Hong Wu/Michael Kors/Getty Images
Wall Street can be pretty stingy when growth stocks slow down. The market has been turning its back on Michael Kors (KORS) lately, even though the premium handbag maker is still coming through with big gains on both ends of the income statement.
Kors posted strong financial results last week. Revenue rose 30 percent to $1.3 billion during the holiday quarter relative to the prior year's seasonally potent period. Retail net sales climbed 37 percent, fueled by the opening of 114 net new stores, a healthy 8.6 percent spike in comparable-store sales, and a boost from its recently launched e-commerce site.
That's encouraging on all fronts. The big move up in comps proves that shoppers are continuing to gravitate to Kors as an upscale brand. Brisk expansion finds landlords just as hungry to get Kors to open up in their malls. Earnings are clocking in at record levels, but things aren't exactly right. The high-end handbag market is getting competitive, and Kors isn't entirely immune from the market's cutthroat ways.
It's in the Bag
These are challenging times for the industry. Former market darling Coach (COH) has been posting shrinking year-over-year sales for five consecutive quarters. Kors overtook Coach in terms of total revenue two quarters ago. They were passing ships.
However, things aren't exactly rosy at Kors. Operating profit margins have contracted in back-to-back quarters, and the outlook that it provided for the current quarter suggests that the streak of declining margins will stretch to three periods.
Kors went public in late 2011. It was an immediate hit. The stock soared 87 percent in 2012, following that up with a 59 percent surge in 2013. Things turned last year, with the shares moving 8 percent lower. The stock is trading slightly lower so far in 2015. The carnage is pretty grim if we tinker with the starting line: Shares of Kors have plummeted 29 percent since peaking 12 months ago.
Loose Change
Kors may seem cheap by historical standards. It is fetching 17 times earnings, based on analyst projections for this fiscal year ending next month. That's not too shabby for a stock expected to grow sales and earnings by 32 percent and 33 percent, respectively.
Wall Street sees growth continuing to decelerate in the new fiscal year that kicks off in April, but the profit multiple for fiscal 2016 drops to just 15. That's not too bad for a company growing in the double digits, even if we're talking about sales and earnings climbing just 18 percent and 12 percent, respectively. Sales growing faster than earnings points to continuing margin compression, but that's not necessarily a permanent state.
The fear with Kors is that it will become the next Coach. A couple of years ago, growth rates began to slow at Coach, and then in late 2013 those rates turned negative. We're not there yet with Kors, but just the fickle nature of fashion -- even when it's something as simple as an MK logo on an upscale purse -- has been enough to scare away investors. If this is a fluke and Kors finds a way to accelerate its growth or reverse its diminishing margins, the stock will roar back. If that isn't the case, the stock will continue to languish, and even a stock as seemingly cheap as this one relative to its historical growth rates will seem expensive in retrospect.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach and Michael Kors Holdings. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check outour free report.
WASHINGTON -- When a series of big U.S. companies last year moved to reincorporate abroad in inversion deals, some Republican lawmakers and tax policy critics blamed the high U.S. corporate tax rate. Lowering it, they said, would keep companies from fleeing the country.
But a Reuters analysis of the taxes being paid by the six largest companies known to be doing inversions in late 2014 and early 2015 showed that, even before the deals, all were paying below the statutory U.S. federal corporate rate of 35 percent.
Most were well below it. The average effective tax rate for the six companies was 20.3 percent for 2011-2013, Reuters found, using an estimation method reviewed by tax experts that was based on public data for U.S. profits and U.S. taxes.
The Reuters analysis suggests that the surge in inversion transactions may not have had much to do with the statutory corporate income tax. Moreover, it shows Washington's current debate over business tax reform may be too focused on the statutory rate, neglecting effective rates and the incentives that companies have to shift profits abroad.
The six companies analyzed were Medtronic (MDT), Applied Materials (AMAT), Steris (STE), Mylan (MYL), C&J Energy Services (CJES) and Burger King, which has been renamed Restaurant Brands International (QSR).
All six have recently completed or are in the midst of completing inversion-type deals, despite a Treasury Department crackdown in September that slowed inversion deal-making.
Inversions have been around for three decades, but they became more common in recent years. Guided by tax lawyers and accountants, companies have done more than 50 such deals since the 1980s; about half of them just since 2008.
Buying Foreign Rivals
The deals typically involve a U.S. company buying a smaller foreign rival, then taking on its nationality for tax purposes, while many core operations remain in the United States.
The six companies studied have themselves disclosed 2011-2013 effective tax rates averaging 27.8 percent, or 7.5 percentage points higher than the Reuters calculation.
The discrepancy with the Reuters figure is likely because the companies' figures include not just U.S. federal taxes, but all taxes, including state, local and foreign.
In a project for Reuters, the Institute on Taxation and Economic Policy, a tax policy think tank in Washington, looked at the six companies' data somewhat differently, stripping out certain accounting adjustments, and found an average effective tax rate of 22.2 percent over the period.
The issue is much broader than the U.S. corporate tax rate being high.
Tax inversion deals are mainly driven by efforts to shift profits out of the U.S. and to access overseas earnings at little or no cost in U.S. tax, tax specialists said.
"The issue is much broader than the U.S. corporate tax rate being high," said Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, a centrist think tank.
To be sure, some other tax experts and activists say the statutory rate is the key, not only to inversions, but to broad U.S. business competitiveness around the world.
"You fix the rates, you fix it all," said Grover Norquist, a Republican activist and president of Americans for Tax Reform, which advocates for lower taxes and smaller government.
No Direct Connection
A close look at of some of the six deals suggests no direct connection with the 35-percent U.S statutory rate.
For instance, Pittsburgh-based pharmaceuticals company Mylan is buying the non-U.S. generic drug business of Chicago's Abbott Laboratories to create a combined company incorporated in the Netherlands and managed from Pennsylvania.
The Netherlands' statutory rate is 25 percent. However, Mylan's global effective tax rates, as disclosed in the company's annual reports to investors, were 16.2 percent in 2013, 20.0 percent in 2012 and 17.7 percent in 2011.
ITEP pegged Mylan's U.S.-specific effective tax rate at 20.5 percent on average for those same years, and the Reuters analysis found it to be 19.7 percent.
When Mylan announced the Abbott deal in July 2014, it said it expected it to bring many advantages and "to lower Mylan's tax rate to approximately 20-21 percent in the first full year, and to the high teens thereafter." A spokeswoman for Mylan declined to comment and referred questions to past statements.
In another deal, Steris, based near Cleveland, is buying out the U.K.'s Synergy Health, with the combined company to be managed from Ohio, but incorporated in Britain where the statutory corporate tax rate is 21 percent.
Reuters found a 2011-2013 U.S.-specific average tax rate for Steris of 17.2 percent; ITEP's calculation came to 16.6 percent.
The company has disclosed global effective tax rates averaging 32.1 percent for the same period. A Steris spokesman said the company expects its effective tax rate beginning in 2016 to be about 25 percent. "This transaction is not being driven by tax rates," he said.
Highest Rate
The U.S. statutory rate is high. Tack on an average of state and local corporate rates and it's 39.1 percent. No major country has a higher combined rate. The next highest are Japan at 37 percent and France at 34.4 percent.
But the U.S. tax code is uniquely complex. Big companies use elaborate strategies to exploit loopholes to cut their tax costs, which they say shareholders expect them to do.
The gap between the statutory rate and what companies really pay is hard to measure because their tax returns are, of course, confidential. Financial report data can furnish estimates of effective rates, but there is no standard way to do this. Even when measuring marginal effective tax rates, seen by tax experts as the best test of business investment decisions, it's hard to know the true U.S. tax burdens of large corporations.
Most lawmakers agree inversions are a problem because they erode the U.S. corporate tax base. Corporations today only provide about 10 percent of U.S. government revenues, down from 30 percent in the 1950s.
In his 2016 budget last week, Democratic President Barack Obama proposed steps to curb inversions and what his administration sees as the incentives for doing them. The Republican-controlled Congress, however, is unlikely to agree with his proposed reforms, which may be dead-on-arrival.
Earnings Stripping
One of Obama's goals is tightening a rule that makes business interest tax-deductible and helps companies shift profits out of the United States via interest payments on loans from foreign affiliates. This is known as earnings stripping.
Another is ending the "deferral" rule that says companies don't have to pay income tax on active overseas profits, as long as those profits don't enter the United States. Companies have about $2.1 trillion in profits abroad. Some came from foreign ventures; some from earnings stripping, tax experts said.
The third target is abusive "transfer pricing." This involves shifting profits out of the United States to lower-tax countries via cross-border, non-market-based payments among the worldwide affiliates of multinationals.
Cutting the 35-percent statutory rate wouldn't change any of these rules. And no politically realistic U.S. rate cut would be likely to level the playing field with, say, Ireland, which has a 12.5 percent statutory rate and is a popular destination for U.S. companies doing inversions, let alone tax havens such as Bermuda, which charges no corporate income tax at all.
"Until we address earnings stripping and the transfer of intangible rights abroad," Rosenthal said, "we're always going to have this incentive for foreign companies to combine with U.S. companies and strip the U.S. corporate tax base."
Damian Dovarganes/APIncoming container ships line up outside the Port of Los Angeles last month as they await for dock space.By JUSTIN PRITCHARD
LOS ANGELES -- West Coast seaports fully reopened Monday after two days during which no ships were unloaded amid a labor dispute between dockworkers and their employers.
The two sides are negotiating a new contract, and bargaining-table tensions have spilled over to the waterfront, where cargo is moving far slower than normal through ports that handle about one-quarter of the nation's international trade -- nearly $1 trillion annually.
During the weekend, companies hired workers only to move from dockside yards cargo containers that already had been unloaded from massive ocean-going ships. Employers said those yards are congested to the point of paralysis, and they needed to focus on freeing space. They also said they wouldn't pay full crews they contend have been working slowly as a pressure tactic.
The CEO of the maritime association that represents employers said last week that ports were so close to total gridlock that employers could lock out workers as soon as Monday.
On Monday, a spokesman for the Pacific Maritime Association did not have immediate comment on how much congestion weekend workers were able to clear and what a timeline for a lockout might now be.
The dockworkers' union condemned the weekend hiring cutbacks -- and the warning of a lockout. The International Longshore and Warehouse Union disputes both that there is little room for new containers and that its members have been working slowly. The union blames the West Coast congestion crisis on structural problems with the shipping supply chain.
Contract talks were scheduled to resume Monday afternoon in San Francisco after a weekend hiatus. The prior contract expired in July. A federal mediator got involved a month ago. While there was some immediate progress after that development, both sides have not settled issues including wages and how to arbitrate future work-related disputes.
Meanwhile, outside pressure to reach a deal has been mounting from elected officials, retailers whose imported products are stuck on the docks, exporters who say they can't access foreign markets, and others affected by the congestion crisis.
proxibid.comWarren Buffett's personal 2006 Cadillac DTS sedan has fewer than 21,000 miles on the odometer.
OMAHA, Neb. -- Warren Buffett's old 2006 Cadillac is going to be auctioned off to raise money for one of his favorite charities now that the billionaire finally upgraded his car to a newer model.
Buffett's old DTS sedan will go up for sale online at www.proxibid.com starting Wednesday. The auction will run through Feb. 19.
The 2006 Cadillac has only 20,310 as Buffett enjoys a short commute to work at Berkshire Hathaway's headquarters in Omaha. Based on past auctions involving Buffett, the car will draw much more than its Kelly Blue Book value of between $10,000 and $11,600.
The last time Buffett's car was auctioned off, his 2001 Lincoln drew $73,200 -- well above its book value of $11,200.
NEW YORK -- Concerns about the world economy helped tug U.S. stocks lower on Monday as worries mount over Greece's standoff with its creditors.
Major indexes headed lower at the opening of trading, following European markets down. A rebound in crude oil drove energy stocks higher.
With no major reports on the U.S. economy to hold their attention, investors looked abroad.
There's still a lot of uncertainty around Greece. It's one of these tectonic plates shifting around the financial system.
"There's still a lot of uncertainty around Greece," said Jack Ablin, chief investment officer at BMO Private Bank. "It's one of these tectonic plates shifting around the financial system."
Greece's new prime minister, Alexis Tsipras, set his government on a collision course with the country's creditors. In a speech Sunday, Tsipras declared an end to a regimen of budget cuts and tax increases and said he would push for a short-term loan to give the country and its creditors time to negotiate a new arrangement to replace its bailout program. Greece and its international creditors were expected to take up the issue later this week.
For investors, the worry is that if Greece drops the European currency, it could have unpredictable consequences for the wider financial system. One fear is that other countries with much larger economies might follow Greece out the door.
The Standard & Poor's 500 (^GSPC) slipped 8.73 points, or 0.4 percent, to close at 2,046.74. Of the 10 sectors in the index, only energy companies finished higher.
The Dow Jones industrial average (^DJI) fell 95.08 points, or 0.5 percent, to 17,729.21, while the Nasdaq composite (^IXIC) fell 18.39 points, or 0.4 percent, to 4,726.01.
Earnings Season
Hasbro (HAS) jumped $3.92, or 7 percent, to $59.66 after the toy company turned in stronger quarterly results. Sales of toys geared toward boys surged, led by Transformers, Nerf and Marvel-brand action heroes. Hasbro also raised its dividend and expanded plans to buy back its own shares.
McDonald's (MCD) reported that a key measure of global sales shrank last month, as sales slumped across the Middle East, Africa and Asia. The world's biggest hamburger chain dropped $1.27, or 1 percent, to $92.72.
This week marks the half-way point for the fourth-quarter earnings season, and the results are shaping up better than Wall Street had expected. Seven out of 10 big companies have turned in higher profits than analysts had forecast, putting overall earnings on track to rise 7 percent for the full quarter, according to S&P Capital IQ.
In other trading on Monday, U.S. crude oil rose $1.17, or 2.3 percent, to close at $52.86 a barrel in New York, while brent crude, the international benchmark, rose 54 cents to $58.34 in London. The gains came as OPEC said that it expects demand for crude to rise this year and U.S. output to fall.
Higher prices for crude oil helped lift stocks in companies tied to the oil industry. Nabors Industries (NBR), a driller, and National Oilwell Varco (NOV) each gained 3 percent.
World Markets
Major markets in Europe closed lower. France's CAC-40 lost 0.9 percent, and Germany's DAX fell 1.7 percent. Greece's main Athens Exchange lost 4.7 percent.
Interest rates on government bonds in Italy and Spain jumped, though they still remain near historic lows.
In Asia, most major stock markets closed lower following news that China's imports fell nearly 20 percent over a year earlier. Exports were also weak, heightening concerns about the world's second-largest economy.
Hong Kong's Hang Seng fell 0.6 percent while South Korea's Kospi slipped 0.4 percent. Japan's Nikkei 225 added 0.4 percent.
Back in the U.S., prices for government bonds edged up, pushing long-term interest rates down. The yield on the 10-year Treasury note slipped to 1.95 percent.
In the commodity markets, gold gained $6.90 to settle at $1,241.50 an ounce, while silver rose 38 cents to $17.07 an ounce. Copper lost half a penny to $2.85 a pound.
In other trading on the New York Mercantile Exchange:
Wholesale gasoline rose 1.9 cents to close at $1.578 a gallon.
Heating oil rose 3.4 cents to close at $1.873 a gallon.
Natural gas rose 1.8 cents to close at $2.597 per 1,000 cubic feet.
What to watch Tuesday:
At 10 a.m. Eastern time, the Commerce Department releases wholesale trade inventories for December, and the Labor Department releases job openings and labor turnover survey for December.
These selected companies are scheduled to release quarterly financial results:
HARTFORD, Conn. -- If you're a billionaire living in Connecticut, chances are the tax department is keeping an eye on you.
In a state home to some of the richest Americans, tax officials go to some lengths to keep them -- or, more accurately, keep the billions of dollars in revenue their income taxes generate.
Connecticut tax officials track quarterly estimated payments of 100 high net-worth taxpayers and can tell when payments are down. Of that number, about a half-dozen taxpayers have an effect on revenue that's noticed in the legislature and Department of Revenue Services.
There are probably a handful of people, five to seven people, who if they just picked up and went, you would see that in the revenue stream.
"There are probably a handful of people, five to seven people, who if they just picked up and went, you would see that in the revenue stream," said Kevin Sullivan, the state's commissioner of the Department of Revenue Services.
With one exception, he said, state officials don't actually approach the super-rich. He said: "There isn't friendly visiting or anything like that, how are you feeling? Doing all right? Doing OK?"
Two years ago, tax officials were alarmed that a super-rich hedge fund owner might leave and reduce the state's income tax revenue. They set up a meeting and urged the unidentified taxpayer to stay. The effort was partly successful, with the taxpayer leaving Connecticut but agreeing to keep the hedge fund here.
"It would be nice to have both, but at least we didn't lose both," said Kevin Sullivan, the state's revenue commissioner.
Tax officials in a few states said they do not track individual tax payments, though state budget officials typically follow total quarterly tax payments by the rich to make sure revenue projections hold up.
'Anecdotal' Evidence
And some experts don't believe there's any need to worry about the super-rich moving to avoid high taxes. "The claims are almost always anecdotal," said Matt Gardner, executive director of the institute on Taxation and Economic Policy.
Connecticut tax officials won't say who the super-rich are, citing privacy, but it's not hard to guess.
Many movers and shakers in and around New York City, the capital of the banking and hedge-fund world, work in or populate the verdant suburbs next door in Connecticut. They include names like hedge fund owner Steven Cohen; Thomas Peterffy, of Interactive Brokers; Ray Dalio, of Bridgewater Associates; and Paul Tudor Jones, of Tudor Investment Corp. Combined, their net worth is more than $40 billion, according to Forbes.
Those four declined to discuss their experiences, if any, with Connecticut tax officials. But if they or other big-moneyed individuals or their businesses decide to leave, the danger is real.
In April 2014, super-rich taxpayers in Connecticut and elsewhere shielded their income through charitable donations or other means to avoid a tax hit following the expiration of federal tax cuts.
The result: Connecticut income tax revenue plunged by nearly $281 million, more than 14 percent, compared with the same month a year before. In the 2014 budget year, state income tax revenue was $8.7 billion, more than half the $16.4 billion in total revenue from taxes and fees.
Persuading the Rich to Stay
While tax officials in several states say they track revenue from rich people's taxes, none said they have approached super-wealthy taxpayers as Connecticut has, intending to persuade them to stay put.
States may call on them if they see a marked increase or decrease in payments, said Ronald Alt, senior research associate at the Federation of Tax Administrators. But he has never heard of state officials lobbying a taxpayer to stay put.
Arkansas, home to Walmart's Walton family, the owners of Tyson Foods and other super-wealthy taxpayers, doesn't contact them to alter their decisions, said John Theis, the state's assistant revenue commissioner. But the agency reviews what's changing for the wealthiest employers and individuals as part of its revenue forecast.
The super-rich tend to donate to charities when tax laws are in flux. Andrew Hastings, chief development officer at the National Philanthropic Trust, noted the phenomenon at the end of 2012 with the so-called fiscal cliff, the combination of expiring tax cuts and across-the-board government spending reductions.
'Windfall for Many Charities'
"It was a windfall for many charities," he said.
Three of the half-dozen or so super-rich taxpayers in Connecticut use the services of the Greenwich accounting firm Marcum, and each has a yearly income of more than $1 billion. Partner John J. Mezzanotte also said he has seen a big step up in charitable giving.
The migration of the rich affects other taxes, such as the sales tax if wealthy car buyers "bought their Bentley in Florida instead of Greenwich," he said.
Sen. L. Scott Frantz, the ranking Republican on the legislature's Finance, Revenue and Bonding Committee, said the disproportionate impact on state revenue by one group of taxpayers -- in this case, the super-rich -- is "pretty frightening when you think of it."
Even Connecticut's revenue commissioner acknowledges the state can't put too many eggs in its rich residents' baskets.
The more the government relies on the super-wealthy, the more volatile that revenue is, said Sullivan, a former Democratic lawmaker. And raising taxes on the wealthy to attack income inequality has its limits, he said.
Tax policy, he said, should not make the state dependent on the very rich.
"You don't want a system that doesn't ask them to do their fair share," he said, "but you don't want a system that makes you so reliant on their fair share that if they all picked up and left tomorrow or died tomorrow you'd be screwed, as they say in the tax business."
Because federal tax law reaches deep into all aspects of our lives, it's no surprise that the rules that affect us change as our lives change. This can present opportunities to save or create costly pitfalls to avoid. Being alert to the rolling changes that come at various life stages is the key to holding down your tax bill to the legal minimum.
1. W-4
For starters, plan on filing a W-4 form with your employer to increase or decrease the amount withheld from your paychecks.
2. Legal Fees
Most legal fees associated with a divorce are considered nondeductible personal expenses. But there are exceptions that could save you money.
To the extent your lawyer's work focuses on alimony (the recipient has to pay tax on it; the payer gets to deduct it) or other tax issues (like who gets the dependency exemptions or the intricacies of transfers of assets between spouses), that portion of the bill is deductible as a miscellaneous expense if you itemize. A key to this tax-saver is to have your attorney clearly break out the tax-related portion of the bill from the personal part. As miscellaneous expenses, qualifying costs are deductible only to the extent all your miscellaneous expenses exceed 2 percent of your adjusted gross income.
3. Exemptions for Children
As a general rule, the custodial parent (the one the kids live with most of the year) claims qualifying children as dependents on the tax return. (For 2014, each dependency exemption reduces taxable income by $3,950. The amount rises to $4,000 for 2015 returns.)
But it is perfectly legal for the noncustodial parent to claim a son or daughter as his or her dependent if the other parent signs a waiver agreeing not to claim the same child on his or her return. Form 8332 must accompany the noncustodial parent's return each year he or she claims the children. This could make financial sense if the noncustodial parent is in a higher tax bracket. But note this: Waiving the right to the exemption also waives the right to claim the child credit and any college credits. Those tax savers can only be claimed by the parent who claims the child as a dependent.
4. Filing Status
Couples who are splitting up but not yet divorced before the end of the year still have the option to file a joint return. It's your marital status as of Dec. 31 that controls your filing status. If you can't file a joint return for the year, you can file as a head of household after your divorce (and get the benefit of a bigger standard deduction and gentler tax brackets) if you had a dependent living with you for more than half the year and you paid for more than half of the upkeep for your home. If your divorce is still pending at year-end, you can either file a joint return (which is likely to save you money) or choose the married-filing-separately status.
5. Medical Expenses
If you continue to pay a child's medical bills after the divorce, you can include those costs in your medical-expense deductions even if your ex-spouse has custody of the child and claims the dependency exemption. The child's bills you pay could push you over the 10% threshold that applies to most taxpayers when it comes to medical-expense deductions. The costs are deductible only to the extent that they exceed 10% of adjusted gross income. (It's 7.5% of AGI if you're 65 or older.)
6. Asset Transfers
When a divorce settlement shifts property from one spouse to another, the recipient doesn't pay tax on that transfer. That's the good news.
But it's important to remember that the property's tax basis shifts as well. Thus, if you get property from your ex in the divorce and later sell it, you will pay capital gains tax on all the appreciation before as well as after the transfer. That's why, when you're splitting up property, you need to consider the tax basis as well as the value of the property. A $100,000 bank account is worth more to you than a $100,000 stock portfolio that has a basis of $50,000. There's no tax on the former, but when you sell the stock, you will owe tax on the $50,000 profit.
7. Home Sales
If, as part of your divorce, you and your ex decide to sell your home, the timing can have tax consequences. Normally, the law allows you to avoid tax on the first $250,000 of gain on the sale of your primary home if you have owned the home and lived there at least two years out of the last five. Married couples filing jointly can exclude up to $500,000. For sales after a divorce, if the two-year ownership-and-use tests are met, you and your ex can each exclude up to $250,000 of gain on your individual returns. And sales after a divorce can qualify for a reduced exclusion even if the two-year tests haven't been met.
The limit on tax-free profit depends on the portion of the two-year period for which the home was owned and used. If, for example, it was one year instead of two, you each can exclude $125,000 of gain. What happens if you receive the house in the divorce settlement and sell it several years later? Then you are stuck with the $250,000 maximum.
8. IRA Contributions
Generally, a taxpayer must have earned income from a job or self employment to qualify to contribute to an individual retirement account. However, there's an exception for some divorced people.
Taxable alimony you receive counts as compensation for the purposes of making IRA contributions. For 2014 and 2015, assuming you're at least 50 years old, you can contribute up to $6,500 to a traditional IRA or a Roth IRA or a combination of the two.
Do you know where you'll be taking your date this Valentine's Day? Maybe you're thinking of dining out at that fancy restaurant you've both been dying to try. Sounds like a safe bet, until you realize the menu is a prix fixe four-course meal -- and the wine pairing almost doubles the final bill. Valentine's Day can be stressful enough without having to worry about whether the cost of a night on the town will drain your bank account. To help you out, here are 15 frugal date ideas for $15 or less.
1. Attend a YouTube Cooking Class
Foodies can show off their culinary skills, while amateur chefs can prove their willingness to try new things by cooking a meal together. Traditional cooking classes can carry hefty fees, so look up a tutorial on YouTube instead. Compare ingredients with what you have in your pantry to cut costs.
2. Take a Walk in the Park
Not only is it the most affordable option on this list, but it is also a great way to get to know someone. Depending on where you are, February can bring ideal weather for a leisurely stroll. A slight chill in the air is a perfect excuse to keep your Valentine close.
3. Hit the Bar
Rather than stopping at your usual watering hole, try something new, maybe a jazz club, a cocktail lounge or even a dive bar (where you know the drinks will be cheap and the people watching will help stimulate conversation). Do some research and see if any are hosting special events like trivia nights for the chance to win gift cards or even cash.
4. Go on a Coffee Date
Seek out a café with ambiance and enough space for you and your date to sit down and have a conversation. Don't order your usual cup of joe. Compared to cocktails, the prices of coffee concoctions are relatively cheap, so don't be afraid to try something new.
5. Roast S'Mores by the Fire
What better way is there to enjoy the cool weather than sharing a sweet treat with your sweetheart while bathed in the warm glow of a crackling campfire? Those without access to backyard fire pits or campgrounds can stay indoors and snuggle by the fireplace.
6. Bike Around Town
Cruise through your favorite neighborhoods or try to discover a secret, scenic spot to call your own. Those who do not own their own bikes can rent from shops or bike sharing services. Rates vary depending on location, so you might be better off borrowing from a friend. If it's too cold to ride, take advantage of low gas prices and go for a drive instead.
7. Tour Open Houses
You might not be able to afford a new house, but that shouldn't stop you from appreciating what's on the market. You and your Valentine can daydream about how you would build the perfect nest (or have fun critiquing the homeowners' tastes).
8. Visit a Museum
Soak in some culture with a trip to the museum. Look for institutions that offer price specials or, better yet, free admission. You might want to eat before you go, as the connected cafes can be overpriced.
9. Sing Karaoke
Karaoke is an affordable form of entertainment that allows you to be part of the show! Granted, not everyone is comfortable singing in front of a room full of strangers, but listening to "Frozen" fans slur the words to "Let It Go" is plenty of fun on its own. Just beware of karaoke clubs with drink minimums.
10. Throw a Game Night
Pull yourselves away from your smartphone screens and break out a board game. If you never invested in Monopoly, there are plenty of fun, free options such as 20 Questions, "Would You Rather?" and, of course, Truth or Dare.
11. Play a Round of Mini Golf
Mini golf is one of the few sports you can play while carrying on a conversation. Certain putt-putt courses even allow BYOB, which can make the game (and the date) really interesting.
12. Check Out a Local Band
There are tons of talented bands out there who haven't (yet) hit the radio. You don't need tickets to see these shows, but venues often charge a modest cover fee when popular groups are headlining. Look online to see if fees fluctuate depending on what time you arrive. A $5 cover at 9 p.m. could jump up to $10 by 10 p.m.
13. Paint Each Other's Portraits
This creative activity is fun for both the artistically inclined and enthusiastic amateurs. All you need are a few colors of paint and some sheets of paper. Save more when you release your inner-child and use your fingers instead of brushes.
14. Watch a Movie
Watching a movie is a tried and true date idea and, thanks to Netflix (NFLX), finding something to watch is more convenient and affordable than ever. You can take the more traditional route and choose a romantic classic. Or, if you're feeling brave, put on your favorite guilty pleasures that you've been too embarrassed to reveal.
15. Volunteer
Show your Valentine just how big your heart is by lending a helping hand to a worthy cause. You can find plenty of volunteer opportunities online that allow you to share your interests, including environmental work, to education and literacy initiatives, and animal shelters. You can find worse ways to spend an afternoon than playing with puppies and kittens.
I remember my first online accounts. I just wish I could find them.
When I was a teenager, there was some blogging or profile site most people in my school had, and I can't for the life of me remember what it was (I'm pretty sure it wasn't Friendster, MySpace, Xanga or LiveJournal -- I really have no idea). I do remember my page having a black background and lime green text, and there was a little "about me" section. I remember this because my brother told my mom, and I got in trouble for using foul language when expressing my Cubs fanaticism. Ah, teenage angst.
This page has to be on the Internet somewhere. So does the MySpace page I maintained until at least 2005. I can't find them. Maybe you're in the same situation. I asked some cybersecurity experts for some tips on how to find, and close, those old accounts.
1. Resurrect Old Usernames
Going to sites where you think you had an account and trying to use a "forgot username/password" function might help you scrub old accounts from the Internet, but it's tough to remember all the places you've had accounts.
"We forget about these things and we don't remember what our footprint is," said Todd G. Shipley, president and CEO of Vere Software and a former investigator for the Reno, Nevada, police department. Because people tend to use the same usernames (and passwords, unfortunately) across multiple platforms, try plugging it into search engines. "Google (GOOG) the username and see if it shows up someplace."
2. Exhaust the Search Engines
A quick Google search isn't likely to get you very far, especially if you have a large online presence. (For example, because my name is on everything I write, I had to go through more than a dozen pages of search results to get to some old stuff.) Try using a variety of engines, like Bing, Yahoo, Ask, DuckDuckGo and others.
"It's time-consuming, and it's a pain, ... but it's how you do it," said Alexis Moore, an author of books on cyberbullying and cyber self-defense. You never know what sort of information you plugged into old profiles, so Moore recommends trying everything, like old addresses and phone numbers.
Shipley said he always uses Spokeo in investigations, but you have to pay for the service. He also recommends setting up a Google Alert for your name, because sometimes obscure accounts pop up in them.
3. Contact the Site Administrator
If you find an old account or are certain you had one and can't get into it, all you can do is contact the site and ask for access. That's a tough route to take, though. Shipley said companies often aren't helpful in accessing an account, especially if you don't have access to the email address associated with it, so you have to be persistent. Even if you hire a consultant or a reputation management company to do the heavy lifting, they may not be successful.
I spent several hours searching for old accounts under various usernames and email addresses I had, and it wasn't very fruitful. I found a bunch of meaningless stuff -- random services I signed up for once and forgot about -- and an old Twitter (TWTR) account I never used. The search helped me delete a few old things, but I never found the elusive MySpace or that first social profile.
That's just my experience, however. It's worth trying, because even if you're not looking yourself up, someone else -- like a future employer -- is. I also talked to a lawyer about finding old accounts, and he recommended leaving instructions in your will for handling your online presence.
"My experience comes in as an attorney who works with people arranging their estate plans and trying to reassure that their assets -- that would include their digital assets -- are taken care of, either during any period of incapacity or upon their passing," said Stanley Brooks, a lawyer in Wellesley, Massachusetts. He said many online terms and conditions limit who can access an account, making a mess of things when that user dies and family members want to access it.
You may also want to track down these old accounts because of the identity theft risks. Did you post the name of your elementary school to that MySpace page? What about lamenting the loss of your beloved family pet in your blog? Believe it or not, an identity thief can use this information, combined with your name, to make a solid attempt at hacking your accounts. Often, these small details are used as security questions, which is exactly what can make you vulnerable. If you're worried about your online accounts being compromised, in addition to using these tips, it's also smart to monitor your bank accounts regularly, clean up your email inbox to prevent phishing and malware, and check your credit regularly to combat new-account fraud.
Here's the takeaway: Google yourself often, authorize others to access your information upon your death and try to be smarter about how you use the Internet than you were a decade ago.
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You know that staying healthy has plenty of positive benefits -- you feel happier, you have more energy, you may even live longer. But did you know being healthy can also have a positive impact on your wallet?
Here are six ways that taking good care of yourself can also pay off for your finances -- and six ways you can develop strong health without spending a fortune.
One disclaimer before we jump into this list: There are exceptions, of course. You might lead a perfectly healthy lifestyle but suffer from an accident or illness. Unfortunately, there are lots of people eat right, exercise, wear sunblock, don't smoke, floss -- and get diagnosed with cancer. It happens.
The tips in this article don't guarantee good health or low medical bills. They're simply intended to get you thinking about the relationship between your health and your money, and to encourage you to take care of your health so that your wallet can hopefully share the positive effects. Yes, some people will become survivors of bad luck or misfortune, but let's do whatever is within our power to lower the likelihood of needing pricey medical care.
With that said, let's launch into six ways your health impacts your net worth, and six free or cheap ways you can improve your health.
1. Fewer Doctor's Visits
Every time you visit the doctor, you face a deductible and a co-payment (plus plenty of potential additional expenses depending on the course of treatment she recommends). If you need to see a specialist, that co-pay increases, and your co-insurance may also kick in.
But if you keep yourself in good shape and follow your doctor's advice when she recommends a certain lifestyle change or course of action, you'll be less likely to need too many visits. That "apple a day keeps the doctor away" saying has some truth to it -- and apples are cheaper than appointments.
2. Lower Pharmacy Costs
If you eat well, exercise regularly and follow your doctor's orders, you'll increase your likelihood of needing fewer medications for aches, pains and ailments. You could save on everything from pricey prescriptions to over-the-counter meds, which anyone in less-than-perfect shape can tell you could cost hundreds a month.
3. Less Time Missed From Work
Depending on how many days paid sick days your company allows, an extended illness -- or too many minor illnesses -- could wind up costing you several days' pay. Excessive absences also look bad to employers, which can affect things like your performance review, promotion potential and opportunities for raises. In other words, sick days harm your finances all around, both short-term and long-term.
4. Better Work Performance
When you're mentally and physically fit, the days you do spend in the office will be more focused, productive and efficient. When you feel well, your mind is alert and you're better able to deal with problems as they arise. You can rise to challenges and exceed expectations -- which has quite a nice effect on those things like performance reviews, promotion potential and opportunities for raises.
5. Less Money Wasted on Bad Habits
Plenty of things that are bad for your health are also bad for your wallet. Smoking, drinking alcohol, and existing on a diet of fast food and soda are expensive habits. Cut these out of your life, and you'll find you suddenly have much more money left over at the end of the month.
6. More Energy to Start a Side Hustle
If you've ever though of starting a side business -- whether it's selling crafts on Etsy or launching your own landscaping company -- you'll find you have much more energy to pursue it if you're in good health. A side business can be a great way to bring in some extra money, but it's not the kind of thing you can do for a couple hours when you feel like it. As any shark on "Shark Tank" will tell you, it takes determination and plenty of sweat equity.
How to Improve Your Health -- for Free (or for Not Much)
So how can you maintain your health without spending too much of that money you've just saved by being so healthy? Here are six simple (and inexpensive) strategies.
1. Shop Smarter
You can eat better without spending a fortune by buying in-season produce, stocking up on cheap but healthy staples like brown rice and beans, planning your meals ahead of time and keeping fresh fruits around when you're hungry and running out the door.
2. Cook Smarter
Make meals from scratch rather than paying for convenience foods and packaged meals. Use the same basic staples (such as rice or pasta, some lean protein and veggies) to make multiple meals, such as tacos, enchiladas and quesadillas, Thai curry, vegetable roasts and stir-fries. This will limit your food waste and simplify shopping.
One day per week, cook meals in bulk and freeze or refrigerate leftovers to eat throughout the week. The more easily you can pop something in the microwave during the week, the more likely you are to stick with your meal plan. Brown-bag your work lunches instead of grabbing something on the go.
3. Drink More Water
Carry a water bottle with you to make sure you're staying hydrated; it will keep you fuller longer and help you stave off dehydration symptoms like headaches. Keep a glass of water at your desk and sip it throughout the day; each time you get up to use the bathroom, refill the glass.
4. Exercise for Free
Staying fit doesn't have to cost a fortune. Try exercising to YouTube videos, walking your dog, jogging with a friend or joining a dodgeball league. Download free fitness apps that guide you through exercises, play Frisbee or soccer in the park on the weekends or learn a few yoga poses that you can practice in your living room. Do push-ups, squats, lunges and crunches.
Exercise your imagination: place a circular, uncovered trash can on the top rung of a ladder and use it as a backyard basketball "hoop." Tie some string between two trees and turn it into a tennis "net." Turn a gallon of milk into a "barbell" that can help you practice bicep curls.
5. Meditate
Studies have shown that a regular meditation practice can help with a slew of medical issues, including high blood pressure, insomnia and chronic pain. It can also help reduce your stress levels, and stress brings its own set of medical problems.
Taking 15 minutes a day to practice deep-breathing and relaxation can have a big payoff. If that feels like too much time, start by deep-breathing and meditating for just one minute per day. Develop this habit by repeating it everyday for a week. The following week, increase this to two minutes. The week after, increase it to three minutes.
6. Use an App
There are tons of health and fitness apps available for free or very cheap that can help you to maintain a healthier lifestyle. From step trackers to calorie counters to preloaded workout routines, there's an app for any health resolution you might want to make. Scroll iTunes or Google (GOOG) Play until you find a free app that sparks your interest. Start by downloading just one app, and commit to using it daily for 21 days, until it becomes an ingrained habit.
Paula Pant ditched her 9-to-5 job in 2008. She's traveled to 32 countries, runs a popular finance blog and is a successful real estate investor. Her blog, Afford Anything, is the groundswell of a rebellion against stodgy, uninspired financial advice. Afford Anything shows you how to crush limits, create wealth and maximize life.
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The Dow Jones industrial average (^DJI) may be older and better known, but the Standard & Poor's 500 index (^GPSC) is where the action is. Market pros say it is much more representative of the economy, and it attracts billions and billions of dollars of investor money through mutual funds that track it.
The S&P 500 used to track the stock of 500 large companies. But the index now has 502 stocks, and it will soon have 505. It's sort of a stock market riddle: how does a 500 index have 505 stocks but only 500 companies?
The managers of the index have changed the methodology they use to include both issues of some companies that separate their stock into two classes. That's not the same as a stock split. If you held 100 shares of a company that declared a two-for-one stock split, for example, you would end up with 200 shares, but the value of each share would be cut in half, so the total value of your investment would remain the same.
But when there are two classes of stock -- usually Class A and Class B -- the investing public usually owns one, and the company founders often own all or most of the other class. The intent is typically to guarantee that the owners retain full control of the company by giving their shares super-voting powers. In return, the other class of stock often carries a higher dividend payout.
Two Classes for Google, Discover
In the past, S&P has included only the class of shares that the general public could invest in. But last year, S&P decided to include both classes of shares for Google (GOOG) (GOOGL) and Discover Financial (DFS) (DISCA). "It makes a difference to portfolio managers and companies that emulate the index, like Vanguard and Fidelity," according to Howard Silverblatt, senior index analyst for S&P Dow Jones Indices. But he says it has no cost and very little impact on individuals who invest in a mutual fund that tracks the index.
In addition to Google and Discover, three stocks representing a second class of shares will be added this September: Comcast (CMCSA) (CMCSK), 21st Century Fox (FOXA) (FOX) and News Corp. (NWSA) (NWS).
"We're emulating the market more precisely," said Silverblatt. "This better represents the actual issues in the whole market, emulating it right down to the sub-industry level." He says "these different classifications of stock trade differently, thus have different results, giving a better representation of the market."
But Not for Berkshire Hathaway
But it's not automatic that both classes of a company's stock will now be included in the index. In fact, 13 companies in the S&P 500 have multiple classes of stock, but only the five already named will have both included in the S&P 500. The biggest name that has two classes of stock but only one listed is Berkshire Hathaway (BRK-A) (BRK-B), the giant conglomerate run by Warren Buffett. Silverblatt said Berkshire and the others do not meet liquidity and other criteria needed to include both classes of stock.
Sometimes the two classes are priced very similarly. Both classes of Google trade in the mid-50s. But one class of Discover shares trades in below 30 a share, while the other is in the upper 50s. And Berkshire Hathaway has the world's highest-priced stock, with the Class A shares recently priced above $222,000 a share, while the Class B shares traded below $150.
So should we start calling the index the S&P 505? Silverblatt says no. "When we added Google, we told systems not to code it 501. You'll regret it," he said. "It's a changing issue. It could go up again or it could go back down." But he says the S&P 500 will always include just 500 companies.
How long do frequent flier miles last? Unfortunately, not long enough. Among U.S. airlines, only Delta (DAL) and JetBlue (JBLU) promise that your miles will never expire. A few hotel chains also offer no-expiration loyalty program points, but most airlines and hotels have time frames that essentially force you to use your miles or forfeit their value.
But there are a few tricks you can employ to extend those expiration dates with little-to-no-cost. In fact, with a bit of planning, keeping miles alive is so easy that there's almost never an excuse to let a single one expire.
Get Organized and Determine Your Expiration Dates
If you have multiple loyalty accounts with different airline and hotel programs, it may seem challenging to keep track of all the varying expiration dates. AwardWallet will track the miles in all your loyalty accounts, keep tabs on your expiration dates and even warn you via e-mail when an expiration date is approaching. You can sign up for a free basic account on the AwardWallet site, but if you want more advanced features, such as an ongoing history of your mileage balances or the option to export the data to Microsoft Excel, you'll have to pay.
Now that you know when your miles are going to expire, how can maintain their value? To keep your miles alive, most loyalty programs require that you have some sort of activity in your mileage account every 18 to 24 months. The good news is that this clock can be constantly reset. Each time you either spend miles or earn them, you start that 18- to 24-month period all over again, not just on any new miles earned, but on all the miles in your loyalty account.
People often assume "account activity" is restricted to travel, but just a single mile of activity in your mileage account will restart the clock. Hotels and airlines have vastly expanded the number of ways you can acquire or use miles or points aside from flying or staying at a hotel, which means there are plenty of ways to earn and burn miles.
Consider Loyalty Program Partners
The easiest way to find a list of partners for any airline or hotel is to go to its website and explore its loyalty program, where you'll inevitably find resources on how you can both earn and redeem miles.
For instance, if the 18-month expiration deadline is approaching on your American Airlines (AAL) AAdvantage miles, a quick trip to the airline's website reveals a number of retail partners with whom you can earn AAdvantage miles, including flower delivery services, DirecTV and a half-dozen rental car companies. Or, if you wanted to spend a few miles, you could buy gift cards to use at popular retailers, such as Macy's (M) or Sears (SHLD), purchase a magazine subscription or even donate your miles to charity.
Remember that most of these redemptions are not the best use of your miles, as you can get much greater value by using them for travel. Your only goal with these particular redemptions is to extend the expiration date. Since any activity in your mileage account will reset the clock, you're likely better off spending just 300 miles on a 12-month subscription to Travel + Leisure instead of thousands of miles on retail gift cards.
Earn When You Shop
Shopping portals are another way to create activity in your mileage account. If you've got an online purchase to make at a mainstream retailer, consider doing it through an airline or hotel shopping portal. You'll not only pick up additional miles, but also create activity in your mileage account, all without spending a penny more than you would have otherwise.
The same is true of dining programs, which are partnerships between major U.S. airlines and restaurants that reward you with extra loyalty miles when you dine out. By signing up for these programs and linking your credit cards to them, you'll find yourself earning extra miles without any additional effort and pushing those expiration dates further down the road every time you grab a meal.
Remember: Credit Card Miles Count, Too
To circle back to the previous example, if you were concerned about keeping your AAdvantage miles from expiring, you could apply for an American Airlines-affiliated credit card. For each month you spent money on the card and earned miles, the expiration date on all your AAdvantage miles would reset.
Or, if you participate in one of the bank rewards programs that allow direct transfers to airline and hotel loyalty programs, such as Chase Ultimate Rewards or American Express Membership Rewards, a transfer of points to your airline or hotel account is also considered activity. Although you usually have to transfer a minimum of 1,000 points, in some cases it's possible to transfer as little as one mile from these programs, meaning just one mile could extend the expiration date on all your miles by more than a year.
Transfer Your Miles
If all else fails, it is possible to transfer points and miles from one loyalty program to another using Points.com, which is an exchange for loyalty currencies where people can buy, sell and trade airline and hotel points. The transfer rates are terrible, so it's not advisable to do this on a regular basis. But if you've exhausted all other options and are desperate to keep your miles alive, it's better to lose a few miles by transferring them versus losing a ton of miles by letting them expire. If you do choose this option, keep the number of points you exchange to a minimum.
Buy Miles or Pay for Reactivation
As a last resort, you can either buy miles directly from the airline or pay to get your miles reactivated after they've expired. In certain extreme cases, these options may be worthwhile, but both of these methods will likely cost you more than the miles are worth.
Julian Mark Kheel learned the ins and outs of travel loyalty programs while flying more than 200,000 miles a year as a TV producer and director. He takes a contrarian view on travel wisdom in his "Devil's Advocate" series every Thursday at Travel Codex.
Saul Loeb, AFP/Getty ImagesWorkers at the National Cybersecurity and Communications Integration Center in Arlington, Va.By Warren Strobel
WASHINGTON -- The U.S. government is creating a new agency to monitor cybersecurity threats, pooling and analyzing information on a spectrum of risks, a senior Obama administration official said Tuesday.
The Cyber Threat Intelligence Integration Center will be an "intelligence center that will 'connect the dots' between various cyber threats to the nation so that relevant departments and agencies are aware of these threats in as close to real time as possible," the official said on condition of anonymity.
Obama has moved cybersecurity to the top of his 2015 agenda after recent hacking attacks against Sony Pictures (SNE), Home Depot (HD), Anthem (ANTM) and Target (TGT) and the federal government itself.
The Democratic president sees it as an area of cooperation with the Republican-led Congress.
Various federal agencies have cybersecurity components, including the National Security Agency, Department of Homeland Security, the FBI and the CIA.
No existing agency has the responsibility for performing these functions, so we need these gaps to be filled to help the federal government meet its responsibilities in cybersecurity.
The Obama administration is trying to connect the agencies "so that there's one belly button for the entire U.S. government," Shawn Henry, president of CrowdStrike cybersecurity agency, said on the CBS "This Morning" program.
"That's a good strategy. It's important because there's so many different pieces of intelligence coming in. You've got to collaborate and put it together," he said.
The CTIIC will aim for "seamless intelligence flows among centers, including those responsible for sharing with the private sector," the official said.
The White House counter terrorism coordinator, Lisa Monaco, will announce the new center in an address on Tuesday.
The Obama administration likens the new agency to the National Counterterrorism Center established after the Sept. 11, 2001, attacks, following criticism that U.S. intelligence agencies weren't communicating with each other.
It will have a similar broad focus of providing "integrated, all-source analysis" of threats, the official said.
"No existing agency has the responsibility for performing these functions, so we need these gaps to be filled to help the federal government meet its responsibilities in cybersecurity," the official said.
Congress has tried for years to pass legislation to encourage companies to share data from cyberattacks with the government and each other, but efforts were stymied by liability issues and privacy concerns of citizens.
Last month, President Barack Obama proposed legislation to strike a balance, offering liability protection to companies that provide information in near real time to the government, while requiring them to strip it of personal data.
The Washington Post first reported the agency's creation.
NEW YORK -- Coca-Cola (KO) reported a better-than-expected profit Tuesday as it stepped up marketing and fetched higher prices for sodas in North America.
The world's biggest beverage maker has been struggling to boost global sales volume amid economic volatility overseas and an ongoing shift away from soda back at home.
To make up for weak volume gains, it's using a variety of tactics including a focus on "mini-cans" and smaller bottles in the U.S. that are positioned as premium offerings and help push up revenue.
For the quarter, Coca-Cola's overall soda volume in North America was flat, while volume for non-carbonated drinks rose 3 percent. Its "price/mix" for the region, which factors in the prices and sizes of its drinks, rose 4 percent.
"A lot of it was driven by the smaller cans, which are more premium-priced," said Kathy Waller, Coca-Cola's chief financial officer, in a phone interview.
Sales of the mini-cans alone, which still represent a tiny fraction of overall volume, rose 15 percent during the quarter, the company said. Coca-Cola is also significantly increasing marketing, including a double-digit percentage boost in media spending.
During a conference call, CEO Muhtar Kent said 2015 would be a "transitional year" as the company undergoes dramatic cost-cutting to improve results. But he nevertheless expressed optimism for growth; he noted that the average household consumes 26 beverages a day, and that only 1.4 of those are Coca-Cola brands.
To keep pace with changing tastes, Coca-Cola has also diversified and owns an array of brands including Honest Tea and Zico coconut water that better fit with prevailing health trends. It also recently began the national rollout of Fairlife, a pricier milk that promises more protein and less sugar.
Still, about 70 percent of Coca-Cola's global sales volume comes from carbonated soft drinks, according to Ali Dibadj, a Bernstein analyst.
For 2014, Coca-Cola said volume rose 2 percent, including a 1 percent boost in carbonated soft drinks. That was in line with its performance the previous year, and down from 2012.
The shift away from soft drinks in the U.S. comes amid a proliferation of options in the beverage aisle. Between 2001 and 2006, an internal study by Coca-Cola found that 30 percent of the industry's growth was driven by categories that hadn't existed five years earlier.
Health Concerns
Soda's image has also taken a beating from health advocates at home and overseas, who blame it for fueling weight gain. In Mexico, Coca-Cola said overall volume declined by 1 percent for the quarter, although it didn't specify how much soda volume fell. Performance in the country has been hurt by a tax on sugary drinks that went into effect last year.
Coca-Cola is also working on reducing costs by $3 billion a year to boost its financial results and have more money for marketing. Earlier this year, it said it was cutting up to 1,800 jobs as part of the push.
For the period ended Dec. 31, Coca-Cola said it earned $770 million, or 17 cents a share. Excluding one-time items such as unfavorable currency exchange rates and expenses related to its cost-cutting plan, it earned 44 cents a share. That topped the 42 cents a share analysts expected, according to Zacks Investment Research.
A year ago, it earned $1.71 billion, or 38 cents a share.
Total revenue slipped to $10.87 billion, but beat Wall Street expectations of $10.77 billion.
WASHINGTON -- Cheaper, better robots will replace human workers in the world's factories at a faster pace over the next decade, pushing manufacturing labor costs down 16 percent, a report Tuesday said.
The Boston Consulting Group predicts that investment in industrial robots will grow 10 percent a year in the world's 25-biggest export nations through 2025, up from 2 percent to 3 percent a year now. The investment will pay off in lower costs and increased efficiency.
Robots will cut labor costs by 33 percent in South Korea, 25 percent in Japan, 24 percent in Canada and 22 percent in the United States and Taiwan. Only 10 percent of jobs that can be automated have already been taken by robots. By 2025, the machines will have more than 23 percent, Boston Consulting forecasts.
As labor costs rise around the world, it is becoming increasingly critical that manufacturers rapidly take steps to improve their output per worker to stay competitive.
Robots are getting cheaper. The cost of owning and operating a robotic spot welder, for instance, has tumbled from $182,000 in 2005 to $133,000 last year, and will drop to $103,000 by 2025, Boston Consulting says.
And the new machines can do more things. Old robots could only operate in predictable environments. The newer ones use improved sensors to react to the unexpected.
In a separate report, RBC Global Asset Management notes that robots can be reprogrammed far faster and more efficiently than humans can be retrained when products are updated or replaced - a crucial advantage at a time when smartphones and other products quickly fade into obsolescence.
"As labor costs rise around the world, it is becoming increasingly critical that manufacturers rapidly take steps to improve their output per worker to stay competitive," said Harold Sirkin, a senior partner at Boston Consulting and co-author of the report. "Companies are finding that advances in robotics and other manufacturing technologies offer some of the best opportunities to sharply improve productivity."
Boston Consulting studied 21 industries in 25 countries last year, interviewing experts and clients and consulting government and industry reports.
The rise of robots won't be limited to developed countries with their aging, high-cost workforces. Even low-wage China will use robots to slash labor costs by 18 percent, Boston consulting predicts.
Increasing automation is likely to change the way companies evaluate where to open and expand factories. Boston Consulting expects that manufacturers will "no longer simply chase cheap labor." Factories will employ fewer people, and those that remain are more likely to be highly skilled. That could lure more manufacturers back to the United States from lower-wage emerging market countries.
After a long day at work, spending more time in the kitchen is the last thing many of us want to do. This is why batch cooking can be a great way to keep your household fed, without the daily stress on you and your budget. Here are a few tips that can help you make the most of your meals.
First, set aside one day over the weekend to cook. The food you make should yield enough dishes for about a week. Some foods that store well and are easy to make in bulk are: meats, soups and sauces, casseroles, veggies, grains and pasta.
Next, freezing is usually the best way to store and extend the life of your meals. Whenever possible, use freezer bags to save space. Just remember to label the date on there so you can keep track of things.
Now all you have to do is pick out your meal the evening before, put it in the fridge to defrost, and then simply reheat it when you get home. Even if you're not crazy about freezing entire meals, you can still store some key ingredients to your dinners to save money and prep-time.
One last way to maximize your batch cooking is to double your recipe. This is exactly what it sounds like. When you're making things like soups and casseroles, make twice as much and save yourself some work down the line.
Now while the concept is simple, watch out when it comes to spices and seasoning. These don't always react as well when doubling and you can ruin a good meal if you're not careful. For the best results, add your seasoning moderately, or better yet add them in once your meal is thawed and reheated.
So, if you're looking to slash your grocery bill and save hours of prep-time in the kitchen, give these tips a try. You'll see that while cooking in batch only takes a little effort, it can still yield big rewards.
Michael Conroy/AP
Coca-Cola (KO) is entering the premium milk market, hoping that a lactose-free dairy alternative can help it offset moribund sales of its namesake soda pop.
Fairlife is the name of the highly modified milk that, apart from appealing to folks who are lactose intolerant, is also modified to have more protein and less sugar than whole milk. That's a good thing, since sales of traditional milk have fallen sharply since 1970. Milk alternatives like Fairlife, on the other hand, are growing briskly.
Coca-Cola's move may or may not succeed, but the one thing we know is that it isn't really a surprise. The Atlanta-based beverage behemoth has been expanding beyond carbonated soft drinks for years as a way to compensate for soda consumption trends that find folks sipping fewer colas.
From the Odwalla purchase in 2001 to deepen its reach into fruit juices to the 2007 acquisitions of bottled-tea specialist Fuze and the $4.1 billion deal for the company behind Vitaminwater, Coca-Cola isn't afraid to cut a big check to diversify. Last year it took significant stakes in single-serve coffee champ Keurig Green Mountain (GMCR) and energy drink speedster Monster (MNST).
Making a play for premium milk isn't really a shock after Coca-Cola has bought its way into enhanced waters, juices, and energy drinks. If you can drink it, there's probably a Coca-Cola subsidiary playing a part, as long as it's not liquor.
Getting Ready to Pop
Coca-Cola posted another quarter of meandering financials on Tuesday. Net revenue declined 2 percent relative to the prior year's holiday quarter, as a hit on currency translations and structural items more than offset a 1 percent uptick in the unit volume of sparkling beverages and a 2 percent gain in noncarbonated products.
Coca-Cola's adjusted profit did beat Wall Street expectations, and that, along with experiencing at least marginal year-over-year growth in its carbonated beverages category, was enough to please the market. However, at the end of the day, the reason that Coca-Cola shares have closed higher for six straight years is that it continues to diversify.
There are now 20 brands in the Coca-Cola portfolio raking in at least $1 billion in net retail sales a year. Gold Peak tea, Fuze tea, and I Lohas mineral water recently became the last three additions to that elite club. Iced teas have been a hit worldwide for Coca-Cola, and I Lohas may not be a household name around here, but the mineral water is big in Japan.
Coca-Cola is naturally hoping that Fairlife stretches that club's enrollment to 21 brands. It won't happen overnight: Convincing folks to pay up for an enhanced dairy product could prove challenging. However, one can never underestimate Coca-Cola's reach. It has a thick Rolodex of chains and distributors, making it easier to get its product out there. With so much of its growth coming from non-soda brands, one has to wonder if the next step for Coca-Cola is a name change.
Motley Fool contributor Rick Munarriz owns shares of Keurig Green Mountain. The Motley Fool recommends Coca-Cola, Keurig Green Mountain and Monster Beverage. The Motley Fool owns shares of Monster Beverage and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. Want a sweet deal? Check out our free report on our favorite high-yielding dividend stocks.
NEW YORK -- A mix of positive earnings and corporate news boosted stocks Tuesday. Signs that Greece might be willing to broker a deal with its creditors also gave the market a lift.
Coca-Cola (KO) rose after the company reported a better-than-expected quarterly profit. General Motors (GM) gained after an activist investor said he would seek a seat on the company's board and push for a stock buyback.
Stock investors have had a bumpy ride since the start of the year.
The economic data is coming in OK, and when you delve into the big picture of the earnings reports, they're not bad.
The market slumped in January as the ongoing drop in oil prices hit energy stocks and amid worries about the prospects for global growth. Stocks have bounced back in February as energy stocks rose from their lows and on signs that the U.S. economy is maintaining its recovery. On Tuesday, stocks logged a solid gain even after a big drop in oil prices pushed the energy sector lower.
"The economic data is coming in OK, and when you delve into the big picture of the earnings reports, they're not bad," said Robert Pavlik, Chief Investment Strategist at Boston Private Wealth. "People want to be in the market when it starts to go back up."
The Standard & Poor's 500 index (^GSPC) rose 21.85 points, or 1.1 percent, to 2,068.59. The Dow Jones industrial average (^DJI) gained 139.55 points, or 0.8 percent, to 17,868.76. The Nasdaq composite (^IXIC) rose 61.63 points, or 1.3 percent, to 4,787.64.
Greek Deal Inches Closer
Investors were encouraged by signs that a deal could be reached between Greece and its lenders. The nation's new prime minister voiced confidence Monday that a compromise can be reached at high-stakes meetings in coming days.
Greece's stocks and bonds have taken a drubbing this year after the radical left-led government renewed a pledge to seek debt forgiveness and dubbed the country's rescue package, with its conditions of strict austerity, a "toxic fantasy."
"There's a growing sense that the two sides in the negotiations may be moving toward some compromise," said Quincy Krosby, a market strategist at Prudential Financial.
Energy stocks took a hit Tuesday after the International Energy Agency said that the recent rebound in oil prices "will be comparatively limited in scope." Analysts at Citigroup (C) said the upturn would likely to prove short-lived and predicted that rising inventory costs could push the price as low as $20 a barrel.
Oil dropped more than 5 percent, erasing three days of gains. Benchmark U.S. crude fell $2.84 to close at $50.02 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.91 to close at $56.43 in London.
Earnings Season
Among individual stocks, Coca-Cola was one of the day's winners after reporting a better-than-expected quarterly profit. The company trimmed costs and fetched higher prices for its drinks in North America.
The world's biggest beverage maker has been struggling to boost global sales amid tepid growth overseas and a shift away from soda back at home. The company's stock rose $1.17, or 2.8 percent, to $42.40.
General Motors rose after Harry Wilson, a former hedge fund manager and one-time member of the Obama administration's task force that helped to restructure GM and Chrysler in 2009, said he'll seek a seat on GM's board at the automaker's annual meeting this summer and will push for an $8 billion stock buyback to take place next year. Wilson is acting with the backing of a variety of hedge funds.
GM rose $1.52, or 4.2 percent, to $37.52.
U.S. government bond prices were little changed. The yield on the benchmark Treasury note was flat at 1.98 percent.
The dollar strengthened to 119.43 yen from 118.58 yen Monday. The euro declined to $1.1313 from $1.1330.
In metals trading, gold fell $9.30 to $1,232.20 an ounce, silver fell 20 cents to $16.87 an ounce and copper fell three cents to $2.55 a pound.
In other energy futures trading on the NYMEX:
Wholesale gasoline fell 2.6 cents to close at $1.552 a gallon.
Heating oil fell 4 cents to close at $1.833 a gallon.
Natural gas rose 8 cents to close at $2.677 per 1,000 cubic feet.
What to watch Wednesday:
The Treasury Department releases the federal budget for January at 2 p.m. Eastern time.
These selected companies are scheduled to release quarterly financial results:
Marcio Jose Sanchez/APApple CEO Tim CookBy Christina Farr
SAN FRANCISCO -- Apple is investing $850 million to help build a solar farm in California in partnership with solar panel-maker First Solar, Chief Executive Officer Tim Cook said Tuesday.
The project in Monterey County, California, will provide enough energy for 60,000 homes as well as Apple's future head office in nearby Cupertino, Cook said at a Goldman Sachs (GS) technology conference in San Francisco.
"We know in Apple that climate change is real. The time for talk is passed," he said. "The time for action is now."
First Solar, based in Tempe, Arizona, manufactures solar panels and also builds solar power plants, many of which it sells to power producers.
Construction of the 2,900-acre California Flats Solar Project is expected to start in mid-2015 and finish by the end of next year, First Solar said in a statement.
Apple will receive electricity from 130 megawatts of capacity under a 25-year purchase agreement, the largest in the industry to provide clean energy to a commercial end user, First Solar said. Output of the project's remaining 150 megawatts will go to Pacific Gas and Electric Co. (PCG).
Apple already uses renewable energy to power its data centers. Last week, it said it would invest $2 billion over 10 years to convert a failed sapphire glass plant in Arizona into a data center that would be powered mostly by solar energy.
"Apple still has work to do to reduce its environmental footprint, but other Fortune 500 CEOs would be well served to make a study of Tim Cook," Greenpeace said in a statement following Tuesday's announcement.
Shares of Apple (AAPL) ended up 1.92 percent at $122.02.
First Solar's (FSLR) stock rose 3 percent in extended trade after closing up 4.77 percent at $48.54.
Early retirement is a dream for those who don't like their job. But as tempting as early retirement might be, it's not always the best option. Retiring early could obviously have a negative impact on your finances, but also on your social life and even your health. Here's why it's not always a good idea to retire early.
1. It Might Be Bad for Your Health
Retirement could contribute to declines in your physical and mental health. A 2013 study from the Institute of Economic Affairs in the United Kingdom found that retirement increases the probably of having at least one diagnosed physical condition by 60 percent and suffering from clinical depression by 40 percent. And the negative effects grow over time as the number of years spent in retirement increases. Retirees don't always have a reason to get up and go somewhere, and that could lead to a sedentary lifestyle that reduces their level of physical health.
2. It's More Difficult to Maintain Friendships
A lot of socialization occurs on the job or after work, and workplace friendships sometimes fade away when you retire. It takes more effort to meet people in retirement, and some retirees lack social interaction, which can contribute to deteriorating mental and emotional health.
3. You Could Lose Your Health Insurance
Retiring early means you no longer have access to the health plan offered by your employer. If you retire before you qualify for Medicare, you will have to find private health insurance to cover you until you turn 65. The website healthcare.gov can connect you to the health insurance marketplace in your state, but you'll have to do some research to pick an appropriate plan and, of course, pay the premiums. Going without health insurance carries the double risk of incurring significant health care bills if you develop a serious condition and the possibility of a tax penalty for going without health insurance.
4. You Could Run Out of Money
An earlier retirement means a longer time relying on your assets and a greater chance that you will run out of money. If you don't have a solid nest egg or a way to supplement your income with part-time work or your own business, there is a chance that you will wind up in financial trouble. Unless you have a good way to manage your money and cut costs, you need to be careful about retiring early. Stock market shocks, increased costs and other financial issues could be devastating to your retirement savings. It's much easier to fund a 20-year retirement than a 40-year retirement.
5. Your Life Might Lack Purpose
Another consideration is what you will do all day without your job. Many retirees find it difficult to find a purpose. While a few weeks of down time will certainly be relaxing, then you need to decide what you will do each day that gives your life meaning.
6. Your Spouse Might Have Other Plans
Another problem arises when you retire early, but your significant other doesn't. The fact that you are in two different places with your lives can result in challenges for your relationship. Some people like to coordinate retirement with their spouse so that they have someone to spend time and share adventures with.
How to Retire Early the Right Way
Of course, these early retirement problems can be overcome with the proper planning. The key to a successful retirement is figuring out what you want to accomplish with your life during retirement, creating a retirement planning checklist and developing a thoughtful plan to accomplish your goals.
In order to make early retirement work, you need to look ahead and decide what you will do with the extra time. You might want to travel, volunteer or devote more time to your family.
You can also use early retirement as a way to do work you enjoy, and do it on your own terms. If you use the time to start a business you will have more income, can afford health insurance and have a new purpose all at the same time. In some cases you could also include your significant other in your business venture.
Just quitting a job isn't usually enough for most people. Instead, your early retirement needs to have a purpose, and it needs to be properly funded. If you are able to put that together, you will be more likely to succeed.
Jeff Rose is a certified financial planner, U.S. combat veteran and the founder of GoodFinancialCents.com.
After a long day at work, spending more time in the kitchen is the last thing many of us want to do. This is why batch cooking can be a great way to keep your household fed, without the daily stress on you and your budget. Here are a few tips that can help you make the most of your meals.
