Redbox 2007 Annual Report Download - page 61

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The following table summarizes information about common stock options outstanding as of December 31,
2007:
Exercise price
Number
of options
outstanding
Weighted
average
remaining
contractual life
Weighted
average
exercise price
Number
of options
exercisable
Weighted
average
exercise price
Options Outstanding Options Exercisable
$ 7.38 - $18.59 .......... 540,190 4.85 $16.78 517,905 $16.72
18.60 - 22.60 .......... 582,478 4.43 20.85 549,334 20.94
22.61 - 23.90 .......... 593,797 3.44 23.38 417,644 23.37
23.91 - 30.00 .......... 529,546 5.36 25.74 323,472 26.00
30.01 - 34.45 .......... 422,501 4.14 30.37 16,931 31.70
2,668,512 4.44 23.07 1,825,286 21.29
Restricted stock awards: Restricted stock awards are granted to certain officers and non-employee directors
under the 1997 Plan, which vests annually over four years and one year, respectively. During 2007, 2006 and 2005,
we granted 69,171, 7,500 and 85,050, respectively, restricted stock awards with a weighted average fair value of
$30.48, $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 $1,269,000, $587,000 and $296,000 for the years ended December 31, 2007,
2006 and 2005, respectively. The related deferred tax benefit for restricted stock awards expense was approximately
$491,000, $227,000 and $117,000 for the years ended December 31, 2007, 2006 and 2005, respectively.
As of December 31, 2007, total unrecognized stock-based compensation expense related to unvested restricted
stock awards was approximately $1.8 million. This expense is expected to be recognized over a weighted average
period of approximately 21 months. During the year ended December 31, 2007, the total fair value of restricted
stock awards vested was approximately $667,000.
The following table presents a summary of restricted stock award activity for the years ended December 31:
Shares
Weighted
average
grant date
fair value Shares
Weighted
average
grant date
fair value Shares
Weighted
average
grant date
fair value
2007 2006 2005
NON-VESTED,
Beginning of year ......... 69,562 $24.30 82,750 $24.49 — $ —
Granted ................ 69,171 30.48 7,500 22.77 85,050 24.49
Vested ................. (27,763) 24.03 (20,688) 24.49 — —
Forfeited................ (5,425) 27.52 — — (2,300) 24.49
NON-VESTED, End of year . . . 105,545 28.25 69,562 24.30 82,750 24.49
NOTE 11: INCOME TAXES
The components of (loss) income before income taxes were as follows:
2007 2006 2005
December 31,
(In thousands)
United States operations ................................ $(17,945) $36,175 $36,903
Foreign operations .................................... (10,619) (5,475) (404)
Total (loss) income before taxes ........................ $(28,564) $30,700 $36,499
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