Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. (Operator instructions) Our first question comes from Christopher Glynn from Oppenheimer. Please pose your question.
Christopher Glynn – Oppenheimer
Thanks. Good afternoon.
Dominic Pileggi
Hi, Chris.
Christopher Glynn – Oppenheimer
Looking at the balance sheet, astonishingly large reduction in receivables, could you talk about that a little bit?
Ken Fluke
Well I think there's a couple factors as I called out in my prepared remarks. I mean one of them was the fourth quarter sales themselves by nature were down. Also remember that the foreign currency deterioration also just happened in the fourth quarter, and that was a factor that you see there. And again, don't forget, as usual, our collections efforts were again strong.
Christopher Glynn – Oppenheimer
Okay. And do you have increased bad debt allowance?
Ken Fluke
Nothing of any significance now.
Christopher Glynn – Oppenheimer
Okay. And could you talk about the acquisition environment you're seeing and maybe continued expectations for share repurchase?
Dominic Pileggi
Okay. I will talk to you about the M&A activity, Chris. You know there is not a lot of activity at the moment. And our preference, as you well know, is to acquire leading brands, and quite frankly those types of companies have little interest in selling in trough multiples and trough earning periods. But acquisitions are still a very important part of our strategy going forward. And I think as Ken outlined in his reports, we think we are in a good position to capitalize should opportunities present themselves.
Christopher Glynn – Oppenheimer
Okay. And then last one, if I could, the headcount reduction, what was the associated severance expense in the quarter end and second half?
Ken Fluke
Chris, it wasn't that significant, or I would have called it out. But a couple of factors there. As a reminder, a good portion of that would have actually been a part of the acquisition integration activities and that would not have shown through the earnings, it would have gone through purchase accounting into good well ultimately. And the other is, that we have been doing that over really primarily the whole second half of the year, and you know it's not significant enough to highlight as being a big factor in cost. I mean obviously there were costs in both quarters, but nothing big enough we believe to call out.
- To read the full transcript on Seeking Alpha, click here »
