts taken from the ANIK 10-Q filed May 4, 2009. Income Taxes
The Company accounts for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement in accordance with FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” (“FIN 48”). If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when
8
an item is included on a tax return are considered to have met the recognition threshold. It is the Company’s policy to classify accrued interest and penalties as part of the accrued FIN 48 liability and record the expense in the provision for income taxes.
We record a deferred tax asset or liability based on the difference between the financial statement and tax basis of assets and liabilities, as measured by the enacted tax rates assumed to be in effect when these differences reverse. As of March 31, 2009, management determined that it is more likely than not that the deferred tax assets will be realized and, therefore, a valuation allowance has not been recorded.
10. Income Taxes
Income tax expense was $238,088 and $327,601 for the three months ended March 31, 2009 and 2008, respectively. The effective tax rates were 31.3% and 34.7% for the three months ended March 31, 2009 and 2008, respectively. The decrease in effective tax rate was primarily due to an increase in the federal research tax credit. During the first quarter of 2009, there was no change to the Company’s FIN 48 tax reserves Our U.S. federal income tax returns for the years 2005, 2006, and 2007 remain subject to examination, and our state income tax returns for the years 2006 and 2007 remain subject to examination.
Income Taxes
The Company accounts for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement in accordance with FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” (“FIN 48”). If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. It is the Company’s policy to classify accrued interest and penalties as part of the accrued FIN 48 liability and record the expense in the provision for income taxes.
We record a deferred tax asset or liability based on the difference between the financial statement and tax basis of assets and liabilities, as measured by the enacted tax rates assumed to be in effect when these differences reverse. As of March 31, 2009, management determined that it is more likely than not that the deferred tax assets will be realized and, therefore, a valuation allowance has not been recorded.
Income taxes. Provisions for income taxes
were $238,088 and $327,601 for the three months ended March 31, 2009 and 2008,
respectively. The effective tax rates
for the provision were 31.3% and 34.7% for the three months ended March 31,
2009 and 2008, respectively. The
decrease in effective tax rate was primarily due to an increase in federal
research credit in 2009. During the first quarter of 2009,
there was no change to the Company’s FIN 48 tax reserves. Our U.S. federal income tax returns for the
years 2005, 2006, and 2007 remain subject to examination, and our state income
tax returns for the years 2006 and 2007 remain subject to examination.
These excerpts taken from the ANIK 10-K filed Mar 9, 2009. Income Taxes. Beginning January 1, 2007, the Company began accounting for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement in accordance with FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" (FIN 48). If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. As a result of the adoption of FIN 48 there was no change to the tax reserve for unrecognized tax benefits. As such, there was no change to retained earnings as of January 1, 2007. It is the Company's policy to classify accrued interest and penalties as part of the accrued FIN 48 liability and record the expense in the provision for income taxes. As of December 31, 2008, income tax related interest and penalties were immaterial. Our U.S. federal income tax returns for the years 2005 through 2007 remain subject to examination, and our state income tax returns for 2006 and 2007 remain subject to examination. We record a deferred tax asset or liability based on the difference between the financial statement and tax basis of assets and liabilities, as measured by the enacted tax rates assumed to be in effect when these differences reverse. As of December 31, 2008, management determined that it is more likely than not that the deferred tax assets will be realized and, therefore, a valuation allowance has not been recorded. Income Taxes. Beginning January 1, 2007, the Company began accounting for uncertain income tax positions using a benefit recognition model We Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109 requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Beginning January 1, 2007, the Company began accounting for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being ultimately realized upon ultimate settlement in accordance with FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" (FIN 48). If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. As a result of adoption of FIN 48 there was no change to the tax reserve for unrecognized tax benefits. As such, there was no change to retained earnings as of January 1, 2007. It is the Company's policy to classify accrued interest and penalties as part of the accrued FIN 48 liability and record the expense in the provision for income taxes. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109 Beginning This excerpt taken from the ANIK 10-Q filed Nov 6, 2008. Income taxes. Provisions for income taxes were $357,751 and
$634,033 for the three months ended September 30, 2008 and 2007,
respectively. Provisions for income
taxes were $921,182 and $1,797,377 for the nine months ended September 30,
2008 and 2007, respectively. The
year-to-date effective tax rates for the provision were 26.7% and 29.2% for the
nine months ended September 30, 2008 and 2007, respectively. The decrease in effective tax rate was
primarily due to an increase in a Massachusetts investment tax credit as a
result of the expenditures related to the Company’s facility project. On October 3, 2008 the Senate passed a
financial bailout bill which included the extension of Federal research tax
credit to December 31, 2009. This
extension will have a favorable impact on the Company’s full year effective tax
rate beginning in the quarter ending December 31, 2008.
During the third quarter of 2008, the Company concluded its audit by the Massachusetts Department of Revenue (“DoR”) for its 2004 and 2005 tax returns, which resulted in a reduction to its FIN 48 tax reserves and a related income tax benefit of approximately $100,000. Also during the third quarter, the Company recorded additional provision of $93,000 related to the reduction of its deferred tax assets as a result of newly enacted changes to the State of Massachusetts to gradually reduce future corporate income tax rates. The impact of these two events on the Company’s tax provision was approximately equal and offsetting. Our U.S. federal income tax returns for the years 2005, 2006, and 2007 remain subject to examination, and our state income tax returns for the years 2006 and 2007 remain subject to examination.
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This excerpt taken from the ANIK 10-Q filed Aug 8, 2008. Income taxes. Provisions for income taxes were $235,830 and
$574,611 for the three months ended June 30, 2008 and 2007,
respectively. Provisions for income
taxes were $563,431 and $1,163,344 for the six months ended June 30, 2008
and 2007, respectively. The year to date
effective tax rates for the provision were 28.3% and 31.2%, respectively. The decrease in effective tax rate was
primarily due to an increase in a Massachusetts investment tax credit as a
result of the expenditures related to the Company’s facility project.
This excerpt taken from the ANIK 10-Q filed May 7, 2008. Income
taxes.
Provision for income taxes was $327,601
and $588,733 related to income for the first quarter ended March 31, 2008
and 2007, respectively. The effective tax rates for the provision in the first
quarter of 2008 and 2007 were 34.7% and 32.9%, respectively. The increase in
effective tax rate was primarily due to our exclusion of any federal R&D
tax credit pending re-enactment of the federal research credit, and a decrease in
state investment tax credit as a result of the timing of the Company’s facility
project.
These excerpts taken from the ANIK 10-K filed Mar 12, 2008. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109 requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Beginning January 1, 2007, the Company began accounting for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a 51 Anika Therapeutics, Inc. and Subsidiary Notes to Consolidated Financial Statements (Continued) 2. Summary of Significant Accounting Policies (Continued) measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being ultimately realized upon ultimate settlement in accordance with FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" (FIN 48). If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. As a result of adoption of FIN 48 there was no change to the tax reserve for unrecognized tax benefits. As such, there was no change to retained earnings as of January 1, 2007. It is the Company's policy to classify accrued interest and penalties as part of the accrued FIN 48 liability and record the expense in the provision for income taxes. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109 requires the recognition of Beginning 51 Anika Therapeutics, Inc. and Subsidiary Notes to Consolidated Financial Statements (Continued) 2. Summary of Significant Accounting Policies (Continued) measurement This excerpt taken from the ANIK 10-Q filed Nov 9, 2007. Income
taxes. Provision for income taxes was
$634,033 and $961,536 related to income for the three months ended
September 30, 2007 and 2006, respectively. The Company recorded a
provision for income taxes of $1,797,377 and $2,519,579 for the nine months
ended September 30, 2007 and 2006, respectively. The effective tax rate
for the provision for the three and nine months ended September 30, 2007
were 26.1% and 29.2%, respectively. The effective tax rate for the provision
for the three and nine months ended September 30, 2006 were 42.1% and
41.5%, respectively. The reduction in effective tax rate in 2007 is primarily
due to a favorable impact of a state investment tax credit as a result of the
new facility project, a domestic manufacturing deduction, an increase in state
and federal research and development credits, and the tax benefits realized
from disqualifying events related to incentive stock option exercises.
This excerpt taken from the ANIK 10-Q filed Aug 7, 2007. Income taxes. Provision for income taxes was $574,611 and $938,367
related to income for the second quarter ended June 30, 2007 and 2006,
respectively. The Company recorded a
provision for income taxes of $1,163,344 and $1,558,043 for the six months ended
June 30, 2007 and 2006, respectively.
The effective tax rate for the provision for the three and six months
ended June 30, 2007 were 29.6% and 31.2%, respectively. The effective tax rate for the provision for
the three and six months ended June 30, 2006 were 41.0% and 41.1%,
respectively. The reduction in
effective tax rate in 2007 is primarily due to a favorable impact of a state
investment tax credit as a result of the new facility project, a domestic manufacturing deduction, an
increase in state and federal research and development credits, and the tax
benefits realized from disqualifying events related to incentive stock option
exercises.
This excerpt taken from the ANIK 10-Q filed May 9, 2007. Income taxes. Provision for income taxes was $588,733 and $619,676
related to income for the first quarter ended March 31, 2007 and 2006,
respectively. The effective tax rate for
the provision in the first quarter of 2007 and 2006 were 32.9% and 41.3%,
respectively. The reduction in
effective tax rate is primarily due to a favorable impact of the American Jobs
Creation Act of 2004, an increase in state and federal research and development
credits, and the tax benefits realized from disqualifying events related to
incentive stock option exercises during the quarter.
This excerpt taken from the ANIK 10-K filed Mar 13, 2007. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” SFAS No. 109 requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. This excerpt taken from the ANIK 10-Q filed Nov 8, 2006. Income taxes. Provision for income taxes was $961,536 and
$1,720,207 related to income for the quarters ended September 30, 2006 and
2005, respectively. The Company recorded
a provision for income taxes of $2,519,579 and $3,440,693 for the nine months
ended September 30, 2006 and 2005, respectively. The effective tax rate for the provision in
the three and nine months ended September 30, 2006 were 42% and 41%,
respectively. The effective tax rate for
the provision for the three and nine months ended September 30, 2005 was
approximately 40%. The adoption of SFAS
123R resulted in an increase in the 2006 effective tax rate as stock-based
compensation expense related to incentive stock options are non-deductible
until a disqualifying event occurs and the tax benefits are realized.
This excerpt taken from the ANIK 10-Q filed Aug 7, 2006. Income taxes. Provision
for income taxes was $938,367 and $904,478 related to income for the quarters ended June 30, 2006 and
2005, respectively. The Company recorded
a provision for income taxes of $1,558,043 and $1,720,486 for the six months
ended June 30, 2006 and 2005, respectively.
The effective tax rate for the provision in the three and six months
ended June 30, 2006 were 41.0% and 41.1%, respectively. The effective tax rate for the provision for
the three and six months ended June 30, 2005 was approximately 40.4%. The adoption of SFAS 123R resulted in an
increase in the 2006 effective tax rate as stock-based compensation expense
related to incentive stock options are non-deductible until a disqualifying
event occurs and the tax benefits are realized.
This excerpt taken from the ANIK 10-Q filed May 9, 2006. Income
taxes. Provision for income taxes was $619,676 for the quarter ended March 31,
2006 reflecting an effective tax rate of 41.3% compared to 40.4% for the quarter ended March 31, 2005.
The adoption of SFAS 123R resulted in an increase in
the 2006 effective tax rate as stock-based compensation expense related to
incentive stock options and stock appreciation rights that are non-deductible
until a disqualifying event occurs and the tax benefits are realized.
This excerpt taken from the ANIK 10-K filed Mar 9, 2006. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes”. SFAS No. 109 requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. 51 This excerpt taken from the ANIK 10-Q filed Nov 7, 2005. Income taxes.
Provision for income taxes was $1,720,000 and $3,441,000 for the three
and nine months ended September 30, 2005 compared to $734,000 and $1,841,000
for the same periods last year. The effective tax rate for the nine months
ended September 30, 2005 was approximately 40%. As a result of the receipt of
the $20,000,000 milestone payment in February 2004 from Ortho Biotech, the
operating results and forecasted future income supported an assertion that
ultimate realization of our deferred tax assets is more likely than not. Accordingly, we fully released the valuation
allowance and recorded a one-time tax benefit of $7,039,000 which is reflected
in the results of operations for the nine months ended September 30, 2004.
This excerpt taken from the ANIK 10-Q filed Aug 8, 2005. Income
taxes. Provision for income taxes was $905,000 and
$1,721,000 for the three and six months ended June 30, 2005 compared to
$603,000 and $1,107,000 for the same periods last year. The effective tax rate
for the six months ended June 30, 2005 was approximately 40%. As a result of
the receipt of the $20,000,000 milestone payment in February 2004 from Ortho
Biotech, the operating results and forecasted future income supported an
assertion that ultimate realization of our deferred tax assets is more likely
than not. Accordingly, we fully released
the valuation allowance and recorded a one-time tax benefit of $7,039,000 which
is reflected in the results of operations for the six months ended June 30,
2004.
This excerpt taken from the ANIK 10-Q filed May 10, 2005. Income
taxes. Provision
for income taxes was $816,000 for the quarter ended March 31, 2005
reflecting an effective tax rate of 40.4% compared to a net tax benefit of
$6,535,000 recorded for the quarter ended March 31, 2004, comprising a
provision for income taxes of $504,000 offset by a $7,039,000 benefit resulting
from the release of the valuation allowance.
As a result of the
receipt of the $20.0 million milestone payment in February 2004 from Ortho
Biotech, the operating results and forecasted future income supported an
assertion that ultimate realization of our deferred tax assets is more likely
than not at March 31, 2004.
Accordingly, we fully released the valuation allowance and
correspondingly recorded a one-time tax benefit of $7,039,000.
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This excerpt taken from the ANIK 10-K filed Mar 16, 2005. Income Taxes The Company provides for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes". SFAS No. 109 requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. | EXCERPTS ON THIS PAGE: |
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