SHLD » Topics » Stock-based Compensation

This excerpt taken from the SHLD 10-K filed Mar 12, 2010.

Stock-based Compensation

We account for stock-based compensation arrangements in accordance with accounting standards pertaining to share-based payment transactions, which requires us to both recognize as expense the fair value of all stock-based compensation awards (which includes stock options) and to classify excess tax benefits associated with share-based compensation deductions as cash from financing activities rather than cash from operating activities. We recognize compensation expense as awards vest on a straight-line basis over the requisite service period of the award.

These excerpts taken from the SHLD 10-K filed Mar 17, 2009.

Stock-based Compensation

We account for stock-based compensation arrangements in accordance with SFAS No. 123(R), “Share-Based Payments.” SFAS 123(R) requires us to recognize as expense the fair value of all stock-based compensation awards (which includes stock options) and to classify excess tax benefits associated with share- based compensation deductions as cash from financing activities rather than cash from operating activities. We recognize compensation expense as awards vest on a straight-line basis over the requisite service period of the award.

Stock-based Compensation

FACE="Times New Roman" SIZE="2">We account for stock-based compensation arrangements in accordance with SFAS No. 123(R), “Share-Based Payments.” SFAS 123(R) requires us to recognize as expense the fair value of all stock-based
compensation awards (which includes stock options) and to classify excess tax benefits associated with share- based compensation deductions as cash from financing activities rather than cash from operating activities. We recognize compensation
expense as awards vest on a straight-line basis over the requisite service period of the award.

This excerpt taken from the SHLD 10-K filed Mar 26, 2008.

Stock-based Compensation

We account for stock-based compensation arrangements in accordance with SFAS No. 123(R), “Share-Based Payments.” SFAS 123(R) requires us to recognize as expense the fair value of all stock-based compensation awards including stock options, an accounting method that we adopted voluntarily in fiscal 2003, and classification of excess tax benefits associated with share-based compensation deductions as cash from financing activities rather than cash from operating activities. We recognize compensation expense as awards vest on a straight-line basis over the requisite service period of the award.

This excerpt taken from the SHLD 10-K filed Mar 28, 2007.

Stock-based Compensation

The Company accounts for stock-based compensation arrangements in accordance with SFAS No. 123(R), “Share-Based Payments.” SFAS 123 (R) requires the Company to recognize as expense the fair value of all stock-based compensation awards including stock options, an accounting method that the Company adopted voluntarily in fiscal 2003, and classification of excess tax benefits associated with share-based compensation deductions as cash from financing activities rather than cash from operating activities. The Company recognizes compensation expense as awards vest on a straight-line basis over the requisite service period of the award.

This excerpt taken from the SHLD 10-K filed Mar 17, 2006.

Stock-based Compensation

        The Company's stock-based compensation arrangements are detailed in Note 10. In fiscal 2003, the Company voluntarily elected to account for stock-based compensation using the fair value method on a prospective basis as permitted by SFAS No. 148, "Accounting for Stock-Based Compensation—Transition and Disclosure, an Amendment of FASB Statement No. 123" ("SFAS No. 148"). The effect of the election was not material to the results of operations for any period presented.

        In accordance with the disclosure requirements of SFAS No. 148, the pro forma effects of recognizing compensation income (expense) on net loss and loss per share, had the Predecessor Company applied the fair value method of accounting for stock options is as follows:

 
  Predecessor Company
13 Weeks Ended
April 30, 2003

 
millions, except per share data

   
 
Net loss, as reported   $ (862 )
Deduct: Total stock-based employee compensation income determined under the fair based method for all awards, net of related tax effects     38  
   
 
Pro forma net loss   $ (824 )
   
 
Basic/diluted loss per share:        
  As reported   $ (1.65 )
   
 
  Pro forma   $ (1.58 )
   
 

        All outstanding stock options of the Predecessor Company were cancelled in accordance with the Plan of Reorganization. Pro forma stock-based employee compensation income of $38 million for the 13 weeks ended April 30, 2003 was a function of the reversal of expense for options that were not vested upon cancellation of the outstanding stock awards of the Predecessor Company.

This excerpt taken from the SHLD 10-K filed Mar 15, 2006.

Stock-based Compensation

        The Company's stock-based compensation arrangements are detailed in Note 10. In fiscal 2003, the Company voluntarily elected to account for stock-based compensation using the fair value method on a prospective basis as permitted by SFAS No. 148, "Accounting for Stock-Based Compensation—Transition and Disclosure, an Amendment of FASB Statement No. 123" ("SFAS No. 148"). The effect of the election was not material to the results of operations for any period presented.

        In accordance with the disclosure requirements of SFAS No. 148, the pro forma effects of recognizing compensation income (expense) on net loss and loss per share, had the Predecessor Company applied the fair value method of accounting for stock options is as follows:

 
  Predecessor Company
13 Weeks Ended
April 30, 2003

 
millions, except per share data

   
 
Net loss, as reported   $ (862 )
Deduct: Total stock-based employee compensation income determined under the fair based method for all awards, net of related tax effects     38  
   
 
Pro forma net loss   $ (824 )
   
 
Basic/diluted loss per share:        
  As reported   $ (1.65 )
   
 
  Pro forma   $ (1.58 )
   
 

        All outstanding stock options of the Predecessor Company were cancelled in accordance with the Plan of Reorganization. Pro forma stock-based employee compensation income of $38 million for the 13 weeks ended April 30, 2003 was a function of the reversal of expense for options that were not vested upon cancellation of the outstanding stock awards of the Predecessor Company.

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