5-1. How do restricted stock unitsdiffer from performance units? And how do these differ from stockoptions?
5-2. From this companyâs note 12 on share-based payments,determine if this is a compensatory plan or noncompensatory plan?How can you tell?
Note 12: We provide for equity-based incentives to beawarded to key employees and non-employee directors. Currently,these incentives consist of restricted shares, restricted stockunits (which may also be referred to as deferred stock units),performance units, and stock options. These awards are administeredprimarily through the 2010 Equity and Incentive Compensation Planinitially approved by our shareholders in August 2010 andre-approved in August 2015. Awards under this plan may be in theform of stock options, stock appreciation rights, restrictedshares, restricted stock units, performance shares, performanceunits, incentive awards, and other share-based awards. Awards underthis plan may be granted to our non-employee directors,consultants, officers, and other employees. Deferred stock unitsgranted to non-employee directors vest immediately and, along withdividends credited on those deferred stock units, are paid out inthe form of common shares upon termination of service as anon-employee director. At April 30, 2016, there were 5,436,296shares available for future issuance under this plan.
5-3. Prepare the journal entries that produced the table ofsummary of [their] option activity.
The following table is a summary of our option activity.
Number ofOptions Weighted-Average Exercise Price
Outstanding at May 1, 2015 957,000 $ 112.45
Granted 370,000 114.71
Exercised 2,000 47.78
Cancelled 80,000 111.52
Outstanding at April 30, 2016 1,245,000 $113.29
Exercisable at April 30, 2016 â $â
5-4. Would the stock optionsoutstanding at the April 30, 2016 yearend be dilutive securitiesfor purposes of computing Diluted Earnings per Share? How can youtell?
5-1. How do restricted stock unitsdiffer from performance units? And how do these differ from stockoptions?
5-2. From this companyâs note 12 on share-based payments,determine if this is a compensatory plan or noncompensatory plan?How can you tell?
Note 12: We provide for equity-based incentives to beawarded to key employees and non-employee directors. Currently,these incentives consist of restricted shares, restricted stockunits (which may also be referred to as deferred stock units),performance units, and stock options. These awards are administeredprimarily through the 2010 Equity and Incentive Compensation Planinitially approved by our shareholders in August 2010 andre-approved in August 2015. Awards under this plan may be in theform of stock options, stock appreciation rights, restrictedshares, restricted stock units, performance shares, performanceunits, incentive awards, and other share-based awards. Awards underthis plan may be granted to our non-employee directors,consultants, officers, and other employees. Deferred stock unitsgranted to non-employee directors vest immediately and, along withdividends credited on those deferred stock units, are paid out inthe form of common shares upon termination of service as anon-employee director. At April 30, 2016, there were 5,436,296shares available for future issuance under this plan.
5-3. Prepare the journal entries that produced the table ofsummary of [their] option activity.
The following table is a summary of our option activity.
Number ofOptions Weighted-Average Exercise Price
Outstanding at May 1, 2015 957,000 $ 112.45
Granted 370,000 114.71
Exercised 2,000 47.78
Cancelled 80,000 111.52
Outstanding at April 30, 2016 1,245,000 $113.29
Exercisable at April 30, 2016 â $â
5-4. Would the stock optionsoutstanding at the April 30, 2016 yearend be dilutive securitiesfor purposes of computing Diluted Earnings per Share? How can youtell?
