Off-Balance Sheet Leases in the Restaurant Industry

Amy P. Hutton; Paul M. Healy; Jacob  Cohen

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Case | HBS Case Collection | October 2000 (Revised October 2000)

Off-Balance Sheet Leases in the Restaurant Industry

by Amy P. Hutton, Paul M. Healy and Jacob Cohen

Abstract

Amid mounting concern by credit agencies about off-balance sheet liabilities, an analyst for one of the leading credit-rating agencies has been asked to make a presentation about off-balance sheet liabilities, the strategic analysis behind leasing versus purchasing property, and accounting for leases.

Keywords: Fair Value Accounting; Property; Leasing; Financial Statements; Capital Structure; Credit; Financial Services Industry;

Format: Print

15 pages

Educators Purchase

Citation:

Hutton, Amy P., Paul M. Healy, and Jacob Cohen. "Off-Balance Sheet Leases in the Restaurant Industry." Harvard Business School Case 101-033, October 2000. (Revised October 2000.)

About the Author

Paul M. Healy

James R. Williston Professor of Business Administration
Senior Associate Dean for Faculty Development

Accounting and Management

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Case | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (A)

Charles C.Y. Wang, Paul M. Healy, Penelope Rossano and Kyle Thomas

This case centers around the Air Products' hostile takeover attempt of Airgas in 2010. Air Products argued that its offer of a 38% premium is generous given Airgas' poor performance, which Air Products attributed to underperforming and entrenched managers at Airgas. On the other hand, Airgas' management argued that the company's recent struggles are cyclical and that Air Products' offer grossly undervalues Airgas' long-run potential. How might Airgas' management credibly communicate its conviction to shareholders? Should Airgas shareholders side with Air Products and accept a certain short term return, or should they side with Airgas' management and accept an uncertain but potentially higher long-term outcome? How should the Airgas board balance its responsibilities to short-term versus long-term shareholders?

Keywords: Acquisition; Business and Shareholder Relations; Industrial Products Industry; Energy Industry; Chemical Industry;

Citation:
Wang, Charles C.Y., Paul M. Healy, Penelope Rossano, and Kyle Thomas. "Air Products' Pursuit of Airgas (A)." Harvard Business School Case 116-024, November 2015. (Revised March 2018.) View Details

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Supplement | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (B)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (B)." Harvard Business School Supplement 116-025, November 2015. (Revised March 2018.) View Details

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Supplement | HBS Case Collection | February 2018

Air Products' Pursuit of Airgas (C)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (C)." Harvard Business School Supplement 118-080, February 2018. View Details

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Off-Balance Sheet Leases in the Restaurant Industry

Abstract

Citation:

About the Author

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