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This excerpt taken from the NCEM 10-Q filed Jul 31, 2008. Accounting for Income
Taxes - As part of the process of preparing
consolidated financial statements, the Company is required to estimate income
taxes in each of the jurisdictions in which it operates. This process involves estimating the Company’s
actual current income tax exposure together with assessing temporary
differences resulting from differing treatment of items for income tax and
financial accounting purposes. These temporary
differences result in deferred tax assets and liabilities, the net amount of
which is included in the Company’s consolidated balance sheet. When appropriate, the Company records a
valuation allowance to reduce its deferred tax assets to the amount that the
Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable income, projected income
tax rates, expiration dates of foreign and other tax credit carryforwards,
anticipated results of tax audits, and ongoing prudent and feasible tax
planning strategies. If the Company were
to determine that it would be able to realize its deferred tax assets in the
future in excess of the net recorded amount, an adjustment to reduce the
valuation allowance would increase income in the period such determination was
made. Similarly, should the Company
determine that it would not be able to realize all or part of its net deferred
tax assets in the future, an adjustment to increase the valuation allowance
would be charged to income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The Company has received positive correspondence from both the CCRA and the IRS during this past quarter which has allowed the Company to adjust the tax liabilities as of June 30, 2008. The Company, along with its professional advisors, believes that there will be no further significant amounts necessary to be paid to conclude the CCRA and IRS tax appeals. The Company reviews the accrued amount at each balance sheet date quarterly. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual (including the decrease in the quarter ended June 30, 2008) or final determination that the amount due is less than the accrual would increase income in the period such determination is made.
Results of OperationsThis excerpt taken from the NCEM 10-Q filed May 2, 2008. Accounting for Income
Taxes - As part of the process of preparing
consolidated financial statements, the Company is required to estimate income
taxes in each of the jurisdictions in which it operates. This process involves estimating the
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Company’s actual current income tax exposure together with assessing temporary differences resulting from differing treatment of items for income tax and financial accounting purposes. These temporary differences result in deferred tax assets and liabilities, the net amount of which is included in the Company’s consolidated balance sheet. When appropriate, the Company records a valuation allowance to reduce its deferred tax assets to the amount that the Company believes is more likely than not to be realized. Key assumptions used in estimating a valuation allowance include potential future taxable income, projected income tax rates, expiration dates of foreign and other tax credit carryforwards, anticipated results of tax audits, and ongoing prudent and feasible tax planning strategies. At March 31, 2008 the Company had reduced its deferred tax assets by recording a valuation allowance of $108,000. If the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of the net recorded amount, an adjustment to reduce the valuation allowance would increase income in the period such determination was made. Similarly, should the Company determine that it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to increase the valuation allowance would be charged to income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at March 31, 2008 will be adequate for the resolution of the audits. However, there can be no assurance that such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made. The Company has accrued estimated amounts and has amounts on deposit for the potential outcome of these audits, but there can be no assurance that such costs will not ultimately exceed the current estimate. Consequently, the Company’s results of operations for any particular period may be affected by these adjustments, unrelated to the results of the current business operations of the Company for that period.
In the fourth quarter of fiscal 2007, the Company received notification from the Canada Customs and Revenue Agency with respect to the outstanding tax audit of the Company. In the notification the Canada Customs and Revenue Agency agreed with several of the positions that the Company had presented. The Company applied this information to the tax provision using the ‘more likely than not’ guidance and reduced its Canadian tax liability accrual as of December 31, 2007. The Canada Customs and Revenue Agency is currently reviewing the remaining positions of the Company.
Results of OperationsEquity in earnings of Cyanco increased $460,000, or 50%, to $1,387,000 in the three months ended March 31, 2008 compared to $927,000 in the three months ended March 31, 2007. Cyanco revenues increased $3,247,000, or 29%, to $14,498,000 in the three months ended March 31, 2008 compared to $11,251,000 in the three months ended March 31, 2007. The increase in Cyanco revenues is due primarily to an increase in product sales and an increase in the average sales price per pound of sodium cyanide. Cyanco has the ability, under most of its contracts, to pass on increases in the cost of raw materials to its customers and the obligation to pass on decreases. Product sales volumes for the first quarter of 2008 were up 5% primarily due to increased mining activities and an increase in the non-contract sales as compared to the same period in 2007. Cyanco’s costs and expenses increased $2,329,000, or 25%, to $11,725,000 in the three months ended March 31, 2008 compared to $9,396,000 in the three months ended March 31, 2007. The increase in operating costs in the current year resulted primarily from higher volumes of product sold and a substantial increase in the cost of raw materials. As a result, Cyanco’s net income before taxes (on a 100% basis) increased $919,000, or 50%, to $2,774,000 during the three months ended March 31, 2008 compared to $1,855,000 in the three months ended March 31, 2007.
This excerpt taken from the NCEM 10-Q filed Oct 30, 2007. Accounting for Income Taxes - As part of
the process of preparing consolidated financial statements, the Company is
required to estimate income taxes in each of the jurisdictions in which it
operates. This process involves
estimating the Company’s actual current income tax exposure together with
assessing temporary differences resulting from differing treatment of items for
income tax and financial accounting purposes.
These temporary differences result in deferred tax assets and
liabilities, the net amount of which is included in the Company’s consolidated
balance sheet. When appropriate, the
Company records a valuation allowance to reduce its deferred tax assets to the
amount that the Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable income, projected income
tax rates, expiration dates of foreign and other tax credit carryforwards,
anticipated results of tax audits, and ongoing prudent and feasible tax
planning strategies. Through
September 30, 2007 the Company recorded a valuation allowance of
$580,000. If the Company were to
determine that it would be able to realize its deferred tax assets in the
future in excess of the net recorded amount, an adjustment to reduce the
valuation allowance would increase income in the period such determination was
made. Similarly, should the Company
determine that it would not be able to realize all or part of its net deferred
tax assets in the future, an adjustment to increase the valuation allowance
would decrease income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at September 30, 2007 will be adequate for the resolution of the audits. However, there can be no assurance that such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made.
This excerpt taken from the NCEM 10-Q filed Aug 1, 2007. Accounting for Income Taxes - As
part of the process of preparing consolidated financial statements, the Company
is required to estimate income taxes in each of the jurisdictions in which it
operates. This process involves
estimating the Company’s actual current income tax exposure together with
assessing temporary differences resulting from differing treatment of items for
income tax and financial accounting purposes.
These temporary differences result in deferred tax assets and liabilities,
the net amount of which is included in the Company’s consolidated balance
sheet. When appropriate, the Company
records a valuation allowance to reduce its deferred tax assets to the amount
that the Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable income, projected income
tax rates, expiration dates of foreign and other tax credit carryforwards,
anticipated results of tax audits, and ongoing prudent and feasible tax
planning strategies. Through June 30,
2007 the Company recorded a valuation allowance of $491,000. If the Company were to determine that it
would be able to realize its deferred tax assets in the future in excess of the
net recorded amount, an adjustment to reduce the valuation allowance would
increase income in the period such determination was made. Similarly, should the Company determine that
it would not be able to realize all or part of its net deferred tax assets in
the future, an adjustment to increase the valuation allowance would be charged
to income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at June 30, 2007 will be adequate for the resolution of the audits. However, there can be no assurance that 11 such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made. This excerpt taken from the NCEM 10-Q filed May 8, 2007. Accounting for Income Taxes - As
part of the process of preparing consolidated financial statements, the Company
is required to estimate income taxes in each of the jurisdictions in which it
operates. This process involves
estimating the Company’s actual current income tax exposure together with
assessing temporary differences resulting from differing treatment of items for
income tax and financial accounting purposes.
These temporary differences result in deferred tax assets and
liabilities, the net amount of which is included in the Company’s consolidated
balance sheet. When appropriate, the
Company records a valuation allowance to reduce its deferred tax assets to the
amount that the Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable income, projected income
tax rates, expiration dates of foreign and other tax credit carryforwards,
anticipated results of tax audits, and ongoing prudent and feasible tax
planning strategies. At March 31, 2007
the Company had reduced its deferred tax assets by recording a valuation
allowance of $479,000. If the Company
were to determine that it would be able to realize its deferred tax assets in
the future in excess of the net recorded amount, an adjustment to reduce the
valuation allowance would increase income in the period such determination was
made. Similarly, should the Company
determine that it would not be able to realize all or part of its net deferred
tax assets in the future, an adjustment to increase the valuation allowance
would be charged to income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at March 31, 2007 will be adequate for the resolution of the audits. However, there can be no assurance that such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made. This excerpt taken from the NCEM 10-Q filed Oct 31, 2006. Accounting for Income Taxes - As
part of the process of preparing consolidated financial statements, the Company
is required to estimate income taxes in each of the jurisdictions in which it
operates. This process involves
estimating the Company’s actual current income tax exposure together with
assessing temporary differences resulting from differing treatment of items for
income tax and financial accounting purposes.
These temporary differences result in deferred tax assets and liabilities,
the net amount of which is included in the Company’s consolidated balance
sheet. When appropriate, the Company
records a valuation allowance to reduce its deferred tax assets to the amount
that the Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable income, projected income
tax rates, and ongoing prudent and feasible tax planning strategies. As of September 30, 2006 the Company had
reduced its deferred tax assets by recording a valuation allowance of
$611,000. If the Company were to
determine that it would be able to realize its deferred tax assets in the
future in excess of the net recorded amount, an adjustment to reduce the
valuation allowance would increase income in the period such determination was
made. Similarly, should the Company
determine that it would not be able to realize all or part of its net deferred
tax assets in the future, an adjustment to increase the valuation allowance
would be charged to income in the period such determination was made.
Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at September 30, 2006 will be adequate for the resolution of the audits. However, there can be no assurance that such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made. This excerpt taken from the NCEM 10-Q filed Aug 1, 2006. Accounting for Income Taxes - As
part of the process of preparing consolidated financial statements, the Company
is required to estimate income taxes in each of the jurisdictions in which it
operates. This process involves
estimating the Company’s actual current income tax exposure together with assessing
temporary differences resulting from differing treatment of items for income
tax and financial accounting purposes.
These temporary differences result in deferred tax assets and
liabilities, the net amount of which is included in the Company’s consolidated
balance sheet. When appropriate, the
Company records a valuation allowance to reduce its deferred tax assets to the
amount that the Company believes is more likely than not to be realized. Key assumptions used in estimating a
valuation allowance include potential future taxable
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income, projected income tax rates, anticipated results of tax audits, and ongoing prudent and feasible tax planning strategies. Through June 30, 2006 the Company had reduced its deferred tax assets by recording a valuation allowance of $1,945,000. If the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of the net recorded amount, an adjustment to reduce the valuation allowance would increase income in the period such determination was made. Similarly, should the Company determine that it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to increase the valuation allowance would be charged to income in the period such determination was made. Certain of the Company’s United States and Canadian income tax returns are currently under audit. The ultimate outcome of these audits and the impact of the final audit results on the consolidated financial statements of the Company cannot be determined at this time. The Company believes that amounts accrued and included in accounts payable and accrued expenses at June 30, 2006 will be adequate for the resolution of the audits. However, there can be no assurance that such costs will not ultimately exceed the current estimate. The Company reviews the accrued amount at each balance sheet date. Any increase in the accrual or the final resolution of the amount due in excess of the accrual would reduce income in the period such determination is made. Similarly, any decrease in the accrual or final determination that the amount due is less than the accrual would increase income in the period such determination is made. | EXCERPTS ON THIS PAGE:
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