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Keyword: gmearningsreport

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  • More on GM’s Non-GAAP Earnings and $35 Billion Tax Benefit

    02/15/2013 8:46:23 AM PST · by jazusamo · 10 replies
    NLPC ^ | February 15, 2013 | Mark Modica
    Yesterday's earnings' report by General Motors threw up some red flags that I reviewed here. In recent quarters, the media seemed to give quite a bit of coverage on GM's earnings, but not so this time. I wanted to follow up and discuss what the financial news networks obviously will not. The most glaring number that warrants further discussion was the $35 billion deferred tax valuation allowance. This tax credit is not allowed under GAAP (Generally Accepted Accounting Principles) but that does not stop many companies from using it as they tout non-GAAP earnings. It is the huge amount of...
  • GM's Mysterious Earnings Report

    02/14/2013 10:41:35 AM PST · by jazusamo · 26 replies
    NLPC ^ | February 14, 2013 | Mark Modica
    General Motors reported earnings today that appeared non-eventful on the surface. Upon further inspection there are some underlying concerns, including a glaring one-time event that stands out. That is an adjustment to earnings with a tax benefit (as opposed to paying taxes) of $35 billion for a "deferred tax valuation release." This was coupled with a goodwill impairment charge of about $27 billion, which allows GM to reduce the previously unusually high goodwill assets that were recorded on its balance sheet. GM uses non-GAAP (Generally Accepted Accounting Principles) to calculate its calendar year operating income of $7.9 billion. The GAAP...