Shutterfly 2009 Annual Report Download - page 99

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SHUTTERFLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Inducement Awards
Included in the stock option and restricted stock unit activity above, the Company granted inducement stock option awards and restricted stock
units to two executives. These inducement grants were approved by the Company’
s Board of Directors and were not issued under a shareholder
approved plan. A total of 129,000 options to purchase common stock and 7,000 restricted stock units were granted under this nonqualified
agreement. These grants have a 10 year term, and vest over a four year period from the initial date of hire of the respective executives, in a
manner consistent with awards granted under the 2006 Plan.
Also included in the stock option activity are 50,000 previously issued inducement stock option awards which have been forfeited pursuant to
the termination of an executive.
Note 9 — Income Taxes
The components of the provision for income taxes is as follows (in thousands):
December 31,
2008
2007
2006
Federal:
Current
$
727
$
206
$
610
Deferred
1,108
5,146
2,809
$
1,835
$
5,352
$
3,419
State:
Current
$
1,156
$
216
$
133
Deferred
(1,199)
734
390
$
(43)
$
950
$
523
Total income tax expense (benefit):
Current
$
1,883
$
422
$
743
Deferred
(91)
5,880
3,199
$
1,792
$
6,302
$
3,942
97