Middle East I

Not enough energy for a long post at the moment, but wanted to share a couple of photos up to this point of my Middle East sojourn.

I had an 8 hour layover in London so I made the most of it.

Locals playing football in Bahrain.  (I was in the country for about 14 hours.)

The view outside my hotel room in Riyadh, Saudi Arabia.

Dinner my first night in Dubai, United Arab Emirates.

I've been having some incredible experiences and am really enjoying my time.  Lots of fantastic co-workers and other individuals have made this an extremely memorable trip.  In the next few days I expect to post more about the day-to-day experiences.

The International

No, I'm not talking about the movie; I'm talking about my job.  I was laughing to myself today at how amazing the world we live in is.  In an instant we can be in touch with people thousands and thousands of miles away.  Today illustrated for me how flat the world has become...

Work started at 6:30 this morning with a revenue recognition training call where I discussed various topics with one of our teams from what we call the "Emerging Markets."  On the phone we had people based in Switzerland, Russia, Israel, South Africa, United Arab Emirates and Greece.  Remarkable.  Several individuals participated in the conversation, and I was likely the only person who could only speak English.  My colleagues' abilities with English are amazing, and I am grateful for those abilities that make it possible for us to communicate. 

Around lunchtime I received a call from my colleague in Argentina.  She had just returned from vacation and needed to catch up on some things she had missed while being out.  We discussed deals being worked by the teams in Brazil and Mexico.  Again, remarkable.  

Later in the afternoon my boss called to discuss a few items of import.  He is in Australia, and had a need to talk about two deals--one in Japan and one in Australia.  So we spent some time talking about those items and the revenue recognition impacts for the company.  GAAP is nothing if not an effort to keep accountants employed!

Finally, at 8:30 tonight I got on the phone to have a conversation with a couple of folks in Singapore and my boss in Australia.  Sadly, that call was canceled at the last minute.  Never fear though, it's been rescheduled for tomorrow afternoon.  By the time it rolls around I will have already met with individuals in England, California and (gasp) here in Colorado!

What a cool job.  I love interacting with these people from all over the world.  It keeps me on notice that there is a lot going on around the globe, and it's good to be aware of it.

Catching Up

Let's see, lots going on over the last several days.

Family

My niece, Rebecca, and her husband, Davis went on a road trip from Provo to Denver last week and stayed with us for a few days while they were here. The kids loved having their oldest cousin in town, and R&D were great with them. In addition, Rebecca is a nurse and knows a lot more than we do about taking care of premies, so it was fun to watch her hold Eliza knowing that Rebecca understood what a journey Eliza had taken to get here. The oldest and youngest grandchildren for my parents. Pretty cool! Come again, soon R&D. We loved having you here!

As an added bonus, with Nelson in town at the Dunfords, we had Tom, Nelson, Curtis, Davis and me all at Wednesday night basketball. Quite the festival! We played hard and had a good time. Davis and Tom can man the point, Nelson and Curtis are supreme at banging in the paint and hauling in the boards, and I just fill in where I can. It was a ball to play with so many family members.

This week Brenna and the kids have gone to Georgia. I took them to the airport Tuesday afternoon, and although Brenna was very nervous about traveling with the four of them, they all did very well. (We did have to have some serious discussions with them beforehand to ensure they wouldn't give Mom any trouble--and they didn't. They know how to rise to the occasion when they need to. Good job guys!) They've been loving Grandma and Grandpa's swimming pool and living the good life with their cousins. It's quiet here, but that brings me to my next topic...

Work

Once again, quarter end close is upon us. I thought I was getting out of the stress of quarter close when I took this new job six months ago. Not so. My job has morphed a bit, and I now have responsibility for reviewing some revenue calculations for multiple deals on a world-wide basis. Very interesting how things can be so different from one area of the world to the next. I delivered the same training to all Regions--US, Latin America, Europe and Asia Pacific, but the quality of submissions has varied drastically from one region to the next. You can really tell which regions believe this aspect of the accounting is important and which don't. I recognize it's a big headache for them, but it's also a key area the auditors look at so we must be thorough and consistent worldwide. It makes for a challenge when I have to send things back to some regions and ask them redo the work.

I know that's boring for most of you to read, but it becomes all-consuming for me for a week to two weeks every three months. Fortunately, I'm able to focus on other things for most of the rest of each quarter.

Church

A couple of things in this category. First, since last Sunday was the fifth Sunday, the Bishop presented a lesson on finances to all the adults. I wish I could report to you on how it went, but instead of attending his class, the Bishop asked me to present the same topic to the youth. In order to understand the magnitude of that request, please understand that we have around 30 active youth, and about 20 of those are young men. Plenty of Deacons and Priests. So, the audience was diverse in their attention span, interest level and ability to comprehend. We spent a very interesting 50 minutes together to say the least. I knew with such a topic that I couldn't reasonably expect to keep their attention on a consistent basis, but I also knew that various aspects of the lesson would be interesting and would stick with some of the youth. So I really made an effort to be patient with all the whispering and side conversations, and it turned out pretty well. Much of what we discussed was new information even to the oldest of the youth. We discussed interest and mortgages very briefly, and it was quite remarkable to see the shock register on some of their faces when I mentioned how much interest they could expect to pay on a 30-year 250K mortgage. Rude awakening. I also rattled them with my old school sayings, such as "he's a loose cannon," and "toot your own horn." It was funny to see the blank stares and realize they had no idea what I meant when I said those things. Ah, the generation gap--it's getting wider for me.

The second item is one I'm quite enthused about. We have had a huge influx of new families in our ward over the past two to three months. (Side bar: most of these families are quite young, and Brenna and I are in the unfamiliar position of starting to feel we are in the middle-aged group in our ward. When we moved in six years ago, we were far and away on the young side of the ward--probably about the youngest family, in fact. Now, we are approaching median age, I would say. Pretty amazing!)

Anyway, the Bishop had a get together at his home on Monday night and invited the new families as well as a few long-term members. While there I was able to chat for a while with Ryan Gunderson, who is the owner of the Riches For Good blog at richesforgood.blogspot.com.

I have briefly mentioned in the past that I would like to get more involved in the world of microcredit and the like. Well, Ryan has a decided interest in that topic, and we're already making plans to get me more involved. Call it an effort to do something larger with my life. At one point, I thought I would get a job that would make a real difference in the world. Well, not to disparage my current job, but let's just say it's not the idealist's dream. So, why not make it a hobby and a passion. I'll keep you updated how things develop, but I really hope to be able to jump in with both feet now that I have someone around who can show me the ropes, so to speak.

I'm looking forward to it.

Fair Value

I am a corporate CPA and heavily involved in the world of revenue recognition. I know, I know...BORING! I can't blame anyone for reacting with that thought. For those outside the curious little world of rev rec it is, no doubt, boring. For those of us inside the asylum, however, life is never boring.

For those on the outside let me give a brief explanation as to why it is never boring, and then I will delve into the specifics of my thoughts for today.

For a company to survive in the long run it must make more money than it spends--no shocker there. Money is made when products and/or services are sold. In order to make a sale a company generally relies on its sales force. Folks who work in sales are paid on a commission model--the more you sell, the more you get paid. Simple enough so far. Well, a company can do all sorts of things with its commission model to incent its sales force to sell various items with more or less fervor. And, as you might expect, in large companies the commission model can become so complex that occasionally situations will arise where it appears the company is actually rewarding behavior that is contrary to the goals of the organization.

Sales folks are not dumb--like you and me they want to get paid as much as possible for the work they do. So they study the sales plan and the commission model and determine the best way to make the most amount of money. With a good commission model that will result in lots of revenue for the company. However, with a suspect commission model that can result in any number of unforeseen outcomes.

On top of all that you get to layer in Generally Accepted Accounting Principles--GAAP. Truth be told, even insiders often have a difficult time navigating the labyrinthine halls of GAAP revenue recognition. There are so many nuances to the guidance and strata to the guidance hierarchy that for those not trained in the craft a herculean effort is required to gain even a rudimentary understanding of the rules.

What this often leads to is a commission model that makes sense to the lay person and seems to have the best interests of the company (and the sales person) at heart. However, rare is the time that those who derive the commission model understand the havoc that GAAP will wreak on the timing of revenue recognition for any given transaction. Thus, a sales person will think she has made a sale that will net her $30,000 in the quarter. All too often, however, GAAP will require a deferral of the revenue for reasons that will seldom make sense to the sales force. So, you have the never ending friction of the sales person wanting to get a pound of flesh from the accountant, and the accountant wanting the sales person to stop being so self centered and ego centric. Good times! So, it's rarely boring.

My thought for the day is that this is troublesome because it frequently leads to the sales force acting against the best interests of the company. For instance, sales person X might sell a product for 100K and recognize an opportunity to sell additional services with that product. So, X dives in deeper, negotiates with the customer and comes away with two additional services deliverables for another 50K. Company is ecstatic. 100K of revenue now (when the product is delivered) and 50K in the future (when the services are delivered). X feels great because instead of netting 10K in the quarter, he is now netting 15K. Customer is happy because the services are value add and will improve their infrastructure and ability to service their own customers in the long run.

Well, not so fast. Depending on the deliverables and numerous company-internal factors, GAAP may require that the 100K of product revenue be deferred until the services are delivered. So, now there is 0K of revenue this quarter and X receives $0 just in time for Christmas. Once X gets his hand slapped like that one time he learns quickly. Next quarter a different customer wants the same 100K product plus 50K of additional services. X says we can give you the product, but the services are out of scope. Why? He wants his comp today. Maybe he has multipliers in the current quarter, maybe he's buying a new home and needs the $ for the down payment. Could be lots of reasons, but the long and the short is that the company just missed out on 50K of additional revenue over time because the compensation plan was not aligned with GAAP and the various types (and combinations) of products and services being sold.

This is a very high level view of the issue. Lots of layers and arguments on both sides of the issue, but suffice to say that it usually ends up being very messy. Believe it or not revenue recognition is quite a fascinating frontier if you are familiar with the issues. Plenty of work to be done here.

Business Travel

I'm here at the Sun offices in Menlo Park, CA. I have a three-day face-to-face staff meeting, and we've made it through the first day. Staff meetings of this nature are generally a good thing as long as they don't happen too often. I enjoy seeing my colleagues face to face, and there is something invaluable about being in the same room while discussing issues. On the other hand, some of the topics are going to be off-point for some of the participants. So, it's not a perfect use of time, but it's a necessary aspect of being a real team and seeking to improve as a team.

The biggest downside is that it pulls me away from my family. And what a time to leave them. Brenna is feeling pretty good these days, but she still can't do too much as it makes her feel achy and tired. The kids have all taken turns throwing up this last week, and we're just praying that Brenna's turn doesn't arrive while I am gone. What a disaster that would be. Savannah and Hunter are pretty well able to take care of the things they need to, and if it were just them, I wouldn't have too many qualms about being gone. But Maddie is a different story. She is in the button-pushing stage--and I mean that figuratively more than literally. She really enjoys seeing how far she can push her parents--and her sister and brother too, for that matter. It's hard enough when we're both home and feeling well, but with me gone and Brenna not feeling well Savannah and Hunter will really have to take on more responsibility than usual and take care of their sister. They both do a very good job with that in small spurts. We'll see whether they're able to maintain it over the course of a few days. I love them all so much, and it just pleases me to see them help each other.

As for here at work, we went to a Bocce Ball place this evening for our team event. Never done that before, but it was a good time. Highly worthwhile activity. I'm not aware of any such venues in Denver. I'll have to look into that. It would be very fun for a group get together.

It's always strange for me to do that sort of thing in a work setting though, because although I enjoy my work colleagues, I haven't gotten so close to those at Sun that I really consider them hang-out friends. I don't have many of those anyway, so it's a bit of a different situation. I find myself going into recluse mode and feeling eager to get back to the hotel so I can read or just watch TV in peace and solitude. I'm not sure what that says about me, but I do relish those quiet, down times.

Facebook

Within the last couple of weeks I have set up my own Facebook page and found myself interacting with family much more frequently than in the past. I look forward to going on the page and seeing what is happening in the lives of those I love.

I have also enjoyed searching on names of friends I've lost touch with. What a great way to keep in touch. It's non-invasive and and easy. I know I sound completely sophomoric, but I suppose that's basically my state when it comes to utilizing the internet for personal purposes. Anyway, I've been so pleased with the ease and enjoyment of Facebook that it turned my thoughts to my long-neglected blog. Who knows whether I will carve out the time to be more consistent with this blog, but for now I have a desire to write.

So, a couple of things.

First, and most important, today was a bit of a rough day. This past week has been quarter-end close, which means that I worked about 70 hours Mon - Fri. For many people that is probably a normal routine, but for me it is not. I dread these couple of weeks every quarter, and the stress of quarter close generally seems to get the better of me. Couple that with the fact that Brenna is essentially on bed rest currently, and things are stressful in the two dominant portions of my life--family and work. Savannah, Hunter and Madison often are wonderful children, but with their mom not really able to get off the couch and with their dad not home at all during the week, it was difficult for them as well. Despite the amazing help from numerous dear friends in our ward, the house was in a general state of disrepair this morning, and there were many household tasks to be done.

In an effort to cut this entry a bit short, I will sum up by saying that I became very frustrated today and let my anger spill over into the way I spoke to my children. I was unnecessarily loud and harsh. I let my temper get the better of me, and my children had to put up with their dad verbally expressing his displeasure.

Fortunately, I went to Priesthood session this evening, and, as usual, President Hinckley was the concluding speaker. His surprise topic was anger. He admonished the brethren and encouraged us to be in control of our emotions--for the good of those around us and ourselves. He may as well have been speaking directly to me. I came home with a renewed desire to always stay in control and speak kind words. President Hinckley rightly pointed out that the small frustrations that crop up simply aren't worth the long-term ramifications of anger. He also rebutted any possible reference to Christ's anger when cleansing the temple. He indicated the cleansing of the temple was a rebuke rather than an uncontrolled outburst of anger. I suppose right-thinking people could debate that, but I believe President Hinckley is correct. Consequently, I need to improve (as if I didn't already know). My goal is to take it to heart and apply the gospel more fully. Temper and sarcasm have always been regrettable aspects of my personality. But the beautiful thing about the gospel and the atonement is that it allows, in fact it requires, people to change. It always offers hope!

Now that I think about it, I guess I'll stop there for tonight. The other topic I was going to mention is too superficial to include here after what I have written above. I'll come back to it in the future.

Being a husband and dad is the greatest thing in the world. I pray that the Father will work with me to help me become better in both areas.