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[Zephyr]

Corporate Profits
Released On 8/29/2013 8:30:00 AM For Q2:13
Prior Prior Revised Actual
After-tax Profits - Y/Y change 4.7 % 3.5 % 5.8 %
Definition
Corporate profits, as reported by the Bureau of Economic Analysis (BEA), are summarized briefly as the income of organizations treated as corporations in the national income and product accounts. The BEA reports several measures of profits. Profits from current production (corporate profits with inventory valuation and capital consumption adjustment), are also known as operating or "economic" profits. Capital consumption adjustment deals with the differences in depreciation allowances used for accounting and income tax purposes. Inventory valuation adjustment (IVA) deals with the difference in measuring the cost of inventory replacement. Book profits amount to operating profits subtracting out inventory valuation and capital consumption adjustments. After tax profits are book profits after taxes are subtracted. The Econoday reports focus on after tax profits reported by the BEA, since these are the most relevant.