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Old 01-30-2010 | 09:04 AM
  #27433  
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Carl Spackler
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Originally Posted by stix'nstrings
Don't overlook this: the net effect of that 5% is significantly lower to a company like Delta on an after tax basis. The bottom line number in this case could be closer to 2-3%. Depending on the corporate marginal tax rate (federal, state, county, etc), the actual cost to the company could be up to 60% less than the upfront number when taken as an expense.
Except that it is not even 5% of revenue, it is much lower. Now take into account the items you state, and it is far lower than 2-3%.

Carl