The formulas below were used to estimate your option costs and tax withholding.
The formulas are categorized by type of exercise:
For an Exercise and Hold, the following formulas apply:
Total Option Costs
(Grant Price x Quantity) = Total Option Costs
Taxable Income
(Fair Market Value at Exercise - Grant Price) x Quantity = Taxable Income
For an Exercise and Sell, the following formulas apply:
Total Option Costs
(Grant Price x Quantity) = Total Option Costs
Total Tax Withholding
(Fair Market Value at Exercise - Grant Price) x (total tax withholding rates and limits as provided by your company) = Total Tax Withholding
Estimated Commission
Your commission is based on the total of your account balances and your volume of annual trading.
For an Exercise and Net Shares, the following formulas apply:
Shares Netted for Exercise Fee
Exercise Fee / Fair Market Value at Exercise = Shares Netted for Exercise Fee
Total Option Costs
(Grant Price x Quantity) = Total Option Costs
Shares Netted for Option Costs
Total Option Costs / Fair Market Value at Exercise = Shares Netted for Option Costs
Total Shares Netted for Tax Withholding
Total Tax Withholding / Fair Market Value at Exercise = Total Shares Netted for Tax Withholding
Shares Netted for Exercise Fee
Exercise Fee / Fair Market Value at Exercise = Shares Netted for Exercise Fee
For an Exercise and Sell-to-Cover, the following formulas apply:
Total Option Costs
(Grant Price x Quantity) = Total Option Costs
Total shares to be sold for option costs
Total Option Costs / Fair Market Value at Exercise = Total shares to be sold for option costs
Note: To cover all of these costs through the sale of shares, a whole number of shares must be sold. In the event that the proceeds from the sale exceed the total option costs, the balance of the proceeds will be deposited into your Stock Plan Account as cash.
Total Tax Withholding
(Fair Market Value at Exercise - Grant Price) x (total tax withholding rates and limits as provided by your company) = Total Tax Withholding
Total shares to be sold for Tax Withholding
(Total Tax Withholding / Fair Market Value at Exercise) = Total shares to be sold for Tax Withholding
Note: To cover all of the Tax Withholding through the sale of shares, a whole number of shares must be sold. In the event that the proceeds from the sale exceed the total option costs, the balance of the proceeds will be deposited into your Stock Plan Account as cash.
Estimated Commission and fees
Your commission is based on the total of your account balances and your volume of annual trading.
Total shares to be sold for commission and fees
Estimated Commission and Fees / Fair Market Value at Exercise = Total shares to be sold for commission and fees
Note: To cover all of the commission and fees through the sale of shares, a whole number of shares must be sold. In the event that the proceeds from the sale exceed the total option costs, the balance of the proceeds will be deposited into your Stock Plan Account as cash.