If we were to limit interest expense to 15 % of operating FCF, that would require
a reduction of interest expense from 220 M to 104.6 M — which would imply a near 53 % reduction in the company's excessive debt (& net derivatives) burden.
The $ 12.5 MM of debt principal reduction will be accounted for as a reduction in balance sheet goodwill and the $ 2.4 MM of reversed accrued interest will flow through Reading's income statement to its bottom line as
a reduction of interest expense.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability
of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost
reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build rates
of certain aircraft; 6) the effect on aircraft demand and build rates
of changing customer preferences for business aircraft, including the effect
of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result
of global economic uncertainty or otherwise; 8) the effect
of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution
of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation
of our announced acquisition
of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability
of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk
of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production
of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts
of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak
of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact
of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition
of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect
of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect
of changes in tax law, such as the effect
of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations
of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect
of such changes; 21) any
reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to recruit and retain a critical mass
of highly - skilled employees and our relationships with the unions representing many
of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment
of interest on, and principal
of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness
of any
interest rate hedging programs; 28) the effectiveness
of our internal control over financial reporting; 29) the outcome or impact
of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition
of Asco in a timely matter while avoiding any unexpected costs, charges,
expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result
of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks
of doing business internationally, including fluctuations in foreign current exchange rates, impositions
of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Such risks, uncertainties and other factors include, without limitation: (1) the effect
of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices,
interest rates and foreign currency exchange rates, levels
of end market demand in construction and in both the commercial and defense segments
of the aerospace industry, levels
of air travel, financial condition
of commercial airlines, the impact
of weather conditions and natural disasters and the financial condition
of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization
of the anticipated benefits
of advanced technologies and new products and services; (3) the scope, nature, impact or timing
of acquisition and divestiture or restructuring activity, including the pending acquisition
of Rockwell Collins, including among other things integration
of acquired businesses into United Technologies» existing businesses and realization
of synergies and opportunities for growth and innovation; (4) future timing and levels
of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability
of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope
of future repurchases
of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level
of other investing activities and uses
of cash, including in connection with the proposed acquisition
of Rockwell; (7) delays and disruption in delivery
of materials and services from suppliers; (8) company and customer - directed cost
reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits
of organizational changes; (11) the anticipated benefits
of diversification and balance
of operations across product lines, regions and industries; (12) the outcome
of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact
of the negotiation
of collective bargaining agreements and labor disputes; (15) the effect
of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect
of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect
of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act
of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability
of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition
of conditions that could adversely affect the combined company or the expected benefits
of the merger) and to satisfy the other conditions to the closing
of the pending acquisition on a timely basis or at all; (18) the occurrence
of events that may give rise to a right
of one or both
of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee
of $ 695 million to United Technologies or $ 50 million
of expense reimbursement; (19) negative effects
of the announcement or the completion
of the merger on the market price
of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation
of their businesses while the merger agreement is in effect; (21) risks relating to the value
of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability
of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
Under the Bonus Plan, our compensation committee, in its sole discretion, determines the performance goals applicable to awards, which goals may include, without limitation: attainment
of research and development milestones, sales bookings, business divestitures and acquisitions, cash flow, cash position, earnings (which may include any calculation
of earnings, including but not limited to earnings before
interest and taxes, earnings before taxes, earnings before
interest, taxes, depreciation and amortization and net earnings), earnings per share, net income, net profit, net sales, operating cash flow, operating
expenses, operating income, operating margin, overhead or other
expense reduction, product defect measures, product release timelines, productivity, profit, return on assets, return on capital, return on equity, return on investment, return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder return, working capital, and individual objectives such as MBOs, peer reviews, or other subjective or objective criteria.
In addition, the company recorded a $ 6 million
reduction to
interest expense ($ 4 million after tax) related to premiums and fees received on the sale
of the notes.
With a student debt consolidation loan you will be able to reduce the amount
of money you pay on
interests and with a
reduction on your other
expenses you will be able to destine a higher amount
of money to paying off the loan's principal in order to hasten your debt
reduction process.
The loan
reduction this time is equal to $ 178.53 minus
interest expense of $ 16.83, or $ 161.70.
The blue line is showing the
reduction in the amount
of interest (
expenses) you are paying, on a yearly basis for this scenario and the ING
interest rates shown above.
Simply because the
reduction in
interest expenses at this stage is far larger than the potential income from the funds when invested (we would need a ROI
of about 27 % on the available cash to compensate the increased
interest expenses...).
Borrowers with VA loans may be able to refinance with VA
Interest Rate
Reduction Loans (IRRRL) without dealing with many
of the steps and
expenses associated with conventional mortgage refinances.
The average borrower utilizing LendKey Network has saved an average
of 2.20 %
of initial
interest rate
reduction on their loans, which creates about $ 10,000 in
interest expense savings for the borrower over the lifetime
of the loan.»
Now, we should see a
reduction in operating cash flow (at least initially, due to PTR's reduced stake in Licence 61), but the elimination
of 3 M odd
of annual
interest expense should provide a decent offset.
Payments to the mortgage are a combination
of two things —
interest (pure
expense) and principal
reduction (which reduces the loan balance and is a form
of saving).
For over-indebtedness, I'll haircut my valuation by 100 %
of the company's incremental debt (i.e. the debt
reduction required to reduce
interest expense to 15 %
of EBITA)-- a clumsy but often effective measure
of the operating / dilution / bankruptcy risks an investor faces with such a company.
The biggest includes a
reduction in the top corporate rate to 21 %, a new 20 % deduction for incomes from certain type
of «pass - through» entities (partnerships, S Corps, sole proprietorships), limits on
expensing of interest from borrowing, almost doubling
of the amount small businesses can
expense from the 2017 Section 179 amount
of $ 510,000 to $ 1,000,000, and eliminates the corporate alternative minimum tax (AMT).
Forms 1040, 1040A & 1040EZ Form 1040 Schedule A — Itemized Deductions Form 1040 Schedule B —
Interest and Ordinary Dividends Form 1040 Schedule C — Net Profit or Loss Form 1040 Schedule D — Capital Gains and Losses Form 1040 Schedule E — Supplemental Income and Loss Form 1040 Schedule EIC — Earned Income Credit Form 1040 Schedule F — Profit or Loss from Farming Form 1040 Schedule H — Household Employment Taxes Form 1040 Schedule R — Credit for the Elderly or the Disabled Form 1040 Schedule SE — Self - employment Tax FEC — Foreign Employer Compensation for eFile Form Payment — Form Payment for eFile Form 982 —
Reduction of Tax Attributes Due to Discharge
of Indebtedness Form 1116 — Foreign Tax Credit (Individual, Estate, or Trust) Form 1310 — Statement
of Person Claiming Refund Due a Deceased Taxpayer Form 2106 — Employee Business
Expenses Form 2120 — Multiple Support Declaration Form 2441 — Child and Dependent Care
Expenses Form 2555 — Foreign Earned Income Form 3800 — General Business Credit Form 3903 — Moving
Expenses Form 4137 — Social Security and Medicare tax on Tip Income Form 4562 — Depreciation and Amortization Form 4563 — Exclusion
of Income for Bona Fide Residents
of American Samoa Form 4684 — Casualties and Thefts Form 4797 — Sales
of Business Property Form 4868 — Application for Extension
of Time to File U.S. Income Tax Return Form 4952 — Investment
Interest Expense Deduction Form 5329 — Additional Taxes Attributable to IRAs, et.
Recently, there seems to be a viral spread
of so - called «Mortgage Accelerator» products, which promise miracles
of drastic
reductions in the
interest expense and pay - off time
of your home mortgage.