Selling, General and Administrative
The Company's SG&A expenses totaled $221 million during the second quarter of 2008, compared to $188 million in the prior year period. SG&A for the first six months of 2008 totaled $415 million, compared to $367 million for the prior year period. The increases in SG&A were primarily related to increases in sales and marketing costs related to the promotion of the Company's proprietary products in the U.S. and the impact of foreign currency exchange.
Interest Expense/Income and Other (Expense) Income
During the second quarter of 2008, the Company recorded $27 million of interest expense, almost all of which is related to interest on the debt incurred in connection with the Company's acquisition of PLIVA in October 2006. In addition, during the second quarter of 2008, the Company recorded interest income of $7 million and other income of less than $1 million.
The Company's tax rate for the second quarter of 2008 was 46.1%, compared to 35.4% for the prior year period. The rate in 2008 was negatively impacted by a change of the mix of income in certain U.S. and foreign taxing jurisdictions and the expiration of the U.S. research and development tax credit at December 31, 2007, offset partially by a reduction of the tax rate in Germany. In 2007, the rate was positively impacted by the reinstatement of the Croatian research and development incentive and benefits resulting from positive audit settlements in various tax jurisdictions.
The effective tax rate for adjusted earnings for the second quarter of 2008 was 38.0%.
The Company's cash, cash equivalents and short-term marketable securities totaled approximately $547 million at June 30, 2008. In addition, the Company had $21 million of long-term marketable securities at June 30, 2008.
Earnings before interest, taxes, depreciation and a
|SOURCE Barr Pharmaceuticals, Inc.|
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