2. (Figures in Cents Per Share) Carry-Over from the Current Quarter Allocated to Quarter 1
Previous Quarter
Maintenance 2 4 6
• First Quarter is the heaviest maintenance quarter
• Next three quarters’ maintenance to average out to 2 cents/share for each quarter
• Charging 6 cents/share is in accordance with our expense-as-incurred policy
(Figures in Cents Per Share) Reserve(Benefits) to the Current Quarter Allocated to Quarter 1
Next Quarter
EIC Tax Deferrals 1 3 2
• First Quarter is Southwest Asian Subsidiary’s peak export period
• EIC Tax Savings for the entire year is 8 cents
• We should be spreading our EIC Tax Savings equally over the whole year
(Figures in Cents Per Share) Carry-Over from the Current Quarter Allocated to Quarter 1
Previous Quarter
Relocation Costs 3 0 3
• Carrying -Over was done to avoid hurting previous quarter earnings
3. (Figures in Cents Per Share) Brought Forward from Current Quarter Allocated to Quarter 1
the 2nd Quarter
Advertising Program 2 0 2
• Extra amount was spent on TV/Paper/Radio Advertising
• Benefits of this additional amount to come in the 2 nd Quarter
• Allocation done according to our policy of expensing Advertising Costs as they are incurred
(Figures in Cents Per Share) Brought Forward from Current Quarter Allocated to Quarter 1
the 2rd Quarter
Special Fall Campaign 2 0 2
• Benefits of this campaign will be reaped in the 3 rd Quarter
• Campaign costs have been allocated equally in the first three quarters
• Allocated prior to incurring – this runs counter to existing reporting policy
(Figures in Cents Per Share) Reserve (Benefit) on Current Quarter Benefit allocated to
The Books Quarter 1
Restructuring 2 0 0
• Restructuring was completed last year
• Amount has not yet been allocated and has intentionally been kept for bad times
4. (Figures in Cents Per Share) Original Savings using Savings using
Figures IFRS US GAAP
Maintenance Costs 6 3 3
“Costs incurred unevenly can “`Each interim period to be
Rationale be deferred” charged a portion”
EIC Tax Deferrals 2 1 1
“Revenues must match costs” “Discounts charged shall be based
Rationale on the sales”
Relocation Costs 3 0 2.25
“Each interim period to be charged
Rationale - for an appropriate portion”
Special Fall Campaign 2 2 4
“Revenues must match costs” Advertising Costs may be deferred
Rationale beyond the interim period
Restructuring 0 1 0
Utilizing the Reserve Account -
Rationale
TOTAL SAVINGS 7 10.25
