The grant file should include all the grant-related information you wish to import to the system. Please make sure the following fields are properly filled in:

• Employee ID;
• Grant ID;
• Recognition Method (0=Graded Vesting, 1=SL, 2=Your company’s default recognition method as last updated in the company’s profile);
• Employee ESO Class (for example: Director, Management, etc.);
• The Department to which the employee belongs;
• ESO Plan. Available only in the Advanced and Distributor’s licenses, this feature allows you to filter the ESO data according to ESO plans;
• Grant Date is the date the options were granted;
• Start Date is the start date of the option vesting period;
• Expiration Date is the end date of the option vesting period;
• Prev_Grant will be used in the case of grant modification or repricing. Here you should type in the original grant number, so the system will be able to add this new information to its calculation.

The tranche demo should include all the information you need to know about the grants vesting dates and amounts, based on the grant report you prepared for importing to the system. Please make sure the following fields are properly filled in:

• Grant ID;
• Vesting Date of each grant. If 50% of the options vest every year in the course of two years, the grant will be presented in two separate lines, whereby each line represents one tranche.
• Vesting Amount is the amount that vests on each vesting date;
• Option FV is the option fair value on each vesting date.

TIP You may wish to save the demo files on your desktop, so that when you prepare your company’s ESO reports you’ll use them as your guiding template.

TIP We recommend that you save the grant and tranche data in two separate worksheets in the same Excel file.

In the Event Report you’ll be required to fill in the following fields:

• Employee ID;
• Grant ID;
• Event Date;
• Event Amount. We recommend that you fill in “0” in order if you wish the system will cancel all the grants’ unvested options.

TIP You may wish to save the demo files on your desktop, so that when you prepare your company’s ESO reports you’ll use them as your guiding template.

The Book Expense report includes the following fields:

• Grant ID;
• Report from is the start date of the reporting period in which the expense was recognized;
• Report to is the end date of the reporting period in which the expense was recognized;
• Book Expense is the amount recognized in the designated time period.

TIP You may wish to save the demo files on your desktop, so that when you prepare your company’s ESO reports you’ll use them as your guiding template.

AttribONE’s recognition window is the raison d’etre of the entire system. In this window you can easily view and edit your company’s grant and tranche reports, in a way that helps you keep track of the changes that take place in your company. By updating AttribONE’s recognition window, you can better manage your company’s expenses, thus minimizing undesirable expense “shocks.”

TIP If you have not yet imported your company’s grant & tranche reports to the system please refer to Import Grants & Tranches.

AttribONE’s recognition window is divided into an upper grid and a lower grid (see illustration below). The upper grid contains the company’s periodical expense data, whereas the lower grid contains its specified grants data.

Above the upper grid is the top row, featuring some basic information and underlying assumptions. The two grids are separated by a middle row, in which a summary of the company’s expenses is visible, as well as information regarding specific grants at your choice.

TIP We highly recommend that you familiarize yourself with all sections of AttribONE’s recognition window, in order for you to better take advantage of the system’s various functions.

The left-hand side of the top row, located above the upper grid, features several key elements that affect the contents of the recognition report:

• Effective date is the system’s effective recognition date. By manually changing the date, you can “travel in time” and compare past/future proper expenses with what your company has actually recognized.
• Forfeiture rate reflects the company’s annual default employee forfeiture rate. The default forfeiture rate can be changed in the recognition screen manually for analyze purpose.
• ESO plans. If you own AttribONE’s Professional or Distributor licenses, you’ll be able to filter the attribution window according to a particular ESO plan, or view all ESO plans at once. If you wish to learn how to do so, please refer to Filter Data According to ESO Plan.
  
  NOTETo complete the filtering action, please click Filter.
  
  
• The Reset button resets recently typed manual forfeitures as well as emulate the “refresh” action. Upon making any changes in the recognition window, click Reset to see these changes appear in the recognition window.
• The Save option is activated only upon making changes in the Manual Fft cell.
• The Export button in the upper row allows you to export the data presented in the upper and lower grids to separate CSV spreadsheets.
• When you click Graph you’ll be directed to the Periodical or Cumulative Expense Graphs, which compares the company’s recognized expenses with its projected expenses.
  
  

The upper grid presents the grant periodical data, namely, the grant expenses true to each reporting period.

Based on the effective date you have selected, the system will refer you to the specific reporting interval by coloring the relevant row in grey.

NOTE If you have chosen a quarterly (yearly) interval, the expenses presented in this report will be divided into quarters (years). For more information, please refer to Create New Company Profile or Edit Company Properties

NOTE If you are using the Advanced or Distributor license, please note that only pre-selected package grants appear in the upper and lower grids.

The data presented in the upper grid include:

• Row Number;
• From refers to the start date of the reporting interval;
• To refers to the end date of the reporting interval;
• Outstanding at start refers to the number of unvested options at the start of the reporting interval;
• Granted refers to the number of options granted during each reporting period;
• Forfeited refers to the number of options forfeited during each reporting period;
• Vested refers to the number of options that vested during each reporting period.
• Outstanding at end refers to the number of options that remain unvested at the end of the reporting period;
• Proper expense is the expense the system expects to recognize in each reporting period;
• Cumulative is the cumulative expense the system expects to recognize in each reporting period.
  
  NOTE Double-clicking on the blue-font Cumulative expense takes you to a new report – “Proper Expense Until X” (see illustration below). This report specifies all the expenses that were to be recognized as of the selected effective date. Different grants are marked with alternating colors.
  
  
  The “Proper Expense Until X” report includes the following fields:
  
  
  • Employee number;
  • Grant code;
  • Employee class ;
  • Employee department;
  • ESO plan (available in the Professional and Distributor licenses only);
  • Vesting dates;
  • Vesting schedule is the number of options that were contractually expected to vest on each vesting date;
  • Vest Assumed is the number of options assumed to be vested for recognition purposes
  • Option FV is the option fair value on each vesting date;
  • Expense from and Expense to mark the timeframe of the reporting period;
  • Expense is the amount that needs to be recognized in the selected reporting period;
  • Expense formula provides the calculation of the proposed expense;
  • State in this case will always be “actual.” This means that all of the expenses in this report relate to reporting period prior to the effective date for which the report was generated.
    
    NOTE The Expense formula calculates the proper expense for each reporting period by: dividing the number of days from the beginning of the tranche’s vesting to the date where it was fully vested by the number of days in the reporting period. The result is multiplied by the total expense scheduled for the specific tranche.
    
    
• Book Expense is the expense the company recognized in its books in a given reporting period, based on the information previously imported to the system. For more information please refer to Import Book Expense Data.
• Projected Book Expense is AttribONE’s prediction for the company’s future expenses. This prediction is based on the company properties previously defined by the user, as well as the reports imported to the system.
  
  NOTE Upon updating the company’s most recent Book Expense, AttribONE’s Projected Book Expense will be equal to the company’s proper expenses. In future quarters, AttribONE would use the same forfeiture rates assumptions, as well as updated data such as new grants or events, when calculating the Proper and Projected Book Expense. Options forfeiture and/ or change in forfeiture rate assumptions will also influence these results.
  
  NOTE Double-clicking the blue-font Projected Book Expense will take you to a new report – “Reporting Period from X to Y” (see illustration below). This report details the expenses that ought to be recognized in the particular reporting period.
  
  
  The Reporting Period from X to Y report includes the following fields:
  
  
  • Employee number;
  • Grant number;
  • Employee class;
  • Employee department;
  • Vesting plan (available in the Professional and Distributor licenses only);
  • Recognized till refers to the total recognized expenses up to the start date of the reporting period;
  • Required till refers to the total expenses that need to be recognized by the end of the reporting period;
  • Adjustment is the difference between the amount that has been recognized and the amount that has yet to be recognized.
    
    NOTE If you change the effective date to any day in the past, for which the expenses have already been recognized, you will find out that the number in the Committed cell turns positive. Otherwise, the number in this cell will be zero.
    
    
  • Total Valuation is the grant fair value;
  • Total Expense is the total expense expected to be recognized based on the company’s assumptions;
  • Granted till is the number of options granted as of the selected effective date;
  • Vested till is the number of options vested as of the selected date;
  • Forfeited till is the number of options forfeited as of the selected effective date;
  • Outstanding is the number of unvested options as of the selected effective date.
  
  
  
• Cumulative refers to the total cumulative expenses, including both the Book Expense column and the Projected Book Expense as of the selected reporting period.
  
  

TIP If you wish to recognize the expenses suggested by the system as the expenses actually recognized by your company in its’ books, click Commit in the Projected Book Expense report.

Between the upper grid and lower grid is a middle row that consists of several numerical and qualitative data (please see illustration below).

On the left-hand side of the middle row appears data, which refer to row selected in the lower grid (see illustration below). This data includes the Grant Code, its Recognition Method, its relevant Employee Class and Department, as well as its Vesting Plan.
The blank box is the Find box that will help you quickly find certain employee or grants ID’s, etc. All you need to do is type in an employee or grant ID and click Find. The lower grid will present the information you were searching for.

On the right-hand side of the middle row, the following data will appear:

• Total Expense refers to the company’s total cumulative past and future predicted expenses, as of the selected effective date;
• Recognized refers to the total expenses recognized by the company as of the effective date. This data can also be seen in the Book Expense column in the upper grid;
• Projected refers to the total expenses that are yet to be recognized by the company, as of the selected effective date. This figure can also be seen under the Projected Book Expense column in the upper grid.
• Quarterly Reporting refers to the company’s reporting interval (quarterly or yearly) as previously defined. For more information, please refer to Create New Company Profile or Edit Company Properties;

The lower grid is where your company’s grant data is organized.

NOTE If you are using the Advanced or Distributor license please remember that only grants that belong to your pre-selected package will appear in the upper and lower grid.

NOTE With the exception of the Manual Fft cell, data that appear in the lower grid may not be changed manually

The lower grid is divided into grey and white rows. The alternating colors represent different grants. Every row – regardless of its color – represents a different tranche.

The upper grid includes the following fields:

• Employee ID;
• Grant code;
• Vest (from) marks the start date of a vesting period;
• Vest (to) marks the end date of a vesting period;
• Scheduled vesting is the number of options scheduled to vest in each tranche;
• Scheduled vesting % refers to the options scheduled to vest as a percentage of the total grant amount;
• Fair value is the option’s fair value;
• Interval refers to the duration of the tranche as a fraction of years;
• Outstanding at start refers to the amount of unvested options in each tranche.
  
  NOTE The outstanding at start column referring to future tranches takes into account the company’s assumed employee forfeiture rate.
  
  
• Actual forfeiture refers to the amount of options actually cancelled in each tranche (due to an existing forfeiture event). If the options in a certain tranche have fully vested, the actual forfeiture will be zero.
• In the Manual forfeiture column you can manually type the amount of options you believe will be cancelled due to employee forfeiture;
• Effective forfeiture is the amount of options assumed to be forfeited by AttribONE calculator. This can either be an actual forfeit, a manual forfeit or a projected forfeit based on the forfeiture rate.
• Forfeiture rate reflects an employee’s expected forfeiture rate, as assumed by the company.
  
  NOTE For tranches that have already vested, the number of options appearing in the Vested and Scheduled Vesting cells will be equal. By contrast, for tranches that have not yet vested, the number of options appearing in the Vested cell will be smaller than that in the Scheduled vesting cell, since the former assumes certain annual forfeiture rates.
  
  
• Outstanding at end refers to the amount of unvested options at the end of the vesting period;
• The State field refers to the status of the proposed financial forecast, relative to the effective date you have selected. This field offers three plausible scenarios:
  
  
  • Actual would be the case if the effective date you have selected takes place after the tranche has vested;
  • Semi-Forecast would be the case if the system’s effective date is anywhere between the beginning and the end of the tranche’s vesting period. For example, if the effective date you have selected is 10/02/2008, the Semi-Forecast state will describe the vesting period taking place between 10/01/2008 and 12/31/2008.
    
    NOTE Data shown in a Semi-Forecast row is more accurate than data appearing in a tranche that has not yet vested. Since the vesting period for Semi-Forecast rows have already started, uncertainty about these options is reduced as the vesting date of the tranche is approaching.
    
    NOTE The closer the effective date is to the tranche’s vesting date, the closer the number of outstanding options will be to the number of options appearing in the Scheduled Vesting cell.
    
    
  • Forecast would be the case if the system’s effective date occurs prior to the tranche’s start date. Data in this row would thus refer to future predictions based on the company’s assumptions, rather than to actual past events.
  
  
• Graded Expense or SL Expense refers to the expense that needs to be recognized based on the company’s recognition method.