Intel Corp (INTC)

[sgolds]

DewDiligence, while one of us is wrong in how money spent on stock repurchases is accounted, I will say this: If you are correct and this actual expediture is not currently expensed then I would be supportive of fixing this one thing. I only disagree with taking an expense where there is no money actually changing hands.

Thus, when a company issues new stock to increase the employee option pool, no money changes hands and the new stock is counted in the fully diluted share numbers in the quarterly report. The shareholders can calculate the dilution when they approve the stock issue initially.

However, if the company actually spends real cash to purchase shares on the open market (rather than take dilution), then this should be expensed. My understanding is that it is currently expensed, but if it isn't then this one problem can be fixed quite separately from the issue of taking an expense on a fictitious estimate of the value of the grant to the employee.