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To: hueyone who wrote (176307)	12/29/2003 7:09:38 PM
From: Dave	Respond to of 186894

Huey: You do make a good point regarding the "classification" of a stock grant since "stock compensation expense" is typically added to net income which leads to an over-statement of Cash Flow from Operations. My comments were related more to the expensing of stock options. However, when companies add back non cash charges to compute their CFFO, there are other charges that are more closely related to Investing Cash Flows (Depreciation & Amortization/Impairment of Goodwill) and Financing Cash Flows (Financing costs). As reported, I think the classification is fine. However, for analytical purposes, I agree with you. Stock Compensation expenses should be excluded from CFFO as well as Stock Option expenses. This should allow one to analyze a company's historical cash flows and make an apples to apples comparison.