Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from John Bridges – J.P. Morgan.
John Bridges – J.P. Morgan
The revenue number you’ve given us, just if you, income statement numbers, the revenue number you’ve given us, is that before or after the hedges, the $136 million?
Jeffrey Clevenger
The revenue number is before the hedges, the hedges come out down below.
John Bridges – J.P. Morgan
Where do they come out? The $76, that presumably is the mark to market of the main book.
Bob Vogels
On the income statement we only have the mark to market. During the period we settled $52 million worth of hedges. That shows up as a cash flow item on the cash flow statement. So on the P&L itself, the mark to market was $76 million, shows up as a reduction of earnings.
John Bridges – J.P. Morgan
So is that related, so where is the impact of the hedge, the hedge sales for this current period?
Bob Vogels
Well as you know we mark to market every period our hedge liabilities. So to a certain extent, we’ve already recognized losses on the hedges to date with only small adjustments period to period now as the price moves up and down. So we report our revenue at market prices and any further adjustments to the hedge book up or down based on market prices comes out in a line item called gain on commodity derivatives, gain-loss.
John Bridges – J.P. Morgan
In the cash flow?
Bob Vogels
On the face of the income statement, the mark to market non-cash piece, and then in the cash flow statement you see the cash impact of settlement.
John Bridges – J.P. Morgan
Yes, I don’t have a cash flow statement. You didn’t issue the cash flow statement.
Bob Vogels
We filed our 10-Q today and have the full financial statements in there.
John Bridges – J.P. Morgan
The income taxes you report, what’s in there?
Bob Vogels
For the period, as we’ve described in our financial reports, the hedge liability, the hedges are held in a Cayman entity that is not subject to tax. So if we look at simply the Bolivian income, we had positive income and positive taxable income, so we paid a small amount of tax, provisions, a small amount of tax based on that, roughly $9 million and another $1 million of withholding taxes we’ve got on some intercompany interest income.
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