The Great Wealth Transfer is Here … Now What?

This year, the oldest members of the Baby Boom generation crossed a crucial threshold. They turned 70.5 years-old. Why does that matter? U.S. law currently requires anyone 70.5 or older to begin annual withdrawals from their tax-sheltered retirement accounts and pay taxes on those distributions.I...

By Brian Peccarelli • May 8, 2017

Do We Remember How to Grow?

In 2016, S&P 500 companies returned $877 billion to shareholders as dividends and net share buybacks. Distributions to shareholders increased by nearly 30% from 2007 levels — but, unfortunately, such distributions also represented 90% of these companies’ net income for the year.Frank R. Hopso...

By Frank R. Hopson • May 8, 2017

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

Berkshire Hathaway Profit Falls 5% to $3.56B

Berkshire Hathaway’s operating profit from its businesses fell 4.8% in the first quarter as its insurance subsidiaries swung to an underwriting loss, offsetting gains by its railroad and utilities.Warren Buffett’s conglomerate had operating earnings of $3.56 billion, or $2,163 per Class A share, ...

By Matthew Heller • May 8, 2017

Revlon Shares Fall 23% on Swing to Q1 Loss

Revlon shares tumbled to their lowest level since 2013 after the makeup company reported it swung to a loss in the first quarter amid the tough environment for malls and department stores in the U.S.Revlon’s net loss was $37.4 million, or 71 cents per share, compared with income of $11.0 million,...

By Matthew Heller • May 5, 2017

SEC’s Chief Accountant: Issuers Must Address ‘Other Reporting’ Risks

When the Securities and Exchange Commission released staff guidance a year ago about reporting non-GAAP financial measures, issuers were advised to review disclosure controls and procedures to ensure they adequately addressed the use and presentation of non-GAAP financial measures.Now, with issue...

By Vincent Ryan • May 5, 2017

iHeartMedia Issues ‘Going Concern’ Warning

The parent company of iHeartRadio has warned it may not be able to continue as a going concern as it continues to struggle with the $20 billion debt burden from a 2008 leveraged buyout.Private-equity firms Bain Capital and Thomas H. Lee Partners were the lead investors in the $24 billion buyout o...

By Matthew Heller • May 4, 2017

Groupon Shares Drop 13% on Big Sales Miss

Groupon reported a big miss on first-quarter revenue, sending its shares down sharply, but the e-commerce marketplace said its strategy of focusing on profitability is on track.Groupon’s revenue of $673.6 million for the quarter was down about 4% on a year ago and well below analysts’ estimates o...

By Matthew Heller • May 4, 2017

Apple’s Revenue Jumps 4.6% in ‘Strong’ Q2

Apple reported the second-best second quarter in its history but investors expressed some disappointment, sending its share price down as much as 2.4% in after-hours trading Tuesday.Apple’s revenue rose 4.6% to $52.9 billion while earnings per share improved to $2.10 from $1.90 in the year-ago qu...

By Matthew Heller • May 3, 2017

MasterCard Shares Surge on 12% Profit Gain

MasterCard on Tuesday reported better-than-expected quarterly earnings and sales but faces tighter margins as it spends heavily to fend off competition from digital payment services.The world’s second-largest payments network said net income rose 12.7% to $1.081 billion in the first quarter while...

By Matthew Heller • May 2, 2017

Annual Harvest

Not very long ago, when people talked about software companies adopting or transitioning to the subscription business model, the discussion often focused on its relative merits. Was it better business to follow the traditional model, where vendors sold a perpetual license to a “box” of software —...

By David McCann • May 2, 2017

Information Inflation

Responding to both investor demand and Securities and Exchange Commission mandates, the 10-Ks, 10-Qs, and proxy statements issued by companies contain more nonfinancial information than ever before. In its latest 10-K, for example, Alphabet devotes close to 700 words to supply chain risks. Apple’...

By Ed Zwirn • May 2, 2017

Amazon Shrugs Off Cloud-Computing Rivals

Powered by its cloud computing business, Amazon is continuing to defy expectations that increasing competition will slow its momentum.For the first quarter, which ended March 31, the online shopping giant reported net income rose 41% to $724 million, or $1.48 per share — the eighth straight quart...

By Matthew Heller • April 28, 2017

GM’s Q1 Profit Hits Post-Bankruptcy Record

General Motors on Friday posted a record post-bankruptcy first-quarter profit as the No. 1 automaker benefited from a shift to larger SUVs, crossovers, and trucks despite the industry-wide trend of declining sales.GM’s profits soared 33% during the first three months of the year to $2.6 billion, ...

By Matthew Heller • April 28, 2017

Ford’s Profit Dips 35% on Increased Costs

Ford Motor’s profit in the first quarter of 2017 fell more than one third from last year’s record quarter but the company maintained its profit outlook for the whole year.The automaker on Thursday reported $1.6 billion in profit compared to $2.4 billion in the year-ago period. Revenue was up 4%, ...

By Matthew Heller • April 27, 2017

UPS’ E-Commerce Investment Hurts Profit

United Parcel Service’s first-quarter revenue beat estimates but the costs of adding facilities and services to accommodate e-commerce delivery weighed down operating profit.The company reported Thursday that revenue rose 6.2% to $15.32 billion while earnings per share increased 3.9% to $1.32. An...

By Matthew Heller • April 27, 2017

Higher Pay for Auditors Leads to Fewer Restatements

The offices of Big Four accounting firms that pay lower salaries for audit help have a higher portion of clients that experience restatements, according to a new study posted Tuesday.Jeffrey L. Hoopes Jeffrey Hoopes, Auditors“We obtain a sample of data on how much Big Four accounting firms are pa...

By David Katz • April 27, 2017

Short-Term Funding Bill May Avert Shutdown

Hoping to avoid a government shutdown at midnight Friday, congressional leaders introduced stopgap legislation that would give them another week to negotiate a longer-term spending bill.A vote on the legislation could come as early as Thursday, USA Today reported after House Appropriations Chairm...

By Matthew Heller • April 27, 2017

Twitter Beats Estimates But Revenue Drops 8%

Twitter reported its largest quarterly increase in users since early 2015 but an 8% drop in revenue suggests it is still struggling to monetize its audience.The addition of nine million new monthly active users in the first quarter was a positive sign for Twitter, which had posted several quarter...

By Matthew Heller • April 26, 2017

How Foreign Direct Investment Can Drive Business Growth

Globalization seems to be taking a hit in many respects, with persistently weak global trade growth, rising protectionism, and increasing anti-immigrant sentiments in markets around the world. How can CFOs find global growth opportunities? Foreign direct investment (FDI) offers one compelling str...

By Erik R. Peterson and Paul A. Laudicina • April 26, 2017

New Products Fuel Eli Lilly Q1 Earnings Beat

Eli Lilly swung to a loss in the first quarter but sales and adjusted profit beat estimates amid strong demand for new drugs including a diabetes injection.The drugmaker posted a net loss of $110.8 million, or 10 cents per share, for the first quarter ended March 31, compared with a profit of $44...

By Matthew Heller • April 26, 2017

In Defense of M&A Fairness Opinions

Editor’s note: The author of this article is employed by valuation and corporate finance advisor Duff & Phelps, the largest provider of fairness opinions for M&A transactions. The content of the article should be viewed in that light.Christopher Janssen The fairness opinion — a profession...

By Christopher Janssen • April 25, 2017

Riecker Named Sears’ Third CFO in Past Year

Sears has named Rob Riecker as its new finance chief, the third person to hold the position in the past year as the retailer struggles to implement a turnaround plan amid severe liquidity problems.Riecker, currently Sears’ controller and head of capital market activities, replaces Jason Hollar, w...

By Matthew Heller • April 24, 2017

GE Beats Estimates in ‘Strong Start’ to 2017

General Electric’s first-quarter revenue and adjusted earnings beat analysts’ estimates but a miss on industrial cash flow helped drive its stock down.GE’s Chief Executive Jeff Immelt called it a “strong start” to the year, citing 7% growth in organic revenues, 10% growth in orders and an increas...

By Matthew Heller • April 23, 2017

Risk Management Costs Dove 5% in 2016

With the insurance industry glutted with capital, corporations were among those benefiting from the oversupply by paying lower prices for property-casualty coverage in 2016, according to the Risk and Insurance Management Society’s annual benchmark study.  The main drivers of a 5% overall decline ...

By David Katz • April 21, 2017

How to Get Your ROI on Employee Benefits Spending

If you’re like most employers, attracting and retaining the right talent is critical to your success. You want the right people in the right position with the right training to meet your customers’ needs, and you’ve likely made significant investments in your human capital to achieve these goals....

By Ron Shah • April 20, 2017