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These excerpts taken from the HXL 10-K filed Feb 12, 2009. Provision (Benefit) for Income Taxes:
During 2008, we recorded a tax provision of $15.6 million or 14.1%
effective tax rate. Included in the 2008 provision were certain tax
benefits relating to the implementation of tax planning strategies which
enabled the Company to revise its estimate of U.S. net operating loss (NOL) and
foreign tax credit (FTC) carry-forwards expected to be realized in the future.
The tax provision for year included $26.2 million of net tax benefits primarily
attributable to changing prior year foreign taxes paid from a deduction to a
credit and the reversal of valuation allowances against net operating losses
and the reinstatement of net operating losses which were previously written
off. The Company has additional FTCs for which we have recorded valuation
allowances, but we will not reverse these valuation allowances until such time
that we believe it is more likely than not that they are realizable. Excluding
these benefits the adjusted effective tax rate for the year was 37.8%. The
2007 provision of $33.4 million or 36.1% effective tax rate included a $1.9
million benefit, which includes an adjustment of $2.3 million to certain
prior period balances to primarily record additional deferred tax assets
arising from state net operating loss carry-forwards, offset by other discrete
items of $0.4 million. The 2006 provision of $34.7 million or 43.5%
effective tax rate included a $4.5 million benefit for the reversal of a
valuation allowance against our U.S. deferred tax assets related to capital
losses. Excluding these benefits
the adjusted effective tax was 38.2% for 2007 and 49.2% in 2006. We
believe adjusted effective tax rate, which is a non GAAP measure, is meaningful
since it provides insight to the tax rate of ongoing operations.
Provision (Benefit) for Income Taxes:
During 2008, we recorded a tax provision of $15.6 million or 14.1%
effective tax rate. Included in the 2008 provision were certain tax
benefits relating to the implementation of tax planning strategies which
enabled the Company to revise its estimate of U.S. net operating loss (NOL) and
foreign tax credit (FTC) carry-forwards expected to be realized in the future.
The tax provision for year included $26.2 million of net tax benefits primarily
attributable to changing prior year foreign taxes paid from a deduction to a
credit and the reversal of valuation allowances against net operating losses
and the reinstatement of net operating losses which were previously written
off. The Company has additional FTCs for which we have recorded valuation
allowances, but we will not reverse these valuation allowances until such time
that we believe it is more likely than not that they are realizable. Excluding
these benefits the adjusted effective tax rate for the year was 37.8%. The
2007 provision of $33.4 million or 36.1% effective tax rate included a $1.9
million benefit, which includes an adjustment of $2.3 million to certain
prior period balances to primarily record additional deferred tax assets
arising from state net operating loss carry-forwards, offset by other discrete
items of $0.4 million. The 2006 provision of $34.7 million or 43.5%
effective tax rate included a $4.5 million benefit for the reversal of a
valuation allowance against our U.S. deferred tax assets related to capital
losses. Excluding these benefits
the adjusted effective tax was 38.2% for 2007 and 49.2% in 2006. We
believe adjusted effective tax rate, which is a non GAAP measure, is meaningful
since it provides insight to the tax rate of ongoing operations.
Provision (Benefit) for Income Taxes:
During 2008, we recorded a tax provision of $15.6 million or 14.1%
effective tax rate. Included in the 2008 provision were certain tax
benefits relating to the implementation of tax planning strategies which
enabled the Company to revise its estimate of U.S. net operating loss (NOL) and
foreign tax credit (FTC) carry-forwards expected to be realized in the future.
The tax provision for year included $26.2 million of net tax benefits primarily
attributable to changing prior year foreign taxes paid from a deduction to a
credit and the reversal of valuation allowances against net operating losses
and the reinstatement of net operating losses which were previously written
off. The Company has additional FTCs for which we have recorded valuation
allowances, but we will not reverse these valuation allowances until such time
that we believe it is more likely than not that they are realizable. Excluding
these benefits the adjusted effective tax rate for the year was 37.8%. The
2007 provision of $33.4 million or 36.1% effective tax rate included a $1.9
million benefit, which includes an adjustment of $2.3 million to certain
prior period balances to primarily record additional deferred tax assets
arising from state net operating loss carry-forwards, offset by other discrete
items of $0.4 million. The 2006 provision of $34.7 million or 43.5%
effective tax rate included a $4.5 million benefit for the reversal of a
valuation allowance against our U.S. deferred tax assets related to capital
losses. Excluding these benefits
the adjusted effective tax was 38.2% for 2007 and 49.2% in 2006. We
believe adjusted effective tax rate, which is a non GAAP measure, is meaningful
since it provides insight to the tax rate of ongoing operations.
Provision (Benefit) for Income Taxes: During 2008, we recorded a tax provision of $15.6 million or 14.1% effective tax rate. Included in the 2008 provision were certain tax benefits relating to the implementation of tax planning strategies which enabled the Company to revise its estimate of U.S. net operating loss (NOL) and foreign tax credit (FTC) carry-forwards expected to be realized in the future. The tax provision for year included $26.2 million of net tax benefits primarily attributable to changing prior year foreign taxes paid from a deduction to a credit and the reversal of valuation allowances against net operating losses and the reinstatement of net operating losses which were previously written off. The Company has additional FTCs for which we have recorded valuation allowances, but we will not reverse these valuation allowances until such time that we believe it is more likely than not that they are realizable. Excluding these benefits the adjusted effective tax rate for the year was 37.8%. The 2007 provision of $33.4 million or 36.1% effective tax rate included a $1.9 million benefit, which includes an adjustment of $2.3 million to certain prior period balances to primarily record additional deferred tax assets arising from state net operating loss carry-forwards, offset by other discrete items of $0.4 million. The 2006 provision of $34.7 million or 43.5% effective tax rate included a $4.5 million benefit for the reversal of a valuation allowance against our U.S. deferred tax assets related to capital losses. Excluding these benefits the adjusted effective tax was 38.2% for 2007 and 49.2% in 2006. We believe adjusted effective tax rate, which is a non GAAP measure, is meaningful since it provides insight to the tax rate of ongoing operations.
These excerpts taken from the HXL 10-K filed Feb 22, 2008. Provision (Benefit) for Income Taxes: During 2006, we recorded a tax provision
$34.7 million or 43.5 % of pre-tax income.
The full year tax provision included a $4.5 million benefit of the
reversal of the valuation allowance against our U.S. deferred tax assets
related to capital losses. During the
fourth quarter of 2005, we recorded a $119.2 million benefit from the reversal
of the majority of the previously recorded valuation allowance established on
our U.S. federal, state and local deferred tax assets except for that portion
where the evidence did not yet support a reversal.
As of December 31, 2006, no evidence exists to support the reversal of the $6.2 million valuation allowance related to our Belgian subsidiary. Consistent with prior years, we continue to adjust our tax provision rate through the establishment, or release, of a non-cash valuation allowance attributable to currently generated Belgian net operating income (losses). This practice will continue until such time as the Belgian operations have evidenced the ability to consistently generate sufficient taxable income such that in future years management can reasonably expect that the deferred tax assets can be utilized.
Provision (Benefit) for Income Taxes: During 2006, we recorded a tax provision $34.7 million or 43.5 % of pre-tax income. The full year tax provision included a $4.5 million benefit of the reversal of the valuation allowance against our U.S. deferred tax assets related to capital losses. During the fourth quarter of 2005, we recorded a $119.2 million benefit from the reversal of the majority of the previously recorded valuation allowance established on our U.S. federal, state and local deferred tax assets except for that portion where the evidence did not yet support a reversal.
As
This excerpt taken from the HXL 10-K filed Mar 1, 2007. Provision (Benefit) for Income
Taxes: During the fourth quarter of 2005, we
reversed the majority of the previously recorded valuation allowance
established on our U.S. federal, state and local deferred tax assets except for
that portion where the evidence does not yet support a reversal. As a result of our decision to reverse the
valuation allowance, we recorded in the fourth quarter of 2005 a $119.2 million
benefit relating to the reversal of its tax provision.
As of December 31, 2005, no evidence existed to support the reversal of the $5.5 million valuation allowance related to our Belgian subsidiary. Consistent with prior years, we continue to adjust its tax provision rate through the establishment, or release, of a non-cash valuation allowance attributable to currently generated Belgian net operating income (losses). This practice will continue until such time as the Belgian operations have evidenced the ability to consistently generate sufficient taxable income such that in future years management can reasonably expect that the deferred tax assets can be utilized. 38
This excerpt taken from the HXL 10-K filed Mar 8, 2006. Provision (Benefit) for Income Taxes: During
the fourth quarter of 2005, the Company reversed the majority of the previously
recorded valuation allowance established on its U.S. federal, state and local
deferred tax assets except for that portion where the evidence does not yet
support a reversal. As a result of the
Company’s decision to reverse the valuation allowance, the Company recorded in
the fourth quarter
43
of 2005 a $119.2 million benefit relating to the reversal of its tax provision. As a result, Hexcel will now record a full tax provision on its U.S. income starting in the first quarter of 2006.
As of December 31, 2005, no evidence exists to support the reversal of the $5.5 million valuation allowance related to the Company’s Belgian subsidiary. Consistent with prior years, the Company continues to adjust its tax provision rate through the establishment, or release, of a non-cash valuation allowance attributable to currently generated Belgian net operating income (losses). This practice will continue until such time as the Belgian operations have evidenced the ability to consistently generate sufficient taxable income such that in future years management can reasonably expect that the deferred tax assets can be utilized.
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