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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (4)	6/10/2002 5:48:46 PM
From: hueyone	Respond to of 786

Unless I've gone totally crackers By George, I think you have Ron. Perhaps some new blood will arrive and help straighten you out. I don't see the point of just the two of us going back and forth on the same issues. Best, Huey

To: rkral who wrote (4)	6/10/2002 6:58:01 PM
From: hueyone	Read Replies (1) \| Respond to of 786

Unless I've gone totally crackers, I believe you were correct the first time, when dividing 722M by the 0.37 to get $1950M. When in doubt, just ask yourself how you would get from a pre-tax number to an after-tax number. Most everyone gets that direction correct .. we just multiply the pre-tax by the tax rate. Going the other way? Divide the after-tax by the tax rate. Ron: Please do the math yourself. In this case we are trying to to determine how much additional pre tax expense it would take to reduce after tax net income by 722 million dollars. The answer is 722M/(1-tax rate). When in doubt, don't ask questions, just do the math and see if it works. I stand by this calculation.<gg> Best, Huey

To: rkral who wrote (4)	6/13/2002 11:31:47 AM
From: hueyone	Respond to of 786

It will be interesting to see the details of Standard & Poor's new accounting method re options. They planned to start in June, so we should know something soon. I checked a couple of the standard two page Standard & Poor reports yesterday and could see no change. As I recall, Standard & Poors said they were going to have difficulty supplying the Core Earnings number (to include provision for stock option compensation) on a quarterly basis, because companies currently do not provide stock option information on a quarterly basis. Even so, judging by the difficulty we are having in pinning the information down from the annual 10ks and Proxy statements, S&P may have trouble gleaning the information from there as well, (or perhaps we have need to review the information contained therein more closely). I consider the lack of accounting for stock options to be a major skeleton in the closet just waiting to come out. It is not a matter of will it come it, but rather is a matter of when. The S&P reporting is the first step in this direction. Best, Huey