Our effective tax rates for the quarter and year ended December 31, 2007 was 38.3% and 38.9%, respectively. On February 25, 2008, the Company's US operating entities entered into an Advanced Pricing Agreement ("APA") with the Internal Revenue Service ("IRS") covering the calendar years 2006 through 2010. The APA is an agreement with the IRS that specifies the agreed upon terms under which the Company's U.S. entities are compensated for services provided on behalf of its non-U.S. entities. The APA provides the Company with greater certainty with respect to the mix of its pre-tax income in the various tax jurisdictions in which it operates.
Net Income and Cash Net Income
For the quarter ended December 31, 2007, reported net income was $19.7 million, or $0.08 per share, and CNI was $73.9 million, or $0.30 per share, based on 250.5 million diluted Class A common shares outstanding. In arriving at CNI, we add back the after-tax impact of the amortization of intangible assets and the amortization and write-off of deferred financing costs. These items are tax-effected at the estimated marginal rates attributable to them. In the quarter ended December 31, 2007, the marginal tax rate associated with the amortization of intangible assets was 8.8% and the marginal tax rate for amortization and write-off of deferred financing costs was 8.9%.
Liquidity, Balance Sheet and Cash Flows
As of December 31, 2007, our cash and cash equivalents totaled $30.8
million and total debt outstanding was $1,200.2 million, a decrease of
$350.5 million in total debt outstanding, compared to $1,550.7 million as
of December 31, 2006. There were no borrowings outstanding under the
revolving portion of our senior secured credit facility. We generated
$105.8 million of cash
|SOURCE Warner Chilcott Limited|
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