Due to line cost capitalization entries in the first two quarters of 2001 line cost expenses were significantly below the amount budgeted for operating line cost expenses. In September of 2001,the company's Budget group was directed to retroactively reduce the line cost budget for 2001 by $2.7 billion. WorldCom also capitalized $743 million of operating line cost for third quarter. By the quarter of the 2001, employees in Accounting and Capital Reporting began refusing to make such entries without proper documentation.