Pfizer, headquartered in New York City, is one of the world’s largest pharmaceutical companies (as measured by revenues.) It holds patents on many of the drugs it manufactures. One of these patents gives Pfizer the exclusive right to market the painkiller, Celebrex. (Celebrex generated $1.9 billion in revenue in 2013.) In a recent patent ruling, […]
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What are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?
May 7, 2014 
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Tesla Motors, Inc., is an American company that designs, manufactures, and sells electric cars and components. It is publicly traded on the NASDAQ under the symbol TSLA. Tesla has plans to build a $4 to $5 billion battery production plant beginning in 2017. To help to pay for the new manufacturing facility, Tesla is issuing […]
Continue readingWhat is the balance sheet impact of the $400 million Netflix just borrowed?
April 28, 2014 0 Comments
In February 2014, Netflix took out a $400 million loan. Netflix is using these funds to help to create original programming, such as its hit series “House of Cards,” and to expand to Europe. Netflix is a publicly-held company trading on NASDAQ under the symbol NFLX. On March 10, 2014, Netflix common stock was selling […]
Continue readingHow does Birchbox report its issuance of $50 million in equity?
April 21, 2014 0 Comments
Birchbox, Inc., is privately-held. It was founded in 2010 by Hayley Barna and Katia Beauchamp and has its headquarters in New York City. Birchbox offers a subscription service that delivers samples of beauty products to its subscribers. Subscribers can also purchase full-size versions of the products on Birchbox’s website. Birchbox currently has more than 400,000 […]
Continue readingWhen does Carnival Cruise Lines recognize revenues and expenses for its cruises?
April 7, 2014 0 Comments
Carnival Cruise Lines had a record-breaking month in January 2014 in terms of number of net bookings (new bookings less cancellations.) During January 2014, Carnival booked more than 565,000 (net) guests for cruises to be taken over the next two years. Part of the reason that Carnival may be seeing increased bookings is its new […]
Continue readingHow would Crocs account for the conversion of its preferred stock into common stock?
April 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. In three years, the preferred stock shares owned by Blackstone Group will convert into common shares if the Crocs common stock market price rises to a certain […]
Continue readingWhat is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?
April 2, 2014 0 Comments
King Digital Entertainment (NYSE: KING), the maker of the Candy Crush Saga app, had its initial public offering (IPO) the week of March 24th, 2014. King’s stock was priced at $22.50 per share for the IPO; its par value is $0.000197 per share. The IPO raised about $500 million for King. Assume that approximately 2,300,000 […]
Continue reading10-K Minute: Target, Data Breach, and Contingent Liabilities
March 27, 2014 0 Comments
Background In the fourth quarter of 2013, hackers broke into Target Corporation’s system and stole the names and credit card information for up to 70 million customers. This data breach is among the largest data breaches in U.S. history and lawsuits against Target Corporation are being filed by several parties including customers, credit card companies, […]
Continue readingWhat is the impact on cash from Sony selling its old Tokyo headquarters?
March 24, 2014 0 Comments
In March 2014, Sony signed a deal to sell its old Tokyo headquarters and a nearby building for $156 million. This building served as Sony’s headquarters from 1990 to 2007 and is thought of as the birthplace of the company, where Sony founders worked on the Walkman and Trinitron TV. This building sale follows the […]
Continue readingWill Uber capitalize or expense the renovations to its headquarters in San Francisco?
March 17, 2014 0 Comments
Uber, is a startup with a mobile app for connecting passengers with drivers of vehicles for hire. Uber arranges rides in several North American cities (for example, New York, Chicago, and San Francisco) and has recently expanded to include countries outside of North America (for example, United Kingdom and France). Recently, it was reported that […]
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