Redbox 2008 Annual Report Download - page 73

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The following table presents a summary of the stock option activity for the years ended December 31:
Shares
(In thousands)
Weighted
average
exercise price
Shares
(In thousands)
Weighted
average
exercise price
Shares
(In thousands)
Weighted
average
exercise price
2008 2007 2006
OUTSTANDING,
Beginning of year. . 2,668 $23.07 2,514 $21.52 2,657 $20.81
Granted ......... 529 32.23 503 30.09 232 24.83
Exercised ........ (443) 20.19 (224) 19.88 (311) 17.78
Cancelled, expired
or forfeited . . . . . (65) 27.47 (125) 26.05 (64) 22.04
OUTSTANDING,
End of year . . . . 2,689 25.24 2,668 23.07 2,514 21.52
EXERCISABLE, End
of year .......... 1,722 22.47 1,825 21.29 1,652 20.87
As of December 31, 2008, total unrecognized stock-based compensation expense related to unvested stock
options was approximately $6.4 million. This expense is expected to be recognized over a weighted average period
of approximately 1.8 years. As of December 31, 2008, the weighted average remaining contractual term for options
outstanding and options exercisable was 3.6 years and 3.7 years, respectively. As of December 31, 2008, the
aggregate intrinsic value for options outstanding and options exercisable was $0.9 million and $0.9 million,
respectively. During the year ended December 31, 2008, the total intrinsic value of stock options exercised was
approximately $5.9 million.
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. 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 $1.5 million, $1.3 million and $0.6 million for the years ended December 31, 2008, 2007 and 2006,
respectively. The related deferred tax benefit for restricted stock awards expense was approximately $0.9 million,
$0.5 million and $0.2 million for the years ended December 31, 2008, 2007 and 2006, respectively.
As of December 31, 2008, total unrecognized stock-based compensation expense related to unvested restricted
stock awards was approximately $2.6 million. This expense is expected to be recognized over a weighted average
period of approximately 1.5 years. During the year ended December 31, 2008, the total fair value of restricted stock
awards vested was approximately $1.6 million.
The following table presents a summary of restricted stock award activity for the years ended December 31:
Shares
(In thousands)
Weighted
average
grant date
fair value
Shares
(In thousands)
Weighted
average
grant date
fair value
Shares
(In thousands)
Weighted
average
grant date
fair value
2008 2007 2006
NON-VESTED,
Beginning of year ..... 105 $28.25 70 $24.30 83 $24.49
Granted ............. 91 33.67 69 30.48 8 22.77
Vested .............. (55) 28.85 (28) 24.03 (21) 24.49
Forfeited ............ (6) 32.96 (6) 27.52 — —
NON-VESTED,
End of year .......... 135 30.36 105 28.25 70 24.30
During April 2006, Redbox established the Redbox Employee Equity Incentive Plan (REEIP), which provides
for the issuance of redeemable Class B interests to employees. Redeemable Class B interests granted under the plan
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