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To: H James Morris who wrote (148253)	9/30/2002 10:22:01 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I believe Bill Miller is hurting the clients of his mutual fund in a very bad way. Bill Miller stated he was buying a lot more Tyco share due to the fact the problem was not with the firm but only with Kozlowski. I believe Bill Miller to be quite inaccurate. "The other $52.8 million, however, doesn't appear to have been counted as an expense at all, according to three accounting experts who reviewed Tyco's filing. Instead, Tyco seems to have hidden the sum in two different reserve accounts that had been previously established on the balance sheet for unrelated purposes. The majority of the money, $41 million, was booked against "Accrued Federal Income Tax," the filing says, in effect reducing sums that Tyco had put aside to pay its federal corporate taxes. "This looks like blatant misstatement of both the income statement and the balance sheet," said Charles Mulford, an accounting professor at Georgia Institute of Technology in Atlanta, who reviewed the Tyco report but isn't involved in the case. Based on the filing, Mr. Mulford said the maneuver appears to have improperly inflated Tyco's pretax income by $52.8 million in the period, the fourth quarter of fiscal 2000. For that quarter, Tyco reported net income of $1.1 billion before the TyCom gain. Mr. Mulford called dipping into the income-tax kitty particularly "egregious," and said "it would be very surprising if it wasn't picked up by the auditors."" online.wsj.com