Shutterfly 2014 Annual Report Download - page 103

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criteria for the fiscal year was met and the associated stock-based compensation has been
recognized.
(3) Also includes the PBRSUs issued to the Chief Executive Officer which are tied to multi-year
performance metrics and the Company’s stock performance relative to market measures. These
PBRSUs also have a three year service criteria. The Company valued the market criteria using a
Monte Carlo valuation model and took into consideration the likelihood of the market criteria
being achieved. Compensation cost associated with these PBRSUs is recognized on an accelerated
attribution model and ultimately based on whether or not satisfaction of the performance and
market criteria is probable. As of December 31, 2014, the performance criteria and market criteria
appear to be attainable and the Company recognized the associated stock-based compensation.
(4) Inducement awards are issued to newly hired officers and to certain new employees from acquired
companies. During 2014, inducement awards included time-based and performance based awards
issued to two newly hired officers and vest over four years.
During the years ended December 31, 2014 and 2013, the fair value of awards vested were
$56.8 million and $35.9 million, respectively.
At December 31, 2014, the Company had $97.9 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 9 — Income Taxes
Income before benefit from/(provision for) income taxes is as follows (in thousands):
Year Ended December 31,
2014 2013 2012
United States .................................... $ (10,317) $ 12,570 $ 40,024
Foreign ........................................ 338 350 134
Total .......................................... $ (9,979) $ 12,920 $ 40,158
102