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Enron Mail |
I'm adding my two cents. Here's 3, but not 4. Few things.
1) I considered that everything was "material." That reasonable? 2) Dylan, I struggled with the ban on preservatives, but ultimately decided it was unusual, not extraordinary, since the book sez that any write down of inventory is unusual, as opposed to extra. But a case for extra can still, be made I think. 3) I did not include the 1994 litigation expense associated with the ban, since it seems to me that it's merely an expense that they would have taken in 1994, as opposed to a "potential litigation outcome" that they'd make an allowance for---I could be wrong, though. 4) Finally, I assumed that the depreciation-related gain was already included in the 1995 "income from continuing operations" number, and consequently included it as a footnote on my spreadsheet, rather than make it an explicit line item in the income statement. I'll look at Kim's #4 and if I have any comments, I'll add them to hers and circulate. Best, Jeff Kimberly Kupiecki <kkupiecki@arpartners.com< 11/18/2000 06:54 PM To: dwindham@uclink4.berkeley.edu cc: jjackson@haas.berkeley.edu, jdasovic@enron.com, jcjcal02@aol.com, christine.piesco@oracle.com Subject: Agro - Q3,4 Questions 1. Litigation - how should we account for the 1994 bill of 500,000 in 1994 - I assume this was not accounted for in the 1994 income statement - we could include a note on pro forma numbers for the 1994 statement or we could just include this cost in 1995 - I am including it in the 1995 recalculated income statement, but I don't think this is totally accurate. Thoughts anyone? 2. In the text, page 354, Other gains or losses from the sale or abandonment of PP&E used in a business is not supposed to be reported under extraordinary items. This means the two sites Agro sold for $750,000 (after tax gain) should not be counted under extraordinary items. In this case - we could 1) assume this is accounted for already in the 9.5 million number given to us or 2) add it in after "income from continuing operations" and before "discontinued operations." I went with option 2. Let me know if you have any issues with this treatment. 3. Are we supposed to do anything with the 30,411,380 of retained earnings? I did not include pay out of dividends in the income statement. Cheers, - Agro.doc - Agro.xls Kimberly Kupiecki Director A&R Partners kkupiecki@arpartners.com (650) 762 2800 main (650) 762 2825 direct fax (650) 762 2801
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