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

To: sea_biscuit who wrote (22123)	5/7/2000 11:25:00 AM
From: The Phoenix	Read Replies (2) \| Respond to of 25814

We've argued this on the CSCO thread already. Cisco distributes NQ's - there are no capital gains. The writer didn't do his due diligence. There is a "tax benefit" gain on the income statement however it is not included in per share earnings. Finally this tax benefit gain is a result of the exhaustion of shares held by CSCO and exercised by the grantee and has ZERO to do with taxes paid by the grantee. I could go into more detail but it's probably not a discussion you're going to follow at this point. The point is CSCO repurchased $323M in CSCO stock for options grants in 1998. When the grantee's exercise their options there is a capital gain to CSCO. This is where that income is coming from. And... well... the law requires corporations to reflect capital gains regardless of where they come from... Funny how you keep coming up with new arguements. What happened to the personal income per household argument???