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Table of Contents
EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Options Outstanding
The following table summarizes stock option activity as of and for the year ended December 31, 2015 :
Stock Options
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
(shares and dollars in thousands)
Outstanding as of December 31, 2014 2,475
$ 7.26
Granted —
—
Exercised (752)
6.64
Forfeited and expired (815)
8.65
Outstanding as of December 31, 2015 908
6.52
6.1
$ 1,093
Vested and expected to vest as of December 31, 2015 819
6.59
5.9
$ 958
Exercisable as of December 31, 2015 314
7.64
3.7
$ 196
The aggregate intrinsic value amounts in the table above represent the closing price of the Company’s common stock on December 31, 2015 in excess of the
exercise price, multiplied by the number of stock options outstanding, exercisable or vested and expected to vest, when the closing price is greater than the exercise
price. This represents the amount that would have been received by the stock option holders if they had all exercised their stock options on December 31, 2015 .
The total intrinsic value of options exercised during the year ended December 31, 2015 was $1.1 million . The intrinsic value of stock options exercised represents
the difference between the market value of Company’s common stock at the time of exercise and the exercise price, multiplied by the number of stock options
exercised. There were no stock option exercises during the years ended December 31, 2013 and 2014. As of December 31, 2015 , there was $0.4 million of total
unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 1.6 years .
The following table summarizes the status of the Company’s stock options as of December 31, 2015 :
Stock Options Outstanding
Stock Options Exercisable
Weighted
Average
Weighted
Weighted
Remaining
Average
Average
Range of
Number
Contractual
Exercise
Number
Exercise
Exercise Prices
Outstanding
Life
Price
Exercisable
Price
(in thousands)
(in thousands)
$ 4.97
to
$ 4.97
300
8.0
$ 4.97
75
$ 4.97
6.08
to
6.08
255
7.1
6.08
—
—
6.90
to
7.51
221
5.3
7.45
107
7.38
7.64
to
11.82
132
0.6
9.36
132
9.36
4.97
to
11.82
908
6.1
6.52
314
7.64
There were no stock options granted during the year ended December 31, 2015 . The fair value of stock options granted during the years ended December 31, 2013
and 2014 was estimated using the Black-Scholes option-pricing model with the following assumptions:
Year Ended December 31,
2013
2014
Dividend yield 3.29%
4.02%
Expected volatility 31.20%
46.77%
Risk-free interest rate 0.88%
1.60%
Expected life 5 years
5 years
82