Classmates.com 2011 Annual Report Download - page 139

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. STOCKHOLDERS' EQUITY (Continued)
Common Stock Repurchases
United Online, Inc.'s Board of Directors authorized a common stock repurchase program (the "Program") that allows United Online, Inc. to
repurchase shares of its common stock through open market or privately negotiated transactions based on prevailing market conditions and other
factors. From August 2001 through December 31, 2010, United Online, Inc. had repurchased $150.2 million of its common stock under the
Program, leaving $49.8 million of authorization remaining under the Program. In February 2011, the Board of Directors extended the Program
through December 31, 2011 and increased the amount authorized to $80.0 million. In December 2011, the Board of Directors extended the
Program through December 31, 2012. There were no repurchases under the Program in the year ended December 31, 2011 and, at December 31,
2011, the authorization remaining under the Program was $80.0 million.
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, 2011, 2010 and 2009 were $7.7 million, $9.6 million and $6.8 million, respectively, for which the Company withheld 1.2 million,
1.6 million and 1.1 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, 2011, 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, 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, April, July, and October 2011, the Board of Directors declared quarterly cash dividends of $0.10 per share of common stock.
The dividends were paid on February 28, May 31, August 31, and November 30, 2011 and totaled $9.4 million, $9.3 million, $9.3 million, and
$9.3 million, respectively, including dividend equivalents paid on nonvested restricted stock units.
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