TLAB » Topics » Audits

This excerpt taken from the TLAB 10-K filed Mar 3, 2009.

Audits

We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in our major jurisdictions for years before 2003. Our major jurisdictions currently include the United States, California, Illinois, Finland, Denmark and Mexico. During 2008 we reached a settlement with the Internal Revenue Service (IRS) in connection with their examination of all tax years prior to 2006, resulting in a $34.8 million tax benefit. Of our major jurisdictions, we are currently under audit by the State of California for the 2004 through 2006 tax periods. We do not expect the outcome of tax examinations to have a material effect on our consolidated results of operations, consolidated financial position, or cash flow.

These excerpts taken from the TLAB 10-K filed Feb 26, 2008.

Audits

We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in our major jurisdictions for years before 2001. Our major jurisdictions currently include the United States, California, Illinois, Finland, Denmark and Mexico. The Internal Revenue Service (IRS) has completed its audit of our U.S. income tax returns for years 2001 through 2003 and has proposed various adjustments that could result in additional tax of $48.2 million primarily related to the disallowance of a loss claimed with respect to

 

TELLABS ANNUAL REPORT 2007

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an investment in a subsidiary. We do not agree with the proposed adjustments and are appealing this decision. We estimate that these issues will be resolved in the next 12 months. In addition, the IRS is examining our federal income tax returns for the 2004 and 2005 periods as well as the 2002 through 2004 pre-acquisition years of a subsidiary. We expect these examinations will be completed in 2008.

Audits

FACE="Times New Roman" SIZE="2">We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax
authorities in our major jurisdictions for years before 2001. Our major jurisdictions currently include the United States, California, Illinois, Finland, Denmark and Mexico. The Internal Revenue Service (IRS) has completed its audit of our U.S.
income tax returns for years 2001 through 2003 and has proposed various adjustments that could result in additional tax of $48.2 million primarily related to the disallowance of a loss claimed with respect to

 


TELLABS ANNUAL REPORT 2007

FACE="Times New Roman" SIZE="2">53









an investment in a subsidiary. We do not agree with the proposed adjustments and are appealing this decision. We estimate that these issues will be resolved
in the next 12 months. In addition, the IRS is examining our federal income tax returns for the 2004 and 2005 periods as well as the 2002 through 2004 pre-acquisition years of a subsidiary. We expect these examinations will be completed in 2008.

This excerpt taken from the TLAB 10-K filed Feb 26, 2007.

Audits

We are subject to tax examinations and potential assessments in various jurisdictions. The Internal Revenue Service (IRS) completed its audit of our U.S. income tax returns for the years 2001 through 2003 and has proposed various adjustments to these income tax returns. We do not agree with the proposed adjustments and are appealing this decision. In addition, the IRS recently initiated its examination of our federal income

 

TELLABS ANNUAL REPORT 2006

51


tax returns for the 2004 and 2005 periods. We previously recorded an estimate of the potential impact of the IRS audit for the years in question; however, the final outcome is subject to uncertainties.

12. Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income includes changes in equity during a period. Comprehensive income for the periods presented consists of net earnings, unrealized gains and losses on available-for-sale securities, foreign currency translation adjustments and unrecognized prior service costs and net losses due to the adoption of SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans.

 

In millions

   12/29/06     12/30/05     12/31/04  

Unrealized gain (loss) on available-for-sale securities

   $ 1.7     $ (3.7 )   $ (3.1 )

Foreign currency translation adjustments

     94.3       60.7       129.0  

Unrecognized prior service cost

     (0.7 )            

Unrecognized net loss

     (0.5 )            
                        

Total accumulated other comprehensive income

   $ 94.8     $ 57.0     $ 125.9  
                        
This excerpt taken from the TLAB 10-K filed Mar 14, 2006.

Audits

 

We are subject to tax examinations and potential assessments in various jurisdictions. The Internal Revenue Service is auditing our federal income tax returns for 2001 through 2003. We anticipate that the IRS will submit the results of this audit to Tellabs in the first half of 2006. We believe any increase to our tax

 

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expense for those years that might result from the audit would not materially impact our financial statements.  However, we cannot provide assurance that a material adjustment, positive or negative, will not result.

 

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