puma guy wrote:Destroying the weapons is all about the publicity. They could have quietly donated them to law enforcement and even if they didn't consider that an option they could have quietly destroyed them. Instead they make a big deal out of it to garner some additional publicity now that the initial fanfare has waned along with their sales and stock. Perhaps they think they'll get some additional anti business. I wish there was a way to check their IRS filings to see if they carry this as a loss on the books. Destroying your inventory no matter the reason is not a loss. Some pro 2nd Amendment stock holders should demand to know why they are deliberately losing money by destroying inventory and also check the financial statements for how they classify the losses. If they take it as a loss that would be fraud in my book.
It would actually be tax evasion, which is a felony (if the fake write-off is large enough). The IRS limits deductions to expenses that are both "reasonable" and "necessary" to your trade or business. Intentionally destroying inventory does not fall in this category, IMHO. Technically it wouldn't even be inventory since "inventory" is defined as something that you intend to sell. But the point is that the cost of this little show is not deductible. IANAL, but I am a CPA.
In addition, I would expect a shareholder lawsuit if these shenanigans have a significant negative impact on the stock. As the CEO / Board of a publicly traded company you have a fiduciary obligation to protect the financial interests of your investors since you are messing with their company. And I fully expect to see Dick's stock underperform their rivals. Not only will folks stop buying the guns they are still OK with selling, but a lot of us also camp, fish, play golf, have kids in sports, etc., etc. They will lose that business as well.
