|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ETH 10-Q filed Feb 6, 2008. an interpretation of FASB
Statement No. 109, Accounting for Income Taxes. As discussed
further in Note 3 to the Company’s consolidated financial statements, FIN 48
requires the recognition of a liability for unrecognized tax benefits, including
related interest and penalties. As of July 1, 2007, upon adoption of FIN 48, we
had unrecognized income tax benefits totaling $4.8 million and related accrued interest
and penalties of $1.4 million (after related tax benefits), all of which was
reclassified from current to long-term liabilities upon adoption. Since adopting FIN
48, our unrecognized tax benefits have decreased by $0.7 million and related interest
and penalties have increased $0.3 million. These changes resulted from a settlement
reached during the quarter ended December 31, 2007 with New York State for tax years
1998 through 2003 that reduced the unrecognized tax benefits and related interest by
$1.5 million and was partially offset by additional unrecognized tax benefits of $0.5
million in state exposures for our 2007 tax year. We do not currently anticipate
significant changes in such amounts over the next twelve months. The payment
obligations associated with these liabilities have not been reflected in our
contractual obligations disclosure referred to above due to the absence of scheduled
maturities and the resultant uncertainty regarding the timing of future cash outflows
associated with such obligations. Therefore, the timing of these payments cannot be
determined, except for amounts estimated to be payable within twelve months that are
included in current liabilities, of which there are none as December 31,
2007.
We believe that our cash flow from operations, together with our other available sources of liquidity, will be adequate to make all required payments of principal and interest on our debt, to permit anticipated capital expenditures, and to fund working capital and other cash requirements. As of December 31, 2007, we had working capital of $187.5 million and a current ratio of 2.44 to 1.
In addition to using available cash to fund changes in working capital, necessary capital expenditures, acquisition activity, the repayment of debt, and the payment of dividends, we have been authorized by our Board of Directors to repurchase our common stock, from time to time, either directly or through agents, in the open market at prices and on terms satisfactory to us. All of our common stock repurchases and retirements are recorded as treasury stock and result in a reduction of shareholders’ equity.
During the six months ended December 31, 2007 and 2006, we repurchased and/or retired the following shares of our common stock:
30
ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES
For each of the periods presented above, we funded our purchases of treasury stock with existing cash on hand and cash generated through current period operations. On July 24, 2007, the Board of Directors increased the then remaining share repurchase authorization to 2,500,000 shares. On November 13, 2007, the Board of Directors increased the then remaining share repurchase authorization to 2,000,000 shares. As of December 31, 2007, we had a remaining Board authorization to repurchase 1,905,000 shares.
Subsequent to December 31, 2007 and through the date of this filing, we repurchased, in five separate open market transactions, an additional 0.2 million shares of our common stock at a total cost of $5.3 million, representing an average price per share of $24.10. As of the date of this filing, we had a remaining Board authorization to repurchase 1.7 million shares.
This excerpt taken from the ETH 10-Q filed Nov 5, 2007. an interpretation
of FASB Statement No. 109, Accounting for Income
Taxes. As discussed further in Note 3, FIN 48
requires the recognition of a liability for unrecognized tax benefits,
including related interest and penalties. As of July 1, 2007, we had
unrecognized income tax benefits totaling $4.8 million and related accrued
interest and penalties of $1.4 million (after related tax benefits), all of
which was reclassified from current to long-term liabilities upon adoption.
Since adopting FIN 48, our unrecognized tax benefits and related interest
and penalties have increased by $0.3 million and $0.2 million,
respectively. We do not currently anticipate significant changes in such
amounts over the next twelve months. The payment obligations associated
with these liabilities have not been reflected in our contractual
obligations disclosure referred to above due to the absence of scheduled
maturities and the resultant uncertainty regarding the timing of future
cash outflows associated with such obligations. Therefore, the timing of
these payments
27
ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES
cannot be determined, except for amounts estimated to be payable within twelve months that are included in current liabilities, of which there are none as September 30, 2007.
We believe that our cash flow from operations, together with our other available sources of liquidity, will be adequate to make all required payments of principal and interest on our debt, to permit anticipated capital expenditures, and to fund working capital and other cash requirements. As of September 30, 2007, we had working capital of $213.5 million and a current ratio of 2.43 to 1.
In addition to using available cash to fund changes in working capital, necessary capital expenditures, acquisition activity, the repayment of debt, and the payment of dividends, we have been authorized by our Board of Directors to repurchase our common stock, from time to time, either directly or through agents, in the open market at prices and on terms satisfactory to us. All of our common stock repurchases and retirements are recorded as treasury stock and result in a reduction of shareholders equity.
During the three months ended September 30, 2007 and 2006, we repurchased and/or retired the following shares of our common stock:
Three Months Ended September 30,
For each of the periods presented above, we funded our purchases of treasury stock with existing cash on hand and cash generated through current period operations. On July 24, 2007, the Board of Directors increased the then remaining share repurchase authorization to 2,500,000 shares. As of September 30, 2007, we had a remaining Board authorization to repurchase 2,051,300 shares.
Subsequent to September 30, 2007 and through November 2, 2007, we repurchased, in 3 separate open market transactions, an additional 0.3 million shares of our common stock at a total cost of $7.8 million, representing an average price per share of $30.10. As of November 2, 2007, we had a remaining Board authorization to repurchase 1.8 million shares.
This excerpt taken from the ETH 10-K filed Aug 28, 2007. an interpretation
of FASB Statement No. 109, Accounting for Income Taxes. FIN
48 provides a comprehensive model for the recognition, measurement, presentation, and
disclosure in a company’s financial statements of uncertain tax positions taken,
or expected to be taken, on a tax return. If an income tax position exceeds a more
likely than not (i.e. greater than 50%) probability of success upon tax audit, based on
the technical merits of the position, the company is to recognize an income tax benefit
in its financial statements. Additionally, companies are required to accrue interest
and related penalties, if applicable, on all tax exposures consistent with the
respective jurisdictional tax laws. This interpretation is effective for fiscal years
beginning after December 15, 2006 (July 1, 2007 for the Company), with the cumulative
effect of the change in accounting principle, if any, recorded as an adjustment to
retained earnings as of the beginning of the period of adoption. We have substantially
completed our evaluation of those uncertain tax positions taken, or expected to be
taken, in connection with both our Federal and foreign income tax returns. As a result
of our analysis with respect to such Federal and foreign tax positions, we do not
anticipate that adoption of FIN 48 will have a significant impact on our consolidated
financial statements. This conclusion is subject to change due to (i) the finalization
of our adoption efforts and (ii) potential changes in the interpretation of FIN 48 by
the FASB and other regulatory bodies. Given the nature of our business, including the
operation of a national network of Company-owned retail design centers, the majority of
our tax exposure matters are typically of a state nature, the analysis of which is
often complicated and without legal precedent. As such, we are still in the process of
performing our analysis and evaluating the impact of adopting FIN 48 as it relates to
uncertain tax positions taken, or expected to be taken, on our various state income tax
returns.
In September 2006, the SEC issued SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, to address diversity in practice in quantifying financial statement misstatements. SAB No. 108 requires the quantification of misstatements based on their impact to both the balance sheet and the income statement to determine materiality. The guidance provides for a one-time cumulative-effect adjustment to correct for the SAB No. 108 approach. SAB No. 108 is effective for the Company for the fiscal year ending June 30, 2007. Adoption of this authorative guidance had no impact on our consolidated financial statements.
In September 2006, the FASB issued SFAS No. 157, This excerpt taken from the ETH 10-Q filed May 7, 2007. an interpretation of FASB Statement No. 109, Accounting for Income Taxes. FIN 48 provides a comprehensive model for the recognition, measurement, presentation, and disclosure in a company’s financial statements of uncertain tax positions taken, or expected to be taken, on a tax return. If an income tax position exceeds a more likely than not (i.e. greater than 50%) probability of success upon tax audit, the company is to recognize an income tax benefit in its financial statements. Additionally, companies are required to accrue interest and related penalties, if applicable, on all tax exposures consistent with the respective jurisdictional
tax laws. This interpretation is effective for fiscal years beginning after December 15, 2006 (July 1, 2007 for the Company). As such, we are currently in the process of evaluating the impact of this authoritative guidance on our consolidated financial statements.
In September 2006, the SEC issued SAB No. 108, This excerpt taken from the ETH 10-Q filed Feb 7, 2007. an interpretation of FASB Statement No. 109, Accounting for Income Taxes. FIN 48 provides a comprehensive model for the recognition, measurement, presentation, and disclosure in a company’s financial statements of uncertain tax positions taken, or expected to be taken, on a tax return. If an income tax position exceeds a more likely than not (i.e. greater than 50%) probability of success upon tax audit, the company is to recognize an income tax benefit in its financial statements. Additionally, companies are required to accrue interest and related penalties, if applicable, on all tax exposures consistent with the respective jurisdictional
tax laws. This interpretation is effective for fiscal years beginning after December 15, 2006 (July 1, 2007 for the Company). As such, we are currently in the process of evaluating the impact of this authoritative guidance on our consolidated financial statements.
In September 2006, the SEC issued SAB No. 108, | EXCERPTS ON THIS PAGE:
RELATED TOPICS for ETH:
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
