CONVERTING OPERATING TAXES TO OPERATING CASH TAXES 421 EXHIBIT 20.8 Walmart: Reorganization of Deferred-Tax Accounts $ million 2017 2018 Operating deferred-tax assets (DTAs), net of liabilities (DTLs) Accrued liabilities 2,482 2,135 Share-based compensation 217 245 Accelerated depreciation (3,954) (4,175) Inventory (1,153) (1,354) Operating DTAs, net of DTLS (2,408) (3,149) Nonoperating deferred-tax assets (DTAs), net of liabilities (DTLS) Loss and tax credit carryforwards Valuation allowances Loss carryforwards, net of allowances Acquired intangibles Other assets net of liabilities Nonoperating DTAs, net of DTLS DTAs, net of DTLS 1,989 2,964 (1.843) (2,448) 146 516 (401) (2,099) 711 232 456 (1.351) (1,952) (4,500) 4. Exhibit 20.11 presents deferred-tax assets and liabilities for ToyCo. Using Exhibit 20.8 as a guide, reorganize the deferred-tax table into two categories: net operating deferred-tax assets (net of operating deferred-tax liabilities), and net nonoperating deferred-tax assets (net of nonoperating deferred-tax liabilities). In year 3, ToyCo generated $200.7 million in operating taxes on $673.6 million of EBITA. Using this information, what are the cash taxes in year 3? What is the percent of operating taxes that were deferred, and what is the operating cash tax rate? ... Q + 64% Q4-2.PNG Q EXHIBIT 20.11 ToyCo: Deferred-Tax Assets and Liabilities $ million Year 1 Year 2 Year 3 Deferred-tax assets Accounts receivable 20.5 16.8 17.3 Inventories 24.6 20.2 15.9 Losses and tax credit carryforwards 39.1 34.4 29.6 Pension 10.0 34.1 26.6 Deferred-tax assets 94.2 105.5 89.4 Deferred-tax liabilities Convertible debentures 40.2 Depreciation of long-lived assets 47.7 47.6 56.8 121.5 120.3 Equity method investment 26.9 Deferred-tax liabilities 87.9 169.1 204.0