Shutterfly 2013 Annual Report Download - page 98

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The chart below summarizes grant activity during the twelve months ended December 31, 2013 by
equity plan (share numbers in thousands):
Grants in 2013
2006 Equity Incentive Plan
Restricted stock units(1) .............................................. 1,333
Performance-based restricted stock units(2) ................................ 355
Total grants under 2006 Plan ............................................ 1,688
Inducement Plans
Restricted stock units(3) .............................................. 308
Performance-based restricted stock units .................................. —
Total grants under Inducement Plans ...................................... 308
Total awards granted in 2013 ............................................ 1,996
(1) Awards issued under the 2006 Plan include restricted stock unit awards granted to new and
current employees. Awards issued under this plan typically vest over a three or four year total
vesting term.
(2) Includes 355,000 performance-based restricted stock units (PBRSUs) issued under the 2006
Equity Incentive Plan which are tied to the Company’s 2013 financial performance and which have
three year service criteria. Compensation cost associated with these PBRSUs is recognized on an
accelerated attribution model and ultimately based on whether or not satisfaction of the
performance criteria is probable. As of December 31, 2013, the performance criteria for the fiscal
year was met and the associated stock-based compensation has been recognized.
(3) Inducement awards are issued to newly hired officers and to certain new employees from acquired
companies. These awards typically vest annually over a two to three year period based on
continued employment. The above includes 308,000 RSUs granted to certain employees of
R&R Images and BorrowLenses.
During the years ended December 31, 2013 and 2012, the fair value of awards vested were
$35.9 million and $20.5 million, respectively.
At December 31, 2013, the Company had $96.1 million of total unrecognized stock-based
compensation expense, net of estimated forfeitures, related to stock options and RSUs that will be
recognized over a weighted-average period of approximately two years.
Note 7 — Income Taxes
Income before provision for income taxes is as follows (in thousands):
Year Ended December 31,
2013 2012 2011
United States .................................... $ 12,570 $ 40,024 $ 15,362
Foreign ........................................ 350 134 —
Total .......................................... $ 12,920 $ 40,158 $ 15,362
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