Dell Accelerates Vesting of 'Out of the Money' Stock Options; Action Taken in Advance of FASB 123R Reporting Requirements.ROUND ROCK, Texas -- Dell (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DELL) today announced it is accelerating the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of certain unvested stock options previously awarded under its stock-based compensation plans. The purpose of the accelerated vesting is to reduce future stock option compensation expense that Dell would otherwise recognize in its results of operations with the adoption of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting of Financial Accounting Standards No. 123R, Share-Based Payment. This requirement becomes effective for Dell on Feb. 4, 2006, the beginning of its fiscal year 2007. The company is fully vesting previously granted stock options that have exercise prices higher than $30.75, the closing price of Dell common stock on Jan. 5, 2006, the effective date of the acceleration. Typically stock options at Dell vest ratably over five years from the date of grant. With the action announced today, Dell expects after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. stock-based compensation expense of approximately $250 million, or $0.10 per share, in fiscal year 2007. It had previously expected stock-based compensation expense of $0.18 per share for fiscal year 2007. About Dell Dell Inc. (NASDAQ:DELL) is a trusted and diversified diversified (di·verˑ·s information-technology supplier and partner, and sells a comprehensive portfolio of products and services directly to customers worldwide. Dell designs, builds and delivers innovative, tailored systems that provide customers with exceptional value. Company revenue for the last four quarters was $54.2 billion. For more information about Dell and its products and services, visit www.dell.com. Note: Dell's anticipated stock-based compensation expense for fiscal year 2007 is a forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on Dell's current expectations. Actual expense could differ materially from this projection because of a number of risks and uncertainties, including the impact of subsequent pronouncements or interpretations of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R on the accounting treatment of stock options and those risks described in Dell's periodic filings with the Securities and Exchange Commission. Dell is a trademark of Dell Inc. Dell disclaims any proprietary interest in the marks and names of others. |
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