Hi,
Recently I listened to Men's Wearhouse 3Q 2014 earnings call. On the call, mgmt. noted that they made two writedowns: $50mm related to the inventory of the recently acquired Jos A Bank, and $10mm to MW's tuxedo inventory.
Mgmt noted that the $50mm writedown would not hit PNL, due to "complexities from purchase price accounting adjustments", while the $10mm will hit PNL.
Can someone please explain how this works?
Thank you,
Wes
Recently I listened to Men's Wearhouse 3Q 2014 earnings call. On the call, mgmt. noted that they made two writedowns: $50mm related to the inventory of the recently acquired Jos A Bank, and $10mm to MW's tuxedo inventory.
Mgmt noted that the $50mm writedown would not hit PNL, due to "complexities from purchase price accounting adjustments", while the $10mm will hit PNL.
Can someone please explain how this works?
Thank you,
Wes