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Subject:  More Defensive Income Statement Questions Date:  11/5/2008  5:44 AM
Author:  FizzDot Number:  1574 of 1817

1.) KCI records Foreign Currency Losses and Gains. Do I just include these in expenses or do I need to re-calculate taxes? Right now, I determine the effective tax rate (taxes/total revenue), add or subtract the Foreign Currency loss/gain to net revenue, and recalculate the income taxes.

I think this is a non-cash charge, so I am not really sure what to do.

2.) Do I include the current installment of LT Debt and Current installment of Capital Lease obligations in the calculation of working capital investment? If not, can someone give me some idea why not?

3.) What about unusual charges or revenue, like Initial public offering expenses, recapitalization expenses, or Litigation settlements?

The litigation is not that unusual, there have been three cases, 2002, 2003 which resulted in awards, and 2005 which resulted in a charge.

Thanks to anyone who can advise me on this.

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