Calumet Specialty Products Partners, L.P. (CLMT)

CLMT » Topics » Income Taxes

These excerpts taken from the CLMT 10-K filed Mar 4, 2009.
Income Taxes
 
As previously disclosed in our Annual Report on Form 10-K for the year ending December 31, 2007, we requested a ruling from the IRS with respect to the qualifying nature of income generated from the Penreco assets and business operations. In the fourth quarter of 2008, the IRS provided a favorable ruling, upon which we will rely to own the Penreco assets and operate the Penreco business within our existing flow-through tax structure.
 
Income
Taxes



 



As previously disclosed in our Annual Report on Form
10-K for the
year ending December 31, 2007, we requested a ruling from
the IRS with respect to the qualifying nature of income
generated from the Penreco assets and business operations. In
the fourth quarter of 2008, the IRS provided a favorable ruling,
upon which we will rely to own the Penreco assets and operate
the Penreco business within our existing flow-through tax
structure.


 




Income Taxes
 
The Company, as a partnership, is not liable for income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries Calumet Lubricants Co., Limited Partnership and Calumet Shreveport, LLC. However, Calumet Sales Company Incorporated (“Calumet Sales Company”), a wholly-owned subsidiary of the Company, is a corporation and as a result, is liable for income taxes on its earnings. Income taxes on the earnings of the Company, with the exception of Calumet Sales Company, are the responsibility of the partners, with earnings of the Company included in partners’ earnings.
 
In the event that the Company’s taxable income did not meet certain qualification requirements, the Company would be taxed as a corporation. Related to these qualifications, the Company requested a ruling from the Internal Revenue Service (“IRS”) with respect to the qualifying nature of income generated from the Penreco assets and business operations. In the fourth quarter of 2008, the IRS provided a favorable ruling. Interest and penalties related to income taxes, if any, would be recorded in income tax expense. The Company had no unrecognized tax benefits as of December 31, 2008 and 2007. The Company’s income taxes generally remain subject to examination by major tax jurisdictions for a period of three years.
 
Net income for financial statement purposes may differ significantly from taxable income reportable to partners as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the Company’s partnership agreement. Individual partners have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each partner’s tax accounting, which is partially dependent upon the partner’s tax position, differs from the accounting followed in the consolidated financial statements. Accordingly, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner’s tax attributes in the partnership is not readily available.
 
Effective January 1, 2007, the Company adopted the provisions of Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”), an interpretation of SFAS Statement No. 109, Accounting for Income Taxes. The Interpretation clarifies the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position to be taken or expected to be taken in a tax return. The implementation of the Interpretation did not have a material effect on the Company’s financial position, results of operations or cash flows.
 
Income
Taxes



 



The Company, as a partnership, is not liable for income taxes on
the earnings of Calumet Specialty Products Partners, L.P. and
its wholly-owned subsidiaries Calumet Lubricants Co., Limited
Partnership and Calumet Shreveport, LLC. However, Calumet Sales
Company Incorporated (“Calumet Sales Company”), a
wholly-owned subsidiary of the Company, is a corporation and as
a result, is liable for income taxes on its earnings. Income
taxes on the earnings of the Company, with the exception of
Calumet Sales Company, are the responsibility of the partners,
with earnings of the Company included in partners’ earnings.


 



In the event that the Company’s taxable income did not meet
certain qualification requirements, the Company would be taxed
as a corporation. Related to these qualifications, the Company
requested a ruling from the Internal Revenue Service
(“IRS”) with respect to the qualifying nature of
income generated from the Penreco assets and business
operations. In the fourth quarter of 2008, the IRS provided a
favorable ruling. Interest and penalties related to income
taxes, if any, would be recorded in income tax expense. The
Company had no unrecognized tax benefits as of December 31,
2008 and 2007. The Company’s income taxes generally remain
subject to examination by major tax jurisdictions for a period
of three years.


 



Net income for financial statement purposes may differ
significantly from taxable income reportable to partners as a
result of differences between the tax bases and financial
reporting bases of assets and liabilities and the taxable income
allocation requirements under the Company’s partnership
agreement. Individual partners have different investment bases
depending upon the timing and price of acquisition of their
partnership units. Furthermore, each partner’s tax
accounting, which is partially dependent upon the partner’s
tax position, differs from the accounting followed in the
consolidated financial statements. Accordingly, the aggregate
difference in the basis of net assets for financial and tax
reporting purposes cannot be readily determined because
information regarding each partner’s tax attributes in the
partnership is not readily available.


 



Effective January 1, 2007, the Company adopted the
provisions of Financial Interpretation No. 48,
Accounting for Uncertainty in Income Taxes (the
“Interpretation”), an interpretation of
SFAS Statement No. 109, Accounting for Income
Taxes
. The Interpretation clarifies the accounting for
uncertainty in income taxes by prescribing a recognition
threshold and measurement methodology for the financial
statement recognition and measurement of a tax position to be
taken or expected to be taken in a tax return. The
implementation of the Interpretation did not have a material
effect on the Company’s financial position, results of
operations or cash flows.


 




Income Taxes
 
The Company, as a limited liability company, is not liable for income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries Calumet Lubricants Co., Limited Partnership, Calumet Penreco, LLC and Calumet Shreveport, LLC. However, Calumet Sales Company Incorporated (“Calumet Sales Company”), a wholly-owned subsidiary of the Company, is a corporation and as a result, is liable for income taxes on its earnings. Income taxes on the earnings of the Company, with the exception of Calumet Sales Company, are the responsibility of the members, with earnings of the Company included in members’ earnings.
 
In the event that the Partnership’s taxable income did not meet certain qualification requirements, it would be taxed as a corporation. Related to these qualifications, the Partnership requested a ruling from the Internal Revenue Service (“IRS”) with respect to the qualifying nature of income generated from the Penreco assets and business operations. In the fourth quarter of 2008, the IRS provided a favorable ruling. Interest and penalties related to income taxes, if any, would be recorded in income tax expense. The Company had no unrecognized tax benefits as of December 31, 2008. The Company’s income taxes generally remain subject to examination by major tax jurisdictions for a period of three years.
 
Effective January 1, 2007, the Company adopted the provisions of Financial Interpretation No. 48,Accounting for Uncertainty in Income Taxes (the “Interpretation”), an interpretation of SFAS Statement No. 109, Accounting for Income Taxes. The Interpretation clarifies the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position to be taken or expected to be taken in a tax return. The implementation of the Interpretation did not have a material effect on the Company’s financial position, results of operations or cash flows.
 
Income
Taxes



 



The Company, as a limited liability company, is not liable for
income taxes on the earnings of Calumet Specialty Products
Partners, L.P. and its wholly-owned subsidiaries Calumet
Lubricants Co., Limited Partnership, Calumet Penreco, LLC and
Calumet Shreveport, LLC. However, Calumet Sales Company
Incorporated (“Calumet Sales Company”), a wholly-owned
subsidiary of the Company, is a corporation and as a result, is
liable for income taxes on its earnings. Income taxes on the
earnings of the Company, with the exception of Calumet Sales
Company, are the responsibility of the members, with earnings of
the Company included in members’ earnings.


 



In the event that the Partnership’s taxable income did not
meet certain qualification requirements, it would be taxed as a
corporation. Related to these qualifications, the Partnership
requested a ruling from the Internal Revenue Service
(“IRS”) with respect to the qualifying nature of
income generated from the Penreco assets and business
operations. In the fourth quarter of 2008, the IRS provided a
favorable ruling. Interest and penalties related to income
taxes, if any, would be recorded in income tax expense. The
Company had no unrecognized tax benefits as of December 31,
2008. The Company’s income taxes generally remain subject
to examination by major tax jurisdictions for a period of three
years.


 



Effective January 1, 2007, the Company adopted the
provisions of Financial Interpretation No. 48,Accounting
for Uncertainty in Income Taxes
(the
“Interpretation”), an interpretation of
SFAS Statement No. 109, Accounting for Income
Taxes
. The Interpretation clarifies the accounting for
uncertainty in income taxes by prescribing a recognition
threshold and measurement methodology for the financial
statement recognition and measurement of a tax position to be
taken or expected to be taken in a tax return. The
implementation of the Interpretation did not have a material
effect on the Company’s financial position, results of
operations or cash flows.


 




These excerpts taken from the CLMT 10-K filed Mar 4, 2008.
Income Taxes
 
The Company, as a partnership, is not liable for income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries Calumet Lubricants Co., Limited Partnership and Calumet Shreveport, LLC. However, Calumet Sales Company Incorporated “Calumet Sales Company”), a wholly-owned subsidiary of the Company, is a corporation and as a result, is liable for income taxes on its earnings. Income taxes on the earnings of the Company, with the exception of Calumet Sales Company, are the responsibility of the partners, with earnings of the Company included in partners’ earnings.


108


Table of Contents

 
CALUMET GP, LLC
 
NOTES TO CONSOLIDATED BALANCE SHEET — (Continued)
(in thousands, except operating, unit and per unit data)
 
In the event that the Company’s taxable income did not meet certain qualification requirements, the Company would be taxed as a corporation. Interest and penalties related to income taxes, if any, would be recorded in income tax expense. The Company had no unrecognized tax benefits as of December 31, 2007. The Company’s income taxes generally remain subject to examination by major tax jurisdictions for a period of three years.
 
Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the partnership agreement. Individual unitholders have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each unitholder’s tax accounting, which is partially dependent upon the unitholder’s tax position, differs from the accounting followed in the consolidated financial statements. Accordingly, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes in the partnership is not readily available.
 
Income
Taxes



 



The Company, as a partnership, is not liable for income taxes on
the earnings of Calumet Specialty Products Partners, L.P. and
its wholly-owned subsidiaries Calumet Lubricants Co., Limited
Partnership and Calumet Shreveport, LLC. However, Calumet Sales
Company Incorporated “Calumet Sales Company”), a
wholly-owned subsidiary of the Company, is a corporation and as
a result, is liable for income taxes on its earnings. Income
taxes on the earnings of the Company, with the exception of
Calumet Sales Company, are the responsibility of the partners,
with earnings of the Company included in partners’ earnings.





108





Table of Contents





 




CALUMET
GP, LLC




 




NOTES TO
CONSOLIDATED BALANCE SHEET — (Continued)






(in
thousands, except operating, unit and per unit data)


 



In the event that the Company’s taxable income did not meet
certain qualification requirements, the Company would be taxed
as a corporation. Interest and penalties related to income
taxes, if any, would be recorded in income tax expense. The
Company had no unrecognized tax benefits as of December 31,
2007. The Company’s income taxes generally remain subject
to examination by major tax jurisdictions for a period of three
years.


 



Net income for financial statement purposes may differ
significantly from taxable income reportable to unitholders as a
result of differences between the tax bases and financial
reporting bases of assets and liabilities and the taxable income
allocation requirements under the partnership agreement.
Individual unitholders have different investment bases depending
upon the timing and price of acquisition of their partnership
units. Furthermore, each unitholder’s tax accounting, which
is partially dependent upon the unitholder’s tax position,
differs from the accounting followed in the consolidated
financial statements. Accordingly, the aggregate difference in
the basis of net assets for financial and tax reporting purposes
cannot be readily determined because information regarding each
unitholder’s tax attributes in the partnership is not
readily available.


 




This excerpt taken from the CLMT 8-K filed Nov 9, 2007.
Income Taxes
 
The Company, as a partnership, is not liable for income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries Calumet Lubricants Co., Limited Partnership and Calumet Shreveport. However, Calumet Sales Company Incorporated, a wholly-owned subsidiary of the Company, is a corporation and as a result, is liable for income taxes on its earnings. Income taxes on the earnings of the Company, with the exception of Calumet Sales Company Incorporated, are the responsibility of the partners, with earnings of the Company included in partners’ earnings.
 
Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the partnership agreement. Individual unitholders have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each unitholder’s tax accounting, which is partially dependent upon the unitholder’s tax position, differs from the accounting followed in the consolidated financial statements. Accordingly, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes in the partnership is not readily available.
 
This excerpt taken from the CLMT 10-K filed Feb 23, 2007.
Income Taxes
 
The Company, as a partnership, is not liable for income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries Calumet Lubricants Co., Limited Partnership and Calumet Shreveport. However, Calumet Sales Company Incorporated, a wholly-owned subsidiary of the Company, is a corporation and as a result, is liable for income taxes on its earnings. Income taxes on the earnings of the Company, with the exception of Calumet Sales Company Incorporated, are the responsibility of the partners, with earnings of the Company included in partners’ earnings.
 
Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the partnership agreement. Individual unitholders have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each unitholder’s tax accounting, which is partially dependent upon the unitholder’s tax position, differs from the accounting followed in the consolidated financial statements. Accordingly, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes in the partnership is not readily available.
 
This excerpt taken from the CLMT 10-K filed Mar 20, 2006.
Income Taxes
 
The Company, as a partnership, is not liable for income taxes. Income taxes are the responsibility of the partners, with earnings of the Company included in partners’ earnings.
 
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