DETROIT, Aug 6, 2002 /PRNewswire-FirstCall via COMTEX/ -- Comerica Incorporated
(NYSE: CMA) today reported that it will adopt the fair value method of
accounting for stock options in the third quarter. Comerica estimates that
adoption of the fair value method will reduce full year 2002 net income and
diluted earnings per share by $11 million (after tax) and $0.06, respectively.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO )
"We are adopting the expense recognition provision of SFAS 123 because we
believe it clarifies accounting for compensation expenses," said Ralph W. Babb
Jr., president and chief executive officer.
The following provides additional information on Comerica's estimate of
full-year 2002 financial impact.
Options granted in 2002 3.2 million
Estimated fair value per option $14.61 - $18.07
Expense to be recognized over vesting period $54 million
Weighted average straight-line amortization period 3.3 years
Estimated 2002 expense (pre-tax) $17 million
When fully transitioned in 2006, the estimated diluted earnings per share impact
will be approximately $0.20, assuming the grants in future years will have a
similar size and value.
SFAS 123 permits companies to recognize compensation cost associated with stock
options in income, or alternatively, to disclose the pro forma impact in a
footnote to the audited financial statements. In accordance with SFAS 123, the
impact of options granted prior to January 1, 2002, will continue to be
disclosed in financial statement footnotes until the last of those options vest
in 2005. Comerica estimates option values with a commonly used valuation model.
Outlook for 2002
Including the $0.06 per diluted share incremental charge for stock option
expense, Comerica expects earnings to range from $4.64 to $4.79 per diluted
share for the full year 2002.
Comerica Incorporated is a multi-state financial services provider headquartered
in Detroit, with bank subsidiaries in Michigan, California, and Texas, banking
operations in Florida, and businesses in several other states. Comerica has an
investment services affiliate, Munder Capital Management, commercial banking
operations in Canada and a commercial banking subsidiary in Mexico.
Forward Looking Statement
This press release contains certain forward-looking statements that are based on
estimates and information currently known to Comerica's management. Such
statements reflect Comerica's beliefs and assumptions as of the date of this
release and are subject to risks and uncertainties, such as changes in
Comerica's stock price and volatility, stock plans, changes in accounting rules,
performance and compensation practices, and do not purport to speak as of any
other date. Should one or more assumptions prove incorrect, the Company's actual
results could differ materially from those discussed in this release.
Forward-looking statements speak only as of the date they are made. Comerica
does not undertake to update forward-looking statements to reflect circumstances
or events, nor of changes in beliefs or assumptions, that occur after the date
the forward-looking statements are made. For further information, please read
Comerica's reports filed with the SEC and available at www.sec.gov .
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SOURCE Comerica Incorporated
CONTACT: Media Contacts: Sharon R. McMurray, +1-313-222-4881,
Wayne J. Mielke, +1-313-222-4732, or
Investor Contacts: Judith S. Love, +1-313-222-2840,
Judith M. Chavis, +1-313-222-6317,
all of Comerica Incorporated
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URL: http://www.comerica.com
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