Question-and-Answer Session
Operator
This concludes the listen only session. Those individuals in a listen only mode are welcome to remain on the line for the question and answer period. For analysts to ask question, please press star one. Your first question comes from the line of James Bank with Sidoti & Company, please proceed.
James Bank – Sidoti & Company
Hi, good afternoon. Tom if you could just help me understand the change in your net other expense at the end of year here, maybe it was the quarter, an increase in expected losses within the securitized finance contract portfolio, what actually was that loss?
Tom Rettler
In the quarter? $2.6 million I believe was the quarter impact.
James Bank – Sidoti & Company
Yes.
Tom Rettler
In terms, that was an increase in our expected losses of the finance contracts that we sell. So within the valuation of our retained interested we needed to come up with what we believe the losses might be.
James Bank – Sidoti & Company
Okay so going forward?
Tom Rettler
It’s essentially bad debt.
James Bank – Sidoti & Company
Okay, I understand. And if you could tell me, in the $0.95 to a $1.25, bottom line guidance, how much bad debt is baked in, both on the wholesale and retail level?
Tom Rettler
Comparable to 2006 levels. We anticipate that we’ll be back to those levels, it’s not incremental over 2007.
James Bank – Sidoti & Company
Okay, do you want me to look back at the 10K or do you actually have those in front of you?
Tom Rettler
I can get those for you but I don’t have them right in front of me.
James Bank – Sidoti & Company
Okay then I can do it just as easy. In your total current liability, what’s the dollar amount outstanding on the commercial paper you have?
Tom Rettler
$50 million at the end of the year.
James Bank – Sidoti & Company
Okay. Now aren’t one of those going to be coming due this quarter?
Tom Rettler
No, the commercial paper rolls constantly, it’s of a very short term maturity, I don’t think we go out beyond 90 days with any of our maturities, so that rolls continually.
James Bank – Sidoti & Company
So as one, so as you’re paying it off you’re going to continue to borrow on it?
Tom Rettler
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