Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Inch - Merrill Lynch.
John Inch - Merrill Lynch
All in based on the trajectory of that you are seeing with these puts and takes how are you feeling about being able to hold earnings per share kind of flattish next year or even perhaps grow it.
Dave Anderson
It’s really premature to comment on earnings per share outlook. I think what you’ve seen in terms of our third quarter performance, the outlook for the fourth quarter, the actions that we continue to take, the investments we continue to make we’re obviously confident that we’re going to continue to outperform in the environment. We’ll take you through the details of that on December 9th.
Dave Cote
Typically what we do in terms of doing anything for forecasting the next year we always do it in December. It seems like every third quarter we get asked and we always saw we’re going to do it in December. At the end of the day I think it’s important to recognize how different the company is and the caliber of the portfolio we have now and how it’s run. I would take all of those into consideration and we’ll talk to you more about it in December like we always do.
John Inch - Merrill Lynch
Can I ask about B&GA accruals adjustments we’re not really familiar with this accounting why does this hit the revenues, why are you doing this now and what platforms is this affecting?
Dave Anderson
As we’ve said, the wins that we’ve had most significantly the Embraer and Gulfstream wins, it’s not exclusive to that those are obviously large new platform wins. Typically come with contractual agreements that when we achieve certain milestones we support the OEs in terms of their pre-production costs. What we’ve been able to do here is basically through the renegotiation and restructuring of those contracts is achieve those milestones earlier and therefore be able to accrue those expenses and the way it works is those payments are a one for one deduct from the bottom line and the top line.
We’re able to accrue for those early as I said with no cash impact in 2008. Importantly, those milestones related to these platform wins are really multi-year. We have in terms of our agreements we have ’08, ’09, ’10, ’11. What we’ve been able to do is not only be able to recognize earlier some of these milestones and therefore make the accruals. The other thing that’s enabled us to do is really smooth out on a multi-year basis. That’s another positive we’ll talk a little more about that in December but that’s another positive for us, when you look at the year over year impacts of these milestones.
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