Make that minus. The stock buybacks in Q1FY1999 1998 1997
of $ (334) (1,023) (495)
generally exceeded "earnings" 305 944 518
and left just (31) (79) +23
The bull argument that proper accounting for options at the time of
grant would take just 9 cents from 1997 earnings (per the 10-K) is
just the Black-Scholes valuation of the option at the date of grant,
not the real value taken by the option holder and no longer in the
pot for the shareholders:
Had the Company accounted for its stock option and stock purchase
plans by recording compensation expense based on the fair value at
the grant date on a straight line basis over the vesting period,
stock-based compensation costs would have reduced pretax income by
$100 million ($69 million, net of taxes), $22 million ($16 million,
net of taxes) and $8 million ($6 million, net of taxes) in fiscal
1998, 1997 and 1996, respectively. The pro forma effect on diluted
earnings per common share would have been a reduction of $0.09, $0.02
and $0.01 for fiscal years 1998, 1997 and 1996, respectively. |
