WMT's Net Revenue
Hi there,

In WMT's case, why didn't we adjust WMT's Net Revenue down to reflect the US$1.5 billion non-recurring / non-core foreign exchange income due to favorable FX conditions in FY2006?

Cheers

Tax rate
Hi, one simple question here: why didn't we use the statutory tax rate of 35% (according to 10K p. F-18) when calculating the after-tax impact of the LIFO-FIFO adj.? Is there any specific reason or circumstance? And why assumes 40%?

Thanks.

NOL cap (due to M&A) affects "ALL FUTURE" NOLs?
In the tax schedule excel worksheet, NOL Used to Shelter Income (cell g13) formula takes the NOL cap per year if there is a change of control forward forever. So it appears that this “cap” affects all future (ending NOL) balances (and not just the acquired/historical target NOL portion)? Also i... In the tax schedule excel worksheet, NOL Used to Shelter Income (cell g13) formula takes the NOL cap per year if there is a change of control forward forever. So it appears that this “cap” affects all future (ending NOL) balances (and not just the acquired/historical target NOL portion)?

Also in the tax schedule, if there is a permanent difference (as shown in GW impairment row 10, and shown/adjusted in tax expense calc/formula row 18), then (gaap) pre-tax income should already (which is not the case in the worksheet) be adjusted (gw impairment should already be reversed/added-back) OR no, this tax sch also reflects/makes permanent difference adjustments to both (gaap) pre-tax income AND taxable income? Read More

JCP Trading Comps: about EBIT and impairment
Hi there, here I have a couple of questions on this class: (1). I did not understand why we calculated EBIT as EBT + Net Interest Expense since in p.13 in our 10K they state clearly that the company considers the OPERATING PROFIT (EBIT), calculated as Gross Margin - SG&A, as a key measurement... Hi there, here I have a couple of questions on this class:

(1). I did not understand why we calculated EBIT as EBT + Net Interest Expense since in p.13 in our 10K they state clearly that the company considers the OPERATING PROFIT (EBIT), calculated as Gross Margin - SG&A, as a key measurement of its business operations. With a such statement, shouldn't we have calculated EBIT accordingly (GM-SG&A) to be consistent on how the company itself measures its profitability?

(2). We didn't adjust for Asset Impairment arguing that the 10K says it's an "on-going evaluation process". However, if we think about it, it is essentially an 'ongoing evaluation process" as a result of an accounting requirement to be so, and not a pure management decision to do such evaluations. Take the goodwill impairment, for example, that we generally want to adjust financials to exclude the impact of this impairment (that is also an ongoing revaluation requirement). So, why don't we do the same here with the asset impairment (and adjust its impact on IS) and be consistent w/ the goodwill impairment treatment?

Thanks a lot. Read More

debt
Is there a course which speaks to debt for project financing? ie. debt sculpting as well as sizing the potential debt capacity based on a target DSRC over the life of a project?