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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2006, 2005, AND 2004
2006, the aggregate intrinsic value for options outstanding and options exercisable was $22.7 million and $16.2
million, respectively. During the year ended December 31, 2006, the total intrinsic value of stock options
exercised was approximately $3.4 million.
The following table summarizes information about common stock options outstanding at December 31,
2006:
Options Outstanding Options Exercisable
Exercise price
Number of options
outstanding at
December 31, 2006
Weighted average
remaining
contractual life
Weighted average
exercise price
Number of options
exercisable at
December 31, 2006
Weighted average
exercise price
$ 7.38 – $18.45 511,248 5.48 $16.10 393,689 $15.50
18.46 – 21.24 638,524 5.68 20.07 532,997 20.19
21.25 – 23.30 549,314 4.86 22.95 399,542 22.98
23.31 – 24.90 670,809 5.73 24.43 233,597 24.40
24.91 – 32.64 144,540 5.28 28.23 92,643 28.88
2,514,435 5.45 21.52 1,652,468 20.87
Restricted stock awards: Restricted stock awards are granted to certain officers and non-employee
directors under the 1997 Plan, which vest annually over four years and one year, respectively. During 2006 and
2005, we granted 7,500 and 85,050, respectively, restricted stock awards with a weighted average fair value of
$22.77 and $24.49, respectively, per share, the respective market price of the stock at grant date. The restricted
share units require no payment from the grantee and compensation cost is recorded based on the market price on
the grant date and is recorded equally over the vesting period. Compensation expense related to restricted stock
awards totaled approximately $587,000 and $296,000 for the years ended December 31, 2006 and 2005,
respectively. The related deferred tax benefit for restricted stock awards expense was approximately $227,000
and $117,000 for the years ended December 31, 2006 and 2005, respectively.
As of December 31, 2006, total unrecognized stock-based compensation expense related to unvested
restricted stock awards was approximately $1.2 million. This expense is expected to be recognized over a
weighted average period of approximately 30 months. During the year ended December 31, 2006, the total fair
value of restricted stock awards vested was approximately $506,000.
The following table presents a summary of restricted stock award activity for the years ended December 31:
2006 2005
Shares
Weighted average
grant date fair value Shares
Weighted average
grant date fair value
Non-vested, December 31, 2005 ................. 82,750 $24.90 — $ —
Granted ................................. 7,500 22.77 85,050 24.49
Vested .................................. (20,688) 24.48 — —
Forfeited ................................ — — (2,300) 24.49
Non-vested, December 31, 2006 ................. 69,562 24.30 82,750 24.49
Stock purchase plan: In March 1997, we adopted the Employee Stock Purchase Plan (the “ESPP”) under
Section 423(b) of the Internal Revenue Code. Under the ESPP, the board of directors may authorize participation
by eligible employees, including officers, in periodic offerings. The total number of shares reserved for issuance
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