Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.81

+0.2%

Nov 25 3:59 PM EST

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To: fingolfen who wrote (174338)	5/2/2003 4:38:43 PM
From: GVTucker	Read Replies (1) of 186894

So why the massive push to put them as a cash expense? It isn't a cash expense. Nobody has said it is. It is an expense, however. There are a number of expenses that aren't cash expenses, but are still legitimate expenses. Again, there is a push to enact legislation using this particular method, which even this author indicates is inaccurate... given CEO's are required to sign off on the "accuracy" of the numbers at the end of the quarter - I see a clear cross purpose here. It's still BS. Depreciation is not a cash expense. It certainly is an inaccurate estimation of a legitimate expense. And yet Mr. Barrett still signs off on income statements with depreciation as part of the expenses. If he was being genuine in his concerns he never would have signed off on Intel's financial statements in the first place, no matter what the policy is on options expense. An income statement is full of estimates. One thing I can guarantee is that at any point in time, those estimates will be wrong. Over a long period of time, though, those mistakes will balance out. Employee stock options expense is no different.

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