Here we're going to model out the Deferred tax liability. If we remember that deferred tax liability has come about because of step-ups if my PPD has been stepped up and we were to sell it at some point in the future. We'd have to pay a tax bill and it's that tax here that we're planning for but as that step up gradually loses value as it's depreciated. The Deferred tax liability will also be depreciated and gradually unwind away.

So let's go find that we have that on the opening balance sheets.

The Deferred tax was 5,325.6 that came about because of this deal. So that's our starting point.

My beginning balance links down to losses ending, but now I need to calculate the unwinding now remember it's as the pp Step Up is depreciated. So the Deferred tax liability gradually loses value as well.

We've got that PP Step Up depreciation all ready up here in row 34 we can see it's losing 95.1 per year.

I need to multiply that by the marginal tax rate. I can find that on the assumptions tab.

And it's in row 40 that 35% So I can now see that beginning balance starting to be Unwound here. It's been Unwound by 33.3 if I go to the ending amounts and some of the two items above.

I can now find a new ending balance.

Now you might realize that this is not being unwounded by very much. It's going to take years and years and years for this defer tax liability to be Unwound. So what's actually happening? Well, we need to go and see where this defer tax liability has come from it initially came from here the opening balance sheets, but before that it came from the Assumption tab in the Goodwill calculation, there it is.

Now, how is it being calculated? It's been calculated on two things.

Firstly yes, it's been calculated on that pp&e step up. That's what we expected to defer tax. Liability is be modeled on that.

But the second thing it's been calculated on is the brand value that was unrecognized before the deal. It's now being recognized.

But that brand value will not lose value. We're not going to depreciate all amortize it.

So as the brand value does not lose any value.

That means the Deferred tax on that brand value will also not lose any value.

So that's a fair tax liability on the brand value will just stay there and be a permanent deferred tax liability.