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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.28+0.1%3:59 PM EST

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To: GVTucker who wrote (67230)3/7/2005 10:04:41 AM
From: Amy J  Read Replies (1) of 77400
 
GV, RE: "The stock option expense that year was huge, and it was deducted off their taxes, even though it didn't affect the earnings reported to the SEC."

It eventually gets deducted from earnings when exercised, correct?

If so, then what's the underlying issue - is your concern that it gets deducted on the back end (when exercised) rather than on the front end (when issued)?

How would you address the issue around lumpy quarters as well as canceled options when handled on the front end?

Regards,
Amy J
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