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What better time to be very pessimistic in the way one values assets or provides for future liabilities?
Unlike a private insurer, it would not have to make provision for future liabilities; it could simply stick the bill to future taxpayers.
To make sure that all claims are paid, the Obama administration has stepped up the pressure on the company, demanding that it set aside money to pay for future liabilities before paying dividends to shareholders, which now amount to about $10.5 billion annually.
Reserves are provisions for future liabilities and indicate how much money should be set aside now to reasonably provide for future payouts.
The expenditures of Ranbaxy exclude an extraordinary charge to account for future liabilities.
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As yields fall, the present value of future liabilities rises.
Then the Alabama attorney general condemned reports that a BP employee had offered quick $5,000 settlements for economic damages in exchange for waivers of future liability.
They encourage investors, rather than spread their risks wisely or seek the best match for their future liabilities, to put their money into the most modish assets going, often just when they become overvalued whether tech stocks and dotcoms in the late 1990s or, now, corporate bonds, hedge funds and private-equity funds (see article).
There won't be a lot of en masse movement out of fixed income because you need it for matching future liabilities, but in this, the marginal dollar investment is coming out of there.
Maybe blaming Mr. Gore for future mortality wouldn't have worked; but Mr. Bush's advisers seem to think that blaming him for the entire future liabilities of the Social Security system will, or at least can serve temporarily to confuse voters who might otherwise have started to think too clearly about the subject.
The company has tried to prepare for future claims by taking charges against profits totaling $765 million, but its estimate of future liability ranges from $700 million to $1.4 billion, over the next six years.
Related(20)
for future risks
for future obligations
for future agreements
for future expenses
for future payments
for future investments
for future responsibilities
for future revenues
for future commitments
for future deposits
for future assignments
for future pensions
for future expenditures
for future promises
for future entitlements
for certain liabilities
for huge liabilities
for future needs
for future developments
for future studies
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com