Why the Big Three Put Too Many Cars on the Lot

It’s no secret that in the years leading up to 2008, the Big Three automakers — Ford, General Motors, and Chrysler — were producing above market demand. But researchers say they know why the automakers did it, and they are warning other companies to avoid the same temptation.To boost profits and ...

By Marielle Segarra • Feb. 2, 2012

For Consumer Products Makers, Sales Growth Spurs Share Prices

In December The Conference Board announced that its monthly Consumer Confidence Index rose to 64.5, the highest level seen since April 2011. Consumer spending in the latest GDP report showed a 2% increase, up slightly from the 1.7 % increase in the third quarter. We were beginning to see signs of...

By Steven C. Treadwell and Gregory V. Milano • Feb. 1, 2012

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Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

Dashboards Can Now Gauge More Data

At Brightpoint, a global communications technology company, CFO Vince Donargo spends plenty of time studying both operational and financial metrics. But in order to track key data points, such as receivables and on-time shipping performance, he must sift through separate daily reports that land i...

By Marielle Segarra • Feb. 1, 2012

U.S. Court Discredits U.K. Windfall Tax

Instances of the globalization of national economies are everywhere these days, and the tax implications for corporations are a big part of that great intertwining. A change in the political climate in a foreign country can thus affect the tax returns of a U.S. company.In one recent legal decisio...

By Robert Willens • Jan. 31, 2012

Holding On to Family Ties

Crane & Co. knows money. The 210-year-old company is the maker of U.S. currency paper; it derives even more revenue from selling currency products to international governments than to the United States. But when the family-owned business was looking for some liquidity a few years ago, how to ...

By Alix Stuart • Jan. 31, 2012

Tax 2012: A Year to Prepare for 2013

Amid expiring tax credits, the daunting prospect of corporate tax reform, and a Congress in perpetual gridlock, companies are nonetheless unlikely to see significant shifts in tax policy in 2012. That may make this an ideal year for businesses to give Congress input on impending changes, experts ...

By Marielle Segarra • Jan. 30, 2012

Scrutiny Seen for Skimpy Tax Disclosures

What are they hiding? If companies continue to boost their reported earnings without describing their tax-planning strategies, investors and accounting standards-setters may start asking that question.Currently, many companies report the existence of tax- planning strategies to justify the absenc...

By David Katz • Jan. 28, 2012

SEC Hits Back at Court on Settlements

The Securities and Exchange Commission has pushed back against a federal judge who is questioning the adequacy of a settlement between the regulator and a former CFO.On Wednesday, in a court filing to the U.S. Court for the Eastern District of Wisconsin, the SEC defended an agreement with Koss Co...

By Sarah Johnson • Jan. 25, 2012

Companies Set to Unleash the (Cash) Hoards: Survey

Just over 40% of companies plan to tap their cash reserves this year, according to a Deloitte survey set to be released on Wednesday.The accounting firm’s findings stem from a fall survey of 940 business professionals during a webcast. For the most part, these listeners, including CFOs, work in t...

By Sarah Johnson • Jan. 24, 2012

The Envelope, Please: The 2011 Capital Deployment Awards

Among the most important responsibilities of CFOs, chief executive officers, and board members is deciding on the deployment of capital. They must chose whether to invest in the business via capital expenditures, acquisitions, and other investments or distribute capital to shareholders via divide...

By Gregory V. Milano • Jan. 20, 2012

The Tipping Point: High Court Applebee’s Ruling Could Hike Payroll Costs

Employers of workers who earn part of their pay in tips could face expanding payrolls in the wake of Tuesday’s Supreme Court ruling on an employee wage lawsuit. CFOs of such companies will also need to reconsider their record-keeping practices and their employment strategies as a result of the Hi...

By Marielle Segarra • Jan. 19, 2012

Smaller Is Better for Outsourcing Market

Since the peak of the financial crisis, when companies put many projects on hold, they have apparently found smaller to be better. The past year was the busiest for outsourcing service providers, with 870 contracts awarded in 2011. Just over 75% of those contracts were between $25 million and $99...

By Sarah Johnson • Jan. 18, 2012

Net Operating Loss: Paying It Forward

A corporation can increase its net operating losses (NOLs) by claiming additional deductions even though the deductions arose in a year that was closed by a statute of limitations, according to a recent Internal Revenue Service ruling.In the case at hand, the corporate taxpayer (TP) contended tha...

By Robert Willens • Jan. 17, 2012

DOL Makes Nice on ‘Investment Advice’

For 401(k) plan participants, finding the right balance between overly conservative investing (resulting in insufficient funds to fund retirement) and overly aggressive investing (risky as one gets closer and closer to retirement age with no time to recoup losses) is too often a challenge.To ease...

By Jeff Mamorsky • Jan. 17, 2012

Not Just a Tax Issue: Lawsuits Crop Up over IRS 162(m)

Proxy season is now upon us, and a key task is to evaluate whether shareholder approval is needed for any executive-compensation plan. One of the typical reasons to seek shareholder approval is to qualify for tax-deduction relief under Section 162(m) of the Internal Revenue Code. By and large, se...

By Andrew Liazos • Jan. 12, 2012

The Check’s in the Mail — for Two More Days

Delivery by letter carriers seems so old-fashioned that it’s been called “snail mail” for years. Yet, as it turns out, most of Corporate America’s invoices still get delivered that way. And the U.S. Postal Service’s December 5 decision to move first-class mail to a two-to-three-day standard seems...

By David Katz • Jan. 12, 2012

What Companies Should Expect from the SEC in the New Year

Companies looking ahead at their 2012 agenda need to also consider an outside party’s to-do list that may have an impact on their business strategy. New rules the Securities and Exchange Commission plans to tackle this year fall into one of three areas: Dodd-Frank Act to-do items, proposals the S...

By Howard E. Berkenblit • Jan. 9, 2012

Free Cash Profiles: The Retailers

The difference a quarter can make.By the end of the third quarter of 2011, the retail industry had plowed much of its cash into inventory for the upcoming holiday season. Typically, retailers are the least liquid and the least profitable in the pre-yuletide quarter.Thus, a sample of the 195 publi...

By David Katz • Jan. 6, 2012

Growing Retailers Spark High Returns

Initial 2011 results point to the second strong Christmas season in a row, with many retailers clearly on the upswing. Selling everything from apparel, jewelry, and fashion accessories to auto parts, electronics, and pharmaceuticals, the retail industry encompasses a broad assortment of businesse...

By Steven C. Treadwell and Gregory V. Milano • Jan. 6, 2012

Investigating a Compliance Failure

It’s every CFO’s worst nightmare: despite your best efforts, your company’s compliance program has failed. There are credible reports of fraud and corruption inside the company, and an initial analysis of the situation confirms a problem. An internal investigation is necessary to determine the ma...

By Tracy L. Coenen • Jan. 5, 2012

Best of 2011: Accounting

After much brooding about whether the United States would fully meld its financial reporting with international financial reporting standards (IFRS), the Securities and Exchange Commission ended 2011 without making its long-awaited, long-delayed decision on the issue.In fact, after predicting tha...

By David Katz • Jan. 3, 2012

How Sale/Leasebacks Get Respect

The late comedian Rodney Dangerfield often complained that no one gave him respect. Corporate taxpayers often may feel the same when they attempt to get the Internal Revenue Service to recognize certain transactions as sale/leasebacks. With accounting standards moving toward a converged requireme...

By Robert Willens • Jan. 3, 2012

Memo to a Taxpayer: Blame Canada

To get superior health care, Canadians have been known to go south of the border. If a case decided in November by a Canadian federal appeals court in Toronto is any indication, corporations domiciled in Canada might also think about moving to the United States to get better tax treatment.In the ...

By Robert Willens • Dec. 21, 2011

ISS Toughens Up View of Executive Comp

Preparing the Compensation Discussion & Analysis in a public company’s proxy statements has largely been the province of legal and human-resources departments. However, changes by Institutional Shareholder Services (ISS) to its proxy-voting guidelines suggest that finance departments may need...

By Andrew Liazos • Dec. 19, 2011

EVA Momentum Ranking Reveals Fertile Growth at CF Industries

Several large companies moved up smartly in the latest CFO EVA Momentum Ranking of corporate profitability performance, which covers the four quarters ended in September. The best-performing company with revenues of $5 billion or more was CF Industries Holdings, which advanced to No. 9 in the lat...

By Al Ehrbar • Dec. 19, 2011