Did Flight Options lose 55 million bucks in 2006?

[TailDraggerTed]

I'm no CFO, but check this out. Whoa.

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-01-2007/0004517864&EDATE=


Part of it says

The segment recorded an operating loss of $61 million in the fourth quarter 2006, which included a pretax goodwill impairment charge in the Flight Options business of $55 million, compared to an operating loss of $51 million in the fourth quarter 2005, which included a pretax goodwill impairment charge of $22 million in the Flight Options business. The $10 million increase in
operating loss was due to the Flight Options impairment charge partially
offset by improved operating performance.

 

[Number$Cruncher]

According to the release, that's just for the 4th quarter.

 

[johnsonrod]

Sounds like Scheringa is earning his million dollar salary............

 

[SheGaveMeClap]

I'd guess that's $55m for the 4th quarter. It has to be well into the hundreds of millions for the year with that guy at the helm. He should have been gone a long time ago.

 

[jetwash]

The 55 million is more of a tax shift after selling RAS they needed a deduction after getting $3.5 Billion for RAS.
What better way of coming up with a deduction then saying you paid too much for a company you bought from yourself.

Do you really think Raytheon had no idea of what Flight Options was really worth when they bought out the remaining private investors?

It has nothing to do with profit or loss for Flight Options. Just ask a corporate accountant.

 

[clickclickboom]

The 55 million is more of a tax shift after selling RAS they needed a deduction after getting $3.5 Billion for RAS.
What better way of coming up with a deduction then saying you paid too much for a company you bought from yourself.

Do you really think Raytheon had no idea of what Flight Options was really worth when they bought out the remaining private investors?

It has nothing to do with profit or loss for Flight Options. Just ask a corporate accountant.

The loss was $61,000,000.. Raytheon made a goodwill impairment of $55 milllion to sustain flight options operations..

Last year it was a 22 million payment..

Of course it is near impossible to totally understand how the bean counters arrive at their respective numbers.

Raytheon made nearly 1.3 billion in 2006. It will be interesting to see how long RAS keeps making " Goodwill" payments now that the GA aircraft side is basically sold to flops competitor.

 

[jetwash]

I have to disagree with you.
I too thought that until an accountant explained it to me.

It has nothing to do with a profit /loss it is a way of cleaning up your books, most likely for a sale of the company.

They probably counted all the unsold shares of the Citation3, Falcon 50, King air as assets that can be sold. Now that they sold the aircraft those unsold shares/assets don't exist anymore so the total value of the company assets falls.

 

[Guitar Guy]

...now that the GA aircraft side is basically sold to flops competitor.

What do you mean by that statement? What I've read said that a group consisting of Goldman Sachs and Onyx bought the general aviation portion of Raytheon, sans the 1900 support system (RAAS) and FLOPS.

Just curious what you meant by your statement.

 

[jetwash]

Raytheon made nearly 1.3 billion in 2006. It will be interesting to see how long RAS keeps making " Goodwill" payments now that the GA aircraft side is basically sold to flops competitor.

Raytheon will keep making goodwill charges since it helps in their over all business. The $55 million for Flight Options is nothing when you consider they have already made $11.5 Billion in goodwill charges.

http://finance.yahoo.com/q/bs?s=RTN&annual

Just look at their report.

 

[Rubber Ducky]

jetwash

jetwash,

I do not think you know what a goodwill impairment charge is. Flight Options is doing well, we lost $5.9 mil operationally in the last quarter. Thats a big improvement over last year. If Shawn Michael had not dumped $10 mil on charter to cover the nonexistent work slowdown that he dreamed up, we would have been operationally profitable for the last quarter. We are still selling shares; the market has just favored jetpass recently. Stay tuned and you will see a profit shortly after we see a contract.