I does get counted against profits but is don't think it affects our profit sharing. When you mark something to market you are just updating the current value of the positions and they get counted against your balance sheet but you haven't actually realized the profit/loss yet.

After Enron and World com where they were hiding all their losses in shell companies, the Government started requiring mark-to-market accounting so all profits and losses were on the table and accounted for so a true value of a company could be assessed by potential investors. When they announce earnings there will be a profit or loss per share and then there will be a p&l per share excluding special items and one time charges. The second number usually removes MTM losses.

Our profit sharing is based on EBITDA profits (Earnings Before Interest payments, Taxes, and Depreciated Assets.) MTM fuel hedge losses are a depreciated asset.

I'm no accountant but that is my understanding.