Avid 2006 Annual Report Download - page 91

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81
Options assumed through the acquisitions of Sibelius in 2006 and M-Audio in 2004 had exercise prices below
the Company’s average market price on the date of acquisition. The weighted-average fair value of the Sibelius
assumed options was $27.65 which was determined using the Black-Scholes option pricing model assuming an
expected volatility of 34.3%, a risk-free interest rate of 5.01% and an expected life of 2.55 years for the remaining
vesting.
The aggregate intrinsic value of stock options exercised during the years ended December 31, 2006, 2005 and 2004
was approximately $10.2 million, $37.0 million and $62.8 million, respectively. Cash received from the exercise of
stock options for the year ended December 31, 2006 was $6.8 million. The Company did not realize any actual tax
benefit from the tax deductions for stock option exercises during the year ended December 31, 2006, due to the
full valuation allowance on the Company’s U.S. deferred tax assets.
The following table summarizes the status of the Company’s non-vested restricted stock units as of December 31,
2005 and changes during the year ended December 31, 2006:
Non-Vested Restricted Stock Units
Shares
Weighted-
Average
Grant-Date
Fair Value
Weighted-
Average
Remaining
Recognition
Period
Aggregate
Intrinsic
Value
(in thousands)
Non-vested at December 31, 2005 — —
Granted 207,757 $47.01
Vested (3,738) $47.01
Forfeited (22,400) $47.01
Non-vested at December 31, 2006 181,619 $47.01 1.69 $6,767
The following table summarizes the changes in the Company’s non-vested restricted stock for the years ended
December 31, 2006, 2005 and 2004:
Non-Vested Restricted Stock
Shares
Weighted-
Average
Grant-Date
Fair Value
Weighted-
Average
Remaining
Recognition
Period
Aggregate
Intrinsic
Value
(in thousands)
Non-vested at December 31, 2003 — —
Granted 20,000 $56.72
Vested — —
Forfeited — —
Non-vested at December 31, 2004 20,000 $56.72
Granted — —
Vested 5,000 $56.72
Forfeited — —
Non-vested at December 31, 2005 15,000 $56.72
Granted 8,618 $47.01
Vested (9,000) $56.72
Forfeited (4,000) $56.72
Non-vested at December 31, 2006 10,618 $48.84 1.62 $396
As of December 31, 2006, there was $21.8 million of total unrecognized compensation cost, before forfeitures,
related to non-vested stock-based compensation awards granted under the Company’s stock-based compensation
plans. This cost will be recognized over the next four years. The Company expects this amount to be amortized as
follows: $12.0 million in 2007, $5.9 million in 2008, $3.0 million in 2009 and $0.9 million thereafter. The weighted-
average recognition period of the total unrecognized compensation cost is 1.22 years.