Wednesday, August 14, 2019

Tony Perkins' Astounding Financial Acumen

Tony Perkins is a financial idiot or, he believes his supporters to be financial idiots or, … both.
Tony Perkins
via FoxNews/YouTube
If one believes Hate Group Leader Tony Perkins (Family Research Council), Gillette lost $8 billion because because the company aired a commercial of a trans teen learning to shave. PuhLEEZE!.

I will get back to Mr. Perkins but first let us take a voyage into reality. Don't go to sleep on me. It's really not all that complicated. You are smarter than Tony Perkins.

Let us start with the proposition that company A buys company B for the grand sum of $100.00. Company B has an actual net worth of $75.00. To account for the $25.00 difference company A will show, on its books, an asset of $25.00 described as “Goodwill.”

Goodwill is an intangible asset and, over time, company A will amortize the asset. In our case company A, might take a deduction from earnings of $5.00 every year for five years. Among other things, this reduces A's tax liability.

Sometimes a company decides that it overpaid for an acquisition and it will accelerate (or adjust) the amount of goodwill on the books with a one-time charge against earnings in order to more accurately state its net worth and to create a tax loss.

In 2005 Procter & Gamble purchased Gillette for $57 billion. The purchase value of a company is usually based primarily on a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization). The acquired company's tangible net worth is of far less relevance. In this case P&G booked a substantial amount of goodwill (the amount they paid that exceeded the company's net worth).

Since 2005 a number of competitors have entered the market offering cheaper blades. Furthermore, men shave less. It is now perfectly acceptable for an executive to come to work with a three-day beard. In the past five years, it is estimated that the U.S. men’s market for shaving products has shrunk by over 11%. This led P&G to take a one-time markdown of $8 billion. Keep in mind that this simply reduces the carrying value of an intangible asset.

Analysts were expecting this to occur. As one analyst put it: “the charge is just an accounting expression of what we knew was happening to the business.”

If you do not understand the above it is not your fault. It is my fault for not explaining it properly.
Enter Tony Perkins with an anti-LGBTQ agenda
Perkins' sophistication is expressed as Gillette’s Political Correctness Backfires.
“Your stupid boycotts will never make a dent in a company like P&G,” one liberal scoffed back in January. Turns out, they didn’t just make a dent.

After a string of male-bashing, transgender shaving ads, the parent company of Gillette got nicked so badly, market experts wonder if the brand will survive.

Gillette’s CEO insists the radical activism was “worth the price.” Let’s hope so—because so far, that price is a whopping $8 billion.
Uh, no. Perkins is intentionally confusing causation with correlation. The rooster crows; the sun rises; the rooster causes the sun to rise. There is no connection whatsoever between Gillette's earnings for the year ended June 30 and the write-down by P&G. Gillette did not lose $8 billion.

P&G has been proactive by introducing a line of less expensive blades. They are also promoting a new product for men with sensitive skin. I tried Harry's one time. Two shaves and I was back to Gillette. Mr. Perkins fails to identify a “market expert” who “wonders if the brand will survive.” Again, this is accounting, not an actual loss. Apparently Tony Perkins does not understand the difference.

To claim that an ad featuring a young trans man is “male-bashing” is simply idiotic. Furthermore, there is nothing radical in being inclusive. There is no rational reason for the ad to have upset anyone while it appeals to people who are sensitive to LGBTQ issues. You can be certain that P&G ran focus groups and invested countless dollars in research before it produced and aired the commercial.

Among Perkins' gems is this:
Now the company can’t even acknowledge what a man actually is.
And this:
On Father’s Day, the company finally went too far, launching an ad about a dad teaching his “son”—who happens to be a biological girl—how to shave. That did it.
That did what exactly?
Conservative groups like One Million Moms activated, warning customers that unless they wanted their money to support an ideology pediatricians call “child abuse,” they’d better find another razor.

Based on this quarter’s report, an astonishing number of Americans did.
One Million Moms is just a Facebook page for another anti-LGBT hate group, American Family Association. The pediatrician calling gender-affirmation “child abuse” is Michelle Cretella, executive director of yet another anti-LGBT hate group, Gainesville, FL based American College of Pediatricians. Cretella is not even a pediatrician any longer and is simply a defender of the Catholic Church's idiotic teaching that transgender people do not really exist.

Again, the $8 billion charge has absolutely nothing to do with Gillette's quarterly sales and gross profits.
Some shareholders might buy that, but most shoppers agree—it’s time for companies like Gillette to look in the mirror. Political activism never pays. Just look at the fanatics at Target and Nike, whose stocks took a nose-dive for offending Americans’ basic sense of decency and patriotism.
Again, the stock values of Target and Nike have absolutely no connection to right-wing religious opprobrium. Boycotts are supposed to alter behavior. AFA accomplished nothing with its boycott of Target. The company's earnings were never affected by a silly boycott. I have not followed events at Nike.

Perkins' reference to decency and patriotism deserves only one response: Fuck you!

Decency is defined mostly by how we treat others. Perkins is a hate group leader. Patriotism? When did bigotry become patriotic? Who made Perkins the arbiter of patriotism? Respect for diversity is an American tradition. I am sorry if the existence of transgender people conflicts with a passage in Genesis. Life in general does not conform to scripture.

The Golden Rule is probably based on a passage in Matthew 7:12:
Therefore all things whatsoever ye would that men should do to you: do ye even so to them: for this is the law and the prophets. … shall also do to them; for this is the law and the prophets.
Truth be told, the self-righteous Tony Perkins isn't much of a Christian either. He is a kiss-up to the most unprincipled president that this country has ever had to endure.

Tony Perkins is a professional bigot. It is how he earns a living. Shame on him.

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