Albany needs to understand the potential negative
impact of a tax rate that is higher than almost any of our domestic and global competitors when it comes to attracting talent and jobs.»
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability
of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect
of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result
of global economic uncertainty or otherwise; 8) the effect
of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution
of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation
of our announced acquisition
of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability
of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk
of nonpayment by such customers; 13) any adverse
impact on Boeing's and Airbus» production
of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts
of terrorism; 14) any adverse
impact on the demand for air travel or our operations from the outbreak
of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the
impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition
of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect
of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect
of changes in
tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other thin
tax law, such as the effect
of The
Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other thin
Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations
of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect
of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to recruit and retain a critical mass
of highly - skilled employees and our relationships with the unions representing many
of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment
of interest on, and principal
of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest
rates increase substantially; 27) the effectiveness
of any interest
rate hedging programs; 28) the effectiveness
of our internal control over financial reporting; 29) the outcome or
impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition
of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result
of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks
of doing business internationally, including fluctuations in foreign current exchange
rates, impositions
of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
the
impact of investment (including changes in interest
rates), economic (including inflation, recent changes in
tax law, rapid changes in commodity prices and fluctuations in foreign currency exchange
rates) and underwriting market conditions;
Core income (loss) is consolidated net income (loss) excluding the after -
tax impact of net realized investment gains (losses), discontinued operations, the effect
of a change in
tax laws and
tax rates at enactment, and cumulative effect
of changes in accounting principles when applicable.
The finance minister was tight - lipped Friday about the upcoming budget but said the discussion with economists touched on the uncertainty around NAFTA renegotiations and the
impact of changes to U.S.
tax rates on the Canadian economy.
U.S.
tax reform discrete
impacts On December 22, 2017, the United States enacted
tax reform legislation that included a broad range
of business
tax provisions, including but not limited to a reduction in the U.S. federal
tax rate from 35 % to 21 % as well as provisions that limit or eliminate various deductions or credits.
Such risks, uncertainties and other factors include, without limitation: (1) the effect
of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest
rates and foreign currency exchange
rates, levels
of end market demand in construction and in both the commercial and defense segments
of the aerospace industry, levels
of air travel, financial condition
of commercial airlines, the
impact of weather conditions and natural disasters and the financial condition
of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization
of the anticipated benefits
of advanced technologies and new products and services; (3) the scope, nature,
impact or timing
of acquisition and divestiture or restructuring activity, including the pending acquisition
of Rockwell Collins, including among other things integration
of acquired businesses into United Technologies» existing businesses and realization
of synergies and opportunities for growth and innovation; (4) future timing and levels
of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability
of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope
of future repurchases
of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level
of other investing activities and uses
of cash, including in connection with the proposed acquisition
of Rockwell; (7) delays and disruption in delivery
of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits
of organizational changes; (11) the anticipated benefits
of diversification and balance
of operations across product lines, regions and industries; (12) the outcome
of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the
impact of the negotiation
of collective bargaining agreements and labor disputes; (15) the effect
of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect
of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange
rates in the near term and beyond; (16) the effect
of changes in
tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personn
tax (including U.S.
tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personn
tax reform enacted on December 22, 2017, which is commonly referred to as the
Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personn
Tax Cuts and Jobs Act
of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability
of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition
of conditions that could adversely affect the combined company or the expected benefits
of the merger) and to satisfy the other conditions to the closing
of the pending acquisition on a timely basis or at all; (18) the occurrence
of events that may give rise to a right
of one or both
of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee
of $ 695 million to United Technologies or $ 50 million
of expense reimbursement; (19) negative effects
of the announcement or the completion
of the merger on the market price
of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation
of their businesses while the merger agreement is in effect; (21) risks relating to the value
of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability
of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
Beneficial effect
of lower effective
tax rate in light
of pricing and benefit design assumptions associated with the 2017 temporary suspension
of the non-deductible health insurance industry fee; excludes Individual Commercial segment
impact
Adjusted EPS for 1Q18 was affected by the same factors
impacting Adjusted pretax income, as well as a lower number
of shares and lower
tax rate used to compute EPS as discussed above.
Impact of Tax Reform Law, primarily re-measurement of deferred tax assets at lower corporate tax ra
Tax Reform Law, primarily re-measurement
of deferred
tax assets at lower corporate tax ra
tax assets at lower corporate
tax ra
tax rates
In addition to the factors
impacting the year - over-year changes in quarterly GAAP pretax income, GAAP EPS for 1Q18 was further affected by a lower number
of shares primarily reflecting share repurchases in 2017 and the
impact of a lower
tax rate in 1Q18 resulting from the Tax Reform L
tax rate in 1Q18 resulting from the
Tax Reform L
Tax Reform Law.
Adjusted income
tax expense includes the
tax impact of the non-GAAP adjustments and is calculated using our statutory
tax rate in the jurisdiction in which the costs were incurred.
The expected macroeconomic
impact of the December 2017
tax reform, particularly the lower corporate
tax rate and the temporary full expensing
of investment, together with increased government spending, will begin to be felt in the second quarter and emerges as a powerful fiscal stimulus in the remainder
of the year and in 2019.
After accounting for the
impacts of measures and adjustments, the Sales
Tax revenue base is projected to grow at an average annual
rate of 4.3 per cent over the forecast period, roughly consistent with the average annual growth in nominal consumption
of 4.0 per cent over this period.
Among respondents, 79 percent
of franchisees and 73 percent
of franchisors believe failure by Congress to extend current
tax rates at all levels will have a negative
impact on hiring and growth plans moving forward.
«Mark - Up
of H.R. 3996, The Temporary
Tax Relief Act
of 2007 and H.R. 3997, The Heroes Earnings Assistance and Relief Act
of 2007,» Hearing Before the Committee on Ways and Means, United States House
of Representatives, November 1, 2007; «Baucus, Grassley Tackle Alternative Minimum
Tax Relief on First Day
of 110th Congress,» Press Release, January 4, 2007; «Easing the Family
Tax Burden,» Hearing Before the Committee on Finance, United States Senate, March 8, 2001; «Revenue Proposals and
Tax Cuts in the President's Budget,» Hearing Before the Committee on Finance, United States Senate, February 28, 2001; «President's
Tax Relief Proposals: Individual Income
Tax Rates,» Hearing Before the Committee on Ways and Means, House
of Representatives, February 13, 2001; Jerry Tempalski, «The
Impact of the 2001
Tax Bill on the Individual AMT,» National
Tax Association Proceedings: 94th Annual Conference on Taxation, November 10, 2001.
Changes in
tax rates and
tax treatment
of investment earnings may
impact the comparative results.
This is below our long - term goal
of mid-teens EPS growth as a result
of the significant negative
impact of weaker international currencies on both gross margin and translated foreign earnings, as well as a higher effective
tax rate.
Others reduce deductions, in which case their quantitative
impact depends on the taxpayer's marginal
tax rate: the higher the
tax rate, the greater the value
of the lost deduction.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets; volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes in relationships with significant customers and suppliers; execution
of the Company's international expansion strategy; changes in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the Company; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the volatility
of capital markets; increased pension, labor and people - related expenses; volatility in the market value
of all or a portion
of the derivatives that the Company uses; exchange
rate fluctuations; disruptions in information technology networks and systems; the Company's inability to protect intellectual property rights;
impacts of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's dividend payments on its Series A Preferred Stock;
tax law changes or interpretations; pricing actions; and other factors.
In addition, the general corporate income
tax rate was reduced in 2012 from 16.5 % to 15 % and the full
impact of this reduction may not be reflected in the monthly results to date.
Our experts discuss the 2018 cash market economic outlook, with a keen eye towards
rate hikes, credit markets, and the
impact of tax reform.
Federal Reserve officials at their January meeting believed that improving global economic prospects and the
impact of the recently passed
tax cuts had raised the prospects for economic growth and future Fed
rate hikes in 2018.
Any future changes in the
tax treatment
of investment earnings or a
rate of return that is lower than the assumed
rate of return may further
impact the comparison.
Excluding items
impacting comparability, the adjusted
tax rate decreased 8.9 percentage points from 27.8 percent to 18.9 percent primarily due to the ongoing benefit
of the lower U.S. federal
tax rate.
That is probably good advice, but still — in this post «fiscal cliff» era
of higher income
tax rates and new healthcare reform - driven investment
taxes, it makes sense to at least look at the
tax impact of your savings choices.
This net
tax benefit includes the estimated
impact of the revaluation
of U.S. net deferred
tax liabilities based on the new lower corporate income
tax rate, partly offset by the unfavorable
impact of a repatriation
tax.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, operating in a highly competitive industry; changes in the retail landscape or the loss
of key retail customers; the Company's ability to maintain, extend and expand its reputation and brand image; the
impacts of the Company's international operations; the Company's ability to leverage its brand value; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets; volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's ability to realize the anticipated benefits from its cost savings initiatives; changes in relationships with significant customers and suppliers; the execution
of the Company's international expansion strategy;
tax law changes or interpretations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the United States and in various other nations in which we operate; the volatility
of capital markets; increased pension, labor and people - related expenses; volatility in the market value
of all or a portion
of the derivatives we use; exchange
rate fluctuations; risks associated with information technology and systems, including service interruptions, misappropriation
of data or breaches
of security; the Company's ability to protect intellectual property rights;
impacts of natural events in the locations in which we or the Company's customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's ownership structure; the
impact of future sales
of its common stock in the public markets; the Company's ability to continue to pay a regular dividend; changes in laws and regulations; restatements
of the Company's consolidated financial statements; and other factors.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets; volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes in relationships with significant customers and suppliers; execution
of the Company's international expansion strategy; changes in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the business and operations
of the Company in the expected time frame; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the volatility
of capital markets; increased pension, labor and people - related expenses; volatility in the market value
of all or a portion
of the derivatives that the Company uses; exchange
rate fluctuations; risks associated with information technology and systems, including service interruptions, misappropriation
of data or breaches
of security; the Company's inability to protect intellectual property rights;
impacts of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness;
tax law changes or interpretations; and other factors.
Our effective
tax rate includes the
impact of certain undistributed foreign earnings for which we have not provided for U.S. federal
taxes because we plan to reinvest such earnings indefinitely outside the U.S..
«While tight supply is expected to keep home prices on an upward trajectory in most metro areas in 2018, both the uptick in mortgage
rates and the
impact of the new
tax law on some high - cost markets could cause price growth to moderate nationally,» said Yun.
It also warned that Beat could «significantly reduce the benefit»
of the reduction in
tax rates, but it wasn't able to estimate the
impact now.
These positive earnings drivers were more than offset by the combined
impact of several factors, including increased energy - related provisions for credit losses, a 17 basis point decline in net interest margin, moderate growth
of non-interest expenses, the addition
of acquisition - related contingent consideration fair value changes reflecting performance within CWB Maxium Financial (CWB Maxium), higher preferred share dividends, and the 20 % increase to CWB's income
tax rate in Alberta.
By contrast to the so called middle - class
tax cut which favours the more affluent, the CCB will have a positive
impact upon the lamentably high
rate of child poverty in Canada (which stood at 16.5 % in 2013), and will promote greater income equality among families with children.
Corporate financial managers must consider the
impact of interest
rate forecasts, future GDP estimates and potential
tax reform on corporate cash strategies.
They estimate the
impact of the corporate
tax rate reduction from 18 % to 15 % in 2012 at $ 6.2 billion [3], in line with Finance's first estimate but considerably higher than their latest estimate..
[3] «The Economic
Impact of Corporate
Tax Rate Reductions» January 2011 Canadian Manufacturers & Exporters
The adverse
impact of the
tax plan on munis will likely reduce new issuance by up to 25 % in 2018, probably enough to negate higher yields caused by lower
tax rates.
He said gains to workers from a corporate
rate cut would have a far greater
impact on their living standards than the framework's proposed changes to the individual income
tax code, such as doubling the size
of the standard deduction.
In 2007, the fiscal
impact of the proposed reductions in the corporate
tax rate was estimated by Finance at $ 1.3 billion in 2008 - 09, rising to $ 6.1 billion in 2012 - 13.
Within budgetary revenues, personal income
tax revenues declined by $ 1.2 billion (0.8 %), largely reflecting the
impact of tax planning by high - income individuals, which recognized
tax liabilities in the 2015 taxation year before the new 33 per cent
tax rate came into effect in 2016.
A report by the White House Council
of Economic Advisers is the first official calculation
of the
tax framework's
impact and its focus on cutting corporate
rates underscores how central that effort is to the administration's overall plan.
* After -
tax returns are calculated using the historical highest individual federal marginal income
tax rates and do not reflect the
impact of state and local
taxes.
The cumulative
impact of tax and fiscal policies might imply a GDP growth
rate quarter to quarter
of 3.5 % to 4 % in some instances for 2018.
Early advocates
of these type
of tax cuts argued that lower
tax rates would increase economic activity and thereby revenues. However, thereâ $ ™ s little evidence changes in
tax rates, except in more extreme cases, have a major
impact on real economic activity.
Over the long run, the US dollar (USD) exchange
rate should appreciate to offset the competitiveness
impact of the
tax.
Most
of tax reform has a direct revenue
impact and probably could be enacted through reconciliation, but it would either need to be revenue - positive over the long run or else rely on gimmicks, such as sun - setting
rate reductions or other revenue - reducing provisions, to avoid increasing the long - term debt.
Should this changing profile
of our province's balance sheet result in a credit
rating downgrade, the
impact will be hundreds
of millions
of dollars being committed to interest
rate payments, instead
of services or
tax reductions.
Examples
of these risks, uncertainties and other factors include, but are not limited to the
impact of: adverse general economic and related factors, such as fluctuating or increasing levels
of unemployment, underemployment and the volatility
of fuel prices, declines in the securities and real estate markets, and perceptions
of these conditions that decrease the level
of disposable income
of consumers or consumer confidence; adverse events
impacting the security
of travel, such as terrorist acts, armed conflict and threats thereof, acts
of piracy, and other international events; the risks and increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread
of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment
of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount
of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion
of our assets pledged as collateral under our existing debt agreements and the ability
of our creditors to accelerate the repayment
of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange
rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss
of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price
of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare
rates and occupancy levels at different times
of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability
of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the
tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
A lower corporate
tax rate and a cap on business interest payments that exceed 30 percent
of adjusted taxable income deductions could
impact lower -
rated companies, specifically those that employ significant leverage.