[cheriot]

There's also the expenses for the other 62.5% of the contract, the taxes paid on the profits, and the business development to get the contract in the first place.

I don't actually know how these things are calculated, though.

[zaroth]

Good points. They are certainly not making out after the fines. Now I wonder, if the fine is tax deductible?

[jacalata]

It shouldn't be in general - http://www.nolo.com/legal-encyclopedia/business-expenses-tha...