Originally Posted by
forgot to bid
Basically, it seems, the NC was given a 2% cost increase allowance. It's a number that RA mentioned the other day that 2% is the max they seek to hold down cost increases.
So, how do you make 2% into 8% up front plus 0/3/3? You pay for it in other places.
Yup, 2% is the magic number that RA always mentions to the Wall Street guys at the Earnings Calls. If that is an accurate number or not is debatable, but that's always the number he uses.
That and he'll also say any increase somewhere was offset by efficiencies elsewhere, basically we've been signing 'Cost Neutral' agreements, early, and the stock pop benefits the guys who get 90% of their pay in stock options.