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To: Charles Tutt who wrote (47477)2/19/2002 11:25:47 AM
From: Steve Lee  Read Replies (1) | Respond to of 64865
 
What is proper pro forma usage? Every financial event is a result of a management decision. Unforeseen things and demand cycles happen, and it is part of managements' job to allow for them through hedging, insurances, diversifications etc.

To simplify it take a household budget. It's no good saying "If my roof hadn't fallen in during the storm I would have been OK this year" and then next year your car's engine blows up, then you lose your job the following year, then after that you lose on the markets, then the next year your central heating or air conditioning needs replacing. Without all these "one time events" u would be OK, but the bottom line is you aren't, cos you haven't managed risk.

I believe if a company lays someone off, they should expense that layoff over a period equal to the time of employment.