It seems that the tax credits should be eliminated in adjusted earnings
Both the temporary R&D credit and the NOL carry forwards contribute to a misrepresentation the ongoing earning potential by overstating current period earnings. If the refinancing costs are eliminated then the tax benefits should be eliminated as well. IMO
4 cents non-recurring? That doesn't count, only non-recurring expenses can be ignored. So, they made 27 cents, not 31 cents? Wait until they write-off the tax assets for international - looks like $80 million or more. they HAVE to take that in Year 3 which is this year for Latin America. so, another $1 per share taht will be toast that the analysts didn't "model".
They recognized $3.1 million in retroactive R&D credits in Q1 2013. $3.1 million on 60 million shares is just 0ver $0.06/sh.
... and based on the income statement it looks as if there was another $1.8 million benefit for income taxes that they recognized ... which is another $0.03/sh.
So the R&D credit and the income tax credit that they took amounted to a total of a little over $0.09/sh. Doing both positive and negative one time adjustments would then give $0.22/sh.
Honestly I believe that all of this is really dwarfed by small changes that they can make in their content amortization schedule and for NFLX cash may be a better indicator of the health of the company.