Method for assessing the economic earnings performance of a business enterprise
First Claim
1. A method for assessing economic earnings of a business enterprise for a given period, said method comprising:
- (a) including expenses associated with granting stock options to employees of the business enterprise;
(b) including expenses associated with restructuring ongoing commercial operations of the business enterprise;
(c) including write-downs of depreciable or amortizable assets employed in the commercial operations of the business enterprise;
(d) including at least a portion of the costs incurred in the administration of an employee pension plan for the benefit of employees of the business enterprise;
(e) including expenses associated with research and development purchased by the business enterprise;
(f) including expenses related to mergers and acquisitions;
(g) including unrealized gains and losses from hedging activities;
(h) excluding charges associated with impairment of goodwill of the business enterprise;
(i) excluding gains or losses from sale of assets of the business enterprise if the stipulated commercial activities of the business enterprise do not entail selling a portion of its assets;
(j) excluding gains realized by the employee pension plan;
(k) excluding litigation settlements;
(l) excluding insurance proceeds; and
(m) excluding reversals of prior period charges and reversals of prior period provisions incurred by the business enterprise in a period preceding the given period, wherein, if an item is excluded from assessing the business enterprise'"'"'s earnings, it is not counted in calculating the earnings, and if an item is included in assessing the business enterprise'"'"'s earnings, it is counted in calculating the earnings.
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Accused Products
Abstract
Period economic earnings performance of a business enterprise is calculated using only those revenues generated by the enterprise'"'"'s stipulated commercial activities and the expenses realized, directly or indirectly, in the generation of those revenues. Income and expenses generated by activities of the enterprise that are extraneous to the stipulated commercial activities are excluded from the calculation of the enterprise'"'"'s period earnings. According to one implementation, earnings performance is calculated according to the present invention by starting with the enterprise'"'"'s as-reported earnings, calculated in accordance with Generally Accepted Accounting Principles, and making adjustments to the as-reported earnings to include certain specified items that were not included in the as-reported earnings and to exclude other specified items that were included in the as-reported earnings.
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Citations
14 Claims
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1. A method for assessing economic earnings of a business enterprise for a given period, said method comprising:
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(a) including expenses associated with granting stock options to employees of the business enterprise;
(b) including expenses associated with restructuring ongoing commercial operations of the business enterprise;
(c) including write-downs of depreciable or amortizable assets employed in the commercial operations of the business enterprise;
(d) including at least a portion of the costs incurred in the administration of an employee pension plan for the benefit of employees of the business enterprise;
(e) including expenses associated with research and development purchased by the business enterprise;
(f) including expenses related to mergers and acquisitions;
(g) including unrealized gains and losses from hedging activities;
(h) excluding charges associated with impairment of goodwill of the business enterprise;
(i) excluding gains or losses from sale of assets of the business enterprise if the stipulated commercial activities of the business enterprise do not entail selling a portion of its assets;
(j) excluding gains realized by the employee pension plan;
(k) excluding litigation settlements;
(l) excluding insurance proceeds; and
(m) excluding reversals of prior period charges and reversals of prior period provisions incurred by the business enterprise in a period preceding the given period, wherein, if an item is excluded from assessing the business enterprise'"'"'s earnings, it is not counted in calculating the earnings, and if an item is included in assessing the business enterprise'"'"'s earnings, it is counted in calculating the earnings. - View Dependent Claims (2, 3)
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4. A method for assessing economic earnings of a business enterprise for a given period by making specified adjustments to an as-reported earnings assessment calculated for the given period in accordance with Generally Accepted Accounting Principles, said adjustments comprising:
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(a) subtracting gains realized by an employee pension plan from the as-reported earnings;
(b) subtracting charges associated with impairment of goodwill of the business enterprise from the as-reported earnings;
(c), subtracting from the as-reported earnings gains and losses from the sale of assets of the business enterprise if the stipulated commercial activities of the business enterprise do not entail selling a portion of its assets;
(d) subtracting any proceeds received from litigation settlement from the as-reported earnings;
(e) subtracting any proceeds from settlement of insurance claims from the as-reported earnings; and
(f) subtracting reversals of prior period charges and reversals of prior period provisions incurred in a period preceding the given period from the as-reported earnings. - View Dependent Claims (5, 6)
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7. A method for assessing economic earnings of a business enterprise for a given period, said method comprising:
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(A) adding operating revenues generated from the stipulated commercial activities of the business enterprise, wherein said operating revenues do not include;
(1) gains realized in an employee pension plan, (2) proceeds received from litigation settlement, (3) proceeds from settlement of insurance settlement, and (4) reversals of prior period charges and reversals of prior period provisions incurred by the business enterprise in a period preceding the given period; and
(B) subtracting from said operating revenues operating expenses realized directly or indirectly in generating said operating revenues, said operating expenses including;
(1) expenses associated with granting stock options to employees of the business enterprise, (2) expenses associated with research and development purchased by the business enterprise, (3) expenses associated with restructuring ongoing commercial operations of the business enterprise;
(4) write-downs of depreciable or amortizable operating assets of the business enterprise, and (5) at least a portion of costs associated with the administration of said employee pension plan. - View Dependent Claims (8, 9)
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10. A method for assessing economic earnings of a business enterprise for a given period by aggregating specified revenues and specified expenses incurred by the business enterprise during the course of the given period, said method comprising:
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(a) excluding goodwill impairment expenses;
(b) excluding gains or losses from the sale of asset of the business enterprise if the stipulated commercial activities of the business enterprise do not entail selling a portion of its assets;
(c) excluding gains realized by the employee pension plan;
(d) excluding litigation settlements;
(e) excluding insurance proceeds; and
(f) excluding reversals of prior period charges and reversals of prior period provisions incurred in a period preceding the given period, wherein if an item is excluded from assessing the business enterprise'"'"'s earnings, it is not counted in calculating the earnings. - View Dependent Claims (11)
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12. A method for assessing economic earnings of a business enterprise for a given period by aggregating specified revenues and specified expenses incurred by the business enterprise during the course of the given period, said method comprising excluding one or more of:
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(a) gains realized by an employee pension plan;
(b) litigation settlements;
(c) insurance proceeds; and
(d) reversals of prior period charges and reversals of prior period provisions incurred in a period preceding the given period, wherein if an item is excluded from assessing the business enterprise'"'"'s earnings, it is not counted in calculating the earnings. - View Dependent Claims (13, 14)
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Specification