Data Table Question
I took your class at NYSSA a couple of years ago and had a random question that I hope you could help with... I want to create two variable data table for each year over a twenty year period. Is there a more efficient way of doing this without having to create a separate table for each year?

DTL in purchase price allocation
Quick question follow-up on DTL on purchase price allocation- As the inventory is sold that was stepped up (and DTL created upon merger), DTL goes down. My understanding is that DTL is written down, cash goes down to pay taxes as the double entry accounting. Thus, I'd like to confirm that goodwill ... Quick question follow-up on DTL on purchase price allocation-
As the inventory is sold that was stepped up (and DTL created upon merger), DTL goes down. My understanding is that DTL is written down, cash goes down to pay taxes as the double entry accounting. Thus, I'd like to confirm that goodwill that was grossed up due to the DTL initially isn't touched.

And thus, goodwill isn't touched (amortized) unless impaired even though the inventory was sold that resulted in the portion of goodwill that was grossed up. Read More

Re: Questions about total debt & preferred stock
Should the preferred stock be hard coded as zero in the case of Pep and then it will still be included when we calculated the total debt because we are building a dynamic model?

Exchange Ratio in Accretion Dilution
Re an acc/dil analysis: Let’s say you wanted to calculate the historical exchange ratio between a company whose stock trades in Europe and a US company. European company is buying US company.   Is the technically correct way to calculate that historical exchange ratio, say over the past 5 yea... Re an acc/dil analysis: Let’s say you wanted to calculate the historical exchange ratio between a company whose stock trades in Europe and a US company. European company is buying US company.
 
Is the technically correct way to calculate that historical exchange ratio, say over the past 5 years, to be: US company’s stock price / [ European company’s stock price in British Pounds * FX rate for each day]?  at the end of the day, if the british company is buying the US company, US company’s shareholders are receiving stock in a foreign company, and so should factor in the impact of FX risk on their shares.
 
Does this sound right to you? Read More

Complex trading comps - Sears Holdings
Hi, For Sears Holdings Corp, why do we need to adjust the "Gain on sale of assets" from operating income? Here is the footnote: NOTE 16—REAL ESTATE TRANSACTIONS The Company recognized $39 million, $946 million and $89 million in gains on sales of assets during fiscal 2005, fiscal 2004 ... Hi,

For Sears Holdings Corp, why do we need to adjust the "Gain on sale of assets" from operating income?

Here is the footnote:
NOTE 16—REAL ESTATE TRANSACTIONS
The Company recognized $39 million, $946 million and $89 million in gains on sales of assets during fiscal 2005, fiscal 2004 and for the
39 weeks ended January 28, 2004, respectively. These gains were primarily a function of several large real estate transactions and are included
in operating income in the consolidated statements of operations.........................

During the fiscal 2005, fiscal 2004 and the 39 weeks ended January 28, 2004, the Company purchased 19, 31 and 18 previously leased
operating properties for $98 million, $124 million and $51 million, respectively. In the normal course of business, the Company considers
opportunities to purchase leased operating properties, as well as offers to sell owned, or assign leased, operating and non- operating properties.
These transactions may, individually or in the aggregate, result in material proceeds or outlays of cash. In addition, the Company reviews leases
that will expire in the short-term in order to determine the appropriate action to take with respect to them.

From my understanding, looks like transactions of real estate is a normal course of business, not a one time item. So why do we need to adjust this amount from pro forma operating income?

Thanks. Read More