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Question for Sandhusker

hypocritexposer

Well-known member
Read an article today in a Canadian newspaper on the history of GM.

It stated that in 2007, GM had a loss of $38.7 Billion, including a $39 Billion 3rd quarter charge for unused tax credits.

I would take that as not taking advantage of tax credits that would have decreased their losses, is that correct?
 

Sandhusker

Well-known member
hypocritexposer said:
Read an article today in a Canadian newspaper on the history of GM.

It stated that in 2007, GM had a loss of $38.7 Billion, including a $39 Billion 3rd quarter charge for unused tax credits.

I would take that as not taking advantage of tax credits that would have decreased their losses, is that correct?

I'm not really sure. If they took a charge, they already had them accounted for on the books. I'm guessing that maybe they couldn't take the credits because they didn't have an offsetting liability?
 

hypocritexposer

Well-known member
The only offsetting liability would be "goodwill" or increase in pension liability, wouldn't it?

How much do companies have to actually finance the true value of pension/retirement liabilities?
 

Sandhusker

Well-known member
hypocritexposer said:
The only offsetting liability would be "goodwill" or increase in pension liability, wouldn't it?

How much do companies have to actually finance the true value of pension/retirement liabilities?

Hard to say with a company that large and complex - all over my head.

It depends on what they've committed to. If you look at GM, I'd say that they didn't have enough to finance all those liabilities.
 
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