$60MM is non-recurring acquisition expense - capital expenditure is an asset - and therefore not an 'expense' this year. In his intro his statement that there

$60MM is non-recurring acquisition expense - capital expenditure is an asset - and therefore not an 'expense' this year. In his intro his statement that there is a problem with 'convertible bonds' refers to this $11MM non-cash interest expense on the convertible senior notes. On the convertible notes, the accrued 'non-cash interest expense' (which is not an expense (: ) will eventually convert to stock and dilute stock holders. The stock-based compensation is now $117MM and doubles to $238MM next year and is a huge hit on their earnings, current and future. Compared to the pitiful $11MM 'non-cash interest expense' which is not an expense :).