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Agco Executive Summary

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AGCO have manufacturing facilities or other physical presence in approximately 33 countries, and sell their products in more than 140 countries. Based upon the location of the company’s operations, the income from operations in North America in 2014 was 219.2 million, in South America was 134 million, and in Europe was 500.2 million. The income from operations among North America, South America and Europe in 2014, 2013, and 2012 were pretty stable. The income from operations in Asia and Pacific in 2013 and 2012 was 0.5 million, 10.2 million respectively, and 11.5 million operation loss in 2014.

AGCO recorded tax provision of $187.7 million in 2014 compared to $258.5 million in 2013. This difference is mainly impacted by the differing tax rates of the various tax jurisdictions in which AGCO operates, and losses in jurisdictions where no income tax benefit is recorded. …show more content…

These net operating loss carryforwards of $265.5 million were entirely from the foreign market, outside of the United States. These losses, mainly related to the operating loss in Brazil, China, Netherlands and Russia. AGCO could reduce their effective tax rate to 34.8% by taking advantage of these unrecognized tax benefit. At December 31, 2014, AGCO had $130.6 million unrecognized income tax benefit, which will all affect company’s effective tax rate even more when these benefits

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