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This excerpt taken from the SMG DEF 14A filed Dec 20, 2007. Footnote
to Column (d) of the Non-Employee Director Compensation
Table
The amounts in this column reflect the personal usage of
company-owned aircraft, calculated on the basis of the aggregate
incremental cost to the Company of $1,950 for Mr. Donald
and $23,350 for Ms. Littlefield. The reported aggregate
incremental cost of personal use of company-owned aircraft was
based on the direct operating costs associated with operating a
flight from origination to destination, such as fuel, oil,
landing fees, crew hotels and meals, on-board catering,
trip-related maintenance, and trip-related hangar/parking costs.
Since company-owned aircraft are used primarily for business
travel, the calculation method excludes the fixed costs which do
not change based on usage, such as pilots’ salaries, the
purchase cost of company-owned aircraft and the cost of
maintenance not related to trips. The value reported for
personal usage does not include the cost of ferry legs, i.e.
“deadhead flights,” of $4,350 for Mr. Donald and
$8,560 for Ms. Littlefield. Due to Federal Aviation
Regulations which govern the registration and operating
authority of the aircraft, the Company cannot accept
reimbursement for the aggregate incremental cost associated with
personal usage, including the cost of the ferry legs.
Accordingly, the aggregate incremental cost to the Company of
such usage during the 2007 fiscal year is reported as additional
compensation to Mr. Arnold and Ms. Littlefield.
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