Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 157.05

-0.5%

10:13 AM EST

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To: kech who wrote (122030)	7/24/2002 2:50:21 PM
From: A.L. Reagan	Read Replies (2) of 152472

If it is a long term option grant, that can't be exercised for 5 to 10 years then it is not an expense at the moment it is given. If you did a Black-Scholes valuation as of the vesting date (not PV'd to the grant date) and there is a period of time over which the option vests, agree that the expense should be charged ratably over the vesting period. But by discounting to the present value and factoring in the probability of forefeitures, you would get a similar answer to the multi-year amortization of a grossed-up amount. In reality, most of these option plans seem to have an annual grant feature.

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