IM » Topics » Income Taxes

These excerpts taken from the IM 10-K filed Mar 4, 2009.
Income Taxes
 
The Company estimates income taxes in each of the taxing jurisdictions in which it operates. This process involves estimating the actual current tax expense together with assessing any temporary differences resulting from the different treatment of certain items, such as the timing for recognizing revenues and expenses for tax and financial reporting purposes. These differences may result in deferred tax assets and liabilities, which are included in the consolidated balance sheet. The Company is required to assess the likelihood that the deferred tax assets, which include net operating loss carryforwards, tax credits and temporary differences that are expected to be deductible in future years, will be recoverable from future taxable income. In making that assessment, the Company considers future market growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions


53


Table of Contents

 
INGRAM MICRO INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
in which it operates and prudent and feasible tax planning strategies. If, based upon available evidence, recovery of the full amount of the deferred tax assets is not likely, the Company provides a valuation allowance on any amount not likely to be realized. The Company’s effective tax rate includes the impact of not providing U.S. taxes on undistributed foreign earnings considered indefinitely reinvested. Material changes in the Company’s estimates of cash, working capital and long-term investment requirements in the various jurisdictions in which it does business could impact the Company’s effective tax rate.
 
The provision for tax liabilities and recognition of tax benefits involves evaluations and judgments of uncertainties in the interpretation of complex tax regulations by various taxing authorities. In situations involving uncertain tax positions related to income tax matters, the Company does not recognize benefits unless it is more likely than not that they will be sustained. As additional information becomes available, or these uncertainties are resolved with the taxing authorities, revisions to these liabilities or benefits may be required, resulting in additional provision for or benefit from income taxes reflected in the Company’s consolidated statement of income.
 
Income Taxes
 
The Company estimates income taxes in each of the taxing jurisdictions in which it operates. This process involves estimating the actual current tax expense together with assessing any temporary differences resulting from the different treatment of certain items, such as the timing for recognizing revenues and expenses for tax and financial reporting purposes. These differences may result in deferred tax assets and liabilities, which are included in the consolidated balance sheet. The Company is required to assess the likelihood that the deferred tax assets, which include net operating loss carryforwards, tax credits and temporary differences that are expected to be deductible in future years, will be recoverable from future taxable income. In making that assessment, the Company considers future market growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions


53


Table of Contents

 
INGRAM MICRO INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
in which it operates and prudent and feasible tax planning strategies. If, based upon available evidence, recovery of the full amount of the deferred tax assets is not likely, the Company provides a valuation allowance on any amount not likely to be realized. The Company’s effective tax rate includes the impact of not providing U.S. taxes on undistributed foreign earnings considered indefinitely reinvested. Material changes in the Company’s estimates of cash, working capital and long-term investment requirements in the various jurisdictions in which it does business could impact the Company’s effective tax rate.
 
The provision for tax liabilities and recognition of tax benefits involves evaluations and judgments of uncertainties in the interpretation of complex tax regulations by various taxing authorities. In situations involving uncertain tax positions related to income tax matters, the Company does not recognize benefits unless it is more likely than not that they will be sustained. As additional information becomes available, or these uncertainties are resolved with the taxing authorities, revisions to these liabilities or benefits may be required, resulting in additional provision for or benefit from income taxes reflected in the Company’s consolidated statement of income.
 
Income Taxes
 
The Company estimates income taxes in each of the taxing jurisdictions in which it operates. This process involves estimating the actual current tax expense together with assessing any temporary differences resulting from the different treatment of certain items, such as the timing for recognizing revenues and expenses for tax and financial reporting purposes. These differences may result in deferred tax assets and liabilities, which are included in the consolidated balance sheet. The Company is required to assess the likelihood that the deferred tax assets, which include net operating loss carryforwards, tax credits and temporary differences that are expected to be deductible in future years, will be recoverable from future taxable income. In making that assessment, the Company considers future market growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions


53


Table of Contents

 
INGRAM MICRO INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
in which it operates and prudent and feasible tax planning strategies. If, based upon available evidence, recovery of the full amount of the deferred tax assets is not likely, the Company provides a valuation allowance on any amount not likely to be realized. The Company’s effective tax rate includes the impact of not providing U.S. taxes on undistributed foreign earnings considered indefinitely reinvested. Material changes in the Company’s estimates of cash, working capital and long-term investment requirements in the various jurisdictions in which it does business could impact the Company’s effective tax rate.
 
The provision for tax liabilities and recognition of tax benefits involves evaluations and judgments of uncertainties in the interpretation of complex tax regulations by various taxing authorities. In situations involving uncertain tax positions related to income tax matters, the Company does not recognize benefits unless it is more likely than not that they will be sustained. As additional information becomes available, or these uncertainties are resolved with the taxing authorities, revisions to these liabilities or benefits may be required, resulting in additional provision for or benefit from income taxes reflected in the Company’s consolidated statement of income.
 
Income
Taxes



 



The Company estimates income taxes in each of the taxing
jurisdictions in which it operates. This process involves
estimating the actual current tax expense together with
assessing any temporary differences resulting from the different
treatment of certain items, such as the timing for recognizing
revenues and expenses for tax and financial reporting purposes.
These differences may result in deferred tax assets and
liabilities, which are included in the consolidated balance
sheet. The Company is required to assess the likelihood that the
deferred tax assets, which include net operating loss
carryforwards, tax credits and temporary differences that are
expected to be deductible in future years, will be recoverable
from future taxable income. In making that assessment, the
Company considers future market growth, forecasted earnings,
future taxable income, the mix of earnings in the jurisdictions





53





Table of Contents





 




INGRAM
MICRO INC.




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



in which it operates and prudent and feasible tax planning
strategies. If, based upon available evidence, recovery of the
full amount of the deferred tax assets is not likely, the
Company provides a valuation allowance on any amount not likely
to be realized. The Company’s effective tax rate includes
the impact of not providing U.S. taxes on undistributed
foreign earnings considered indefinitely reinvested. Material
changes in the Company’s estimates of cash, working capital
and long-term investment requirements in the various
jurisdictions in which it does business could impact the
Company’s effective tax rate.


 



The provision for tax liabilities and recognition of tax
benefits involves evaluations and judgments of uncertainties in
the interpretation of complex tax regulations by various taxing
authorities. In situations involving uncertain tax positions
related to income tax matters, the Company does not recognize
benefits unless it is more likely than not that they will be
sustained. As additional information becomes available, or these
uncertainties are resolved with the taxing authorities,
revisions to these liabilities or benefits may be required,
resulting in additional provision for or benefit from income
taxes reflected in the Company’s consolidated statement of
income.


 




Income
Taxes



 



The Company estimates income taxes in each of the taxing
jurisdictions in which it operates. This process involves
estimating the actual current tax expense together with
assessing any temporary differences resulting from the different
treatment of certain items, such as the timing for recognizing
revenues and expenses for tax and financial reporting purposes.
These differences may result in deferred tax assets and
liabilities, which are included in the consolidated balance
sheet. The Company is required to assess the likelihood that the
deferred tax assets, which include net operating loss
carryforwards, tax credits and temporary differences that are
expected to be deductible in future years, will be recoverable
from future taxable income. In making that assessment, the
Company considers future market growth, forecasted earnings,
future taxable income, the mix of earnings in the jurisdictions





53





Table of Contents





 




INGRAM
MICRO INC.




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



in which it operates and prudent and feasible tax planning
strategies. If, based upon available evidence, recovery of the
full amount of the deferred tax assets is not likely, the
Company provides a valuation allowance on any amount not likely
to be realized. The Company’s effective tax rate includes
the impact of not providing U.S. taxes on undistributed
foreign earnings considered indefinitely reinvested. Material
changes in the Company’s estimates of cash, working capital
and long-term investment requirements in the various
jurisdictions in which it does business could impact the
Company’s effective tax rate.


 



The provision for tax liabilities and recognition of tax
benefits involves evaluations and judgments of uncertainties in
the interpretation of complex tax regulations by various taxing
authorities. In situations involving uncertain tax positions
related to income tax matters, the Company does not recognize
benefits unless it is more likely than not that they will be
sustained. As additional information becomes available, or these
uncertainties are resolved with the taxing authorities,
revisions to these liabilities or benefits may be required,
resulting in additional provision for or benefit from income
taxes reflected in the Company’s consolidated statement of
income.


 




Income
Taxes



 



The Company estimates income taxes in each of the taxing
jurisdictions in which it operates. This process involves
estimating the actual current tax expense together with
assessing any temporary differences resulting from the different
treatment of certain items, such as the timing for recognizing
revenues and expenses for tax and financial reporting purposes.
These differences may result in deferred tax assets and
liabilities, which are included in the consolidated balance
sheet. The Company is required to assess the likelihood that the
deferred tax assets, which include net operating loss
carryforwards, tax credits and temporary differences that are
expected to be deductible in future years, will be recoverable
from future taxable income. In making that assessment, the
Company considers future market growth, forecasted earnings,
future taxable income, the mix of earnings in the jurisdictions





53





Table of Contents





 




INGRAM
MICRO INC.




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



in which it operates and prudent and feasible tax planning
strategies. If, based upon available evidence, recovery of the
full amount of the deferred tax assets is not likely, the
Company provides a valuation allowance on any amount not likely
to be realized. The Company’s effective tax rate includes
the impact of not providing U.S. taxes on undistributed
foreign earnings considered indefinitely reinvested. Material
changes in the Company’s estimates of cash, working capital
and long-term investment requirements in the various
jurisdictions in which it does business could impact the
Company’s effective tax rate.


 



The provision for tax liabilities and recognition of tax
benefits involves evaluations and judgments of uncertainties in
the interpretation of complex tax regulations by various taxing
authorities. In situations involving uncertain tax positions
related to income tax matters, the Company does not recognize
benefits unless it is more likely than not that they will be
sustained. As additional information becomes available, or these
uncertainties are resolved with the taxing authorities,
revisions to these liabilities or benefits may be required,
resulting in additional provision for or benefit from income
taxes reflected in the Company’s consolidated statement of
income.


 




These excerpts taken from the IM 10-K filed Feb 27, 2008.
Income Taxes
 
The Company estimates income taxes in each of the taxing jurisdictions in which it operates. This process involves estimating the actual current tax expense together with assessing any temporary differences resulting from the different treatment of certain items, such as the timing for recognizing revenues and expenses for tax and financial reporting purposes. These differences may result in deferred tax assets and liabilities, which are included in the consolidated balance sheet. The Company is required to assess the likelihood that the deferred tax assets, which include net operating loss carryforwards, tax credits and temporary differences that are expected to be deductible in future years, will be recoverable from future taxable income or other tax planning actions and strategies. The Company provides a valuation allowance against these deferred tax assets unless it is more likely than not that they will ultimately be realized based on the estimates of future taxable income in the various taxing jurisdictions and other applicable factors.
 
The provision for tax liabilities and recognition of tax benefits involves evaluations and judgments of uncertainties in the interpretation of complex tax regulations by various taxing authorities. In situations involving uncertain tax positions related to income tax matters, the Company does not recognize benefits unless it is more likely than not that they will be sustained. As additional information becomes available, or these uncertainties are resolved with the taxing authorities, revisions to these liabilities or benefits may be required, resulting in additional provision for or benefit from income taxes reflected in the Company’s consolidated statement of income.
 
Income
Taxes



 



The Company estimates income taxes in each of the taxing
jurisdictions in which it operates. This process involves
estimating the actual current tax expense together with
assessing any temporary differences resulting from the different
treatment of certain items, such as the timing for recognizing
revenues and expenses for tax and financial reporting purposes.
These differences may result in deferred tax assets and
liabilities, which are included in the consolidated balance
sheet. The Company is required to assess the likelihood that the
deferred tax assets, which include net operating loss
carryforwards, tax credits and temporary differences that are
expected to be deductible in future years, will be recoverable
from future taxable income or other tax planning actions and
strategies. The Company provides a valuation allowance against
these deferred tax assets unless it is more likely than not that
they will ultimately be realized based on the estimates of
future taxable income in the various taxing jurisdictions and
other applicable factors.


 



The provision for tax liabilities and recognition of tax
benefits involves evaluations and judgments of uncertainties in
the interpretation of complex tax regulations by various taxing
authorities. In situations involving uncertain tax positions
related to income tax matters, the Company does not recognize
benefits unless it is more likely than not that they will be
sustained. As additional information becomes available, or these
uncertainties are resolved with the taxing authorities,
revisions to these liabilities or benefits may be required,
resulting in additional provision for or benefit from income
taxes reflected in the Company’s consolidated statement of
income.


 




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