All public companies are required to provide an annual report to the Securities and Exchange Commission $($SEC$).$ This report is known as a $10-$K report and includes not only financial statements, but also explanatory notes. These notes elaborate on information found in the financial statements and provide insight into the financial data. An example of a note found in the $201910-$K report of JetBlue Airways is as follows:

JetBlue Note $10$Employee Retirement Plan

We sponsor a retirement savings $401($k$)$ defined contribution plan, or the Plan, covering all of our crewmembers where we match $100\%$ of our crewmember contributions up to $5\%$ of their eligible wages. The contributions vest over three years and are measured from a crewmember$$s hire date. Crewmembers are immediately vested in their voluntary contributions. Another component of the Plan is a Company discretionary contribution of $5\%$ of eligible non$-$management crewmember compensation, which we refer to as Retirement Plus. Retirement Plus contributions vest over three years and are measured from a crewmember$$s hire date. Certain Federal Aviation Administration, or FAA, licensed crewmembers receive an additional contribution of $3\%$ of eligible compensation, which we refer to as Retirement Advantage. Effective August $1,2018,$ pilots receive a non$-$elective Company contribution of $15\%$ of eligible pilot compensation per the terms of the finalized collective bargaining agreement between JetBlue and the Air Line Pilots Association, or ALPA, in lieu of the above $401($k$)$ Company matching contribution, Retirement Plus, and Retirement Advantage contributions. Refer to Note $11$ to our consolidated financial statements for additional information. The Company$$s non$-$elective contribution of $15\%$ of eligible pilot compensation vests after three years of service. Our non$-$management crewmembers are eligible to receive profit sharing, calculated as $10\%$ of adjusted pre$-$tax income before profit sharing and special items up to a pre$-$tax margin of $18\%$ with the result reduced by Retirement Plus contributions and the equivalent of Retirement Plus contributions for pilots. If JetBlue$$s resulting pre$-$tax margin exceeds $18\%,$ non$-$management crewmembers will receive $20\%$ profit sharing on amounts above an $18\%$ pre$-$tax margin. Total $401($k$)$ company match, Retirement Plus, Retirement Advantage, pilot retirement contribution, and profit sharing expensed for the years ended December $31,2019,2018,$ and $2017$ were $$196$ million, $$172$ million, and $$182$ million, respectively.

This note is important because it discloses information about obligations the company has under its employee retirement plan. In addition to matching $5\%$ of employee contributions, the company also provides payments to employees based on profits. This information is important to stakeholders, including stockholders, as it shows that JetBlue does share its profits with employees and this may help in attracting and retaining good employees. It also denotes a financial obligation for the firm. JetBlue's Annual Reports sections can be found on their website: JetBlue$$s Annual ReportsLinks to an external site.

Instructions

Using the $10-$K report of a public company $($preferably an aviation business$)$ find an example of a Note to the financial statements. This Note will be found beneath the financial statements and labeled as a Note. Do not confuse it with other sections of the $10-$K report which disclose important information, but are not Notes to the financial statements. Provide the details of the Note and explain why this information is important to stakeholders $($stockholders$,$ employees, inventors, etc.$).$ The $10-$K report must be dated within the past $2$ years of financial results.

the details of the note as well as a link to the full $10-$K statement.

evidence of their own understanding of why Notes are important to a financial statement and a valid interpretation of the actual Note submitted.