Tag Archives: earnings

Accounting Expert Witness Testifies In AEG Case

Accounting expert witness Arthur Erk testified that Michael Jackson could have earned over$1B if he had lived and performed a worldwide tour and Las Vegas show before his death. Katherine Jackson is suing AEG saying the company did not investigate Dr. Conrad Murray’s background. Murray was convicted of giving the singer an overdose.

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Employment Expert Witnesses & EEOC Award

Employment Expert Witnesses & EEOC Award

Employment discrimination expert witnesses may consult on labor and employment, fair employment practices, the Equal Employment Opportunity Commission, and associated matters. In the news, an Iowa jury awarded $240M earlier this month to 32 mentally disabled men who formerly worked at Henry’s Turkey Service in Atalissa, Iowa.

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Economic Analysis in Employment Case, Part 5

Economic Analysis in Employment Case, Part 5

According to the forensic economics literature, we would say the best approach would be to compute the reduction in payout at the time of retirement, rather than employer contribution. This approach, however, is more complicated, uses assumptions contributing to perhaps a more speculative figure and this method is more time-consuming for the economist.

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Economic Analysis in Employment Cases, Part 4

Economic Analysis in Employment Cases, Part 4

The unfortunate reality is that for the average American wage growth has not been keeping up with inflation since approx 1975! This may be referred to as the phenomenon of the falling real wage.

…..forensic economists look to the specific earnings history of the individual, when available, and exercise judgment in determining the earning capacity that should be expected in future years.

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Economic Analysis in Employment Cases, Part 3

Economic Analysis in Employment Cases, Part 3

Worklife

A statistical average of the number of years a person will be working. It factors out the probability of death, sickness, child rearing, and leaving the labor force.

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Earnings and Valuation Distortions, Part 2

Earnings and Valuation Distortions, Part 2

Depreciation is a non-cash expense (but still a charge to earnings) that is a proxy for capital assets charges. On the sources and uses of cash schedule, depreciation is an add to arrive at free cash flow, or roughly, cash flow from operations less capital spending. The problem is that a decline in depreciation expense, […]

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Earnings and Valuation Distortions, Part 1

Earnings and Valuation Distortions, Part 1

On May 29th, in his well written Financial Analysis and Commentary column, John Janarone of the Wall Street Journal discussed the variability of depreciation expense and the outlook for earnings, for various retailers, such as PetSmart (PETM), Best Buy (BBY), Barnes and Noble (BKS), among others. It highlighted a mature retailer, PetSmart, and the premise […]

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