Originally Posted by
CHQ Pilot
RAH broke down the charges between fixed fee and branded on what I read. The cost does involve integration charges, so it is hard to know exactly what the cost was associated with the return of the aircraft.
Fixed Fee took a charge of 2.0M
Branded Took a charge of 11.1M
The number RAH gave for GAAP loss on the branded ops was 70.5M. I would have to look at previous reportings a little more closely, but RAH may have claimed the expense of integration and the withdrawl of aircraft on a previous earnings. In loose terms, since those deals never reached a depreciation of what they expected, they must now claim the difference as income. It works a little better for this quarter (overall less net loss), but the company cannot double claim the expense to lessen the tax burden.
That makes sense
Overall, no need to panic. 3rd and 4th qtrs will be the telling ones.