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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (47482)	2/19/2002 12:49:48 PM
From: Steve Lee	Read Replies (1) \| Respond to of 64865

Case A) it would seem fair to allow the total revenue with any re-org costs being spread out over x years where the company decides the value of x. Case B) you can allow the total rev with re-org costs again spread out over x years. Problem with that scenario is how to account for the cash payout. Unfair to expect the company to count it as a cost in current period as benefits will be reaped (hopefully) long term. But there is a cost that must be reflected on an annualised basis if revs from the purchase are included. So I guess again we allow the cash expense to be spread out over y years where I would expect y to be larger than x. Again, the company gets to choose y. The company can shift earnings between years according to what it chooses for x an y values. But it can't just "gain" earnings from mergers as was/is the case with pro forma these last few years.