Here's the big problem for the company and the reason the CEO and CFO got fired: This is a systematic overstatement of EPS, for both 2010 and 2011. Company overstated 2010 by $20 million and 2011 by net $40 million, and thought they could make it up through the restructuring reserve via Pringles deal. Unfortuantely they got caught.
2010 EPS will go down by $.70/share 2011 EPS will go down by $1.30/share
I disagree about the math. I believe one does offset the other. It HAS to. They failed to take the payments as a deduction, therefore increasing profits. Soner or later, they would have to take the expense. Seems like profits will be better going forward.