Tax savings a company realizes in conjunction with its interest cost. The input value for this account, the marginal tax rate, is the tax rate used for the interest tax shield. The output value is the actual interest tax shield.
It is calculated as follows:
(v3220.00) * (v1420.00)
(v3220.00) Input marginal tax rate into Interest Tax Shield
(v1420.00) Total Interest Expense
Note that this Total Interest Expense (v1420) is the net of Interest Capitalized (v1410). This does not mean that no tax benefits exist associated with Interest Capitalized. Rather, companies that capitalize a portion of their total interest expense defer the tax benefit to future periods, when their taxable income is reduced by greater depreciation charges.