HRL » Topics » Income Taxes

This excerpt taken from the HRL 10-Q filed Jun 5, 2009.

NOTE K                 INCOME TAXES

 

The Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48) at the beginning of fiscal 2008, on October 29, 2007.  The amount of unrecognized tax benefits, including interest and penalties, at April 26, 2009, recorded in other long-term liabilities was $38,862, of which $25,297 would impact the Company’s effective tax rate if recognized.  The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with $415 and $1,000 included in expense in the second quarter and first six months of fiscal 2009, respectively.  The amount of accrued interest and penalties at April 26, 2009, associated with unrecognized tax benefits was $9,869.

 

The Company is regularly audited by federal and state taxing authorities.  During fiscal year 2007, the I.R.S. concluded its examination of the Company’s consolidated federal income tax returns for the fiscal years through 2005.  The Company is currently under examination by the I.R.S. for the fiscal years 2006 and 2007.  The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 1996.  While it is reasonably possible that one or more of these audits may be completed within the next 12 months and that the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

 

17



This excerpt taken from the HRL 10-Q filed Mar 6, 2009.

NOTE K                 INCOME TAXES

 

The Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48) at the beginning of fiscal 2008, on October 29, 2007.  The amount of unrecognized tax benefits, including interest and penalties, at January 25, 2009, recorded in other long-term liabilities was $38,756, of which $25,271 would impact the Company’s effective tax rate if recognized.  The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with $585 included in expense in the first quarter of fiscal 2009.  The amount of accrued interest and penalties at January 25, 2009, associated with unrecognized tax benefits was $9,655.

 

15



Table of Contents

 

The Company is regularly audited by federal and state taxing authorities.  During fiscal year 2007, the United States Internal Revenue Service (I.R.S.) concluded its examination of the Company’s consolidated federal income tax returns for the fiscal years through 2005.  The Company is currently under examination by the I.R.S. for the fiscal years 2006 and 2007.  The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 1996.  While it is reasonably possible that one or more of these audits may be completed within the next 12 months and that the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

 

These excerpts taken from the HRL 10-K filed Dec 23, 2008.
Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

 

Beginning in fiscal year 2008, the company adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48). In accordance with FIN 48, the company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. That position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. See further discussion regarding the impact of adopting FIN 48 in Note G.

 

Income Taxes: The company records income taxes in accordance with the liability
method of accounting. Deferred taxes are recognized for the estimated taxes
ultimately payable or recoverable based on enacted tax law. Changes in enacted
tax rates are reflected in the tax provision as they occur.



 



Beginning
in fiscal year 2008, the company adopted the provisions of Financial Accounting
Standards Board (FASB) Interpretation No. 48, “Accounting for Uncertainty
in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48). In
accordance with FIN 48, the company recognizes a tax position in its financial
statements when it is more likely than not that the position will be sustained
upon examination, based on the technical merits of the position. That position

is then measured at the largest
amount of benefit that is greater than 50 percent likely of being realized upon
ultimate settlement. See further discussion regarding the impact of adopting
FIN 48 in Note G.



 



This excerpt taken from the HRL 10-Q filed Sep 5, 2008.

NOTE K            INCOME TAXES

 

In June 2006, the FASB issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48).  FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

 

The Company adopted the provisions of FIN 48 at the beginning of fiscal 2008, on October 29, 2007.  The adoption of FIN 48 resulted in a $13,863 increase in the liability for uncertain tax positions (resulting in a total liability balance of $32,272), a $4,878 increase in deferred tax assets, and a decrease in retained earnings of $8,985.

 

The amount of unrecognized tax benefits, including interest and penalties, at July 27, 2008, recorded in other long-term liabilities was $38,716, of which $25,221 would impact the Company’s effective tax rate if recognized.  The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with $1,029 and $2,705 included in expense in the third quarter and first nine months of fiscal 2008, respectively.  The amount of accrued interest and penalties at July 27, 2008, associated with unrecognized tax benefits was $8,499.

 

The Company is regularly audited by federal and state taxing authorities.  During fiscal year 2007, the United States Internal Revenue Service (I.R.S.) concluded its examination of the Company’s consolidated federal income tax returns for the fiscal years through 2005.  The Company is not currently under examination by the I.R.S.  The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 1996.  While it is reasonably possible that one or more of these audits may be completed within the next 12 months and that the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

 

This excerpt taken from the HRL 10-Q filed Mar 7, 2008.
INCOME TAXES

 

In June 2006, the FASB issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 (FIN 48).  FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.  FIN 48 is effective for fiscal years beginning after December 15, 2006, and therefore the Company adopted FIN 48 at the beginning of fiscal 2008.

 

The adoption of FIN 48 as of October 29, 2007, resulted in a $13,863 increase in the liability for uncertain tax positions (resulting in a total liability balance of $32,272), a $4,878 increase in deferred tax assets, and a decrease to retained earnings of $8,985.

 

The amount of unrecognized tax benefits at January 27, 2008, recorded in other long-term liabilities is $35,809, of which $23,342 would impact the Company’s effective tax rate if recognized.  The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, and $838 was included in expense in the first quarter of fiscal 2008.  The amount of accrued interest and penalties at January 27, 2008, associated with unrecognized tax benefits is $7,307.

 

The Company is regularly audited by federal and state taxing authorities.  During fiscal year 2007, the United States Internal Revenue Service (IRS) concluded its examination of the Company’s consolidated federal income tax returns for the fiscal years through 2005.  The Company is not currently under examination by the IRS.  The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 1996.  While it is reasonably possible that one or more of these audits may be completed within the next

 

 

13



 

twelve months and that the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to estimate the effect of any amount of such change to previously recorded uncertain tax positions.

 

The effective tax rate for the first quarter of fiscal 2008 was 36.7 percent compared to 34.8 percent for the comparable quarter of fiscal 2007.  The higher rate in 2008 reflects an increase in interest reserves as a result of the Company’s adoption of FIN 48, along with various discrete events increasing unrecognized tax reserves relating to certain on-going audits.

 

NOTE L  

This excerpt taken from the HRL 10-K filed Dec 27, 2007.
Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

 

This excerpt taken from the HRL 10-Q filed Sep 7, 2007.
Income Taxes

The effective tax rate for the third quarter and first nine months of fiscal 2007 was 36.4 and 36.1 percent, respectively, compared to 32.0 and 32.2 percent for the comparable periods of fiscal 2006.  The higher rate for both the quarter and nine months of 2007 primarily reflects the impact of discrete events related to unfavorable prior period audits, while the fiscal 2006 rates were reduced by discrete benefits related to the favorable settlement of various state and federal tax audits.  The lower nine month rate for fiscal 2006 also reflects a discrete item recorded in the first quarter for the tax benefit related to a Medicare subsidy created under the provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

This excerpt taken from the HRL 10-Q filed Jun 8, 2007.
Income Taxes

The effective tax rate for the second quarter and first six months of fiscal 2007 was 37.4 and 36.0 percent, respectively, compared to 33.8 and 32.4 percent for the comparable periods of fiscal 2006.  The higher rate is primarily due to a $1,642 charge in the second quarter of 2007 for discrete events related to unfavorable prior period audits, while the second quarter rate in 2006 was reduced by a discrete benefit related to a favorable prior year audit settlement.  The lower six month rate for fiscal 2006 also reflects a discrete item recorded in the first quarter for the tax benefit related to a Medicare subsidy created under the provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

This excerpt taken from the HRL 10-Q filed Mar 9, 2007.
Income Taxes

The effective tax rate for the first quarter of fiscal 2007 was 34.8 percent compared to 30.9 percent for the comparable quarter of fiscal 2006.  The higher rate is primarily due to a discrete tax event recognized in the first quarter of fiscal 2006 to record the tax benefit related to a Medicare subsidy created under the provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

This excerpt taken from the HRL 10-K filed Jan 12, 2007.
Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

This excerpt taken from the HRL 10-Q filed Sep 8, 2006.
Income Taxes

The effective tax rate for the third quarter and first nine months of fiscal 2006 was 32.0 and 32.2 percent, respectively, compared to 36.9 and 37.1 percent for the comparable periods of fiscal 2005.  The decrease in the rates compared to fiscal 2005 reflects the benefits from a domestic manufacturing activities tax deduction that was effective for the Company beginning in fiscal 2006.  The third quarter rate was further reduced by discrete items, including the impact of settlement of various state and federal tax audits during the quarter.  The nine month rate also reflects a discrete item recorded in the first quarter for the tax benefit related to a Medicare subsidy, and a discrete item in the second quarter related to the benefit received from a prior year audit settlement.

7




This excerpt taken from the HRL 10-Q filed Jun 9, 2006.
Income Taxes
 

The effective tax rate for the second quarter and first six months of fiscal 2006 was 33.8 and 32.4 percent compared to 37.3 and 37.2 percent for the comparable periods of fiscal 2005. The decrease in the rates compared to fiscal 2005 reflects the benefits from a domestic manufacturing activities tax credit that was effective for the Company beginning in fiscal 2006. The second quarter effective rate for fiscal 2006 was further reduced by a discrete item related to the benefit received from a prior year audit settlement. The lower six month effective rate for fiscal 2006 also reflects a discrete item recorded in the first quarter for the tax benefit related to a Medicare subsidy created under the provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

 

 

7


 
This excerpt taken from the HRL 10-Q filed Mar 10, 2006.
Income Taxes
 

The effective tax rate for the first quarter of fiscal 2006 was 30.9 percent compared to 37.1 percent for the comparable quarter of fiscal 2005.  The lower rate is primarily due to a discrete tax event recognized in the first quarter.  The discrete item was to record the tax benefit related to a Medicare subsidy created under the provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.  The decrease in the rate also reflects the benefits from a domestic manufacturing activities tax credit that was effective for the Company beginning in fiscal 2006.

 

7


 

This excerpt taken from the HRL 10-K filed Jan 13, 2006.
Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

 

This excerpt taken from the HRL 10-K filed Jan 13, 2005.
Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

 

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