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This excerpt taken from the MRVL 10-K filed Jul 2, 2007. Other New Hire and Secondary
Grants: In
addition to grants issued to new hires at the commencement of their employment,
the Company occasionally issues secondary grants to employees for outstanding
performance, retention or other discretionary reasons outside of the annual
performance review cycle. During the Relevant Period, the Company granted new
hire and secondary options on 86 different dates, excluding assumption of
acquisition-related options. These dates included grants made from August 2004
onwards when a fixed grant date schedule was set on the first Friday of each
month. As a result of the internal review, the Company recorded additional
compensation costs for grants relating to 37 different grant dates, impacting
approximately two-thirds of the new hire and secondary grants (totaling
48,708,478 options). The original grant date with respect to such grants preceded
the appropriate measurement date and in substantially all instances, the stock
price on the former date was lower than the price on the appropriate
measurement date. Generally, the terms of new hire grants, except for their
exercise prices, are stated in employee offer letters which are acknowledged by
employees. For new hire grants, re-measurement dates were determined based on
the first instance when the Stock Option Committee grant date was picked. For
secondary grants, as there was no other reliable documentation available to
support the measurement date, the Company applied the date the grant was
submitted to stock administration for processing, which typically indicated the
conclusion of the grant process. The last date of submission was used unless
the submitted change was proven to be purely administrative in nature and
unrelated to the terms of the grant. Absent such submission documentation, the
Company used the date the grant entry was created in the option database, as
this was the most objectively verifiable date when the terms of the grant were
known, in accordance with the SEC Chief Accountant’s letter issued on September 19,
2006, outlining the SEC staff’s interpretation of specific accounting guidance
for registrants under APB 25.
This excerpt taken from the MRVL 10-Q filed Jul 2, 2007. Other New Hire and Secondary Grants: In addition to grants issued to new hires
at the commencement of their employment, we occasionally issue secondary grants
to employees for outstanding performance, retention or other discretionary
reasons outside of the annual performance review cycle. During the Relevant Period, we granted new
hire and secondary options on 86 different dates, excluding assumption of
acquisition-related options. These dates
included grants made from August 2004 onwards when a fixed grant date schedule
was set on the first Friday of each month. As a result of the internal
investigation, we recorded additional compensation costs for grants relating to
37 different grant dates, impacting approximately two-thirds of our new hire
and secondary grants (totaling 48,708,478 options). The original grant date with respect to such
grants preceded the appropriate measurement date and in substantially all
instances, the stock price on the former date was lower than the price on the
appropriate measurement date. Generally,
the terms of new hire grants, except for their exercise prices, are stated in
employee offer letters which are acknowledged by employees. For new hire grants, re-measurement dates
were determined based on the first instance when the Stock Option Committee grant
date was picked. For secondary grants,
as there was no other reliable documentation available to support the
measurement date, we applied the date the grant was submitted to stock
administration for processing, which typically indicated the conclusion of the
grant process. The last date of
submission was used unless the submitted change was proven to be purely
administrative in nature and unrelated to the terms of the grant. Absent such submission documentation, we used
the date the grant entry was created in our option database, as this was the
most objectively verifiable date when the terms of the grant were known, in
accordance with the SEC Chief Accountant’s letter issued on September 19, 2006,
outlining the SEC staff’s interpretation of specific accounting guidance for
registrants under APB 25.
This excerpt taken from the MRVL 10-Q filed Jul 2, 2007. Other New Hire and Secondary Grants: In addition to grants issued to new hires
at the commencement of their employment, we occasionally issue secondary grants
to employees for outstanding performance, retention or other discretionary
reasons outside of the annual performance review cycle. During the Relevant Period, we granted new
hire and secondary options on 86 different dates, excluding assumption of
acquisition-related options. These dates
included grants made from August 2004 onwards when a fixed grant date schedule
was set on the first Friday of each month. As a result of the internal review,
we recorded additional compensation costs for grants relating to 37 different
grant dates, impacting approximately two-thirds of our new hire and secondary
grants (totaling 48,708,478 options).
The original grant date with respect to such grants preceded the
appropriate measurement date and in substantially all instances, the stock
price on the former date was lower than the price on the appropriate
measurement date. Generally, the terms
of new hire grants, except for their exercise prices, are stated in employee
offer letters which are acknowledged by employees. For new hire grants, re-measurement dates
were determined based on the first instance when the Stock Option Committee grant
date was picked. For secondary grants,
as there was no other reliable documentation available to support the
measurement date, we applied the date the grant was submitted to stock
administration for processing, which typically indicated the conclusion of the
grant process. The last date of
submission was used unless the submitted change was proven to be purely
administrative in nature and unrelated to the terms of the grant. Absent such submission documentation, we used
the date the grant entry was created in our option database, as this was the
most objectively verifiable date when the terms of the grant were known, in
accordance with the SEC Chief Accountant’s letter issued on September 19, 2006,
outlining the SEC staff’s interpretation of specific accounting guidance for
registrants under APB 25.
This excerpt taken from the MRVL 10-Q filed Jul 2, 2007. Other New Hire and Secondary Grants: In addition to grants issued to new hires
at the commencement of their employment, we occasionally issue secondary grants
to employees for outstanding performance, retention or other discretionary
reasons outside of the annual performance review cycle. During the Relevant Period, we granted new
hire and secondary options on 86 different dates, excluding assumption of
acquisition-related options. These dates
included grants made from August 2004 onwards when a fixed grant date schedule
was set on the first Friday of each month. As a result of the internal review,
we recorded additional compensation costs for grants relating to 37 different
grant dates, impacting approximately two-thirds of our new hire and secondary
grants (totaling 48,708,478 options).
The original grant date with respect to a such grant preceded the
appropriate measurement date and in substantially all instances, the stock
price on the former date was lower than the price on the appropriate
measurement date. Generally, the terms
of new hire grants, except for their exercise prices, are stated in employee
offer letters which are acknowledged by employees. For new hire grants, re-measurement dates
were determined based on the first instance when the Stock Option Committee grant
date was picked. For secondary grants,
as there was no other reliable documentation available to support the
measurement date, we applied the date the grant was submitted to stock
administration for processing, which typically indicated the conclusion of the
grant process. The last date of
submission was used unless the submitted change was proven to be purely
administrative in nature and unrelated to the terms of the grant. Absent such submission documentation, we used
the date the grant entry was created in our option database, as this was the
most objectively verifiable date when the terms of the grant were known, in
accordance with the SEC Chief Accountant’s letter issued on September 19, 2006,
outlining the SEC staff’s interpretation of specific accounting guidance for
registrants under APB 25.
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