S162
"There was one bullet in the gun and it hit its target. "
I think that statement is the most accurate way to describe this.
Actually, you are both wrong. The CC will report Q4 numbers. None of this was done in Q4, so COH reported will not include this amount.Originally Posted by homer
Regardless, I feel that this was a do or die option. I don't like it at all, but it was much better than the alternative (BK). I don't think the banks wanted to extend anything without being certain that Sirius could pay off the December debt, because it would have put them back a little bit further in line. Sirius would have had to put the BK message in the Coference call, because it would have been required by law. This would have sparked a short frenzy that would have killed us all. As much as I hate the deal, I think it was the only option.
Sl62..
Quick question, i just read what Brandon wrote in that article. What is he talking about 6 billion in tax credits ?? whats that about ?
omega: When you have an opperating loss for a business, you can take a tax credit. These tax credits are limited on a per-year basis, but any credit that you do not use can roll over. Basically, what Brandon is saying is that because of the heavy losses for the last many years, they have built up quite a tax credit that they can use in coming years when they start to generate a profit.
It is the same in your personal taxes. If you sell a stock for a loss, you can write a portion of that off. The amount you can write off is limited to something like 3,000 per year, depending on your income. If you sold Sirius in December 2008 for a massive loss (lets say 15,000), then you roll over the difference (12000) and can use that in 2009. Use 3000 in 2009, and you have 9000 left... and so on and so forth. Same concept. It cannot ALL be used at one time, but it will save the company a significant amount of money over the next many years.