Shutterfly 2010 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2010 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

SHUTTERFLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Stock Option Activity
A summary of the status of the Company’
s stock option plans at December 31, 2009 and changes during the period are presented in the table
below (share numbers and aggregate intrinsic value in thousands):
As of December 31, 2008 and 2007, there were 3,237,000 and 1,917,000 options vested, respectively.
During the year ended December 31, 2009, the Company granted stock options to purchase an aggregate of 159,000 shares of common stock
with a weighted average grant-
date fair value of $6.61 per share. In fiscal years ended December 2008 and 2007, the Company granted stock
options to purchase an aggregate of 642,000 and 2,217,000 shares of common stock, respectively, with a weighted average grant-
date value of
$5.99 and $9.33 per share, respectively.
The total intrinsic value of options exercised during the twelve months ended December 31, 2009, 2008 and 2007 was $3,963,000,
$3,662,000 and $18,136,000, respectively. Net cash proceeds from the exercise of stock options were $2,740,000 for the twelve months ended
December 31, 2009.
The Company has $10.3 million of state net operating losses, associated with windfall tax benefit that will be recorded in additional paid in
capital when realized. In 2009, the Company recognized all of its federal net operating losses associated with windfall tax benefits from the
exercise of options.
Shares
Available
for Grant
Number of
Options
Outstanding
Weighted
Average
Exercise
Price
Weighted
Average
Contractual
Term
(Years)
Aggregate
Intrinsic
Value
Balances, December 31, 2008
1,223
5,529
$
13.41
Additional authorized
1,161
—
—
Granted
(159
)
159
13.80
Exercised
—
(
450
)
6.10
Forfeited, cancelled or expired
549
(549
)
15.51
Balances, December 31, 2009
2,774
4,689
$
13.88
6.6
$26,490
Options vested and expected to vest at December 31, 2009
4,413
$
13.57
6.5
$25,801
Options vested at December 31, 2009
3,572
$
12.42
6.1
$23,662
75