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Technology Stocks : Lucent Technologies (LU)

LU 2.650

-2.9%

Nov 14 3:59 PM EST

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To: Chuzzlewit who wrote (11859)	12/22/1999 3:28:00 PM
From: stilts	Read Replies (1) of 21876

Chuz, You said, "when you have a note receivable it is not considered part of operating cash flow. So when you shift a receivable to a note you increase cash flow from operations by treating it as an investment activity. My complaint was that such an approach simply papers over the problem." I'm not an accountant, but I don't believe that taking a "note for a receivable" is comparable to what Lu did, which was to "securitize" the $625 million in receivables by selling them to an unaffialiated entity on a non-recourse basis (except for collateral consisting of other receivables which haven't been used to increase cash flow). Does that make any difference? stilts

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