Expense

The Expense page manages the calculation and reporting of the expense related to your option and restricted stock awards. The expense algorithms allocate the compensation expense according to the vesting schedule provided for each grant in the uploaded Vesting file, and automatically adjust the expense for any actual forfeitures and/or accelerations.

If the Prospective Method is selected on the System page under the Configure section, then the report data items that have a "(Pre ASC 718)" appended to the title will display values. If the Retrospective Method is selected, then the data items that have a "(Pre ASC 718)" appended to the title will display zeros.

1. Select Report Period Type: This selection has been added to the Expense page. The report period type helps navigate between running reports for periods under Close-the-Books and running ad-hoc reporting periods. The report period types are:

ii. Predefined: Reporting periods that are specific to Close-the-Books functionality. The period will default to the earliest, unclosed period as established under the Configure - Reporting Periods page.

iii. Historical: Saved results from closed, pre-defined reporting periods specific to Close-the-Books functionality.

2. Custom Reporting Period Start Date and End Date. This is usually the current reporting period, that being a monthly reporting period, a quarter-to-date reporting, or a year-to-date reporting period. The dates can also be used to project expense for a future period or calculate the cumulative expense for a historical period. Reporting Dates default to your last entry.

Note that forfeitures are applied according to the forfeiture date in the upload file, not the date when the actual forfeiture record was uploaded. Thus, if you upload forfeitures for a period which is already complete, you cannot see the effect of those forfeitures on the prior period in the current reporting period.

Note: Reporting period must start on or after ASC 718 adoption date, i.e., Reporting Period Start date should be greater than or equal to ASC 718 adoption date.

The selection determines if Expense calculations will be based on mobility reporting data on file for mobile optionees and their grants. The choices are Yes and No.

If Mobility Reporting is Yes, mobility data will be considered for the calculations, and the tranche-level detail report is presented in a format that accommodates mobility data, mobility transactions, and combines MPA and Non-MPA grants on the same report. The grant summary report also will provide mobility reporting.

If Mobility Reporting is No, the Universal format can be selected for the tranche-level detail report where MPA and Non-MPA grants are combined but mobility data will not be considered.

a. Legacy Method - Default: continues the current accounting treatment and expense allocation methods for retirement eligible grants.

b. Enhanced Method: improves on the expense allocation for all retirement eligible grants while also accommodating modification accounting for modified grants. After a modification event, retirement eligible grants automatically use the Enhanced Method, even if the choice was Legacy Method.

The selection determines if Liability and Non-Employee Awards will be part of the report. The choices are Yes and No.

If Liability and Non-Employee Reporting is Yes, all Liability and Non-Employee Awards in the client data will be processed and output in the report. The Universal report format will be automatically selected as the unique columns pertaining to these types of awards are captured only in that format.

This drop-down indicates whether or not to exclude grants with zero outstanding shares from the report. The underlying purpose for this is to reduce the size of the report being generated. The default is YES, exclude grants with zero outstanding shares. This setting will be carried over to subsequent selections of this report (ie. if set to NO and the report is run, the next entry to this page will show NO for this setting).

This drop-down indicates whether or not to exclude grants with zero expense amounts from the report. The underlying purpose for this is to reduce the size of the report.

The Grant selection filter allows grants to be selected based on whether they are considered mobile or non-mobile. The dropdown is enabled when Mobility Reporting is “yes”. The default is “Mobile and Non-Mobile Grants”.

Allows to specify a subset of data that should appear on the report before calculation process has been initiated. By default, up to three levels of filtering criteria can be specified. Following fixed filtering criteria is available: Grant ID, Optionee ID, Plan Name, Award Type, Award Sub Type, Grant Date, Expiration Date, Acquisition Date, Retirement-Eligibility Date, MPA Condition, Grant Settlement Type, Accounting Classification, Employee Accounting Status, Mobility ATB, 83b Election, and Vest Name.

Additional Filtering Criteria is available by uploading User Defined filtering criteria through the Uploaded Data page.

Up to three filtering values can be specified for each filtering criteria. A filtering value can be added by clicking 'Add' to the right of the filtering criteria value input box or drop-down list.

The 'Filter to Exclude' check box permits to exclude the information specified in the Advanced Filtering Criteria.

10. Report Selection (for Legacy reports): Select the level of report desired. Generates expense reports at a group level, a grant level or a tranche level. Reports are generated for Non-MPA and MPA grant types as well as mobile and/or non-mobile grants.

Mobility reporting results in Non-MPA and MPA grants being presented together on the tranche-level detail report along with specific mobility data.

The universal format selection for non-mobility reporting also allows Non-MPA and MPA grants to be presented together on the new tranche-level detail report. Otherwise Non-MPA and MPA grants are presented on separate tranche-level detail reports with the legacy format.

One or more reports may be created by clicking in the check boxes located to the left of the report names. Tranche Level–Detail and Tranche Level–Summary are mutually exclusive (both cannot be selected at same time).

If MPA Awards are present in the dataset, the Tranche-Level Summary and Tranche- Level Detail reports will be generated for MPA and non-MPA Awards. The Group Summary and the Grant Summary will have both MPA and non-MPA awards in the same report.

a. The user is able to select reports in either Excel or CSV. Both formats cannot be selected at one time.

Advanced Report Settings area has been added to the Expense Reports pages of the application. In addition to providing users advanced controls over the format and layout of the financial reports, the Advanced Report Settings serves as the staging area for generating, viewing, and closing results for clients utilizing Close-the-Books reporting. With the exception of Out-of-Period Transactions report and new columns added specifically for Close-the-Books functionality, all Advanced Reports are based on the legacy reports.

a. The user is able to select Report Formats of PDF, CSV, XLS and XLSX across the various reports. Certain selections are not available for certain reports. These have been disabled.

a. The user selects any grouping criteria by which they would like to have their report grouped. The user has the ability to select up to five levels of grouping.