Amid conflicting messaging and questions surrounding the agreed-upon revenue sharing between Canada and the U.S., details of the deal to open the Gordie Howe International Bridge were released late Tuesday.
Contrary to what Carney claimed, interest and debt repayment are not considered in net profit.
Depreciation is a standard deduction in calculating operating expenses. It usually amounts to a dollar figure that could exceed interest, depending on the amortization period.
However, the text of the agreement in principle states that Canada will make payments to the U.S. totalling 50 per cent of “net bridge and crossing related revenues” for 15 years, and doesn’t clearly define what counts as operating costs or make mention of Canada’s debt.
https://globalnews.ca/news/11978035/carney-premiers-us-tariff-threat/
I wonder if “net revenue” is gross less Canada’s debt payments at a fixed amount?
Depreciation is a standard deduction in calculating operating expenses. It usually amounts to a dollar figure that could exceed interest, depending on the amortization period.
Interest and debt repayment are not included in the net profit calculation.
But depreciation is an operating expense.
But it’s not part of this negotiated definition of net profit.