Redbox 2011 Annual Report Download - page 77

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Certain information regarding our share-based payments is as follows:
Dollars in thousands except per share data Year Ended December 31,
2011 2010 2009
Share-based payments expense:
Share-based compensation—stock options ............................ $ 2,880 $ 3,137 $3,295
Share-based compensation—restricted stock ........................... 7,100 5,608 3,763
Share-based payments for content arrangements ........................ 6,231 7,271 1,410
Total share-based payments expense ............................. $16,211 $16,016 $8,468
Tax benefit on share-based compensation expense .......................... $ 3,514 $ 2,982 $2,338
Per share weighted average grant date fair value of stock options granted ........ $ 20.67 $ 15.38 $ 9.49
Per share weighted average grant date fair value of restricted stock granted ...... $ 45.86 $ 33.34 $29.12
Total intrinsic value of stock options exercised ............................. $ 2,291 $27,622 $8,400
Grant date fair value of restricted stock vested ............................. $ 5,132 $12,456 $2,600
Dollars in thousand December 31, 2011
Unrecognized Share-Based
Payments Expense
Weighted-Average
Remaining Life
Unrecognized share-based payments expense:
Share-based compensation—stock options ................. $ 3,725 1.5 years
Share-based compensation—restricted stock ................ 13,309 1.9 years
Share-based payments for content arrangements ............. 7,572 2.8 years
Total unrecognized share-based payments expense ....... $24,606
Share-Based Compensation
Stock options
Shares of common stock are issued upon exercise of stock options. Certain other information regarding our
stock-based awards is as follows:
• Beginning in February 2010, stock options are granted only to our executives and non-employee
directors.
• Options granted after February 2010 vest annually in equal installments over 4 years, and expire after
10 years.
• Prior to February 2010, options granted to our executives and employees vest annually in equal
installments over 4 years and expire after either 5 or 10 years, depending on the grant date; options
granted to our non-employee directors vest in equal monthly installments and expire after 5 years.
The following table summarizes the weighted average valuation assumptions used in the Black-Scholes-Merton
Valuation model for stock options granted:
Year Ended December 31,
2011 2010 2009
Expected term (in years) .......................................... 7.3 7.3 3.7
Expected stock price volatility ..................................... 43% 43% 40%
Risk-free interest rate ............................................ 2.8% 2.4% 1.6%
Expected dividend-yield .......................................... 0.0% 0.0% 0.0%
• The expected term of the options represents the estimated period of time from grant until exercise and
is based on historical experience of similar awards, giving consideration to the contractual terms,
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