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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Bindusagar Reddy who wrote (11407)	11/28/1999 8:30:00 AM
From: Chuzzlewit	Respond to of 21876

What happened here (in the case of the $550 MM receivable) is that the receivable was converted to a note because LU couldn't collect timely. That's quite different than establishing finance arrangements in advance. But in the case of routine financing I would consider the financing arm as a separate operating arm of the business. Then, when the manufacturing arm recognizes a positive cash flow from converting the receivable to a note, the financing arm recognizes a negative cash flow in purchasing the note. But both would be part of operations. You wouldn't have the financing arm segregated as a non-operating (or investing) arm. TTFN, CTC