OD, "the payment of less tax is basically what you are claiming", perhaps yes, with respect to the P&L, i.e. "financial statements" (to use DD term), not the tax books.
Somehow, this reversal has benefitted the operating goals, apparently by boosting the P&L, as indicated by the company, just enough to trigger the over 101% goal achievement and an additional $3.4M LTCP payment.
On the P&L, I suspect the line item affected is taxes, so that the net income, after taxes, on the P&L (not tax books) is what and how the P&L was boosted, to the personal benefit of management, via operating goal achievement and additional LTCP payout.
Of course, we are NOT privy to the precise metrics and goals in use, which has been the subject of our creative accounting discussions here, for my part just trying to hypothesize how it could be, that this reserve reversal could possibly boost operating goal achievement?
Suffice it to say that -- I believe -- the 8K and the upcoming 2005 results suggest that this reserve reversal is directly related to the goal achievement in 4Q05 and $3.4M increased LTCP payout. And, this cause and effect is the my overall point.
And to Loop's point, I acknowledge that all this is under the purview of the BoD.
In any case, the upcoming 2005 results and guidance will certainly be very interesting in many respects, including the compensation matters.
Mo,
Corp_Buyer
AI
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