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HBI » Topics » Income Tax Expense

This excerpt taken from the HBI 10-Q filed Oct 31, 2008.
Income Tax Expense
                                 
    Nine Months Ended        
    September 27,
 		  September 29,
 		  Higher
 		  Percent
    2008   2007   (Lower)   Change
    (dollars in thousands)
 
Income tax expense
  $ 34,512     $ 32,714     $ 1,798       5.5 %
 
Our estimated annual effective income tax rate was 24% in the nine months of 2008 compared to 30% in 2007. The higher income tax expense is attributable primarily to higher pre-tax income partially offset by a lower effective income tax rate. The lower effective income tax rate is primarily due to higher unremitted earnings from foreign subsidiaries in the nine months of 2008 taxed at rates less than the U.S. statutory rate. Our estimated annual effective tax rate is reflective of our strategic initiative to make substantial capital investments outside the United States in our global supply chain in 2008.
                                 
Net Income
                               
    Nine Months Ended        
    September 27,
 		  September 29,
 		  Higher
 		  Percent
    2008   2007   (Lower)   Change
    (dollars in thousands)
 
Net income
  $ 109,288     $ 76,334     $ 32,954       43.2 %
 
Net income for the nine months of 2008 was higher than 2007 primarily due to lower interest expense, lower restructuring and related charges and a lower effective income tax rate partially offset by lower gross profit resulting from higher manufacturing input costs.


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Table of Contents

This excerpt taken from the HBI 10-Q filed Aug 1, 2008.
Income Tax Expense
 
                                 
    Six Months Ended        
    June 28,
 		  June 30,
 		  Higher
 		  Percent
    2008   2007   (Lower)   Change
    (dollars in thousands)
 
Income tax expense
  $ 29,484     $ 16,045     $ 13,439       83.8 %


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Table of Contents

Our estimated annual effective income tax rate was 24% in the six months of 2008 compared to 30% in 2007. The higher income tax expense is attributable primarily to higher pre-tax income partially offset by a lower effective income tax rate. The lower effective income tax rate is primarily attributable to higher unremitted earnings from foreign subsidiaries in the six months of 2008 taxed at rates less than the U.S. statutory rate. Our estimated annual effective tax rate is reflective of our strategic initiative to make substantial capital investments outside the United States in our global supply chain in 2008.
 
This excerpt taken from the HBI 10-Q filed May 7, 2008.
Income Tax Expense
 
                                 
    Quarter Ended        
    March 29,
 		  March 31,
 		  Higher
 		  Percent
    2008   2007   (Lower)   Change
    (dollars in thousands)
 
Income tax expense
  $ 11,376     $  5,145     $   6,231       121.1 %
 
Our estimated annual effective income tax rate was 24% in the first quarter of 2008 compared to 30% in 2007. The lower effective income tax rate is attributable primarily to higher unremitted earnings from foreign subsidiaries in the first quarter of 2008 taxed at rates less than the U.S. statutory rate. Our estimated annual effective tax rate is reflective of our strategic initiative to make substantial capital investments outside the United States in our global supply chain in 2008.


26

Table of Contents

These excerpts taken from the HBI 10-K filed Feb 19, 2008.
Income Tax Expense
 
                                 
    Year Ended
 		    Year Ended
 		             
    July 1,
 		    July 2,
 		    Higher
 		    Percent
 		 
    2006     2005     (Lower)     Change  
    (dollars in thousands)  
 
Income tax expense
  $ 93,827     $ 127,007     $ (33,180 )     (26.1 )%
 
Our effective income tax rate decreased from 36.8% in 2005 to 22.5% in 2006. The decrease in our effective tax rate is attributable primarily to an $81.6 million charge in 2005 related to the repatriation of the earnings of foreign subsidiaries to the United States. Of this total, $50.0 million was recognized in connection with the remittance of current year earnings to the United States, and $31.6 million related to earnings repatriated under the provisions of the American Jobs Creation Act of 2004. The tax expense for both periods was impacted by a number of significant items which are set out in the reconciliation of our effective tax rate to the U.S. statutory rate in Note 17 titled “Income Taxes” to our Consolidated Financial Statements.


59

Table of Contents

Income
Tax Expense


 

































































































                                 

 

 

Year Ended



 

 

Year Ended



 

 

 

 

 

 

 

 

 

July 1,



 

 

July 2,



 

 

Higher



 

 

Percent



 

 

 

2006

 

 

2005

 

 

(Lower)

 

 

Change

 

 

 

(dollars in thousands)

 
 


Income tax expense


 

$

93,827

 

 

$

127,007

 

 

$

(33,180

)

 

 

(26.1

)%






 



Our effective income tax rate decreased from 36.8% in 2005 to
22.5% in 2006. The decrease in our effective tax rate is
attributable primarily to an $81.6 million charge in 2005
related to the repatriation of the earnings of foreign
subsidiaries to the United States. Of this total,
$50.0 million was recognized in connection with the
remittance of current year earnings to the United States, and
$31.6 million related to earnings repatriated under the
provisions of the American Jobs Creation Act of 2004. The tax
expense for both periods was impacted by a number of significant
items which are set out in the reconciliation of our effective
tax rate to the U.S. statutory rate in Note 17 titled
“Income Taxes” to our Consolidated Financial
Statements.





59




Table of Contents







This excerpt taken from the HBI 10-Q filed Nov 5, 2007.
Income Tax Expense
 
                                 
    Nine Months Ended        
    September 29,
 		  September 30,
 		  Higher
 		  Percent
    2007   2006   (Lower)   Change
    (dollars in thousands)
 
Income tax expense
  $ 32,714     $ 59,381     $ (26,667 )     (44.9 )%
 
Our effective income tax rate was 30.0% in the nine month period in 2007 compared to 24.4% in the same nine month period in 2006. The higher effective tax rate is attributable primarily to lower unremitted earnings from foreign subsidiaries in the nine month period in 2007 taxed at rates less than the U.S. statutory rate.
 
This excerpt taken from the HBI 10-Q filed Aug 3, 2007.
Income Tax Expense
 
                                 
    Six Months Ended     Higher
 		    Percent
 		 
    June 30, 2007     July 1, 2006     (Lower)     Change  
          (dollars in thousands)        
 
Income tax expense
  $ 16,045     $ 33,403     $ (17,358 )     (52.0 )%
 
Our effective income tax rate was 30.0% in the six month period in 2007 compared to 20.0% in the same six month period in 2006. The higher effective tax rate as an independent company is attributable primarily to the expiration of tax incentives for manufacturing in Puerto Rico, which were repealed effective after our tax year commencing after July 1, 2006 and lower unremitted earnings from foreign subsidiaries in the six month period in 2007 taxed at rates less than the U.S. statutory rate.


34

Table of Contents

This excerpt taken from the HBI 10-Q filed May 14, 2007.
Income Tax Expense
 
                                 
    Quarter Ended
 		  Quarter Ended
 		  Better
 		  Percent
    March 31, 2007   April 1, 2006   (Worse)   Change
    (dollars in thousands)
 
Income tax expense
  $ 5,145     $ 18,546     $ 13,401       72.3 %
 
Our effective income tax rate increased to 30.0% in the first quarter of 2007 from 19.9% in the same quarter of 2006. The increase in our effective tax rate as an independent company is attributable primarily to the expiration of tax incentives for manufacturing in Puerto Rico, which were repealed effective after our tax


26

Table of Contents

year commencing after July 1, 2006 and lower unremitted earnings from foreign subsidiaries in the first quarter of 2007 taxed at rates less than the U.S. statutory rate.
 
This excerpt taken from the HBI 8-K filed Nov 29, 2006.
Income Tax Expense
 
                                 
                Dollar
 		    Percent
 		 
    Fiscal 2005     Fiscal 2006     Change     Change  
    (dollars in thousands)        
 
Income tax expense
  $ 127,007     $ 93,827     $ (33,180 )     (26.1 )%
 
Our effective income tax rate decreased from 36.8% in fiscal 2005 to 22.5% in fiscal 2006. The decrease in our effective tax rate is attributable primarily to an $81.6 million charge in fiscal 2005 related to the repatriation of the earnings of foreign subsidiaries to the United States. Of this total, $50.0 million was recognized in connection with the remittance of current year earnings to the United States, and $31.6 million related to earnings repatriated under the provisions of the American Jobs Creation Act of 2004. The tax expense for both periods was impacted by a number of significant items which are set out in the reconciliation of our effective tax rate to the U.S. statutory rate in Note 19 titled “Income Taxes” to our Combined and Consolidated Financial Statements.
 
This excerpt taken from the HBI 10-Q filed Nov 13, 2006.
Income Tax Expense
 
                                 
    Quarter Ended
 		    Quarter Ended
 		    Dollar
 		    Percent
 		 
    September 30, 2006     October 1, 2005     Change     Change  
    (dollars in thousands)  
 
Income tax expense
  $ 25,978     $ 17,133     $ 8,845       51.6 %
 
Our effective income tax rate increased from 17.2% for the quarter ended October 1, 2005 to 34.0% for the quarter ended September 30, 2006. The increase in our effective tax rate as an independent company is attributable primarily to the expiration of tax incentives for manufacturing in Puerto Rico, which were repealed effective in fiscal 2007, lower unremitted earnings from foreign subsidiaries in the quarter ended September 30, 2006 taxed at rates less than the U.S. statutory rate, state taxes and non-deductible items related to the spin off.
 
This excerpt taken from the HBI 10-K filed Sep 28, 2006.
Income Tax Expense
 
                                 
                Dollar
 		    Percent
 		 
    Fiscal 2005     Fiscal 2006     Change     Change  
    (dollars in thousands)        
 
Income tax expense
  $ 127,007     $ 93,827     $ (33,180 )     (26.1 )%
 
Our effective income tax rate decreased from 36.8% in fiscal 2005 to 22.5% in fiscal 2006. The decrease in our effective tax rate is attributable primarily to an $81.6 million charge in fiscal 2005 related to the repatriation of the earnings of foreign subsidiaries to the United States. Of this total, $50.0 million was recognized in connection with the remittance of current year earnings to the United States, and $31.6 million related to earnings repatriated under the provisions of the American Jobs Creation Act of 2004. The tax expense for both periods was impacted by a number of significant items which are set out in the reconciliation of our effective tax rate to the U.S. statutory rate in Note 19 titled “Income Taxes” to our Combined and Consolidated Financial Statements.
 
This excerpt taken from the HBI 8-K filed Sep 5, 2006.

Income Tax Expense

 

    

Thirty-nine
Weeks Ended

April 2, 2005

   

Thirty-nine
Weeks Ended

April 1, 2006

    Dollar
Change		     Percent
Change		  
     (dollars in thousands)        

Income tax expense

    $ 97,911    $ 78,970    $ (18,941 )   (19.3 )%

Our effective income tax rate decreased from 30.1% in the thirty-nine weeks ended April 2, 2005 to 23.1% in the thirty-nine weeks ended April 1, 2006. The change in the effective tax rate is attributable primarily to a $31.6 million charge in fiscal 2005 related to earnings repatriated under the provisions of the American Jobs Creation Act of 2004. The tax expense for both periods was impacted by a number of significant items which are described in the reconciliation of our effective tax rate to the U.S. statutory rate in Note 11 titled “Income Taxes” to our Unaudited Interim Condensed Combined and Consolidated Financial Statements.

EXCERPTS ON THIS PAGE:

10-Q
Oct 31, 2008
10-Q
Aug 1, 2008
10-Q
May 7, 2008
10-K (2 sections)
Feb 19, 2008
10-Q
Nov 5, 2007
10-Q
Aug 3, 2007
10-Q
May 14, 2007
8-K
Nov 29, 2006
10-Q
Nov 13, 2006
10-K
Sep 28, 2006
8-K
Sep 5, 2006

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