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After capital expenditures, interest and taxes that figure drops to about $400 million, although a buyer would very likely cut capital spending to increase the free cash flow.
"The bulls keep saying that the industry will be free-cash-flow positive very soon," Mr. Chanos said, referring to the cash remaining after capital expenditures, interest and taxes.
In the past, if a government persisted in borrowing heavily to cover its expenditures, interest rates would get higher and higher, and greater and greater inducements would have to be offered by the government to the lenders.
Similar(57)
If section 265(a)(2) subsequently ceases to apply (because, for example, the taxpayer ceases to hold any tax-exempt obligations), and the debt at such time continues to be allocated to an investment expenditure, interest on the debt that accrues after such time is subject to section 163 d).
Government spending is defined as Federal Government total expenditures minus interest payments and the interest rate is the Federal Funds rate.
(That means it would have covered the costs of all its expenditures except interest payments on its debts).
Added into the equation were a presidential race and expenditures by interest groups independent of campaigns spiraling out of control around the country.
Meanwhile, the US Treasury has calculated that it will run out of money to meet the federal government's planned expenditures, including interest on its $4.3 trillion debts, by 2 August.
I don't have any qualms taking responsibility and accountability for my ads or my campaign's positions on an issue, but what we're seeing is a proliferation of independent expenditures by interest groups, by political parties, by individuals that are unaccountable.
Ignoring capital expenditures and interest expense paints an incomplete picture.
The uses of this unexpected expenditure include nondisaster purposes such as election expenditures and interest payments; to what extent unallocated budget resources can be used for recovery and reconstruction purposes remains unknown.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com