Skip to main content
No. of Recommendations: 1
Let's resort to bookkeeping. Debits and Credits. And let's run an example.

Try again, but consider two things.

1. Don't wave away the granting of the option, since that is exactly the thing which is being recorded as an expense which the non-GAAP figure omits.

2. There *is* cash when the option is exercised. An option is a right to purchase so many shares at such and such a price. The expectation is that the price of the option will be significantly below market price at the time the option is exercised. But, the employee does have to purchase the shares from the company.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.