Mckenzie's valuation bible
Hey,
currently I am valuing some companies but seem to have issues with calculating the cash taxes..
I need this for the forecasting efforts and cannot just use the cash statement.
So far i did get to the correct marginal tax rate and have what i think is the operational tax however a correction has to be done now to go from operational tax rate to cash tax rate..
From what i understand it is a matter of finding the difference in "operating" DTAs and DTLs..
But i am having a hard time distinguishing the operating from not operating parts of the DTAs
These are all DTAs and DTLS
Current deferred income tax assets
accrued liabilities and deferred revenue
Provisions for doubtful accounts
Acquisition and integration-related liabilities
Convertible not hedge
Valuation allowance
Current deferred income tax liabilities
accrued liabilities and deferred revenue
Prepaid expenses
Non-current deferred income tax assets
net tax loss carryforwards
Accrued liabilities and deferred revenue
Depreciation and amortization
Tax credits
Convertible note hedge
Acquisition and integration related liabilities
Other
Valuation allowance
Non-current deferred income tax liabilities
depreciation and amortization
other
Just using the net DTLs 2013 - net DTLs 2012 is not correct, it seems that is has to be split into operating and non operating according to the book on valuation from Mckenzie
Regards
Who the fuck is Mckenzie?
a girl I poked w/ my magic wand last nite
Who's McKenzie?
This is a somewhat tricky topic in general. Sometimes looking at the balance sheet amounts is a good proxy, but you can cross-check with the deferred income tax line in the operating section of the statement of cash flows. The values reported on the cash flow statement are often close but not always.
McKinsey and company?
Hahaha definitely McKenzie & Company.
Current deferred income tax assets
accrued liabilities and deferred revenue - Opt Provisions for doubtful accounts - Opt Acquisition and integration-related liabilities - Non Opt because it is similar to restructuring Convertible not hedge - Non Opt Valuation allowance - Non Opt
Current deferred income tax liabilities
accrued liabilities and deferred revenue - Opt Prepaid expenses - Opt
Non-current deferred income tax assets
net tax loss carryforwards - Non Opt Accrued liabilities and deferred revenue - Opt Depreciation and amortization - Dep is Opt / Ammort is Non Opt because of it being an intangible ... check page 148 McKinsey Tax credits - Opt -- but these should be deducted from Operating taxes initially because Tax Credits usually are not kept as deferred tax Convertible note hedge - Non opt Acquisition and integration related liabilities - Non Opt Other - Non Opt Valuation allowance - Non Opt
Non-current deferred income tax liabilities
depreciation and amortization - same as above other - Non Opt
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