Message-ID: <20535179.1075854702976.JavaMail.evans@thyme> Date: Mon, 3 Apr 2000 10:57:00 -0700 (PDT) From: eric.bass@enron.com To: bryan.hull@enron.com, david.baumbach@enron.com, michael.walters@enron.com Subject: FINAL DECISION ON ACCRUAL VALUE Cc: brenda.herod@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: brenda.herod@enron.com X-From: Eric Bass X-To: Bryan Hull, David Baumbach, Michael Walters X-cc: Brenda F Herod X-bcc: X-Folder: \Eric_Bass_Dec2000\Notes Folders\Sent X-Origin: Bass-E X-FileName: ebass.nsf Tom has come to a decision on what to do with the ubiquitous accrual value. 60% of this value should be credited to Greg's Transport expense on a monthly basis. Tom, in turn, will cover Ed on this portion of the expense. For example: Accrual Value comes out to be $300,000 for the month of April. This means that: Greg's portion of this value is 60% of $300,000 = $180,000 Tom's portion of this value is 40% of $300,000 = $120,000 Greg's Transport Expense is ($700,000) So, Tom will cover $180,000 of this expense Greg's adjusted Expense is ($520,000) Greg's P&L is net better off by the $180,000 of accrual value Tom's P&L is net better off by $120,000 of accrual value which had not been previously recognized. Ed's P&L is net unchanged from all of the above. Call with questions. Eric x3-0977