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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: E_K_S who wrote (70544)10/28/1999 10:30:00 PM
From: The Duke of URLĀ©  Read Replies (1) | Respond to of 97611
 
Can we assume that the deferred taxes have to be paid sometime in the future? Are those amounts you posted ($) millions or ($) thousands? Maybe these have something to do with the Alta-Vista sale and represent the capital gains tax due.

Millions,... Deferred taxes are an asset. Sort of like taxes that have been paid in advance.

Duke.



To: E_K_S who wrote (70544)10/29/1999 3:15:00 AM
From: rudedog  Respond to of 97611
 
Eric - see my other notes. This was explained as hedging the loan portfolio of CPQ capital which I think is a lot like selling the loans. I'm not the expert here but was told by someone who is, that this is a common practice for a company that builds a leasing business in order to move product (rather than to get into the loan business) - they give up potential upside on the loan portfolio in exchange for reduced risk.