Send us Feedback

PNC Financial Services (PNC)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

PNC » Topics » FUTURE ACCOUNTING

This excerpt taken from the PNC 8-K filed Oct 5, 2006.

FUTURE ACCOUNTING

In the fourth quarter of 2006, PNC will account for its investment in BlackRock, including earnings from this investment, under the equity method as required by generally accepted accounting principles. The amount of the liability related to our commitment to deliver future LTIP shares will be marked to market on a quarterly basis.

 

2

The future impact on PNC’s Consolidated Income Statement from its investment in BlackRock is expected to include the following:

 

  •   The Corporation’s ownership interest (approximately 34%, subject to change) in BlackRock’s after-tax earnings.

 

  •   PNC’s ongoing cost or benefit related to the increase or decrease, respectively, in market valuation of its liability related to LTIP shares.

 

  •   Any gain realized (representing the excess of market value over book value of BlackRock common stock) when the LTIP shares are transferred to BlackRock employees.

 

  •   Income taxes on PNC’s equity earnings from BlackRock at an estimated effective rate of 24% (subject to change), and on the LTIP share liability valuation changes and gains on share transfers at an estimated effective rate of approximately 35% (subject to change).
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