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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (114680)2/27/2002 8:33:26 PM
From: David E. Taylor  Read Replies (3) | Respond to of 152472
 
Mucho:

There's no "time value" as such associated with the employee stock option grants. They are granted at an exercise price which equals the actual stock price on the day of grant, have a ten year expiration, and generally vest over 5 years beginning after a 6 month wait period when they can't be exercised.

For QCOM, I posted previously the effect on net earnings and EPS for FY 1998-2001 if the value were computed using a "Black-Scholes" approach and amortizing the cost over the vesting period. Take a look at Page A-43 of the proxy for additional details on the assumptions involved.

David T.