Excluding share-based compensation expense and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 41%.
The adjustment took into account stock-based compensation expense, as well as other items.
Bank One said that stock-based compensation expense would hit fully diluted earnings per share by just over 2 cents.
Because the payments in a profits-interest plan represent a legitimate compensation expense, owners can charge payouts against earnings to reduce their business tax.
Compensation expense fell sharply in the fourth quarter below 40% of revenue.
Likewise, the company reported profits for the quarter of 52 cents a share excluding stock-based compensation expense, above the Street at 46 cents.
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Hologic, like many employers, had moved to a safe harbor ESPP with reduced benefits after accounting rule changes in 2006 required companies to recognize a compensation expense for ESPPs.
Profits were a penny a share, below the Street at 6 cents, although the company noted that the latest quarter included five cents a share in stock-based compensation expense.
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Coke, which grants options in the fourth quarter, says its decision to treat executive stock options as a compensation expense was made solely for the betterment of its own investors.
We paused to determine a compensation plan and expense budget for the sales team to determine when people would be hired and where they would work.
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Note that stock based compensation and corporate expense are not allocated to the geographies or retail so that the numbers do not add up (as you can see by the companies total operating margin declining 620 basis points in the fiscal third quarter but all of the geos are less than that).
Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges recorded in our Motorola Mobile business.
Companies like Facebook are allowed to treat the cost of non-cash compensation, such as stock options, as an expense that reduces profits, essentially the way they treat cash compensation such as salaries.
The payments were made, and however characterized as reimbursement of employee business expenses or compensation they were allowable business expense deductions.
Compensation--usually Lehman's biggest expense--was 49.5% of revenues and holding steady with prior quarters.
Ms Gibb claimed the NHS had "unjustly enriched itself" at her expense by failing to pay the compensation and sought to enforce the rest of her severance agreement at the High Court.
Four in ten (42 percent) are expecting a bonus based on performance, and many also enjoy perks, privileges, expense accounts, equity and stock options in their compensation packages.
Any financial economist worth his salt knows that they are, but so great was the pressure by companies on America's Financial Accounting Standards Board not to treat stock options as an expense that they were (again, legally) not treated as a form of compensation, and shareholders were milked.
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These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a contribution expense, a legal settlement charge, and the associated tax impact of these items, where applicable.
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