Classmates.com 2010 Annual Report Download - page 134

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. STOCKHOLDERS' EQUITY (Continued)
Shares withheld upon the vesting of restricted stock units and upon the issuance of stock awards to pay applicable required employee
withholding taxes are considered common stock repurchases, but are not counted as purchases against the Program. Upon vesting of restricted
stock units or issuance of stock awards, the Company currently does not collect the applicable required employee withholding taxes from
employees. Instead, the Company automatically withholds, from the restricted stock units that vest, and from the stock awards that are issued,
the portion of those shares with a fair market value equal to the amount of the required 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 amounts remitted in the years ended
December 31, 2010, 2009 and 2008 were $9.6 million, $6.8 million and $8.8 million, respectively, for which the Company withheld 1.6 million,
1.1 million and 0.8 million shares of common stock, respectively, that were underlying the restricted stock units which vested and stock awards
that were issued. For information regarding the common stock repurchases consummated during the year ended December 31, 2010, see "Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities," which appears elsewhere in
this Annual Report on Form 10-K.
Dividends
Dividends are paid on shares of common stock outstanding as of the record date. In addition, dividend equivalents are generally paid on
nonvested restricted stock units as of the record date.
In January, April and July 2008, United Online, Inc.'s Board of Directors declared quarterly cash dividends of $0.20 per share of common
stock. The dividends were paid on February 29, 2008, May 30, 2008, and August 29, 2008 and totaled $14.6 million, $14.9 million, and
$14.9 million, respectively, including dividend equivalents paid on nonvested restricted stock units. Following the closing of the FTD
acquisition, the Board of Directors decreased the cash dividend from $0.20 per share of common stock to $0.10 per share of common stock. In
October 2008, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock. The dividend was paid on
November 28, 2008 and totaled $8.7 million.
In January, April, July, and October 2009, the Board of Directors declared quarterly cash dividends of $0.10 per share of common stock.
The dividends were paid on February 27, 2009, May 29, 2009, August 31, 2009, and November 30, 2009 and totaled $8.8 million, $9.1 million,
$9.2 million, and $9.1 million, respectively, including dividend equivalents paid on nonvested restricted stock units.
In February, April, July, and October 2010, the Board of Directors declared quarterly cash dividends of $0.10 per share of common stock.
The dividends were paid on February 26, 2010, May 28, 2010, August 31, 2010, and November 30, 2010 and totaled $9.1 million, $9.4 million,
$9.3 million, and $9.2 million, respectively, including dividend equivalents paid on nonvested restricted stock units.
In January 2011, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock. The record date was
February 14, 2011 and the dividend will be paid on February 28, 2011.
The payment of future dividends is discretionary and is subject to determination by United Online, Inc.'s Board of Directors each quarter
following its review of the Company's financial performance and other factors. 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.
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