Comments on: Another day, another option exchange program… http://www.footnoted.com/buried-treasure/another-day-another-option-exchange-program/ Morningstar's guide to what's hiding in SEC filings Tue, 07 Feb 2012 21:51:20 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Neil Carvin http://www.footnoted.com/buried-treasure/another-day-another-option-exchange-program/comment-page-1/#comment-8823 Neil Carvin Sat, 20 Jun 2009 20:30:23 +0000 http://www.footnoted.com/?p=3897#comment-8823 Michelle, I'm glad to see you shedding some light on the option exchange programs. NVIDIA did something similar. They purchased underwater stock options from employees for cash. The purchase resulted in a $140 million charge in the April 2009 quarter. Note 3 to the financial statements in the most recent 10-Q explains the purchase and charge in some detail. Employees that tendered their options received $3.00 cash for each option having an exercise price between $17.50 and $28.00 per share. Options having an exercise price over $28 were redeemable for $2.00 in cash. Michelle, I’m glad to see you shedding some light on the option exchange programs.

NVIDIA did something similar. They purchased underwater stock options from employees for cash. The purchase resulted in a $140 million charge in the April 2009 quarter.

Note 3 to the financial statements in the most recent 10-Q explains the purchase and charge in some detail. Employees that tendered their options received $3.00 cash for each option having an exercise price between $17.50 and $28.00 per share. Options having an exercise price over $28 were redeemable for $2.00 in cash.

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