Entering Exercise Information

Vested Exercisable

Displays the number of vested shares remaining that are exercisable as of the exercise date entered.

Unvested Exercisable

If the plan allows exercise before vesting, the system displays the number of unvested shares remaining that are exercisable as of the exercise date entered.

Exercise Status

Select the exercise status. Valid values are Pending, Void, and Active, which is the default.

Status Date

Displays the date that the status was last changed and saved.

Exercise Date

Enter the exercise date.

Replace Exercise Number

If this is a replacement exercise, select a replacement exercise number from the available choices. You must first void the original exercise before you can create a new, replacement exercise. You associate the two exercises with the Replace Exercise Number for audit purposes.

Shares Exercised

Enter the number of shares to be exercised. If exercise before vesting is allowed all vested shares must be exercised before unvested shares are exercised. The system will not allow shares exercised to include both vested and unvested amounts.

Exercise FMV

The default value is the exercise FMV calculated from the Daily Prices table as of the exercise date that you entered according to your Exercise FMV Rule. You can change this number.

Exercise Method

Select a method to pay for the exercise cost. If you select a value not defined on the Stock Option Plan Rules component, you get an error. Cash is the default.

Trade For Taxes

Select to enable shares to be traded for the amount of taxes to be withheld on the Exercises - Cost page. The check box is unavailable if:

• The Trade For Taxes check box is not selected on the Payment/Income Method page.

• The ISO or ISO/SAR is selected as an option type on the Maintain Grants - General page except when a terminated employee exercises the ISO after the regulatory period for preferential tax treatment.

• The Exercise Method field equals SAR or Same Day Sale.

When exercising unvested shares and 83b Election is not selected.

Shares Sold

If the exercise method is Sell to Cover, this field is available. Enter the number of shares sold. If the exercise method is Same Day Sale, the system displays the total shares exercised as shares sold.

Sale Price

If the exercise method is Same Day Sale or Sell to Cover, this field is available. The exercise FMV is the default, but you can enter a different number.

83b Election Date

If you select the 83b Election check box, this field becomes available. Enter the date that the optionee filed the 83b election.

Receipt Date

Displays the date that the exercise receipt was run.

Exercise Number

Displays NEW when you enter an exercise. When you save, the system generates a sequential exercise number from the last exercise number stored on the Stock table.

Restricted Exercise

If this is a restricted exercise, this check box is selected.

Tax Type

Select the type of tax to calculate.

Default Percentage

The system enters the default tax percentage based on the tax type. You can change the default percentage to modify the current tax amount.

Tax YTD

Enter the year to date tax amounts to have the system to use these values when calculating taxes with limits.

Current Tax

The system calculates the current tax based on the ordinary income amount displayed on the page and the default percentage. You can change the current tax amount and the default percentage changes accordingly.

Tax Override

If you overrode the default taxes or inserted the tax amounts the system displays Manual. The default is None, which means no tax override.

Maximum Tax

Displays the maximum tax limit if the tax type has a maximum tax limit.

Load Default Taxes

Click to load the default tax rates based upon the country and state associated with the optionee's tax location and the tax rates that you entered on the tax setup pages. The taxes are calculated based upon the ordinary income from the exercise.

Copy Previous Taxes

Click to copy the tax percentages used in the last exercise within the last calendar year. If there are no exercises for the current year, the system copies the percentages from the previous year and gives a warning message.

Calculate Taxes

Click to have Payroll for North America calculate the taxes due on the ordinary income from the exercise. The system determines the YTD taxes paid and monitors any limit that might be met.

Update Payroll

Click to send the tax and ordinary income data to payroll. Once the transaction is saved, you receive confirmation that the transaction was sent. If you don't save the exercise, Payroll is not updated.

Sent to Payroll Date

Displays the date the payroll taxes were sent to payroll either through Update Payroll or when the payroll report is run. Click the date to access the Exercise Payroll Data page to display how the transaction was sent to the payee (through Payroll for North America or a manual report) and the paycheck number, if applicable.

Reversal Date

Displays the date, if any, that the Payroll Reversal Report was run.

Tax Preference Income

Displays the alternative minimum tax value, if any, when the option type is ISO. Otherwise, it is ordinary income, which is the difference between the option price and the fair market value of the company's stock on the exercise date.

Total Taxes

Displays the sum of all taxes displayed. These are the taxes that are due on exercise.

Net Due Optionee

If this is a SAR exercise, the system displays the net due to the optionee. This amount is the difference between the ordinary income and the total taxes.

Swap/Trade FMV

The swap trade FMV as defined on the Stock Option Plan Rules - FMV Rules page.

Swapped

The number of shares required for the swap by dividing the total cost of shares by the swap/trade FMV. You can change the number, if necessary.

Traded

If the tax payment method is Trade and taxes were calculated, the system displays the number of shares required for the trade by dividing the Total Tax Due field by the Swap/Trade FMV field. You can change the number, if necessary.

Swap/Trade Total

The total number of shares required for the swap or trade.

Source

Select Constructive Delivery if the shares surrendered for the swap/trade are to be netted from the exercise and a physical certificate is not delivered. Select Physical Delivery if a physical certificate is surrendered for cancellation.

Number of Shares

Enter the number of shares that were surrendered. Constructive delivery will reduce the number of shares to be issued by the number of shares that were swapped and/or traded.

Certificate Number

Enter the certificate number of the shares that were surrendered for the swap or trade, if any.

Date Acquired

Enter the date that the swapped or traded shares were acquired.

Cost of Shares

Option price multiplied by number of shares exercised.

Total Tax Due

Total taxes due calculated on the Administer Exercises - Exercise Taxes page.

Total Cost

Cost of shares plus total taxes due.

Swap Value

Number of shares swapped multiplied by the swap/trade FMV. Displayed if the exercise method is swap.

Trade Value

Number of shares traded multiplied by the swap/trade FMV. Displayed if Trade for Taxes is selected.

Due to Company

Total Cost minus the Swap Value, or the Trade Value , if any.

Constructive

The total number of constructively swapped/traded shares.

Physical

The total number of physically swapped/traded shares.

Shares Issued

The number of shares exercised less the total number of constructive shares swapped or traded.

Shares Returned

The total number of shares that were returned from the swap when a certificate is physically delivered for more shares than required for the swap or trade.

Transfer Control Number

Displays the transfer control number assigned by the Issuance Instructions report.

Escrow Control Number

Displays the control number assigned by the Issuance Instructions report.

Transfer Issue Date

Displays the date that the Issuance Instructions report was run. This field is populated after you run the Agent Issuance Instructions report.

Issuance Number

Displays 1 when you first add an exercise. For each subsequent issuance that you create, the system generates a sequential number.

Issuance Type

If the exercised shares are unvested, Escrow is the default. If the exercise is a same day sale or sell to cover, Broker is the default. If the exercise is any other type, the information on the optionee's Maintain Issuance Instructions page defaults. If issuance instructions are not set up for an optionee, Certificate is the default. You can change the default value.

Shares Issued

Enter the number of shares equal to the total number of shares being issued less any swapped or traded shares. The number of shares exercised defaults.

Broker, Escrow, Certificate, and Legend

Click to access the Broker page, Escrow Information page, or Certificate page, respectively.

Legend

Click to access the Legend page.

Due to Company

Displays the amount due to the company as calculated on the Administer Exercises - Cost page.

Total Payments

Displays the sum of payment amounts.

Remaining Due

This field is calculated by subtracting the Total Payments field from the Due to Company field.