Mr. Gil Manzon

GLG News by Mr. Gil Manzon, Associate Professor

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Is Western Union Market Share Taking Market Share from Competitors?

April 24, 2008

Analysis of:Western Union 1Q profit rises 7 percent on international | biz.yahoo.com

I think the information presented in the article is consistent with Western Union picking up market share from competitors. Despite flat U.S. revenues over 05-07 period and likely near flat revenues from the U.S. in Q108 in part attributable to the Mexican results, Western Union has gained significant international market share over the 05-07 period and, with Q108 gains coming from China and India, this trend appears to be continuing (international revenues up 9% relative to total in 05-07 period and 43% in absolute terms). Absent a significant shift in the size of the market for money transfers, these gains would have come at the expense of competitors.

FIN 48: What it does and what it will do

February 12, 2007

Analysis of:FIN 48: Accounting for Uncertain Tax Benefits | www.fasb.org

FIN 48 potentially throws firms' tax positions into sharp relief.  Relatively modest preemptive actions and changes in internal control can significantly blunt the extent to which firms are subject to undesired disclosure with respect to their tax positions.

If you make me account for it I won’t do it: Consideration of the change in pension accounting

October 16, 2006

Analysis of:FASB Statement 158 | www.fasb.org

What to be ready for given that publicly traded firms will have to adjust their balance sheets for underfunded / overfunded pension plans ending for years after 12/15/06?  Look into the footnotes of the 05 financial statements.  For some companies, the adjustment will be big and net equity on the balance sheet will be reduced commensurately (that said, the markets doing well will likely mitigate negative adjustments that would have been much larger in recent years). Also, look for companies to begin discussing changes in existing pension plans (just as they did with other post retirement benefits in the early 90s when the accounting for these liabilities was changed along similar lines to those for pensions).

What are you doing with my money?

October 16, 2006

Analysis of:Stock Buybacks at 'Unprecedented Level' | www.cfo.com

One of the critical issues you need to be clear on with stock buybacks is why is it happening.  The article suggests an attempt to increase EPS.  Maybe.  My first question would be what alternative uses for my money (shareholder talking) do you have? If you're not making me money near term, give me my money back (repurchase shares).

FIN 48: New tax(ing) accounting: Overview and some likely effects

September 13, 2006

Analysis of:FASB Interpretation Number 48 | www.fasb.org

Overview

FIN 48 provides guidance for tax reporting for firm years starting after 12/15/06. It will result in the deferred recognition of tax benefits associated with tax positions that are viewed as aggressive (not “more likely than not” to be sustained or sustained at amounts sought following (presumed) review by tax authorities).

FIN 48 specifies a two-step process for evaluating tax positions for recognition and measurement. First, firms must determine whether it is more likely than not that a given tax position will be sustained upon examination. Second, for those tax positions determined to be more likely than not to be sustained, firms must estimate the amount of the tax benefit that is more than 50% likely to be realized. A liability has to be recorded for tax positions that are not viewed as sufficiently likely to be sustained so as to be recognized and those positions are that are not expected to be sustained at the levels filed for tax purposes. As well, a table must be prepared and reported in the footnotes to the financial statements summarizing the aggregate value of “unrecognized tax benefits.”

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