GNC 2011 Annual Report Download - page 109

Table of Contents
NOTE 17. STOCKHOLDER'S EQUITY (Continued)
The accumulated balances of other comprehensive income and their related tax effects included as part of the consolidated financial statements are as
follows:
Before tax amount Tax Benefit
(Expense) Net Other Comprehensive Income (Loss)
Foreign
currency
translation
Unrealized
Gain/(Loss)
on Derivatives
Unrealized
Gain/(Loss)
on Derivatives
Foreign
currency
translation
Unrealized
Gain/(Loss)
on Derivatives Total
($ in thousands)
Balance at
December 31,
2008 $ (2,035) $ (18,902) $ 6,880 $ (2,035) $ (12,022)$(14,057)
Foreign
currency
translation
adjustment 4,172 — — 4,172 — 4,172
Unrealized gain
on
derivatives
designated as
cash flow
hedge, net of
tax — 4,223 (1,537) — 2,686 2,686
Balance at
December 31,
2009 2,137 (14,679) 5,343 2,137 (9,336) (7,199)
Foreign
currency
translation
adjustment 1,334 — — 1,334 — 1,334
Unrealized gain
on
derivatives
designated as
cash flow
hedge, net of
tax — 7,210 (2,625) — 4,585 4,585
Balance at
December 31,
2010 $ 3,471 $ (7,469) $ 2,718 $ 3,471 $ (4,751)$ (1,280)
NOTE 18. STOCK-BASED COMPENSATION PLANS
Stock Options
The Company utilizes the Black Scholes model to calculate the fair value of options. The resulting compensation cost is recognized in the Company's
financial statements over the option vesting period. At December 31, 2010, the net unrecognized compensation cost was $6.1 million and is expected to be
recognized over a weighted average period of approximately 1.4 years.
In 2007, the board of directors of Parent (the "Parent Board") and Parent's stockholders approved and adopted the GNC Acquisition Holdings Inc. 2007
Stock Incentive Plan (the "2007 Stock Plan"). The purpose of the 2007 Stock Plan is to enable the Company to attract and retain highly qualified personnel
who will contribute to the success of the Company. The 2007 Stock Plan provides for the granting of stock options, restricted stock and other stock based
awards. The 2007 Stock Plan is available to certain eligible employees, directors, consultants or advisors as determined by the administering committee of the
Parent Board. The total number of shares of Parent's Class A common stock reserved and available for the 2007 Stock Plan is 10.4 million shares. Stock
options under the 2007 Stock Plan generally are granted with exercise prices at or above fair market value, typically vest over a four or five-year period and
expire ten years from the date of grant. No stock appreciation rights, restricted stock, deferred stock or performance shares have been granted under the 2007
Stock Plan.
103