NOTES TO FINANCIAL STATEMENTS
PAGE 11 § D ODGE & C OX I NTERNATIONAL S TOCK F UND
have been provided for in accordance with the Fund’s
understanding of the applicable country’s tax rules and
rates. Non-cash dividends included in dividend income, if
any, are recorded at the fair market value of the securities
received. Distributions received in excess of income are
recorded as a reduction of cost of investments and/or
realized gain. Interest income is recorded on the accrual
Expenses are recorded on the accrual basis. Most
expenses of the Trust can be directly attributed to a
specific series. Expenses which cannot be directly
attributed are allocated among the Funds in the Trust.
Distributions to shareholders are recorded on the ex-
Repurchase agreements The Fund may enter into
repurchase agreements secured by U.S. government and
agency securities which involve the purchase of securities
from a counterparty with a simultaneous commitment to
resell the securities at an agreed-upon date and price. It is
the Fund’s policy that its custodian take possession of the
underlying collateral securities, the fair value of which
exceeds the principal amount of the repurchase transaction,
including accrued interest, at all times. In the event of
default by the counterparty, the Fund has the contractual
right to liquidate the securities and to apply the proceeds in
satisfaction of the obligation.
Foreign currency The Fund may use foreign currency
contracts to hedge portfolio positions and facilitate
security transactions in foreign currency-denominated
securities. Losses from these transactions may arise from
unfavorable changes in currency values or if the
counterparties do not perform under the contracts’ terms.
Foreign currency-denominated assets (including
investment securities) and liabilities are translated into U.S.
dollars each business day at the prevailing exchange rate.
Purchases and sales of securities, income receipts, and