1. US Tax Reform Impact on Financials
Equity Data

2. What is it? 2 most common adjustments:
Re-valuation of deferred tax assets and liabilities at the new tax rate
A charge for the repatriation tax on accumulated foreign earnings
Eg. MSFT
Huge loss in Quarter
ending 12/31/2017

3. What to expect for Financials & Calculations?
Income Statement: One time huge charge in quarter ending 12/31/2017 in Provision for Tax: to account for Deferred Tax Asset/ Liabilities Changes and tax charge for deemed repatriation of foreign income.
Balance Sheet: Significant changes to Deferred Tax Asset & Liabilities due to changes in tax rate.
Calculations: P/E (GAAP) will be distorted for the next 12 months. Client questions.. Eg. MSFT (see table to the right)

4. Follow Ups
Equity Data
Already started collecting Reported Normalized EPS/ Net Income (OPM). Will export in March/April.
Will investigate collection of Irregular Item, Supplemental if Reported Normalized EPS/ Net Income is not reported
Will recalculate PE and Normalized PE using reported data. For MSFT, expected value for Normalized PE will be in the 30+ range as it was before the latest earnings report.
Products
Export and use Normalized PE as default PE on product display

5. More Examples
IBM
INTC

6. Questions?
Please contact Jo Guo or Nelson Dos Santos