Not much effect, it is just a mismatch with accounting & tax rules. Essentially, for accounting your make provisions for the expense in the year that they are incurred/committed but for tax purposes you don’t get to claim the deduction until the expense is actually paid. It can be a small cash flow benefit with the deferred tax increase as we have effectively prepaid $10M in tax, the problem with that is the year we get the cash flow benefit of the effective tax prepayment is nearly always the year we take the cash flow hit of actually paying the expenses we have made provision for. I would describe it as minor beancounting issues which have minimal impact on the company either operationally or financially
MYR Price at posting:
64.0¢ Sentiment: Hold Disclosure: Held
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