Credit Suisse Investment Banking Pitch Book
CREDIT SUISSE DOES NOT PROVIDE ANY TAX ADVICE | MATERIALS ARE PRELIMINARY AND SUBJECT TO FURTHER CHANGE AND DEVELOPMENTS (WHICH MAY BE MATERIAL)
Hypothetical impact to Osprey tax rate and net deferred tax asset
Illustrative assumptions per Osprey management as of November 2017
Hypothetical Osprey marginal corporate tax rate summary
Current Osprey marginal corporate tax rate
Corporate federal tax rate
Corporate state and local tax rate (incl. deductions)
Current marginal corporate tax rate
Hypothetical Osprey marginal corporate tax rate
Proposed corporate federal tax rate
Corporate state and local tax rate (no deductibility)
Hypothetical marginal corporate tax rate
Hypothetical deferred tax asset write-off summary
As of 9/30/2017
($ in millions)
Gross deferred tax asset
Gross deferred tax liability
Net deferred tax asset
At current
rate (35%)
$36
4
$32
2
35%
6%
41%
At proposed Hypothetical
rate (20%) write-off
$24
$21
20%
10%
30%
($11)
Selected commentary
■ Proposed corporate federal tax rate reduction from 35% to 20%
■ Proposed legislation would eliminate deductibility of state and local
taxes
- Implies -30% hypothetical marginal corporate tax rate including
full burden of corporate state and local taxes (-10%), per
Osprey management
Selected commentary
Based on preliminary review by Osprey management of net
deferred tax asset balance as of 9/30/17
■ Per Osprey management, proposed corporate federal tax rate
reduction from 35% to 20% would result in a reduction of
Osprey's net deferred tax asset book value, with reduction in book
value hypothetically assumed to be written off in 2018
Source: Osprey management and U.S. House of Representatives Committee on Ways and Means "Tax Cuts and Jobs Act" released on 11/2/17.
Note: Credit Suisse does not provide any tax advice.
Confidential
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