The most recent SEC filling is indicating a tax presev plan of $450 milj
1. What are the NOLs?
The NOLs are the Company’s net operating loss carryforwards and other tax attributes that can generally be used to offset our future taxable income and
therefore reduce our federal income tax liabilities. The Company’s ability to use the NOLs could be adversely affected if we experience an “ownership
change” as defined under Section 382.
2. How important are the NOLs?
We had approximately $409.3 million of net operating losses as of December 31, 2010. While there can be no assurance that Triad will generate taxable
income in the future, we believe that the NOLs are a very valuable asset. Assuming a 35% federal income tax rate, and that we are able to use all of our
NOLs to offset future federal income tax liabilities, we could save up to an aggregate of approximately $143.3 million in federal income taxes over the
next 20 years. Because the NOLs can be carried forward over many years, we may need to continually manage our Section 382 risk for a significant
period of time. Also, the amount and timing of our future taxable income, if any, cannot be accurately predicted; therefore, we cannot estimate the exact
amount of NOLs that we can ultimately use to reduce our federal income tax liability.