Will Tax Cuts Lead to More C Corporations?

An important question resulting from the passage of the Tax Cuts and Jobs Act (TCJA) is whether it is better to conduct business operations through a pass-through entity (i.e., a sole proprietorship, partnership, limited liability company, or S corporation) or a C corporation. Unfortunately, ther...

By Joseph J. Perry and Michael D'Addio • Jan. 29, 2018

Honeywell Firing on Tax Cut Cylinders

For good and ill — but mostly good — Honeywell International is an excellent example of how the major provisions of the U.S. Tax Cuts and Jobs Act are affecting the financials of multinational conglomerates.At first glance, Honeywell seems a case study in the boons that President Trump and Congre...

By David Katz • Jan. 29, 2018

Explore the Trendline➔

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

Colgate Shares Drop 5% as Sales Disappoint

Colgate-Palmolive shares tumbled on Friday after the consumer products giant reported another tough quarter, with sales coming in below analysts’ estimates and profit declining by nearly half.Colgate has been spending more on advertising and cutting prices to stimulate demand. But for the fourth ...

By Matthew Heller • Jan. 26, 2018

Discover Profit Takes $189M Hit From Tax Law

The new tax law ate into Discover Financial’s quarterly profit but the company’s revenue beat estimates amid growth in all its loan businesses.Net income for the fourth quarter fell to $387 million, or $0.99 per share, from $563 million, or $1.40 per share in the year-ago period, reflecting in pa...

By Matthew Heller • Jan. 25, 2018

Trump Tax-Returns Defender on Tap to Head IRS: Report

President Trump is reportedly on the verge of naming Charles P. Rettig, a Beverly Hills tax lawyer who wrote that candidate Trump’s lawyers shouldn’t advise him to release his tax returns, as commissioner of the Internal Revenue Service.Charles P. Rettig “Is there any legal impediment to Trump pu...

By David Katz • Jan. 25, 2018

Newell to Streamline Portfolio to Core Assets

Newell Brands shares fell sharply on Thursday, hitting a five-year low, after the consumer products company unveiled a sweeping restructuring plan that could involve selling businesses and closing half of its factories and warehouses.The announcement of the plan came less than two years after New...

By Matthew Heller • Jan. 25, 2018

American Airlines Profit Falls on Higher Costs

American Airlines’ fourth-quarter profit fell 11% as higher labor and fuel costs cut into its margins but a key revenue metric jumped more than 5%, reflecting strong global demand.The world’s largest airline reported Thursday that net income for the last quarter of 2017 dropped too $258 million, ...

By Matthew Heller • Jan. 25, 2018

FASB Seeks Rescue of Stranded Taxes

While many CFOs may be celebrating the Tax Cuts and Jobs Act, the big tax-rate decreases their companies are enjoying are spawning an accounting mismatch that will be at best a compliance headache and at worst a loss of flexibility in deploying capital.The mismatch boils down to a discrepancy cre...

By David Katz • Jan. 24, 2018

GE Improves Cash Flow But Loses $10B in Q4

General Electric’s cash performance in the fourth quarter eased concerns about its liquidity but the company reported another earnings miss and disclosed its accounting practices were under investigation.In a news release, GE Chief Executive John Flannery on Wednesday touted the fourth-quarter re...

By Matthew Heller • Jan. 24, 2018

Capital One Swings to $971 Million Loss in Q4

Credit card issuer Capital One swung to a quarterly loss and adjusted earnings missed expectations, reflecting in part a large provision for credit losses.For the fourth quarter, the company said Tuesday lost $971 million, or $2.17 per share, compared with a profit of $791 million, or $1.45 per s...

By Matthew Heller • Jan. 24, 2018

Tax Law Ravages Exec Comp Deductions

The Russell 3000 companies could collectively lose almost $100 billion over the next three years because of compensation-related provisions in the Tax Cuts and Jobs Act, new research shows. But they’ll make that up, and more, from the decreased corporate tax rate.On the negative side, the big-tic...

By David McCann • Jan. 24, 2018

P&G Shares Fall as Price Cuts Eat Into Margins

Procter & Gamble on Tuesday reported better-than-expected quarterly sales and profit but its shares fell 3% amid investor concerns over a decline in gross margins.The world’s largest consumer goods maker has been cutting prices in its grooming business to boost Gillette sales against cheaper ...

By Matthew Heller • Jan. 23, 2018

Kimberly-Clark to Cut 12-13% of Workforce

Huggies maker Kimberly-Clark is extending its cost-cutting efforts, including reducing its workforce by 12-13% over the next four years, as it seeks profitable growth amid weak sales in its key North American market.The personal care company on Tuesday not only set a cost savings target of more t...

By Matthew Heller • Jan. 23, 2018

After Another Cadillac Tax Delay, Now What?

The proposed two-year delay in the implementation of the Affordable Care Act’s “Cadillac Tax,” an element of Congress’ emergency government funding bill, is now law after President Trump signed the bill on Monday.Under the new timetable, the tax — a 40% excise tax on the cost of health plans abov...

By David McCann • Jan. 23, 2018

Brand Value Drives Corporate Value

Most CFOs have a good sense of how to evaluate investments in plant and equipment to improve current manufacturing facilities or expand production. The facts are almost always available and clear, and the analysis is straightforward. How much capital is needed, and what’s the expected impact on c...

By Joseph Theriault and Gregory V. Milano • Jan. 23, 2018

Six CPAs Accused of Rigging Audit Inspections

In a major jolt to the Public Company Accounting Oversight Board, three former staff accountants have been accused of leaking confidential information to KPMG partners so the firm could perform better on inspections of its audits.The U.S. Securities and Exchange Commission said the information di...

By Matthew Heller • Jan. 23, 2018

What Will Artificial Intelligence Be Doing in 2018?

It would be impossible to predict what artificial intelligence will look like 10 or even 5 years from now. Even a modest goal like making a 12-month forecast could prove challenging.However, PricewaterhouseCoopers has done just that in a new paper, released in mid-January, that offers up several ...

By David McCann • Jan. 22, 2018

Tax Law Knocks American Express Into the Red

A $2.6 billion, one-time charge related to the new tax law pushed American Express into a quarterly loss for the first time in a quarter of a century.For the fourth quarter, American Express reported a net loss of $1.197 million or $1.41 per share, compared with net income of $825 million or $0.8...

By Matthew Heller • Jan. 19, 2018

Black Rock Chief Tells CEOs to Behave like Citizens

Over the last few years, analysts have been thirsting for data attesting that the companies their clients are investing in have been attuned to societal factors like their treatment of employees and their sensitivity to the negative effects of climate change.Part of that lust for sustainability d...

By David Katz • Jan. 18, 2018

What’s the Best Time to Announce Earnings?

Companies are united in their belief that it’s best not to announce quarterly earnings results during trading hours. About 95% of publicly held companies subscribe to that policy, according to new research.Among those that do, there’s a fairly even split between earnings announced after the closi...

By David McCann • Jan. 17, 2018

What the Retail Crisis Can Teach CFOs

The current retail crisis can teach CFOs some valuable lessons. This crisis can be felt across many industries, not just retail — from hotels, to taxi services, to restaurants. Last year set a record pace for retail bankruptcies and store closings with household names faring no better than small ...

By Ken Crutchfield • Jan. 17, 2018

Citigroup Takes $22B Charge on Tax Law Adjustments

Citigroup on Tuesday reported a $22 billion charge due to the new tax law but its adjusted fourth-quarter earnings beat analysts’ estimates on strong growth in its consumer banking business.Joining several other banks that have recalculated their tax position since the corporate income tax rate w...

By Matthew Heller • Jan. 17, 2018

GM’s Streak of Profit Growth to End This Year

General Motors said Tuesday it expects to post another record profit for 2017 but earnings will be flat this year due to the costs of launching a new truck range and a likely decline in U.S. sales.Previewing its 2017 results, the automaker forecast that adjusted earnings will hit the higher end o...

By Matthew Heller • Jan. 16, 2018

Tax Savings Fuel Wells Fargo Q4 Earnings Beat

Wells Fargo’s quarterly earnings got a boost from the new tax law but the fake-accounts scandal continued to loom over the bank as it disclosed another large writedown for litigation expenses.For the fourth quarter, Wells Fargo reported net income of $6.15 billion on revenue of $22.05 billion, bo...

By Matthew Heller • Jan. 15, 2018

JPMorgan Takes $2.4B Charge Due to Tax Law

JPMorgan Chase’s fourth-quarter net profit fell 37% but earnings excluding a one-time charge related to the new tax law beat analysts’ expectations and the bank expects the tax cuts will boost profitability this year.As The New York Times reports, JPMorgan’s “underlying finances were obscured [in...

By Matthew Heller • Jan. 12, 2018