RSH » Topics » Provision for Income Taxes

This excerpt taken from the RSH 10-Q filed May 9, 2006.

Provision for Income Taxes

The provision for income taxes for each quarterly period reflects our current estimate of the annual effective tax rate for the full year. Our effective tax rate for the quarters ended March 31, 2006 and 2005, was approximately 38.2%.

Return to Table of Contents

This excerpt taken from the RSH 10-Q filed Nov 4, 2005.

Provision for Income Taxes

The provision for income taxes for each quarterly period is based on our current estimate of the annual effective tax rate. Our effective tax rate was a negative 38.4% for the quarter and positive a 14.4% for the nine months ended September 30, 2005, respectively, compared to 38.0% for each of the corresponding prior year periods. The decreases in 2005 were due to a favorable non-cash income tax benefit of $56.5 million relating to the release of a tax contingency reserve. This reserve related to losses sustained in connection with our European operations, which were fully dissolved by 1995. The release of the reserve occurred in the third quarter, because the statute of limitations governing these issues expired on September 30, 2005.

The American Jobs Creation Act of 2004 ("the Act") provides a temporary elective incentive to repatriate foreign earnings by providing a deduction equal to 85% of the dividends received, which reduces the effective federal income tax rate on these earnings from 35% to 5.25%. We are in the process of developing a complete analysis of the costs and benefits of repatriation under the Act. However, based upon our initial and ongoing analysis, we expect to repatriate approximately $48 million of foreign earnings during 2005. As we do not have any amounts reflected in our financial statements as earnings permanently reinvested outside the United States, we anticipate a total tax benefit during 2005 of between $2.9 million and $12.3 million related to the repatriation.

Return to Table of Contents

EXCERPTS ON THIS PAGE:

10-Q
May 9, 2006
10-Q
Nov 4, 2005
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