Behind the wall: a closer look at taxes

When the Qs started coming out in mid-April, we couldn’t help but notice something very unusual in one of our favorite footnotes: the one on taxes. Because some of the numbers were very surprising, we wound up posting two reports for footnotedPro subscribers: one on Netflix and the other on a bunch of other companies, whose numbers seemed to be greatly helped by the American Taxpayer Relief Act of 2012, which was actually passed on Jan. 3, pushing the impact into the quarter ended March 31.

Given today’s big WSJ story that looks at this very issue, we’ve decided to make both of those reports free to footnoted readers. Somewhat surprisingly, the story, based on an analysis by the WSJ, highlighted different companies than those we focused on.  That’s because the Journal focused on the biggest companies in terms of research and development spending. We honed in on the most unusual tax rates. For example, Netflix, which had one of the oddest effective tax rates that we’ve ever seen in 10 years of reading filings — it was -189% for the quarter — wasn’t even mentioned in the WSJ story.

You can download the Netflix report here.  And you can download our other report, written by Theo Francis of Disclosure Matters by clicking here. We think both are great examples of the type of actionable analysis that we deliver to footnotedPro subscribers on a regular basis.