Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Thom Albrecht – Stephens, Inc.
Thom Albrecht – Stephens, Inc.
Can you give the pre-tax amount of the curtailment gain, you obviously mentioned the earnings per share amount but given the low tax rate I want to make sure I’ve got the right dollar amount.
William Zollars
Pre-tax amount is 63.
Thom Albrecht – Stephens, Inc.
On the property and disposals that’s a net figure 15.46, what was the gross amount on the sale of all that? Are there some equipment gains or losses in that or is that strictly property disposals?
William Zollars
Its almost all property.
Thom Albrecht – Stephens, Inc.
So you borrowed $250 million yesterday I think on your credit agreement, I’m a little confused on what you have available versus what you’ve done, in your 10-Q filing from August you talked about being able to potentially borrow over $600 million but it was really probably closer to $300 million due to some of the constraints with your covenants and so that $300 million what did that relate to? Was that just the credit agreement separate from the revolver?
William Zollars
Yes, Paul Liljegren can walk you through the math there.
Paul Liljegren
As we ended the quarter we actually had $700 million of liquidity available within our facilities. As you recall we used $325 million of that to redeem the Roadway notes and USF notes, that left us roughly $400 million available of which we drew $250 million yesterday.
Thom Albrecht – Stephens, Inc.
Back to the 22% tax rate, the primary reason it was so low was the propane tax credits or, the broadcast was real fuzzy for a little while so it was difficult to hear everything.
Sheila Taylor
It primarily is because of the lower income and in the income allocation among the operating companies and their respective tax rates. But because we didn’t have enough PVT the propane credit starts to impact that rate. The credits are regardless of the PVT.
Thom Albrecht – Stephens, Inc.
If your core profitability is going to continue to be weak at least in the fourth quarter why wouldn’t you have another very low tax rate?
Sheila Taylor
Why don’t you call me afterwards.
William Zollars
We kind of normalized the tax rate really for the year so we don’t have these wild swings and so the accounting rules allow us to smooth that a little bit so we don’t have these wild gyrations on the tax rate and that’s really what we’re trying to do, try to normalize the tax rate.
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