American Home Shield 2006 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2006 American Home Shield annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

As a result of this agreement, certain deferred tax assets, primarily related to intangible assets, which had previously not been
recorded due to uncertainties associated with the complexity of the matters under review and the extended period of time effectively
covered by the IRS' examination were recorded. This resulted in a non-cash reduction in the Company's 2004 income tax provision,
thereby increasing 2004 consolidated net income by approximately $159 million ($150 million related to continuing operations and
$9 million related to businesses held pending sale and discontinued operations).
In February 2006, the IRS concluded the 2003 and 2004 audits of the Company's tax returns. There were no material adjustments or
payments resulting from these audits. In the first quarter of 2006, the IRS commenced the audit of the Company's tax return for
2005. As with any review of this
33