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To: LLCF who wrote (51)	12/12/2001 1:29:26 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 445

DAK - ie. isnt' Warren saying that the 'analyst' has to count this as an expense one way or the other [assume constant dilutions with more stock every year in the spread sheet] or hold stock constant and lower the earnings projections???... To the best of my knowledge, no one who has agitated for the expensing of employee stock options has ever given the slightest indication that they would be satisfied with treating the expense as the dilution that it actually is, or that they had even considered it as a possibility. If accounting is supposed to audit the company, and not the shareholders, then the fact that the company is worth $98M with cash compensation and $100M with option compensation seems to me to be strong evidence that it is not reasonable to make a $2M compensation expense entry on the income statement in both cases. Regards, Don