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On the other hand I.G. Farben, the huge German chemical combine, had mastered synthetic fuel recovery from coal by the early 1920s hydrogenation was the most popular method and Germany had plenty of coal. But most of Germany s oil imports came from the West, and increasing demand was causing a foreign exchange hemorrhage. Hitler believed if Russian Baku oil reserves could be added to those of its ally Romania, along with Germany s own 1940 synthetic fuel reserves, the ThousandYear Reich was a cinch via a blitzkrieg-tactics war that didn t consume much fuel. Unfortunately for Hitler, his blitzkrieg advances frequently outran their fuel supply trucks, he never got to Baku, his Romanian oil supply at Ploesti was destroyed early in the war, and the German advance in North Africa ended when its oil tankers couldn t make it across the Mediterranean. In addition, German synthetic fuel aviation gasoline was never quite as hot as that produced from real crude oil, and the entire German war machine came to a halt when systematic bombings of its synthetic fuel plants later in the war reduced them to rubble. Germany also lost World War II long before 1945, but learned its oil lesson well and converted to the oil standard soon after the war despite massive reserves of coal. What did the allies learn from World War II They relearned the lesson from World War I: Whoever controls the supply of oil wins the war. They also learned the value of a strategic petroleum reserve. Up until 1943, the allies nearly lost the war to the Germans in the North Atlantic the success of submarine wolf packs made it nearly impossible for allied oil tankers to resupply England, Europe, and Africa. Even in 1945, countless lives were wasted and the Russians moved toward Berlin while Patton s tanks sat without fuel in France, giving the Germans time to regroup and resupply. While the United States provided six out of every seven barrels of allied oil during World War II, it was recognized by many in government that it would soon become a net importer of oil. More oil had been discovered in Bahrain in 1932, and in Kuwait (Burgan field) and Saudi Arabia (Damman field) in 1938. In 1943, as all eyes turned toward the Middle East with its reserves variously estimated at around 600 billion barrels, the United States government proposed the solidification plan to assist the oil companies (that is, share the financial risk) in Saudi Arabian oil development. While this plan and subsequent revisions to it were rejected with much indignation by the oil companies, decades later with 20/20 hindsight, they would all gladly change their votes. After World War II, pent-up consumer demand released another type of blitzkrieg, the internal combustion engine automobile. While Figure 3-6 shows United States automobile registrations were almost quadrupling, the rest of the world s auto population grew more than twentyfold: from 13 million in 1950 to nearly 300 million in 1990. Oil exploration in this period was in high gear. A nearly inexhaustible supply had apparently been found in the Middle East; gasoline prices bounced between 20 and 30 cents per gallon until the early 1970s. Aided by the convenience of the internal combustion automobile, America moved to the suburbs, where distances were measured in commuting minutes, not miles. Fuel-efficient automobiles were the last item on anyone s mind during this period. Gasoline was plentiful and cheap (reflecting underlying oil prices) and regular local retail price wars made it even cheaper. Environment was an infrequently used word with an unclear meaning. Highway construction proceeded at an unprecedented pace, culminating with the Interstate
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1 2 TaxUS1Frn0 3 1 4 Earnings before tax 5 U.S. rate 6 Foreign rate 7 Tax 8 Net income 9 10 2002 100 35% 21% 35 65 2003 110 35% 21% 38.5 71.5 2004 120 35% 21% 42 78 2005 130 35% 21% 45.5 84.5 2006 140 35% 21% 49 91
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In this case, both T and V would be of type string. Of course, if the type arguments were always the same, then two type parameters would be unnecessary.
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Other Liabilities These can be either operating or financing assets. You should project them accordingly. Sometimes, when you have no information, the best recourse would be to hold them steady at the last reported date levels. Taxes Payable You should forecast these as a percentage of current taxes. Taxes payable reflect the part of taxes not paid until the next year. Dividends Payable This should be forecast as a percentage of current dividends. Like taxes, a part of dividends is not paid out until the following year. Debt You should forecast the debt based on known amortization schedules. Where debt is being amortized, you may find that the assets side of the balance sheet is now higher than the liabilities and equity side. In this case, a plug debt line appears that is the Necessary to finance line in our model. Common Stock and Other Equity Accounts Unless you have specific information about these accounts, hold them at the level of the last historical year. Retained Earnings Retained earnings in the equity account should not be directly projected in the balance sheet. Instead, this should grow in the model as a result of the flows from net income, which in turn have been produced by the assumptions in use in the income statement.
4: Scorecards and Key Performance Indicators
directly in front of you. This can cause a feeling of disconnect, as the visual location of the actor doesn t match the audible source of their dialog. So, a center channel speaker, in addition to the left and right, means you can hear the actor s voice coming from a point matching their onscreen location, more or less. Then, to get effects that envelope the audience, they started adding loudspeakers along the sides and the rear of the theater. That gives you the sense of environmental sounds outside the picture, bringing you in more to the environment of the lm. There are several different ways to deliver this multi-channel sound. The current scheme for this is discrete multichannel sound, such as Dolby Digital, but let s not get into that just yet. Until recently, here s how surround sound usually worked in cinemas and home theater systems: Our audio program would be carried as a plainold stereo signal and that was processed to get four semi-independent channels. This is the way that most earlier cinema systems worked, and this is also true for the bulk of home theater systems out there. You take a regular stereo signal and by processing it in the analog domain (or digital domain), you can extract information that is common to both left and right and turn that into the signal that will be fed to the center channel speaker. Then, you can look at information that is different between the left and right, and throw that into the surrounds. Now what we have done is take a two-channel audio signal, with left and right, and because some of that information was correlated, essentially panned to the center, and some was decorrelated, which is often the case with ambient reverberant sounds, we ve turned it into four actual separate signals. You ve got left, center, right, and a single signal that goes to the surrounds, even though that might be going to more than one actual loudspeaker. The term matrixing is used to describe this process looking for the things that are common and looking for the things that are different and then extracting those elements and making them the center and the surround signals. In the home today you can nd that scheme implemented on equipment that is labeled with the Dolby Pro Logic logo. Is that intended only for systems that have four speakers Tapes or broadcasts encoded with Dolby Surround are compatible with two, four or ve-speaker systems. If the viewer has a plain old mono or stereo television, they don t have to do anything, just sit back and listen. If there s a home theater receiver involved, a few options come up. If you
The most important base for the logarithm is Euler s number e 2.71828 . . . . We write ln x = loge x. For the moment we take the logarithm to the base e, or the natural logarithm, to be given. It is characterized among all logarithm functions by the fact that its graph has tangent line with slope 1 at x = 1. See Figure 1.58. Then we set loga x = ln x . ln a
make it very attractive for use by a corporation. Improved quality: While DVD video offers excellent video and audio quality, the current television standard in North America, NTSC, only produces an image resolution of 300 lines. This makes it appear as though you're watching images projected onto a Venetian blind. Current cameras and monitors can actually display more than double this resolution, making the picture quality very much better. This is achieved by keeping the brightness information of the video signal ( luma ) separate from the color information ( chroma ). Separating these signals reduces their interference with each other, a major source of problems with current television standards. DVD video also eliminates the severe bandwidth limits of NTSC, allowing viewers to receive the full resolution that cameras can capture, with colors that have the same dynamic range as the brightness information, and are therefore more vibrant. DVD video also has superb audio specs. Home systems have used Dolby ProLogic Surround Sound, an audio scheme that allows four channels of sound to be encoded on a normal stereo pair. The four channels are center, front left, front right, and rear (although the rear channel is typically divided between two speakers). While Dolby ProLogic provides a much better sound than stereo alone, DVD can do better. DVD video can play either Dolby's AC3 Surround Sound or MPEG-2 audio, with 5.1 channels (left, right, center, rear left, rear right, and the .1 is a subwoofer). The combined improvement in quality of video and audio is signi cant. Presentations to corporate clients or potential customers
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