Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Michelle Applebaum with Michelle Applebaum Research.
Michelle Applebaum - Michelle Applebaum Research
Yes, good enough for me. Hi.
Murray McClean
Hi. Good morning Michelle.
Michelle Applebaum - Michelle Applebaum Research
Good morning. I want to make a joke, but I can't think of one. I want to go through the accounting first. You have unusual items of about $103 million and that's all pre-tax, right?
William Larson
Yes.
Michelle Applebaum - Michelle Applebaum Research
And your average tax rate was 25%. Do I use that to add this back, or do I use your marginal tax rate?
William Larson
I would use the marginal rate, Michelle at 35. The tax rate that is shown here is kind of the fallacy of small numbers, when you get plus or minus near zero your permanent differences and things like state.
Michelle Applebaum - Michelle Applebaum Research
Oh, yeah, yeah, yeah, those are not. Okay, those are fixed, they are not variable. So it's going to affect your average rate massively. Okay, so that should be added back at 35% and then your LIFO credit of $80 million -- 80.7 million, how much of that was layers?
William Larson
Very little 12 million pretax.
Michelle Applebaum - Michelle Applebaum Research
12 million pretax?
William Larson
Yes, about eight after.
Michelle Applebaum - Michelle Applebaum Research
Okay. So if you reported a loss, so if I take the 103 and add it back at the 35% tax rate and then take out the 8 million, I would guess about $0.20 a share process clean, is that a good number do you think?
William Larson
You know the SEC has real problem with me telling you that earnings should be anything other than what they were. So I'm going to have to defer the comment, but you can conclude anyway you want.
Michelle Applebaum - Michelle Applebaum Research
Let me ask you a question, you're disclosing these unusual items, but you're not mentioning the tax rate associated with them and then you're disclosing the 80 million in LIFO credit, but you're not mentioning the layer of liquidation, which even at $0.08 is meaningful when you're earning $0.10 or $0.20. Why can't you put that in your release, is that not allowed?
William Larson
No, no, it's very allowed and if we thought it was material it would have to be in the 10-Q, but we don't think it's large enough.
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