Financial Reporting
KPMG is asking a California federal court to revisit its June denial of a motion to dismiss in a securities class action related to Silicon Valley Bank's failure. The July 21 motion challenges the court's finding that the core issue is whether defendants made material misrepresentations, and argues that the last audit opinion cited was dated March 1, 2022, over a year before the bank's collapse.
Facing questions from Vice President JD Vance and public opinion over its reliance on H-1B visas while conducting large-scale layoffs, Microsoft issued a statement emphasizing that the two are unrelated and disclosed visa application data to defend itself. Meanwhile, U.S. immigration policy is clearly tightening, and reforms to the H-1B visa system may be on the horizon.
Alphabet's second-quarter operating expenses rose 20% year-over-year to $26.1 billion, with CFO Anat Ashkenazi citing the $1.4 billion data privacy settlement with Texas as the main driver. The settlement marks the highest payout ever recorded in a state attorney general's enforcement of privacy laws, while the company still faces antitrust breakup pressure from the U.S. Department of Justice.
Tesla CEO Musk warned on Wednesday's earnings call that the company may face several 'difficult quarters' due to electric vehicle-related provisions in the Big Beautiful Bill and tariffs. CFO Vaibhav Taneja noted that the $7,500 tax credit will end in September, and tariff costs increased by approximately $300 million quarter-over-quarter. Q2 total revenue fell 12% year-over-year to $22.5 billion, and net income fell 16% year-over-year.
GM reported a second-quarter net tariff impact of $1.1 billion, slightly below expectations. During the earnings call, CFO Paul Jacobson said the company would mitigate the impact through strategic pricing, cost control, and production adjustments, projecting a total tariff impact of $4 billion to $5 billion for 2025, with approximately $2 billion related to South Korea. CEO Mary Barra noted that short-term production shifts and other measures have been implemented, expected to alleviate about 30% of the tariff impact.
Florida Governor Ron DeSantis announced on Tuesday that he will use new powers granted by the state legislature to launch audit actions similar to the federal 'Department of Government Efficiency' in Broward County and the city of Gainesville. The new state Chief Financial Officer, Bryce Ingoria, stated that this move aims to 'shine a light' on local government spending and pave the way for property tax reform. The audit team plans to enter both locations on July 31 and August 1 for inspections.
The U.S. Securities and Exchange Commission (SEC) appointed George Botic as Acting Chair of the Public Company Accounting Oversight Board (PCAOB), effective July 23. This move follows the announcement of Erica Williams' resignation and comes as the Trump administration pushes for financial deregulation.
Nordstrom announced Thursday that it has appointed Dollar General's Chief Financial Officer Kelly Dilts as its new head of finance, effective August 29. Dilts had been with Dollar General for about two years, and her departure comes after the company reported better-than-expected quarterly results.
During the "Business of Risk" online event co-hosted by CFO Dive and ESG Dive, Orbia CFO Jim Kelly and IMAX CFO Natasha Fernandes discussed responses to tariff policy. They advised companies to focus on the long term in decision-making, employ scenario planning and flexible strategies, and noted that although the tariff environment fluctuates frequently, companies must weigh costs against risks and avoid hasty actions.
On July 15, Renault Group announced that Chief Financial Officer Duncan Minto will serve as interim CEO, succeeding Luca de Meo, who announced his departure a month earlier. The company also lowered its full-year 2025 guidance for free cash flow and operating margin, and disclosed preliminary first-half results, indicating that June market performance fell short of expectations.