Classmates.com 2007 Annual Report Download - page 111

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. STOCKHOLDERS' EQUITY (Continued)
Upon vesting, the Company currently does not collect the applicable employee withholding taxes for restricted stock units from employees.
Instead, the Company automatically withholds, from the restricted stock units that vest, the portion of those shares with a fair market value equal
to the amount of the employee withholding taxes due, which is accounted for as a repurchase of common stock. The Company then pays the
applicable withholding taxes in cash. The first restricted stock unit vest occurred in February 2006. In the years ended December 31, 2007 and
2006, approximately 390,000 and 215,000 shares, respectively, were withheld from restricted stock units that vested in order to pay the
applicable employee withholding taxes.
Dividends
Dividends are paid on common shares and unvested restricted stock units outstanding as of the record date.
In May 2005, the Company's Board of Directors declared a quarterly cash dividend of $0.20 per share of common stock, which was paid on
May 31, 2005. Cash dividends of $0.20 per share of common stock have been declared and paid each quarter since that date. Total dividends
paid amounted to $57.1 million, $53.5 million and $38.1 million for the years ended December 31, 2007, 2006 and 2005, respectively.
In January 2008, the Company's Board of Directors declared a quarterly cash dividend of $0.20 per share of common stock. The record date
for the dividend was February 14, 2008 and is payable on February 29, 2008.
The payment of future dividends is discretionary and is subject to determination by the Company's Board of Directors each quarter
following its review of the Company's financial performance. Dividends are declared and paid out of the Company's surplus, as defined and
computed in accordance with the General Corporation Law of the State of Delaware.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) was as follows (in thousands):
F-29
Unrealized
gain (loss) on
short-term
investments,
net of tax
Unrealized
gain (loss) on
derivative,
net of tax
Foreign
currency
translation
Accumulated
Other
Comprehensive
Income (Loss)
Balance at January 1, 2005
$
(18
)
$
—
$
9
$
(9
)
Current period change
(282
)
83
(119
)
(318
)
Balance at December 31, 2005
(300
)
83
(110
)
(327
)
Current period change
172
(83
)
(7
)
82
Balance at December 31, 2006
(128
)
—
(
117
)
(245
)
Current period change
285
—
142
427
Balance at December 31, 2007
$
157
$
—
$
25
$
182