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Business, Economics, and Taxes: Eat Cereal for Dinner

Is this a compartmentalization thing? Like Division A could possible get sued into oblivion, so you separate Division B and Division C so their assets are off limits.
 
RaceBoarder said:
Is this a compartmentalization thing? Like Division A could possible get sued into oblivion, so you separate Division B and Division C so their assets are off limits.
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It's a more obfuscated way of spinning off liabilities, IMHO

So to answer your question, yes.
 
aparch said:
DuPont announces they're breaking themselves up into three companies: Electronics, Water, and Chemical/everything else. Follows GE and others recently.
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So let me get this straight. They bought and merged with Dow (2015-2017), spun off the plastics/materials science division into a new entity that retained the Dow Chemical name and the agribusiness division into a new entity called Corteva (both in 2019), reverted the specialty products division to the DuPont name, and now they're going to split that into 3 additional new, public entities.

So who's getting really, really rich after all this presumed finagling of business & tax law?
 
FadeToBlack&Gold said:
So let me get this straight. They bought and merged with Dow (2015-2017), spun off the plastics/materials science division into a new entity that retained the Dow Chemical name and the agribusiness division into a new entity called Corteva (both in 2019), reverted the specialty products division to the DuPont name, and now they're going to split that into 3 additional new, public entities.

So who's getting really, really rich after all this presumed finagling of business & tax law?
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It's almost like cleaving off fatal liabilities is easier when you do it bit by bit, chunk by chunk, until you're only left with the liabilities and all the assets have been safely spun off.
 
dxmnkd316 said:
It's almost like cleaving off fatal liabilities is easier when you do it bit by bit, chunk by chunk, until you're only left with the liabilities and all the assets have been safely spun off.
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And then that piece holding all the liabilities declares bankruptcy, and voila!!!
 
Kepler said:
The legal way to welch.
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Yes and no. Companies have recently been told 'no' when trying to spin it off or declare bankruptcy.

This is the first time I've seen getting rid of it by long division, lacking a better term. I've never seen multistep, multiyear spin offs to leave the liability behind.
 
dxmnkd316 said:
Yes and no. Companies have recently been told 'no' when trying to spin it off or declare bankruptcy.

This is the first time I've seen getting rid of it by long division, lacking a better term. I've never seen multistep, multiyear spin offs to leave the liability behind.
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Oh it's been happening for years it's just not usually as public.
 
I’ve been trying to figure this one out. Went to the store last night to grab some condiments for a get together this weekend. Figured I would just grab the smallest bottles of each. Get to the ketchup and Heinz had 14, 20, and 32oz next to eachother. The 32oz was on sale for $3.50. The 20oz was priced regularly for $3.65. The 14oz was also priced regularly, but for $3.99.

I kept staring at them like Mr. Burns deciding between ketchup and catsup. Surely the 14oz had to be organic, or simply, or something different, but nope, it was regular Heinz like the other two. The smaller bottles are almost always more expensive per ounce, but never more expensive in total. And then because the 32oz was on sale I ended up getting more than double what I wanted for cheaper.
 
Spartanforlife4 said:
I’ve been trying to figure this one out. Went to the store last night to grab some condiments for a get together this weekend. Figured I would just grab the smallest bottles of each. Get to the ketchup and Heinz had 14, 20, and 32oz next to eachother. The 32oz was on sale for $3.50. The 20oz was priced regularly for $3.65. The 14oz was also priced regularly, but for $3.99.

I kept staring at them like Mr. Burns deciding between ketchup and catsup. Surely the 14oz had to be organic, or simply, or something different, but nope, it was regular Heinz like the other two. The smaller bottles are almost always more expensive per ounce, but never more expensive in total. And then because the 32oz was on sale I ended up getting more than double what I wanted for cheaper.
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Sales get complicated in this respect. You can have a manufacturer mandated sale (Heinz says that product X will cost $z.zz from May 24-31) or stores doing their own markdowns within the Minimum Advertised Price (MAP) guidelines set by a manufacturer. In the latter case, "mega deals" are designed to bring people in the door (and fill their carts with other, normal priced items). They are sold at cost or even less, since it's know that although the store is losing $0.15 on each bottle of ketchup they move, most customers will have $X.xx amount of profit in the rest of their cart that negates the loss of the ketchup.

Being the #1 "grilling" holiday, stores know that people will know they need to buy condiments, so using those to catch someone's eye will get them in the store.
 
RaceBoarder said:
Sales get complicated in this respect. You can have a manufacturer mandated sale (Heinz says that product X will cost $z.zz from May 24-31) or stores doing their own markdowns within the Minimum Advertised Price (MAP) guidelines set by a manufacturer. In the latter case, "mega deals" are designed to bring people in the door (and fill their carts with other, normal priced items). They are sold at cost or even less, since it's know that although the store is losing $0.15 on each bottle of ketchup they move, most customers will have $X.xx amount of profit in the rest of their cart that negates the loss of the ketchup.

Being the #1 "grilling" holiday, stores know that people will know they need to buy condiments, so using those to catch someone's eye will get them in the store.
Click to expand...

I get the sale price being cheaper, that one makes sense, but the 14oz being more expensive than the 20oz, both at their normal price, I just can’t comprehend that scaling. Unless what you’re describing applies to normal pricing too.
 
Looking forward to Pride Month, sponsored by the SCP Foundation, Abstergo, Weyland-Utani, the Umbrella Corporation, and Mom's Friendly Robot Company.
 
An Ohio billionaire will attempt prove deep sea submersibles are safer after Ocean Gate by taking another one down to the ruins of the Titanic.

Submarine memes are back on the menu.
 
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