Where there are negative sale numbers for firm’s segment information? 
Posted: 02 August 2013 12:27 PM   [ Ignore ]
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In Compustat’s Historical Segment File, there are negative sales number for some firms’ segment. It is strange. Anybody has a clue? Thanks!

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Posted: 02 August 2013 08:01 PM   [ Ignore ]   [ # 1 ]
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hi ww,

I did a quick ‘count’ of the segment names of business segments where sales is zero: these are the names

Obs SNMS numObs
1 Intersegment 51
2 OTHER 53
3 Corporate/Eliminations 56
4 Adjustments 61
5 REAL ESTATE INVESTMENT TRUST 63
6 Eliminations and Other 84
7 Elimination 100
8 No Operations 121
9 Corporate and Eliminations 129
10 Corporate & Other 145
11 Corporate and Other 150
12 Corporate & Eliminations 156
13 Corporate 316
14 Other 320
15   321
16 Eliminations 3652

I noticed some ‘real’ segments as well. The eliminations have no SIC code usually. So, one way to deal with this is to pro-rate such segments over the other segments that do have a SIC code. You can also ‘pro-rate’ towards firm level sales in Fundamental Annual (as total segment sales sometimes differs from the firmlevel sales).

Hope this helps,

Joost

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Posted: 24 August 2013 05:25 PM   [ Ignore ]   [ # 2 ]
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Thanks! Joost. For firm’s geographic segment, where there are some negative sales numbers?

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Posted: 24 August 2013 05:32 PM   [ Ignore ]   [ # 3 ]
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I would think GEO segments are similar to business segments; just take a look at the data. (filter data on GEO, get negative/zero sales and take a look at segment descriptions)

best regards,

Joost

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