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To: Roger L. Chuchen who wrote (1041)	5/10/2000 10:38:00 AM
From: David W. Taylor	Read Replies (2) \| Respond to of 2013

>> Analysts usually take these factors out in calculating the intrinsic value of the company. >> This has become a very common practice in the last year or so. Before then these sorts of charge were viewed for what they are, which is a negative thing.

To: Roger L. Chuchen who wrote (1041)	5/10/2000 1:51:00 PM
From: MeDroogies	Respond to of 2013

That is correct. However, it is reflected in cash somewhere. That is, when layoffs are imminent, a company will set aside cash for termination packages. While that cash is still in the company kitty, the company will take the charge early, as it is a more beneficial way of accounting for the cash that will, ultimately, leave the company coffers. It also reduces surprises in upcoming quarters, and allows people to gauge the company's effectiveness in real terms. That is, since the truly important numbers are cash flow and profit (before charges or gains), you can always make a comparison. If companies didn't take the charges, then you'd be comparing apples and oranges ongoing, since they don't lay people off every quarter. Remember, the sword cuts both ways....companies will report one-time gains in a similar fashion (such as when they sell stocks in other companies they own).