Tesla 2012 Annual Report Download - page 132

Table of Contents
Included in our June 2010 and September 2010 stock option grants were 666,300 and 20,000, respectively, of stock options granted to
various members of our senior management with a vesting schedule based entirely on the attainment of the same performance objectives as those
outlined for Mr. Musk above. Through December 31, 2011, the first two performance milestones were achieved and the remaining performance
milestones were considered probable of achievement. For the years ended December 31, 2011 and 2010, we recognized $4.9 million and $8.9
million, respectively, of stock-based compensation expense related to the attainment of performance objectives.
The following table summarizes the consolidated stock-based compensation expense by line item in the consolidated statements of
operations (in thousands):
We realized no income tax benefit from stock option exercises in each of the periods presented due to recurring losses and valuation
allowances. As required, we present excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating
cash flows.
As of December 31, 2011, we had $55.2 million of total unrecognized compensation expense, net of estimated forfeitures, that will be
recognized over a weighted-average period of 2.38 years.
Employee Stock Purchase Plan
Concurrent with the effectiveness of our registration statement on Form S-1 on June 28, 2010 (see Note 10), we established the ESPP.
Under the ESPP, employees are eligible to purchase common stock through payroll deductions of up to 15% of their eligible compensation,
subject to any plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of
our common stock on the first and last trading days of each six-month offering period. During the year ended December 31, 2011, 223,458
shares were issued under the ESPP for $3.9 million. A total of 2,615,749 shares of common stock have been reserved for issuance under the
ESPP, and there were 2,392,291 shares available for issuance under the ESPP as of December 31, 2011.
12. Income Taxes
No provision for U.S. income taxes has been made due to cumulative losses since the commencement of operations.
A provision for income taxes of $0.5 million, $0.2 million and $26,000 has been recognized for the years ended December 31, 2011, 2010
and 2009, respectively, related primarily to our subsidiaries located outside of the United States. Our net loss before provision for income taxes
for the years ended December 31, 2011, 2010 and 2009 were as follows (in thousands):
131
Year Ended December 31,
2011 2010 2009
Cost of sales
$
670
$
243
$
61
Research and development
13,377
4,139
376
Selling, general and administrative
15,372
16,774
997
Total
$
29,419
$
21,156
$
1,434
Year Ended December 31,
2011
2010
2009
Domestic
$
254,761
$
154,734
$
56,983
International
(839
)
(579
)
(1,269
)
Loss before income taxes
$
253,922
$
154,155
$
55,714