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To: paul_philp who wrote (52097)	7/15/2002 1:33:20 AM
From: Mike Buckley	Respond to of 54805

Paul, Does anyone know if there is anything in the new S&P standards that would change the calculation for free cash flow. Heck if I know, but I did notice that Coke says their expensing of options will not affect cash flow. --Mike Buckley

To: paul_philp who wrote (52097)	7/15/2002 2:34:45 AM
From: hueyone	Read Replies (1) \| Respond to of 54805

I would love to see a more detailed breakdown and exactly the options difference. I will go back and read how S&P calculates option costs. In the case of Siebel I noticed that the Core Earnings number in the Barrons article is exactly equal to the pro forma reported earnings number giving effect to SFAS No. 123 that is reported in the notes to the financial statements on page 50 in the SEBL 10K. Therefore, I would venture to say that it appears very likely that S&P is using the Black Scholes estimates (SFAS 123) for options expense that companies provide in their notes to the 10ks. Best, Huey

To: paul_philp who wrote (52097)	7/15/2002 10:06:55 AM
From: hueyone	Respond to of 54805

Does anyone know if there is anything in the new S&P standards that would change the calculation for free cash flow? I now agree with you that there would probably be no change in most folks' free cash flow calculations. I believe it is to my loss (and others) that you are not willing to include JS in this disussion we are headed for about how expensing stock options effects income statements, cash flow statements and balance sheets. He has done some interesting thinking on the subject and would be an important contributor here. Best, Huey