Benefits of the IBOCC designation include the repositioning of the city worldwide, with 8,000 commercials to air in 45 countries - a promotional expense
equivalent to $2 million in paid advertising.
Q1 onboarding expenses were $16 million, including $6 million of Core G&A expense and $10 million of promotional expense
. Total onboarding expense including 2017 and Q1 2018 was $36 million.
Management blamed the fall in operating income on higher employee-related costs and increased promotional expense
, partially offset by higher gross margin rates.
Acting CFO Tom Lux adds that business growth, share repurchases of $85.8 million and "reductions in regulatory and promotional expense
added $0.08 to adjusted earnings per share" in the second quarter.
Management attributed the results to strong seasonal sales and low promotional expense
If deductions are not promptly cleared from the receivables ledger, you risk overstatement of revenue, profit and assets, while understating promotional expense
. In the Sarbanes-Oxley era, this is a serious risk.
After conversion, converters either experience an increase or show no significant change in office, employee, and promotional expense
Q4 onboarding expenses were $17 million, including $7 million of Core G&A expense and $10 million of promotional expense
. These expenses, combined with $3 million of Core G&A expense in Q3, make $20 million of onboarding expense in 2017, which were included in the Company's estimated total onboarding costs of approximately $40 to $60 million.
Barter can be used in several ways to lower the risk of introducing a new product or service--in test marketing, for example--because it costs nothing in promotional expense
other than barter exchange fees.
Advertising and promotional expense
decreased $841,000 for the three months ended March 31, 2016 compared to March 31, 2015.
Management credits the second quarter improvement at Giant-Carlisle to strong seasonal sales and low promotional expense
. Factoring out the special items recorded in the fiscal 2007 period, consolidated operating profit for the U.S.
The decrease in advertising and promotional expense
was due primarily to the timing of media campaigns and sponsorships.