SEATTLE, Aug 2, 2002 (BUSINESS WIRE) -- Plum Creek Timber Company, Inc.(NYSE:PCL) today announced it will expense the cost of employee stock optionsfor all option grants made as of the beginning of the year 2002.
This accounting policy change, which is applied retroactively to the beginningof the year, will have no impact on previously reported operating income or netincome for the first and second quarters of 2002.
"The majority of our compensation is already expensed and we believeimplementing this preferred accounting method for our stock options isappropriate because it results in all forms of employee compensation beingcharged to the income statement," said Rick Holley, President and ChiefExecutive Officer.
The company has elected to account for stock-based compensation in accordancewith Statement of Financial Accounting Standard ("SFAS") No. 123, "Accountingfor Stock-Based Compensation." In accordance with SFAS No. 123, the grant datefair value of employee stock options will be amortized to compensation expenseover the vesting period of options. Under Accounting Principles Board OpinionNo. 25, the previous method of accounting, no compensation expense wasrecognized for employee stock options.
The company also announced that Rick Holley, President and CEO, and WilliamBrown, Executive Vice President and Chief Financial Officer, will provide thecertifications required under the Sarbanes-Oxley Act of 2002 in the company'sreport on Form 10-Q for the second quarter 2002. "Integrity and reputation as acompany is important to us," said Rick Holley, "and we are very comfortablecertifying our filings because of the quality of our financial statements andour internal reporting procedures."
The company plans on filing its second quarter Form 10-Q with the Securities andExchange Commission next week.
Plum Creek, a real estate investment trust, is one of the largest land owners inthe nation, with over 7.8 million acres of timberlands in every region of theUnited States and ten wood product manufacturing facilities in the Northwest.
More information on Plum Creek Timber Co. may be accessed at:http://www.businesswire.com/cnn/pcl.shtml.
John Hobbs, 800/858-5347
Copyright (C) 2002 Business Wire. All rights reserved.