At the end of 2011, the federal research and development tax credit expired, and it has not yet been extended for 2012. In this circumstance, GAAP requires us to estimate and record our effective income tax rate, assuming that the R&D credit is not extended. For purposes of this conference call and our calculation of adjusted net earnings, however, we are assuming that the tax credit will be extended for 2012 as in past years. As a result, comments referencing first quarter results and our guidance for 2012, including EPS amounts, are presented based on an effective income tax rate that contemplates the extension of the tax credit retroactive to January 1, 2012. To the extent the federal research development tax credit is not renewed, our effective income tax rate for 2012 would be higher than what is being presented during this call.Earnings per share were $0.86 for the first quarter of 2012, an 8% increase over adjusted earnings per share of $0.80 in the first quarter of 2011 and above our guidance range of $0.82 to $0.84.
St. Jude Medical's CEO Discusses Q1 2012 Results - Earnings Call Transcript
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