Question-and-Answer Session
Operator
(Operator Instructions) Please limit yourself to one question and a single follow up. Our first question will come from Michael Linenberg – Merrill Lynch.
Michel Linenberg – Merrill Lynch
I have a couple questions here, Brad when we look at the information that you provided regarding the lawsuit you indicated that you recognized the total of $32.4 million of revenue. When you say recognized did that show up in the revenue line this quarter and what was the catalyst for that and is the first time that you’ve actually recognized revenue with the money that Delta has held back related to this issue?
Bradford R. Rich
The fat in the matter is that when this was brought to our attention actually just about a year ago, the amount in dispute in that time I think was right on $25 million. The only issue here is that a the present time the total amount that has been recorded into revenue and that really is in dispute or you could say the total amount of our exposure to this is $32.4 million.
Michel Linenberg – Merrill Lynch
It’s $32.4 million and now that’s associated with funds that Delta has withheld. How much have they withheld at this point? Because I believe at the end of the June quarter I think it was $32.5 million. Are we still at $32.5 million or as of September 30th is that number a bit higher and are they still withholding money?
Bradford R. Rich
No, they’re still withholding money. The issue here that I’m talking about is just how much of what they’ve withheld, how much have we booked and therefore if we were to lose the suit, how much do we have exposed. That number is $32.4 million. The dispute is ongoing and Delta continues to withhold money according to their interpretation of how IROP expenses should work in the contracts.
Michel Linenberg – Merrill Lynch
My second question regarding the Delta files a motion to dismiss the complaint, you did provide a full paragraph in how that played out. In layperson’s terms, can you explain what you’re able to pursue and maybe what you’re not able to pursue? It looked like that there was some bit where they received a favorable ruling from the court. It looked like that you also received a favorable.
Can you part and parcel where things stand and maybe what you’re not able to pursue or fight?
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