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Technology Stocks : Siebel Systems (SEBL) - strong buy?
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To: hueyone who wrote (5932)6/8/2002 1:08:13 AM
From: Stock Farmer  Read Replies (1) of 6974
 
Hmmm... Oops... mistake in my number crunching. Rats.

Allow me to re-arrange.

Ok, we start again with a tax benefit from exercise of stock options for the three years totaling 331 Mill. We divide this by your 35% tax rate to get 946 Mill.... we subtract the tax benefit of 331 Mill to get... answer 615 Mil.

You are correct.

I tried to shortcut and just do the amount as X/0.65, as opposed to 0.65X/0.35, sorry my error. Unfortunately this rattles through my whole post 'cause I hacked together a quick spreadsheet on the fly. Darn.

Next we subtract the money that came in at strike price---"compensation related to stock options, net"--18 Mill? Don't subtract, add. This is a compensation expense from granting below-market options.

Net 633 Mil

Which is neither your 597 nor my 550 Mil.

We don't subtract the money that came in at exercise. Which, by the way, is reported under cash flows from financing, muddied by "net of repurchases" figure.

Anyway, we don't subtract this inflow because the 946 Mil is the difference between strike and market. Shareholders paid the market price, got back the strike price in assets to the company. So by looking at the 946 we've already factored out whatever they've taken in.

Good eyes Huey.

Sheepishly,
John
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