Does foreign exchange gain/loss typically get removed from adjusted EBITDA? Target has divisions internationally and are headquartered in the US. Would argue it would be recurring but not sure what typical treatment is. It’s fairly material.

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“Standard” is leave realized transactional (cross currency actual transactions) in EBITDA but take out translational fx.

My position is generally take it all out, including realized. It’s non-core, outside of the control of the business (unless they have sophisticated Rx hedging). If rates move significantly and generate a bunch of gains, it’s hard to argue that’s good EBITDA that should be expected to continue.

You should definitely be doing constant currency analysis in this scenario.

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SM1, could you elaborate on a constant currency analysis entails (high level).

This is likely contrary to what you’re suggesting, but say the target for the past several years has historically used a constant fx rate, let’s say it’s .80 to USD. Would it be wrong to adjust the historical financials based on the actual monthly fx rate? Again, this sounds contrary to what a constant currency analysis is… but trying to understand why or why not we wouldn’t convert to actuals.

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