Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.04

-1.3%

Jan 2 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stock Farmer who wrote (62826)	1/31/2003 1:05:38 PM
From: rkral	Read Replies (1) of 77400

OT .. John, re "I suspect what must happen is that since assets are unchanged you would see a reduction in "retained earnings" and an increase in "paid in capital", as if the employee had been paid a wage in cash and then invested this cash directly back into the company." Exactly. A stock grant is, anon, both an operating activity and a financing activity. The same is true of a stock option grant, IMHO. From BA's FY2001 10-k, sec.gov, we see BA adds $378MM Share-based Plans to Net Earnings in Operating Cash Flow to "reconcile" Net Earnings, and this $378MM ends up in Paid-in Capital, just like Huey's detailed description says. But this $378MM is the Share-based Compensation flowing back, i.e., from the employee to the company, to pay for the stock. Don't you agree this flowback should actually be a component of Financing Cash Flow? Any theories why it isn't? Ron

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next