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

To: Stu R who wrote (119890)	6/5/2002 4:16:16 AM
From: JGoren	Respond to of 152472

I haven't checked but it should be a compensation expense. Look, the employee recognizes ordinary income for the difference between the strike price and market price at exercise, so there is an equivalent deduction by the corporation under compensation paid to employees. Logically, you can break it out as a separate line item expense or put it in the footnotes to the income statement, e.g., employee stock options pursuant to the company's stock option plans were exercicsed during the year on a total of 1,000,000 shares for an aggregate option expense, based on the difference between the option price and the market value on the date of exercise, of $45 million.