Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Greg Halter - Great Lakes Review.
Greg Halter - Great Lakes Review
I know you filed the form for the spin relative to Batesville, and we certainly appreciate the detailed information there. Trying to get at the same data on Hill-Rom on a pro forma basis, will there be any sort of information provided in that regard?
Greg Miller
In regard to Hill-Rom, typically the process is we file the Form 10 for the ?spinnee? and then the ?spinnor? will file an 8-K within four days of the actual distribution of dividends. That being said, I think that the information in the Form 10, you could pretty much use that and the consolidated results that you have to model out where Hill-Rom is at. I think it has enough pieces to be able to figure out Hill-Rom.
Greg Halter - Great Lakes Review
I certainly attempted that but there's a lot of investment income and things going back and forth.
The second question I had is on the antitrust litigation, who will be responsible for paying those costs going forward?
Peter Soderberg
We have our general counsel, Patrick De Maynadier here. Patrick, I'll let you respond to that.
Patrick De Maynadier
The costs of the litigation going forward would be paid by Batesville Casket Company.
Greg Miller
It will be paid by Hillenbrand as long as we're together and then after separation, Batesville Casket Company.
Operator
We'll take our next question from Adam Cahn - Citadel.
Adam Cahn - Citadel Investment Group
It seems that if we take out the costs that you've just identified on the operating expense line as relating to the spin of the Yorktowne failed acquisition on integration, we have around 150 point increase as a percent of revenue and op expense at the midpoint of the guidance of 2008 versus 2007. Curious what the dynamics are around that? Did we not increase R&D this year and what are the expenses that increased op expense in 2008 versus 2007?
Peter Soderberg
Let me take Hill-Rom and I'll let Ken respond to Batesville Casket. In Hill-Rom, we showed you a chart in the presentation of R&D and you'll see the infection point was in the second quarter of this past fiscal year. So we are maintaining that in fact we will increase year-over-year R&D spend and that's just because it takes a while to fill the pipeline.
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