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

To: GVTucker who wrote (67232)	3/7/2005 9:07:27 AM
From: Elroy	Respond to of 77400

That's interesting, so for taxes they calculate options expense as what they actually gave away (the intrinsic value) when they gave it away (on exercise). Seems they should be able to do that for accounting purposes as well, but it would make for amazingly lumpy quarters, even amazingly lumpy years, so perhaps it wouldn't make sense to give a picture of current business trends. Reminds me of Lucent, a company that is operating at a cash operating margin of something like 1%-2%, but reporting an accounting operating margin of about 10% due to non-cash pension credits flowing through their income statements. The pension credit makes their current operations appear tremendously more profitable than they actually are.