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Technology Stocks : Lucent Technologies (LU)
LU 2.6700.0%9:39 AM EST

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To: Dan Hamilton who wrote (14741)5/12/2000 12:53:00 PM
From: Kenneth E. Phillipps  Read Replies (1) of 21876
 
Imagine the nerve of the FASB -- making tech companies occasionally show compensation as an expense.

I was surprised to learn that Cisco computes its operations earnings without treating payroll taxes on exercised options as an expense. Payroll taxes, such as FICA, are very real cash expenses and should be treated as such. Otherwise, earnings reports are distorted to appear larger than they really are.
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