Specified Working Capital shall have the meaning set forth in Schedule 2.16.
Specified Working Capital means an amount equal to the difference between (i) the current assets of the District with respect to the operation of the Hospital Business, but limited to the following categories: net patient receivables, cost report settlements, other receivables, inventory, prepaid insurance, deposits and other prepaid expenses, and (ii) the current liabilities of the District with respect to the operation of the Hospital Business, but limited to the following categories: accounts payable, accrued liabilities, accrued payroll, accrued retirement (excluding any amounts related to the Pension Plan), and other current Liabilities (excluding any amounts related to notes payable and the Supplemental Executive Retirement Plan), in each case, as such terms are utilized in the Unaudited Financial Statements. To the extent that the Parties reasonably agree that any amounts included in deposits, above will be paid to the District and not to Newco, such amounts will be excluded from the Specified Working Capital calculation. For the avoidance of doubt, Specified Working Capital will not include cash and cash equivalents, investments, deferred compensation, other current liabilities relating to notes payable and the Supplemental Executive Retirement Plan, accrued retirement related to the Pension Plan, accrued health insurance, reserve for malpractice, current portion – bonds payable, in each case, as such terms are utilized in the Unaudited Financial Statements.
Examples of Specified Working Capital in a sentence
Such Balance Sheet and the calculations of Specified Working Capital thereon are referred to as the “Estimated Balance Sheet” and the “Estimated Working Capital,” respectively.
Such Balance Sheet or calculation of Specified Working Capital shall not bind Newco or LCMC with respect to the final determination of the Final Balance Sheet or the Final Adjustment Schedules (or any components thereof).