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Post by supor450 on Sept 11, 2012 18:40:39 GMT -5
I'm amazed by all the wasted time/energy invested in fruitlessly divining tea leaves.
Here's a suggestion for something more productive that might harness our collective resources:
We know that business units representing significant portion of current entity will be sold. How much of the debt load, pension/OPEB liabilities, and other obligations will be transferred away with these units?
Are NOLs assigned to each sold unit on pro rata basis?
Answers to these questions will help us to construct for the emergent entity a pro forma:
1. Revenues 2. Guestimates of gross margins 3. Operating overhead 4. Operating income 3. Debt load 4. Pension and net OPEB 5. Net income
If we can even ballpark these figures over the next 4 quarters, we'll have much greater clarity into the New EK's long term future.
Bear in mind: asset sales, including the IP auction, are only half the investment thesis. Operations is key, too.
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Post by proforkodak on Sept 11, 2012 19:17:52 GMT -5
1)NONE of the long term liabilities are affected by the selling of divisions. 2)I ALREADY provided a breakdown of Kodak going forward kodak.boards.net/index.cgi?board=general&action=display&thread=54ALL of your questions have ALREADY been answered, in a VALUATION of Kodak if the entire company was sold in pieces. My valuation for the remaining pieces( Graphics, digital printing) does NOT take into account the CORPORATE costs. The Graphics division would be sold to different potential buyers than the digital printing division.
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Post by supor450 on Sept 11, 2012 20:25:32 GMT -5
"1)NONE of the long term liabilities are affected by the selling of divisions"
Debt/pension obligations are corporate level liabilities---right.
Would be different if operating units were legally separate subsidiaries, rather than divisions which are not separate from corporate entity. Makes it easier to sell the divisional businesses.
But, how much of the announced $330MM cost savings from 1000 headcount cut will accrue to the reorg entity (versus to the sold units)?
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Post by proforkodak on Sept 11, 2012 21:36:35 GMT -5
>>>"Debt/pension obligations are corporate level liabilities---right."<<
Correct!
>>>"Would be different if operating units were legally separate subsidiaries, rather than divisions which are not separate from corporate entity. Makes it easier to sell the divisional businesses."<<<
ALL businesses are held by separate corporate subsidiaries.
The separate business units are combined together into divisions ONLY for SEC reporting purposes. Moving subsidiaries from one division to another does NOT change the LEGAL status of the businesses as distinct from the other companies in the division.
>>>"But, how much of the announced $330MM cost savings from 1000 headcount cut will accrue to the reorg entity (versus to the sold units)?"<<<
The $330 million number was from ALL the headcount this year, NOT just from the most recent 1,000 announced.
I estimate that ALL of the most recent 1,000 are almost all from Corporate.
So, the appx. $100 million annual saving to the corporate expenses.... with MORE cuts to come after the announced divisions sales close next year.
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