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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (63038)	2/10/2003 11:35:11 AM
From: rkral	Read Replies (1) \| Respond to of 77400

OT ... John, I'll post the raw data .. but let me first say ... I didn't make any adjustment for "Tax Benefit from Stock Option Exercise". My number is simply the sum of the differences between "GAAP" and "pro-forma" net incomes reported in the SFAS 123 footnotes .. for the last 29 quarters .. using 10-Ks and one 10-Q. Not knowing the entire details of the SFAS 123 reported number, I'm assuming the SFAS 123 pro-forma reported number already considers the tax benefit. If it doesn't, the actual difference in net income between expensing vs. not-expensing is HUGE. Discontinuing an options program would be like a dope addict going cold turkey, especially considering the "liability" of unvested options which have yet to be expensed. Regards, Ron

To: Stock Farmer who wrote (63038)	2/10/2003 12:13:23 PM
From: rkral	Read Replies (1) \| Respond to of 77400

John, the source for the $5.67 billion (after tax) compensation expense number CSCO - July fiscal year - millions After-tax compensation expense per SFAS 123 footnotes Year GAAP Net Income/Pro-Forma Net Income/Comp. Expense 1Q2003 $618 $250 $368 FY2002 $1,893 $373 $1,520 FY2001 ($1,014) ($2,705) $1,691 FY2000 $2,668 $1,549 $1,119 FY1999 $2,023 $1,487 $536 FY1998 $1,350 $1,109 $241 FY1997 $1,051 $899 $152 FY1996 $913 $872 $41 Totals $9,502 $3,834 $5,668 The first two columns from 10-Ks and one 10-Q. Third column is difference of first two. As stated in earlier post, I've made no adjustment for Tax Benefits of Exercise. Note that 1st quarter FY2003 annualized is another $1,472 million. Ron P.S. Sorry the most recent data is on top.