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How does Trefis account for employee stock options?

April 26, 2017account employee stock options trefis

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How does Trefis account for employee stock options?

1 Answer

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We use the Treasury Stock Method to account for dilution from stock options based on the option count and weighted-average price reported by tranche in the company’s annual or quarterly filings. We exclude non-cash stock-based compensation from the calculation of divisional free cash flows.