CompUSA 2008 Annual Report Download - page 86

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51
The following table reflects the activity for all unvested stock options during 2008:
Shares
Weighted
Average Grant-
Date Fair Value
Unvested at January 1, 2008 1,097,798 $ 9.99
Granted 110,000 $7.94
Vested (429,518) $6.94
Forfeited (136,500) $12.34
Unvested at December 31, 2008 641,780 $11.18
At December 31, 2008, there was approximately $2,810,000 of unrecognized compensation costs related to unvested stock
options, which is expected to be recognized over a weighted average period of 1.21 years. The total fair value of stock
options vested during 2008, 2007 and 2006 was $2,981,000, $671,000 and $1,502,000, respectively.
Restricted Stock and Restricted Stock Units
In October 2004, the Company granted 1,000,000 restricted stock units under the 1999 Plan to a key employee who is also
a Company director. A restricted stock unit represents the right to receive a share of the Company’ s common stock. The
restricted stock units have none of the rights as other shares of common stock until common stock is distributed, other than
rights to cash dividends. The restricted stock unit award was a non-performance award which vests at the rate of 20% on
May 31, 2005 and 10% per year on April 1, 2006 and each year thereafter. The share-based expense for restricted stock
awards was determined based on the market price of the Company’ s stock at the date of the award. Compensation expense
related to the restricted stock award was approximately $574,000 in each of 2008, 2007 and 2006. Share-based
compensation expense for restricted stock issued to Directors was $75,000 in each of 2008, 2007 and 2006.
Share repurchase plan
In May 2008, the Company’ s Board of Directors authorized the repurchase of up to 2,000,000 shares of the Company’ s
common stock. During 2008 the Company repurchased 475,301 common shares at a cost of approximately $5.8 million, an
average of $12.25 per share. Theses shares are included in Common stock in treasury at cost in the Company’ s
consolidated balance sheet.
8. INCOME TAXES
The components of income before income taxes are as follows (in thousands):
Year Ended December 31,
2008 2007 2006
United States $61,220 $81,832 $53,587
Foreign 22,523 18,191 16,108
Total $83,743 $ 100,023 $69,695
The provision for income taxes consists of the following (in thousands):
Year Ended December 31,
2008 2007 2006
Current:
Federal $15,753 $26,174 $15,437
State 4,106 4,842 3,179
Foreign 4,844 5,632 3,678
Total current 24,703 36,648 22,294
Deferred:
Federal 2,242 (1,004) 1,235
State 154 277 511
Foreign 3,801 (5,379) 508
Total deferred 6,197 (6,106) 2,254
TOTAL $30,900 $30,542 $24,548
Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations.