Stamps.com 2011 Annual Report Download - page 75

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STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes the status of our non-vested stock options as of December 31, 2011:
As of December 31, 2011, there was $8.1 million of total unrecognized compensation cost related to non-vested share-
based compensation
arrangements, which is expected to be recognized over a weighted-average period of 2.6 years.
Employee Stock Purchase Plan
In June 1999, our Board of Directors adopted an Employee Stock Purchase Plan (ESPP), which allows our eligible employees to purchase shares
of common stock, at semi-annual intervals, with their accumulated payroll deductions.
Eligible participants may contribute up to 15% of cash earnings through payroll deductions, and the accumulated deductions will be applied to
the purchase of shares on each semi-
annual purchase date. The purchase price per share is equal to 85% of the fair market value per share on the
participant’s entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.
Upon adoption of the plan, 150,000 shares of common stock were reserved for issuance. This reserve automatically increases on the first trading
day in January each year, by an amount equal to 1% of the total number of outstanding shares of our common stock on the last trading day in
December in the prior year. In no event will any annual increase exceed 260,786 shares.
In July 2009, our board of directors amended our ESPP to extend it for a period of ten years beyond its original expiration date of July 31, 2009.
Under this amendment, the total shares available for issuance may not increase. As of December 31, 2011, we had approximately 1.8 million
shares available for issuance under our ESPP. Total shares of common stock issued pursuant to the ESPP during 2011, 2010 and 2009 were
approximately 56,000, 48,000 and 43,000, respectively.
Savings Plan
During 1999, we implemented a savings plan for all eligible employees, which qualifies under Section 401(k) of the Internal Revenue Code.
Participating employees may contribute up to 20% of their pretax salary, but not more than statutory limits. We match 50% of the first 4% a
participant contributes. We expensed approximately $276,000, $228,000 and $233,000 in 2011, 2010 and 2009, respectively, related to this plan.
Table of Contents
Non-vested
Number of
Stock Options
(in thousands)
Weighted
Average
Grant Date
Fair Value
Nonvested at December 31, 2010
513
$
4.57
Granted
1,718
5.05
Vested
(591
)
4.78
Forfeited / Cancelled
(90
)
4.82
Nonvested at December 31, 2011
1,550
$
5.07
F
-
25