1 billion as of June 30, 2014, Prudential Capital offers senior debt and mezzanine capital, leveraged leases
, credit tenant leases, and equipment finance to companies, worldwide.
The charge related to Southern Company's tax treatment of investments in leveraged leases
significantly impacted the presentation of earnings and earnings per share for the three months and six months ended June 30, 2008, and such charges related to these investments are not expected to occur in the future.
FASB has issued a staff position that requires companies to recalculate their leveraged leases
if there is a change in the timing of cash flows relating to income taxes generated by the leveraged lease
can be a complex and intricate vehicle for financing equipment in today's marketplace.
This applies to leveraged leases
(where the lessee retains tax benefits) and it is aimed at further tightening the definition of a lease; however, these finance lease laws don't actually go into effect until 1987.
96 per share to reflect the Company's current assessment of certain leveraged leases
being challenged by the Internal Revenue Service (IRS).
42 per share related to the tax treatment of leveraged leases
Earnings for the second quarter and six months ended June 30, 2008, included a $67 million charge, or 9 cents per share, related to three leveraged leases
from the 1990s when Southern Company pursued development of international energy projects.
Non-tax-oriented leveraged leases
and synthetic leases
42 charge related to tax treatment of leveraged leases
-- Pre-tax, pre-provision earnings were $602 million; $745 million excluding leveraged lease
and merger expense impact, up 16 percent from a year ago -- Noninterest income increased 8 percent from the second quarter of 2007 -- Payments processing income growth of 15 percent -- Deposit service revenue up 12 percent -- Corporate banking income growth of 26 percent -- Mortgage banking revenue up 108 percent -- Net interest income is flat versus the second quarter of 2007; up 17 percent excluding leveraged lease
litigation charges -- Average loans up 11 percent and transaction deposits up 6 percent -- Second quarter issuance of $1.
These improvements in liquidity assuage the primary EIX credit concerns which include the volatile operating cash flows and still high debt leverage at its unregulated power supply subsidiary and a pending dispute with the Internal Revenue Service regarding accounting for certain leveraged leases
Regardless of whether KeyCorp decides to appeal the trial court tax decision, management believes that the applicable accounting guidance requires KeyCorp to recalculate lease income recognized on its entire portfolio of contested leveraged leases
- not just the single leveraged lease
subject to the court decision.