RE:RE:RE:RE:RE:NOTWRONG- you still haven answered my questionAdamchess- That is definitely a posibility I have not considered. Although CXR has a history of pulling the trigger quickly, and in the past has not taken a year to put a deal together, you never know. My explanation was suggested to me by someone with knowledge in these things, who believes that a huge lump sum payout in one quarter or year, would distort the optics of EPS.
In any case the flexibility to do so is always a bonus.
adamchess wrote: Stockcoach1: I am not sure that would be correct, as the event that triggers the payment should normally decide to which accounting period the expense belongs. The evidence in this is that the amount deferred will accrue interest from the earlier period. I think the reasoning is more to keep cash available for significant purchases currently being worked on. Another good reason to buy more CXR shares.
quote=Stockcoach1]
Healthstock1234- to answer your question, it is strictly a move from accounting perspective, to divide the payment (deduction) into different quarters and different calendar years. Don't forget, this is a performance payment. If there is poor performance or no performance ... a smaller payment or no payment is made. Obviously CXR is looking to alter the payment date because they expect good performance that will trigger this clause.
It's all good.
healthstock1234 wrote:
Maybe it is better to ask them why they change the date of payment, but even that, the date is only 4 months later, not 4 years.
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