RIMG » Topics » Income taxes.

These excerpts taken from the RIMG 10-K filed Mar 16, 2009.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.

35


Table of Contents

Income Taxes



Deferred tax assets and liabilities are recognized for the estimated
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred tax assets and liabilities are measured using enacted tax
rates in effect for the year in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes
the enactment date. A valuation allowance is provided to offset deferred tax
assets if, based on the available evidence, it is more likely than not that
some or all of the deferred tax asset will not be realized.



35






Table of Contents




This excerpt taken from the RIMG 10-Q filed Aug 8, 2008.
Income Taxes. The Company recognizes deferred tax assets for the expected future tax impact of temporary differences between book and taxable income. A valuation allowance and income tax charge are recorded when, in management’s judgment, realization of a specific deferred tax asset is uncertain. Income tax expense could be materially different from actual results because of changes in management’s expectations regarding future taxable income, the relationship between book and taxable income and tax planning strategies employed by the Company.

 

On January 1, 2007, the Company adopted FIN 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109”. Prior to adoption, the Company’s policy was to

 

20



Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

 

establish an accrual that reflected the probable outcome of known tax contingencies. The effects of final resolution, if any, were recognized as changes to the effective income tax rate in the period of resolution. FIN 48 requires application of a “more-likely-than-not” threshold to the recognition and derecognition of uncertain tax positions. Under FIN 48, once the-more-likely-than-not threshold is met, the amount of benefit to be recognized is the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such a change. Management recognizes a tax accrual for estimated exposures associated with uncertain tax positions and adjusts this accrual in light of changing facts and circumstances. However, due to the complexity of some of these uncertainties, the ultimate settlement may result in payments that are significantly different from management’s current estimate of tax liabilities, resulting in the recognition of additional charges or benefits to income tax expense.

 

For the six months ended June 30, 2008, the Company recognized tax liabilities of $48,000 and $217,000, before reduction for the federal benefit for state and foreign income tax related amounts, for new uncertainties related to current period income tax positions and prior period income tax positions, respectively. The Company reversed during the six months ended June 30, 2008 gross tax liabilities, exclusive of interest and penalties, amounting to $72,000 associated with income tax settlements.

 

This excerpt taken from the RIMG 10-Q filed May 9, 2008.
Income Taxes. The Company recognizes deferred tax assets for the expected future tax impact of temporary differences between book and taxable income. A valuation allowance and income tax charge are recorded when, in management’s judgment, realization of a specific deferred tax asset is uncertain. Income tax expense could be materially different from actual results because of changes in management’s expectations regarding future taxable income, the relationship between book and taxable income and tax planning strategies employed by the Company.

 

On January 1, 2007, the Company adopted FIN 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109”. Prior to adoption, the Company’s policy was to establish an accrual that reflected the probable outcome of known tax contingencies. The effects of final resolution, if any, were recognized as changes to the effective income tax rate in the period of resolution. FIN 48 requires application of a “more-likely-than-not” threshold to the recognition and derecognition of uncertain tax positions. Under FIN 48, once the-more-likely-than-not threshold is met, the amount of benefit to be recognized is the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such a change. Management recognizes a tax accrual for estimated exposures associated with uncertain tax positions and adjusts this accrual in light of changing facts and circumstances. However, due to the complexity of some of these uncertainties, the ultimate settlement may result in payments that are significantly different from management’s current estimate of tax liabilities, resulting in the recognition of additional charges or benefits to income tax expense.

 

For the three months ended March 31, 2008, the Company recognized tax liabilities of $80,000, before reduction for the federal benefit for state income tax related amounts, for new uncertainties related to current period income tax positions. The Company reversed during the three months ended March 31, 2008 gross tax liabilities, exclusive of interest and penalties, amounting to $72,000 associated with income tax settlements.

 

This excerpt taken from the RIMG 10-Q filed Nov 9, 2007.
Income taxes. The provision for income taxes represents federal, state and foreign income taxes on income. Income tax expense for the three and nine months ended September 30, 2007 amounted to $3.5 million and $6.0 million, or 35.8% and 34.8% of income before taxes, respectively. Income tax expense for the three and nine months ended September 30, 2006 was $2.1 million and $5.2 million, or 31.8% and 35.5% of income before taxes, respectively. The increase in the effective tax rate between quarterly periods is primarily due to the impact of an out-of-period adjustment in the prior year’s third quarter to recognize tax exempt interest income and reductions in the tax contingency reserve for the elimination of exposure items included in prior years’ tax reserves. The decrease in the effective tax rate between year-to-date periods was primarily impacted by an increase in tax-exempt interest income. The effective tax rate in both current year periods was favorably impacted by the timing of reinstatement of the research credit. The Company did not recognize a benefit for the research credit for the three and nine months ended September 30, 2006, as the credit was reinstated effective December 31, 2006.

 

The Company implemented the provisions of FASB Interpretation No. (“FIN”) 48, “Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109,” effective January 1, 2007. As part of its assessment of tax positions under FIN 48, the Company reduced its tax contingency reserve by $36,000 in the first quarter of 2007.

 

15

 


Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

 

The Company anticipates its effective tax rate will range between 34% and 35% for the full year 2007.

 

This excerpt taken from the RIMG 10-Q filed Aug 9, 2007.
Income taxes. The provision for income taxes represents federal, state and foreign income taxes on income. Income tax expense for the three and six months ended June 30, 2007 amounted to $1.5 million and $2.5 million, or 34.1% and 33.6% of income before taxes, respectively. Income tax expense for the three and six months ended June 30, 2006 was $2.2 million and $3.2 million, or 39.3% and 38.6% of income before taxes, respectively. The decrease in the effective tax rate in the current periods primarily reflects the benefit of increased tax-exempt interest income and the timing of reinstatement of the research credit. The Company did not recognize a benefit for the research credit for the three and six months ended June 30, 2006, as the credit was reinstated effective December 31, 2006.

 

The Company implemented the provisions of FASB Interpretation No. (“FIN”) 48, “Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109,” effective January 1, 2007. As part of its assessment of tax positions under FIN 48, the Company reduced its tax contingency reserve by $36,000 in the first quarter of 2007.

 

The Company anticipates its effective tax rate will range between 34% and 35% for the full year 2007.

 

This excerpt taken from the RIMG 10-K filed Mar 16, 2007.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.

This excerpt taken from the RIMG 10-Q filed Aug 9, 2006.
Income taxes. The provision for income taxes represents federal, state and foreign income taxes on income. Income tax expense for the three and six months ended June 30, 2006 amounted to $2.2 million and $3.2 million, or 39.3% and 38.6% of income before taxes, respectively. Income tax expense for the three and six months ended June 30, 2005 was $1.4 million and $2.9 million, or 38.1% and 36.7% of income before taxes, respectively. The increase in the effective tax rate in the current year periods primarily reflects the impact of a valuation allowance on the projected pre-tax loss for Rimage Japan, the impact of non tax deductible equity compensation expense associated with incentive stock options and a reduced benefit for the research tax credit, impacted by the delay in the U.S. government’s expected reinstatement of the federal research credit for 2006.

 

This excerpt taken from the RIMG 10-Q filed May 9, 2006.
Income taxes. The provision for income taxes represents federal, state and foreign income taxes on income. Income tax expense for the three months ended March 31, 2006 and 2005 amounted to $1.0 million and $1.5 million, respectively, or 37.0% and 35.5% of income before taxes. The increase in the effective tax rate in the first quarter 2006 relative to the same prior year period primarily reflects the impact of a valuation allowance on the projected pre-tax loss for Rimage Japan and a reduced benefit for the research tax credit, impacted by the delay in the U.S. government’s expected reinstatement of the federal research credit for 2006.

 

This excerpt taken from the RIMG 10-K filed Mar 15, 2006.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a

32



change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to offset deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.

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