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Hewitt,

Instead of calculating investment in net deferred tax assets using the deferred tax asset footnote, should I instead be pulling this number from the provision for income tax portion of the note? For many companies, the "deferred" portion of the income tax provision note is the value they list under Op. CF. The value I calculate using def. tax assets/liabs is many times different than what is listed on the S. of CF.

Additionally, if a company has a significant increase in def tax assets or reduction in def tax liabs in a year, do you always increase the accrual tax amount? For some companies, this increase is abnorally large and will cause a sizable defensive or enterprising profit to turn negative. At times, I will increase the defensive taxes, but exclude it on the enterprising income statement (ie, start w/ the accrual taxes in the enterprising tax calculation). I don't know if that makes sense, but I try not to penalize the company on both statements for this "use" of cash.

Thanks again for your help. And, sorry for all of the questions.

Matt
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