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To: Uncle Frank who wrote (48734)	11/9/2001 2:20:34 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Frank, I didn't judge you unfairly. I judged you fairly and this one time mistakenly. Pretty cool twist on things, huh. :) If the Yankess' batting average was commensurate with my track record in judging how you get me to do your work, they would have won the World Series. About the numbers, I'd have to see the statement you copied in context. Considering the time stamp and that I live on the right coast, I don't want to take the time immediately to do that. :) When you look at the 10K, take a look at the Consolidated Statements of Cash Flows. The first section is Operating Activities. The last line of that section is "Net cash provided (used) by operating activities." The link I'm using: sec.gov Catch you tomorrow! --Mike Buckley

To: Uncle Frank who wrote (48734)	11/9/2001 9:58:05 AM
From: Mike Buckley	Respond to of 54805

Good morning, Frank! Ready to continue the discussion my sleep so rudely interupted? :) When Thornley mentioned $1.2 cash flow from operations in FY01, I'm reasonably confident it's to be taken as the last line item on the operating cash flow statement. If you notice the abbreviated cash flow statement in the pdf file for the earnings report, it shows net cash flows of $1.2 billion prior to investing and financing activities. An accounting guru would be able to confirm for us that that would would be the same as the last line item on the operating cash flow statement once the SEC filing is available. Technically, you're probably right that the number we're discussing is the net operating cash flow as opposed to operating cash flow. But because it's the bottom line of the operating cash flow statement, it's generally referred to as operating cash flow. Shouldn't [net operating cash flow] track the top line, presuming gross margins don't decline? You're getting in over my head, but gross margins only impact part of the story. More important is the operating margin. There are other factors that can cause top-line revenue to veer from operating cash flow such as non-cash charges and credits and minority interests in subsidiaries, but I'm really not qualified to discuss that stuff. --Mike Buckley