Intermec, Inc. (NYSE: IN), in its Form 10Q filed today, issued final GAAP financial results for the quarter ended April 1, 2012 reflecting a GAAP loss of $(242.1) million, or $(4.03) per diluted share. Two non-cash adjustments, a valuation allowance for deferred tax assets and an impairment charge against the Company’s goodwill balance, caused the GAAP loss to be greater than the Company’s preliminary results announced earlier this month.
The Company increased its deferred tax assets valuation allowance by a net $206.9 million to offset the entire U.S. deferred tax assets balance. A valuation allowance is required by U.S. GAAP if it is more likely than not that all or part of a deferred tax asset cannot be realized in the future. After considering a number of factors, most significantly the Company’s historical cumulative GAAP losses for the three-year period preceding the quarter and its forecast for U.S. profitability for the remainder of the year, the Company recorded a non-cash charge to increase the allowance up to the remaining balance of the U.S. deferred tax asset. The Company previously recorded an allowance of $21.4 million in the fourth quarter 2011.
The Company also recognized a non-cash impairment charge of $14.9 million against goodwill related to its Voice Solutions business segment. The impairment was based on an analysis of a number of factors after a decline in its market capitalization following the Company’s first quarter 2012 earnings announcements. The impairment did not result from underperformance of its recent acquisition of Vocollect, which is performing in line with expectations. The impairment charge is an estimate based on completion of step one of the goodwill impairment test prescribed by GAAP. The Company expects to complete the second step of this analysis and adjust the impairment amount as needed when it prepares its financial results for the second fiscal quarter of 2012.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV