Intel Corp., the world's largest computer-chip maker, said Tuesday that 2002 net income would have been reduced by $1.17 billion, or 38 percent, had the company treated stock options as an expense.
Earnings in 2002 would have been $1.95 billion, instead of the reported $3.12 billion, Intel said in its annual report to the Securities and Exchange Commission. The company's 2001 net income would have been lowered by $1.04 billion, or 80 percent, to $254 million, the company said.
Intel made its filing a day before the Financial Accounting Standards Board, which sets U.S. accounting standards, plans to meet to decide whether to put on its agenda the issue of treating stock options as an expense.
That may lead to the board issuing guidelines that force companies to begin treating all stock options as a salary expense next year, accountants have said.