As shown on Table A, total adjusted expenditures for 2012 related to our medical device initiatives, which exclude DVT related expenses, increased by $6.4 million to $28.5 million for 2012 from $22.1 million in 2011. This information is provided in order to enhance the reader’s understanding of our core business, which is being impacted by our medical device initiatives.The 2012 full-year effective tax rate was 171.3% compared to 31.6% for the same period of 2011. This increase was primarily attributable to approximately $6.2 million of tax charges recorded in connection with our Swiss orthopaedic consolidation. These charges relate to the loss of our Swiss tax holiday, due to our decision to discontinue manufacturing in Switzerland and the establishment of a valuation allowance on our Swiss deferred tax assets, as it is more likely than not that they will not be fully realized. Additionally, our 2012 effective tax rate includes losses from our Swiss operations, the benefit of which are recorded at a lower effective tax rate, thus increasing the overall effective tax rate of the Company, and does not include the benefit of the U.S. R&D tax credit, which expired at the end of 2011. The U.S. R&D tax credit was reinstated in the first quarter of 2013 retroactive to the beginning of 2012. As required under U.S. GAAP, the benefit of both the 2012 and 2013 U.S. R&D tax credit will be recognized in 2013.
Greatbatch, Inc. Reports 2012 Fourth Quarter And Full Year Results
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.