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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (1606)	11/29/2001 1:35:58 PM
From: Boca_PETE	Respond to of 10065

Wally: RE:("estimate restructuring costs for the next 12 months and post them as a one-off charge in the current quarter") JMHO. Seems like the FASB / SEC accounting prescription is reasonable since the losses actually occurred in 2001. Reporting them as incurred (expended) would distort future quarters with charges that relate to year 2001 loss. But one could guess that corporate managements also might want to get these costs behind them so that corporate profits for future periods look better in comparison. It is hard to argue that the costs are not an "Extraordinary Item" (hopefully a one-time event). P

To: Wally Mastroly who wrote (1606)	11/30/2001 8:46:43 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 10065

GDP Contraction Sharper Than Thought WASHINGTON (Reuters) - The U.S. economy shrank at a faster rate than first thought during the third quarter, contracting at the steepest pace in more than a decade as corporate profits tumbled for a fourth straight quarter, the Commerce Department reported on Friday. Gross domestic product (GDP), or total economic activity, decreased at a revised 1.1 percent rate -- nearly triple the 0.4 percent rate reported a month ago and worse than the 0.9 percent rate of contraction Wall street economists had forecast. It was the poorest quarterly GDP performance since economic output shrank 2 percent in the first quarter of 1991 amid the last recession. - Some detail: quote.bloomberg.com At the beginning of this week, the agency that officially dates U.S. business cycles confirmed the United States entered a recession in March. That is not yet reflected in GDP statistics that generally require two straight quarters of shrinking output to meet a commonly accepted definition of recession but private-sector analysts have no doubt that the economy will shrink again in the current fourth quarter. There were a few promising signs in the GDP report, including the fact that inventories were drawn down at a $60.1-billion rate during the third quarter, the sharpest for any quarter on record. That implies companies made significant progress in bleeding off bloated stocks of unsold goods. An overhang of such goods would hold up production gains once recession ends.