Why are some ESPP shares being moved out of the Equity Holdings account to the stockholders ESPP account after the reclassification?
After the reclassification, SAIC will not be able to specifically identify and track shares of common stock purchased through the ESPP unless these shares are held in a separate account. SAIC must be able to identify and track shares purchased under the ESPP for a certain period of time to meet its tax reporting obligations. Although this functionality is available when the shares purchased under the ESPP are class A preferred stock, it will not be available when shares purchased under the ESPP are common stock unless these shares are held in a separate ESPP account. Other ESPP shares which fall outside this time period do not need to be tracked and will be held in the Equity Holdings account.
