Classmates.com 2007 Annual Report Download - page 116

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. STOCK-BASED COMPENSATION PLANS (Continued)
The following table summarizes activity for restricted stock units during the years ended December 31, 2005, 2006 and 2007:
At December 31, 2007, the intrinsic value of outstanding restricted stock and restricted stock units was approximately $63.0 million. The
fair value of restricted stock units that vested during the year ended December 31, 2007 was approximately $15.5 million. Total unrecognized
compensation cost related to unvested restricted stock and restricted stock units at December 31, 2007 prior to the consideration of expected
forfeitures was approximately $52.6 million and was expected to be recognized over a weighted-average period of 1.5 years.
At December 31, 2006, the intrinsic value of outstanding restricted stock and restricted stock units was approximately $44.0 million. The
fair value of restricted stock units that vested during the year ended December 31, 2006 was approximately $7.6 million.
Classmates Media Corporation Equity Awards
In connection with the Company's Classmates Media Corporation ("CMC") subsidiary initial public offering ("IPO") process, employment
agreements were signed with certain employees. In connection with these agreements, these individuals were guaranteed an aggregate
$13.0 million of value in restricted stock units in CMC upon effectiveness of the IPO. If the IPO is not effective by April 30, 2008, per these
agreements, these equity awards will be converted into restricted stock units in the Company based on prices set forth in the employment
agreements. Stock-based compensation associated with these equity awards has been recorded in the Company's consolidated financial
statements from the execution dates of these agreements.
Recent Awards
Effective February 15, 2008, the Compensation Committee of the Board of Directors approved grants of 0.3 million restricted stock units
with a fair value equal to $3.9 million to certain members of the Company's senior management. Each restricted stock unit entitles the recipient
to receive one share
F-34
Restricted
Stock Units
Outstanding
Weighted
-
Average Grant
Date Fair Value
(in thousands)
Outstanding at January 1, 2005
—
$
—
Granted
1,674
$
10.77
Vested
—
$
—
Canceled
(32
)
$
10.55
Outstanding at December 31, 2005
1,642
$
10.78
Granted
2,208
$
10.36
Vested
(629
)
$
8.74
Canceled
(381
)
$
9.46
Outstanding at December 31, 2006
2,840
$
11.08
Granted
3,922
$
13.94
Vested
(1,077
)
$
10.52
Canceled
(707
)
$
12.51
Outstanding at December 31, 2007
4,978
$
12.65