Pimco Fined $20M for Overvaluing Securities

Pacific Investment Management Co. has agreed to pay nearly $20 million to settle charges that it misled investors about the initial performance of an exchange-traded fund by overvaluing mortgage-backed securities it had purchased.According to the U.S. Securities and Exchange Commission, the early...

By Matthew Heller • Dec. 2, 2016

A ‘Sad Case’ of Execs’ Personal Liability for Sales Taxes

The Wisconsin Tax Appeals Commission has issued a final ruling in a tax dispute that began eight years ago, holding executives of an affiliated group of marinas personally liable for the payment of sales taxes.Found liable were Richard Heckel and Robert Heckel II, who owned three now-defunct, sep...

By David McCann • Dec. 2, 2016

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

Kroger Earnings Hit by Food Price Deflation

Kroger on Thursday reported a drop in third-quarter earnings, citing a “difficult operating environment” caused by lower food prices.The largest U.S. supermarket chain recorded net earnings of $391 million, or 41 cents per share, matching the Wall Street estimate but two cents below the prior-yea...

By Matthew Heller • Dec. 1, 2016

PCAOB Chair Goes on the Defensive

Public Company Accounting Oversight Board Chairman James R. Doty delivered a detailed defense of his tenure on Tuesday in the keynote address at the annual auditing conference sponsored by Baruch University’s Zicklin School, stressing the PCAOB’s economic benefits and its advantages in cutting th...

By David Katz • Nov. 30, 2016

Is Court Ruling on Overtime Regs the Last Word?

After the Labor Department issued new rules last May that doubled the salary threshold under which workers were eligible for overtime pay, many companies undertook an employee-by-employee review of compensation and hours worked to determine how to minimize any financial fallout.But now that a fed...

By David McCann • Nov. 29, 2016

OECD Lifts Global Growth Forecast on Resurgent U.S. Fiscal Policy

Global economic growth is projected to rise over the next two years thanks to ongoing or projected changes to economic policies. It will also be buoyed in part by a Trump administration that is expected to follow an expansionary fiscal policy in the United States.The world economy is expected to ...

By Sean Allocca • Nov. 29, 2016

WTO Tells U.S. to Withdraw Boeing Tax Break

The World Trade Organization has given the European Union a partial victory in a trade battle with the U.S., finding that a tax break granted to Boeing amounted to an illegal subsidy.The EU had filed a complaint over seven separate tax incentives for the aerospace industry that were included in l...

By Matthew Heller • Nov. 28, 2016

The Way Forward: The Digital Supply Network

Digital disruption is changing markets everywhere. Today’s digital customers want unique experiences delivered “on demand” and at hyper-speed. In a recent study by Accenture Strategy, 4 in 10 supply chain executives reported their customers are looking for faster and more flexible fulfillment, wh...

By Kris Timmermans • Nov. 22, 2016

Foot Locker Earnings Double in Third Quarter

Sneaker and athletic apparel retailer Foot Locker reported a robust third quarter, doubling its profit and posting same-store sales growth of nearly 5%.Net income rose to $157 million, or $1.17 per share, compared to $0.57 per share in the year-ago quarter. Adjusted earnings per share were 1.13, ...

By Matthew Heller • Nov. 21, 2016

SEC Comment Letters Spur Corporate Tax Compliance

SEC comment letters are supposed to keep companies in line with the regulator’s disclosure rules, but they can also indirectly increase a company’s provision for income taxes, according to a new study published in The Accounting Review.In other words, after receiving an SEC comment letter dealing...

By Sean Allocca • Nov. 21, 2016

Wal-Mart Posts ‘Solid’ Quarter But Stock Falls

Wal-Mart on Thursday reported lower-than-expected revenue gains for the third quarter as its grocery business continued to be hit by food-price deflation.Same-store sales in the U.S. rose 1.2%, the ninth straight increase, but analysts had been expecting growth of 1.3%, according to Consensus Met...

By Matthew Heller • Nov. 17, 2016

Target’s Same-Store Sales Beat Expectations

Target Corp. shares jumped more than 6% on Wednesday after the retailer reported a lower-than-expected drop in same-store sales and an improved outlook.For the third quarter, comparable sales fell 0.2%, rebounding from a 1.1% slump in the previous quarter. The results came as some relief to inves...

By Matthew Heller • Nov. 16, 2016

The Case Against Trump’s Economic Proposals

NEW YORK — Attendees at a conference for finance executives on Tuesday got an earful of sharp talk about the economic impact of Donald Trump’s tax and spending proposals, should they be implemented.Joel Naroff There must have been plenty of Trump supporters in the large, crowded room at FEI’s Cur...

By David McCann • Nov. 16, 2016

Risky Business: SEC Focuses on Internal Controls

(Editor’s note: The author is a former chief accountant of the Securities and Exchange Commission’s Division of Enforcement.)A developing trend in the SEC’s approach to accounting enforcement has increased risk for public companies in the area of internal controls over financial reporting (ICFR)....

By Howard Scheck • Nov. 16, 2016

The Changing Face of Retail

Scott Settersten is a retailing CFO to be envied. The company he works for, Ulta Beauty, has 907 stores and in August was on track to complete its 2016 plans to open 100 net new locations. The company’s financial “overperformance” relative to other retailers stems largely from its exclusive focus...

By David Katz • Nov. 14, 2016

Disney Profit Hurt by Revenue Decline at ESPN

Walt Disney Co. reported fourth-quarter earnings that missed analysts’ estimates as operating income declined at all four of its business segments.The media giant earned $1.10 per share, excluding items, on revenue of $13.1 billion but according to Thomson Reuters, the consensus estimate was earn...

By Matthew Heller • Nov. 14, 2016

Plotting Your Tech Spending for 2017

 As last-minute year-end budget jockeying takes place, CFOs are looking for the optimal return on their technology investments. Here are five articles looking at some of the top considerations when evaluating your IT spending.10 Questions for Technology OptimistsFrom time to time, it’s useful for...

By CFO Editorial Staff • Nov. 12, 2016

J.C. Penney Suffers Same-Store Sales Setback

J.C. Penney on Friday reported a surprising quarterly decline in same-store sales but said its new appliance departments in 500 stores had fueled improved results in October.The retailer’s comp sales for the third quarter ended Oct. 29. fell 0.8% after a 6.4% increase in the year-ago period. Wall...

By Matthew Heller • Nov. 11, 2016

Israeli Firm Fined $1.7M Over Online Trading

An Israeli firm that operates online trading platforms has agreed to pay more than $1.7 million to settle charges that it failed to disclose the risks of trading binary options, costing U.S. investors about $2 million in losses.The U.S. Securities and Exchange Commission said EZTD Inc. represente...

By Matthew Heller • Nov. 11, 2016

Trump’s Corporate Tax Reforms: What CFOs Need to Know

After a dramatic upset victory in one of the most bitterly contested presidential races in recent history, Donald Trump now has some serious work to do. His corporate tax policies—which are vital to his platform of domestic growth and repatriation of U.S. income and jobs—will require significant ...

By Matthew A. Morris • Nov. 11, 2016

Macy’s Misses Estimates But Stock Climbs 5.6%

Macy’s reported quarterly earnings that missed analysts’ estimates for the first time in five quarters but its stock rose as it suggested the retail environment was improving.The retailer earned 17 cents a share in the third quarter, down from 56 cents a year ago and well below the consensus esti...

By Matthew Heller • Nov. 11, 2016

How Will Trump Pay for That Huge Tax Cut?

Expect something huge involving corporate taxes to come before Congress in the early stages of the Donald J. Trump presidency. While the biggest likelihood is a massive cut in federal corporate income taxes from the current maximum rate of 35% to 15% or 20%, broader tax reform is also a possibili...

By David Katz • Nov. 10, 2016

Burberry Restructuring Costs Hit Pretax Profit

Burberry, which has been attempting a turnaround after a year of underperformance, reported a 34% fall in first-half pre-tax profits, reflecting costs from its retrenchment.The British luxury goods company said Wednesday that pre-tax profits declined from 154.7 million pounds ($192.2 million) to ...

By Matthew Heller • Nov. 10, 2016

Wendy’s Third-Quarter Profit Soars to $49M

Wendy’s reported a sharp increase in profit as higher franchise fees and strong same-store sales offset the loss of revenue from stores it has sold to franchisees.For the third quarter, the fast-food chain’s net income soared to $49 million, or 18 cents a share, from $7.6 million, or 3 cents a sh...

By Matthew Heller • Nov. 9, 2016

IFF Profit Falls 4% Amid ‘Challenging Conditions’

International Flavors & Fragrances’ shares fell nearly 4% on Tuesday after the company reported disappointing third-quarter results and cut its profit projection for the year.IFF’s third-quarter profit fell 16% to $89.8 million, or $1.12 a share, and, on an adjusted basis, dropped to $1.34 a ...

By Matthew Heller • Nov. 8, 2016