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Non-Tech : OAKLEY- NYSE:OO
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To: Razz who wrote (118)1/23/1997 9:02:00 PM
From: Andrea Bornschlegel   of 1383
 
Ronald, this is twice I've read your statements regarding the "expensing of the new corporate center." What kind of center is this, and what kind of expenses do you think OO made? I ask because to me those words would indicate a capital investment, not an expense. Normally, investments in and improvements to property (even if the space is leased rather than owned) are put on the balance sheet as assets and depreciated over a number of years, not taken as a one-time hit to the current quarter. Also, even if it were expensed, why wouldn't that be included in the downgraded estimates you posted?

Regards,
Andrea
(corporate finance geek)
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