There’s no way they actually execute on $700-900 million in layoffs this quarter, so why put it on the books already?
8 replies (most recent on top)
Get a degree in Finance and understand GAAP
Accounting rules require companies to book charges once they are both probable and estimable. Having the reductions in the approved business plan usually means those criteria are met
Expect corporate tax cuts with trump. Saves more to take the hit now
Building Relationships" PMP success story is legit - bonuses and promo for knowing who to push - tons of ‘em
lets see if that works well with “reset in culture”
Accrual accounting standards allow the charges to be booked in advance as long as they are a commitment. Mgmt is bracing for low earnings in 24 and 25 and taking the charges now.
@bke+1vQgz1Ov are you one of the "Building Relationships" PMP success stories people love to comment about? Please read the release again. The Fourth-quarter 2024 charges reflect job cuts, asset sales, writedowns.
https://www.reuters.com/business/energy/chevron-take-up-15-billion-fourth-quarter-charges-2024-12-05/
Severance pay and relocations will account for up to $900 million of the after-tax charges, and asset impairments and sales of properties will add up to $600 million, the company said.
The topic of write downs in the press release was for 2025, not 2024. So over the course of 2025, the costs will be taken in Q4 2025.
Everything at the right time and for a reason.