The University of Michigan issued $2 billion in bonds in March 2022. The proceeds from these bonds will be used to finance construction and renovation projects on the campus. $1.2 billion was issued as century bonds, which must be repaid in 100 years. This century bond issuance is the largest century issuance in the higher […]
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Tag Archives: long-term liabilities
How does Twitter’s issuance of notes due in 2027 impact its balance sheet and debt ratio?
January 24, 2020 
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During 2020, Twitter, Inc. (NYSE: TWTR) will be issuing (approximately) $600 million of unsecured notes that will be due in 2027. Assume that on the day immediately before the note issuance, Twitter has assets of $10,500 million and liabilities of $3,370 million. Questions Will the notes be classified as assets or liabilities on Twitter’s balance […]
Continue readingHow would Uber’s balance sheet be impacted by its $2 billion bond issuance?
January 11, 2019 2 Comments
Uber Technologies Inc. issued $2 billion of bonds in October 2018. The total bond issuance included $500 million of five-year bonds with a 7.5% coupon and $1.5 billion of eight-year bonds with an 8% coupon. This bond issuance is Uber’s first bond offering, but it has taken out loans with private investors totaling $2.65 billion […]
Continue readingHow does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?
May 16, 2017 2 Comments
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 […]
Continue readingHow is Tesla’s balance sheet impacted by its issuance of common stock and convertible five-year notes?
April 5, 2017 0 Comments
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 […]
Continue readingHow will Walgreen’s leases impact its financial position under the new FASB lease standard?
November 22, 2016 0 Comments
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 […]
Continue readingHow does a convertible bond issued by Fiat Chrysler Automobile affect the company’s balance sheet?
January 23, 2015 0 Comments
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 […]
Continue readingWhat is the accounting impact of the issuance of Solar Bonds by SolarCity?
October 17, 2014 0 Comments
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 […]
Continue readingWhat are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?
May 7, 2014 0 Comments
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 […]
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