treatment of cash for stock repurchase to offset dilution from stock option

CFA Level II
#1

How do you treat the CF for stock repurchase to offset dilution of the exercise of stock option?

#2

US GAAP states it should be a CF from financing but for analytical purposes it should be looked at as a Operating CF.

#3

I’d add that this is done because it’s tantermount to just paying your staff more, - wages of course come out of Operating CF

#4

thanks !