FIN 44: Unearned Compensation

A portion of the intrinsic value (if any) of the unvested replacement awards is allocated to unearned compensation under FIN 44. The amount allocated to unearned compensation is based on the portion of the intrinsic value at the acquisition date related to the future vesting (service) period. Unearned compensation is recorded as an asset on the balance sheet and amortized as compensation expense over the remaining future vesting (service) period for accounting purposes.