Excluding the debt retirement loss,
LIFO, EnvisionRx amortization, and M&A costs, adjusted pretax income was down by 54.5% to $131.3 million.
However, excluding special items --most notably a $160.4 million
LIFO charge--adjusted operating income for the half improved 13.3% to $739.3 million.
1363(d) prevents a taxpayer from avoiding the BIG tax related to the
LIFO recapture amount, it does not eliminate the need to consider additional built-in gain related to
LIFO inventory.
During inflationary times, companies can reduce their taxable income by using the last-in, first-out (
LIFO) cost flow assumption for inventories.
Initial Cost--specific Cost--specific cost, measurement cost,
LIFO, average cost, FIFO.
Changing from
LIFO to another inventory method would generally increase a company's taxable income.
To find out if other contact center veterans agreed with the
LIFO routing changeup, I posted the information on our blog site to see if it would solicit any thoughts.
If
LIFO alone was applied it is highly likely that a different conclusion would have been reached.