Updating and reviewing the current regional provision

Tax Provision calculates a current regional provision for each entity using the following calculation:

• National taxable income

  These values are automatically populated from the Current Provision input app (NA0201).

• Regional income tax adjustment

  These values are a combination of automated Regional tax addback from the national current provision and manual amounts that allow for adjustments to the automated values.

• Regional net operating losses

  Regional net operating losses generated in the current year and deferred are manually input in the Current Provision input app (RA0201) and automatically flow to the gross temporary difference roll forward and thereby automate the calculation of the related deferred tax asset. Loss carryforwards, utilized in the current year are manually input in the Current Provision input app (RA0201) in order for the system to properly calculate the impact of the utilization. The system then tracks loss carryforwards in the gross temporary difference roll forward but not the detailed composition (by year, expired, etc.).

• Regional tax credits

  Regional tax credits utilized in the current year are input in the Current Provision input app (RA0201) and automatically flow to the Temporary Differences input app (RA0301) and thereby automate the calculation of the related deferred tax asset. The system then tracks tax credit carryforwards in the gross temporary difference roll forward but not the detailed composition (by year, expired, etc.).

• Regional Additional provision items

  These values are manual adjustments entered on a tax-affected basis. The Tax Provision system has additional provision items (APIs), which are on a tax-affected basis and manually input. These items are used for taxes that are not based on taxable income multiplied by a tax rate (i.e. Texas margin tax) or other adjustments that are reported in the current provision of the regional tax process (i.e. UTP). These additional provision items generally impact the overall tax provision and are also reflected in the ETR report as rate reconciliation adjustments. The Regional income tax provision, as calculated above, automatically flows to the national current provision as a Regional income tax deduction. It is recognized that the Longview calculation methodology may differ from the current Excel-based provision process, and therefore, arrive at a different result for the FY2009 provision calculation. However, any differences are auditable and can be reviewed with your tax project team members.

Current Provision input app (RA0201)

Use this input app to review and post adjustments to the automated pre-tax income and permanent and temporary difference amounts.

This input app includes Analyze functionality. For more information, see “Analyzing data for automation source information”.

This input app contains the following symbol in the Elements dimension (across):

• GrsCY_ASC—Current Year

  This symbol represents the current period.

To update the regional current provision

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Regional Annual.
3. Use the drop-down list or the symbol selector to select the appropriate entity.

   For more information, see “Using the Symbol Selector”.

4. Click RA0201 - Current Provision.lvapp. The input app opens in the workspace.
5. In the TaxIncomeBeforeLoss_ASC—Taxable Income/(Loss) Before Net Operating Losses category, and review data for the following symbols:

   Symbol	Description
   NIBTAdj—GAAP Net Income/(Loss) Before Tax Adjusted	Automatically populated from the Current Provision input app (NA0201).
   GPerm—GAAP to STAT Permanent Differences
   GTemp—GAAP to STAT Temporary Differences
   StPerm—STAT to Tax Permanent Differences
   StTemp—STAT to Tax Temporary Differences
   DedIncTax—Total Deductible Income Taxes

6. Expand the DedIncTaxRT—Total Deductible Income Taxes Reversal category, and enter Regional data for the following symbols:

   Symbol	Description
   RegIncTaxR—Regional Income Taxes Reversal	Use this symbol to reverse the regional income tax from the national current provision.
   OthIncTaxR—Other Income Taxes Reversal	Use this symbol to reverse the other income tax from the national current provision.
   RegIncTaxRAdj—Regional Income Taxes Reversal Adjustment	Use this symbol to make a manual adjustment to the regional income taxes reversal.

7. Enter any regional permanent and temporary differences for the following accounts:

   Symbol	Description
   RPxxx—Company-specific	Company-specific adjustments to regional permanent differences.
   RTxxx—Company-specific	Company-specific adjustments to regional temporary differences.

8. Expand the RegNLossT—Total Regional Net Operating Loss category, and enter data for the following symbols:

   Symbol	Description
   RegNLossCYGA—Regional Net Operating Loss - CY Generated - Adjustment	Manual adjustment for the calculated net operating loss.
   RegNLossCYU—Regional Net Operating Loss - CY Utilized	Utilization of an existing net operating loss carryforward in the current period.
   RegNLossCA—Regional Net Operating Loss - Consolidating Adjustment	Impact of any consolidated level adjustment to net operating losses at the legal entity level.
   RegNLossNC—Regional Net Operating Loss - Non-Current	Any other activity related to net operating losses that are non-current.

9. For RegTaxCrPrm—Regional Tax Credits - Permanent, enter the Permanent regional foreign tax credits.
10. Expand the RegTaxCrT—Total Regional Tax Credits category, and enter data for the following symbols:

    Symbol	Description
    RegOthTaxCY—Regional Other Tax Credits - Temporary - Current	Current regional tax credits.
    RegOthTaxNC—Regional Other Tax Credits - Temporary - Non-Current	Non-current regional tax credits.

11. Expand the RegAddCurrentM_ASC—Regional Additional Provision Items - Manual category, and enter data for the following symbols:

    Symbol	Description
    RegAddCurrentM002A_ASC—UTP Tax - Permanent Differences - Regional	Use this symbol to manually enter the tax impact from regional level Uncertain Tax Positions (UTP) related to permanent differences. The value entered impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM002B_ASC—UTP Tax - Temporary Differences - Regional	Use this symbol to manually enter the tax impact from regional level Uncertain Tax Positions (UTP) related to temporary differences. The value entered impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM003_ASC—UTP Regional Interest	Use this symbol to manually enter the current period interest accrued related to regional level Uncertain Tax Positions (UTP). The value entered impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM004_ASC—UTP Regional Penalty	Use this symbol to manually enter the current period penalties related to regional level Uncertain Tax Positions (UTP). The value entered impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM005_ASC—UTP Regional Tax re: Interest Paid	Use this symbol to manually enter the current period interest paid related to regional level Uncertain Tax Positions (UTP). The value entered impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM006_ASC—Regional Stock Based Compensation	Use this symbol to input any tax impact from Stock Based Compensation or Share Based Payments. This could represent an additional impact to the current income tax expense or a reduction of the current income tax expense for an amount that should impact OCI.
    RegAddCurrentM007_ASC—Regional Tax Other Adjustments	Use this account to enter any other taxes (e.g. capital taxes, Texas Margin Tax, franchise taxes) that impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.
    RegAddCurrentM001_ASC—Regional RAR - Current Tax Expense	Use this symbol to enter the Revenue Agent’s Report adjustment that impacts the current tax provision and Effective Tax Rate report. The value in this account is entered on an after tax basis.

12. When you are finished, click Submit.

Current Provision - Equity input app (RA0202)

If you are using the Income/Equity/OCI setting, you can use this input app to enter activity during the year that impacts the gross temporary difference but not the regional current provision.

This input app includes Analyze functionality. For more information, see “Analyzing data for automation source information”.

This input app contains the following symbols in the Elements dimension (across):

• ISEQCAT—Income, Equity, or OCI

  Specifies whether the account is classified as Income, Equity, or OCI.

• GrsNPOth_ASC—Non-Provision - Equity

  Use this column to enter activity during the year that increases or decreases the gross temporary difference but does not have an impact on the tax provision (the impact is to an account other than the income statement, such as Goodwill).

• GrsNPOCI_ASC—Non-Provision - OCI

  Use this column to enter activity during the year that increases or decreases the gross temporary difference and impacts other comprehensive income. Values in this column do not impact the tax provision.

To update the regional current provision - equity and other comprehensive income

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Regional Annual.
3. Use the drop-down list or the symbol selector to select the appropriate entity.

   For more information, see “Using the Symbol Selector”.

4. Click RA0202 - Current Provision - Equity.lvapp. The input app opens in the workspace.
5. Enter the equity and OCI temporary difference movements for the appropriate accounts.

   For information on the accounts in this input app, see Current Provision input app (RA0201).

6. When you are finished, click Submit.