Tag Archives: long-term liabilities

How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?

In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]

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How is Tesla’s balance sheet impacted by its issuance of common stock and convertible five-year notes?

Tesla, Inc. (NASDAQ: TSLA) is ramping up to begin production of the Tesla Model 3. The Model 3 is an all-electric four-door compact luxury sedan that will have a range of at least 215 miles. It will be the most affordable of the Tesla models, starting at $35,000 for the base model. As of mid-March […]

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How will Walgreen’s leases impact its financial position under the new FASB lease standard?

Under the current accounting treatment for leases, if a lease meets certain characteristics, it is classified as an operating lease and only the lease payments are shown in the financial statements in the income statement; there is no liability recognized for the lease obligation. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU […]

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How does a convertible bond issued by Fiat Chrysler Automobile affect the company’s balance sheet?

Fiat Chrysler Automobiles (FCA) launched a $2.5 billion convertible bond issue in December 2014.  FCA will be using the funds generated from the bond issue to help to turn its Jeep, Maserati, and Alfa Romeo brands into global brands, competing directly against Volkswagen and BMW in the premium car market. The bond issue will mature […]

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What is the accounting impact of the issuance of Solar Bonds by SolarCity?

SolarCity is a U.S. company that designs, finances, and installs solar energy systems. These solar energy systems are installed at businesses, homes, non-profits, and other organizations. On October 15, 2014, SolarCity launched its first public offering of Solar Bonds. This public offering allows individuals to invest in SolarCity by purchasing bonds from SolarCity’s website. There […]

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What are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?

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 […]

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What is the balance sheet impact of the $400 million Netflix just borrowed?

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 […]

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