LIOX » Topics » Accounting for Stock-Based Compensation

These excerpts taken from the LIOX 10-K filed Mar 13, 2009.

Accounting for Stock-Based Compensation

Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

Accounting for Stock-Based Compensation

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based
Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the
vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB
25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

The Company has
stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

Accounting for Stock-Based Compensation

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based
Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the
vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB
25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

The Company has
stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

This excerpt taken from the LIOX 10-K filed Nov 10, 2008.

Accounting for Stock-Based Compensation

Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

 

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Table of Contents

LIONBRIDGE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

This excerpt taken from the LIOX 10-K filed Mar 14, 2008.

Accounting for Stock-Based Compensation

Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

 

63


Table of Contents

LIONBRIDGE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

This excerpt taken from the LIOX 10-K filed Mar 16, 2007.

Accounting for Stock-Based Compensation

Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), utilizing the modified prospective method whereby prior periods were not restated for comparability. SFAS 123R requires recognition of stock-based compensation expense in the statement of operations over the vesting period based on the fair value of the award at the grant date. Previously, the Company used the intrinsic value method under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), as amended by related interpretations of the Financial Accounting Standards Board (“FASB”).

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements.

 

63


Table of Contents

LIONBRIDGE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

This excerpt taken from the LIOX 10-K filed Mar 16, 2006.

Accounting for Stock-Based Compensation

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements. Lionbridge accounts for stock-based awards to employees using the intrinsic value method as prescribed by Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and related interpretations. Accordingly, no compensation expense is recorded for options issued to employees in fixed amounts and with fixed exercise prices at least equal to the fair market value of Lionbridge’s common stock at the date of grant. When the exercise price of stock options, restricted stock awards and restricted stock units granted to employees is less than the fair market value of common stock at the date of grant, Lionbridge records that difference multiplied by the number of shares under option as deferred compensation, which is then amortized over the vesting period of the options.

 

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Table of Contents

LIONBRIDGE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

The following table illustrates the effect on net income (loss) and net income (loss) per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards Statement No. 123 (SFAS No. 123), “Accounting for Stock-based Compensation”, to stock-based employee compensation:

 

     2005     2004     2003  

Net income (loss), as reported

   $ (3,913,000 )   $ 7,140,000     $ 2,532,000  

Add: Stock-based employee compensation expense included in reported net income (loss), net of related tax effects

     1,581,000       632,000       421,000  

Deduct: Stock-based employee compensation expense determined under fair value based methods for all awards, net of related tax effects

     (4,816,000 )     (4,905,000 )     (3,701,000 )
                        

Pro forma net income (loss)

   $ (7,148,000 )   $ 2,867,000     $ (748,000 )
                        

Net income (loss) per share:

      

Basic, as reported

   $ (0.08 )   $ 0.15     $ 0.07  

Basic, pro forma

   $ (0.14 )   $ 0.06     $ (0.02 )

Net income (loss) per share:

      

Diluted, as reported

   $ (0.08 )   $ 0.14     $ 0.06  

Diluted, pro forma

   $ (0.14 )   $ 0.06     $ (0.02 )

The fair value of each option was estimated on the date of the grant using the Black-Scholes option pricing model. The following assumptions were used for options granted: (i) weighted-average risk free interest rates of 3.8%, 3.0%, and 2.8% for 2005, 2004 and 2003, respectively, (ii) weighted-average expected option lives of 4.0 years for each of 2005, 2004 and 2003, (iii) no expected dividend yield, and (iv) an expected volatility factor of 84.0% for 2005, 84.0% for 2004, and 86.0% for 2003. The weighted average fair value of options granted during 2005, 2004 and 2003 were $3.71, $4.67 and $4.94, respectively.

This excerpt taken from the LIOX 10-Q filed Nov 9, 2005.

Accounting for Stock-Based Compensation

 

The Company accounts for its stock-based compensation plans under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. The following table illustrates the effect on net income (loss) and net income (loss) per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards Statement No. 123 (“SFAS No. 123”), “Accounting for Stock-Based Compensation”, as amended, to stock-based employee compensation:

 

    

Three Months Ended

September 30,


   

Nine Months Ended

September 30,


 
     2005

    2004

    2005

    2004

 

Net income (loss), as reported

   $ (2,444,000 )   $ 1,446,000     $ (1,275,000 )   $ 5,850,000  

Add: Stock-based employee compensation expense included in reported net income, net of related tax effects

     331,000       176,000       1,150,000       419,000  

Deduct: Stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects

     (1,171,000 )     (997,000 )     (3,586,000 )     (3,809,000 )
    


 


 


 


Pro forma net income (loss)

   $ (3,284,000 )   $ 625,000     $ (3,711,000 )   $ 2,460,000  
    


 


 


 


Net income (loss) per share:

                                

Basic, as reported

   $ (0.05 )   $ 0.03     $ (0.03 )   $ 0.13  

Basic, pro forma

   $ (0.07 )   $ 0.01     $ (0.08 )   $ 0.05  

Net income (loss) per share:

                                

Diluted, as reported

   $ (0.05 )   $ 0.03     $ (0.03 )   $ 0.12  

Diluted, pro forma

   $ (0.07 )   $ 0.01     $ (0.08 )   $ 0.05  

 

This excerpt taken from the LIOX 10-Q filed Aug 5, 2005.

Accounting for Stock-Based Compensation

 

The Company accounts for its stock-based compensation plans under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. The following table illustrates the effect on net income and net income per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards Statement No. 123 (“SFAS No. 123”), “Accounting for Stock-Based Compensation”, as amended, to stock-based employee compensation:

 

    

Three Months Ended

June 30,


   

Six Months Ended

June 30,


 
     2005

    2004

    2005

    2004

 

Net income, as reported

   $ 1,386,000     $ 3,711,000     $ 1,169,000     $ 4,404,000  

Add: Stock-based employee compensation expense included in reported net income, net of related tax effects

     503,000       124,000       819,000       243,000  

Deduct: Stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects

     (1,338,000 )     (1,195,000 )     (2,415,000 )     (2,812,000 )
    


 


 


 


Pro forma net income (loss)

   $ 551,000     $ 2,640,000     $ (427,000 )   $ 1,835,000  
    


 


 


 


Net income (loss) per share:

                                

Basic, as reported

   $ 0.03     $ 0.08     $ 0.02     $ 0.09  

Basic, pro forma

   $ 0.01     $ 0.06     $ (0.01 )   $ 0.04  

Net income (loss) per share:

                                

Diluted, as reported

   $ 0.03     $ 0.08     $ 0.02     $ 0.09  

Diluted, pro forma

   $ 0.01     $ 0.05     $ (0.01 )   $ 0.04  

 

This excerpt taken from the LIOX 10-Q filed May 9, 2005.

Accounting for Stock-Based Compensation

 

The Company accounts for its stock-based compensation plans under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. The following table illustrates the effect on net income (loss) and net income (loss) per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards Statement No. 123 (“SFAS No. 123”), “Accounting for Stock-Based Compensation”, as amended, to stock-based employee compensation:

 

    

Three Months Ended

March 31,


 
     2005

    2004

 

Net income (loss), as reported

   $ (217,000 )   $ 693,000  

Add: Stock-based employee compensation expense included in reported net income (loss), net of related tax effects

     316,000       119,000  

Deduct: Stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects

     (1,224,000 )     (1,617,000 )
    


 


Pro forma net loss

   $ (1,125,000 )   $ (805,000 )
    


 


Net income (loss) per share:

                

Basic, as reported

   $ 0.00     $ 0.01  

Basic, pro forma

   $ (0.02 )   $ (0.02 )

Net income (loss) per share:

                

Diluted, as reported

   $ 0.00     $ 0.01  

Diluted, pro forma

   $ (0.02 )   $ (0.02 )

 

This excerpt taken from the LIOX 10-K filed Feb 28, 2005.

Accounting for Stock-Based Compensation

 

The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements. Lionbridge accounts for stock-based awards to employees using the intrinsic value method as prescribed by Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and related interpretations. Accordingly, no compensation expense is recorded for options issued to employees in fixed amounts and with fixed exercise prices at least equal to the fair market value of Lionbridge’s common stock at the date of grant. When the exercise price of stock options granted to employees is less than the fair market value of common stock at the date of grant, Lionbridge records that difference multiplied by the number of shares under option as deferred compensation, which is then amortized over the vesting period of the options.

 

Lionbridge accounts for its stock-based compensation plans under the recognition and measurement principles of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. The following table illustrates the effect on net income (loss) and net income (loss) per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards Statement No. 123 (“SFAS No. 123”), “Accounting for Stock-based Compensation”, to stock-based employee compensation:

 

     2004

    2003

    2002

 

Net income (loss), as reported

   $ 7,140,000     $ 2,532,000     $ (4,785,000 )

Add: Stock-based employee compensation expense included in reported net income (loss), net of related tax effects

     632,000       421,000       851,000  

Deduct: Stock-based employee compensation expense determined under fair value based methods for all awards, net of related tax effects

     (4,905,000 )     (3,701,000 )     (1,976,000 )
    


 


 


Pro forma net income (loss)

   $ 2,867,000     $ (748,000 )   $ (5,910,000 )
    


 


 


Net income (loss) per share:

                        

Basic, as reported

   $ 0.15     $ 0.07     $ (0.15 )

Basic, pro forma

   $ 0.06     $ (0.02 )   $ (0.19 )

Net income (loss) per share:

                        

Diluted, as reported

   $ 0.14     $ 0.06     $ (0.15 )

Diluted, pro forma

   $ 0.06     $ (0.02 )   $ (0.19 )

 

The fair value of each option was estimated on the date of the grant using the Black-Scholes option pricing model. The following assumptions were used for options granted: (i) weighted-average risk free interest rates of 3.0%, 2.8%, and 3.2% for 2004, 2003 and 2002, respectively, (ii) weighted-average expected option lives of 4.0 years for each of 2004, 2003 and 2002, (iii) no expected dividend yield, and (iv) an expected volatility factor of 84.0% for 2004, 86.0% for 2003, and 93.0% for 2002. The weighted average fair value of options granted during 2004, 2003 and 2002 were $4.67, $4.94 and $1.19, respectively.

 

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