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