Classmates.com 2007 Annual Report Download - page 114

Download and view the complete annual report

Please find page 114 of the 2007 Classmates.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. STOCK-BASED COMPENSATION PLANS (Continued)
The following table summarizes activity during the years ended December 31, 2005, 2006 and 2007:
Total unrecognized compensation cost related to unvested stock options at December 31, 2007, prior to the consideration of expected
forfeitures, was approximately $0.9 million and was expected to be recognized over a weighted-average period of 0.7 years.
The weighted-average grant date fair value of stock options granted during the years ended December 31, 2007, 2006 and 2005 was $0,
$4.51 and $7.08, respectively. The total intrinsic value of options exercised during the years ended December 31, 2007, 2006 and 2005 was
$7.4 million, $17.3 million and $20.9 million, respectively. Cash received from the exercise of stock options was $8.6 million, $9.5 million and
$5.9 million, respectively, for the years ended December 31, 2007, 2006 and 2005. The tax benefits realized from stock options exercised in the
years ended December 31, 2007, 2006 and 2005 were approximately $2.8 million, $3.9 million and $6.8 million, respectively.
Modifications
Acceleration of Stock Options— In December 2005, the Company's Compensation Committee of the Board of Directors approved the
acceleration of vesting of all options to purchase the Company's common stock with exercise prices in excess of $16.00. These options were
granted to executive officers and other employees of the Company under the Company's 2001 Stock Incentive Plan and 2001 Supplemental
Stock Incentive Plan. Options to purchase 1.3 million shares of the Company's common stock were subject to this acceleration and such options
had exercise prices ranging from $16.01 to $64.17, and had a weighted-average exercise price of $18.47.
The acceleration of vesting of these out-of-the-money options was undertaken primarily to eliminate any future compensation expense the
Company would otherwise recognize in its consolidated statements of operations with respect to these options with the implementation of SFAS
No. 123R
F-32
Options
Outstanding
Weighted
-
Average
Exercise
Price
Weighted
-
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value
(in thousands)
(in years)
(in thousands)
Outstanding at January 1, 2005
13,230
$
12.50
Granted
2,541
$
11.20
Exercised
(2,374
)
$
2.47
Canceled
(1,769
)
$
18.71
Outstanding at December 31, 2005
11,628
$
13.31
Granted
210
$
13.18
Exercised
(2,163
)
$
4.37
Canceled
(2,566
)
$
23.46
Outstanding at December 31, 2006
7,109
$
12.37
Granted
—
$
—
Exercised
(1,068
)
$
8.06
Canceled
(778
)
$
15.12
Outstanding at December 31, 2007
5,263
$
12.83
5.3
$
13,045
Exercisable at December 31, 2007
4,824
$
12.95
5.1
$
12,673
Expected to vest at December 31, 2007
471
$
11.54
7.4
$
336