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In May, the company said it would expense the cost of that plan, reducing A.I.G.'s net income by $469 million over five years.
Wal-Mart Stores said that it would expense stock options and that a new $5 billion share-buyback program would replace an existing one.
Ever since Coca-Cola announced that it would expense option grants a few weeks ago, a handful of companies, including Bank One and Amazon.com, have announced similar measures.
Standard & Poor's Equity Research cut earnings estimates for McDonald's after the restaurant chain said it would expense stock options throughout 2004.
The issue, whether stock option grants should be expensed on corporate income statements, was in vogue all summer following a mid-July announcement from Coca-Cola that the beverage giant would expense grants beginning in the fourth quarter of 2002.
Similar(52)
("I would totally expense this").
My first response was, under what category would this expense claim be?
Operating in cooler climates, such as Boston, would add expenses.
Supporters say the change would hold expenses down by introducing more competition into the system.
The Red Cross said it would cover expenses for months, if necessary.
Its idea was that selling car insurance by mail order would reduce expenses by as much as 40%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com