cost of sales adjustment

cost of sales adjustment

the difference between the COST OF SALES calculated on an HISTORIC COST and on a current cost or replacement cost basis. See INFLATION ACCOUNTING.
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Adjusted EBITDA is defined as net income (loss) for the relevant period adjusted, to the extent such items occurred in the periods presented, for the following: (a) interest expense (income), (b) income tax expense (benefit), (c) depreciation, amortization and impairment, (d) acquisition-related expenses, (e) goodwill and trade name impairment, restructuring and other expenses, (f) impairment of investments, (g) realized gain or loss on investments, (h) loss on early retirement of debt, (i) sale of non-core patents, (j) non-cash stock-based compensation expense, (k) acquisition-related severance and (l) sales and cost of sales adjustments for acquisitions that were recorded as a result of the accounting treatment for such acquisitions.
3, 2004, the company estimated aggregate pretax charges of approximately $11 million in these periods, predominantly to correct inventory and related balances that resulted in cost of sales adjustments.