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Hi Matthew

Glad to have your help here. Difficult topic

hard following your numbers

drop of 27.3 million in accrued income taxes.

decrease in accrued income taxes of 30.8 million.


Why two different numbers?


Provision: 54.1 million
add: 124 million Tax Benefit from Stock Options
less: 87.8 Deferred Income Taxes
less: 27.3 Accrued Income Taxes
Taxes Paid: 45.2 million


Can you translate what you did here and why

Accrued taxes are what the company owes but hasn't paid--thats why you subtracted it from provisional--
Added back the tax benefit from options because it reduces provisional?

From there I can't tell what you did.

And from Mulford's book it appears that you treat deferrals as a subtraction from provisional whether you end up with a net asset or liability. Does that sound right?

The question appears to be ralated to companies with negative EBIT due to the impact of options expense

Can this create an NOL that causes current taxes to be punitive and show a business with poor defensive and enterprising earnings? Seems to me the negative EBIT would be the bigger concern, not the taxes
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