| Author | Message | ||
     Pogue_mahone |
good discussion here on page 2 http://www.sporttwin.com/index.php?/topic/19532-h- d-to-drop-buell-line-december-19-2009/ AND i question the buell patents etc.if hd is hurting so bad and it is going to be worse fast....sitting on a potential asset as opposed to some tax loss BS sounds stupid to me.if they need that much cash,they best be selling ANYTHING that can be sold and help save their butts. BUT we have already seen.....they have no idea what they are doing. what is the IMAGE and SOUND of an ICON imploding???? just watch HD in the months to come. | ||
| Pogue_mahone |
and the losses to now are staggering.i'd think raising cash is of more importance than a potential tax write off.the numbers are such HD could be dead by 2010. | ||
| Yachius |
Except that if they sit on it until their next fiscal year then they get the writeoff and they can still sell it. Talking about selling it now means they would have to pass on a writeoff that's worth over $100 million. In case you still don't quite grasp this concept, that means that the balance sheet at the end of this year has over $100 million subtracted from the red and the balance sheet next year if they sell it will have the sell price added to the black. Harley is making the Buell brand pay for itself twice with this strategy. When accountants for a huge corporation make a financial decision that doesn't make sense to you, you're missing something. | ||
| Tpoppa |
Yach, I agree with most of your post... Why not try to sell it now and stipulate in the contract that the sale is to take place on 1/1/10? | ||
| Yachius |
@Tpoppa: If they put the brand on the market then there hasn't been a physical loss yet. These are typical games that corps play in a legal gray area. By declaring the brand dead all the manufacturing and tooling are an immediate loss as well as the overhead from shutdown operations and the dealer incentives to clear inventory. Regarding my post above, I have no idea if they ever plan on selling. It's entirely possible that the writeoff is significantly larger than they could get in a direct sale. In any case the writeoff is just as good as cash as they won't have to pay that amount. |
