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URL:  https://boards.fool.com/taxes-and-extraordinary-items-ignore-earlier-27225401.aspx

Subject:  Taxes and Extraordinary Items (Ignore earlier) Date:  11/26/2008  5:11 AM
Author:  FizzDot Number:  1603 of 1817

I am wondering what to do about taxes in the case of extraordinary items. KCI had a lawsuit resolved in 2002, they were awarded 250,000 - 175,000 in 2002, and 75,000 in 2003.

There have been two of these since 1999, so it seems very much like an extraordinary item. If I exclude this $175,000, I am not sure how to handle the taxes, this gives a deferred tax liability of 66,838.

There is a non-gaap income statement with the 2003 report, many of the numbers differ, but they add up to the same amount of Total Revnue, gross profit, etc.

They subtracted the deferred tax liability from the "Income Taxes" line of the Income statement. I didn't realize that the Income Taxes line of the Income statement included the Deferred taxes from the Balance sheet.

But is thie the right thing to do? I set current deferred income taxes to zero, and subtract this amount from the "Income Taxes" line of the income statement?

I hope this is clear.
Dot
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