Question-and-Answer Session
Operator
Thank you, ladies and gentlemen. At this time we will be conducting a question-and-answer session. (Operator Instructions) Our first question comes from the line of Collin Gerry with Raymond James. Please proceed with your question.
Collin Gerry - Raymond James & Associates, Inc.
Hey, good morning guys.
William H. Wells
Good morning, Collin.
Collin Gerry - Raymond James & Associates, Inc.
I hate to open up the questions with a tax question, but did I hear you right that there is an additional 50 million of expected tax savings going forward?
William H. Wells
Well, Collin that’s a potential recovery and we’re going to climb to that – to that 475 but under the accounting rules we only recognize about a third of the benefits there.
Collin Gerry - Raymond James & Associates, Inc.
On the income statement you are going to recognize a third?
William H. Wells
That’s correct, so there is 75 sitting on the balance sheet offset by about $50 million sitting on the liability side.
Collin Gerry - Raymond James & Associates, Inc.
Okay. So I mean how would you [ph] in vision that [indiscernible] pretty hard to guess but how do you [ph] invasion in the income statement, is that something we see in couple of quarters or the next six quarters?
William H. Wells
Well, I think it is a long term proposition Collin, it’s hard to speculate on what we collect and when but it is probably closer to six quarters than two for sure.
Collin Gerry - Raymond James & Associates, Inc.
Okay. That’s helpful. Going back to another comment you made today here right at 2009 was a record year for after market and in [indiscernible]?
William H. Wells
It will be, yeah we are tracking ahead of plan substantially, and ahead of our previous record and we fully expect to set a new records this year.
Collin Gerry - Raymond James & Associates, Inc.
Well, I just seem like an interesting year to be [indiscernible] on the positive side. I guess, walk us through may be some of the changes that have happened in the recent years over [indiscernible] a record year for after market.
William H. Wells
You are [ph] talking of the after market parts.
Collin Gerry - Raymond James & Associates, Inc.
Right. I mean I guess, is that more driven by the mining side or is it – I just think with the land rig count being as low as it is – it seems hard to imagine that after market would be that strong?
- To read the full transcript on Seeking Alpha, click here »
