Raymond James Financial, Inc. (NYSE:RJF) Files An 8-K Other EventsItem 8.01 Other Events
On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, which significantly revised the U.S. corporate income tax system by, among other things, lowering corporate income tax rates from 35% to 21% and implementing a territorial tax system which includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. Raymond James Financial, Inc.’s (the “Company”) U.S. federal statutory tax rate will be 24.5% for its fiscal year ended September 30, 2018, which reflects a blended federal statutory rate of 35% for its first fiscal quarter and 21% for the remaining three fiscal quarters. This blended statutory rate will be the basis for calculating the Company’s effective tax rate, which will be impacted by other factors, for the first fiscal quarter ended December 31, 2017.
The Company estimates, based on currently available information, that net income for its first fiscal quarter ended December 31, 2017 will be negatively impacted by approximately $120 million, primarily due to the remeasurement of U.S. deferred tax assets at the lower enacted corporate tax rate and, to a lesser extent, the repatriation tax. This amount will be partially offset by the impact on our first fiscal quarter net income of a lower blended federal statutory corporate tax rate. This estimate incorporates assumptions made based on the Company’s current interpretation of the Tax Act and may change, possibly materially, as we complete our analysis and receive additional clarification and implementation guidance.
The Company’s first fiscal quarter earnings report is scheduled to be released after the markets close on Wednesday, January 24, 2018.
Forward-Looking Statements
This Current Report on Form 8-K includes “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future anticipated savings, financial results (including expenses and earnings), changes in tax rules and regulations and regulatory developments. In addition, words such as “expects,” “estimates,” and future or conditional verbs such as “will,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable based on our current interpretation of the Tax Act, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.
About Raymond James Financial, Inc. (NYSE:RJF)
Raymond James Financial, Inc. (RJF) is a financial holding company. The Company’s subsidiaries include Raymond James & Associates, Inc. (RJ&A), Raymond James Financial Services, Inc. (RJFS), Raymond James Financial Services Advisors, Inc. (RJFSA), Raymond James Ltd. (RJ Ltd.), Eagle Asset Management, Inc. (Eagle), and Raymond James Bank, N.A. (RJ Bank). It operates through five segments: Private Client Group (PCG), Capital Markets, Asset Management, RJ Bank and the Other segment. The Private Client Group segment includes the retail branches of the Company’s broker-dealer subsidiaries located throughout the United States, Canada and the United Kingdom. The Capital Markets segment includes institutional sales and trading in the United States, Canada and Europe. The Asset Management segment includes the operations of Eagle, the Eagle Family of Funds and other fee-based asset management programs. RJ Bank segment provides corporate loan, securities based loans (SB) and residential loans.