Final-round drill: tax-deductible versus non-tax-deductible goodwill year-1 EPS differential.

Tax-deductible goodwill creates tax amortization and reduces cash taxes, improving EPS / cash EPS if book accounting does not amortize goodwill. Non-tax-deductible goodwill creates no tax shield. The year-1 differential is the tax amortization deduction times the tax rate, divided by shares, adjusted for whether the model is GAAP EPS or cash EPS.