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

To: RetiredNow who wrote (66687)	12/2/2004 1:25:33 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 77400

Almost impossible to be precise, but indications are it has to do with accounting for pooling-of-interest purchases which were discontinued at about the same time as the "discrepancy" Ron's uncovered. Suggest Ron asks this question directly to Cisco IR and publish the response!!! But we can dig a bit for fun. I don't have the kind of time I had back a few years to root around, sorry this will be very superficial. Start with the reported impact on cisco shares due to pooling transactions. In the 10K for FY 2000, the total was 353.6 M (10K P 51) This number consists of Cisco shares exchanged for KibbleCo shares (shares "issued") plus Cisco options exchanged for KibbleCo options (options "assumed"). Now glance in in the statement of comprehensive income on P 45 FY 00 10K, and note that the consideration allocated to "pooling" was 20 M shares. Does this mean that the other 333.6 M shares must have been options assumed? Wait a minute, in FY 00, in page 64 (same ref) the total number of stock options "issued and assumed for the whole company was only 295 M. Lightbulbs should be going on right about now, and there's enough data to show you that "pooling" allows some very interesting hijynx with respect to allocation and reporting of costs!!! It was discontinued for a reason.