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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: SJSharky who wrote (8631)	1/30/1998 3:08:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 11057

Could you point to the FASB bulletin that defines "special" versus "extraordinary"? Betcha First Call will exclude the charge regardless. In any case, it seems to have worked, as the street thinks they have this problem licked. >I will agree though they do appear to be one-time charges. I dunno about that. From the vague way they described it in the cc, it seems like mostly write-offs and downs of assets. What if, as a matter of course, the company takes an aggressive approach to depreciation?

To: SJSharky who wrote (8631)	2/2/1998 1:46:00 PM
From: John Cuthbertson	Read Replies (2) \| Respond to of 11057

Actually, there are no provisions for such charges in the accounting rules. That's why they could only mention these "special" charges in the verbage portion of the press release. Ryan, Yes, you're right, in the specific case of WDC's non-recurring expenses this quarter, the provisions in GAAP for separating them as extraordinary items do not apply. I was just trying to make a general point about excluding extraordinary items in reporting profits and losses. And, accounting rules aside, these charges would in fact seem to be non-recurring items, as you said. ==John