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To: hueyone who wrote (64525)	9/14/2003 12:18:45 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

But at least Microsoft is now admitting the reality that stock options are a business expense. They certainly didn't do this for publicity or because they want to report lower earnings than they actually have (lol!); they did this for one reason---because expensing stock options on the income statement more accurately reflects the economic results of the company's operations. That isn't why Hueyone! Msft is a mature company with nothing to gain from options anymore. Otoh, their competition, which I personally believe are the net companies like Yahoo, may be in a position to benefit from options in the future in a hypergrowth scenario as msft declines. Similar to what happened to Oracle/IBM in 1993 timeframe. Msft was one of the largest participants in stock options in the 90s, they used options as a tool against some of their competitors who did not embrace them. Where was msft's concern about operating results then? If I were the CEO of a mature company, or one who took the wrong direction I'd be out against options now too.

To: hueyone who wrote (64525)	9/15/2003 12:40:13 AM
From: PerryA	Respond to of 77400

But at least Microsoft is now admitting the reality that stock options are a business expense. They certainly didn't do this for publicity or because they want to report lower earnings than they actually have (lol!); they did this for one reason---because expensing stock options on the income statement more accurately reflects the economic results of the company's operations. Maybe Bill learned something from Warren while playing bridge! In all honesty, I am cynical enough to suspect that MSFT would take the opposite position if it they considered it in their best interest. Being cash flow positive does wonders for a company's integrity. Regards, PerryA