Tag Archives: common stock

What happens from an accounting standpoint when FNB Bancorp issues a stock dividend?

FNB Bancorp recently declared a stock dividend, according to a recent news release[1]: FNB Bancorp (OTCQB: FNBG), the holding company for First National Bank of Northern California, announced that its Board of Directors has declared a stock dividend of approximately 210,709 shares, payable at the rate of one share of Common Stock for every twenty (20) shares of […]

Continue reading

What does Kohl’s 2015 Form 10-K communicate about its stockholders’ equity?

Kohl’s Corporation (KSS) operates department stores in 49 states in the U.S. and has annual sales in excess of $18 billion. Its fiscal year ends on the Saturday closest to January 31 each year. Kohl’s has several line items comprising its stockholders’ equity.  See the excerpts to follow from Kohl’s 2015 Form 10-K: its Consolidated […]

Continue reading

How does Birchbox report its issuance of $50 million in equity?

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 reading

How would Crocs account for the conversion of its preferred stock into common stock?

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 reading

What is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?

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 reading

How would Crocs recognize the preferred stock issued to Blackstone Group?

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 reading

What is the balance sheet impact of Crocs’ repurchase of its own shares of stock?

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. Crocs plans to use the $200 million plus another $150 million of cash it already has on hand to repurchase its own common shares during the first […]

Continue reading

How does a stock buyback impact AutoZone’s balance sheet?

In December 2013, the Board of Directors of AutoZone Inc., an auto parts retailer, approved an increase of $750 million in its stock buyback program.  Since 1998, AutoZone’s board of directors has approved $14.2 billion in buybacks. Questions On the date of the announcement that AutoZone has authorized the increase in its share buyback program, […]

Continue reading

What does the two-for-one stock split at Tractor Supply mean for shareholders?

The Tractor Supply Company (TSCO) declared a two-for-one stock split of its common stock on August 29, 2013. The following news release appeared in PR Newswire in 2013: “BRENTWOOD, Tenn., Aug. 29, 2013 /PRNewswire/ — Tractor Supply Company (NASDAQ: TSCO), the largest retail farm and ranch store chain in the United States, today announced that its Board of Directors […]

Continue reading

How many shares of stock would be issued in LinkedIn’s $1 billion stock offering?

In September 2013, LinkedIn (LNKD) filed paperwork with the SEC for a $1 billion stock offering of its Class A common stock. LinkedIn reported that it would be using the proceeds from the stock issuance for working capital, expansion of product and sales organizations, and capital expenditures. On August 30, 2013 (a few days before […]

Continue reading