The TaxStream Solution.

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1 The TaxStream Solution. Optimize, integrate, and innovate your tax process year round with TaxStream. Trust the leading provider of tax provision and planning software to save you time by streamlining and automating the flow of information from your general ledger to your tax provision and through to your tax returns. Improve your SOX controls with the system used by 27% of the FORTUNE 500 and over 720 clients worldwide. Satisfy your audit requirements with the only tax provision software licensed internally by all of the Big Four along with 30 regional accounting firms. Recreate your tax process and your corporate structure with TaxStream s flexible tax accounting tool. TaxStream is a process-oriented software. Our goal is to automate and optimize your provision work flow, helping you identify and utilize the most efficient sources of information for all your corporate tax needs. TaxStream serves as a central tax data warehouse, consolidating all domestic, foreign, and local tax information period by period. Data can be entered in local or functional currency on a company by company basis and consolidated in reporting currency. TaxStream tracks changes in currency translation, tax rates and apportionment percentages and posts the effect throughout the system. Centralize and manage data for your forecasts, provisions, statutory filings, returns, and planning scenarios. All the information needed for FAS109, FIN48, IAS12, and other tax authorities is gathered in one location. With the tax provision such a crucial part of the fiscal year, why choose anything but the best in class provision software?

2 Planning. Corporate tax planning is a competitive necessity. A company s tax planning must be in step with its evolution, and can even shape its forward motion. The strategic placement of tax expense as the last line on a company s income statement makes its management critical to a number of stakeholders. Following Sarbanes-Oxley and other financial control requirements, corporate tax planning has come under ever-increasing scrutiny. The TaxStream Solution allows you to manage and document your tax planning effectively and efficiently. FIN48 Use TaxStream to manage risk though comprehensive documentation, tracking, and analysis of your uncertain tax positions. What Ifs Create an unlimited number of what-if or planning scenarios without compromising the integrity of your actual data. Forecast Compare your forecast information sideby-side with your actual information and isolate the differences. Interim Reporting Store and present your data on a monthly, quarterly, and annual basis, rolling together three months into a quarter or four quarters into a year, as needed. Annualize your quarterly data, create year-to-date reports, and layer on discrete items. Trend Analysis Compare the changes in your provision between any two periods and report on how data changes over time. Effective Rate Management Track and manage your effective rate in detail, entity by entity, line item by line item.

3 Provision. The SEC has increasingly turned their focus to the tax provision, making it a crucial part of a company s fiscal year. The provision is the first chronological step in the corporate tax cycle. TaxStream simplifies your tax process by reusing provision data to compute estimates and extension amounts and can be exported to tax compliance software to automate the year-round tax process. The TaxStream solution is currently used to generate the income tax provision, workpapers, and tax footnotes for over 720 clients worldwide, including over 27% of the FORTUNE 500. Our software is flexible and scalable enough to accommodate the provision of any company, regardless of size, industry, or complexity. With TaxStream, you can streamline your tax provision workflow and automatically generate reports specific to your needs. In addition, TaxStream is intuitive and easy to master, so you spend less time learning the software and more time optimizing your tax process.

4 Provision Features. Automation Streamline your tax provision process. Bridge with your general ledger for account level analysis of tax sensitive items and support for financial results. Automatically generate required Journal Entries. Export 1120 Schedule M-3 data to your tax compliance software, then re-import your return into TaxStream once the tax compliance process is finalized to generate your true-up items. Process Controls A large percentage of all material weaknesses discovered during SOX Section 404 audits were linked to the tax provision, according to the SEC. TaxStream calculates a tax provision with proven SOX compliance. Data Collection 55% of recent public companies restatements were due to not having the correct data to begin with. TaxStream helps you design a tax process to optimize your data flow, including bridging to and from general ledgers, consolidation packages, and webbased remote data entry, improving both accuracy and efficiency. Automated Reporting Generate self-reconciling tax provision reports in real time: consolidated, by entity, by jurisdiction, or by sub-consolidated grouping. Calculation Tie Out - All reports and calculations within TaxStream automatically tie out with one another, so you don t have to worry about broken formulas or variance reports. Global Compliance TaxStream provides the flexibility to calculate the tax provision according to a variety of accounting standards, including IFRS (igaap), and many local GAAPs. With TaxStream, you can easily translate between local and reporting GAAP. Industry Specific Filings Use TaxStream to generate the work-papers and reports needed for regulatory filings, such as SSAP10 and FERC. Superior State Functionality Generate reports for any U.S. state, municipality, and non-u.s. subnational jurisdiction. Apportion out state and jurisdiction rates and account for special jurisdiction rules such as combined filings. Apportion taxable income to as many U.S. or foreign jurisdictions as necessary. The results can be reported on a separate, combined or unitary filing basis. The federal benefit of the state for the deferred items can be represented as a component of the either the federal or the state rate. Deferred Balance Tracking Track, manage, and analyze your deferred balances and roll them foward from period to period. Automate your NOL s and Valuation Allowances on a jurisdictional, entity, and filing group basis. Audit Trail Track all changes, numeric and nonnumeric, by user, time, and date, in our full SOX audit trail. Flexibility TaxStream can accommodate your current tax process, regardless of size, industry, or structure. Ease of Use TaxStream is designed to be user friendly, and is easily configurable by the user to reflect specific tax provision needs.

5 Compliance. The concept of compliance lies at the heart of the job of the corporate tax department. The TaxStream solution provides the flexibility to accommodate all your compliance needs, including SOX, IRS, Financial Reporting, and any industry specific statutory filings. TaxStream can be easily configured to fulfill a variety of reporting requirements. FAS109 TaxStream provision was originally built as a FAS 109 solution for the Big Four and multinationals who needed a powerful tool for their complex tax provision needs. It continues to be the industry standard. IAS12 TaxStream s provision is now used by a number of clients who file under IFRS. As global convergence approaches, an increasingly large number of clients are calculating their income tax expense according to IAS 12. TaxStream allows tax provision calculations according to IFRS, US GAAP, and other local GAAPs. ISR, FRS19, CICA 3465, AASB 112 Because TaxStream provides a universal platform to calculate income tax expense, it can be used for a variety of different rules and statutory requirements. FIN48 TaxStream s uncertain tax module documents, manages, and analyzes your uncertain tax positions, and does the necessary tax accounting to satisfy your reporting and planning needs. Financial Reporting Satisfy tax requirements for Financial Reporting. Generate your 10K footnote and manage your deferred assets and liabilities, effective rate, and tax expense, all from one central tax data warehouse. Estimates and Extensions Compute your estimated payment and extension amounts by reusing the provision data and adding other components like minimum and franchise taxes. Return System Integration Easily interface with your return system. Migrate your book-tax differences from the provision to populate the return information. Tax Liability Tracking Track, manage, and document your taxes payable rollforward, by transaction type, entity, and period. FERC, SSAP 10, and regulatory STAT Generate reports for the statutory requirements specific to insurance companies, energy companies, and other industry specific filings. Start with STAT and layer on your GAAP adjustments, or vice versa, depending on how you keep your books. TaxStream industry groups give you access to industry-specific reports and industry peers to discuss your specific needs.

6 True Return and Provision Intergration. An important part of the TaxStream year round tax solution is the software s ability to integrate with a variety of return systems. TaxStream supports true provision and return integration, with out of the box import/export functionality for the major return vendors. True Automation Feed book tax differences from TaxStream to your return software.automate your process by using one of our out of the box import templates for the major return form vendors, or have TaxStream design a custom import file for other systems. Trial Balance Mapping Map TaxStream adjustments to trial balance accounts. Every adjustment inside TaxStream can be mapped up with P&L, Balance Sheet, and Retained Earnings accounts, allowing you to manage your target return software s trial balance. Accommodate Different Charts of Accounts, Entities, and Adjustments TaxStream allows you to translate between the level of detail and nomenclature required for the provision and that required on the return. Account for provision items such as eliminations companies and topside adjustments while feeding over the appropriate chart of accounts, entities, and adjusments to your return. Eliminate Redundant Processes Once you ve done your provision, why go through the effort of recreating your book tax differences in another system? TaxStream s Export to Return functionality saves you time by re-using your book tax differences. State Rates and Apportionment Percentages TaxStream can import state rate and apportionment data from your return system to generate appropiately apportioned state specific provision reports. Estimated Payments Further automate your process by calculating estimated payments in TaxStream and exporting them directly to the vouchers in your return software. Configure items such as payment rounding, jurisdictional payment schedules and minimum annual tax. Save Time on Your Return Start your return with your 1120 Page 1, Schedule M1/M3 already populated with provision data.

7 Audit. Just as important as generating reports for your financial filings is generating reports for your auditors and providing them with the supporting detail and documentation they require. TaxStream understands this, which is why our software has always been audit friendly as well as user friendly. TaxStream s reporting capabilities provide the level of detail and drill down required by your auditors, and are accepted by the audit community as the industry standard for tax provision software. Easily satisfy your auditors with TaxStream, the audit community s gold standard in provision software. Standardization TaxStream provides an industry standard for audit reporting and documentation. By using TaxStream, you ll be generating the same audit reports as more than 27% of the FORTUNE 500. Big 4 Endorsement E&Y, Deloitte, KPMG, and PwC, as well as 25 other CPA firms all license Tax- Stream internally and routinely implement Tax- Stream for their clients. Chances are, your audit firm is already familiar with TaxStream s reports. Document Attachment Attach any file type (.pdf,.doc,.xls, etc.) to support the position taken for each line item. Report Flexibility Configure reports and present numbers such as deferred balances, federal benefit of state, and CTA with the various levels of detail needed by a variety of stakeholders, such as auditors, the SEC, or upper management. True Audit Trail TaxStream tracks every change made inside the software, numeric and nonnumeric, by date, time, and user. Internal Audit Satisfy all your internal audit requirements with TaxStream s flexible reporting. Workflow Manage and automate your workflow with multi-level user controls, multi-level sign off, and data lockdown.

8 Consolidation. Whether you are dealing with complex, multinational tax structures or simply a few different jurisdictions, tax data consolidation is critical. TaxStream functions as a consolidating data warehouse, gathering disparate tax rates and tax data seamlessly over the web from remote locations. It then stores provision, return, and forecast information, creating a data flow from your general ledger or consolidation package through to your return, and rolling forward your balances to future tax periods. Single Tax Data Warehouse Store all your tax information in one central location. Set up direct feeds to TaxStream from your general ledger, consolidation package, return software, fixed asset module, or transfer pricing software. Remote Data Collection Use itaxstream to gather remote and foreign information, step-bystep, over the web, and feed it directly into the corporate data warehouse, making adjustments in real time. Use the same system to gather trueup data locally, and roll your tax data forward from period to period. Detail from the Bottom up Gather your information at the lowest level of complexity available and roll it together in real time, allowing you to go from a very low to a very high level in just a few clicks. Oracle Hyperion Through our partnership with Oracle Hyperion, import your consolidated financials, with the account-level detail you need, directly into TaxStream. Then automatically book back your journal entries with the Oracle Hyperion Tax Adaptor, built exclusively for TaxStream.

9 FAS 123R Accounting for Share Based Stock Options under FAS 123R is easier said than done. The tax computations are especially challenging because they require each exercise to be tracked separately, overwhelming most spreadsheet solutions. The answer lies in a database product that provides control over this volume of data. FAS 123R impacts many aspects of the tax provision and new requirements such as the APIC pool. TaxStream allows you to track all the components of FAS 123R from the amortized book compensation expense, the appropriate tax deductions for share based exercises, the tax benefits and detriments impact the deferred tax assets, the possible impact on the effective tax rate and the rollforward of the APIC pool. APIC Pool Rollforward All the components of the APIC pool can be viewed in TaxStream on a pretax, federal or state basis. Like all TaxStream reports, the data is shown at the unit, sub-consolidated and consolidated levels to clearly understand your company s beginning and ending balances and the activity. The APIC pool automatically rolls over from period to period and clearly displays the impact of tax benefits and tax detriments, intercompany reclasses and other adjustments on the APIC pool. Share-based Compensation Expense and Deferred Tax Assets Automate the reversal of the book amortization of compensation expense from your general ledger via the bridge and TaxStream will automatically build the deferred tax assets for post-adoption FAS 123R grants. Tax Deduction for Share-based Exercises Compute the tax deduction for exercised options to account for the impact on the provision and offset the deferred tax asset from the addback of prior compensation expense. TaxStream will store all transactions and exercises to substantiate the tax deduction. Tax Benefits and Tax Detriments TaxStream will compute the tax benefits and detriments related to each exercise, updating the APIC pool and the deferred tax accounts. TaxStream allows for pre and post-adoption transactions to ensure that allocation issues are properly reflected in the tax accounts.