To: John Koligman who wrote (57018 ) 2/4/2002 12:59:02 AM From: Stock Farmer Read Replies (1) | Respond to Yah, it gets pretty goofy. When companies stray from their core business and into lending... well, that's a recipe for disaster. Unless it's a bank. Our loan financing arrangements may include not only financing the acquisition of our products but also providing additional funds for soft costs associated with network installation and integration of our products and for working capital purposes. For example, as a result of market price volatility of our publicly traded equity investments, we experienced a $5.76 billion ($3.81 billion, net of tax) decrease in net unrealized gains during fiscal 2001 on these investments. As of July 28, 2001, our publicly traded equity investments had gross unrealized losses of $784 million. [note: implies loss on private investments of 4.92 Billion]Recent events have adversely affected the public equities market and general economic conditions may continue to worsen. As a result , subsequent to fiscal 2001, we may recognize in earnings declines in fair value of our publicly traded equity investments below the cost basis that are considered to be other-than-temporary
