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Pathetic Purple FPP Payout
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<blockquote data-quote="quadro" data-source="post: 692225" data-attributes="member: 12850"><p>I haven't gone back and listened to or read a transcript of the teleconference but in all likelihood Fred was talking about operating margin. Basically, that's the gross (35 billion) less all your expenses like salary, etc. Don't know if Fred was talking about Express or FDX. For 2007 Express operating margin was about 8.6%. For FDX it was 9.3%. So for Express, the 1.4% increase would be an additional about $313 million. That can come from additional gross income or less expenses or a combination of both.</p><p>I would highly encourage you to read up on the Pension Protection Act of 2006 as it was that act that triggered the change in the way companies account for their defined benefit plans. Specifically how the annual contribution is determined. You'll also find that there were many large companies that ended their defined benefit plans because of this. Now, I'm not saying whether or not FedEx should have or could have continued making the substantially larger contributions. I get why people are upset about the loss of the plan but I also understand the economics of it. It is very easy to jump on the bandwagon on one side or the other but it makes no difference if you are not informed. Do the research and don't listen to the rhetoric no matter which side it comes from. That way you'll know that you are making educated decisions.</p></blockquote><p></p>
[QUOTE="quadro, post: 692225, member: 12850"] I haven't gone back and listened to or read a transcript of the teleconference but in all likelihood Fred was talking about operating margin. Basically, that's the gross (35 billion) less all your expenses like salary, etc. Don't know if Fred was talking about Express or FDX. For 2007 Express operating margin was about 8.6%. For FDX it was 9.3%. So for Express, the 1.4% increase would be an additional about $313 million. That can come from additional gross income or less expenses or a combination of both. I would highly encourage you to read up on the Pension Protection Act of 2006 as it was that act that triggered the change in the way companies account for their defined benefit plans. Specifically how the annual contribution is determined. You'll also find that there were many large companies that ended their defined benefit plans because of this. Now, I'm not saying whether or not FedEx should have or could have continued making the substantially larger contributions. I get why people are upset about the loss of the plan but I also understand the economics of it. It is very easy to jump on the bandwagon on one side or the other but it makes no difference if you are not informed. Do the research and don't listen to the rhetoric no matter which side it comes from. That way you'll know that you are making educated decisions. [/QUOTE]
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