In: Accounting
Microsoft provides compensation to executives in the form of a
variety of incentive compensation plans, including restricted stock
award grants. The following is an excerpt from a disclosure note
from Microsoft's 2017 annual report:
Note 20 Employee Stock and Savings Plans (in
part)
Stock awards are grants that entitle the holder to shares of common
stock as the award vests. Our stock awards generally vest over a
five-year period. . . . During fiscal year 2017, the following
activity occurred under our plans:
Shares ($ in millions) |
Weighted Average Grant-Date Fair Value | |||||||||
Stock awards: | ||||||||||
Nonvested balance, beginning of year |
194 | $ | 36.92 | |||||||
Granted | 84 | 55.64 | ||||||||
Assumed in acquisitions | 23 | 59.09 | ||||||||
Vested | (80 | ) | 37.36 | |||||||
Forfeited | (20 | ) | 43.71 | |||||||
Nonvested balance, end of year | 201 | $ | 46.32 | |||||||
Required:
If all awards are granted, acquired, vested, and forfeited evenly
throughout the year, what is the compensation expense in fiscal
2017 pertaining to the previous and current stock awards? Assume
forfeited shares were granted evenly throughout the three previous
years. (Round your answer to 1 decimal place.)