Non-GAAP operating cash flow: For the 6 months ending June 30, 2019, net income reflects $373,351 of non-cash charges (depreciation and stock option expenses), loss/gain on involuntary disposition, interest income, interest expense, (gain)/loss on investment, write down of inventory, deferred tax expense
, and income tax.
This column walks the reader through a discussion of current and deferred tax expense
as a bridge to ultimately preparing the rate reconciliation.
The cumulative change in deferred tax expense
caused a 70 percent decline in the overall provision for income taxes, resulting in net income for the segment to more than double to $17.1 billion in 2018.
Accordingly, the company is restating its consolidated financial statements as of and for the year ended December 31, 2016 to increase its deferred tax liabilities and deferred tax expense
by $399.1M, with a corresponding decrease in net income and earnings per share.
SemGroup also had an $1 million adjustment related to a deferred tax expense
that's the result of lower corporate tax rates.
The automaker also incurred a deferred tax expense
of Rs 185 crore, more than four times the amount it spent last year.
The company said the increase in earnings is primarily due to reduced income tax expense in the fiscal 2016 quarter relative to the year ago period, due to the timing of recording deferred tax expense
in the prior year.
In this case, the current tax benefit will not be offset by a corresponding deferred tax expense
GAAP Year 1 Year 2 Year 3 Deferred tax assets $ 400 (a) $ 400 (b) $ (800) Additional paid-in capital $ - $ - $ (1,600) Deferred tax income $ 400 (a) $ 400 (b) $ - Deferred tax expense
$ - $ - $ 2,400 (c) Current taxes payable $ 2,400 Deferred tax expense
$ (2,400) (a.) 40% tax rate times $1,000 stock compensation in Year 1.
Factoring out a deferred tax expense
of $11.5 million, the red ink from continuing operations would have totaled $23.9 million.
Thus we consider that the company's result will reflect the expense with the current income tax as well as the deferred tax expense
, which will result in the provision of financial statements as close as possible to reality.