CTV » Topics » Income taxes

This excerpt taken from the CTV 10-Q filed Apr 28, 2009.

Income taxes

Our effective income tax rate was 31.9% for the three months ended March 31, 2009 which reflects the provision of U.S. taxes on a portion of our current year foreign earnings in anticipation of repatriating cash for debt service, non-recognition of tax benefits in certain foreign jurisdictions where utilization of losses is limited and benefits from lower tax rates on the earnings of certain foreign subsidiaries. The effective tax rate for the three months ended March 31, 2008 was 17.4% which reflects the impact of purchase accounting adjustments, non-recognition of tax benefits in certain foreign jurisdictions where utilization of losses is limited and benefits from lower tax rates on the earnings of certain foreign subsidiaries.

 

17


Table of Contents
These excerpts taken from the CTV 10-K filed Feb 26, 2009.

Income taxes

Our effective income tax rate was 3.4% for 2008 compared to 31.5% for 2007. The loss before income taxes for 2008 includes $397.1 of goodwill and other intangible asset impairment charges for which we have recognized $37.5 million in tax benefits. The 2008 loss before income taxes also includes $28.1 million of charges primarily related to restructuring initiatives for which we do not expect to realize tax benefits. The merger of the legacy Andrew Brazilian entity into the legacy CommScope Brazilian entity resulted in the partial release of valuation allowances carried against the legacy CommScope Brazilian net operating loss carryforwards. This release provided a $5.0 million benefit to our tax provision for 2008. Also included in the income tax provision for 2008 is a benefit of $3.9 million related to the settlement of various U.S. and foreign income tax audits. The effective rate excluding these items was 20.4% for 2008. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, partially offset by U.S. state income taxes and valuation allowances for losses in certain foreign jurisdictions for which we cannot record tax benefits. The effective tax rate (excluding the items noted above) decreased from 2007 primarily due to a shift in the geographic mix of earnings as a result of the Andrew acquisition.

Income taxes

Our effective income tax rate was 31.5% for 2007 compared to 32.7% for 2006 (31.9% excluding the impact of the gain on the OFS BrightWave note receivable). Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%. The lower effective tax rate for 2007 primarily reflects changes in the mix of our taxable earnings between domestic and foreign operations.

Income Taxes

Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized.

The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48) “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” as of January 1, 2007 and recognized the impact of implementing FIN 48 as an adjustment to Retained Earnings. Under FIN 48, tax benefits that result from uncertain tax positions may be recognized only if they are considered more likely than not to be sustainable, based on their technical merits. The amount of benefit to be recognized is the largest amount of tax benefit that is at least 50% likely to be realized.

The cumulative amount of undistributed earnings from foreign subsidiaries for which no U.S. taxes have been provided was $589.0 million as of December 31, 2008. In addition, the Company does not provide for U.S. taxes related to the foreign currency transaction gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future, and the foreign currency gains and losses are therefore recorded to accumulated other comprehensive income (loss).

 

59


Table of Contents

CommScope, Inc.

Notes to Consolidated Financial Statements—(Continued)

(In Thousands, Unless Otherwise Noted)

 

This excerpt taken from the CTV 10-Q filed Nov 5, 2008.

Income taxes

 

Our effective income tax rate was 12.2% and 18.8% for the three and nine months ended September 30, 2008, respectively, compared to 32.0% for the three and nine months ended September 30, 2007. Income before income taxes for the three and nine months ended September 30, 2008 includes $1.4 million and $26.9 million, respectively, of charges primarily related to restructuring initiatives, for which we do not expect to realize tax benefits. The merger of the legacy Andrew Brazilian entity into the legacy CommScope Brazilian entity resulted in the partial release of valuation allowances carried against the legacy CommScope Brazilian net operating loss carryforwards.  This release provided a $5.0 million benefit to our tax provision for the three and nine months ended September 30, 2008. Also included in the income tax provision for the nine months ended September 30, 2008 is a benefit of $3.9 million related to the settlement of various U.S. and foreign income tax audits. The effective rate excluding these items was 17.1% and 21.0% for the three and nine months ended September 30, 2008, respectively. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, partially offset by U.S. state income taxes and valuation allowances for losses in certain foreign jurisdictions for which we cannot record tax benefits.  The effective tax rate (excluding the items noted above) decreased from the comparable prior year periods primarily due to a shift in the geographic mix of earnings as a result of the Andrew acquisition.

 

This excerpt taken from the CTV 10-Q filed Aug 6, 2008.

Income taxes

 

Our effective income tax rate was 29.6% and 33.3% for the three and six months ended June 30, 2008, respectively, compared to 32.1% and 31.6% for the three and six months ended June 30, 2007, respectively. Income before income taxes for the three and six months ended June 30, 2008 includes $22.3 million and $25.5 million, respectively, of charges primarily related to restructuring initiatives, for which we do not expect to realize tax benefits. Also included in the income tax provision for the

 

23



Table of Contents

 

three and six months ended June 30, 2008 is a benefit of $3.9 million related to the settlement of various U.S. and foreign income tax audits. The effective rate excluding these items was 26.1% and 26.6% for the three and six months ended June 30, 2008, respectively. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, partially offset by U.S. state income taxes and valuation allowances for losses in certain foreign jurisdictions for which we cannot record tax benefits.  The effective tax rate (excluding the items noted above) decreased from the comparable prior year periods primarily due to a shift in the geographic mix of earnings as a result of the Andrew acquisition.

 

This excerpt taken from the CTV 10-Q filed May 7, 2008.

Income taxes

 

Our effective income tax rate was 17.4% for the three months ended March 31, 2008 compared to 31.0% for the three months ended March 31, 2007. The tax provision for the three months ended March 31, 2008 reflects the impact of purchase accounting adjustments, primarily related to the increased costs of sales as a result of the step-up of inventory to its estimated fair value.  The effective rate excluding these purchase accounting items was 35.6%. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, offset by U.S. state income taxes and valuation allowances for losses in certain foreign jurisdictions for which we cannot record tax benefits.  The effective tax rate (excluding purchase accounting) increased from the comparable prior year period due to the expiration of the U.S. research and development tax credit, tax rate increases enacted in China and an unfavorable shift in the geographic mix of earnings.

 

This excerpt taken from the CTV 10-K filed Feb 28, 2008.

Income Taxes

        Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized.

        The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48) "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" as of January 1, 2007 and recognized the impact of implementing FIN 48 as an adjustment to Retained Earnings. Under FIN 48, tax benefits that result from uncertain tax positions may be recognized only if they are considered more likely than not to be sustainable, based on their technical merits. The amount of benefit to be recognized is the largest amount of tax benefit that is at least 50% likely to be realized.

        The cumulative amount of undistributed earnings from foreign subsidiaries, including the newly acquired Andrew foreign subsidiaries, for which no U.S. taxes have been provided was $730.1 million as of December 31, 2007. In addition, the Company does not provide for U.S. taxes related to the foreign currency transaction gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future, and the foreign currency gains and losses are therefore recorded on a pretax basis to accumulated other comprehensive income (loss).

This excerpt taken from the CTV 10-Q filed Nov 7, 2007.

Income taxes

 

Our effective income tax rate was 32% for the three and nine months ended September 30, 2007 compared to 34% and 32%, excluding the impact of the gain on the OFS note receivable, for the three and nine months ended September 30, 2006, respectively. Our effective income tax rate is generally lower than the U.S. statutory rate due to benefits received from international activities that are taxed at lower rates. Differences in rates between periods generally result from changes in the relationship of domestic to international income and among the various international jurisdictions where we have activities.

 

This excerpt taken from the CTV 10-Q filed Aug 2, 2007.

Income taxes

Our effective income tax rate was 32% for the three and six months ended June 30, 2007 compared to 27% and 30%, excluding the impact of the gain on the OFS note receivable, for the three and six months ended June 30, 2006, respectively. Our effective income tax rate is generally lower than the U.S. statutory rate due to benefits received from international activities that are taxed at lower rates.  The higher rates for the 2007 period are due to changes in the relationship of domestic to international income and among the various international jurisdictions where we have activities.  In addition, we realized benefits in the second quarter of 2006 as a result of favorable outcomes on various matters raised during federal and state income tax audits that lowered the effective tax rate for the three and six months ended June 30, 2006.

This excerpt taken from the CTV 10-Q filed May 1, 2007.

Income taxes

Our effective income tax rate was 31.0% for the three months ended March 31, 2007 compared to 36.5% for the three months ended March 31, 2006. The tax provision for the three months ended March 31, 2006 included $0.4 million related to adjustments of reserves established as a result of matters raised by various taxing authorities during audits of prior tax returns and other adjustments that resulted from the completion or amendment of prior year tax returns. The effective rate excluding these items was 34.3%. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, offset to some extent by state income taxes. The benefits from international activities in lower tax rate jurisdictions were greater during the three months ended March 31, 2007 than during the three months ended March 31, 2006 due to changes in the mix of earnings among foreign and domestic entities.

16




 

This excerpt taken from the CTV 10-K filed Mar 1, 2007.

Income Taxes

Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized.

The cumulative amount of undistributed earnings from foreign subsidiaries for which no U.S. taxes have been provided was $79.9 million as of December 31, 2006. In addition, the Company does not provide for taxes related to the foreign currency transaction gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future, and the foreign currency gains and losses are therefore recorded on a pretax basis to accumulated other comprehensive income (loss).

This excerpt taken from the CTV 10-Q filed Nov 2, 2006.

Income taxes

Our effective income tax rate, excluding the impact of the gain on the OFS note receivable (see discussion below), was 34% and 32% for the three and nine months ended September 30, 2006, respectively, compared to 41% and 33% for the three and nine months ended September 30, 2005, respectively. The reduction in our effective income tax rate for the three months ended September 30, 2006 compared to the prior year was primarily due to a $2.2 million charge taken during the three months ended September 30, 2005 to establish a valuation allowance for deferred tax assets related to net operating loss carryforwards at one of our international subsidiaries.  The effective tax rate for the three months ended September 30, 2006 reflects the benefits derived from our international activities in lower tax rate jurisdictions, partially offset by the impact of net additional tax reserves established for matters raised during various state and federal tax audits. 

The effective rate for the nine months ended September 30, 2006 reflects benefits from international activities that are taxed at lower rates and benefits realized as a result of favorable outcomes on various matters raised during federal and state income tax audits, partially offset by the impact of losses incurred in certain foreign jurisdictions for which no tax benefits have been recognized.  The effective rate for the nine months ended September 30, 2005 reflects benefits from international activities that are taxed at lower rates offset primarily by the impact of the valuation allowances established during the three months ended September 30, 2005 at one of our international subsidiaries.

This excerpt taken from the CTV 10-Q filed Aug 3, 2006.

Income taxes

Our effective income tax rate, excluding the impact of the gain on the OFS note receivable (see discussion below), was 27% and 30% for the three and six months ended June 30, 2006, respectively, compared to 29% and 28% for the three and six months ended June 30, 2005, respectively. The reduction in our effective income tax rate for the three months ended June 30, 2006 compared to the prior year was primarily due to benefits realized as a result of favorable outcomes on various matters raised during federal and state income tax audits, partially offset by losses incurred in certain foreign jurisdictions for which no tax benefits have been recognized.  The increase in our effective rate for the six months ended June 30, 2006 compared to the prior year was primarily due to reduced benefits from international activities that are taxed at lower rates due to changes in the mix of earnings among foreign and domestic entities, partially offset by the benefits realized as a result of favorable outcomes on various matters raised during federal and state income tax audits.

This excerpt taken from the CTV 10-Q filed May 5, 2006.

Income taxes

 

Our effective income tax rate was 36.5% for the three months ended March 31, 2006 compared to 24.7% for the three months ended March 31, 2005. The tax provision for the three months ended March 31, 2006 included $0.4 million related to adjustments of reserves established as a result of matters raised by various taxing authorities during audits of prior tax returns and other adjustments that resulted from the completion or amendment of prior year tax returns. The effective rate excluding these items that relate to prior years was 34.3%. Our effective tax rate reflects the benefits derived from significant operations outside the U.S., which are generally taxed at rates lower than the U.S. statutory rate of 35%, offset to some extent by state income taxes. The benefits from international activities in lower tax rate jurisdictions were greater during the three months ended March 31, 2005 than during the three months ended March 31, 2006 due to changes in the mix of earnings among foreign and domestic entities.

 

This excerpt taken from the CTV 10-K filed Mar 1, 2006.
Income Taxes

Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized.

The cumulative amount of undistributed earnings from foreign subsidiaries for which no U.S. taxes have been provided was $44.4 million as of December 31, 2005. In addition, the Company does not provide for taxes related to the foreign currency transaction gains and losses on its long-term intercompany loans

52




with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future and the foreign currency gains and losses are therefore recorded on a pretax basis to accumulated other comprehensive loss.

This excerpt taken from the CTV 10-Q filed Nov 7, 2005.

Income taxes

 

Our effective income tax rate was 41% and 33% for the three and nine months ended September 30, 2005, respectively, compared to 17% and 33% for the three and nine months ended September 30, 2004, respectively.  During the three months ended September 30, 2005, we recorded a non-cash charge of approximately $2.2 million related to establishing a valuation allowance for deferred tax assets.  These deferred tax assets relate to net operating loss carryforwards at one of our international subsidiaries where the available evidence does not indicate that it is more likely than not that the deferred tax asset will be realizable.

 

The effective income tax rates excluding the impact of providing the valuation allowance for the three and nine months ended September 30, 2005 were 29% and 28%, respectively.  These effective income tax rates are lower than the U.S. corporate tax rate of 35% due to benefits derived from our international activities in lower tax rate jurisdictions.

 

This excerpt taken from the CTV 10-Q filed Aug 5, 2005.

Income taxes

Our effective income tax rate was 29% and 28% for the three and six months ended June 30, 2005, respectively, compared to 35% and 36% for the three and six months ended June 30, 2004, respectively. The reduction in our effective income tax rate was primarily due to continuing benefits derived from our expanded international activities in lower tax rate jurisdictions.

This excerpt taken from the CTV 10-Q filed May 9, 2005.

Income taxes

 

Our effective income tax rate was 24.7% for the three months ended March 31, 2005 compared to 31% for the three months ended March 31, 2004.  The reduction in our effective income tax rate was primarily due to continuing benefits derived from our expanded international activities in lower tax rate jurisdictions.

 

21



 

These excerpts taken from the CTV 10-K filed Mar 15, 2005.

Income Taxes

The Company is organized as a limited liability company and is treated as a partnership for income tax purposes.  FENA and CommScope are responsible for the payment of taxes due on the earnings of the Company.  The consolidated financial statements of the Company include wholly-owned corporations that are responsible for paying taxes as a corporation.  For these corporations, the asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.  Valuation allowances are recorded when necessary to reduce deferred tax assets to the realizable amounts when it becomes more likely than not the deferred tax assets will not be realized by the Company.

 

Income Taxes

        Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax bases of assets and liabilities. Investment tax credits are recorded using the flow-through method. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized.

        The Company had no cumulative net undistributed earnings from foreign subsidiaries as of December 31, 2004. In addition, the Company does not provide for taxes related to the foreign currency transaction gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future and the foreign currency gains and losses are therefore recorded on a pretax basis to accumulated other comprehensive loss.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki