PIMCO Floating Rate Income/PIMCO Floating Rate Strategy Funds
Notes to Financial Statements
July 31, 2008
4. Income Tax Information (continued)
For the year ended July 31, 2008, permanent “book-tax” differences were primarily attributable to the differing
treatment of swap payments, foreign currency transactions, amendment fees and paydowns. These adjustments
were to increase dividends in excess of net investment income by $1,690,557 and decrease accumulated net
realized losses by $1,690,557.
Net investment income and net realized gains differ for financial statement and tax purposes primarily due to the
treatment of amounts received under swap agreements. For the year ended July 31, 2008, Floating Rate Strategy
received $20,743,286 from swap agreements which are treated as net realized gain for financial statement
purposes and as net income for federal tax purposes.
At July 31, 2008, Floating Rate Strategy had a capital loss carryforward of $23,626,862 (of which $11,931,485
will expire in 2015 and $11,695,377 will expire in 2016), available as a reduction, to the extent provided in the
regulations, of any future net realized gains. To the extent that these losses are used to offset future realized capital
gains, such gains will not distributed.
The cost of investments for federal income tax purposes and gross unrealized appreciation and gross unrealized
depreciation of investments at July 31, 2008 were:
For the Funds, the difference between book and tax appreciation/depreciation is primarily attributable to wash
sales, passive foreign investment companies and materially modified securities due to amendments.
5. Auction Preferred Shares
Floating Rate Income has issued 2,800 shares of Preferred Shares Series T, 2,800 shares of Preferred Shares
Series W, 2,800 shares of Preferred Shares Series TH, each with a net asset and liquidation value of $25,000
per share plus any accumulated, unpaid dividends.
Floating Rate Strategy has issued 3,8