Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Doug Lane from Jefferies & Company; please go ahead with your question.
Douglas Lane – Jefferies & Company, Inc.
Yes, hi. Good morning, everybody.
John Meier
Morning, Doug.
Douglas Lane – Jefferies & Company, Inc.
Follow-up with some of the mundane items here, trying to get my arms around the one-time items. You mentioned $4.3 million in other income from a gain on land sale in the Netherlands. That’s a pretax number. What kind of tax rate should we put on that?
Gregory Geswein
Well that’s a good question, Doug. I think going forward our effective tax rate as we’ve talked about will probably be around 30%.
Douglas Lane – Jefferies & Company, Inc.
30%?
Gregory Geswein
Right.
Douglas Lane – Jefferies & Company, Inc.
Then you mentioned later that you had $5.5 million in the year on gains on land sales. Where was the other $1.3 million?
Kenneth Boerger
Actually it’s $1.1, Doug. It was at Syracuse in the first quarter of 2007.
Douglas Lane – Jefferies & Company, Inc.
Syracuse in the 1Q.
Kenneth Boerger
Right.
Douglas Lane – Jefferies & Company, Inc.
Then lastly, the $1.8 million in litigation gain, is that a reduction of SG&A?
Gregory Geswein
No, that was up in the cost of goods sold.
Douglas Lane – Jefferies & Company, Inc.
In cost of goods sold.
Gregory Geswein
Right.
Douglas Lane – Jefferies & Company, Inc.
Just briefly, what does that relate to?
John Meier
It related to a problem we had with an outside vendor who had sold us some lubricating oil that we did not believe met the spec which caused some of our machines in prior years to grind to a halt. We had downtime in our factories because of the improper lubricant and in the end we settled with the insurance companies principally that were involved and of the bad guys so to speak.
Douglas Lane – Jefferies & Company, Inc.
Gotcha. So that was just in the fourth quarter. There wasn’t any other litigation gains in the year was there?
Gregory Geswein
No there was not.
Douglas Lane – Jefferies & Company, Inc.
Then lastly, of the interest expense of $65.9 million, how much of that was cash interest?
Gregory Geswein
All but $18.2 million.
Douglas Lane – Jefferies & Company, Inc.
All but the $18.2, okay.
Gregory Geswein
Yeah, $47.7.
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