Subscribe to Print Edition | Wed., March 05, 2008 Adar1 28, 5768 | | Israel Time: 02:41 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 02:57 04/03/2008 How Teva fell flat on its ARS By Yoram Gabison Tags: israel, business, teva Teva's report for 2007 highlights its imbroglio in auction rate securities (ARS). Teva bought 10- and 40-year bonds, but interest rates are reset once every 28 days. The bonds received an AAA rating, but neither the issuer nor the brokering investment bank are obliged to buy them back if the auction fails. Teva invested $651 million in such instruments, but with the liquidity crisis that began last summer, 45 auctions on bonds in which Teva holds $387 million failed, in addition to the $38 million nominal value of bonds whose rating was cut by a number of rating agencies. Because auctions on such bonds have been suspended since mid-2007, Teva decided to reclassify the investments as long-term. The company was forced to report a fair value for these bonds as at the end of last year based on their current value, and concluded that they had temporarily lost $59 million, which was reported as unrealized negative "other comprehensive income." Advertisement If Teva had concluded that the lower value was not a temporary issue, it would have reduced its net profit, preventing the firm from meeting analysts' forecasts for the fourth quarter of 2007. Teva notes that its fair-market-value model, assuming it to be temporary, was based on a time frame in which the bonds' current value is less than principle value, and on the bond issuers' financial condition. Teva notes that it has decreased its investments in auction rate securities since the beginning of this year to just $444 million in principal as of February 21. The firm's new chief financial officer, Eyal Desheh, may have to significantly devalue the investment made by his predecessor. With the adoption of FIN 48, Accounting for Uncertainty in Income Taxes, Teva reported unrecognized tax benefits of $338 million at December 31, 2007. Bookmark to del.icio.us   UN hushes Human Rights Council observes moment of silence for Gaza 'martyrs.' Hitler's sign Document shows that British spies hired a flamboyant astrologer in World War II.

Today Online Bradley Burston: Nine immoral solutions for Gaza - a guide Responses: 168 Israel: Latest sanctions against Iran not enough Responses: 184 Obama says United States should not meet with Hamas Responses: 116 Nehemia Shtrasler: There is no way out but to talk to Hamas Responses: 95 Researcher: Moses was tripping at Mount Sinai Responses: 180 More Headlines 23:48 Palestinians: IDF kills infant, top Islamic Jihad man in S. Gaza 02:23 IDF officers: We faced fierce but unorganized resistance in Gaza 20:39 UN rights body holds moment of silence for Gaza 'martyrs' 02:33 Race to the White House: The big election questions 02:19 What if seaweed could power the world? 20:18 Obama and Clinton neck and neck in possibly last U.S. primary 00:02 Thousands protest IDF Gaza offensive in Umm al-Fahm 21:48 From Superman to Sabraman, museum exhibits Jewish comics 18:42 Deputy Defense Min. orders louder rocket warning siren in Ashkelon 01:54 Billboards show Green organizations they can't take Shas for granted 18:25 Hamas lets Fatah man who lost two kids in IDF raid visit their graves Previous Editions Select Day 04 mar 03 mar 02 mar 29 feb 28 feb 27 feb 26 feb 25 feb 24 feb 22 feb 21 feb 20 feb

Special Offers Advertisement Free the Palestinians from: Corrupt Kleptocracy, Tyrannical Theocracy, Abysmal Anarchy Long-term Israel programs MASA is your gateway. More programs. More grants. NEW! Dan Boutique Jerusalem Hotel Hip Dan Hotel in Jerusalem. Attractive Introductory Rates 7589 rockets fired so far HELP US TO HELP THEM Marina Royale Herzelia Pituach Your Luxurious Suite While Staying in Israel Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. ISRAEL BONDS Build Israel Israel bonds - a multi-purpose way to celebrate Israel's 60th Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved