hotcarl Posted October 5, 2011 Share Posted October 5, 2011 According to Bloomberg Businessweek back in May, Ford has been holding on to Billions of dollars for hard times. They apparently have this year to show it as a profit or risk being taxed on it. It is called a valuation allowance and experts expect Ford to show anywhere from $10-13B of it as profit. Has Ford been hiding this money from us? Will we get screwed out of it? Quote Link to comment Share on other sites More sharing options...
Captain723 Posted October 5, 2011 Share Posted October 5, 2011 According to Bloomberg Businessweek back in May, Ford has been holding on to Billions of dollars for hard times. They apparently have this year to show it as a profit or risk being taxed on it. It is called a valuation allowance and experts expect Ford to show anywhere from $10-13B of it as profit. Has Ford been hiding this money from us? Will we get screwed out of it? If it is based on North American profits, then hell yeah it will be counted, my guess they are talking about some sort of interest! Quote Link to comment Share on other sites More sharing options...
Grandmaster B Posted October 5, 2011 Share Posted October 5, 2011 If it is based on North American profits, then hell yeah it will be counted, my guess they are talking about some sort of interest! NO. You will not see a penny of the 13 billion Valuation Allowance that Ford has to take off of their books. Ford will claim that as a "special item" (according to Bloomberg News). If you look at the new profit sharing agreement it say's that special items are EXCLUDED from the profit sharing formula! They pulled a fast one! Quote Link to comment Share on other sites More sharing options...
fordd Posted October 5, 2011 Share Posted October 5, 2011 NO. You will not see a penny of the 13 billion Valuation Allowance that Ford has to take off of their books. Ford will claim that as a "special item" (according to Bloomberg News). If you look at the new profit sharing agreement it say's that special items are EXCLUDED from the profit sharing formula! They pulled a fast one! I think that the special items part can also work in our favor. When Ford has to pay money out for some things, these are special one time charges and can sometimes get quite large. This will not be deducted from the profits that our formula is based on. So it works both ways. 1 Quote Link to comment Share on other sites More sharing options...
hotcarl Posted October 5, 2011 Author Share Posted October 5, 2011 I think that the special items part can also work in our favor. When Ford has to pay money out for some things, these are special one time charges and can sometimes get quite large. This will not be deducted from the profits that our formula is based on. So it works both ways. The agreement hasn't been ratified yet. They are trying to pull a fast one. Quote Link to comment Share on other sites More sharing options...
Twincam Harley Posted October 5, 2011 Share Posted October 5, 2011 (edited) NO. You will not see a penny of the 13 billion Valuation Allowance that Ford has to take off of their books. Ford will claim that as a "special item" (according to Bloomberg News). If you look at the new profit sharing agreement it say's that special items are EXCLUDED from the profit sharing formula! They pulled a fast one! You have misinterpreted the language. Yes, special items are excluded, meaning we get profit sharing on the total North American profit without them being able to adjust for special items. From the highlights: The proposed profit share definition excludes so called “special items” as well as net interest expense. Between 2003 and 2010, “special items” reduced the profit share fund by approximately $17 billion, and net interest expense reduced the UAW profit share fund by $4.5 billion. • The new plan eliminates technicalities that could have deprived members of profit sharing in profitable years. These technicalities could have eliminated all payouts in 2010 if it had not been for the strong intervention of the UAW. This said, we won't see any profit sharing from adjustments they can make to their books. Edited October 5, 2011 by Twincam Harley Quote Link to comment Share on other sites More sharing options...
Grandmaster B Posted October 5, 2011 Share Posted October 5, 2011 You have misinterpreted the language. Yes, special items are excluded, meaning we get profit sharing on the total North American profit without them being able to adjust for special items. From the highlights: The proposed profit share definition excludes so called “special items” as well as net interest expense. Between 2003 and 2010, “special items” reduced the profit share fund by approximately $17 billion, and net interest expense reduced the UAW profit share fund by $4.5 billion. • The new plan eliminates technicalities that could have deprived members of profit sharing in profitable years. These technicalities could have eliminated all payouts in 2010 if it had not been for the strong intervention of the UAW. This said, we won't see any profit sharing from adjustments they can make to their books. Oh...OK! Um... were going to be deprived of a $12,000 profit sharing check for this years profits according to the new formula. But whatever! Quote Link to comment Share on other sites More sharing options...
Twincam Harley Posted October 5, 2011 Share Posted October 5, 2011 Oh...OK! Um... were going to be deprived of a $12,000 profit sharing check for this years profits according to the new formula. But whatever! No, not the case but I don't know how to be any clearer. We won't be paid PS on a bookkeeping entry. Has nothing to do with a formula. Quote Link to comment Share on other sites More sharing options...
hotcarl Posted October 6, 2011 Author Share Posted October 6, 2011 I'd be willing to bet that the executives don't get excluded from these special items and bookkeeping changes when their "bone-us-es" are handed out. Quote Link to comment Share on other sites More sharing options...
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