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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: brushwud who wrote (155660)	4/11/2005 11:11:05 PM
From: Biomaven	Read Replies (1) \| Respond to of 275872

Companies will start taking a charge for the unvested portion of already-granted options when the new rules go into effect in Q3 (quarters beginning after June 15, 2005). New options are expensed over their vesting period (actually over their "service period," a new concept, which will generally correspond to the vesting period for vanilla options.) The exercise price paid to the company still goes to APIC - that remains unchanged. The deferred tax accounting is pretty complicated though - companies have to go back to 1995 and track all their grants since then. Excess tax benefits are now presented as financing cash inflows rather than operating cash flows. Peter