OUCH! MS has to write off >$6bn in Q4 to post a Q4 loss

sales2099

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sales2099 on 03 July 2012

MS profits 5 billion every 3 months. No biggie. Nice tax savings though :P

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Train wreck on 03 July 2012

Im trying to find in the report from microsoft and through media reports the tax savings and i dont see anything. I guess its people blowing more hot air.

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Train wreck on 03 July 2012

kowenicki said:

Train wreck said:
Im trying to find in the report from microsoft and through media reports the tax savings and i dont see anything. I guess its people blowing more hot air.

it isnt a reason to do it, its a consequence... so no, it isnt hot air, it is just patently obvious to anyone with any knowledge whatsoever.

Its a non cash charge aganist this quarters earnings, there is no tax implications anywhere, so no its not patently obvious. To me, its people who dont know what they are talking about (as usual)

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Millenium on 03 July 2012

kowenicki said:
MS share price is....

up.

No real suprise there, Sony and Microsoft have both been bouncing up and down at 13-14 and 29-31 respectively for a while now.

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M.U.G.E.N on 03 July 2012

Train wreck said:

kowenicki said:

Train wreck said:
Im trying to find in the report from microsoft and through media reports the tax savings and i dont see anything. I guess its people blowing more hot air.

it isnt a reason to do it, its a consequence... so no, it isnt hot air, it is just patently obvious to anyone with any knowledge whatsoever.

Its a non cash charge aganist this quarters earnings, there is no tax implications anywhere, so no its not patently obvious. To me, its people who dont know what they are talking about (as usual)

Writeoffs can be used as itemized deductions in filing for income taxes at the end of the year. This much I can assure you, at least it is the case under US GAAP.

Kowen is trying to sugercoat the outcome a bit :P but he is not wrong on that matter. How big of an impact it has on the taxes remains to be seen as I explained above (taking tax brackets into consideration) but overall this is not a good outcome.

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Carl on 03 July 2012

kowenicki said:

Carl2291 said:
Thats a gigantic loss. Ouchie.

not if you understand accounting it isnt...

Did MS lose 6 Billion?

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man-bear-pig on 03 July 2012

kowenicki said:

Carl2291 said:

kowenicki said:

Carl2291 said:
Thats a gigantic loss. Ouchie.

not if you understand accounting it isnt...

Did MS lose 6 Billion?

Effectively yes.... But this was 5 years ago when they spent it. This is a balance sheet write down. They didn't lose 6bnn in cash this quarter. Sorry to upset everyone, but they are still raking it in. Can't wait for the hysterical misunderstanding and over reaction when the financials come out in a few weeks.

Yeah, same. That will be hilarious!

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Millenium on 03 July 2012

Their loss for the quarter should show up as about ~1B when taking into account the profits they made for the Q, so I don't think anyone will go crazy over it.. Hopefully.