Adjusted EBITDA, excluding LIFO
is expected to be in the range of USD40m to USD42m for the Q4 of 2017, a growth from Adjusted EBITDA, excluding LIFO
of USD36m in the Q4 2016 and USD38m in the Q3 2017.
Consistent with full-year trends, pretax results were buoyed by favorable comparisons in LIFO
and special items.
In the letter to Congress, industry proponents claim LIFO
is an appropriate means of evaluating inventory and its repeal would significantly and permanently harm many businesses, including metalcasting facilities.
Earnings for 2013 included a slew of special items: $241 million (all figures net of tax) of acquisition-related amortization; $124 million in tax add-back related to the Alliance Boots deal; $60 million in acquisition-related costs; a $151 million LIFO
provision; $47 million in costs related to a settlement with the Drug Enforcement Administration; $8 million stemming from the transition to Amerisource-Bergen Corp.
However, Congress added a LIFO
recapture provision in Sec.
IFRS does not recognize LIFO
, yet taxpayers with business operations outside the United States are often required to provide restated financial information that complies with IFRS.
If the inventory items are specific and separately identifiable, the costs can be uniquely allotted, but if the inventory items are identical and interchangeable, then an assumption of the flow of costs can be made--first-in, first-out (FIFO), average costs, or LIFO
A recent CPA Journal article discussed the financial and tax effects when a company discontinues using LIFO
, why companies might voluntary switch from LIFO
to another inventory method, and strategies that a company should consider when timing the switch (Linda Hughen, Jane R Livingstone, and David Upton, "Switching from LIFO
: Strategies for Change, "April 2011, pp.
Thiel Machinery, a successfully growing machinery company, is grappling with the potential impact of losing the ability of using LIFO
inventory costing methods on its current and future funding sources.
For most entities, this decision comes down to one of three choices: the average cost method, the FIFO (first-in, first-out) method, and the LIFO
(last-in, last out) method.
Conversely, for customers who called in first and had to wait via the LIFO
method, they knew no different and assumed their wait time was normal.
tends to boost a company's inventories and reduce its earnings, thus lowering its tax bill.