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To: rkral who wrote (67195)	3/5/2005 3:24:30 PM
From: RetiredNow	Respond to of 77400

Yes, but I thought options once granted had to be expensed in their entirety. So they only expense the vested portion? If so, then you are right, that will be an expense for 16 more quarters, if they halted everything immediately. So if it's $250M per quarter, that's not too bad. They make about $1.5B per quarter in net income. So that would represent 16% per quarter reduction of net income. But then add back in $1.5 B per quarter in buybacks, and that would add some of that back. That's still quite an overhang. How did you calculate $250M per quarter? That seems high to me, especially considering they only gave like 250M options out last year (can't remember where I read that).

To: rkral who wrote (67195)	3/5/2005 5:15:45 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Hi rkral, I just did my own estimate, based on your assumption that only vested options have to be expensed, and don't think the expense would be as linear as you think. I think that if they stop all options grants in July of this year, then the quarterly expenses would be as follows over the next several years: FY'06 = $500M per quarter ($2B off net income) FY'07 = $400M per quarter ($1.6B off net income) FY'08 = $300M per quarter ($1.2B off net income) FY'09 = $200M per quarter ($0.8B off net income) FY'10 = $100M per quarter ($0.4B off net income) FY'11 = $0 per quarter ($0 off net income)