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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (54259)	8/8/2002 1:14:49 AM
From: elpolvo	Respond to of 65232

I love ya man good. keep it up. love kin make ya feel better. :-)

To: Dealer who wrote (54259)	8/8/2002 9:51:15 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

Intel Says 'No' to Expensing Stock Options By Duncan Martell SAN FRANCISCO (Reuters) - Intel Corp., the world's largest semiconductor maker, said on Thursday that it planned to buck a trend by not counting stock options as an expense, joining a growing list of dissenting high-technology firms. . Intel (NasdaqNM:INTC - News), following Cisco Systems Inc. (NasdaqNM:CSCO - News) and Microsoft Corp. (NasdaqNM:MSFT - News), said that it decided to forego treating options as an expense, confirming information that a source familiar with the matter had provided to Reuters earlier. Echoing comments from other companies that have already said they would account for stock options as an expense, Intel's Chief Financial Officer Andy Bryant said "There is no good valuation model to determine the fair value of unexercised employee stock options." Intel said that as of June 2, its five most highly paid executives held 2 percent of outstanding options, adding that its goal is to keep dilution related to its options program to an average of less than 2 percent annually. Also, Intel said that its Chief Executive Officer, Craig Barrett, and Bryant would certify Intel's financial results, in keeping with a U.S. Securities and Exchange Commission directive. The SEC edict comes amid accounting and management scandals at some U.S. companies, including Enron and WorldCom. Technology companies, unlike companies in other industries, count on the issuance of stock options as a major source of compensation for its employees, from executives to rank-and-file workers. In the case of Cisco, for example, its top 25 executives receive less than 6 percent of the total number of options granted, Cisco Chief Executive John Chambers said on Tuesday. Cisco and Microsoft have both said they won't treat options as an expense. But a number of other major companies have recently said they will account for stock options as an expense, including Coca-Cola Co. (NYSE:KO - News), General Electric Co. (NYSE:GE - News), and General Motors Corp. (NYSE:GM - News). At the same time, some of those companies have said that accounting for them accurately will be difficult, because the value of stock options varies so much with the market. In a surprise move, U.S. accounting rule-makers on Wednesday agreed to explore the impact of requiring companies to disclose stock option expenses on their income statements, in a bid to pull that data out of footnotes to regulatory filings and place it before the eyes of investors. The Financial Accounting Standards Board's move came as it tentatively agreed to amend rules so that companies that opt to expense options can choose between a few alternative accounting treatments. Many tech heavyweights have already weighed in on the issue, with Cisco's Chambers arguing that accounting for the value of options on the income statement is far from accurate. Now, when companies report the effect of stock options, they use complex mathematical formulas, with the most popular one being the Black-Scholes method. In Intel's case, in the mid-1990s it made options available to all full-time employees. That contrasted with what was the case in 1968, when the chipmaker was founded, when it granted stock options only to its professional staff.