Page 101 - Annual Report 2016 - Cover & Divider Pages.indd
P. 101
E X P E N S E S
The Revenue contributed by the Practice Areas is first used to pay our people,
our consultants, and vendors. Anything left from covering our costs of doing
business is used for bonuses, retirement funding, reinvestment, and taxes. The
chart below reflects the year-over-year comparison of the major categories of
our costs of doing business. As mentioned earlier, FGM proactively addressed
several areas in order to reduce expense levels.
One expense item that is missing is interest expense on bank debt. The simple
reasoning here is we currently hold zero bank debt. In an industry where it is not
uncommon to have a line of credit balance to help manage the cash flow cycle,
strong stewardship led by the FGM Board of Directors has kept us on solid ground.
In addition, it should also be noted, once again, in large part due to an available
IRS deduction for energy savings, commonly referred to as Section 179D, FGM paid
essentially no federal income taxes again in Fiscal 2016.
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