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To: Mark Finger who wrote (10187)	4/7/1998 12:01:00 PM
From: Marq Spencer	Read Replies (1) \| Respond to of 14631

Mark, Please read the 10k and my statements carefully. You write: >>The above statement is based on a misunderstanding of some accounting terms. Further, not all the "expenses" will actually consume cash, but some actually will be helpful.<< I never said that the restructuring charges will consume cash. I too said that the expenses will be helpful, because they've been pre-accounted for, among other things. And all sorts of lease payments, equipment depreciation, etc can be put towards "restructuring charges", so they will artificially reduce the "operating costs" for the quarter. BTW, this is the longest 10K that I've ever seen - over 200 pages long!!! Let me just paste the section from the 10K on Restructuring Charges: RESTRUCTURING CHARGES In June and again in September 1997, the Company approved plans to restructure its operations in order to bring expenses in line with forecasted revenues. In connection with these restructurings, the Company substantially reduced its worldwide headcount and consolidated facilities and operations to improve efficiency. The following analysis sets forth the significant components of the restructuring reserve at December 31, 1997: <TABLE> <CAPTION> RESTRUCTURING NON-CASH CASH ACCRUAL BALANCE AT EXPENSE COSTS PAYMENTS DECEMBER 31, 1997 ------------- ----------- ----------- ------------------- (IN MILLIONS) <S> <C> <C> <C> <C> Severance and benefits............... $ 21.9 $ -- $ 19.5 $ 2.4 Write-off of assets.................. 48.2 48.2 -- -- Facility charges..................... 34.7 7.7 3.8 23.2 Other................................ 3.4 2.2 .2 1.0 ------ ----- ----- ----- $ 108.2 $ 58.1 $ 23.5 $ 26.6 ------ ----- ----- ----- ------ ----- ----- ----- </TABLE> Severance and benefits represent the reduction of approximately 670 employees, primarily sales and marketing personnel, on a worldwide basis. Temporary employees and contractors were also reduced. Write-off of assets include the write-off or write-down in carrying value of equipment as a result of the Company's decision to reduce the number of Information Superstores throughout the world, as well as the write-off of equipment associated with headcount reductions. The equipment subject to the write-offs and write-downs consists primarily of computer servers, workstations, and personal computers that will no longer be utilized in the Company's operations. These assets were written down to their fair value less cost to sell. Facility charges include early termination costs associated with the closing of certain domestic and international sales offices. The Company expects to complete most of the actions associated with restructuring by the end of the second quarter of fiscal 1998.