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Innospec Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 2, 2011 02:29PM
Innospec Inc. (IOSP) filed Quarterly Report for the period ended 2011-09-30.
Highlight of Business Operations:Income taxes: the effective tax rate was 33.3% and 4.2%, in 2011 and 2010, respectively. Once adjusted for the NewMarket Corporation civil complaint settlement and for the adjustments of income tax provisions, the effective tax rate was 21.2% compared to 19.8% in 2010. The increase of 1.4 percentage points was primarily due to the third quarter of 2010 benefiting to a greater extent from the positive impact of taxable profits in different geographical locations. There was also a $2.5 million (2010 $1.1 million) net deferred tax credit in the third quarter of 2011, primarily in respect of pension plan unrecognized actuarial net losses, following the United Kingdoms 1% reduction in the corporation tax rate in April 2011 and the further reduction of 1% from April 2012, both enacted in July 2011.
At September 30, 2011 and December 31, 2010 we had cash and cash equivalents of $132.1 million and $107.1 million, respectively, of which $130.1 million and $104.9 million, respectively, was held by non-U.S. subsidiaries principally in the United Kingdom. The Company is in a position to control whether or not to repatriate foreign earnings but does not need, or expect, to do so in the foreseeable future and hence has not provided for future income taxes on the cash held by foreign subsidiaries although we will continue to monitor this position.