How does stock based comp hit CF/BS?

by elan (Gorilla, 505 Points) on 3/6/10 at 10:53pm

How does "Stock Based Compensation" in the CF statement hit the Balance Sheet?

Its an inflow in CF from operations... so Im assuming Stock Based
Comp is expensed on the Income Statement and is an add-back in CF from
Ops to account for the fact that its a non-cash item... but how does
this hit the Balance Sheet, if at all?

I'm assuming it should be added to stockholder equity... is that
right? and is it hitting anything else? If the footnotes dont specify,
there's no way of knowing if its options or actually stock...?

Another issue is that on the BS Common Stock is decreasing by about
15 million.... on the CF statement I see CFs from financing shows 3
million Proceeds from Common Issuance, and 20 million used to Purchased
Common Stock.... so net is a 17 million decrease... wtf is going on
here?

orginal article here