Common use of Working Capital Statement Clause in Contracts

Working Capital Statement. Within sixty (60) days after the Closing Date, Seller will prepare and deliver to Buyer a statement of working capital for the Companies (the "Working Capital Statement") showing the Companies' Combined Net Working Capital as of the close of business on the Closing Date. "Companies' Combined Net Working Capital" means current assets minus current liabilities of the Companies on a combined basis determined after giving effect to the transactions to be consummated prior to or at the Closing ((i) eliminating the working capital effect of any Excluded Assets and Excluded Liabilities to be distributed out of the Companies prior to the Closing and the current portion of any liability for which the Companies shall not be responsible, and (ii) including the working capital effect of any Included Assets and Assumed Liabilities to be transferred to the Companies prior to the Closing)), with current assets and current liabilities accounts calculated in accordance with generally accepted accounting principles ("GAAP"), and on a basis consistent with the past accounting practices of the Companies, except that (x) deferred overburden shall be excluded from current assets and (y) the accrued reclamation liabilities shall remain as stated on the July 31, 1995 Pro Forma Balance Sheet attached as Schedule 5A(b). Notwithstanding the above, for purposes of this Agreement, excluded from the Companies Combined Net Working Capital shall be the following items: (1) except for the effect of the Owed Contribution as described in Section 1(h)(ii), TMI, (2) the Equipment Payment, as defined in Section 3(c), (3) any state and federal income tax liability, and (4) the Consumers Power Liability and the Pittston Liability, both as defined in Section 3(c)(iv)(B).