2012 TLC_Manuf_Dist_A&D

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Tax Leadership Conference
Manufacturing, Distribution and A&D

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  • The goal of the session is to help you learn triggers to listen for, questions to gain more information, and how to get the right GT people in front of the client.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • This slide summarizes the manufacturing trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.Of course we have also listed the most likely GT services that would apply to the critical issues that our manufacturing clients are facing.On/near-shoring – the days of "labor arbitrage" for "un-sklilled labor" are largely over. We won't get back much of what is gone but there will be less of this since "skilled labor" is what is in demand. Some repatriation of laborers is occurring. Compression of supply chain – manufacturers closer to customer, suppliers closer to manufacturers – serve local customers – not overseas customers. Rising transportation costs due to high energy costs and time spent on the boat make local production attractive.Despite what I said, the cheap dollar make US products more competitive – emerging markets present greater opportunities for US manufacturers – so if your client is not selling to these markets ask them – "Why not"?Rising energy costs will also result in higher costs to produce and generally will lead to higher commodity raw material costs.Despite research that demonstrates that CAP EX and IT expenditures produce a quick ROI – fundamentally cautious CEO hold back.Shortage of skilled labor leaves jobs unfilled – NAM with the Manufacturing Institute is working with Junior Colleges to train post high school students with a formal "certification" program.Reliability of suppliers is the NUMBER 1 concern of manufacturers – this is exactly why the it is important to be VERY close with your suppliers – partner with them – share production and sales forecasts.Impact of Healthcare Reform will be felt in 2014 – past the "age 26" inclusion.Export controls – meant to impede selling "national secrets" in time of war – outdated – holding back shipments of everyday goodsIP rights and rule of law is biggest concern of US CEOs who do business in China – not labor or currencyRep of Congo – conflict mineralsPartner with your suppliers.
  • Ask – and list responses on flip chart
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you
  • Ask questions and list responses on flip chart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Be interactive with the audience ---- what questions should we be asking a client/prospect?What bottlenecks and issues in existing processes decrease your internal effectiveness and impact your ability to serve customers?What non-value added activities and manual tasks should and can be eliminated?Do we have the right people in the right positions, and the optimal organization design, to support our processes?Are we using technology effectively and are our systems scalable for growth?Do we have the right individual and organizational performance metrics?
  • Ask question and list responses on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Be interactive with the audience ---- what questions should we be asking a client/prospect? Do you use tin, tungsten or gold in production? Do you know where your supplier sources it from?
  • Ask question and write answers on flip chart
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Be interactive with the audience ---- what questions should we be asking a client/prospect?Are you doing business in California? And, do you have annual global gross receipts in excess of $100 million?Are you aware that you will be required to make certain disclosures on your website about your efforts to eradicate slavery and human trafficking from their direct supply chains for goods offered for sale?
  • Ask question and list answers on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Be interactive with the audience ---- what questions should we be asking a client/prospect?How would you rate the effectiveness of your whistleblower program?Do you have an anti-corruption compliance program in place?
  • Ask question and list answers on flip chart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Ask "What questions should we be asking a client/prospect?Do you get adequate and/or accurate reports to support key management decisions and processes (strategic and/or operational)?Do you have extensive manual processes or spreadsheets to "cobble together" reports?Do your key metrics reflect different values, depending on which report one is looking at --- one version of the truth simply does not exist?
  • This should be a softball for this crowd. Answers limited to SALT or International professionals.Ask and list answers on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Ask "What questions should we be asking a client/prospect?"What has your company done related to the new repair regulations?Has your company previously filed an accounting method change regarding repairs?What is the financial statement value of your long-life property?For tax purposes, "How do you typically account for expenditures related to building repair and maintenance?
  • Ask question and list responses on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"Ask "What questions should we be asking a client/prospect?Has the cost of inventory (particularly raw materials) increased significantly in the past year (i.e. over 10%)?If the client is on FIFO and did not consider LIFO due to complexity of calculation, are they aware of the simplified methods provided by the IPIC regulations? Does the company have a book inventory reserve that is disallowed for tax purposes (i.e., Schedule M adjustment for the reserve)?Are reserved inventories impaired in any way vs. simply being excess goods based on sales projections?
  • Ask and list answers on flip chart
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Be interactive with the audience ---- what questions should we be asking a client/prospect?What are your plans for establishing/increasing your international presence?How do international acquisitions factor into your growth strategy?
  • This slide summarizes the distribution trends and critical issues for CEOs and CFOs.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.DC's closer to customer – quicker delivery consistent with shortening the supply chain and a bit of a reversal from Mega-distribution center.Major opportunity for margin growth is for Distributors to provide additional services – tagging assembly, kitting are easy – NOW inventory management, drop-shipments, combining shipments is expectation – "What else can you do that customer CAN'T, WON'T or DOESN'T want to do?Critical assessment of customers – raise prices, increase services, cut unprofitable customers3PL – new competitor - much greater scrutiny of distributor by manufacturer and retailer – capability assessment.High energy costs impact logistics, transportation considerations to a much larger degree.Sole source supplier – a thing of past?Warehouse availability – real estate fallout – mixed reports Given increase selling of services – is sales force skill set appropriate? Training needs? Lots of regulations – NLRB issued a rule in 2011 requiring private businesses to post a very specific “Notice of Employee Rights Under National Labor Relations Act” which explains an employees’ right to organize, which may not be modified, thus not allowing any mention of their right not to be represented by or join a union. While this is currently being challenged, it is effective April 30, 2012.OSHA’s “Injury and Illness Prevention Program” (I2P2) would require employers to develop a new safety plan even if old plan produced a perfect record.EEOC – limits use of "background checks" – Facebook crowd is not protected!GT Services: Very Similar to Manufacturing – will point out 2-3 additionalForklifts – propane tanks – 50 cents per gallon – credits can be huge.ABC – Activity based consultingCustomer relationship management, Sales Force Automation, WH Management systems selection and installation.
  • Ask question and write answers on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?Are you familiar with the propane tax credit?Do you use propane to power your forklifts?How many forklifts do you have in operation?Did you include the propane tax credit as taxable income?
  • Ask question and write responses on flipchart.
  • Be interactive with the audience ---- what questions should we be asking a client/prospect?Do you currently have a item/product in production that you are looking to quantify or reduce its cost? An activity-based system can focus efforts.Look for clues when speaking with a client/prospect that might lend itself to ABC Consulting projects. The most frequently reported benefits include:Useful for product decisions, such as pricing, design, and outsourcing.Helpful for product / service profitability analysis.Helpful for making operational improvements.Useful for performing budgeting, planning, and performance evaluation.
  • Ask question and write responses on flip-chart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?Are your current systems providing the information you need to manage your business?
  • Ask question and document responses on flipchart.
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?Have you analyzed your current health care plan and applied all the provisions?
  • Ask question and document on flip-chart
  • List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • This slide summarizes the A&D trends and critical issues for CEOs and CFOs that we discussed earlier.We just put them into the PDM buckets. We have also added a section for some of the key "legislative" matters that your clients are probably following and you should be prepared to discuss with them.NLRB issued a rule in 2011 requiring private businesses to post a very specific “Notice of Employee Rights Under National Labor Relations Act” which explains an employees’ right to organize, which may not be modified, thus not allowing any mention of their right not to be represented by or join a union. While this is currently being challenged, it is effective April 30, 2012.OSHA’s “Injury and Illness Prevention Program” (I2P2) would require employers to develop a new safety plan even if old plan produced a perfect record.GT Services: Very Similar to Manufacturing – will point out 2-3 additionalCAMP – defer tax, enhance cash flowsPI/MI – M&A is hot. TAS/BAS due diligenceHealthcare Diagnostic - $5,000 to assess clients compliance and identify opportunitiesForklifts – propane tanks – 50 cents per gallon – credits can be huge.Business Analytics – customer stratification, inventory management, price optimization - Turn raw data into actionable informationABC – Activity based consultingCustomer relationship management, Sales Force Automation, WH Management systems selection and installation.
  • Ask question and document responses on flipchart.
  • ImpactWithheld paymentsDebarmentFalse Claims Act violations List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Ask question and document responses on flipchart.
  • ImpactWithheld payments determined by contracting officerAccounting, estimating, purchasing, EVMS, material management, property managementList responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Ask question and document responses on flipchart.
  • ImpactViolation of Foreign Corrupt Practices Act (CPA)Tax liabilitiesList responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • ImpactChanging managementDistractions
  • Ask question and document responses on flipchart.
  • ImpactExposure to FAR / DFARNew IT requirementsList responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Ask question and document responses on flipchart.
  • ImpactExposure to FAR / DFARNew IT requirementsGSA registration and schedules
  • Ask question and document responses on flipchart.
  • ImpactCorporate strategyRefer to highlights of Defense Budget HighlightsReview for areas which directly affect your clients and engage them in a conversation on how the budget will impact their operations. List responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Ask question and document responses on flipchart.
  • ImpactPlanningFundingAccounting methodsTaxList responses and direct answer to those listed.Ask "Are any of these surprising to you?"What questions should we be asking our clients?
  • Program Leaders: This is your opportunity to get feedback on your session. To increase response rates:Make sure you get to this slide and leave it up for participants. Encourage participants to submit feedback for your breakout.
  • 2012 TLC_Manuf_Dist_A&D

    1. 1. Consumer and Industrial Products - Manufacturing,Distribution and Aerospace & Defense2012 Tax Leadership ConferenceMay 16 -17, 2012© 2012 Grant Thornton LLP. All rights reserved.
    2. 2. Learning objectives• Discuss tax legislation and the effect on the outlook of the manufacturing industry• Recognize current industry sector issues and related business risks with clients• Enhance business discussions with your clients (Purple Page Approach)• Identify triggering events that indicate a client need for Grant Thornton services• Introduce the appropriate service line professionals to our clients to address client needs, issues and risks© 2012 Grant Thornton LLP. All rights reserved. 2
    3. 3. Agenda• The (uncertain) tax legislative outlook for manufacturers• Business discussions with impact and trigger events – Manufacturing – Distribution – Aerospace & Defense© 2012 Grant Thornton LLP. All rights reserved. 3
    4. 4. Introduction Dorothy Coleman Vice President of Tax and Domestic Economic Policy National Association of Manufacturers (NAM) Washington, DC© 2012 Grant Thornton LLP. All rights reserved. 4
    5. 5. Introduction to Grant Thornton Professionals Wally Gruenes Lou Crenshaw Natl Managing Partner, CIP A&D Practice Leader Manufacturing and Distribution Alexandria, VA Practice Leader Dallas, TX Kullen Birkeland Mario Bonilla Manufacturing and Distribution A&D Tax Practice Leader Tax Practice Leader Wichita, KS Los Angeles, CA Don Dismuke Manufacturing and Distribution Tax Practice Leader Southfield, MI© 2012 Grant Thornton LLP. All rights reserved. 5
    6. 6. The (uncertain)Tax Legislative Outlook for Manufacturers Dorothy Coleman Vice President, Tax and Domestic Economic Policy National Association of Manufacturers May 2012
    7. 7. Manufacturing Business Outlook 100% 89.1% 88.7% 90% 86.4% 86.1% 84.8% 81.9% 80.2% 78.4% 78.5% 80% 74.0% 73.1% 71.6% 69.6% 70% 65.4% 60% 52.8% 47.6%46.3% 50% 40%Source: NAM/Industry Week Survey of ManufacturersNote: Percentage of respondents who characterized the current business outlook at somewhat or verypositive. Percentages are annual averages. Q4:2010 and Q1:2011 data are imputed from comparable datausing a regression model.
    8. 8. Primary Current Business Challenges, First Quarter 2012 Unfavorable business climate 62.2% (e.g., taxes, regulation, etc.) Rising energy and raw material costs for 60.0% our products Rising insurance costs 42.5% Weaker domestic economy, sales for our 41.9% products Attracting and retaining a quality 39.1% workforce Increased international competition 23.7% Challenges with access to capital or other 8.2% forms of financing Other 7.2%Source: NAM/Industry Week Survey of ManufacturersNote: Respondents were able to check all that apply. Therefore, responses exceed 100 percent.
    9. 9. Short-Term: May 2011Few Tax Issues in Play: • “Extenders”” • Bonus Depreciation/Expensing • Pension Funding Stabilization
    10. 10. Looming Ahead: The $600 B Fiscal Cliff $84.79 2001 and 2003 Tax Cuts $165.75 Temporary Payroll Tax Cut $90.00 Alternative Minimum Tax (AMT) Patch Spending Cuts from Sequestration $118.75 $124.64 Other Tax Increases from Expiring Provisions
    11. 11. The $600 B Fiscal Cliff “ …if no action were…taken by the fiscalauthorities, the size of the fiscal cliff is such…there’s absolutely no chance that the Fed could or would have any ability to offset,whatsoever, that effect on the economy….” Federal Reserve Chairman Ben Bernanke April 25, 2012
    12. 12. The $600 B Fiscal Cliff Expirations of the 2001-03 Tax Relief: • Individual Tax Rates • Estate Tax • Tax on Investment Income • Marriage Penalty • Child Tax Credit
    13. 13. The $600 B Fiscal Cliff Other Tax Provisions: • Payroll Tax Cut • AMT Patch • Tax Cuts from 2009 Stimulus • 2011 Expiring Provisions • Enhanced Expensing
    14. 14. The $600 B Fiscal Cliff The Sequester • A-T-B Cuts: 50% defense; 50% nondefense • Medicaid, Medicare beneficiaries exempt • Medicare providers covered • Effective 1/13 for FYs 2013-2021
    15. 15. Tax ReformNAM Priorities: Corporate Tax Rate of 25 % or lower Permanent, strengthened R&D credit Territorial tax system Permanent lower tax rates for small business
    16. 16. Tax ReformChairman’s Camp’s Proposal (October 2011) 95% Dividend-Received Deduction 25 Percent Corporate Tax Rate Expanded Subpart F Thin Capitalization Rules Mandatory Repatriation
    17. 17. Tax ReformPossible Options: Lower corporate tax rate Base-broadening R&D incentive Territorial System Add-on Tax ?
    18. 18. Tax ReformOpen Issues: Revenue Neutral Both individual & corporate tax reform Timing Transition
    19. 19. Possible Scenarios for 2012 Mid- 2012 Tax Bill Movement on Tax Reform “Kick the Can” until 2013 Mega “End of the Year” Deal Nothing
    20. 20. Key Factors The Economy – Jobs – Manufacturing – Financial Markets Election 2012 – White House – Congress
    21. 21. Thank You Dorothy ColemanVice President, Tax and Domestic Economic Policy National Association of Manufacturers dcoleman@nam.org (202) 637-3077
    22. 22. Manufacturing© 2012 Grant Thornton LLP. All rights reserved.
    23. 23. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 23
    24. 24. Source: Bloomberg Businessweek© 2012 Grant Thornton LLP. All rights reserved. 24
    25. 25. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 25
    26. 26. “The biggest time in the life cycle of getting a shoe to the U.S. market is the time it spends on a boat coming from Asia.” – Matt Powell, SportsOneSource© 2012 Grant Thornton LLP. All rights reserved. 26
    27. 27. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 27
    28. 28. Measuring, evaluating and partnering with suppliers for competitive advantage How close do you stay to your suppliers? % of Manufacturers Cost, Quality, and Delivery 38.6% Strategic Planning and Identifying and Responding to New Markets 3.8% Continuous Improvement, and Product Development Efforts 16.6% Trust and Flexibility 30.0% Total Acquisition Cost 11.0% 0 10 20 30 40 50 Source: Next Generation Manufacturing Study, the MPI Group, 2011 © 2012 Grant Thornton LLP. All rights reserved. 28
    29. 29. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 29
    30. 30. Apple report puts spotlight on overseas factory conditions© 2012 Grant Thornton LLP. All rights reserved. 30
    31. 31. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 31
    32. 32. © 2012 Grant Thornton LLP. All rights reserved. 32
    33. 33. Business Discussions with ImpactManufacturing Strategy/Process/Structure Legislative Matters • On/near-shoring • Tax reform • Compression of Supply Chain • Export Controls • Revenue growth – exports, services • Information Security and IP rights • High energy costs • EPA overregulation • Rising transportation costs • Conflict Minerals • Underinvestment in Cap Ex and IT People/Culture GT Services • Shortage of skilled talent • CAMP – Repair Regs, Accounting • Reliability of Suppliers methods • Impact of Healthcare Reform (2014) • TAS • Supply Chain Compliance • Propane tax credit • Transfer Pricing Studies • Business Intelligence© 2012 Grant Thornton LLP. All rights reserved. 33
    34. 34. Trigger event: Acquisitions or divestituresWhat service opportunities do the following present? Acquisition or divestiture of a company© 2012 Grant Thornton LLP. All rights reserved. 34
    35. 35. Trigger event: Acquisitions or divestituresWhat can GT do to help companies?• TAS – Financial Due Diligence• BAS – Operational Due Diligence and Merger Integration• FVS – Purchase Price Allocation• Tax Structuring of Transaction – Federal, International• SALT – Real Property Transfer Taxes, Payroll Taxes, Property Tax• International Tax - International tax consulting, & global tax complianceWho do I contact?• Regional TAS Leader • Tax Practice Leader• Regional BAS Leader • SALT Practice Leader• Regional FVS Leader • International Tax Practice Leader© 2012 Grant Thornton LLP. All rights reserved. 35
    36. 36. Trigger event: Poor operating performanceWhat service opportunities do the following present? Operating performance below peer benchmarks© 2012 Grant Thornton LLP. All rights reserved. 36
    37. 37. Trigger event: Poor operating performanceWhat can GT do to help companies? • APQC Benchmarking • Performance Improvement – analytics, process, finance function, procurement • Software Solution SelectionWho do I contact?Regional BAS Leaders:• Scot Glover – West • Steve Siemborski – Midwest• Kris Ruckman – Southeast • Michael Rose – Northeast• David Hazels– Central© 2012 Grant Thornton LLP. All rights reserved. 37
    38. 38. Trigger event: Conflict mineralsWhat service opportunities do the following present? Use of tin, tungsten or gold in products held for sale© 2012 Grant Thornton LLP. All rights reserved. 38
    39. 39. Trigger event: Conflict mineralsUse of tin, tungsten or goldUse of minerals such a tin, tungsten, gold and others sourced from the Republicof Congo and surrounding countries are referred to as "Conflict Minerals." UnderDodd-Frank, public companies will be required to report whether they are usingsuch conflict minerals in their products and what they are doing to verify.What can GT do to help companies? • Supply Chain Due Diligence • Supplier AuditsWho do I contact?• Jim Welsh, NE Region Leader • Chip Schweiger, Central Region Leader• Jason Rogers, SE Region Leader • Anthony Leung, West Region Leader• Jeff French, MW Region Leader • Dorsey Baskin© 2012 Grant Thornton LLP. All rights reserved. 39
    40. 40. Trigger event: Manufacturer doing business inCaliforniaWhat service opportunities do the following present? Manufacturer doing business in California who has annual global gross receipts in excess of $100 million© 2012 Grant Thornton LLP. All rights reserved. 40
    41. 41. Trigger event: Manufacturer doing business in CaliforniaCalifornia Transparency Act in Supply Chain ActUnder this Act, companies must disclose what efforts they are making towarderadicating slavery and human trafficking from their direct supply chains.What can GT do to help companies? • Supply Chain Due Diligence • Supplier AuditsWho do I contact?• Jim Welsh, NE Region Leader • Chip Schweiger, Central Region Leader• Jason Rogers, SE Region Leader • Anthony Leung, West Region Leader• Jeff French, MW Region Leader • Dorsey Baskin© 2012 Grant Thornton LLP. All rights reserved. 41
    42. 42. Trigger event: Allegation of illegal actWhat service opportunities do the following present? Allegation of illegal act by an officer or agent of the company© 2012 Grant Thornton LLP. All rights reserved. 42
    43. 43. Trigger event: Allegation of illegal actWhat are we doing to help companies? • Anti-corruption compliance services and transaction monitoring • Anti-corruption due diligence services • FCPA investigationsWho do I contact?• Gary Goldman (NE Region FVS Leader)• Dave Wedding (SE Region FVS Leader)• Bryan Benoit (Central Region FVS Leader)• Mark Sullivan (MW Region FVS Leader)• Massimo Messina (West Region FVS Leader)• Bill Olsen, McLean© 2012 Grant Thornton LLP. All rights reserved. 43
    44. 44. Trigger events: Disparate data and inaccuratereports reportsWhat service opportunities do the following present?• Reports not accurate and/or not timely• ERP and disparate transaction systems not integrated• Using disparate reporting technologies and/or spot solutions© 2012 Grant Thornton LLP. All rights reserved. 44
    45. 45. Trigger events: Disparate data and inaccuratereportsWhat are we doing to help companies? Business intelligence/analytics • Turns raw data into actionable information (e.g. enhanced customer insight, internal process and performance improvement, procurement efficiency) • Executive dashboards, metrics/KPIs • ScorecardsWho do I contact?• Tony Hernandez, Philadelphia© 2012 Grant Thornton LLP. All rights reserved. 45
    46. 46. Trigger events: Property additions, Repairs topropertyWhat service opportunities do the following present?• Property additions• Repairs to property© 2012 Grant Thornton LLP. All rights reserved. 46
    47. 47. Trigger events: Property additions, Repairs to propertyWhat can GT do to help companies? • New Repair Regulations effective 1/1/2012 • Cost Segregation StudyWho do I contact? Regional Corporate SFTS Leader • Mark Andrus – West • Rick Stezenski – Midwest • Joe Brown – Southeast • Jim Wittmer – Northeast • Janet Wong – Central© 2012 Grant Thornton LLP. All rights reserved. 47
    48. 48. Trigger events: Inventory & A/R Bad debt reserveWhat service opportunities do the following present? • Inventory Valuation Reserves (LCM, E&O) • LIFO Inventory Method • A/R Bad debt reserve© 2012 Grant Thornton LLP. All rights reserved. 48
    49. 49. Trigger events: Inventory & A/R Bad debt reserveAccounting MethodsWhat can GT do to help companies? • Some of these inventory reserves can be deducted currently • IPIC – higher inflation for LIFO inventory • Some portions may be currently deductible if specific accounts are reserved (i.e. not general or formula reserve)Who do I contact? Regional Corporate SFTS Leader • Mark Andrus – West • Joe Brown – Southeast • Janet Wong – Central© 2012 Grant Thornton LLP. All rights reserved. 49
    50. 50. Trigger events: Acquisition or expansion in a stateWhat service opportunities do the following present? Acquisition or expansion in a state© 2012 Grant Thornton LLP. All rights reserved. 50
    51. 51. Trigger events: Acquisition or expansion in a stateWhat can GT do to help companies? • Perform a reverse sales tax audit utilizing proprietary software • Investigate whether there are credits to be obtained for new employment/building expansion • Look for real/personal property tax valuation/exclusion benefitsWho do I contact?Regional SALT Practice Leader• Scot Grierson – West • Brian Murphy– Midwest• Mike Stoke – Southeast • Matt Melinson– Northeast• John Laborde – Central© 2012 Grant Thornton LLP. All rights reserved. 51
    52. 52. Trigger event: Transfer/sale of inventory to/fromCompany locations outside the USWhat service opportunities do the following present? Transfer/sale of inventory to/from Company locations outside the US© 2012 Grant Thornton LLP. All rights reserved. 52
    53. 53. Trigger event: Transfer /sale of inventory to/fromCompany locations outside the USWhat are we doing to help companies? • Transfer pricing study to satisfy US and foreign taxing jurisdictionsWho do I contact?• David Bowen (Washington, DC)© 2012 Grant Thornton LLP. All rights reserved. 53
    54. 54. Industry resources and trainingThought Leadership• Five factors for manufacturing growth in an uncertain economy• Manufacturing Executive Summary• A well-oiled machine: Maximizing machinery and equipment opportunities, minimizing risks• Supply Chain Insights (formerly Supply Chain Solutions)• International taxation for manufacturing: A comparative reviewTraining• Manufacturing Basic Industry Training• Manufacturing Intermediate Industry Training (Summer/Fall 2012)© 2012 Grant Thornton LLP. All rights reserved. 54
    55. 55. Other resources• KSource – Timely business discussion topics – Performance Driver Review questions• IBIS World (includes sample questions)• NAM.org• Industry Week Magazine© 2012 Grant Thornton LLP. All rights reserved. 55
    56. 56. Questions?© 2012 Grant Thornton LLP. All rights reserved. 56
    57. 57. DistributionWally GruenesNational Distribution Practice Leader© 2012 Grant Thornton LLP. All rights reserved.
    58. 58. Business Discussions with ImpactDistributionStrategy/Process/Structure Legislative Matters• More DCs closer to customer • NLRBs "Notice of Employee Rights"• More "services" demanded (April 30, 2012)• Increased use of analytics • OSHA’s “Injury and Illness Prevention• 3PL Competition Program” (I2P2)• High energy costs • EEOC is considering limiting the use of• Disruption in supply chain “background checks” on prospective• Excess warehouse space is available: good employees. time to buy/enter into long-term leasesPeople/Culture GT Services• Evolution of inside/outside sales • CAMP – Repair Regulations, professionals Accounting methods• Healthcare and other benefits • TAS• Employee retention is key in 2012 • Supply Chain Compliance • Propane tax credit • Business Intelligence • ABC consulting • CRM, SFA or WHS consulting© 2012 Grant Thornton LLP. All rights reserved. 58
    59. 59. Trigger event: Company utilizes industrial equipmentWhat service opportunities do the following present? Company utilizes industrial equipment (including forklifts and similar equipment)© 2012 Grant Thornton LLP. All rights reserved. 59
    60. 60. Trigger event: Company utilizes industrial equipmentAlternative Fuels Tax CreditWhat are we doing to help companies? • Sales of propane for use in forklifts and other industrial equipment remain exempt from federal excise tax and accordingly may be eligible for the 50 cent per gallon credit. • Refundable even if in a loss positionWho do I contact?• Randolph Smith, Charlotte© 2012 Grant Thornton LLP. All rights reserved. 60
    61. 61. Trigger event: Unknown profitabilityWhat service opportunities do the following present? Profitability of individual products or SKUs is unknown© 2012 Grant Thornton LLP. All rights reserved. 61
    62. 62. Trigger event: Unknown profitabilityActivity Based Costing Consulting What are we doing to help companies? • Activity Based Costing Who do I contact? • Brian Larsh, Milwaukee • Regional BAS Leaders: ‒ Scot Glover – West ‒ Steve Siemborski – Midwest ‒ Kris Ruckman – Southeast ‒ Michael Rose – Northeast ‒ David Hazels– Central© 2012 Grant Thornton LLP. All rights reserved. 62
    63. 63. Trigger events: Technology/organizational changesWhat service opportunities do the following present?• Any organization undertaking a substantial technology or organizational change• Upgrade/change in talent level or nature of sales force• Upgrade or replacement of existing applications (i.e. Warehouse Management)© 2012 Grant Thornton LLP. All rights reserved. 63
    64. 64. Trigger events: Technology/organizational changesSoftware selection and integration What are we doing to help companies? • CRM, SFA solutions selection and consulting Who do I contact? Regional BAS Leaders: • Scot Glover – West • Steve Siemborski – Midwest • Kris Ruckman – Southeast • Michael Rose – Northeast • David Hazels– Central© 2012 Grant Thornton LLP. All rights reserved. 64
    65. 65. Trigger event: Healthcare reformWhat service opportunities do the following present? Client/target does not use a nationally recognized Healthcare consultant© 2012 Grant Thornton LLP. All rights reserved. 65
    66. 66. Trigger event: Healthcare reformWhat are we doing to help companies? Healthcare Diagnostic Tool • Concise summary of the rules that apply to companys plan • List of actions that they are required to take • List of actions that aren’t mandatory, but may be desirable • List of key decisions that the company will need to makeWho do I contact?• Eddie Adkins, Washington, DC© 2012 Grant Thornton LLP. All rights reserved. 66
    67. 67. Trigger event: Company is a US subsidiary and hasa foreign parentWhat service opportunities do the following present? Company is a US subsidiary and has a foreign parent that may or may not be audited by Grant Thornton© 2012 Grant Thornton LLP. All rights reserved. 67
    68. 68. Trigger event: Company is a US subsidiary and hasa foreign parentAudit – IFRS Conversion What are we doing to help companies? • IFRS for Foreign-owned or foreign-listed Companies • IFRS for SEC registrants • IFRS for US nonpublic companies Who do I contact? • Nate Vander Hamm, Kansas City • April Little, Houston© 2012 Grant Thornton LLP. All rights reserved. 68
    69. 69. Industry resources to shape conversationsThought leadership• Supply Chain Insights (formerly Supply Chain Solutions)Other resources• K Source – Timely business discussion topics – Performance Driver Review questions• IBIS World (includes sample questions)• NAW.org• World Trade magazine© 2012 Grant Thornton LLP. All rights reserved. 69
    70. 70. Questions?© 2012 Grant Thornton LLP. All rights reserved. 70
    71. 71. Aerospace and DefenseLou CrenshawNational A&D Practice LeaderMario BonillaA&D Tax Practice Leader© 2012 Grant Thornton LLP. All rights reserved.
    72. 72. Business discussions with impactAerospace and Defense Business Issues Legislative Matters • Significant M&A activity expected in 2012 • STOCK Act may impact business operations • Sales in commercial aerospace gaining strength to • Counterfeit Parts legislation in FY12 NDAA offset shrinking Defense budgets creates significant burden and risk to • Defense Contract Audit Agency audit outcomes vendors can substantially affect revenue flow • New FAR and DFAR regulations included in • Focus on business system performance a key to FY12 NDAA audit success • Exec Comp legislation with $250K limit • Executive compensation limits now tied to all pending company executives Observations GT Services • Industry is cyclical, but in an upturn • M&A services • Slight to modest growth in: Civil aircraft deliveries. • Merger integration Reductions in military aircraft, missiles and space • Corporate Finance overview • Global economic crisis will temper overseas sales • Transaction Advisory Services • Employment expected to be stable from 2011 • CSFTS number of 624K • CAMP • Demand for unmanned aircraft systems by U.S. • BAS – Process Improvement military continues to be high. • Government Contracting • Significant drop in contingency funding will stress DoD sustainment and procurement accounts© 2012 Grant Thornton LLP. All rights reserved. 72
    73. 73. Performance Driver ModelAerospace and Defense Competition Compliance & Regulation People Revenue Selection, Development, Retention + Profit Customers Strategy Process Structure Priorities Vision Communication Leadership Expectations Growth Internal Audit Alignment Loyalty Experience Risk Management Trust/Teamwork BD /B&P Costs Customer Base IT Security Comp/Benefits Culture Engagement, Alignment, Energy Market & Industry© 2012 Grant Thornton LLP. All rights reserved. 73
    74. 74. Trigger event: DCAA is coming to audit our CASWhat service opportunities do the following present? Defense Contract Audit Agency (DCAA) is coming to audit our Contract Administration Services (CSA)© 2012 Grant Thornton LLP. All rights reserved. 74
    75. 75. Trigger event: DCAA is coming to audit our CASCAS auditWhat are we doing to help companies?• Conduct readiness reviews• DCAA audit preparation• Be present during audit to adviseWho do I contact?• Lou Crenshaw, Alexandria• Kerry Hall, McLean© 2012 Grant Thornton LLP. All rights reserved. 75
    76. 76. Trigger event: DCMA or DCAA is coming to reviewour business systemsWhat service opportunities do the following present? Defense Contract Management Agency (DCMA) or DCAA is coming to review our business systems© 2012 Grant Thornton LLP. All rights reserved. 76
    77. 77. Trigger event: DCMA or DCAA is coming to reviewour business systemsWhat are we doing to help companies?• Conduct readiness reviews• Internal auditWho do I contact?• Lou Crenshaw, Alexandria• Kerry Hall, McLean© 2012 Grant Thornton LLP. All rights reserved. 77
    78. 78. Trigger event: Our company does business overseasWhat service opportunities do the following present? Our company does business overseas© 2012 Grant Thornton LLP. All rights reserved. 78
    79. 79. Trigger event: Our company does business overseasWhat are we doing to help companies?• Conduct risk assessment ‒ Violation of Foreign Corrupt Practices Act (CPA) ‒ Tax liabilitiesWho do I contact?• Bill Olsen, McLean• Mario Bonilla, Wichita© 2012 Grant Thornton LLP. All rights reserved. 79
    80. 80. Trigger event: My company is interested in theprivate equity market or raising capitalWhat service opportunities do the following present? My company is interested in the private equity market or raising capital© 2012 Grant Thornton LLP. All rights reserved. 80
    81. 81. Trigger event: My company is interested in the private equity market or raising capitalWhat are we doing to help companies?• Due diligence• Leading or assisting with a transactionWho do I contact?• Ian Cookson, Boston• Carlos Ferreira, NY - Midtown• Ricky White, McLean• Wade Kruse, Charlotte• Sal Fira, Dallas © 2012 Grant Thornton LLP. All rights reserved. 81
    82. 82. Trigger event: My company wants to acquire adefense companyWhat service opportunities do the following present? My company wants to acquire a defense company© 2012 Grant Thornton LLP. All rights reserved. 82
    83. 83. Trigger event: My company wants to acquire adefense companyWhat are we doing to help companies?• Due diligence• Transaction assistance & corporate financeWho do I contact?• Lou Crenshaw, Alexandria • Steve Perkins, Alexandria• Ian Cookson, Boston • Wade Kruse, Charlotte• Carlos Ferreira, NY - Midtown • Sal Fira, Dallas© 2012 Grant Thornton LLP. All rights reserved. 83
    84. 84. Trigger event: My company wants to do businesswith DoDWhat service opportunities do the following present? My company wants to do business with Department of Defense (DoD)© 2012 Grant Thornton LLP. All rights reserved. 84
    85. 85. Trigger event: My company wants to do businesswith DoDWhat are we doing to help companies?• Rate / fee setting• Market landscapeWho do I contact?• Lou Crenshaw, Alexandria• Chip Schweiger, Denver© 2012 Grant Thornton LLP. All rights reserved. 85
    86. 86. Trigger event: I need to understand what ishappening to the defense budgetWhat service opportunities do the following present? I need to understand what is happening to the defense budget© 2012 Grant Thornton LLP. All rights reserved. 86
    87. 87. Trigger event: I need to understand what ishappening to the defense budgetWhat are we doing to help companies?• Strategy reviews• Long term funding strategies• Possible restructuring for those who may be on losing endWho do I contact?• Lou Crenshaw, Alexandria© 2012 Grant Thornton LLP. All rights reserved. 87
    88. 88. Trigger event: We are expanding our facilitiesWhat service opportunities do the following present? We are expanding our facilities© 2012 Grant Thornton LLP. All rights reserved. 88
    89. 89. Trigger event: We are expanding our facilitiesWhat are we doing to help companies?• Cost Segregation ‒ Accelerate tax deductions by reclassify construction/acquisition property to personal property ‒ 39 year vs. 5, 7, 15 year recovery periods ‒ Review of Construction Cost Documentation, Blueprints, etc. ‒ Possible utilization of IRS approved stat sampling• Fixed Asset Review – Correct misclassified assets ‒ Tax Lives/Asset Classes ‒ Bonus Depreciation• Repairs and Maintenance Expense (Repair Regs & 1250X) ‒ Directly Expense items under 263(a) in current year vs. Capitalize ‒ Detailed analysis of specific assets and their supporting documentation• Automatic Accounting Method Change (Form 3115)Who do I contact?• Lou Crenshaw, Alexandria • David Cavin, Atlanta• Jim Wittmer, Philadelphia © 2012 Grant Thornton LLP. All rights reserved. 89
    90. 90. Resources to shape conversations• National A&D Sector Team• Government Contracting Team (Kerry Hall)• GPS Defense and Intelligence (Lou Crenshaw)• M&A Corporate Finance Group (Ian Cookson)• K Source (i.e., timely business discussion topics)• Trade organizations (e.g., NDIA, AIA, state chambers of commerce)• Trade publications (e.g., National Defense , Aviation Week and Space Technology)• IBIS World (includes sample questions)• Quadrennial Defense Review ("QDR") Report• Aerospace & Defense Update: Mergers, Acquisitions and the Operating Environment© 2012 Grant Thornton LLP. All rights reserved. 90
    91. 91. Questions?© 2012 Grant Thornton LLP. All rights reserved. 91
    92. 92. We need your feedback!!!Please provide your feedback on the program leaders andcontent for this session Hyperlinks to the evaluation can be found in the session descriptions in the TLC app http://eventmobi.com/2012tlc 1 Agenda 1. Go to Agenda 2. Open session details 2 TLC: Breakout name 3. Click evaluation hyperlink beneath title Please note that your view may differ 3 http:??www.kamtm.com/r l/.aspx?A9B83F14386098 depending on the mobile device in use© 2012 Grant Thornton LLP. All rights reserved. 92
    93. 93. Consumer and Industrial ProductsManufacturing, Distribution and Aerospace & Defense2012 Tax Leadership ConferenceThank you for your participation© 2012 Grant Thornton LLP. All rights reserved.

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